Financial Concepts and Performance Indicators in WWS-Projects...
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![Page 1: Financial Concepts and Performance Indicators in WWS-Projects OperationsOperationsOperationsOperations ManagementManagementManagementManagement SupportSupportSupportSupport.](https://reader036.fdocuments.in/reader036/viewer/2022062511/55146ce0550346b0158b4e59/html5/thumbnails/1.jpg)
Financial Concepts and Financial Concepts and Performance Indicators in Performance Indicators in
WWS-ProjectsWWS-Projects
OOppeerraattiioonnss
MMaannaaggeemmeenntt
SSuuppppoorrt t
ProjectProject
Water Water Authority Authority of Jordanof Jordan
![Page 2: Financial Concepts and Performance Indicators in WWS-Projects OperationsOperationsOperationsOperations ManagementManagementManagementManagement SupportSupportSupportSupport.](https://reader036.fdocuments.in/reader036/viewer/2022062511/55146ce0550346b0158b4e59/html5/thumbnails/2.jpg)
OOppeerraattiioonnss
MMaannaaggeemmeenntt
SSuuppppoorrt t
ProjectProject
Water Water Authority Authority of Jordanof Jordan
![Page 3: Financial Concepts and Performance Indicators in WWS-Projects OperationsOperationsOperationsOperations ManagementManagementManagementManagement SupportSupportSupportSupport.](https://reader036.fdocuments.in/reader036/viewer/2022062511/55146ce0550346b0158b4e59/html5/thumbnails/3.jpg)
Financial Concepts
• Return on Investment
• Economic Value Added
• IRR, NPV, Payback
• Break-Even Charts
• Investment-, Profit- & Cost Centres
OOppeerraattiioonnss
MMaannaaggeemmeenntt
SSuuppppoorrt t
ProjectProject
Water Water Authority Authority of Jordanof Jordan
![Page 4: Financial Concepts and Performance Indicators in WWS-Projects OperationsOperationsOperationsOperations ManagementManagementManagementManagement SupportSupportSupportSupport.](https://reader036.fdocuments.in/reader036/viewer/2022062511/55146ce0550346b0158b4e59/html5/thumbnails/4.jpg)
OOppeerraattiioonnss
MMaannaaggeemmeenntt
SSuuppppoorrt t
ProjectProject
Water Water Authority Authority of Jordanof Jordan
![Page 5: Financial Concepts and Performance Indicators in WWS-Projects OperationsOperationsOperationsOperations ManagementManagementManagementManagement SupportSupportSupportSupport.](https://reader036.fdocuments.in/reader036/viewer/2022062511/55146ce0550346b0158b4e59/html5/thumbnails/5.jpg)
Return on Investment
OOppeerraattiioonnss
MMaannaaggeemmeenntt
SSuuppppoorrt t
ProjectProject
Water Water Authority Authority of Jordanof Jordan
Assets
OE
L
(Profit)
(Interest)
![Page 6: Financial Concepts and Performance Indicators in WWS-Projects OperationsOperationsOperationsOperations ManagementManagementManagementManagement SupportSupportSupportSupport.](https://reader036.fdocuments.in/reader036/viewer/2022062511/55146ce0550346b0158b4e59/html5/thumbnails/6.jpg)
Return on Investment (ROI) =
Profit + Interest
Assets
OOppeerraattiioonnss
MMaannaaggeemmeenntt
SSuuppppoorrt t
ProjectProject
Water Water Authority Authority of Jordanof Jordan
> 10 %
![Page 7: Financial Concepts and Performance Indicators in WWS-Projects OperationsOperationsOperationsOperations ManagementManagementManagementManagement SupportSupportSupportSupport.](https://reader036.fdocuments.in/reader036/viewer/2022062511/55146ce0550346b0158b4e59/html5/thumbnails/7.jpg)
OOppeerraattiioonnss
MMaannaaggeemmeenntt
SSuuppppoorrt t
ProjectProject
Water Water Authority Authority of Jordanof Jordan
Profit + Interest
Assets= > 10 %
Assets
B/E Chart
![Page 8: Financial Concepts and Performance Indicators in WWS-Projects OperationsOperationsOperationsOperations ManagementManagementManagementManagement SupportSupportSupportSupport.](https://reader036.fdocuments.in/reader036/viewer/2022062511/55146ce0550346b0158b4e59/html5/thumbnails/8.jpg)
Responsibility Accounting
OOppeerraattiioonnss
MMaannaaggeemmeenntt
SSuuppppoorrt t
ProjectProject
Water Water Authority Authority of Jordanof Jordan
![Page 9: Financial Concepts and Performance Indicators in WWS-Projects OperationsOperationsOperationsOperations ManagementManagementManagementManagement SupportSupportSupportSupport.](https://reader036.fdocuments.in/reader036/viewer/2022062511/55146ce0550346b0158b4e59/html5/thumbnails/9.jpg)
Economic Value Added :
Profit plus Interest (51) + 17
- Cost of Capital (56)
---------------------------------------------
= EVA
OOppeerraattiioonnss
MMaannaaggeemmeenntt
SSuuppppoorrt t
ProjectProject
Water Water Authority Authority of Jordanof Jordan
![Page 10: Financial Concepts and Performance Indicators in WWS-Projects OperationsOperationsOperationsOperations ManagementManagementManagementManagement SupportSupportSupportSupport.](https://reader036.fdocuments.in/reader036/viewer/2022062511/55146ce0550346b0158b4e59/html5/thumbnails/10.jpg)
Ownership and Assets Management
OOppeerraattiioonnss
MMaannaaggeemmeenntt
SSuuppppoorrt t
ProjectProject
Water Water Authority Authority of Jordanof Jordan
(1) (2) (3) (4) (5) (6)
A
OE
L
OE
L
A Rev Exp
OpeningBalance
P & LClosingBalance
State concentrates mainly on (4)“We do not need a clock (faster, harder) but a compass”
![Page 11: Financial Concepts and Performance Indicators in WWS-Projects OperationsOperationsOperationsOperations ManagementManagementManagementManagement SupportSupportSupportSupport.](https://reader036.fdocuments.in/reader036/viewer/2022062511/55146ce0550346b0158b4e59/html5/thumbnails/11.jpg)
Sensitivity Analysis of Assets
-40,00%
-20,00%
0,00%
20,00%
40,00%
60,00%
80,00%
100,00%
-50
-40
-30
-20
-10 0 10
20
30
40
50
% Variance
IRR
OOppeerraattiioonnss
MMaannaaggeemmeenntt
SSuuppppoorrt t
ProjectProject
Water Water Authority Authority of Jordanof Jordan
![Page 12: Financial Concepts and Performance Indicators in WWS-Projects OperationsOperationsOperationsOperations ManagementManagementManagementManagement SupportSupportSupportSupport.](https://reader036.fdocuments.in/reader036/viewer/2022062511/55146ce0550346b0158b4e59/html5/thumbnails/12.jpg)
Sensitivity Analysis
-5,00%
-4,00%
-3,00%
-2,00%
-1,00%
0,00%
1,00%
2,00%
3,00%
4,00%
-50
-35
-20
-5 10
25
40
% Variance
IRR
PRICE
QUANTITY
VAR.COSTS
FIXED COST
OOppeerraattiioonnss
MMaannaaggeemmeenntt
SSuuppppoorrt t
ProjectProject
Water Water Authority Authority of Jordanof Jordan