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Hello AllAfter watching the video Problem Solving Techniques #7: Cost-Benefit Analysis, I came up with the following concepts that I learned from the presentation:From past experience, even though the cost benefit ratio shows that the most expensive solution may not provide the best yield, it could be the wiser choice. A simple example: Would you go to a pizza parlor and order Chinese food? The cost benefit ratio may be better when buying the product from the pizza shop but it is not something that they specialize in. In the long run, it could prove to be disastrous. In addition to the completion of a cost benefit analysis, there are several other factors that need to be taken into consideration before a final decision is made. Long term support, which source has a longer shelf life, warranties, issue response time, and other items that may justify the more expensive option.2 .I was introduced to the Cost Benefit Analysis (CBA) roughly 2 years ago and although I never know of this term before then I always approached different tasks this way. The things I took away form the short video were that you need to know what is expected to complete/use a CBA properly. Additionally, how the author pointed out that there are 4 items that go into make a CBA and what option you choose. I like that he says its “greatest return for the cost of implementation, decision making, cost data rationale, and verify the cost effectiveness”. These are key items that truly have to be reviewed while completing a CBA. Just because one proposed item is cheaper up front does not mean it is cheaper in the long run or cause harm in other departments or areas of the business. Implementing a new software can be cheap, but training end users how to use it, maintaining the new software, the lack of features and ability could cost you more in the long run. Lastly, I liked that If you do not have all of the data you cannot make a CBA that is valid due to not knowing what could go wrong or impact the results. This was the most important take away that i had.
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