Manufacturing Project Portfolio & Capex worked example

Project Benefit Realization at 47% realization rate: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop realization rate to 47%, then walk the calculation through step by step. Estimate the benefit a manufacturing project actually delivers after realization shortfall and sustainment cost.

The inputs for this scenario

  • Targeted benefit streams: 5 streams (held at the documented default)
  • Value per benefit stream: 60,000 $/stream (held at the documented default)
  • Realization rate: 47 % (the input this scenario stresses; the baseline uses 65)
  • Sustainment cost: 18,000 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Realized benefit = benefit streams x value per stream x realization rate + sustainment cost.
  • Total project benefit realization cost works out to 159,000 $ at these inputs, and this is the headline figure for the scenario.
  • Project benefit realization cost per unit works out to 31,800 $ / piece at these inputs.
  • Variable project benefit realization cost works out to 141,000 $ at these inputs.
  • Fixed project benefit realization adder works out to 18,000 $ at these inputs.

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 25.35% below the baseline at 159,000 $.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to realization rate, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It treats sustainment as an additive line in this preset; if your governance nets sustainment as a cost it should be subtracted, so confirm sign conventions before publishing.

Results at a glance

  • Total project benefit realization cost: 159,000 $ (headline result)
  • Project benefit realization cost per unit: 31,800 $ / piece
  • Variable project benefit realization cost: 141,000 $
  • Fixed project benefit realization adder: 18,000 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Project Benefit Realization calculator, set realization rate to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.