14th International Conference on Industrial Engineering and Operations Management

Exploring the Capacity of Engineers to Perform the Capital Budgeting Function Effectively

Afia Amoa Mensah, Edoghogho Ogbeifun & Jan Harm C Pretorius
Publisher: IEOM Society International
0 Paper Citations

The primary goal of manufacturing industries is to maximise profit. This informs their choice of suitable investment projects. However, the capacity and capabilities of the personnel charged with the responsibility of advising the organisation significantly to influence the quality and profitability of the investment project. In many manufacturing industries, engineers play prominent roles in the different units of the industry, including capital budgeting. But does their basic training, as engineers, adequately prepare them for this function? The case study research strategy was adopted, using mixed methods for data collection and analysis, correlating the results with suitable statistical tools. The findings revealed that most of the engineers in the business unit perform capital budgeting using the most elementary tools. To improve their proficiency, engineers require progressive training in business and financial studies. Therefore, the researchers recommend periodic and progressive training programmes for engineers, as well as integrating the engineering staff with other personnel from the business and financial professions in the business unit of the organisation.

Published in: 14th International Conference on Industrial Engineering and Operations Management, Dubai, UAE

Publisher: IEOM Society International
Date of Conference: February 12-14, 2024

ISBN: 979-8-3507-1734-1
ISSN/E-ISSN: 2169-8767