Capital project management

Each company has well-defined work processes, procedures, and guidelines for capital project management. It is not the intention to repeat them here. Instead, certain important issues that may arise from capital project management are highlighted below. 

A typical work process for capital project management consists of four stages. The first stage is appraisal technical people can give a consensus if an... 

Review Policy The review policy should estabhsh when project safety reviews should be done. All capital projects, large or small, should have one or more safety reviews during the course of the project. The number and types of review shoiild be stated in a management policy. Any reasons for exceptions to the policy should oe documented as well. The policy should address not only projects internal to a company, but also any joint ventures or turnkey projects by outside firms. 

The "Capital Projects Design Review Procedures" element of process safety management assures that the design, the equipment and the construction are properly reviewed for all new projects. Process safety review procedures should be involved with the project from its inception. One method of illustrating the various phases of a project is shown in Figure 8.1 (Figure 5-1 from CCPS, 1989a). 

Capital Project Review Community Outreach Contractor Program Crisis Management Emergency Planning Emergency Devices/Alarms... 

Sponsors often underestimate process analysis projects. Like any other project, PA projects necessitate appropriate staffing and capital resource as well as rigorous project management and leadership. 

Project management Project manager Project management Capital management Sponsor(s) and stakeholder communications... 

Management commitment to support the fire protection program is necessary if fire protection is to be available when needed. The commitment includes ensuring adequate staffing, resources, and technical support is provided. While fire protection is included with new capital projects, sufficient resources to maintain these systems must be included in the facility s budget for maintenance. 

The minimum acceptable rate of return (MARK) for a venture depends on a number of factors such as interest rate, cost of capital, availability of capital, degree of risk, economic project life, and other competing projects. Management will a(bust the MARK depending on any of the above factors to screen out the more attractive ventures. When a company invests in a venture, the investment must earn more than the cost of capital and should be able to pay dividends. 

Total capital required (TCR) includes TCC, design, inspection, project management, construction management, management reserve, and contingency. 

The soil contained 72,000 lb of volatile organic compounds (VOCs). The total cost to complete the project was estimated to be 5.7 million. According to project managers, approximately two-thirds of the funds were allocated for capital costs (including chemicals and the injection process) and one-third for monitoring and support (D18766A, p. 3). 

Successful implementation of waste minimization methodologies depends on several factors, most notably obtaining the necessary funding. Waste reduction is generally accompanied by process efficiency improvements and cost reductions. Nevertheless, the company s capital resources may be tied up elsewhere. It is essential to know the level within an organization that has approval authority for capital projects, and to have a team that can present the financial, technical and environmental benefits in such a manner as to sell the project to management. 

Risk management should be central to the planning, budgeting, and acquisition process. Failure to analyze and manage the inherent risk in all capital asset acquisitions may contribute to cost overruns, schedule shortfalls, and acquisitions that fail to perform as expected. For each major capital project, a risk analysis that includes how risks will be isolated, minimized, monitored, and controlled may help prevent these problems. 

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