In This Article
How Monthly Benefits are calculated
How the Monthly Benefit Calculation Method is activated
Overview
We have introduced a New Idea/Initiative Monthly Benefit Calculation Method, which provides more granular, month-by-month benefit tracking across all system functions in addition to the existing Annualized Benefit Calculation method.
What's New
- Accurate Value Display: When you enter a monthly benefit amount on Manual Capture or is sourced from, that exact value now appears consistently across all reports and dashboards. No more unexpected conversions or discrepancies.
- Clear Labeling: Monthly and annual benefit values are now clearly distinguished throughout the system, making it easier to understand your financial data at a glance.
- Reliable Reporting: All reports and exports now accurately reflect your true monthly benefit values, giving you confidence in your financial projections and ROI calculations.
- Simplified Workflow: You can now trust the benefit data directly in WiredUp without needing to maintain separate calculations or spreadsheets.
This enhancement improves the accuracy and reliability of your benefit tracking, making it easier to demonstrate the financial impact of your continuous improvement initiatives.
Note: the monthly Benefit Calculation Method is not automatically applied to the system. A site administrator must confirm and activate the feature before the system can apply the Monthly Benefit Calculation to the site's initiativesHow Monthly Benefits are calculated
Once the Monthly Benefit Method has been activated, the following changes will take place:
- VDT values will appear as 'Benefit for Month' in the Idea Benefit Grid
- Manual Capture values will display as 'Target Monthly Benefit' in the Idea Benefit Grid
- All users will see monthly benefit calculations consistently throughout the system
On VDT Calculation Method:
- The Benefits for Month value is sourced from the Benefits values obtained from the root/output node of the VDT.
- The Benefits per Day is calculated as: Benefit per Month / Production Days
- The Annualized Benefit is thereafter calculated as: Benefit per Day * Benefit Duration
On Manual Capture:
- If ONLY the improvement value has been captured On Idea Overview:
- The Target Benefit is equal to the Improvement Value
- The Target Annual Benefit is calculated as: (Target Benefit / Production Days) * Benefit Duration
- The Annualized Benefit is calculated as: (Target Benefit / Production Days) * Benefit Duration
- The Benefit per Day is calculated as: Annualized Benefit / Benefit Duration
- The Benefit for the Month is calculated as: Benefit per Day * Production Days
- The Target Benefit is equal to the Improvement Value
- If the Improvement Value AND Actual Monthly Benefits have been captured:
- The Target Benefit is equal to the Improvement Value
- The Target Annual Benefit is calculated as: (Target Benefit / Production Days) * Benefit Duration
- The Benefit for the Month is obtained from the captured Actual Monthly Benefit value
- The Benefit for the Day is calculated as: Benefit for the Month / Production Days
- The Annualized Benefit is calculated as: Benefit per Day * Benefit Duration
- The Target Benefit is equal to the Improvement Value
Note: the same benefit calculation methods will be applicable to Non-Financial Benefits either in VDT or Manual Capture Method
The benefit calculation method in Manual Capture depends on which values you enter: Improvement Value only, or both Improvement Value and Actual Monthly Benefits.How the Monthly Benefit Calculation Method is activated
The Monthly Benefit Calculation feature is activated internally by the WiredUp team. To activate the feature, kindly contact support at support@wiredup.global.
1. Once the feature has been activated, the site administrator can activate the site setting by selecting the Monthly option under the Benefit Calculation Method site setting.
- For PMO users, the site setting is located on Portfolios > Site Configuration > Settings > Idea
- For CI users, the site setting is located on Organisation Structure > Site Configuration > Settings > Ideas
Note: the site setting is set as Annualized Method by default
2. When activating this feature, a warning message will appear first. After reviewing the warning, site administrators can click Continue to proceed with the activation.
The benefit calculation method change will not affect ideas/initiatives in Cancelled, Completed, or Archived status. These ideas will retain the calculation method that was in place when they reached their current status.
3. Once the Monthly Benefit Calculation method has been activated, an e-mail is sent to Idea Owners and Idea Facilitators to notify them that their administrator has enabled the Monthly Benefit calculation method for all Ideas/Initiatives within their site. The e-mail sent is similar to the one displayed below
4. The following occurs during the update to the Monthly Benefit Calculation Method
- Ideas undergoing the monthly benefit calculation method updates will display an "Updating Benefit Calculation Method" warning message until the process is complete.
