Cost modelling and cost-benefit analysis help determine and understand the incurred costs and the value derived from a proposed activity, acquisition, or investment. Once conducted, they allow you to investigate different scenarios and determine the most cost-effective way forward.
The services we provide help you understand associated costs, benefits, and risks, which allows you to make business decisions with confidence while fully understanding the implications of each option. We provide these services in support of a range of different types of assets. The objective is to highlight cost drivers and optimize programs to ensure value for their money.
Value is quantified through a systematic approach that captures the benefits of each available option within the context of requirements and priorities while considering current or potential use and replacement.
Using industry best-practice estimating and modelling techniques, we determine the procurement, operating, and support costs over a given life-of-type. Modelling includes an allocation for risk and uncertainty along with simulation and sampling techniques to determine confidence levels.
We conduct analyses to demonstrate the trade-off between expenditure and benefit (both actual and perceived) and calculate the returns on investments and payback periods. Our approach to cost-benefit analysis helps determine the best value alternatives while considering your priorities.
In the procurement of complex systems, we can measure the benefits offered by possible options based on how well they perform particular tasks within specified environments or settings. The need to balance financial benefit against effectiveness is a critical part of any program, whether it’s an upgrade to an existing asset or developing a new capability. We apply a structured COEIA method to assess the costs, benefits, and risks associated with alternative decisions on system expenditure, allowing our customers to identify the most effective solutions at the lowest affordable price.
Using COEIA, we can compare the cost-effectiveness of a range of options for any system. We base our recommendations on an objective quantification of the operational benefits, as well as a traditional investment appraisal of associated costs.
To correctly identify the valid cost drivers and benefits of complex systems and equipment, you need a depth of technical knowledge and an understanding of the inherent functions of the equipment, its interfaces and operating environments.