Raytheon Structured Estimating Process Overview

This document is a technical report detailing Raytheon Communication Systems' implementation of a structured estimating process to enhance software cost accuracy. The report outlines the challenges faced in estimating large software projects, including the limitations of traditional bottom-up methods and the common use of spreadsheets, which are prone to errors and do not account for uncertainties. To address these issues, Raytheon adopted the SEER-SEM™ tool from Galorath Incorporated, which utilizes various input parameters for generating accurate estimates and allows for historical data calibration. The report explains the estimating process, beginning with engineering teams developing solution sets, followed by estimating teams organizing costs effectively. It highlights the accuracy achieved through comprehensive calibration efforts, maintaining a variance of plus or minus 10%. The structured estimating methodology not only supports negotiations but also aids in project performance evaluation, thereby increasing customer confidence. Overall, the shift to structured estimating has improved the accuracy and consistency of software cost estimates.