Cost benefits

Bottom hole assemblies and certain types of downhole equipment (e.g. logging tools, MWD tools) cost several US 100,000. Some logging tools will have radioactive sources which may need to be recovered or isolated for safety and legal reasons. However, prior to commencing fishing operations, a cost - benefit assessment will have to be made to establish that the time and equipment attributable to the fishing job is justified by the value of the fish or the cost of sidetracking the hole. 

The fiscal regime (or tax system) in some countries allows the cost of exploration and appraisal (E A) activity to be offset against existing income as a fiscal allowance before the taxable income is calculated. For a taxpaying company, the real cost of appraisal is therefore reduced, and this should be recognised in performing the cost-benefit calculations. 

In addition to the cost-benefit aspects of appraisal activities, there are frequently other practical considerations which affect appraisal planning, such as... 

Comparative Risk-Cost-Benefit Study of Alternative Sources of Electrical Energy, Report WASH-1224, U.S. Atomic Energy Commission, Washington, D.C., Dec. 1974 Nucl Sa 17(2), 171 (1976). 

Databases differ in their strengths and weaknesses, as well as in their focus. As a result, dupHcate searches carried out on different databases generally produce different results. This has been demonstrated in comparative studies of retrieval results for a group of patent databases (31,32). Participants in one study (31) made an effort to develop optimal search strategies in each database tested, yet in no instance did one file produce perfect retrieval. Both investigations (31,32) found that results from the various databases complemented each other. As a result, searchers are counseled to use multiple databases whenever possible. There is no pat answer to the question of how many files to use or which files to use however, more files mean more expenditure, and searchers must develop their own cost—benefit relationship. 

Process Hazards Analysis. Analysis of processes for unrecogni2ed or inadequately controUed ha2ards (see Hazard analysis and risk assessment) is required by OSHA (36). The principal methods of analysis, in an approximate ascending order of intensity, are what-if checklist failure modes and effects ha2ard and operabiHty (HAZOP) and fault-tree analysis. Other complementary methods include human error prediction and cost/benefit analysis. The HAZOP method is the most popular as of 1995 because it can be used to identify ha2ards, pinpoint their causes and consequences, and disclose the need for protective systems. Fault-tree analysis is the method to be used if a quantitative evaluation of operational safety is needed to justify the implementation of process improvements. 

In dentistry, palladium alloys are widely used as alternatives to base metal alloys in the manufacture of crowns and bridges as weU as the replacement of lost or damaged teeth (see Dental materials). Such alloys contain over 80% palladium, and hence offer significant cost benefits over alloys containing a high proportion of gold. 

Rotavirus. Rotavims causes infant diarrhea, a disease which has major socio-economic impact. In developing countries it is the major cause of death in infants worldwide, causing up to 870,000 deaths per year. In the United States, diarrhea is stiU a primary cause of physician visits and hospitalization, although the mortaUty rate is relatively low. Studies have estimated a substantial cost benefit for a vaccination program in the United States (67—69). Two membrane proteins (VP4 and VP7) of the vims have been identified as protective epitopes and most vaccine development programs are based on these two proteins as antigens. Both Hve attenuated vaccines and subunit vaccines are being developed (68). 

Cost—benefit analyses for adult immunizations have also been performed. Influenza immunization during the period from 1971 to 1977 resulted in over 13 million more years of life at a cost of only 63 per year of life gained. Productivity gains were estimated to have a value of 250 x 10 (148). Projected costs of pneumonia have been calculated at 3.6 times the cost of vaccination, or a savings of 141 per person is achieved among those at risk for developing pneumonia or over the age of 50 years (149). 

BatteUe (MEDTAP) Eiual Report,M Cost Benefit Anafisis of DTP Vaccine to the U.S. Dept. Health and Human Services, Washiugtou, D.C., Mar. 4, 1994. 

Solving water pollution problems today involves a multidisciplinary approach in which the required water quaUty is related to agricultural, municipal, recreational, and industrial requirements. In many cases, a cost—benefit ratio must be estabUshed between the benefit derived from a specified water quaUty and the cost of achieving that quaUty. 

Because zinc-based alloys have low melting points, energy savings in the melting operation are substantial and the foundry operation is essentially free of fume. With the current trend of increasing energy costs and pollution control, cost benefits can be considerable (114). 

