Feasibility and design study of investment projects in metallurgy by the example of OJSC «BSW – Management Company of the Holding «BMC»

The Republic of Belarus has defined requirements for project management, which are recommended for all participants involved in project activities, and provide for the organization of a systematic approach to the development and implementation of projects involving architectural and construction activities for the construction, reconstruction and restoration of buildings and structures. Comprehensive pre-investment study of the project reduces the risk of starting an inefficient project, because in the process of developing the investment justification: the costs associated with construction and installation work are defined more accurately; engineering-geological and geodetic surveys of the territory under construction and technical conclusions based on the results of the survey of the technical condition of buildings, internal and external engineering systems of buildings are taken into account; all principal decisions are made on the supply of engineering and transport infrastructure; the project’s impact on the environment is assessed, and public discussions are held on the environmental impact assessment report with the state environmental expertise; determine the possibility and options for adjusting the parameters of the investment project, the adopted technology and architectural and planning solutions in order to improve the effectiveness of the project, if the data obtained indicate insufficient profitability of the project.This article describes the main provisions on the implementation of the pre-investment stage (development of pre-project documentation, business plan) of an investment project implemented in the metallurgical industry.

Application of the COMFAR III software package in development a feasibility study of investment on an example of technical-construction stone of the open pit Gelja Ljut

This work presents the application of the COMFAR III software package in development a feasibility study of investment. The application of this program enables an efficient analysis of investment justification and numerous variations of both input and graphic and alphanumeric output data. The methodological basis of economic analysis, used in this software package, is based on decades of experience of economists, engineers, managers, ecologists and experts from the other fields, as well as on the experience of numerous investment projects within the United Nations Industrial Development Organization. The applied methodology is the current standard in the field of economic evaluation and analysis of the industrial development projects. The software package was used on a specific example of the open pit of technical stone Gelja Ljut-Gacko, in a function of providing the concession right of this deposit for the needs of the Gacko Mine and Thermal Power Plant.

Methodical approach to determination of costs at the initial stages of the project research of gas-supply systems

The article deals with topical issues at the pre-investment stage of project design to justify decisions on the feasibility of further investment and the transition to the next stage of design - the development of project documentation. At the pre-project stage, there is often a situation when the parameters of structures have not yet been determined, and capital investments must be evaluated. Methodological approaches to determining the cost of gasification facilities and the estimated model of cost calculations at the stage of investment justification with the help of enlarged indicators that improve the accuracy and validity of calculations at the stage of pre-design studies are substantiated. It is shown that the enlarged indicators used at the stage of investment justification form the regulatory basis for determining the cost of gasification facilities, for estimating capital costs, as well as for evaluating the effectiveness of investments in the selection of project options. The object of the study adopted electrically welded steel pipes and polyethylene pipes for gas pipelines. Evaluation and forecasting of the cost of gas distribution systems in the article are proposed using regression models depending on time and diameter of the pipe. The regression dependences of the cost of steel and polyethylene pipes of all standard sizes and confidence intervals for the cost of pipes allow to estimate also possible errors of the forecast cost estimation.

THE EXPERIENCE OF COMBINED HIGH-SPEED PASSENGER AND FREIGHT TRAFFIC IN COUNTRIES OF THE EUROPEAN UNION

Objective: To determine combined traffic sections of high-speed passenger and freight trains in countries of the European Union, as well as the main reasons for organizing the combined traffic on these sections. Methods: The analysis and theoretical integration of data on combined traffic of high-speed passenger and freight trains in countries of the European Union were applied. Results: It was found that combination of types of trains on high-speed networks was not only possible but sometimes necessary. The sections of high-speed passenger and freight trains combined traffic on one rail track of European high-speed networks were detected (VSM). It was shown, that the main reasons for organization of combined traffic were passing of contour and high obstacles: such sections are often situated in crossing areas of rock mass, large water bodies and population centers; as well as investment justification in areas where passenger transport demand is inadequate or freight revenue is high enough to compensate expenditures on combined traffic organization. Practical importance: The experience of combined traffic organization at European high-speed networks might be applied at domestic VSM.

Decision-making framework for selecting ICT-based construction logistics systems

Purpose – The purpose of this paper is to discuss an integrated decision analysis framework for the investment justification of implementing alternative information and communication technology (ICT)-based logistics systems in the construction industry so as to enhance the decision-making process in selecting the best alternative. Design/methodology/approach – An integrated framework is proposed that is composed of a set of interrelated evaluation and analysis techniques that allow the identification and quantification of costs, benefits and risks involved in implementing ICT systems to mitigate problems that hinder the efficient operation of construction logistics. Such techniques include decision trees and multi-attribute decision-making under uncertainty that can be applied to the logistics planning of any new build construction project. Findings – The probabilities of providing benefits vary among the alternatives, and the probabilities will replace the uncertainties surrounding the impacts of the alternative ICT systems in addressing the identified construction logistics problems with chance events so as to estimate the expected cost of each alternative with respect to each selection attribute. Practical implications – This paper shows that it is almost certain that the analysed alternative ICT system will provide benefit because its probability of benefit is almost equal to 1. Originality/value – The framework captures the existing problems of logistics in construction process, potential solution that can address the problems through the implementation of ICT systems and the decision-making process in the selection of appropriate ICT solution. The output of the framework will help to make knowledge-based decision in selecting the best ICT system for addressing construction logistics problems.

Investigating a Process Approach on Business Cases

Strategic information technology (IT) enabled investments are among other types of IT investments, characterised by the highest level of uncertainty and the highest potential for value creation. They are often associated with product/service innovation, new business models or an enterprise-wide transformation (e.g. Enterprise Resource Planning (ERP) investment). Although these may deliver operational excellence and a competitive advantage, it is a risky endeavour with high failure rates. One of the critical factors to achieve a successful outcome is to develop a sound business case. Many organisations perceive a business case as a valuable instrument for investment justification and decision-making, yet other organisations still do not develop a business case due to insufficient knowledge. In response to this knowledge gap, Ward, Daniel, and Peppard (2008) designed a business case development process that ends on investment approval. Others scholars however call for a continuous usage of business cases throughout the entire investment life cycle. The present research responds to this call with an exploratory case study in order to identify multiple business case tasks that complement the process of Ward et al. (2008). The paper starts with a description of background literature on what constitutes a business case whereof the authors derive a new definition. The authors then set the context and structure for an initial business case process based on the contribution by (Ward et al., 2008). The findings of the exploratory case study and the initial business case process are discussed.

Justifying RFID Investment to Enable Mobile Service Applications in Manufacturing and Supply Chain

Radio Frequency Identification (RFID) technology is rapidly expanding its application area from simple inventory management to advanced location tracking and supply chain management in a wide range of industries. Because of the potential benefits gained and high investment costs incurred by RFID, firms need to carefully assess every RFID opportunity and challenge to ensure that their resources are spent judiciously. Because of the lack of analytical methods for measuring the benefits and costs, this chapter presents a mathematical model for the evaluation of RFID investment in manufacturing and supply chain. This model provides a basis for the authors’ understanding of RFID value creation and ways to build an RFID business case for an RFID investment justification.