Parsaei / Sullivan / Hanley Economic and Financial Justification of Advanced Manufacturing Technologies

1. Auflage 2013
ISBN: 978-1-4832-9135-2
Verlag: Elsevier Science & Techn.
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, Band Volume 14, 320 Seiten, Web PDF

Reihe: Manufacturing Research and Technology

Competence in investment analysis is now a basic requirement for most practicing managers, engineers, and financial analysts in order to avoid possible serious mistakes arising from flawed or inadequate knowledge of the discipline. Furthermore, individuals who make decisions based on technical economics stake their professional futures, in many cases, on the accuracy of such evaluations.The aim of this volume is to provide a balanced view of the essential components of economic and financial analysis including: 1. Strategic and design issues; 2. Principles of cost management systems and activity-based costing, and; 3. Tools for developing the financial measures of investment worth, with advanced topics and case studies in these three areas.This volume provides a refreshing insight into the various methods that engineers, managers, and financial analysts may need to consider to find good alternatives for the investment of scarce resources. Not only are new ventures presented, but also improvements within existing facilities that include process modification, product design, equipment replacement, and plant expansion/contraction.

Autoren/Hrsg.

Parsaei, Hamid R.

Sullivan, W. G.

Hanley, T. R.

Inhaltsverzeichnis

1;Front Cover;1
2;Economic and Financial Justification of Advanced Manufacturing Technologies;4
3;Copyright Page;5
4;Table of Contents;10
5;Dedication;6
6;Preface;8
7;PART I: Strategic and Design Issues in Investment Analysis;12
7.1;Chapter 1. A New Paradigm for Engineering Economy
;14
7.1.1;Abstract;14
7.1.2;1. INTRODUCTION;14
7.1.3;2. REVEILLE
;16
7.1.4;3. YESTERDAY'S TOMORROW IS NOW;16
7.1.5;4. ENGINEERING ECONOMY PARADIGM SHIFT
;18
7.1.6;5. RECENT DEVELOPMENTS;21
7.1.7;6. CONCLUSION;25
7.1.8;7. APPENDIX I: A COLLECTION OF RELEVANT INVESTMENT ISSUES FACING 21st CENTURY MANUFACTURERS;25
7.1.9;8. REFERENCES;27
7.2;CHAPTER 2. SELECTING TECHNIQUES FOR THE FINANCIAL JUSTIFICATION OF ADVANCED MANUFACTURING TECHNOLOGIES: A CONTINGENT APPROACH
;30
7.2.1;Abstract;30
7.2.2;1. INTRODUCTION;30
7.2.3;2. THE STATE OF THE ART;31
7.2.4;3. A COMPARISON AMONG DIFFERENT APPROACHES;34
7.2.5;4. MODIFIED DCF TECHNIQUES;40
7.2.6;ACKNOWLEDGMENTS;44
7.2.7;REFERENCES;44
8;PART II: Costing Methods in Engineering and Financial Analysis;48
8.1;CHAPTER 3. ACTIVITY-BASED COST MANAGEMENT SYSTEMS IN AN ADVANCED MANUFACTURING ENVIRONMENT;50
8.1.1;Abstract;50
8.1.2;1. INTRODUCTION;50
8.1.3;2. THE ADVANCED MANUFACTURING CONCEPT;51
8.1.4;3. SHORTCOMINGS OF THE TRADITIONAL STANDARD COSTING SYSTEM;53
8.1.5;4. OVERVIEW OF ACTIVITY-BASED COSTING;56
8.1.6;5. ACTIVITY-BASED COSTING vs. TRADITIONAL COSTING MODELS;59
8.1.7;6. IMPACT OF ACTIVITY-BASED COSTING ON DECISION MAKING;61
8.1.8;7. CONCLUSION;65
8.1.9;REFERENCES;66
8.2;Chapter 4. Cost accounting and the justification of advanced manufacturing technologies;68
8.2.1;Abstract;68
8.2.2;1. INTRODUCTION;68
8.2.3;2. THE BEHAVIORAL EFFECTS OF COST ACCOUNTING;69
8.2.4;3. THE BEHAVIORAL EFFECTS OF OVERHEAD BASES;69
8.2.5;4. OTHER BEHAVIORAL EFFECTS OF COST ACCOUNTING;73
8.2.6;5. OTHER ISSUES;77
8.2.7;6. SUMMARY;77
8.2.8;7. REFERENCES;77
8.3;CHAPTER 5. SWITCHING RULES FOR DFM COST ESTIMATING;80
8.3.1;ABSTRACT;80
8.3.2;INTRODUCTION;80
8.3.3;SWITCHING RULES CONCEPT FOR DESIGN AND PRODUCTION;81
8.3.4;CHECKLIST;84
8.3.5;POST ESTIMATE MODELS FOR COMPARATIVE ECONOMIC ANALYSIS;86
8.3.6;INTERPRETATION OF RESULTS;88
8.3.7;REFERENCES;89
8.3.8;GENERAL REFERENCES;90
8.4;Chapter 6. A Multi-attribute Simulation Paradigm for the Justification of FMS;96
8.4.1;Abstract;96
8.4.2;1. INTRODUCTION;96
