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PCB007-Nov2024

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NOVEMBER 2024 I PCB007 MAGAZINE 71 of actual project data is recorded, it can be used to improve estimates for future projects. • Provide insight for future projects: Performance aer product introduction should be tracked so that the actual BET can be determined and compared to the forecasts. e actual financial return aer BET should also be tracked to provide benchmarks for future projects. Financial Inputs Aer the start of a project is defined, the investment and profit details need to be included as outlined. How to include affected products and the methods for using BET as a decision-making tool versus a product devel- opment metric are covered in Figure 2. Table 1 outlines the required inputs for a BET analysis. ese inputs will vary by entity and geography, so agreement on the input numbers with the local functional staff and controller is essential. BET Limitations BET is not a panacea. Some of the limita- tions to consider when applying BET include: • The need to balance BET with other factors: e BET metric has a strict finan- cial focus. It ignores strategic and other non-financial reasons for developing a product. To provide the proper perspec- tive, BET should always be considered col- lectively with these other issues. Figure 2: The BET performance measure used in various projects and organizations.

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