CC-02-141 INVESTMENT IN AN INTEGRATED PRODUCTION SYSTEM

Description:

There has been a transformation in automation projects of the past ten years. Replacements of process and production systems are slowly being brought together into total look down collaborative processes. Major breakthroughs in understanding of integration technologies have improved the production, quality and speed of delivery in processing. Companies who saw the future of integrated business and spent the capital to improve are the ones who have prospered and survived the shakeout of the 1990’s. In the next ten years, we will see the same level of break through changes by the progressive companies, with large technology investments going to collaborative production control and process upgrades. Along with this move to highly integrated projects comes an increase in the uncertainty about the economic payback. Multiple projects where some contribute to the return on shareholder investment while others do not result in a situation where clear identification of benefit adds to the confusion. Today’s economic pressures to succeed demand a more precise and structured evaluation of the value and risk of large projects. Shareholder value demands an in-depth economic analysis along with cash-flow management of project investments. Good Stewardship and fiduciary responsibility are enhanced by identifying, qualifying and quantifying the economic benefits of projects. This presentation will provide an exact and structured approach to increase the likelihood of a good outcome, based on perfect control of imperfect information. In other words, manage the investment risk of uncertainty.