Our client is a global ingredients’ producer in food, biomedical & biochemical markets, active in 60 countries. The client has an annual CAPEX budget of 200 M Euro.
Business Challenge
- By high demand for its products our client executes a challenging growth strategy.
- In support of this strategy, the organization runs a large Capex & Innovations portfolio. There is a recent trend of increased inaccuracies in the early FEL stages on required capital spend and an overshooting of technical & capacity requirements related to projected business needs.
- The clients’ ExCo wanted to control the CAPEX spend and asked EFESO to improve the portfolio management system.
Approach
EFESO supported in:
- Developing a clear & simple governance structure
- Effective RACI on all levels (plant/business unit/Exco)
- Transparent, multidisciplinary & effective decision-making processes
- Integrated with other governance structures
- Effective application of standard processes and tools
- Front-end loaded Stage-gate process
- Effective tools such as risk vs. value matrix, Gain & Cost curve, etc.
- Comprehensive reporting and analytics
- Supporting stakeholders at all levels
- Continuous improvement
- Regular review of standard processes and tools
- (Data) analytics to identify areas of improvement
Main Results
Delivered ready-to-implement recommendations for:
- Simplified and effective governance structure
- Transparent CAPEX selection & prioritizing system
- Centralized Portfolio Management
- CAPEX portfolio dashboard and review process
- Systematic and transparent cost indications & estimations
