What are the different stages of the Capex Management process
The Capex Management module is built according to the process it serves. Here are the different stages of it.
As shown in the figure below, the Capex Management process consists of two parallel processes. These will be explained below:
Request
The Registration of Request stage. It is at this stage that an individual within your organisation creates an investment request for a noticed need, desire or idea. Among other things, the individual in question will often have to give information such as the amount of the investment needed, explanations about the situation, expected dates, expected results, KPIs to follow, other alternatives explored. The individual prepare, analyse and build their business case.
The Decision stage. Here the request goes through one or more individuals with the task of evaluating the requests benefits and drawbacks and ultimately deciding whether the requested investment should be implemented or not. Before this latest step, it is possible to ask for more information to make the request more comprehensive and the decision more informed. Requests that are in the approved budget still has to go through this stage!
The Monitoring stage, where the project that stemmed from the granted capex request is being implemented. Monitors need to fill in information such as how the funding is allocated over time, measure the KPIs in focus, or keep the schedule of the execution updated. If the monitor realizes that the amount of money that was initially requested happens to be too low, it is possible to create an additional request that will go through the same approval process to unlock more capital for the same capex request.
The Follow-up stage. Once the project is completed, one or more individuals have the task of carrying out all the last audits. Essentially, auditors check for differences between the information that was filled-in in the base request and the actual results of the project.
Budget
The Initial Capex Budget stage. In this stage a budget draft is created. This first draft contains all Capexes from within the company and allows for the board of directors to get a first glimpse of the investment need within the organization.
The creation of Alternative Budgets. Several budget alternatives are created in this stage, whereas e.g. one defensive, one offensive and one neutral budget are created. These alternatives are presented for the board of directors.
The Budget Decision stage. A preliminary budget decision is taken in this stage, where some requests make the cut, and some doesn’t. This preliminary budget is to create the frame of the budget in which the actual requests are not yet set in stone.
These two processes are seamlessly integrated in Weissr Capex Management, which creates transparency in the data within the system.