6 Steps to Maximize Capital Efficiency in Chemical Manufacturing (Part 3) - Continuous Planning
Many organizations approach capital planning as an annual event. However, a plan that was approved three months ago may require significant changes due to unforeseen circumstances, such as emergent work, regulatory changes, cost overruns, and schedule slippages. In today’s business environment, there is mounting pressure on organizations to be able to adapt and justify their plans quickly and continuously. A continuous planning process provides the ability to compare planned versus actual performance, enabling organizations to understand the variances between budgeted vs. actual costs, and expected vs. actual benefits delivered. This, in turn, allows organizations to dynamically re-optimize the plan and redirect available resources to the projects which deliver the most value.