Question

A facility director is charged with evaluating whether it is worthwhile to complete a project. The best approach would be to:

A. Conduct a productivity study.
B. Determine the startup funds needed.
C. Conduct a cost-benefit analysis.
D. Determine the number of people involved.

Answer 1

The best approach for a facility director to evaluate whether it is worthwhile to complete a project would be to conduct a cost-benefit analysis.

Option C is the correct answer: Conduct a cost-benefit analysis.

A cost-benefit analysis involves comparing the costs associated with a project to the benefits it is expected to generate. This analysis helps to assess the financial feasibility and overall worthiness of the project. By quantifying both the anticipated costs and the potential benefits, the facility director can make an informed decision about whether to proceed with the project.

Conducting a productivity study (Option A) may be useful in evaluating the efficiency and effectiveness of current operations, but it may not provide a comprehensive evaluation of the project's worthiness.

Determining the startup funds needed (Option B) is important for financial planning but does not provide a complete picture of the project's overall benefits and costs.

Determining the number of people involved (Option D) may be relevant for resource allocation and staffing but does not directly address the evaluation of the project's worthiness.

Therefore, conducting a cost-benefit analysis (Option C) is the most appropriate approach to assess whether completing the project is worthwhile.

Answer 2

The best approach for a facility director evaluating a project is to conduct a cost-benefit analysis, considering the trade-offs between costs and benefits to make an informed decision.

Step-by-step explanation:

The facility director tasked with evaluating the worthiness of completing a project should conduct a cost-benefit analysis. This involves comparing what you will give up, or the costs, against what you will gain, namely the benefits. This rigorous approach takes into account the financial implications, effort required, and other sacrifices, and contrasts them against the advantages like monetary gains, time savings, experience, and improvements. Such an analysis is important as it succinctly represents the trade-offs and helps in making a knowledgeable decision. It employs the concept of weighing marginal costs against marginal benefits, potentially using tools like a T-shaped chart to visually represent the comparison.

By understanding both the positive and negative impacts, the facility director can assess if the project aligns with organizational goals, whether it will yield a satisfactory return on investment, and whether any adjustments are needed to enhance success rates. Conducting interviews or productivity studies could be part of the process, but they do not provide the comprehensive view that a cost-benefit analysis offers. Furthermore, it's critical that the evaluation is straightforward for program managers to grasp the purpose and that all stakeholders, including employees involved in the implementation of the project, buy into the evaluation process.