The context of the solution is the position of a project manager in a large international company, which is considering to invest on a plant to produce chemical X for the company’s internal use. But before the project can start, an investment proposal needs to be created and a simulation of the design, construction and operations of the plant for 10 years needs to be implemented to convince the management board about the feasibility of the investment.
- Identify the main cost elements in an industrial investment project.
- Understand the importance of product life-cycle costs and operational expenditure (OPEX) when determining the profitability of an investment.
- Understand different phases and tasks in an industrial investment project.
- Identify and manage typical risks in an industrial investment project.
- Understand the business implications of decisions made during the project.
- Advanced project management skills
- Project cost management skills (estimation, budgeting)
- Project controlling skills (particularly Earned value management skills)
- Investment calculation/capital budgeting skills
- Industrial investment project planning skills
- Project risk management skills
Master level or MBA students
Group work assignment to prepare an investment proposal, presentation of the proposal & feedback, game session, de-briefing session and/or final report. Can be implemented fully on-line or combined with classroom teaching.