Cap Ex Time Span

“I know I have a budget report to submit every October, but it only takes me about a week to put it together. I just look around and see what equipment on the floor really needs replacing, get some vendor quotes and run it up the flag pole. Sometimes I get the budget, most times I don’t. You describe this as a 15 month Time Span task?” asked Corina.

“That’s the problem,” I replied. “If you see that report as a one week Time Span task, then it is of little value to the company. That is why identifying Time Span is so important. Only when you understand that this is a 15 month Time Span task do you understand that it is a much bigger project.” I could see a glimmer of understanding, so I pressed.

“By October, I need you to really look into the future for the entire following year. I need you to get a big piece of paper and flow chart out your system. I want to see each production element, time studies on each process, handoffs, bottlenecks and dependencies. Using your discretionary judgment, I want a well-thought out recommendation for Cap Ex that will help the company earn money. It still might only take a week to prepare the report, but the thinking is much deeper. This is a 15 month Time Span project.” -TF

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