CAPITAL: Fit/Form Criteria for Rate Comparisons
Capital Category Example
Capital Category Construction Projects Example
- The comparable projects must have a like for like project scope (similar installation work)
- When comparing construction projects with different area (square feet/meters) - productivity should be calculated using a % reduction in cost per square footage/sqm and apply the reduction % over the current year spend – example on next page
See Excel table here.
Construction Projects - Savings based on Square Feet/Meters (Continued)
See Excel table here.
Capital Category pre-Buy Example
[ Estimated non-preBUY unit cost (assumes a % upcharge) ] - [ preBUY unit cost ] X units purchased
If there is no comparable baseline from prior 2 years (purchase of similar fit, form & function of equipment within same Sector) paid at full price (without preBUY discount) - this should be recognized as Other Value Savings, not Productivity.
Capital Category - Asset Sales
Complication
- Asset Sales, scrap value and salvage are not typical levers of productivity and does not fit the framework.
- The Capital team drove value by selling our equipment at the best price possible to provide optimal benefit to PepsiCo
All Asset Sale projects must be reviewed with Global Ops Procurement Finance for approvals
Approvals will be provided on a case-by-case basis