KSB Company Investment Project Decision Making Analysis

Because of the world economy keeps the downturn. At the same time, the enormous pressure of the cost competitiveness and the increase of customer’s quality requirements make a lot of companies start to seek a breakthrough of the development of company. As one popular method of improvement of core competitiveness, using the investment of new equipments and new technologies to enhance the product competitiveness becomes the main choice of many companies. There are many impact factors and investment analysis methods for equipment investment project which make the investment project become much more complicated. How to make the investment much more valuable and how to make the right choice become the main problem in the investment evaluation phase for the companies. A lot of useful researches are done around the world. Also much experience is shared for the improvement of decision-making analysis. In this paper, OMEGA large CNC boring and milling machining center investment project of KSB Shanghai as a sample investment project is discussed for the study, the theoretical knowledge and latest research achievements around the world are discussed in this paper. The paper first analyzes the current problems and difficult points in the project decision-making and also summarizes the investment effect factors of the investment. Then separating the OMEGA large CNC boring and milling machining center investment project into two phases and create the feasibility analysis system and the multi-factor decision analysis system. Using the real project analysis to give the methods for feasibility analysis and multi-factor decision analysis and create a analysis template of the investment decision-making of the operational level to give a clear idea of how to apply in the real investment analysis and decision-making. Hope it will be helpful for the companies which are faced with hard decision-making of the investment projects to find a way to solve the problem.