PD-Trak™ Return on InvestmentPD-Trak™ will pay for itself in a short time through the following savings: Reduced Team EffortPD-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 and waiting. Conservatively, assume a 1% reduction in personnel costs. Include all R&D personnel resources in your R&D manpower budget estimate: Marketing, Engineering, Purchasing, Manufacturing, etc.
Reduced Resources Wasted on Projects Which Are Not Commercially FeasibleIt is common for companies to spend 20% to 40% of R&D resources on projects which are not technically or commercially feasible. By installing a rigorous stage-gate process, demonstrating financial and commercial feasibility early, better understanding customer needs, and monitoring project performance with PD-Trak™, it is possible to cut R&D resources wasted on projects that are not commercially feasible or are minimally profitable in half. Conservatively, assume a 5% reduction in wasted R&D resources. Include all R&D personnel resources and other non-recurring development costs in your R&D budget estimate: Marketing, Engineering, Purchasing, Manufacturing, tooling, prototypes, etc.
Reduced Administrative EffortPD-Trak™ organizes project information for stage-gate reviews and project reviews and the Master Project Schedule provides a good 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:
Total Savings
Total CostsCost will vary depending on the business unit size and implementation approach. For a medium-size business unit that wants to customize PD-Trak to their process, PD-Trak™ costs are estimated to be: Annual License - $9,500; Configuration - $5,000; and Implementation (based on 20 days of consulting effort) - $40,000. Total first year costs are $54,500. Subsequent yearly costs are the annual license, maintenance & support fee of $9,500. Over a five year period, the costs would be $92,500. Return on Investment
Payback Period
For a smaller-size business unit that wants to use the standard PD-Trak stages and gates and our NPD process-in-a-box, PD-Trak™ costs are estimated to be: Annual License - $9,500 and Implementation (based on 4 days of consulting and training) - $8,000. Total first year costs are $17,500. Subsequent yearly costs are the annual license, maintenance & support fee of $9,500. Over a five year period, the costs would be $55,500. Return on Investment
Payback Period
For further information, please contact us at: info@pd-trak.com or at 925-484-8436. Portfolio Management Software
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