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HW3 Software Engineering

The document analyzes the costs and benefits of implementing a CAD system over 3 years compared to manual drawing. The CAD system costs $900,000 initially but drawings take 1 hour versus 4 hours manually. In year 1, the CAD system is used for 60% of drawings, saving $176,000 compared to manual. Over 3 years as CAD use increases to 100%, a total savings of $72,000 is realized from the CAD system. Graphs show the benefit of the project and savings from using CAD versus manual drawing.

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abdulhaseeb qadeer
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55 views4 pages

HW3 Software Engineering

The document analyzes the costs and benefits of implementing a CAD system over 3 years compared to manual drawing. The CAD system costs $900,000 initially but drawings take 1 hour versus 4 hours manually. In year 1, the CAD system is used for 60% of drawings, saving $176,000 compared to manual. Over 3 years as CAD use increases to 100%, a total savings of $72,000 is realized from the CAD system. Graphs show the benefit of the project and savings from using CAD versus manual drawing.

Uploaded by

abdulhaseeb qadeer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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COST-BENEFIT ANALYSIS STUDY

FEASIBILITY STUDY
Cost of the CAD System = USD 900,000 (turn-key delivery)

CAD time of a t-draw = 1 hour (It will be = 4 hours for manual drawing)

Cost of drawing per hour is the same in both systems = 20 USD/hour

SN Years Drawing by CAD Drawing manually


1 Year 1 %60 %40
2 Year 2 %80 %20
3 Year 3 %100 %0
Number of Drawings per year = 8000 drawings/year

Maintenance cost per year = 20000 USD/year

……………………………………………………………………………………………………………………………...
Cost of drawing for both systems…

CAD draw = 1 * 20 = 20 USD/hour

Manual draw = 4 * 20 = 80 USD/hour

For First Year


CAD System (%60) | Manual System (%40)

NofDrawing = (8000 * 60) / 100 = 4800 draw | NofDrawing = (8000 * 40) / 100 = 3200 draw

4800 * 20 = 96000 USD /year | 3200 * 80 = 256000 USD/year

Total cost of the 1st year = CAD System cost+ Manual System cost + Maintenance cost

=> 96000 + 256000 + 20000 = USD 372,000


For Second Year

CAD System (%80) | Manual System (%20)

NofDrawing = (8000 * 80) / 100 = 6400 draw | NofDrawing = (8000 * 20) / 100 = 1600 draw

6400 * 20 = 128000 USD /year | 1600 * 80 = 128000 USD/year

Total cost of the 2nd year = CAD System cost+ Manual System cost + Maintenance cost

=> 128000 +128000 + 20000 = USD 276,000

For Third Year


CAD System (%100)

8000 * 20 = 160000 USD /year

Total cost of the 3rd year = CAD System cost+ Maintenance cost

=> 160000 + 20000 = USD 180,000

Total Cost = 1 year cost + 2 year cost + 3 year cost

 372000 + 276000 + 180000 => USD 828000

Total Benefit = total cost of the CAD System – Total Cost

 900,000 – 828,000

 USD 72,000
GRAPHICAL REPRESENTATION
First Graph Indicate the Benefit of the project
And second graph is about saving money

(CAD system and Manually System)

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