How System Integrators Help Secure Capital Project Approval for Manufacturing Upgrades

A piece of equipment has gone down unexpectedly. While there’s pressure to get it repaired and running again to minimize lost production, you know the machine’s control system is outdated and due for an upgrade. This is the perfect opportunity to propose upgrading the control system while the equipment repairs are being made. 

Unfortunately, upper management pushes back. They can’t justify the unplanned capital expenditure and additional downtime required for the upgrade. 

This kind of missed opportunity is all too common in manufacturing and processing facilities. What’s often lacking in these situations is a compelling narrative that quantifies the long-term benefits of your proposal and demonstrates how it aligns with strategic objectives. That’s why a system integrator can be an important partner here. 

Building a strong business case

When developing a capital project proposal, the tendency is to focus on the final decision-makers. But the decision matrix is often more nuanced and informal, with numerous departments influencing the outcome without directly participating in the decision-making process. 

An experienced system integrator can help you identify key influencers, understand their needs and priorities, and structure your project proposal to address their needs as well. The more cross-functional value your project offers, the stronger your justification becomes.

Consider the scenario described above of the malfunctioning equipment with an outdated control system. If your proposal for the control upgrade involves a new platform or technology, the maintenance department might hesitate to support it because they want established technologies their team is familiar with. Similarly, the production manager will likely prefer the option that results in the least downtime, which is to fix the immediate equipment issue and forego the controls upgrade for now.

A system integrator can help you navigate these concerns by aligning your proposal with their priorities. 

For example, the maintenance department is more likely to get behind a project that simplifies troubleshooting and speeds repair time, while the production manager will support a project that increases uptime and throughput. Clearly communicating these aspects of the project to the stakeholders will help build support. 

The decision-makers — typically upper management and the capital procurement team — must evaluate your proposal against competing capital projects, each with its own urgency, strategic importance and long-term benefits. Therefore, it’s essential to demonstrate both the immediate and long-term outcomes of your proposal. 

How a broad, holistic approach helps make the case

A system integrator can help you take a broader view of the facility and uncover indirect needs or strategic objectives that your project supports, such as sustainability initiatives or digitalization efforts. In our example, the new control system could be tied into the facility’s manufacturing execution system (MES) to track data for performance metrics such as scrap rates or energy efficiency. 

With this more holistic view, the system integrator can help you develop a clear, detailed roadmap of your project’s tangible benefits and alignment with business objectives to aid in rallying the key stakeholders whose combined support ultimately controls the funding. The integrator can also provide guidance for long-term planning, such as future iterations of the project that generate additional cost savings. 

In the end, tying your project to specific benefits and broader company objectives positions it as a strategic investment rather than a reactive fix.

Sean J. Phillips, P.E, is senior project manager at Hargrove Controls & Automation, certified members of the Control System Integrators Association (CSIA). For more information about Hargrove Controls & Automation, visit its profile on the Industrial Automation Exchange.

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