Performing cost benefit analysis

In this page, each Change Request can be subjected to Cost Benefit Analysis. Tell me more.

Select the “Edit Cost Benefit Analysis” link at the bottom of the “Evaluate Change Request” page.

The “Edit Cost Benefit Analysis” page appears.

The system displays the following fields in the “Change Request Details” group box:

Change Request #	The change request number selected in the main page.
Revision #	The revision number of the change request.
Change Doc Type	The type of the change document, which could be “MCR”.
User Status	The user defined status of the change document.
Subject	The description of the change request.

Enter the following field:

Applicability Group

Use the drop-down list box to select the applicability group for which you wish to perform the cost benefit analysis. The system lists all the applicability groups that are identified for the “MCR” type of change request.

Note: The system does not allow you to modify this field, if you have already performed the cost benefit analysis for the applicability group displayed and corresponding details are retrieved in the multiline.

Enter the following field in the “Scenario Details” group box:

Scenario #

The number identifying the scenario for which you wish to perform the cost benefit analysis (Integer) Mandatory. Ensure that the number entered here is positive. This number should be unique for the change request, revision number and the applicability group number combination.

Help facility available.

Click the “Get Details” pushbutton to retrieve the cost details identified for any of the already defined scenario.

Effected Entities	The number of entities that are affected due to the scenario (Integer). Ensure that the number entered here is positive.
Scenario Description	The textual description of the scenario (Alphanumeric, 255).

The system displays the following field:

Base Currency

The currency, specified in the “Enterprise model” business component, in which the amount appears in this page.

Enter the following in the “Parameters” group box:

Cost Type	Use the drop- down list box to select the type of cost, which could be “One-Time” or “Recurring”. The system sets the field to “One-Time” by default.
Resource Mark-Up Factor	This is a multiplying factor applied on the Resource Requirements identified in the Maintenance Change Request. Ensure that the number entered here is positive (Decimal). The system sets the field to “1”, if this field is left blank.
Cost / Man Hr.	Hourly cost of Manpower (Decimal). Ensure that the number entered here is positive.
Fixed Cost	The fixed cost involved in executing the change request (Decimal). Ensure that the number entered here is positive.

Click the “Calculate” pushbutton.

The system calculates and displays the “Total Material Cost per entity” and “Total Resource Cost per entity” by multiplying the “Resource Mark-Up Factor” entered for the change request.

Note: If the change Doc type is “MCR”, the total material cost and resource cost will be taken from “Create MCR” activity of the “Maintenance Change Request” business component.

Enter the following in the “Expenses Per Entity” group box:

Material Cost	The material cost incurred for executing the change request (Decimal). Ensure that the number entered here is positive.
Resource cost	The resource cost incurred for executing the change request (Decimal). Ensure that the number entered here is positive.
Grounding Cost	The cost incurred when the aircraft is grounded for executing the change request (Decimal). Ensure that the number entered here is positive.
Misc. Cost	The miscellaneous cost incurred for executing the change request (Decimal). Ensure that the number entered here is positive.

Enter the following in the “Savings Per Entity” group box:

Maint. Related

The maintenance related amount saved per aircraft, on executing the change request (Decimal). Ensure that the number entered here is positive.

Use the drop-down list box displayed alongside, to specify whether the maintenance related savings is “One-Time” or “Recurring”. The system sets the field to “One-Time” by default.

Operations Related

The operation related amount saved per aircraft, on executing the change request (Decimal). Ensure that the number entered here is positive.

Use the drop-down list box displayed alongside, to specify whether the operations related savings is “One-Time” or “Recurring”. The system sets the field to “One-Time” by default.

Misc Savings

The miscellaneous amount saved per aircraft, on executing the change request (Decimal). Ensure that the number entered here is positive.

Use the drop-down list box displayed alongside, to specify whether the miscellaneous savings is “One-Time” or “Recurring”. The system sets the field to “One-Time” by default.

The system displays the following in the “Comparison Details” group box, on clicking the “Edit Evaluated Information” pushbutton:

Recurring Expenses / Year	The expenses that will be incurred per year on executing the change request. The system calculates this value as, the sum of “Material Cost“, “Resource Cost”, “Grounding Cost” and “Misc. Cost”, for which the “Cost-Type” is “Recurring”, multiplied by the number of effected entities.
One- Time Expenses	The one-time expenses that will be incurred on executing the change request. The system calculates this value as, the sum of the values entered in the “Material Cost“, “Resource Cost”, “Grounding Cost” and “Misc. Cost” field for which the “Cost-Type” is “One-Time”, multiplied by the number of effected entities.
Savings / Year	The savings that will be achieved per year on executing the change request. The system calculates this value as the sum of the values entered in the “Maint Related“, “Operations Related” and “Misc. Savings” fields, for which the saving type is “Recurring”, multiplied by the number of effected entities.
One - Time savings	The one-time savings that will be achieved on executing the change request. The system calculates this value as the sum of the values entered in the “Maint Related“, “Operations Related” and “Misc. Savings” fields, for which the saving type is “One-Time”, multiplied by the number of effected entities.

Enter the following field in the “Document Attachment Details” group box:

File Name

The file name of the document attached to the change request (Alphanumeric, 30).

Help facility available.

Select the “View File” link alongside to view the file details.
Click the “Edit Evaluated Information” pushbutton to update the cost benefit details.

The status of the MCR is changed from “Confirmed” to “Processed”.

Performing cost benefit analysis – An overview

In this page, each Change Request can be subjected to Cost Benefit Analysis. The user can enter the costs under various heads such as material, resource, downtime and miscellaneous costs that will be incurred and savings such as Maintenance, Operational and Miscellaneous that can be achieved, per aircraft. The fixed and recurring expenses and savings for the affected entities (aircraft / components) will be projected.

You can perform cost benefit analysis for different possible scenarios. Enter a scenario number and describe the scenario and the number of entities (aircraft or components) affected in the scenario. You can enter the costs and potential savings that will be incurred scenario wise. Based on the price identified for material and resources in the “Maintenance Change Request”, system will automatically calculate the total Material Cost and Resource Cost per entity. The resource requirements suggested through the MCR can be factored while processing the MCR, by specifying a value in the Resource Mark Up factor. The system automatically calculates the manpower cost by multiplying the Est. Man Hrs. specified in the Maintenance Change Request with Cost / Man Hrs. The Manpower Cost will be included in the Resource Cost.

The system calculates the yearly expenses and savings, and the one-time expenses and savings.

Based on the results of the cost benefit analysis, the change request will be processed in the “Process Change Request” page.

What you can do in this page

Enter cost details

Enter savings details

Enter cost details

You can enter the various costs, such as the material cost, resource cost, downtime cost and miscellaneous costs, that will be incurred on the aircraft due to the execution of the change request.

Enter the cost of material in the “Material Cost” field.
Enter the cost of resource in the “Resource Cost” field.
Enter the cost that will be incurred due to the grounding time of the aircraft, in the “Grounding Cost” field.
Enter any other miscellaneous cost in the “Miscellaneous Cost” field.

Enter savings details

You can enter the savings that can be achieved per aircraft, on executing the change request.

In the “Savings Per Entity” group box,

Enter the maintenance related savings amount in the “Maint. Related” field. Use the drop-down list box alongside to specify whether the savings is of type one-time or recurring.
Enter the operations related savings amount in the “Operations Related” field. Use the drop-down list box alongside to specify whether the savings is of type one-time or recurring.
Enter the miscellaneous savings amount in the “Misc. Savings” field. Use the drop-down list box alongside to specify whether the savings is of type one-time or recurring.