1. SEE THE ASSETS
Where is capital employed?
↓
2. SEE THE CASH
Which assets create too little cash?
↓
3. MAKE ONE DECISION
RAISE CASH PRODUCTIVITY BEFORE ADDING ASSETS
↓
4. TOP 3 ACTIONS
Increase Turns
Increase Utilization
Avoid Unnecessary Capex
↓
5. PROVE THE CASH
€ released
€ generated
€ protected
↓
6. STANDARDIZE
New replenishment rules
New maintenance rules
New utilization thresholds
New capex rules
↓
7. REPEAT
Across:
Customers → Depots → Plants → Regions
↓
8. COMPOUND FCF™
The 5 Critical Industrial Gas Asset KPIs
I would make these the board-level metrics:
1. CASH / ASSET
How much FCF does each € of asset generate?
2. TURNS / ASSET
How often does the asset create customer value?
3. UTILIZATION
How much available capacity produces value?
4. COST / DELIVERY
How efficiently does the asset system serve the customer?
5. CAPEX AVOIDED
How much new investment can better asset management prevent?
The Strategic Shift
OLD
Demand grows
→ Buy more assets
→ More capex
→ More depreciation
→ More working capital
NEW
Demand grows
→ Improve utilization
→ Shorten cycle
→ Raise turns
→ Use existing capacity
→ Add capex only when proven necessary
ASSET PRODUCTIVITY FIRST. CAPEX SECOND.
RapidKnowHow® MASTER FORMULA
ASSET
→ UTILIZATION
→ CUSTOMER VALUE
→ REVENUE
→ MARGIN
→ CASH CONVERSION
→ FCF
→ REINVESTMENT
→ MORE PRODUCTIVE ASSETS
→
SUSTAINED COMPOUNDING FCF™
The strongest Industrial Gas principle is therefore:
DON’T MANAGE ASSETS AS THINGS YOU OWN.
MANAGE THEM AS CASH ENGINES THAT MUST PRODUCE CUSTOMER VALUE 24×7.