8.4.3;2. APPROACHES TO FMS JUSTIFICATION;98
8.4.4;3. MULTI-ATTRIBUTE SIMULATION PARADIGM;100
8.4.5;4. MODEL EXPERIMENTATION;104
8.4.6;5. CONCLUSIONS AND PLANNED EXTENSIONS TO THE MODEL;108
8.4.7;REFERENCES;109
9;PART III: Processes for Qualitative and Quantitative Evaluation of Investment Worth;112
9.1;Chapter 7. A Critical Review of Project Analysis Techniques;114
9.1.1;ABSTRACT;114
9.1.2;1. INTRODUCTION;114
9.1.3;2. PROJECT PROFITABILITY MEASURES;115
9.1.4;3. THE REINVESTMENT QUESTION IN RATE OF RETURN CALCULATIONS;121
9.1.5;4. PROJECTS WITH INCOME PRECEDING INVESTMENT;124
9.1.6;5. INCREMENTAL ANALYSIS AND THE RANKING OF PROJECTS;126
9.1.7;6. SUMMARY;128
9.1.8;7. REFERENCES;128
9.2;CHAPTER 8. ECONOMIC METHODS FOR EVALUATING INVESTMENTS IN ADVANCED MANUFACTURING TECHNOLOGIES;130
9.2.1;Abstract;130
9.2.2;1. INTRODUCTION;130
9.2.3;2. THE JUSTIFICATION PROCESS;131
9.2.4;3. JUSTIFICATION TECHNIQUES;133
9.2.5;4. AN EXAMPLE;139
9.2.6;5. CONCLUSION;146
9.2.7;6. REFERENCES;147
9.3;Chapter 9. The Evolution to Strategic Justification of Advanced Manufacturing Systems;152
9.3.1;Abstract;152
9.3.2;1 Introduction;152
9.3.3;2 Evolution of Manufacturing Technology;152
9.3.4;3 Advantages and Benefits of AMT;155
9.3.5;4 Adoption of AMT;156
9.3.6;5 Tactical to Strategic Models;156
9.3.7;6 Overall Context of AMT Investment;163
9.3.8;7 Conclusion;169
9.3.9;References;169
9.4;CHAPTER 10. A CLASSIFICATION SCHEME FOR TRADITIONAL AND NON-TRADITIONAL APPROACHES TO THE ECONOMIC JUSTIFICATION OF ADVANCED AUTOMATED MANUFACTURING SYSTEMS;176
9.4.1;ABSTRACT;176
9.4.2;1. INTRODUCTION;176
9.4.3;2. BACKGROUND;177
9.4.4;3. A PROPOSED CLASSIFICATION SCHEME;179
9.4.5;4. SINGLE CRITERION METHODS;179
9.4.6;5. MULTI-CRITERIA METHODS;184
9.4.7;6. CONCLUSION;193
9.4.8;REFERENCES;193
9.5;CHAPTER 11. UTILITY BASED JUSTIFICATION OF ADVANCED MANUFACTURING TECHNOLOGY;200
9.5.1;Abstract;200
9.5.2;1. INTRODUCTION;200
9.5.3;2. UTILITY MODELS;201
9.5.4;3. MODELING OF UTILITY FUNCTIONS;206
9.5.5;4. MANUFACTURING SYSTEM VALUE MODEL;213
9.5.6;5. CONCLUSION;216
9.5.7;6. REFERENCES;216
9.6;CHAPTER 12. INTEGRATING FINANCIAL, STRATEGIC, AND TACTICAL FACTORS IN ADVANCED MANUFACTURING SYSTEM TECHNOLOGY INVESTMENT DECISIONS;220
9.6.1;Abstract;220
9.6.2;1. INTRODUCTION;221
9.6.3;2. BACKGROUND;222
9.6.4;3. DETERMINISTIC MODEL;223
9.6.5;4. STOCHASTIC MODEL;242
9.6.6;5. SUMMARY;251
9.6.7;6. REFERENCES;251
9.7;CHAPTER 13. MEASURING UNCERTAINTY AND RISK IN QMS ENVIRONMENTS;256
9.7.1;Abstract;256
9.7.2;INTRODUCTION;256
9.7.3;1. UNCERTAINTY AND CENTRAL MOMENTS;257
9.7.4;2. RISK AND ITS MEASUREMENT;262
9.7.5;3. COMBINING PRESENT WORTH STATISTICS AND RISK MEASUREMENTS;265
9.7.6;4. RESPONSES TO RISK;270
9.7.7;REFERENCES;271
10;PART IV: Case Studies;274
10.1;Chapter 14. Justification of high-technology manufacturing equipment: a case study on robotics;276
10.1.1;Abstract;276
10.1.2;1. INTRODUCTION;276
10.1.3;2. OUTLINE OF PROCEDURE;277
10.1.4;3. PHASE 1. ESTIMATE ANNUAL CASH FLOWS;277
10.1.5;4. PHASE 2. ANALYZE THE ALTERNATIVES;279
10.1.6;5. PHASE 3. DETERMINE REQUIRED AMOUNT OF OTHER BENEFITS;286
10.1.7;6. PHASE 4. ACTIVELY SEARCH FOR INTANGIBLE BENEFITS;286
10.1.8;7. PHASE 5. COMPARE INTANGIBLE AND DIRECT COST/BENEFITS;286
10.1.9;8. CONCLUSION;287
10.1.10;9. REFERENCES;287
10.2;Chapter 15. A Generic Welding Cell Justification and Planning Process;288
10.2.1;Abstract;288
10.2.2;1. INTRODUCTION;288
10.2.3;2. JUSTIFICATION;289
10.2.4;3. WELDING CELL PLANNING;292
10.2.5;4. IMPLEMENTATION;299
10.2.6;Bibliography;299
10.3;Chapter 16. Economics of Design: Product Design For Manufacture - A Case Study;300
10.3.1;Abstract;300
10.3.2;1. INTRODUCTION;300
10.3.3;2. OVERVIEW OF DESIGN FOR MANUFACTURE (DFM);301
10.3.4;3. STUDENT DESIGN PROJECT;302
10.3.5;4. PRODUCT COST ESTIMATION;308
10.3.6;5. Observations and Conclusions;314
10.3.7;Acknowledgements;314
10.3.8;Sample Calculations:;314
10.3.9;REFERENCES;315
11;AUTHOR INDEX;316