Answer
The conference method estimates cost functions by gathering opinions and insights from different departments within a company, such as purchasing, engineering, and manufacturing. It's a collaborative approach that taps into the knowledge of experts from various areas. Two advantages of this method are:
1. Speed: Cost estimates can be developed quickly using this approach, which is valuable for timely decision-making.
2. Expertise Pooling: It combines the expertise of professionals from different functional areas, resulting in a more comprehensive and accurate cost function.
This method enhances the credibility of cost estimates and fosters better understanding among all team members.
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