PREPARING THE FEASIBILITY STUDY 2 Essay Example | Topics and Well Written Essays - 500 words

PREPARING THE FEASIBILITY STUDY 2 - Essay Example This aids in determining whether or not the project is valuable to the organization. Furthermore, CBA is useful to the organization as it gives them a clear picture of the CBR (cost, benefit and risks) which can also be used in comparing alternate investments that can be rolled out by the organization (FreeTutes 1). CBA determines the benefits as well as the savings anticipated from the system and compares it with estimated project cost. There are several examples of cost lifecycle including; personnel, supplies, equipment, overheads and consultants’ fees (Plowman 1). Costs can also be broadly divided into two broad categories which are development and operating costs. Development costs includes wages and equipment, while operating cost includes supplies and overhead costs. Maintenance also is cost intensive, and should be checked on in the future to avoid any losses from the project. It should be noted that maintenance fees are required to ensure that the machines are up and running at all times (FreeTutes 1). CBA has a three parts associated with it. First, the potential costs to be incurred, secondly, anticipated benefits associated with the proposed actions and finally, the difference to determine if the project is feasible (+results) or non-feasible (-results) (Plowman 1). The procedure to be followed when doing a CBA includes evaluation of the projects’ benefits and cost. To effectively achieve a perfect CBA, the team leader of the project must take into consideration the steps one has to follow. Includes brainstorming the costs and benefits of doing the project. The list of all the costs and benefits should be made available while undertaking the study. They should also think of unexpected cost during the process. The next step involves assigning the monetary value to the cost and these includes the resources required, that of human effort used. This is relatively easy to come up with the estimates. Step three is assigning