China
Africa
Explore chapters and articles related to this topic
Building a Case for Change
Published in James William Martin, Lean Six Sigma for the Office, 2021
Nothing promotes project implementation more than a highly favorable cost benefit analysis. A cost benefit analysis is a financial analysis that calculates the net benefits of solutions after implementation costs are subtracted from them. Figure 7.1 shows that a cost benefit analysis begins upfront when the team creates its project charter. The benefits should be integrated into the annual operating plan for higher productivity. To do this, project charters are created top down to ensure benefit and resource alignment. Using the operating model shown in Figure 1.1, the project is classified based on its expected root causes and general solutions. Some will be Lean focused, others Six Sigma focused, and still others are analytical or require an APM approach.
Economic analysis of projects
Published in J.C. Edison, Infrastructure Development and Construction Management, 2020
The proposed project is economically feasible if the benefits of the project exceed its costs. This will be indicated by an NPV greater than zero (NPV > 0). One cannot rank a number of alternative investment projects by calculating the NPV of a proposed project because the NPV of a project is predominantly positively linked to the project’s investment cost or scale. The benefit–cost ratio is usefulin such a situation since it can evaluate the project in terms of benefits per one monetary unit of cost. A project is worth investing in only if it meets the criterion where the B/C ratio is greater than 1.Cost benefit analysis is an applied economic technique that attempts to assess a government program or project by determining whether societal welfare has or will increase (in the aggregate more people are better off) because of the program or project. At its greatest degree of usefulness, Cost-Benefit Analysis can provide information on the full costs of a program or project and weigh those costs against the dollar value of the benefits. The analyst can then calculate the net benefits (or costs) of the program or project, examine the ratio of benefits to costs, determine the rate of return on the government’s original investment, and compare the program’s benefits and costs with those of other programs or proposed alternatives.(Kee, 2005)
Role of Mega-Events in urban development
Published in Sheela Evangeline, M.R. Rajkumar, Saritha G. Parambath, Recent Advances in Materials, Mechanics and Management, 2019
Despite the obvious attractions of using mega-events as a strategy for urban renewal and regeneration, there are also a number of substantial problems and risks. There are problems in establishing a realistic budget many years in advance of the event. Public expenditure is used to subsidies private accumulation (eg. public spending diverted to pay for event, increased local taxes). There is also a difficulty to establish robust cost-benefit analysis: bias in evaluations, attribution problems, counterfactual problems, different perspectives. Economic impacts can be transitory. By capitalizing on opportunity costs, other forms of investment can be postponed or eliminated. While it is being held, the event can create a ‘crowding out’ effect (tourists discouraged from visiting). New development promotes gentrification (exclusion of working class in favor of middle class).
Economic analysis of public investment in alternative agricultural water management schemes: a case study from northern Ghana
Published in Water International, 2023
Bedru B. Balana, Mamudu A. Akudugu
Cost–benefit analysis was used to appraise the economic viability of investment at the community level or irrigation scheme level where the discounted flow of costs was compared with the discounted income streams over time from the large electricity-powered scheme for all irrigators (Boeke et al., 2021). Cost–benefit analysis is an analytical approach often used to guide economic agents in resource allocation or investment decisions or policy alternatives. The basic rationale for cost–benefit analysis is rooted in the ‘principle of potential compensation’ (Hicks, 1939; Kaldor, 1939). This principle states that an action is more efficient if those that are made better off could potentially compensate those that are made worse off. In situations where the benefits and costs of an action are spread over time, decisions are based on comparing the present value of benefits and costs. Regarding decisions related to investment or interventions on management or utilization choices, the role of cost–benefit analysis is to measure the benefits and costs of the different options, and consequently cost–benefit analysis enables the comparison of the two systems: with the proposed change and that without it (Clark, 1996; Pearce et al., 2006).
Decomposed fuzzy cost-benefit analysis and an application on ophthalmologic robot selection
Published in The Engineering Economist, 2023
One of the most common methods used in investment analysis is cost-benefit analysis (CBA). Cost-benefit analysis is a method that shows the sum of the benefits that businesses will get against the costs of a project, product, or service they invest in, and it is typically used to evaluate an investment decision. Although CBA is generally used for short-term decisions, it can also be used for long-term decisions. The CBA can takes into account the financial parameters of a potential project and also non-financial factors such as employee motivation or customer satisfaction. For example, companies often include numerous factors into the analysis when identifying potential benefits and costs, such as labor costs, social benefits, and other uncertain future factors.