How can you measure the cost-benefit of change control activities?

It is recommended to utilize the Change Assessment Management System (CAMS) for any change control activity. CAMS includes an assessment of the change's impact on product quality, process, personnel safety & cost-benefit analysis. The cost-benefit analysis involves a team, including finance, to assess direct and indirect cost benefits. Direct costs include material, labor, equipment, and other expenses paid from reserves before revenue collection. Indirect costs include administration, utilities, salaries, and wages. Monitoring of benefits should include tangible benefits such as revenue generation or cost saving as well as intangible benefits such as customer satisfaction and employee morale, which may take longer to convert into profit.

Any change in process is acceptable when there is increase in measured qualitative value for either process or product. The best way to cost benefit analysis is to derive the COGS to individual elements of manufacturing. These are utilities, manpower, raw materials, product cost, impact of failure and the most important “Time” in terms of man-hour or process hours.

It is recommended to utilize the Change Assessment Management System (CAMS) for any change control activity. CAMS includes an assessment of the change's impact on product quality, process, personnel safety & cost-benefit analysis. The cost-benefit analysis involves a team, including finance, to assess direct and indirect cost benefits. Direct costs include material, labor, equipment, and other expenses paid from reserves before revenue collection. Indirect costs include administration, utilities, salaries, and wages. Monitoring of benefits should include tangible benefits such as revenue generation or cost saving as well as intangible benefits such as customer satisfaction and employee morale, which may take longer to convert into profit.

To measure the cost benefits of change control activities: 1. Calculate the direct and indirect costs of the change. 2. Identify and quantify the expected benefits. 3. Compute the net benefit, ROI, payback period, and break-even point. 4. Compare to the baseline scenario. 6. Continuously monitor post-implementation performance.

All " benefits" criteria must be sepcific ,measurable, achievable, relevant to the policies and time based ( SMART). The most important is measurable as anything cant measure cant be improved!

cost of quality (coq) or cost of poor quality (copq) is one of the best measurements for the benefits and cost setting for quality initiatives in the organisation. everything link to dollar and sense will create better attention to all parties from top to bottom of the organisation. cost of poor quality is not similar to normal conventional accounting figure of dollar and sens . it like make " ghost " to be seems ... make the invisible " bad " factory to be surface. the coq include failure costs( internal n external ), preventive cost and appraisal cost . not just basic recording of cases of return / complaint/ warranty, % of rejection or rework but more than the surface cost plus detail

Change requests mean they need an owner , a potential situation, anticipating potential results, backup information and overall cross departments support.

We usually concentrate on tangible, measurable cost-benefit ratios. On the other hand, sometimes there are very precious but untangible, unmeasurable quality benefits in respect of end users perceptions. As for me, the most important thing is to implement change control activities in a well designed quality system. But in most cases, such activities are being initiated by either urgency or by customers' complaints.

Be sure that your change process includes a Regulatory review to determine the impact on any market clearances. You don't want a third party auditor to review this for you.

All change control activities should be monitored and analysed periodically in a systematical manner in respect of continuous quality improvements and risk assessment.

The tools such as prioritization matrix and FMEA are my favorite for cost-benefit analysis. I know defining, communicating or analyzing are core steps for change management. However, particularly risks are often ignored while analyzing the cost-benefit. If you use FMEA with brainstorming, it would definitely help you decide what you do. After FMEA you should assess the prioritization by using matrix.

Propagating the results of change control activities by presentations, papers, internal communication media etc. is very important to strengthen the established quality system in respect of risk management and continuous improvement.

Business exists when you simultaneously control the cost perspective, the sales perspective, and the investment perspective. Quality itself is not a cost. It can be simplified that a cost is when it does not include an investment perspective. From this, it follows that quality is an investment in business and, in a narrower sense, also in sales. This is the true dimension of quality procedures, both in terms of quality control and quality assurance. In this context, it is essential to consider the benefits of change, particularly from an investment perspective. An investment comes with mathematical parameters, such as the rate of return, and long-term image parameters.

Effective change management has unmatched returns while utilising resources, the change management milestones should be tracked against any quality incidents resulting from poor change control. Associated cost avoidance, potential litigation and implementation learnings should not be ignored as part of the soft benefits of effective change management.

Well, rather often the change is started by the regulatory requirement. In this case do not forget to consider cost of not to be compliant as a benefit. Include indirect costs.

Change control in itself is self explanatory.. Need for change can have multiple impacts..Regulatory..Boosting the efficiency ..Quality improvement..Customer satisfaction..Audit compliances.. Clear statement..Communication with all stake holders..Clear assessment n measurement of impact would add to the bottomline for Sure.