We help you strategically align capital-intensive projects by finding the right balance of risk mitigation, governance and cost controls, which is essential to achieving and increasing profitability.
A huge, untapped source of value
Asset-intensive industries and capital-intensive projects constitute a significant portion of Australia’s economic activity. The challenges faced by leaders of large capital projects are, on the surface, similar to those that influence any project – except that the scale and complexity is immensely magnified, as are the consequences of even minor disruptions. Every increment of improvement that can be extracted from an asset or resource and every element of risk that is mitigated can produce significant, quantifiable benefits.
However, the need for rapid initiation and execution can inhibit the ability to ensure all components are optimised and regularly reviewed to account for shifting trends or assumptions. Leaders of capital projects are continually confronted by a range of competing decisions, such as how to minimise and control project costs, how to understand and mitigate risk and how to provide appropriate governance without unnecessary bureaucracy.
How Deloitte can help
Deloitte has developed and implemented world class capital allocation and capital management strategies that are underpinned by three cascading propositions:
- Aligning the portfolio to strategic objectives
- Developing a portfolio optimisation model and
- Conducting individual project capital efficiency reviews, which seek to increase the value and certainty of project outcomes.
Through our network, Deloitte’s Operations Consulting team can draw on one of the world’s leading skill bases to provide industry specific knowledge, valuation and risk modelling capabilities, together with access to leading current research on the macroeconomic environment via our Deloitte Access Economics advisory practice. Furthermore, our team is made up of industry experts who are able to draw up their unique insights into relevant industries to drive value engineering benefits across major projects that have not yet left the drawing board.
Our approach to Capital Project Risk Analytics provides a comprehensive view of the critical risks and their impact on the returns of capital projects. Risk modelling also provides a view of the aggregate level of project risk, including breakeven probability and upside and downside risk scenarios.
We can help you implement mechanisms to the speed of streamlined, yet rigorous, governance and stakeholder engagement, while building confidence through transparent communications and taking advantage of opportunities to drive collaboration and economies of scale through smart capital spending and asset management.
Deloitte’s Asset Lifecycle Management Framework helps you identify the right type and volume of assets using the right procurement approach (buy, lease or build), together with an assessment of the most efficient maintenance and retirement cycles.
Optimising the management of assets can generate significant value across four dimensions:
- Driving shareholder value by growing revenue
- Reducing operational costs
- Improving asset productivity
- Reducing inventory carrying costs.
- Capital project management
- Capital project development optimisation
- Asset efficiency
- Asset management/maintenance strategy.