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 ...