Including individual capital project detail for major projects can be a very effective communication tool.
While project need identification is usually a decentralized function, capital initiation and allocation decisions tend to remain a highly centralized undertaking. Include existing cash flow, projected costs for the long-term assets needed, total investment capital necessary and projected cash flow when the assets are in place.
One approach is to establish a priority system for facilities projects. The percentage is significant, even though the actual spending figures are small relative to the wage cost variance. Managers use this technique to visualize the project and make more informed decisions.
Post Completion Project Evaluation Once you choose the project and put into operation, a qualified financial services firm, such as yours should undertake a post completion audit of the project. Systems need to be in place to make sure that the data presented for projects is accurate for both timing and dollars.