- Ideas being updated to the monthly benefit calculation method will remain in read-only state until the update is completed
- Ideas in Cancelled, Completed, or Archived status will be skipped during the calculation method update process.
When copying or changing an idea or initiative status from Cancelled, Completed, or Archived to Active, Approved, or On-hold, users will see an updated modal message with an information icon explaining that the benefit calculation method will change.Affected Areas
The following areas within the WiredUp system will be affected by the Monthly Benefit Calculation update:
- Cumulative Benefit API: The Ongoing/Benefit for the Month and Target Benefit values will return the updated Idea Benefit Grid values.
- Cumulative Benefit Report: The Ongoing/Benefit for the Month, Target Benefit, Benefit YTD total, and YTD Forecast values will reflect the new benefit grid values.
- Portfolio Value Dashboard Widget: The Monthly Benefit Grid Calculation method will be applied correctly when the 'Value' field is set to 'Cumulative Benefits.'
- Total Benefits Dashboard Widget: The Actual field will use the Benefit for the Month value, while the Forecast field will use the Target Benefit value.
- Top25 Initiatives Dashboard Widget: Monthly Benefit Calculation will be applied when the configuration is set to either "Initiatives by Actual Benefit for current month" or "Initiatives by Actual Benefit for last month.
Summary
Monthly Benefit Calc Method (Using VDT)
Description | Calculation |
Cash In Forecast | Sourced from the Cash Flow Table |
Cash In | Sourced from the Cash Flow Table |
Cash Out Forecast | Sourced from the Cash Flow Table |
Cash Out | Sourced from the Cash Flow Table |
Benefit Per Day | Benefit for month / Production Days |
Benefit For Month | Benefit Value (Actual less Baseline) from VDT |
Production Days | Sourced from Calendar Site Setting |
Ongoing Benefit | Benefit For Month |
Target Benefit | Improvement Value (Target less Baseline) from VDT |
Net Target Benefit | Target Benefit less (Cash In Forecast plus Cash Out Forecast) |
Annualized Benefit | Benefit Per Day * Benefit Duration |
Target Annual Benefit | (Improvement Value / Production Days) * Benefit Duration |
% of Target Improvement Achieved | (Benefit Value / Improvement Value) * 100 |
Variance vs Target Annual Benefit | Annualized Benefit less Target Annual Benefit |
Monthly Benefit Calc Method (Manual Capture)
Description | Calculation |
Cash In Forecast | Sourced from the Cash Flow Table |
Cash In | Sourced from the Cash Flow Table |
Cash Out Forecast | Sourced from the Cash Flow Table |
Cash Out | Sourced from the Cash Flow Table |
Benefit Per Day | Annualized Benefit/Benefit Duration |
Benefit For Month | Benefit Per day * Production Days |
Production Days | Sourced from Calendar Site Setting |
Ongoing Benefit | Benefit For Month |
Target Benefit | Improvement Value (Manual Capture from Idea Overview) |
Net Target Benefit | Target Benefit less (Cash In F. plus Cash Out F.) |
Annualized Benefit | (Improvement Value / Production Days) * Benefit Duration |
Target Annual Benefit | (Improvement Value / Production Days) * Benefit Duration |
% of Target Improvement Achieved | (Annualized Benefit / Target Annual Benefit Value) * 100 |
Variance vs Target Annual Benefit | Annualized Benefit less Target Annual Benefit Value |
Monthly Benefit Calc Method (Manual Capture) - When 'Actual Benefit for Month' is captured
Description | Calculation |
Cash In Forecast | Sourced from the Cash Flow Table |
Cash In | Sourced from the Cash Flow Table |
Cash Out Forecast | Sourced from the Cash Flow Table |
Cash Out | Sourced from the Cash Flow Table |
Benefit Per Day | Benefit For Month / Production Days |
Benefit For Month | Captured 'Actual Benefit for Month' |
Production Days | Sourced from Calendar Site Setting |
Ongoing Benefit | Benefit For Month |
Target Benefit | Improvement Value (Manual Capture from Idea Overview) |
Net Target Benefit | Target Benefit less (Cash In F. plus Cash Out F.) |
Annualized Benefit | Benefit Per Day * Benefit Duration |
Target Annual Benefit | (Improvement Value / Production Days) * Benefit Duration |
% of Target Improvement Achieved | (Annualized Benefit / Target Annual Benefit Value) * 100 |
Variance vs Target Annual Benefit | Annualized Benefit less Target Annual Benefit Value |