Cost Benefits analysis
One of the key items in any business case is an analysis of the costs of a project that includes some
consideration of both the cost and the payback (be it in monetary or other terms).
1. A basic analysis
1.1 Benefit measures:
For Small projects a cost-benefit analysis can be fairly basic – the table below gives an example of
what might be appropriate.
Benefit of proposed
Return on investment
Financial analysis of the cash flows associated with the new technology, to
show a net gain. Simple payback techniques are OK for Small projects
e.g. lower operating
higher speed or more
Technical capabilities of the proposed new system showing:
expected productivity gains;
reduced waste, e.g. lower reject rates, less reworking;
reduced energy consumption.
Such information might come from: