Question: I need to respond to the post below with value added comments -- 1) For your first topic in this conference I would like for
I need to respond to the post below with value added comments --
1) For your first topic in this conference I would like for you to briefly review either your personal experiences and/or the financial literature to identify and present a description of one actual capital project/product success and the reasons attributed to the success.
One example of Capital Projects would be a company improving their building or investing in new more advanced tools/machines that would reduce the amount of funds spent on repairs. Kuehne Chemical is a company who invested in new facility and installation of new pipes which would connect process to an existing one (Kennedy, 2012). This new addition to their facility was a $260,000 investment which I can see paying off in the end.
When investing in such large amount of capital towards a new project, the company must be careful because those types of investments can make or break the shareholder value (Kennedy, 2012). This type of investment for Kuehne Chemical will be a successful one because it will help them improve production with new systems and equipment that will be incorporated to make it an easier process.
2) Synthesize your one-paragraph position on what 3-5 specific factors you believe most likely to contribute to capital project analysis success.
Some factors that play a big role in the success of a capital project are the planning and execution. When the correct amount of planning and pre-planning are done correctly it can dramatically minimize the double work that can happen. Also, deciding what contractor, price, technology, permits, and environmental impacts to name a few, can have a great impact on how well or how bad the project can go (Kennedy, 2012). Another important factor that should be considered would be the risk planning factor. This can allow companies to identify risk early on and avoid any delays that can occur. This can also allow for visibility of the project and allow for the continued risk reporting (Kennedy, 2012).
Kenedy, Sheila. Sheila Kennedy. Planning and Software Can Lead to CPM Prosperity., 21 Aug. 2012.https://www.plantservices.com/article/2012/08-factors-predict-capital-project-success/?show=all
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