Description
This paper discusses how to apply fundamental business principles to the financial challenges of funding massive capital improvement programs (CIP). Case studies from utilities of various sizes facing differingchallenges are presented to illustrate these principles. Use of a rational methodology toprioritize CIP projects and convert this prioritization into an implementable schedule isillustrated. The process for development and application of prioritization criteria isexplored and outcomes from systems are presented to demonstrate use of the technique. Thesecriteria involve a mixture of customer service, financial performance, risk and criticality andsupport for economic development.In addition, application of Business Case Evaluation (BCE) is presented for a major watersupply and treatment program in the southeastern United States. BCE establishes the underlyingdrivers for a project, identifies all feasible alternatives, uses life cycle costing (capital,refurbishment and replacement, and operations and maintenance) to compare alternatives anddefines the risk and benefits of each to select the best outcome for the customer. Application ofthis methodology is demonstrated using a case study. This approach has consistentlyshown that significant cost savings and effective risk mitigation can be achieved through use ofthis technique. Includes tables, figures.
Product Details
- Edition:
- Vol. – No.
- Published:
- 06/01/2006
- Number of Pages:
- 10
- File Size:
- 1 file , 460 KB
- Note:
- This product is unavailable in Ukraine, Russia, Belarus
