A general methodology for cost effectiveness analysis was developed and applied to the Colorado State University library loan desk. The cost effectiveness of the existing semi-automated circulation system was compared with that of a fully manual one, based on the existing manual subsystem. Faculty users' time and computer operating costs were measured. Labor costs were broken down for each circulation activity and were established by means of a time study analysis. The study also considered all, and measured some, changes in effectiveness in meeting the objectives of the circulation department. The results indicate that the existing system is more expensive than the manual one, that the semi-automated system is more effective in saving user's time, and that the record-keeping for the automated system is less accurate than that of the manual system. (Author/WH)