Cost benefits Analysis

Estimate cost and benefits of quality cost reduction projects are essential information for estimating the potential gains and prioritizing different projects in terms of time, money, people and other resources. There is a need to develop a systematic approach to the cost estimating, which will make the estimates more realistic, based on a clear methodology for different departments of one company. The research proposes a methodology that uses simple information, reliable data, with no contradiction with financial statements, easy to be used by different project leaders. The calculation is done in two phases: estimate the potential savings before the project starts and the benefits after the project is closed. The methodology has been implemented in an Excel spread sheet and evaluated through three case studies. Entire article link