Hansen / Huhn / Legrand CAPEX Excellence

Optimizing Fixed Asset Investments
1. Auflage 2009
ISBN: 978-0-470-74876-3
Verlag: John Wiley & Sons
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 232 Seiten, E-Book

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.

Autoren/Hrsg.

Hansen, Hauke

Huhn, Wolfgang

Legrand, Olivier

Steiners, Daniel

Vahlenkamp, Thomas

Inhaltsverzeichnis

Acknowledgements
About the Authors
Part I Why Investments Matter
1 Introduction
1.1 Investments - the forgotten value lever
1.2 A bird's-eye view of the book content
1.3 Why investments matter - the importance and structure of capital investments
Appendix A1 Microeconomics background: the relevance of capital investments
Appendix A2 Wavelet analysis: extracting frequency information from investment timelines
References
Part II Getting Investments Right
2 Right Positioning: Managing an Asset's Exposure to Economic Risk
2.1 Introduction
2.2 The level of asset exposure determines the achievable return
2.3 The level of protection determines the degree of exposure of an investment
2.4 A simple scoring metric to measure asset exposure
2.5 Quantitataive asset exposure analysis shows high correlation with ROIC at all levels
2.6 Strategies for reducing asset exposure
3 Right Technology: How and when to invest in a new technology
3.1 Capital investments in technology innovation
4 Right Timing: How Cyclicality Affects Return on Investments and What Companies Can Do About It
4.1 How cyclicality destroys value
4.2 Industry drivers of cyclicality
4.3 Developing an economic model of cyclicality
4.4 Measure to cope with cyclicality
Appendix 4A A differential equation for economic cyclicality
5 Right Size: Balancing Economies and Diseconomies of Scale
5.1 Introduction: The role of scale in determining profitability
5.2 Assessing economies of scale
5.3 Determining diseconomies of scale
5.4 Risk elements
5.5 An approach for finding the "sweet spot"
5.6 Real-life examples
6 Right Location: Getting the Most from Government Incentives
6.1 Government incentives: an overview
6.2 Creating public-private, win-win situations
6.3 Common types of incentive instruments
6.4 The financial impact of incentives: a modeling approach
6.5 Geographical differences in incentive structures
6.6 Managing government incentives
7 Right Design: How to Make Investments Lean and Flexible
7.1 Lean design as a competitive advantage
7.2 The three dimensions of a lean capital investment system
7.3 Flexibility: just what customers and shareholders need and no more
7.4 How to avoid creatig a front-page disaster: anticipating what can go wrong
8 Right Financing: Shaping the Optimal Finance Portfolio
8.1 Why financing matters
8.2 Three-step financing approach
Part III: Right Allocation: Managing a Company's Investment Portfolio
9 Right Allocation: How to Allocate Money Within the Company
9.1 Key requirements for capital allocation
9.2 Four models of the corporate centre role in shaping the investment portfolio
9.3 Capital allocation approach for operators and strategic controllers
9.4 Capital allocation approach for strategic architects and financial holding structures
Index

Über Autor(innen)

Hauke Hansen works as a production manager for ASML inVeldhoven (NL). Prior to his current job he was an AssociatePrincipal in McKinsey's Düsseldorf office. He servedhigh-tech, telecom, logistics and telecom companies and supportedseveral multi-billion dollar investment projects. He holds a PhD inphysics from the University of Konstanz and was a Fulbright-scholarat the California Institute of Technology.
Wolfgang Huhn is a Director in McKinsey's Frankfurtoffice. He primarily serves clients in the high tech industry aswell as in energy. Wolfgang is a member of the Business TechnologyOffice where he leads the industrial sector in Europe. He alsoleads the European Product Development Practice. Prior to joiningMcKinsey, Wolfgang studied electrical engineering and physics inAachen and UK and obtained his PhD in Physics from the RWTH Aachen.From 1998 to 2000, Wolfgang was the CEO of a VC-backed company.
Olivier Legrand is a Partner in McKinsey's Paris office.He serves clients in the transportation, steel and aluminumindustries as well as in consumer goods and energy. Olivierco-leads McKinsey's global capital productivity group. Prior tojoining McKinsey, Olivier spent four years with Air France inmarketing research, marketing and sales positions. Olivier holds anMBA from Stanford Business School.
Daniel Steiners is an Associate Principal in McKinsey'sDüsseldorf office. He serves clients in electric power andchemicals across Europe and North America and is a co-leader ofMcKinsey's European capital productivity group. Daniel received adiploma in business administration from Muenster University and aPhD in management accounting from the European Business School inOestrich-Winkel.
Thomas Vahlenkamp is a Director in McKinsey'sDüsseldorf office. He serves clients in the coal, oil, gas,power, and chemicals as well as transportation industries. Thomasis the sector leader of the Energy and Materials Practice inGermany and a member of the leadership group of the EuropeanElectric Power and Natural Gas Practice. His educational backgroundis in polymer chemistry. He holds a degree from the TechnicalUniversity of Aachen (RWTH) and a doctorate from the Max PlanckInstitute for Polymer Research.