Business Case Analysis

 
Business Case Analyses (BCAs) are a fundamental tool to support Performance Based Logistics (PBL) support strategy decisions by providing a best-value analysis that considers not only cost, but other quantifiable and non-quantifiable factors supporting an investment decision. These factors may include performance, producibility, reliability, maintainability, and supportability enhancements.

As a minimum, a PBL BCA should include:

  • An introduction that defines what the case is about (the subject) and why (its purpose) it is necessary. The introduction presents the objectives addressed by the subject of the case.
  • The methods and assumptions that state the analysis methods and rationale that fixes the boundaries of the case (whose costs and whose benefits examined over what time period). This section outlines the rules for deciding what belongs in the case and what does not, along with the important assumptions.
  • The business impacts are the financial and non-financial business impacts expected in one or more scenarios.
  • Risk assessment that shows how results depend on important assumptions (what if), as well as the likelihood for other results to surface.
  • Conclusions and recommendations for specific actions based on business objectives and the results of the analysis.
The PBL BCA becomes an iterative process, conducted and updated as needed throughout the life cycle as program plans evolve and react to changes in the business and mission environment.