Modern Engineering, Manual Estimation
Digital engineering is reshaping how aerospace and defense (A&D) programs design, develop, and deliver complex systems. With advancements in model-based systems engineering (MBSE), 3D CAD, digital twins, and connected PL environments, engineering teams now operate with greater speed, fidelity, and collaboration than ever before.
But amid this progress, cost estimation is often left behind.
While technical workflows go digital, the cost estimation that ensures that all of that innovation remains affordable and executable often remains manual. Many teams still rely on disconnected spreadsheets, tribal knowledge, and point-in-time inputs. The result? A costly disconnect between design agility and cost awareness that undermines decision confidence.
The Digital Disconnect
A&D leaders frequently talk about building a “digital thread”, a seamless flow of information across the system lifecycle that connects design, requirements, testing, manufacturing, and sustainment. The idea is that everyone, from engineers to executives, works from the same authoritative source of truth.
Yet in many programs, cost is not part of that thread:
- Estimators work offline.
- Cost models are manually populated and not connected to MBSE tools.
- Design changes don’t automatically trigger cost updates.
- Time-sensitive decisions, like architecture selection or budget allocation, are made with incomplete or outdated data.
When cost estimating is left out of the digital thread, teams face serious limitations:
- Loss of real-time cost insight.
- No unified view linking technical performance to affordability.
- Inability to conduct early cost-informed trades, when flexibility is greatest.
In short, digital engineering without digital estimating is like flying a next-gen aircraft with an analog altimeter. You’re moving fast, but barreling forward without full visibility.
Why 5D Matters
In construction, “5D” refers to the practice of integrating cost (the fifth dimension) with 3D models and 4D scheduling. It’s a cornerstone of Building Information Modeling (BIM) and a lesson the A&D community should adopt.
Treating cost as an afterthought turns it into a lagging indicator, revealing problems only after design commitments are made. But cost should be a dimension of design, just like performance or weight.
With digital estimating, organizations can:
- Get real-time cost feedback as designs evolve.
- Run design trades and AoAs without rebuilding cost models from scratch.
- Link MBSE tools and cost models via APIs.
- Establish a shared, authoritative source of truth across engineering, cost, and program teams.
Digital estimating elevates cost from a validation step to a core decision input.
What Happens When Estimating Is Left Behind?
Programs that modernize design without cost integration face real risks:
- Delayed insight: When estimates lag behind design, unaffordable choices get locked in.
- Missed savings: When engineers lack timely feedback, cost-saving alternatives are missed.
- Fragmented data: Disconnected tools create duplicated effort, errors, and version control issues.
- Lost trust: Outdated or unclear estimates erode confidence across stakeholders.
As one analyst put it, “Digital transformation without cost is just digital risk.”
What Digital Estimating Looks Like
To fully realize digital transformation, cost estimating must evolve. That means shifting from static spreadsheets to structured, model-based, and integrated workflows that keep pace with modern engineering.
Here’s what digital estimating entails:
Centralized Cost Data Repositories
Replace scattered files with structured, queryable historical data to support reuse and benchmarking.
Integration with Engineering Tools
APIs and system connectors allow cost models to ingest real-time design data from MBSE and PLM systems, ensuring estimates stay current as designs evolve.
Reusable Parametric Models
Solutions like TruePlanning® offer configurable templates for design-to-cost, lifecycle cost modeling, and other use cases. Reuse increases speed and consistency.
Embedded Cost Engineers
Cost analysts should work alongside systems engineers, using shared tools and data. This improves communication and ensures real-time alignment on trade-offs.
Cost as a Strategic Asset
Organizations must begin treating cost data as a first-class asset in the digital thread. Just like system requirements, cost inputs and logic should be documented, reviewed, and version-controlled. This builds confidence and enables traceable, auditable, cost-informed decisions.
The Business Case for Digital Estimating
Digital estimating goes beyond speed and efficiency. It also enables informed, strategic decisions across teams:
- Capture and bid teams respond faster with greater credibility.
- Program offices proactively manage affordability.
- Engineers optimize for performance and cost.
- Finance gains real-time cost projections.
- Acquisition leaders gain transparency and oversight.
Together, these improvements create a competitive advantage that helps teams move at the speed of design, without sacrificing cost discipline.
Digital Isn't Complete Without Cost
Digital engineering has made system design more agile and collaborative. But without cost estimation integrated into the process, affordability becomes a guess. And programs risk building designs they can’t afford to deliver.
