Maximizing Value to Non-Profits

2/11/00


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Table of Contents

Maximizing Value to Non-Profits

Overview

The Balancing Act

Cost of Delay Analysis

The Four Forces on Commercial Projects

One of Many Rapid Development Tools

Strategic vs. Tactical Tools

Cost of Delay Analysis

Sensitivity Analysis

Commercial Experience

Adaptation to Non-profit Projects

The Five Forces on Non-Profit Projects

Objective: Maximize Value

What is Value?

Calculating Benefits

Identifying Costs

How Do You Determine Value?

“Rational User” Method

Comparison Method

Other Methods

Time and Its Impact

Three Examples of the Value of Time

Reduced Crew Size Destroyers

Delay in New SSBN

Radar Aircraft Reliability Improvement

Applying Cost of Delay Analysis A Detailed Example

Step I Create A Value Model

Baseline Economic Model Template

Major Interchange Upgrade

Major Interchange Upgrade

Step II Modify the Baseline Model

Modified Value Models (Major Interchange Upgrade)

Step III Calculate Total Impact

Step IV Convert to Decision Rules

Summary

Author: Ross McNutt

Email: asq0511@asq0511.org

Home Page: www.asq0511.org