A Post-Evaluation System
NUBS China CSR international talent development program
A post-evaluation system on fixed assets investments
Zhang Kun
GM stream, group B
M a y 2 0 1 3
A post-evaluation system on fixed assets investments
1.Background
With the development of CSR，more and more money was put into fixed assets investment, such as purchasing equipment , building new plants and so on. Due to the slide of the external market, the company will have to bear an unprecedented fund pressure that is caused by fixed assets depreciation and amortization.
Meanwhile, after the last round of the Ministry of railway reform, the railway administration will become the main body of the procurement of vehicles that exacerbate the uncertainty of the market.
In addition, the Ministry of Railways attaches great importance to product quality, and they attribute the present quality problems to the exclusive supply of some components and a lack of competition. Therefore, the Ministry of Railways are putting forward to introduce private capital into the product market that creates more fierce competitions between subsidiaries and the present & potential competitors.
Facing the internal & external troubles, CSR would better make some revolutionary changes. Since my responsibility of my job is to manage the investment projects, and I found that CSR spends nearly 5 billion RMB on fixed assets on average each year, but there hasn’t been an effective way to evaluate whether the previous projects were worth the money or whether they reached their initial purposes. This essay may offer you a new way of thinking about post evaluation being as important as previous analysis and argument. CSR can reduce the operational risk by building such an evaluation system to keep stable development all the time.
2.Fixed Assets
When mentioning fixed assets, it generally refers to something that an enterprise can use more than one year, such as real estate(houses,
A post-evaluation system on fixed assets investments
Zhang Kun
GM stream, group B
M a y 2 0 1 3
A post-evaluation system on fixed assets investments
1.Background
With the development of CSR，more and more money was put into fixed assets investment, such as purchasing equipment , building new plants and so on. Due to the slide of the external market, the company will have to bear an unprecedented fund pressure that is caused by fixed assets depreciation and amortization.
Meanwhile, after the last round of the Ministry of railway reform, the railway administration will become the main body of the procurement of vehicles that exacerbate the uncertainty of the market.
In addition, the Ministry of Railways attaches great importance to product quality, and they attribute the present quality problems to the exclusive supply of some components and a lack of competition. Therefore, the Ministry of Railways are putting forward to introduce private capital into the product market that creates more fierce competitions between subsidiaries and the present & potential competitors.
Facing the internal & external troubles, CSR would better make some revolutionary changes. Since my responsibility of my job is to manage the investment projects, and I found that CSR spends nearly 5 billion RMB on fixed assets on average each year, but there hasn’t been an effective way to evaluate whether the previous projects were worth the money or whether they reached their initial purposes. This essay may offer you a new way of thinking about post evaluation being as important as previous analysis and argument. CSR can reduce the operational risk by building such an evaluation system to keep stable development all the time.
2.Fixed Assets
When mentioning fixed assets, it generally refers to something that an enterprise can use more than one year, such as real estate(houses,