The 2023 capital proposal requested ₹8.4 crore for a new laboratory rig, with ₹1.7 crore annual operating expense. The operating case showed 3,600 nominal available hours against 3,200 hours of forecast annual demand. On those totals the asset looked comfortably occupied. The schedule revealed that 900 hours of the proposed work fell into the same six-week window, when the rig could supply only 480 hours under the stated operating plan. Annual capacity did not remove that 420-hour peak gap.
The business head wanted the purchase approved before a supplier's quoted slot expired. Finance wanted a credible utilisation case, and delivery leaders were concerned that client test windows could not simply be moved. I asked for the schedule to be treated as part of the investment proposition, including staffing, maintenance and the conditions under which work could be shifted. A large annual opportunity was not the same as a set of jobs the proposed asset could actually serve.
We deferred the purchase and accepted a smaller first-year programme using 1,600 hours of reserved external laboratory capacity at ₹1.3 crore annual fee, with defined windows. The remaining 1,600 hours of prospective work were not committed under that programme. The external arrangement had its own limits and did not establish that every future peak could be served. Nor did I subtract its annual fee from the proposed capital cost and report the difference as a saving; ownership, recurring expense, service scope and time periods were different.
The decision delayed the ambition to own the capability and reduced the programme we could offer immediately. It bought a clearer view of demand without committing the company to an asset whose peak case was still unresolved. I would plot customer windows before using an annual utilisation percentage in the first capital paper. Capacity exists in a particular place and period with particular people and constraints. The board should see that operating shape before the headline hours turn a forecast into apparent certainty.