Feel the cash flow
Companies are expected to turn investments into assets. Assets under construction (AUC) represent the cumulative value of corporate spending on capital items that aren't yet producing revenue. This article follows recent initiatives to reduce AUC by means of a just-in-time capital program at the Vancouver, British Columbia-based company, TELUS Communications Inc. The project started by gathering historical AUC data, and identifying those elements that were the biggest contributors to AUC. Working closely with vendors, company procurement practices were changed in order to utilize bulk ordering and stagger material delivery to job sites in accordance with just-in-time principles. One of the useful communications tools that was a major factor in creating enterprisewide buy-in was an online manual that explained and explored AUC minimization methods based on just-in-time principles.