A Capital Project Portfolio
Management Transformation

A Capital Project Portfolio
Management Transformation

A Capital Project Portfolio
Management Transformation

CASE STUDY: HEAVY MANUFACTURING

Project Summary

In the Aluminium industry, our client requires effective capital project portfolio management to both sustain current operations and invest in new technologies. This encompasses choosing between investments in new plant and equipment or maintenance and replacement of existing assets—an integral part of their broader asset management strategy. Driven by the need to optimize their capital allocation decisions and drive operation efficiencies they sought a seamless and more deeply SAP-integrated solution. This case study explores their journey to maximize their return on capital employed, deploy technological innovation for sustained competitiveness, and attain operational excellence.

Project Summary

In the Aluminium industry, our client requires effective capital project portfolio management to both sustain current operations and invest in new technologies. This encompasses choosing between investments in new plant and equipment or maintenance and replacement of existing assets—an integral part of their broader asset management strategy. Driven by the need to optimize their capital allocation decisions and drive operation efficiencies they sought a seamless and more deeply SAP-integrated solution. This case study explores their journey to maximize their return on capital employed, deploy technological innovation for sustained competitiveness, and attain operational excellence.

  • Challenges

    • Fragmented processes relying heavily on manual intervention
    • Manual workflow administration and routing
    • Reliance on spreadsheets
    • Manual SAP integration
    • Inconsistent user experience
    • Key person dependency risk

  • Outcomes

    • Faster approval cycles
    • More confident executive decision making
    • Enhanced productivity
    • Improved transparency and control

  • Solution

    • Implementation of IQX CAPEX for SAP Fiori including the following applications: Budget Request, Annual Business Planning, Capital Expenditure Request, Project Status Change, Asset Creation, Project Completion and Program Analytics
    • Integration of OneList Approvals to enable simplified mobile approval
Capital Project Type
Workers working with aluminium billets - capital project

Review 6 Challenges Faced

Solution Overview: Including Fiori Apps

Business Benefits Achieved

Overcoming Six Capital Project Portfolio Management Challenges

There were six pivotal challenges faced by our client, each representing a crucial turning point on their path to successful CPPM transformation.

Fragmented Processes: The disconnected, spreadsheet-based process was disjointed and disconnected and relied heavily on manual integration between process steps and systems.

Manual Workflows: Administering approval workflow routing was time-consuming leading to bottlenecks and delays, and failed to maintain an readily-accessible audit trail.

Data Inconsistencies: Reliance on spreadsheets as data sources incurred a significant risk of data inconsistencies, which hindered decision-making and project management.

Manual Data Entry: Manual data entry was time-consuming and error prone, limiting the controller’s availability to partner more closely with the business to evaluate projects.

User Experience: Simplifying and standardizing the user experiences through all steps of the CapEx process from budgeting to project completion to improve productivity and reduce training and error rates was a priority.

Key Person Dependency: The legacy process was highly dependent on key resources to administer the process, and a key objective was to increase process resilience and efficiency.

These challenges collectively prompted our client to seek a comprehensive solution for transforming their Capital Project Portfolio Management practices.

Proposals: Departments create “Wishlists,” or informal proposals to help guide the creation of the annual CAPEX budget.

Formal Requests: Departments compile detailed capital expenditure requests (CER) which cover the business case for the expenditure in more detail. These requests may require multiple levels of approval.

Supplementary Requests & Revisions: Once a project is approved, the requesting department may need to ask for additional funding or reforecast future expenditures.

Capitalization: When the project is complete, the costs accumulated are settled to a fixed asset. Unused budget can be reallocated.

Investment Review: The project’s level of success is evaluated to inform future investments.

Monitoring: The portfolio and individual projects need to be monitored, collecting reliable data to take mitigating/corrective action if needed.

Streamlining Success: The Solution Overview

The strategic implementation of IQX CAPEX was instrumental in reshaping how our client managed capital projects and investments. This comprehensive solution offers a selection of SAP Fiori applications designed to meet project needs, streamlining critical aspects of CapEx management. IQX CAPEX addressed all our client’s challenges, delivering improved efficiency and more confident decision-making while mitigating the inherent risks of the legacy process.

Here are the key components of the final solution:

  • Selection of SAP Fiori Applications: Our client harnessed the power of IQX CAPEX, adopting the ready-to-run SAP Fiori applications they needed. These Fiori applications were tailored to align seamlessly with the organization’s specific CapEx needs, covering critical aspects including budgeting, expenditure approval, project milestone tracking, project completion and project portfolio analytics.

  • Seamless Integration: The integration of SAP Fiori applications with our client’s existing systems played a pivotal role in the transformation. This integration automated the flow of data, resulting in streamlined workflows and an overall improvement in CapEx management efficiency.

  • CAPEX Approval in OneList: In addition to the SAP Fiori applications, our client included OneList Approvals. OneList provides executives with a consistent approval experience for all CapEx and other approval tasks, on any device. This integration was a key enabler in enhancing the timeliness, efficiency and confidence of approval decisions.

