Often, even if a company makes reducing forklift trucks a policy or initiates projects to extend the Lean process into material flow, normal capital justification documentation is still required. The capital justification must show that the project uses the company’s scarce capital more productively compared to other projects trying to win that same capital.
Each company uses its own format and approach to capital return and determines what elements are considered appropriate to be included in the justification. And each company gives different weights to what it considers objective concrete improvements versus difficult to measure, yet real, less concrete improvements.
K•Tec has worked with a number of companies, assisting them in developing business cases and capital justification.
To learn more, contact K•Tec at (440) 943-4111, and ask about Project Justification.