BIZOMAT Tools · Decide
Two-Option Comparison
Which of two options gives the stronger overall outcome?
Compares two options on benefit-to-cost, risk and delivery time, and says when they are too close to call.
Open the calculatorRuns in your browser. No account needed.
How this tool works
Inputs, units and where to find them
| Input | Unit | Typical source |
|---|---|---|
| Option A annual benefit | $ | Option A annual benefit from its business case |
| Option A cost | $ | Option A total cost estimate or quotation |
| Option A delivery time | days | Option A delivery time from the supplier or plan |
| Option A risk | 1–5 score | Option A risk rating from the risk assessment (1 low, 5 high) |
| Option B annual benefit | $ | Option B annual benefit from its business case |
| Option B cost | $ | Option B total cost estimate or quotation |
| Option B delivery time | days | Option B delivery time from the supplier or plan |
| Option B risk | 1–5 score | Option B risk rating (1 low, 5 high) |
What each input means
Open an input to see what it is, its units, the worked example and the common mistakes, with a small diagram.
What this means: Option A annual benefit
- What it is
- The money Option A is expected to earn or save each year, from its business case or estimate.
- Units and format
- Enter a number in $: an amount of money; use one currency for every money input. The form accepts $0 or more.
- Example
- The form opens with $60000 as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Raises Option A’s benefit-to-cost ratio, which is worth 50 points per 1.0 of ratio.
- Get it right
- Work out both options on the same basis (annual, before tax) so they can be compared fairly.
What this means: Option A cost
- What it is
- The total cost to put Option A in place, from a quotation or estimate.
- Units and format
- Enter a number in $: an amount of money; use one currency for every money input. The form accepts $1 or more.
- Example
- The form opens with $30000 as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- A higher cost lowers Option A’s benefit-to-cost ratio and its score.
- Get it right
- Include installation, training and other costs to make the option work, not just the purchase price.
What this means: Option A delivery time
- What it is
- How many calendar days until Option A is delivered and working, from the supplier or project plan.
- Units and format
- Enter a number in days: days. The form accepts 1 days or more.
- Example
- The form opens with 60 days as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Every 3 days removes 1 point; at 120 days or more the delivery part of the score is zero.
- Get it right
- Use calendar days for both options, not a mix of working and calendar days.
What this means: Option A risk
- What it is
- The overall risk that Option A fails to deliver its cost, time or benefit, rated 1 (low) to 5 (high) from your risk assessment.
- Units and format
- Move the slider to a score from 1 (low) to 5 (high).
- Example
- The form opens with 2 as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Each step up removes 8 points from Option A’s score.
- Get it right
- Rate both options against the same risk descriptors, ideally in the same session.
What this means: Option B annual benefit
- What it is
- The money Option B is expected to earn or save each year, from its business case or estimate.
- Units and format
- Enter a number in $: an amount of money; use one currency for every money input. The form accepts $0 or more.
- Example
- The form opens with $70000 as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Raises Option B’s benefit-to-cost ratio, which is worth 50 points per 1.0 of ratio.
- Get it right
- Work out both options on the same basis (annual, before tax) so they can be compared fairly.
What this means: Option B cost
- What it is
- The total cost to put Option B in place, from a quotation or estimate.
- Units and format
- Enter a number in $: an amount of money; use one currency for every money input. The form accepts $1 or more.
- Example
- The form opens with $45000 as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- A higher cost lowers Option B’s benefit-to-cost ratio and its score.
- Get it right
- Include installation, training and other costs to make the option work, not just the purchase price.
What this means: Option B delivery time
- What it is
- How many calendar days until Option B is delivered and working, from the supplier or project plan.
- Units and format
- Enter a number in days: days. The form accepts 1 days or more.
- Example
- The form opens with 40 days as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Every 3 days removes 1 point; at 120 days or more the delivery part of the score is zero.
- Get it right
- Use calendar days for both options, not a mix of working and calendar days.
What this means: Option B risk
- What it is
- The overall risk that Option B fails to deliver its cost, time or benefit, rated 1 (low) to 5 (high) from your risk assessment.
- Units and format
- Move the slider to a score from 1 (low) to 5 (high).
- Example
- The form opens with 3 as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Each step up removes 8 points from Option B’s score.
- Get it right
- Rate both options against the same risk descriptors, ideally in the same session.
Method and formulas
- Score = 50 × (benefit ÷ cost) + 8 × (6 − risk) + max(0, 40 − delivery days ÷ 3)
- Too close to call when the scores are within 10% of the higher score
Limitations
- Fixed weighting between value, risk and time
- Benefit-to-cost is not discounted
- Mandatory requirements must be checked separately
Typical uses
- Choosing between two equipment, supplier or project options
- Preparing a recommendation paper
- Testing which assumption decides the choice
Who it is for
- Managers and engineers preparing recommendations
- Project sponsors
What you get
- OPTION A, OPTION B or TOO CLOSE TO CALL
- Score for each option
- Side-by-side comparison table
Interpreting the result
- Exclude any option that fails a mandatory requirement before scoring
- When too close, decide on factors outside the score or improve the data
References
- Kepner C. H. and Tregoe B. B., The New Rational Manager (Princeton Research Press) for structured option analysis
Learn the Concepts Behind This Tool
These BIZOMAT Library readings explain the method this tool uses, with worked examples.
Method explained here · BIZOMAT original book
Options derived from the outcome, and why the choice changed
In Outcome-First Projects by the Numbers
What it covers: Business as usual, do-minimum, the A$6.12m new plant, the A$2.44m outcome-derived option and a staged option scored on all four targets and on time: only one passes.
Useful alongside · Library collection
Models rank options, people decide value: trade-offs, efficient choices and what counts
In Valuing Time, Delay and Uncertainty
What it covers: A scoring model gives the best answer to the question it was given. How to remove clearly worse options, see real trade-offs, treat weightings as decisions and agree what value means.
BIZOMAT tools are screening and decision-support utilities. Verify important financial, engineering, safety, legal or operational decisions using appropriate professional standards and your organisation’s approved data.