Danfoss, a global leader in engineering with over 28,000 employees, is committed to shaping the future through digital innovation and electrification. This study focuses on Danfoss Drives, a segment of the company with over 5,000 employees, specializing in AC drives for motor control. Danfoss Drives is renowned for its extensive R&D capabilities, with over 1,000 engineers spread across multiple countries.

Challenges in Development and Resource Utilization

Danfoss Drives identified two primary challenges: significant delays in new product development and inefficiencies in resource utilization. To address these, a detailed cause-effect analysis was conducted, revealing key areas for improvement, particularly in project planning, effort estimation, and resource allocation.

Strategic Solution: Implementation of Earned Value Analysis

The solution involved the implementation of Earned Value Analysis (EVA) using Keto Software, focusing on creating intelligent dashboards with metrics and indicators to aid decision-making. The analysis utilized the Cost Performance Index (CPI) and the Schedule Performance Index (SPI) to measure planning accuracy and resource allocation efficiency, aiming for an optimum target value of 1.0 in both indices. These metrics were integrated into Keto Software’s dashboards without requiring additional coding, enhancing transparency and reducing manual work.

Outcomes and Successes

The adoption of these metrics led to significant improvements for Danfoss Drives:

  • Enhanced project predictability, allowing for a tightening of target tolerances in accuracy indicators.
  • Increased active use of metrics to initiate corrective actions in projects.
  • Greater alignment of written project reports with metrics, indicating more efficient resource allocation.
  • Growing demand for further improvements in project and portfolio dashboards.

Key Learnings for Danfoss

The case study highlights several key insights for Danfoss:

  • Metrics are most effective when they objectively reflect identified success factors.
  • A transparent and integrated process from measurement to action is crucial for continuous improvement.
  • The availability of an integrated business intelligence application like Keto Software, which doesn’t require coding for configuration, is essential in developing effective solutions.

In conclusion, Danfoss Drives’ implementation of Keto Software and its strategic use of Earned Value Analysis significantly enhanced its project management efficiency, leading to more accurate planning, better resource utilization, and overall operational improvement.


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