Cost modelling and cost benefit analysis is undertaken to determine and understand the costs incurred and the value derived from a proposed activity, acquisition or investment. Once carried out, it allows organisations, or their financiers, to investigate different scenarios to determine and demonstrate the most cost effective way forward.
The services BMT Design & Technology provide enable our clients to understand associated costs, benefits and risks therefore allowing business decisions to be made with confidence and in cognisance of the implications of each possible option. BMT provide these services in support of a range of asset types. The objective is to ensure that clients understand the cost drivers and can optimise their programs to ensure 'best value for money'.
Quantification of value is achieved through a systematic approach that captures the benefits of each candidate option within the context of the benefactor’s requirements and priorities whilst taking into account current or potential use and replacement.
Whole Life Cost Modelling
Procurement, operating and support costs over a given life-of-type are determined utilising industry best practice estimating and modelling techniques. Modelling includes allocation for risk and uncertainty along with simulation and sampling techniques to ascertain levels of confidence.
Cost Benefit Assessment
Analyses to demonstrate trade off of expenditure and benefit (both actual and perceived), and calculate returns on investment and payback periods. Our approach to cost benefit analysis provides a clear view of the best value for money alternatives whilst taking into account what is most important to you.
Combined Operational Effectiveness and Investment Appraisal Services
Often with the procurement of complex systems, the benefit of candidate options can be measured in its ability to perform particular tasks within specified environments or settings. The need to balance financial benefit against effectiveness is a critical element of any program, whether it is an upgrade to an existing asset or development of a new capability. Through COEIA, a formal comparison of the cost effectiveness of a range of options for any system can be undertaken based on detailed objective quantification of their operational benefits, as well as a traditional investment appraisal of their associated costs. BMT Design & Technology apply a structured COEIA method to assess all the costs, benefits and risks associated with alternative decisions on system expenditure which allow our clients to identify the most effective solutions at the lowest affordable cost.
Independence and Credibility
Justification for making the right decision requires an impartial view and a robust business case. With complete independence from manufacturing and equipment supply interests, BMT is able to provide truly impartial engineering services and advice. Our highly qualified team recognises the need for transparent and robust analyses backed by credible data sources and evidence. BMT are able to provide independent cost estimates, cost model verification and validation services and cost/budget assessments or reviews.
Identification of the true cost drivers and benefits of complex systems and equipment requires a depth of technical knowledge and an understanding of the inherent functions of the equipment, its interfaces and operating environments. BMT employs its experienced engineers in the delivery of services in this area who are also members of the International Cost Estimating and Analysis Association (ICEAA).
For general enquiries relating to Cost Modelling and Analysis, please contact Aidan Depetro
BMT Design & Technology