Capital productivity

Challenges

Allocating scarce capital across a portfolio of opportunities to generate the highest potential returns while mitigating risks continues to grow in complexity, especially in asset-intensive industries. In addition to selecting the right mix of investments, achieving world-class capital productivity requires that individual investment opportunities have been optimized, executed well, and managed with disciplined governance and follow-up processes to ensure targeted results are achieved.

Furthermore, sustaining capital programs are another key element of achieving targeted returns during the entire asset life cycle, potentially impacting 20% or more of investment NPV. Sustaining capital programs must be well orchestrated and right-sized to ensure asset health and to achieve the required asset performance and longer-term targeted ROI.

Solutions

Hatch can help you achieve significantly improve return on capital investments including growth and sustaining capital as well as indirect investments such as working capital. We leverage our deep industry experience and long history of success in large, complex life cycle project execution—design, construct, commission, ramp-up, and optimize.

Portfolio management and optimization

Viewing capital projects as a holistic portfolio is critical in managing a firm’s risks and opportunities. We help you plan and manage a holistic capital project portfolio where growth and sustaining capital projects follow structured identification, evaluation, and selection processes. Have we appropriately prioritized our projects? Are there projects in the queue that should be accelerated? Can this spend be deferred? Are we adequately managing risks? With our multi-disciplinary teams, risks and opportunities can be better managed and the planned value delivered to the business.

Project value improvement

Extract every ounce of value from their capital projects. Discover and capture value at all phases of the project life cycle. Our integrated team seamlessly works together to identify, evaluate, and deliver everything from small design improvements to massive schedule optimization initiatives.

Working capital optimization

Manage and optimize your working capital. We can help you build and deliver strategies for managing accounts receivable, accounts payable, inventories, and short-term assets. Our holistic approach to working capital optimization helps maximize capital efficiency and deliver a more profitable, resilient business.

Blogs

Kamran-Akhtar,-P.Eng.-and-Todd-Thomas,-P.E.

Repurposing coal-fired power plants: benefits and challenges

Todd Thomas PE and Kamran Akhtar PEng

Coal-fired power plants have played a key role in providing the electricity that has helped shape our global economy. As we transition to a low carbon world, can repurposing these coal-fired plants help us shape a new energy landscape?

Powering tomorrow’s steel mills with nuclear energy

Raf Hirmiz, Ph.D.

Is nuclear energy the answer to eliminating GHG emissions from the energy-intensive steel industry? 

Overseeing supply chain management to prevent budget blowouts

Raja Sahulhameed

Major capital projects are fundamental to organic growth in resources sectors. When calculating the value of a major project, CFOs have traditionally provided a fixed capital cost to the market, but the cost of megaprojects is becoming increasingly difficult to estimate, which is causing budget blowouts. Supply constraints for building materials and metals, a decrease in global crude oil supplies, high freight costs, and labor shortages are all contributing to uncertainty with the planning and delivery of megaprojects. As a result, organizational leaders need to become more involved in supply chain management in the current volatile market of inflated costs.

All Blogs