DPL 9 Help

Productivity Ratio Charts

Productivity Ratio Charts

When you select either Productivity Ratio Chart or Initial Decision Alternatives Productivity Chart in the Portfolio Analysis Options dialog, DPL produces a productivity chart. To produce the productivity chart, DPL calculates a productivity ratio for each project by dividing the expected benefits of a project by its expected costs. The projects in the portfolio are then ranked by this ratio.

For an Initial Decision Alternatives Productivity Chart, the above ratio calculation is done for each initial decision alternative, rather than only for the optimal initial decision alternative.

For a Productivity Ratio chart, the further to the right (and more blue shaded) a project markers appears in the productivity chart, the lower its productivity ratio is and the less efficient it is in terms of its use of capital. While those projects further to the left (and more red shaded) have a higher productivity ratio. If you are funding projects up to a specific budget, you can use the productivity ratio chart to determine which to fund at any given level. "Draw" a line up from the x-axis at your budget constraint. Projects to the left of the line should be funded; projects to the right should not be funded.

On an Initial Decision Alternatives Productivity Chart at any point on the graph, you can tell whether the next most efficient use of capital is, for example, a different funding level on a project that appears to the left of where you are on the graph, or to fund a new project that has yet to be funded. Project markers are colored by project by default.

You can format how the markers are color in the chart by launching the dialog box launcher within the Chart | Format | Color group.

Versions: DPL Portfolio

See Also

Portfolio Analysis Options dialog