Justifying Capital Expenditures on Tube and Pipe Mills - (PPT)

摘要

The purpose of this paper is to explain the most common techniques used in the justification of capital equipment; identify the quantifiable and non-quantifiable cash flows associated with an investment; and to demonstrate the applicability of the justification techniques through the use of an example. To that end, we must first understand the type of investments we are addressing. Some of them may include: a. Coil Handling Systems; b. Quick Changeover Systems; c. Automated Coil Handling; d. Exit Tube Handling; e. New Cutoff; f. New high frequency welder; g. Coil End Welding; h. Computer Aided SPC controls; i. Accumulator Systems. All of the above mentioned investments have at least one thing in common. They increase the productivity of the processing line! Therefore, our analysis will focus on those investments which increase processing line productivity; however, the capital justification techniques themselves are usable regardless of the type of project or investment.