Through the implementation of these vital components, our client successfully navigated and overcame the challenges they had outlined in their CapEx management practices.

Detailed Overview of SAP Fiori Applications used in this Project

The key SAP Fiori apps deployed in our client’s CapEx transformation project included:

  • Wishlist Appropriation Request App: This app enables line managers to submit their funding requests for new initiatives or asset replacements.

  • Annual Business Planning App: This app allows the CapEx committee to optimize the budgeted project portfolio within funding constraints.

  • Capital Expenditure Request App: This app supports the approval of capital expenditure in accordance with delegation of authority polices. On approval, projects are automatically created in SAP, with project milestones and budgets assigned.

  • Budget Reallocation & Substitute Projects App: This app supports budget transfers within and between projects and the return of surplus budget.

  • Forecast Request and Approval Apps: Future expenditure is tracked, with automatic updates to SAP planning versions.

  • Project Status Change App: Project status changes are initiated, ensuring successful passage through stage gates and updating of project milestones.

  • Asset Creation App: Automates fixed asset creation and the update of project settlement rules.

  • Process Monitoring Apps:  Provide status overviews of the approval statuses for all CapEx process apps facilitating efficient follow-up and reassignment as required.

  • Program and Project Analytics Apps: Offer insights into Budget, Actuals, and Open Commitments by responsibility area and project, along with in-depth project performance analysis.

Unlocking the Benefits of Enhanced Capital Project Portfolio Management

The journey towards effective Capital Project Portfolio Management (CPPM) resulted in a multitude of benefits for our client. By placing planning, resource allocation, and data-driven decision-making at the forefront, the organization achieved the following valuable outcomes:

Streamlined Operations and Workflow Efficiency

  • Seamless integration of IQX CAPEX applications created a cohesive technological landscape.
  • Workflow improvements and data consistency enhancements fostered operational excellence.

Empowered Teams for Enhanced Productivity

  • User empowerment initiatives ensured teams harnessed the full potential of the CPPM system.
  • Equipped with data-driven insights, teams streamlined project processes and decision-making, resulting in heightened productivity.

Stakeholder Satisfaction and Future Innovation

  • Key stakeholders expressed appreciation of the system’s performance and capabilities.
  • User satisfaction validated the project’s success and laid the groundwork for future innovation and excellence within the organization.

Key Success Factors

  • Data-driven decision-making guided the project, ensuring alignment with objectives.
  • Streamlined collaboration among project teams enhanced overall efficiency.
  • Expedited approvals were achieved through agile workflows and efficient communication channels.
  • Robust audit trails validated compliance with procurement policies.
  • Centralizing all budgeting, actual and forecast data in SAP eliminated spreadsheet redundancy and maintained data integrity.
  • Deep integration with SAP streamlined operations freed-up administrative staff to focus on more high-value tasks.
  • The consistent and intuitive user-interface boosted user satisfaction and productivity.

This case study showcases the impact of strategic CPPM system implementation, ushering in improved project management, streamlined processes, and increased operational efficiency.

About IQX Business Solutions

Offering the leading integrated CapEx solution for SAP, IQX Business Solutions empowers organizations to excel in their environmental, social, and governance objectives while optimizing human and financial capital investments. Our solutions, tightly integrated with the SAP Business Technology Platform and SAP enterprise applications, leverage reliable data, expert advice, and strategic insights. Our flagship product, IQX CAPEX, offers unmatched flexibility and customization in managing the entire capital expenditure process. Tailored to the unique needs of finance teams globally, IQX CAPEX ensures efficient and effective CapEx management from ideation to project completion, delivering tangible return on investment.

IQX Team in office setting discussing a capital project

About IQX Business Solutions

Offering the leading integrated CapEx solution for SAP, IQX Business Solutions empowers organizations to excel in their environmental, social, and governance objectives while optimizing human and financial capital investments. Our solutions, tightly integrated with the SAP Business Technology Platform and SAP enterprise applications, leverage reliable data, expert advice, and strategic insights. Our flagship product, IQX CAPEX, offers unmatched flexibility and customization in managing the entire capital expenditure process. Tailored to the unique needs of finance teams globally, IQX CAPEX ensures efficient and effective CapEx management from ideation to project completion, delivering tangible return on investment.

IQX Team in office setting discussing a capital project

About IQX Business Solutions

Offering the leading integrated CapEx solution for SAP, IQX Business Solutions empowers organizations to excel in their environmental, social, and governance objectives while optimizing human and financial capital investments. Our solutions, tightly integrated with the SAP Business Technology Platform and SAP enterprise applications, leverage reliable data, expert advice, and strategic insights. Our flagship product, IQX CAPEX, offers unmatched flexibility and customization in managing the entire capital expenditure process. Tailored to the unique needs of finance teams globally, IQX CAPEX ensures efficient and effective CapEx management from ideation to project completion, delivering tangible return on investment.

Choose IQX for Your CAPEX Management Transformation

IQX CAPEX is an end-to-end, flexible and customizable CAPEX process solution. We are the leading SAP-based capital expenditure solution on the market, delivering an immediate ROI to finance teams around the world.

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