Cycle time in days to approve a capital project

This measure calculates the number of days it takes to approve a capital project. A capital project is an undertaking that is planned and approved to construct or purchase a capital/fixed asset to be used in the normal course of business and which will be capitalized over a given period once the asset is put into service/production. This measure is a Cycle Time measure that helps companies analyze the duration of the "perform capital project planning and approval" process from beginning to end.

Benchmark Data

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Measure Category:
Cycle Time
Measure ID:
100586
Total Sample Size:
307 All Companies
Performers:
25th Median 75th
- 30.0 -
Key Performance Indicator:
No
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Compute this Measure

Units for this measure are days.

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Cycle time in days to approve a capital project

Key Terms

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Cycle time is the total time from the beginning of the process to the end. This includes both time spent actually performing the process and time spent waiting to move forward.

Measure Scope

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Cross Industry (8.0)

  • 9.4.1.1 - Develop capital investment policies and procedures (10844) - Creating procedures and policies to follow for investing in capital projects. Create rules and regulations regarding large investment plans, which require in-depth forecasting for expenditure and revenue.
  • 9.4.1.2 - Develop and approve capital expenditure plans and budgets (10845) - Creating budgets, and soliciting approvals for capital projects. Prepare budgets for projects that require heavy investments. Secure approvals from management.
  • 9.4.1.3 - Review and approve capital projects and fixed-asset acquisitions (10846) - Evaluating and supporting capital investments in projects and fixed assets. Confirm details of capital projects. Secure approvals from managements for large investments.
  • 9.4.1.4 - Conduct financial justification for project approval (10847) - Reviewing all project business cases in order to substantiate projected financial gains. Validate any project's business case. Juxtapose the benefits derived from moving a project forward against the associated costs.