THE SECOND PART OF THE BUSINESS PLAN

COST BENEFİT ANALYSİS

Introduction:

As Group 1, cost benefit analysis of us is a bit different. Actually, some problems which we encountered in Ostim Industry Zone forced us to choose this way. These problems are mainly due to complexity of our design and reluctant attitude of the experts toward us. We could not find any expert to share his/her time, experience and workplace at first. Finally, we succeeded in finding one expert who could realize our design but there was another problem: time. After our strong-willed efforts, he accepted to help us on condition that we help him to have spare time by working with him during one day. Finally, we finished our production process paying less money than the required one. As a result of these conditions mentioned above, cost analysis of the project will be shown in two different parts one of which is for the normal conditions and the other for the real case. Both of them can be seen as follows:

Calculating Costs of the Project:

Calculating Real Cost of the Project:







Calculating Benefits of the Project:

*Reduced cost: By working together as a group and using the technique of assembly line, it is aimed to consume fewer hours of labor. Efficient use of the working days resulted in the quick end of the project. Also, appropriate estimations of how much material for the project is needed caused us to spend less money on the project and not to consume materials more than the required ones.

*Increased revenue: To increase the revenue, it is planned to sell the product with the lowest price as possible if the mass production of the stand alone board is launched. Also, available space on the board for the advertisements will be another source of revenue.

*Reduced risk: From a business perspective, the risk of not selling the product or earning less than the invested money is reduced by creating an original design, lowering the cost and choosing a more static market product.