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Cost Benefits Analysis and Maintenance Budget

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A Facilities Superintendent in the Airport Terminal Building Maintenance Division is responsible for supervising personnel of multiple trades within the terminal building. The Superintendent was requested to determine the feasibility of performing a specific job within his area. There are several options that one can use to perform this task. To determine what option is the best course of action to take, he will be required to perform a Cost Analysis to determine the best method to use.

Can you please state specifically the six (6) steps in preparing a Cost Benefit Analysis?

I'm so confused between the Cost Benefit Analysis and the steps to prepping a maintenance budget (for example - relamping a terminal)

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Solution Summary

This solution of 453 words provides a review into creating a CBA analysis for a project, and differentiates a CBA analysis with a maintenance budget.

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Keep the consensus simple in performing a CBA, such as the following main steps in execution:

a) The unit cost of every item associated with the particular project must be "define" by costs and benefit (Try creating a spreadsheet with columns that provides separation of these details for visualization on overall analysis). Keep in mind this step is to determine unit costs of items in terms of money - or - measure costs in terms of time, usage, and energy, etc. to precede forward for the project. For instance, the creation in data sheet for detailed evaluation of the CBA.

b) Next you should focus on listing every one of the "tangible costs" for every item, as in, ...

Solution provided by:
Nichel Anderson, MBA, PhD (IP)
Education
  • BA, American Intercontinental University
  • MBA, American Intercontinental University
  • PhD (IP), Grand Canyon University
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