Cost Benefit Analysis

Cost Benefit Analysis technique is used to see the benefit we can get after investing the money. This technique can be used during initialization to check is it worth to invest by calculating the return as part of business case and or can be for improving the quality while considering the cost of quality.

For example what can be the reduction in the defect, how much of network downtime can be reduced, how much of wastage or scrapping of the raw materials can reduced etc… We know that as the quality increases the cost also increases. But in the end we need to see is it worth for the investment so as to get the benefit.

Cost Benefit Analysis technique is used under the process Plan Quality Management.