What is cost-benefit analysis in project management?

What is cost-benefit analysis in project management?

Cost-benefit analysis (CBA) is a systematic approach to estimating the strengths and weaknesses of alternatives in project management.

How do you perform a cost-benefit analysis?

To perform a CBA, identify costs and benefits, quantify them, and compare the total costs against the total benefits.

What are some common challenges in conducting a CBA?

Common challenges include accurately estimating costs and benefits, considering intangible factors, and dealing with uncertainty.

Can you give an example of a cost-benefit analysis?

Sure! For instance, a company might analyze the costs of implementing a new software system against the expected benefits like increased efficiency.

What tools can help with cost-benefit analysis?

Tools like Excel, specialized CBA software, and project management software can help streamline the analysis process.