Auditing cost-effectiveness analyses of technological changes

Abstract

A methodology is developed for auditing cost effectiveness analyses of major technological changes. The methodology is applied to the Work in Process Inventory Control System (WIPICS) recently implemented at NARF, North Island. The approach involves using data on NARF operations to estimate cost functions for each major program of the NARF both before and after the change. Cost comparisons using these models do not show a clear cost savings for the WIPICS system. (Author)