Cost Effectiveness

Cost-effectiveness analysis (CEA) is a form of economic analysis that

compares the relative costs and outcomes (effects) of different courses of action.

Cost-effectiveness analysis is distinct from cost–benefit analysis.

For the CLRS system, a comparison would have to be made between the

current road signs and the CLRS. The current road signs in Cebu City, Philippines

are made by the government of Cebu from their annual budget. After the road signs

are made, the budget is not returned to the government anymore. It is instead

absorbed by the government officials because of the existence of corruption. This

implies that the CLRS would also be cost effective for the government. The cost of

CLRS is only slightly higher than the conventional road signs, but it is still less than

the government’s budget. It is effective as well because the budget will be more

utilized by the government.

Therefore, from the government’s perspective, who would be the one

implementing the CLRS, there would be no change in the cost since they have a

budget for it. The only thing that will change is the amount of money absorbed by

government officials for corruption – this will decrease significantly after CLRS is

implemented.

System Effectiveness

System effectiveness is a measure of the ability of a system to achieve a

set of specific mission requirements. System effectiveness is a function of

availability. In a section, above, the availability is 99.994%, which implies that the

system is highly effective.

Moreover, for the CLRS, reliability and maintainability must be looked into

on a routinely basis.

Reliability & Maintainability (R&M) considerations:

 Both R&M need to be continually reviewed to ensure high availability

 R&M must be evaluated over the system life cycle, rather than merely

from the standpoint of initial acquisition

Another aspect that could affect the reliability of the CLRS system is the

system effectiveness in terms of the centralized network. Since the government

budget is available, a high investment would be made for strong and secure

connections between each CLRS unit. This would make the system both effective

and efficient.

Reliability Block Diagram

The diagram below shows the reliability structure of the Centralized LED

Road Signs systems.

References:

1. MIL-HDBK-338, Electronic Reliability Design Handbook, 15 Oct 84

2. Bazovsky, Igor, Reliability Theory and Practice
3. O’Connor, Patrick, D. T., Practical Reliability Engineering
4. Birolini, Alessandro, Reliability Engineering: Theory and Practice