WORKSTREAM: CAPEX APPROVAL

 What is the intention of the workstream? To ensure CAPEX is approved in Marlin when the project network dictates
based on asset lead-times and launch timing. This is achieved by identifying and engaging the Marlin approvers for a particular
project before submission so they can rapidly approve once in system.
 What is the target time savings/avoidance? What does this deliver to the e2e innovation cycle time in terms
of improvement? Delays in CAPEX approval can vary depending approvers’ knowledge of the project. The intent is to drive
approvals to less than one week and ideally 24-48 hrs. after submission to Marlin.
 Where are we today and what are the milestones to achieve targets? What else is required to clarify? We
have a process that can be rolled out to BPC and HC but are also piloting select projects in both divisions over the coming
months to ensure the process is intuitive and that engagement with Marlin approvers is conducted as expected.
 What is it that will be done differently to improve our cycle time (supported by One Pager if we have one
already) Interviews with cluster planning and engineering directors indicate engagement with Marlin approvers early results in
a very high success rate of fast approvals. We are formalizing the process and in time will include the steps in the standard PMO
network. The workstream one pager and proposed process flow follows.
 Any challenge in meeting targeted timings? Where can Bish / Leadership help? Land the message with cluster SC
WL4 that the process is being formalized and that project teams should follow protocol in order to avoid unnecessary delays.
APPENDIX
ONE PAGER:
CAPEX – STAKEHOLDER ALIGNMENT FOR FAST APPROVAL
 What is different to current? A formal process that requires multi-point connections with both project stakeholders and Marlin
approvers in advance of Marlin submission to ensure quick approval

 Timing improvement: The improvement will be variable but should allow for more consistency of approving CAPEX than what is
experienced across HPC today. It’s critical that for projects that require CAPEX, Marlin submission and approval occurs when
the project network requires it based on asset lead times.

 Stakeholders: Engineering, Strategic Planning and Finance. WL3-4 depending on approval limits.

 Risks: There are no risks to implementing this process. We expect risk of delay in approvals will be mitigated by ensuring that
Marlin approvers for a particular project are known in advance and confirmed leading up to Marlin submission.

 Scenarios when NOT to be deployed: The process should be used for all Marlin submissions. For projects to be classified as
SPEEDO, we may recommend a limit of expected CAPEX (for example <500k) to ensure fastest possible approval

 Positive examples: There are many examples across HPC where simple pre-Marlin alignment with approvers (business case,
potential labilities etc.) enables rapid approval even when submissions total in the millions of Euros.
Active capital approval management

Identify Marlin
capital
approvers
Insight Unlock

The individuals involved in approval of Nominate person(s)

to actively engage
capital in Marlin are frequently not the with approvers early
same or even a sub group of the identified in the project and
throughout its
project stakeholders. As a consequence, progress
when the capital proposal enters the Actively advise
Marlin system these approvers are approvers when
the CP is due to
frequently unaware of the project context go into the
and need to be informed. This alignment system
Actively review via
can lead to delays as their individual Marlin approval
requirements are addressed. status warning each
approver once the
predecessor has
taken action.

This assumes the non-Marlin Stakeholders (GCLT/CCBT) are aligned prior to the capital proposal being entered into Marlin
 Active capital approval management
What needs to work better:

Stakeholder alignment of benefits from both a

Supply Chain and Finance POV is challenging
What works well today:

All projects >€500k that require WL4+ approval The Table of Authority needs to be maintained on
are discussed before the Capex is in Marlin a periodic basis

Enough time should be allocated for stakeholder

Approval in Marlin is just a “click” and is usually alignment prior to capital proposal being put into
done within 24 hours Marlin

Aligned preparation of the data going into the BC Projects should not be put into Marlin until all
between functions and geographies available information, with associated business
case, is available*

Actioning the person (who is this?) to brief the Non-Marlin (Project Stakeholders must endorse
stakeholders/approvers and to then confirm this capital expenditure prior to the capital proposal
briefing has been done being entered into Marlin

*For a fast/super fast track project we cannot have the same accuracy in business case/risks/liabilities as we do when we have full PDL, inputs from countries etc. We must define
the parameters wherby approvals must be given with less than full information perhaps with sensitivities built in
NEW PROJECT WITH CAPEX Process Start / Decision Tool
CAPEX PLAN RECONCILIATION Flow Key: End point Point
Steps
used

Brand issues For SPEEDO

Marketing

preliminary projects this Prepare final GATE

Project
Leader
scope, volumes exercise must DOCUMENT for
to RD, SCP, start prior to approval by
Engineering BOSSCARD CCBT/GCLT
TPL/Process

RD provide initial formula,

/Pack
RD

process, pack scope, including

need for new moulds, C/P

and/or
Category
Planning

Project should only

Planning Lead sends move ahead as
CAPEX ALIGNMENT TOOL SPEEDO if CAPEX
to: funding is available at
Category and Cluster Category SC VP, Dir BOSSCARD
Cluster SC VP, Dir
Planning align on probable Asking for confirmation
sourcing site
Planning

that CAPEX budget exists

Cluster

YES
Supply Chain

Engineering
Division

Division and Cluster CAPEX NO Cat. And Cluster SC

VP’s reconcile CAPEX
Engineering define ‘order of Available
budget with GCLT,
magnitude’ Capex estimate ? CCBT, respectively
Engineering
Cluster

6
NEW PROJECT WITH CAPEX Process Start / Decision Tool
BUDGET APPROVAL TO MARLIN SUBMISSION Flow Key: End point Point
Steps
used

Marlin – 3 months Marlin – 1 months Marlin

Marketing/

Brand issues
Project
Leader
PMO

APPROVED
BOSSCARD

Product Design
Category project team builds Lock
TPL/Process

project network with PMO.

/Pack
RD

Marling Submission date

identified based on asset
lead-times
Category
Planning
Supply Chain

Define Table of Authority

Planning

Confirm ToA.
Cluster

approvers based on initial

CAPEX estimate. Sets STAGE STAGE 1 Sets STAGE 2
1 STAKEHOLDER ALIGNMENT Stakeholder ALIGNMENT
STAGE 2
Alignment – Stakeholder
GCLT, CCBT, Alignment –
SUBMIT final
Engineering

ToA GCLT, CCBT, CAPEX INTO

Cluster

Cluster Engineering defines Cluster Engineering ToA

defines MARLIN MARLIN
+/- 30% Capex estimate Alert ToA to
GRADE Capex estimate
APPROVE

Prepare initial Prepare ‘GO’

Manager
Finance

Finance

project Business Project Business

Case Case