The proposition of this dissertation is that superior capital budgeting solutions can be attained by not only analyzing projects individually but rather as part of a portfolio of projects that has the objective of maximizing the company’s range of multiple objectives, not only the economic benefit. The dissertation starts with a detailed study of current techniques and an assessment of flaws and shortcomings. This study concludes with the requirements that any new approach or model must address in order to improve on the current practices. Based on these requirements, a new model is developed based on the portfolio approach that integrates all the assumptions, constraints, project and variable interrelationships. An important feature of the model is that it selects its portfolio of capital projects in such a way that it optimizes support for the company’s multiple objectives, not only the economic objective. The dissertation concludes with the application of this model to a hypothetical case. It is concluded that, by developing and using this model, a company can improve the analysis required before capital budgets are finalized.
Dissertation (MEng (Industrial Engineering))--University of Pretoria, 2006.
Viljoen, P.J.(Southern African Institute for Industrial Engineering, 2005-11)
The objective of management accounting is to provide management with the financial information that will enable them to make decisions that will result in increased profitability of their organisation. The management ...
De Klerk, Schalk Willem(University of Pretoria, 2007-08-03)
The project portfolio management process is characterised by a series of stages and gates where a project needs to pass the set criteria at that given point in order to continue to the next phase of the process. In this ...
Leonard, A.C. (Awie); Swanepoel, A.(Association for Professional Managers in South Africa, 2010-09)
Project portfolio management could be regarded as one of the most comprehensive ways of managing a software project
environment. To implement such a management approach in a large organisation, could also be seen as an ...