This page provides guidelines for calculating a return on investment for deploying PD-Trak. This only focuses on improved project execution efficiencies and does not include portfolio management i.e. picking the right projects.

Return On Investment Calculation Method

Reduced Team Effort

PD-Trak™ will reduce the effort of each project team by providing document templates, a structured planning and statusing process, a single repository for project documents, and better coordination which will reduce delays. Conservatively, assume a 5% reduction in personnel costs. Include all personnel resources involved with your projects (may include R&D, Marketing, Engineering, Purchasing, Manufacturing, etc.)

Your Manpower Budget x 5% = ________ (local currency units)

Reduced Resources Wasted on Projects Which Are Not Commercially Feasible

It is common for companies to spend 20% to 40% of resources on projects which are not technically or commercially feasible. By installing a rigorous stage/phase-gate process, demonstrating financial and commercial feasibility early, better understanding customer needs, and monitoring project performance with PD-Trak™, it is possible to cut resources wasted on projects that are not commercially feasible or are minimally profitable in half. Conservatively, assume a 10% reduction in wasted resources. Include all personnel resources involved with your projects (may include R&D, Marketing, Engineering, Purchasing, Manufacturing, etc.)

Your Total Manpower Budget x 10% = ________ (local currency units)

Reduced Administrative Effort

PD-Trak™ organizes project information for gate reviews and project reviews and the Master Project Schedule provides an effective monitoring tool for all projects. On average, you should expect these capabilities to save at least one day per month of project manager/team leader time for each project or 12 days per year for each project. Based on 240 workdays per year, this is equivalent to 5% of the project manager's or team leader's cost. Assume a fully-loaded annual cost (including all benefits and overhead) for a project manager or team leader, the saving are calculated as follows:

Average Number of Projects x 5% x Annual cost of Project Manager = ________ (local currency units)

Total Savings

Total these annual savings: ________ (local currency units)

Total Costs

This method calculates ROI over a 5 year period.

Use the Pricing page to calculate the annual cost of the components to be purchased.  Enter amount here: _________ (local currency units).

Enter the cost of any process templates that are purchased: __________(local currency units)

If you plan to have PD-Trak Solutions provide significant help in process definition enter the equivalent of US$5,000 here:  __________(local currency units)

If you plan to have PD-Trak Solutions provide implementation support including training basics training, computer based training for project managers and senior managers enter the equivalent of US$10,000 here: ____________(local currency units)

Add these amounts for a total investment figure: ____________ (local currency units)

Return on Investment

(((Total Annual Savings x 5) - Total investment) / Total investment) x 100 = _____%

Payback Period

Total investment / Total annual savings = _____years