Issue link: https://iconnect007.uberflip.com/i/1415897
42 SMT007 MAGAZINE I OCTOBER 2021 Feature Interview by the I-Connect007 Editorial Team In a recent survey, about 75% of SMT007 readers indicated that their organization uses a capital expenditure plan; about 25% do not have a planning process in place. Based on this information, the I-Connect007 Editorial Team reached out to Fane Friberg to discuss capital expenditure planning and execution. With more than 35+ years of experience in supply chain, operations, manufacturing, dis- tribution, and sourcing, including small- to mid-size and Fortune 500 companies, Fane has proven success in supporting the development and execution of successful operational strate- gies. Fane's expertise is in taking the strategic business plans and converting those to clear/ concise tactical initiatives within manufactur- ing, logistics, and sourcing operations. You speak of a standard operating procedure for capital expenditure planning. Can you give an overview of that concept? Fane Friberg: Companies grow and change. Many times, with established companies, peo- ple within the organization have various meth- ods that they used in the past for the CapEx process. To that end, it is critical that compa- nies have a well-documented standard operat- ing procedure for capital expenditure projects. is document should clearly define the nec- essary steps required from proposal to imple- mentation of the project. It also helps correlate the relationship between the annual planning/ budgeting process and the standard approval cycle for such capital expenditure submissions. e complexity of the approval cycle can vary from organization to organization. For exam- ple, some organizations require a simple form completion consistent with the capital plan as part of the annual operating plan (AOP). Oth- er organizations require multiple pitch meet- ings, multiple tollgates and package submis- sions, and a finalized formal CapEx approval binder (including specific elements) that are maintained/retained consistently, and respon- sibly manage the approval of large and long- Fane Friberg on Capital Expenditure Project Planning Fane Friberg