Day 1: Morning Session
- Introduction.
- Course overview.
- The capital acquisition and budgeting process.
- Investment decision considerations.
- Cost elements, including labor, material, equipment, installation, and moving services.
- Depreciation and amortization.
- Standards, efficiency factors, and utilization factors.
- Capturing manufacturing costs.
- Costs related to poor quality and recurring nonconformances.
- Approval levels.
- Prioritizing capital investment candidates.
- Class exercise.
Day 1: Afternoon Session
- Time value of money.
- The time value of money concept.
- Interest rates, compounding periods, and other factors.
- Calculating simple and compound interest.
- Nominal and effective interest rates.
- Interest formulas relating present and future values.
- The impact of burden, overhead, and general and administrative rates on capital investment decisions.
- Identifying interest rate factors and overhead rates.
- Microsoft Excel features that support time value of money calculations.
- Class exercise.
Day 2: Morning Session
- Investment Approaches.
- Capital investment considerations.
- The annual worth, net present value, internal rate of return, and payback approaches.
- Replacement analysis.
- Considering depreciation in investment decisions.
- Tax considerations.
- Advantages and disadvantages of the different investment analysis approaches.
- Microsoft Excel features that support investment analysis.
- Class exercise.
Day 2: Afternoon Session
- Capital investment, design, facilitization, procurement, environmental health and safety, regulatory, and other risks.
- The Yes-No analysis approach.
- Capital equipment supplier stability and after-sale support.
- Identifying capital equipment after sale maintenance requirements.
- Selecting capital equipment sources.
- Creating capital equipment specifications.
- The roles of the Procurement and Finance organizations in capital investment decision-making.
- Recap, Q/A, and evaluations