Purchasing and Supply Management
Capital Equipment Purchasing: Big Risk, Big Dollars and Big Results
Is your capital spend eating away at your budget? Effectively purchase high-dollar capital equipment while minimizing risk and maximizing profits. Achieve organizational objectives by enhancing the capital expenditures process and determining when to use lease-versus-buy alternatives.
Who Should Attend
Professionals who want to learn how to effectively purchase large-dollar capital equipment minimize risk and maximize profits.
You Will Learn
- How to use the capital expenditure process to achieve corporate objectives
- How to effectively source capital purchases
- When to make lease-or-buy alternative decisions
- How to control a capital budget
Course Outline
- Capital expenditure analysis; Capital expenditure definition; Understanding the corporate planning cycle; Capital expenditure evaluation and control tools; Strategic plan; Capital forecasts; Operating forecasts; Operating budgets; The capital expenditure process
- Capital equipment purchasing overview; Achieving the corporate objective; Capital analysis; Components of the cost of capital and methods to determine capital cost; Financial return analysis methods; Project evaluation techniques
- Supplier sourcing; Supplier financial analysis; Site visits; Bid process, evaluation, and selection criteria
- Negotiations in capital purchasing; Control of negotiations and supplier relations; Goals and objectives; Planning and preparation; Elements of a successfully negotiated contract
- Lease-versus-buy alternatives; Definition and IRS qualifications of a lease; Lease terminology; The lease-versus-buy decision process; Leasing and purchasing cost evaluation
- Administration of the capital acquisition; Responsibility for forecast preparation; Capital budget tracking systems; Controlling capital projects in progress
- The post-completion audit; Purposes of audits and types of post-completion audits; Form and content of post-audits; Problems of post-audits and some solutions
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