General approach

For capital investment projects we usually deliver the following workstreams:
   1. Business driver analysis
   2. Scenario planning and selection
   3. Asset requirement definition & investment estimating
   4. Calculation of cash flows and return on investment
   5. Risk assessment and evaluation
   6. Implementation proposal

Strategic capacity planning

Cash flow from investment in additional capacity is usually low during the first years of operation due to under-utilisation. This makes a reliable demand forecast essential and for that reason we have created the Crystal Ball model which processes demand and capacity information from different markets and production lines into a simple projection of required capacity.

Business case preparation

After analysis of the business drivers and scenario planning follows selection of the ‘winning concept’. In this workstream we use our OptiCost model to make the trade-off between the cost of capital for additional capacity, the cost of holding inventory, the cost of missed sales, and the effects on purchasing power towards suppliers.