CAPEX
Managing your investments to stimulate growth
CAPEX optimisation: balancing costs and performance for sustainable growth
Very large-scale but low maturity Design-to-Cost projects
In a constantly changing industrial and technological environment, capital expenditure (CAPEX) is essential for business growth and competitiveness. However, managing CAPEX effectively can be a complex challenge, as it involves finding the right balance between CAPEX and OPEX. There are levers, tools, and methods (derived Design–to-Cost) to optimise the costs of very large-scale projects costing hundreds of millions or billions of dollars.
Sizing buildings to meet your exact needs by anticipating future developments
Avencore’s approach to building investments is based on precise and adaptive dimensioning, aligned with the company’s present and future needs. We advocate for a modular CAPEX, which allows for extension or adaptation without any major disruptions, ensuring maximum flexibility as the market evolves. Our design-to-construction strategies incorporate the latest innovations in sustainable and efficient construction, maximizing throughput while minimizing the initial and future costs.
Selecting the equipment that guarantees the best CAPEX-OPEX trade-off
Equipment selection requires close collaboration with suppliers from the PDS (Preliminary Design Summary) and DPD (Detailed Preliminary Design) phases to ensure the best trade-off between CAPEX and OPEX. Avencore helps its customers draw up the right specifications, evaluate the existing technologies and anticipate future developments, by choosing equipment that meets not only the current requirements but also any future needs.
Managing deadlines and risks to guarantee a successful project implementation
Meeting deadlines is a key factor in the success of Capex projects. We use proven methods such as scheduling and streamlining operations to minimize time and costs. Our approach includes rigorous planning and monitoring the project’s progress on a regular basis, to check the progress of each stage and manage the “work that still needs to be done”. We proactively identify and manage potential risks using advanced risk analysis tools. This risk management is supported by effective communication with all project stakeholders to ensure that decisions are made quickly.
Working on a collaborative platform for greater efficiency
The success of a CAPEX project involves a large number of players: project managers, project owners, suppliers. Avencore encourages people to work on a collaborative platform, uniting all stakeholders around a common vision and shared objectives. This collaborative approach is essential for efficiency and innovation, reducing friction and maximizing synergies.
- Digitalization of the supply chain to optimise purchasing and stock management.
- Predictive maintenance to reduce unplanned costs.
- Industry 4.0 to improve production efficiency and reduce operating costs.
- Digital Twin to simulate, analyse and optimise production equipment.
“At Avencore, we are convinced that CAPEX optimization is not limited to the construction phase. By conducting in-depth studies from the pre-project phase, applying rigorous “design-to-cost” principles and selecting strategic partners, we help our clients minimize costs throughout the project lifecycle, thus stimulating their growth in a sustainable way.”