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.