Long-Term Investment

Decisions
Investment decision-making is
a process whereby resources
are allocated in organizations
in anticipation of future gain.
The capital investment
decision
 Identify investment opportunities
*How are projects initiated?
*Is there an incentive scheme for good
project ideas?
*How much is available to spend?
NO
Preliminary proposal

Project Development
*Preliminary project review
*Technically feasible?
*Compatible with corporate strategy?

Appropriation request

Evaluation/Selection
*What are the costs and benefits?
*What is the value or return on the project?
*What are the risks involved?

Decision and implementation

Control
*Is the project on schedule and within budget?
*What lessons can be drawn for future
investment decisions?

Idea abandoned
 Tools
Time and cost estimates
Project Planning Budgets, personnel data,
*Setting goals cash flow charts,material
*Defining the project availability details,
*Tying needs into timed engineering diagrams
project activities
Tools
*Organizing the team
Gantt charts, CPM and
PERT, milestone charts,
cash flow schedules

Project Scheduling
*Tying resources (people, money,
supplies) to specific activities Tools
*Relating activities to each other Reports describing:
*Updating and revising on regular *budgets by dept.
basis *delayed activities
*slack activities
*quality of work
completed

Project Controlling
*Monitoring resources, costs,
quality, budgets
*Revising and changing plans
*Shifting resources to meet times,
costs, and quality demands

Time Line
Before project During project
Start of project