Improving the cost estimation process at VDL Energy Systems

This research is conducted to improve the cost estimation process at VDL Energy Systems. VDL Energy Systems mainly design, assembles, and tests gas turbines and compressors. The company produces customer specific products. For new projects, costs are estimated in advance and based on experience. The historical cost data of similar projects is not used in cost estimating. An analysis on historical cost data is done to map the current performance of the cost estimations. Then multiple linear regression analyses are performed to find out if cost estimations can be improved using historical cost data.