CAPITAL EQUIPMENT JUSTIFICATION AND APPROVALAuthor: Michael R. Weekes
Company: Hamilton Sundstrand / UTC
Date: 09/21/2003 Conference: SMTA International
This paper includes a review of the financial aspects of investing in capital so as to make this business aspect of getting the machine you need an easier and less intimidating process. In earlier days, I will never forget the warnings I received as an engineer, that "I will never get the comptroller to sign that off".
Receiving approval for capital equipment you are recommending should not be difficult, if you understand the world that the finance and accounting community is coming from. The engineer, competent in the technology of the process and equipment, should have business tools he or she can use to justify capital investment successfully.
This paper will enable the reader to further judge the return on the investment, above and beyond replacing an old machine, meeting a new production requirement. The engineer needs to remember that the capital equipment they are recommending should satisfy the company’s goal of maximizing shareholder equity.
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