Objective
A Profit based Decision Analysis (PDA) has been made of the CRAFT project 'A portable easy to use system for the assessment of concrete repair'. For the analysis the KEMA RDA Excel Macro PDAMAC.XLS has been used. The first year of analysis is calendar year 1999. The objective of a PDA is the estimation of 'Commercial Value' and 'Probability of Technical Success' to support the decision to start or continue a project. As a first step a Business Model is built together with the project leader and other experts. This model simulates the influence of the important project variables on 'Commercial Value' and 'Probability of Technicai Success'. Building the model and analysing its results also lead to a clearly structured and defined project. The objective of the project is 'To develop a prototype scanner for the assessment of concrete repair to be used by concrete repair companies'. The improvements covered by this PDA are: a reduction of the inspection costs (increased productivity, Base Case NPV = 8.5 M ECU); a reduction of the fraction of concrete repair that needs to be repaired again (increased quality and reliability, Base Case NPV = 2.6 M ECU). In the PDA the 'Discount Factor' has a base value of 5%. This factor has been used to calculate the 'Net Present Value' of R&D Investments and Values in Time. The results are: CRAFT PROJECT Concrete repair Scanner : R & D Investment : M- ECU 0.77 Probability Technical Success : fraction 0.78 Mean Value given Technical Success : M- ECU 9.34 10%- Value given Technical Success : M- ECU 3.73 90%- Value guven Technical Success : M- ECU 16.22 Profit Indicator using Mean Value : factor 9.5 The 'Profit Indicator using Mean Value' of the project has the value of 8.8. it indicates an expected return of 8.8 ECU for every ECU invested. No negative 'Commercial Value' is expected. Together with the profit indicator it shows that the CRAFT project 'Dielectric heating to improve the deep fry process' is expected to be profitable. The profit indicator using the '90% Value given Technical Success' is 16.2. The 'Value given Technical Success' mainly depends on the market and some technical variables. To investigate how the profitability of the project can be further improved, recommendations are: An additional study of the market to obtain a more exact characterisation. Further study of the 'Technical' variables 'Number Existing Tests', 'Factor more Tests Scanner', 'Costs / Test Existing' and 'Fraction Early Repair / Year'.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques.
- social scienceseconomics and businessbusiness and managementbusiness models
- social scienceseconomics and businesseconomicsproduction economicsproductivity
You need to log in or register to use this function
Call for proposal
Data not availableFunding Scheme
CRS - Cooperative research contractsCoordinator
4241 XN Arkel
Netherlands