Manufacturing Project Portfolio & Capex worked example

Project Benefit Realization at 75% realization rate: a worked example

Push realization rate up to 75% and the picture changes. This example computes every intermediate figure at that operating point. A continuous-improvement lead reconciling promised project savings against what is genuinely banked.

The inputs for this scenario

  • Targeted benefit streams: 5 streams (unchanged)
  • Value per benefit stream: 60,000 $/stream (unchanged)
  • Realization rate: 75 % (raised for this scenario; the documented default is 65)
  • Sustainment cost: 18,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Realized benefit = benefit streams x value per stream x realization rate + sustainment cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 243,000 $ for total project benefit realization cost, the number this scenario is built around.
  • At this operating point the engine returns 48,600 $ / piece for project benefit realization cost per unit.
  • At this operating point the engine returns 225,000 $ for variable project benefit realization cost.
  • At this operating point the engine returns 18,000 $ for fixed project benefit realization adder.

How this compares with the baseline

  • Against the tool's baseline example, where realization rate sits at 65% and the headline result is 213,000 $, this scenario comes in 14.08% above the baseline at 243,000 $.
  • It multiplies the number of benefit streams by the value per stream and a realization rate, then adds sustainment cost to produce total realized value. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total project benefit realization cost: 243,000 $ (headline result)
  • Project benefit realization cost per unit: 48,600 $ / piece
  • Variable project benefit realization cost: 225,000 $
  • Fixed project benefit realization adder: 18,000 $

Run it with your numbers

  • Every input above is editable in the live Project Benefit Realization calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.