NORTHROP GRUMMAN EARNS COST ESTIMATING AND RISK ANALYSIS RESEARCH BEST PAPER AWARD
Contact: Christy Whitman
(571) 213-5302
christine.whitman@ngc.com
Contact: Juli Ballesteros, APR
(703) 556-2736
juli.ballesteros@ngc.com
MCLEAN, Va., Feb. 5, 2007 (PRIME NEWSWIRE) -- A team from Northrop Grumman Corporation (NYSE:NOC) has received a best paper award from the Society of Cost Estimating and Analysis for research in the field of risk management.
Individuals from Northrop Grumman's Information Technology (IT) sector authored the paper titled, "Making Risk Management Tools More Credible: Calibrating the Risk Cube." The paper recommends metrics and cutoff scores for quantifying and tracking the cost impacts of program risks. The metrics and scores are intended to be incorporated into the most common method of risk management, the likelihood and consequence, or Risk Cube method.
The Risk Cube method is used to assess, track and mitigate program risks. It is applicable to programs within the defense, intelligence and IT industries, among others.
A challenging aspect of the Risk Cube method is quantification of cost and schedule risks. Northrop Grumman's paper provides a rigorous methodology for estimating these values, allowing for more accuracy in future assessments. This will, in turn, enable more effective planning and management of cost and schedule risk.
The team examined historical data from U.S. Department of Defense-selected acquisition reports and developed algorithms for deriving risk scoring tables that accurately portray the potential for cost variances from the inception of a program. The tables reflect realistic cost and schedule impacts based on those experienced by similar programs.
Users are expected to be Department of Defense acquisition program risk managers and agencies that oversee risk management.
The Northrop Grumman cost estimating and risk analysis team provides cost and risk analysis to the intelligence community and Department of Defense. Their expertise helps customers effectively project funding needs, maintain adequate funds control, reduce costs and measure performance. With complete and accurate lifecycle cost information, decision makers can make fully informed decisions for cost estimating and risk analysis solutions.
Northrop Grumman Corporation is a $30 billion global defense and technology company whose 120,000 employees provide innovative systems, products, and solutions in information and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide.
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