CAPEX Excellence: Optimizing Fixed Asset Investments - Hardcover

Reseña del editor

Focusing on the core value levers companies can apply in the decision and design phase of capital investments, this book is the first to cover this topic in a holistic, practical, and strategic manner, and is based on McKinsey's extensive industry analysis and research. The book comprehensively examines the challenges in making decisions on capital investment. It includes many examples from seven asset-heavy industries: Utilities, Oil & Gas, Telecommunications, Transportation & Logistics, Chemicals, High Tech, and Automotive. Executive-level decision makers will appreciate this innovative toolbox for increasing return on assets.

Contraportada

Much of current management literature focuses on a limited set of 'classical' value levers, such as cost reduction, sales optimization or mergers & acquisitions, thus neglecting another core value lever: capital investments. That capital investments receive such limited attention is all the more surprising when one considers how vitally important they are to the economy as a whole as well as individual businesses.

There is significant value-creation potential in optimizing capital investments. Investments not only determine the asset structure of a venture. They also enable the introduction of new products structural cost reductions. The book focuses on core questions to be answered in the critical design and realization phase of new investments:

• Right positioning - does the competitive situation allow the investment to be successful
• Right technology - how to optimize timing and risks of technology innovations
• Right timing - how to cope with economic cycles
• Right size - how to identify the optimum size of an asset
• Right location - how to find the best location for an asset
• Right design - how to make investments lean and flexible
• Right financing - how to structure the investment financing

The book features an introductory section that provides an overview of investments across the globe, across industries and across time provides practical advice on how to allocate capital to several projects within a company's investment portfolio.

Optimising Fixed Asset Investment is illustrated with real world examples from a range of industries. This book is essential reading for managers faced with challenges of making individual or portfolio capital investment decisions and who are responsible for managing these capital assets over their entire asset lifecycle. The ideas put forward within the book will help to sharpen the focus of management on the impact capital investments have on the well-being and growth of their companies.

Optimizing Fixed Asset Investments is a strategic manual for everyone involved or interested in large fixed-capital investments.