The Problem With Cost Models
It’s difficult to completely understand and trust a cost model and all of its thousands of inputs.
Cost modeling tools often suffer from the black box syndrome.
There are various reasons, including:
- The tools are complex and error-prone.
- The formulas are complicated and difficult to understand.
- The staff providing the inputs may not completely understand the model.
- The modeler may not completely understand the inputs or their providence.
The Business Consequences
As a result, cost models are often:
- Unreliable
- Unstable
- Misunderstood
Therefore managers may not feel accountable for the outcomes.
RuleFour is an innovative approach to cost modelling software that is accessible, repeatable, transparent and understandable.
Learn more about the RuleFour solution.
