A new machine, extending the unit, taking on extra staff: decided one at a time as they present themselves as immediate needs, these choices tend to answer the urgency of the moment rather than any overall view of the resources available.
The advantage of an annual view
Looking at the start of the year across all the possible investments, rather than deciding each in isolation as it arises, lets you compare them and choose which to prioritise on expected benefit and actual capital available, instead of chasing each urgency separately.
Separating necessary from opportunistic
Some investments are necessary to keep operating — replacing a machine that has become inefficient — while others are growth opportunities that could be deferred without immediate harm. Making that distinction explicitly helps avoid confusing perceived urgency with genuine strategic priority.
Leaving room for the unforeseen
Planning too rigidly, allocating every available euro to investments already decided, leaves no room for opportunities or needs that emerge during the year. Holding back a margin of flexibility avoids having to pass on an unexpected opportunity for want of free resources.