The importance of the penicillins as a class of heterocyclic compounds derives primarily from their effectiveness in the treatment of bacterial infections in mammals (especially humans). It has been estimated that, in 1980, the worldwide production of antibiotics was 25 000 tons and, of this, approximately 17 000 tons were penicillins (81MI51103). The Food and Drug Administration has estimated that, in 1979 in the U.S.A., 30.1 x 10 prescriptions of penicillin V and 44.3 x 10 prescriptions of ampicillin/amoxicillin were dispensed. This level of usage indicates that, compared to other methods of dealing with bacterial infection, the cost-benefit properties of penicillin therapy are particularly favorable. Stated differently, penicillin treatment leads to the elimination of the pathogen in a relatively high percentage of cases of bacterial infection at a relatively low cost to the patient in terms of toxic reactions and financial resources. 

Once the options have been clearly defined it will be necessary to carry out a cost-benefit analysis of each option. This has two main objectives. First, the overall cost of the project will need to be assessed to determine whether or not it is financially viable and, second, to ensure that those who will be required to incur expenditure are fully aware of the commitment needed. The financial benefits to users of the waters for recreation, fisheries, navigation, etc., are relatively easy to determine, but monetary valuation of the environmental benefits such as conservation and general amenity will be more difficult to define. As yet this aspect of the cost-benefit analysis has not been fully developed in the UK. Having determined a range of options and costs for eutrophication control in a particular catchment, consultation on the details of the Action plan with all those involved is needed before any plan can be implemented. 

Covernment and regulatoi y decisions. Sometimes these decisions are based on some type of quantitative risk analysis, and they provide some guidance on society s expectations with regard to risk management. In some cases these decisions will also include some kind of cost-benefit analysis. The current political climate in the United States may encourage more extensive use of risk analysis in the establishment of future regulations. 

Qualitative answers to one or more of these questions are often sufficient for making good decisions about the allocation of resources for safety improvements. But, as managers seek quantitative cost/benefit information upon which to base their decisions, they increasingly turn their attention to the use of quantitative risk analysis (QRA). 

Discuss the extent to which cost-benefit analysis should be considered in setting emission standards. 

Your process may produce wastes that cannot be treated on-site, and so must be transported off-site for treatment and disposal. Wastes of this type are usually non-aqueous liquids, sludge, or solids. Often, wastes for off-site disposal are costly to transport and to treat, and represent a third-party liability. Therefore, minimization of these wastes yields a direct cost benefit, both present and future. Measure the quantity and note the composition of any wastes associated with your process that need to be sent for off-site disposal. Record your results in a table or an appropriate spreadsheet. 

Major differences between ED and other processes are, first, the solute is transferred across the membrane against water in the other technologies discussed below, whereas only ionic species are removed by ED. As noted, two different membranes (anionic and cationic) are employed. Current consumption depends primarily on the TDS concentration. You should look at this very closely when comparing the operating cost benefits and tradeoffs of this technology to other options. Current efficiency can be calculated from the following formula ... 

The life cycle cost of a process is the net total of all expenses incurred over the entire lifetime of a process. The choice of process chemistry can dramatically affect this life cycle cost. A quantitative life cycle cost cannot be estimated with sufficient accuracy to be of practical value. There is benefit, however, in making a qualitative estimate of the life cycle costs of competing chemistries. Implicit in any estimate of life cycle cost is the estimate of risk. One alternative may seem more attractive than another until the risks associated with product liability issues, environmental concerns, and process hazards are given due consideration. Value of life concepts and cost-benefit analyses (CCPS, 1995a, pp. 23-27 and Chapter 8) are useful in predicting and comparing the life cycle costs of alternatives. 

Once adopted, plans should be periodically reviewed (depending on the project) and evaluated for effectiveness and cost/benefit. If the scope of work or any worksite hazards change significantly or if lessons learned indicate a review, the plans should be revised promptly... 

The Safety Goal Policy Statement was published to define acceptable radiological risk IVom nuclear power plant operation, and by implication provide a de minimus risk to be assured without cost considerations. Safety beyond the minimum requires cost-benefit analysis. Since being promulgated, bulletins and generic letters have been imposed to enhance safety, under the provisions of 10 CFR 50.109, the Backfit Rule. 

A facility risk review (FRR) is intermediate between a qualitative HAZOP and a quantitative risk assessment (QRA) achieved by broad probability and consequence classifications. Although not a risk assessment, an FRR uses PSA to get optimum risk cost-benefit. 

Subjective evaluation of recommendation effectiveness Subjective evaluation of recommendation effectiveness Cost/benefit analysis of recommendations... 

VI A - Value Impact Analysis, a form of cost benefit analysis that includes attribute evaluations in addition to dollars. 

To maintain the target level for temperature, a specific amount of insulation may be needed, since too little insulation makes it impossible to keep the temperature levels. For each building it is necessary to make a detailed cost-benefit calculation of insulation and heating/cooling costs. The same discussion is applicable to temperature variation requirements, both for the rate of change and the period lengths (see Chapter 16). 

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