Assessing Capital Investment Projects | SIMUL8 Simulation Software

SIMUL8 use cases  

Take the guesswork out of capital investment with simulation

Be confident that capital investment will have the desired impact with simulation

Investing in processes, technology and people is essential for generating demand, capitalizing on new opportunities and delivering better customer experiences. But with so many factors and risks to consider, deciding where and how to invest and assessing the potential return can be daunting.

Simulation is a proven decision-making tool for assessing the validity and return of capital investment - before investing time and money.

Organizations need to know...

When it comes to capital investment, you'll have many questions that need to be answered.

What are the long-term implications?

Major investments will have an impact over a long time span, influencing a company’s future growth. But with uncertainty around the future, it can be difficult to predict the likely return of investment projects.

What are the risks and costs?

Investments like constructing a new manufacturing plant or expanding a hospital ward will carry high financial risks. Decisions to invest in fixed assets like these will also require large ongoing running cost commitment.

Can we make a business case for investment?

When putting a business case for investment together, effectively communicating the benefits of proposals to stakeholders through in spreadsheets or presentations alone can be challenging.

"SIMUL8 allows us to run experiments on our business processes before we implement them, saving time, investment and effort in change management. The bang for the buck is astounding."

Ashton Chevallier, Analyst, Cisco Systems Ltd

Why use simulation to assess capital investment opportunities?

Make confident, evidence-based investment decisions.

Measure the long-term impact of investment

With simulation, you can run 2, 10 or even 100 years into the future of your project in seconds. This provides insight to make stronger, confident investment decisions now - instead of when it could be too late to change the outcome.

Other approaches to planning capital expenditure projects could miss unforeseen risks, costs or impacts on other aspects of your business. Simulation helps highlight issues like these ahead of implementation.

Understand the effects of variability on investment

Other analysis tools, such as spreadsheets, can effectively model static scenarios but how can you assess the potential impact of variability – like changing customer demand or socioeconomic factors – on investment projects?

Only simulation is capable of incorporating the randomness and variability that occurs in real-world systems, allowing you to fully stress-test their impact on investment projects.

Reduced risk and cost than real life experimentation

Experimenting in the real world carries a range of risks. As well as capital expenditure, like hiring new staff or purchasing new equipment, there are also risks associated with the consequences of these decisions.

Using simulation, financial cost metrics such as capital, usage costs per station or labor costs can be tracked and the affordability of investment options can be thoroughly assessed.

Success stories from our community

Organizations worldwide use the power of SIMUL8 to make stronger, informed decisions when evaluating the benefits of capital investment.

Why use SIMUL8 to assess capital investment?

SIMUL8 includes a range of features that specifically focus on the financial results of your process.

Taking into account factors such as the expense of equipment, staffing rates or the return generated per work item, you'll get an accurate breakdown of the costs and revenue for any scenario. This helps you to make stronger, informed decisions for evaluating the benefits of investment and reinforces stakeholder confidence in the ability to deliver a successful project.

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