Free Cost-Effectiveness Analysis Design Template

Cost-Effectiveness Analysis Design

Prepared by: [YOUR NAME]
Organization: [YOUR COMPANY NAME]
Date: [INSERT DATE]

I. INTRODUCTION

Purpose: The purpose of this cost-effectiveness analysis is to evaluate the financial and operational feasibility of [INSERT PROJECT, POLICY, OR PROGRAM NAME]. This will guide decision-making by identifying the most cost-effective option among available alternatives.

Scope:

  • Evaluate [INSERT NUMBER] alternatives.

  • Focus on [SPECIFY GOAL, SUCH AS HEALTH OUTCOMES, INFRASTRUCTURE IMPROVEMENT, OR EDUCATION ENHANCEMENTS].

  • Align with [INSERT STRATEGIC OBJECTIVES, E.G., ORGANIZATIONAL MISSION, GOVERNMENT POLICY, ETC.].

II. METHODOLOGY

A. DEFINITION OF COSTS

  • Direct Costs: [INSERT EXAMPLES, E.G., MATERIALS, LABOR, EQUIPMENT, ETC.].

  • Indirect Costs: [INSERT EXAMPLES, E.G., ADMINISTRATIVE EXPENSES, OVERHEAD, ETC.].

  • Opportunity Costs: [INSERT EXAMPLES, E.G., LOSS OF POTENTIAL BENEFITS FROM ALTERNATIVE PROJECTS].

B. DEFINITION OF EFFECTIVENESS

  • Metrics: [INSERT OUTCOME MEASURES, E.G., LIVES SAVED, STUDENTS GRADUATED, ETC.].

  • Benchmarks: [DEFINE TARGET PERFORMANCE STANDARDS OR GOALS].

C. DATA COLLECTION SOURCES

  • Primary Data: [INSERT SOURCES, E.G., FIELD SURVEYS, EXPERIMENTAL RESULTS, ETC.].

  • Secondary Data: [INSERT SOURCES, E.G., INDUSTRY REPORTS, LITERATURE REVIEWS, ETC.].

D. ANALYTICAL APPROACH

  1. Cost Estimation: Use [INSERT METHOD, E.G., BOTTOM-UP, ACTIVITY-BASED COSTING, ETC.].

  2. Effectiveness Estimation: Apply [INSERT METHOD, E.G., COMPARATIVE ANALYSIS, MODELING TECHNIQUES, ETC.].

  3. Cost-Effectiveness Ratio: Calculate the ratio using the formula:

    Cost-Effectiveness Ratio = Total Cost / Total Effectiveness

III. ALTERNATIVES ANALYZED

ALTERNATIVE 1: [INSERT ALTERNATIVE NAME]

  • Description: [INSERT DETAILS OF THIS OPTION].

  • Estimated Cost: [INSERT AMOUNT].

  • Expected Effectiveness: [INSERT METRIC AND VALUE].

ALTERNATIVE 2: [INSERT ALTERNATIVE NAME]

  • Description: [INSERT DETAILS OF THIS OPTION].

  • Estimated Cost: [INSERT AMOUNT].

  • Expected Effectiveness: [INSERT METRIC AND VALUE].

(Repeat for additional alternatives)

IV. RESULTS

A. SUMMARY TABLE

Alternative

Cost (in [INSERT CURRENCY])

Effectiveness ([INSERT METRIC])

Cost-Effectiveness Ratio

[ALTERNATIVE 1]

[INSERT AMOUNT]

[INSERT VALUE]

[INSERT VALUE]

[ALTERNATIVE 2]

[INSERT AMOUNT]

[INSERT VALUE]

[INSERT VALUE]

B. INTERPRETATION OF RESULTS

  • Alternative [INSERT NAME] is the most cost-effective option because [INSERT REASON, E.G., LOWEST RATIO, BEST OUTCOMES, ETC.].

  • Key trade-offs include [INSERT TRADE-OFFS, E.G., HIGHER INITIAL COSTS BUT BETTER LONG-TERM OUTCOMES].

V. SENSITIVITY ANALYSIS

  • Scenario 1: Increase in cost by [INSERT PERCENTAGE OR VALUE].

  • Scenario 2: Decrease in effectiveness by [INSERT PERCENTAGE OR VALUE].

  • Scenario 3: Combined changes in cost and effectiveness.

Findings: Changes in [INSERT KEY VARIABLE] significantly affect [INSERT OUTCOME, E.G., CHOICE OF ALTERNATIVE].

VI. CONCLUSION AND RECOMMENDATIONS

Conclusion: The most cost-effective option is [INSERT NAME], based on its superior cost-effectiveness ratio and alignment with organizational goals.

Recommendations:

  1. [IMPLEMENT OR PROCEED WITH CHOSEN ALTERNATIVE].

  2. Monitor [INSERT PERFORMANCE METRICS] to validate the expected outcomes.

  3. Consider periodic reassessment to account for [INSERT FACTORS, E.G., MARKET CHANGES, TECHNOLOGICAL ADVANCES, ETC.].

VII. APPENDICES

Appendix A: Detailed Cost Calculations
Appendix B: Data Sources and Assumptions
Appendix C: Sensitivity Analysis Charts

For further inquiries or clarifications, please contact [YOUR NAME] at [YOUR EMAIL].

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