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COST BENEFIT AND RISK Oleh : Rizki Rahmayanti (09111840000121) - Coggle…
COST BENEFIT AND RISK
Oleh : Rizki Rahmayanti (09111840000121)
DEFINITION
is a tool to measure Cost Effectiveness of the proposed project over its intended lifespan.
is the technique that is used to create the cost benefit ration of the potetial project
WHY DO COST BENEFIT ANALYSIS
in the concern of helping with the business need, namely making money
the activity will result in the cost benefit ratio that will give sponsors and executives an justification of the project investment cost
ASSUMPTIONS AND CONSTRAINTS
Based on analytical modeling and empirical data predictions
Estimates are collected over the period of a lifespan
Planning phase has an element of unknown
Modified and revised over time
Cost will appreciate over time
System will depreciate over time
STEPS DOING THE ANALYSIS
Identify cost factors and assign monetary value
Brainstorm cost benefits and perfom the risk analysis
Identify the lifespan of the systme solution created bu project
Brainstorm depreciation and appreciation factors
Brainstorm, identify and list the stakeholders
Select appropiate appraisal technique to show the data
Calculate the cost benefit ratio
DEVELOPMENT COST TYPES
Resources
salary costs
orientation and training
recruitment costs
Project Costs
variable (change in time)
direct (budget) and indirect (shared across projects)
fixed
sunk (rework, loss, defect)
Cost of Quality
inspection and prevention
external / internal failure
code and test rework
COST BENEFITS
TANGIBLE BENEFITS
Tangible benefits
Long term and tangible
automation benefits
Immediate and Tangible
Decommission legacy
IN-TANGIBLE BENEFITS
Immediate and In- Tangible
Employee satisfaction
Long term and In- Tangible
Customer service
TYPE OF RISK
PROJECT RISK
Schedue slippage
Cost slippage
In-complete requirements
etc
BUSINESS RISK
knowledge / skill gap
market trends
Loss of prosprective business
etc
ELEMENTS OF PRINCIPLE RISK
IMPACT
SCALE OF IMPACT
DESCRIPTION
PROBABILITY OCCURANE
AVOIDANCE ACTIONS
MITIGATION ACTIONS
OWNER