GGC Operating Cash Flow Model

GGC Operating Cash Flow Model

This combination of two Excel® workbooks provides detailed economic operating profitability information on GGC’s operations. Specifically covered are their Chlor-alkali, VCM, PVC, Compounding, Profiles (Royal Group), Cumene and Phenol/Acetone operations. All parameters are flexible, so input prices, transfer prices, and operating rates can be adjusted and run straight through to the total the operating cash flow for GGC’s businesses. These are very detailed models including factors like the cost contribution from cogeneration and estimates of sales segmentation of caustic soda and PVC, with differences in pricing.

Further analysis is included in the form of a cash flow table that integrates GGC’s product transfer balances, purchasing requirements and sales. Users have the flexibility to change input prices, sales allocation and operating costs. A built-in Excel VBA macro can then optimize all of GGC’s production, simultaneously, based on prices, costs and operating rates…finding the optimal mix to maximize cash flow.

A simultaneous price simulation tool is included in a second workbook. This tool uses VBA to perform Monte Carlo Simulation, varying the prices of all key inputs and products at once within user defined ranges. The tool then optimizes GGC’s operations to maximize cash flow. A simple Value at Risk is automatically calculated based on the simulation results. The workbooks are clear and intuitive, yet very powerful, providing continuing value to users.