CHAPTER 8Evaluation of the Cost-Effectiveness of MES

8.1 General Information on Cost-Effectiveness

8.1.1 Calculation of Cost-Effectiveness

The concept of cost-effectiveness generally denotes measures for efficiency and/or rational operation with scarce resources. It is defined as the ratio between a result achieved (return = usage) and the use of resources required for this (outlay = costs).

Cost-effectiveness can be increased by striving for the most favorable ratio between target achievement and resource usage. In practice, the cost-effectiveness of a company, implementation of an information technology (IT) system, or product development can be established in three ways:

• Target–actual value comparison

• Comparison with other companies or ...

Get Manufacturing Execution Systems (MES): Optimal Design, Planning, and Deployment now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.