Capital investments optimization yields significant savings

How spending and sourcing of capital investments (manufacturing & material handling equipment and buildings) can be optimized.

How to define best practice target costing for capital investments and how to realize them sustainably

• Rising procurement volume with a complex and heterogeneous technology portfolio
• Increasing complexity and cost of maintenance
• Lack of cost transparency
• Procurement largely takes place using commercial levers only
• True total cost of ownership (TCO)

How to optimize cash for capital investments by getting best value for money

• What are the best practice solutions for manufacturing equipment & buildings?
• What is the cost impact of changing production concepts?
• Where should manufacturing facilities be located?
• How do we mitigate risks pertaining to excess capacity and ramp-up phase?

Focus of TSETINIS-EFESO investment optimization is production equipment along the value-add process

Cost Engineering of capital investments

We are well experienced in reducing the cost of production facilities and equipment across production technologies and industries on a global scale.

We have developed a specific cross-functional approach and a set of tools to optimize the costs of machinery and equipment as well as buildings.

We know exactly what levers to apply across the entire capital investment procurement process.

We calculated, estimated, and negotiated the best cost for machinery and equipment, material handling, commercial component parts and buildings. In addition, we conducted cost workshops with suppliers.

Six (6) levers are identified with different tasks and possibilities to optimize the cost situation of an investment along the process

The CE-Invest approach has led to savings of -30% in average across industries and technologies

With our proprietary CAPEX calculation and estimation approach & software we can easily identify cost savings potentials and help our clients to realize them.

• Average savings of 30 percent realized
• Development of best practice cost base for machinery and equipment, conveyor systems, buildings, and commercial component parts
• Conclusion of various multi-year sourcing agreements with suppliers to reduce transaction cost and maintain cost level in the long term