Capex Excellence: Optimizing Fixed Asset Investments

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 successfulRight technology – how to optimize timing and risks of technology innovationsRight timing – how to cope with economic cyclesRight size – how to identify the optimum size of an assetRight location – how to find the best location for an assetRight design – how to make investments lean and flexibleRight financing – how to structure the investment financingThe 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.Biographie de l'auteurHauke Hansen works as a production manager for ASML in Veldhoven (NL). Prior to his current job he was an Associate Principal in McKinsey’s Düsseldorf office. He served high–tech, telecom, logistics and telecom companies and supported several multi–billion dollar investment projects. He holds a PhD in physics from the University of Konstanz and was a Fulbright–scholar at the California Institute of Technology.Wolfgang Huhn is a Director in McKinsey′s Frankfurt office. He primarily serves clients in the high tech industry as well as in energy. Wolfgang is a member of the Business Technology Office where he leads the industrial sector in Europe. He also leads the European Product Development Practice. Prior to joining McKinsey, Wolfgang studied electrical engineering and physics in Aachen 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 aluminum industries as well as in consumer goods and energy. Olivier co–leads McKinsey′s global capital productivity group. Prior to joining McKinsey, Olivier spent