Cost-Benefit Analysis
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Get Your Maintenance Management Terminology Down!
Cost-Benefit Analysis is a method of evaluating the potential costs and benefits of a maintenance operation or management decision. It is used to determine whether the proposed action is worth the investment of time, money, and resources. Cost-benefit analysis involves assessing the costs associated with the proposed action, such as labor, materials, and equipment, and then comparing them to the expected benefits, such as increased efficiency, improved safety, and reduced downtime. The analysis also takes into account any potential risks associated with the proposed action, such as the possibility of unexpected costs or delays. Cost-benefit analysis is an important tool for maintenance operations and management, as it helps to ensure that decisions are made in the best interests of the organization
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