Capital Planning with EcoSys

Introduction

EcoSys provides a single repository for project controls information, allowing the storage, comparison and analysis of budget, commitments, actual spend, progress and forecasts across the entire corporate project portfolio. It is only natural, therefore, that EcoSys be an ideal environment to manage the capital planning process.

Building a Strategy

The first step in any capital planning process is to determining the candidate projects and initiatives that the organization would want to implement with unlimited funds and resources. Creating this candidate list, adding ratings, priorities, return on investment and risk mitigation in EcoSys allows you to build out a list of priorities for future projects and, at the same time, see the impact of “inflight” projects on available resources.

Modelling Your Portfolio

EcoSys makes it easy to build out time-based estimates for each potential project, turning a single idea into a high level cost model. Advanced tools enable you to define the spend profile for the entire project, or phases and summary work packages, automatically spread across a specific time window.

EcoSys will then let you move projects, and their associated cost profiles, in time to provide a “cost leveling” capability, built directly on your existing commitments. You can move, squeeze, or stretch projects, pushing them above or below the cut off until you have a project portfolio that fits within your expected funding.

Planning Major Assets

You can also add major, high cost, long lead time resources to the high level projects to see if any additional assets will need to be procured or planned for, and how they would affect capital expenditure. You can model the need for existing facilities, resources, and equipment to see if they can support the portfolio, identifying “hidden” costs for projects that require an increase in capabilities.

A Foundation for Total Project Management

Modeling your portfolio in EcoSys means that once you have decided on the go forward projects from your portfolio of candidates you and build out the estimates and budgets, create bids and contracts, and plan out the detailed work while never loosing visibility to the original rationale for the project.

You can constantly compare your project forecast against the estimated timeline to see where the realities of the project execution impact the overall portfolio and identify potential financial issues, and the need for additional funding, before sunk costs make the decision to move forward a “foregone conclusion”.