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Help With Justification

Michela

#8365

Help With Justification | 2 December, 1999

I have been asked to do a justification for a piece of equipment. Can anyone e-mail a format or example of a complete justifictation so I don't have to recreate the wheel. Thanks

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#8366

Re: Help With Justification | 2 December, 1999

Michela: Here's an outline for you to fill in the blanks:

Policy Purpose Applicability Definitions Applicable Documents 1 Justification Of Spending 1.1 Request Preparation 1.2 Request Content 1.2.1 Summary Section 1.2.2 Capital Appropriation Request Section, consisting of: � Background discussion on how the equipment fits into the Company�s business. � Plan summary showing revenues, units processed, expenditures over the depreciable life of the equipment or the period of the lease. � Discussion of the areas of the Company that the appropriation will and will not address. � Current capabilities in terms of capital and human resources. � Financial pro forma statements over the depreciable life of the equipment or the period of the lease that detail the following: - Manufacturing cost. - Operating income. - Cash flow. 1.2.3 Supporting Documentation Section. Typical supporting documentation chapters include: � Overview on equipment, costs, and timing. � Project organization and planning. � Strategic direction and planning. � Manufacturing demand and capacity. � Equipment manufacturer search and selection. � Selected manufacturer�s information, brochures, and quotations. � Facilities plan and costs. � Support equipment and costs. � Environmental impact assessment and costs. 1.3 Review Of The Appropriation Request 1.4 Approval Of The Appropriation Request 1.5 Leases And Rental Projects 2 Monitoring Of Spending 2.1 Post Approval Capital Goods Control 2.2 Post Completion Audit 2.3 Capital Forecast 3 Records

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Larry Johnson

#8367

Re: Help With Justification | 2 December, 1999

David F you are the MAN!!!

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