TY - JOUR
T1 - A multiple-objective decision model for the evaluation of advanced manufacturing system technologies
AU - Demmel, Johann G.
AU - Askin, Ronald
N1 - Funding Information:
This article is based upon work supported in part by the National Science Foundation under grant DMC 85-44993. Appreciation is also given to Hughes Aircraft Company and its Advanced Education Program.
PY - 1992
Y1 - 1992
N2 - Ordinary financial measures oversimplify the evaluation of advanced manufacturing system technologies (AMSTs). In this paper, a multiple-objective decision model is developed that avoids the shortcomings of traditional evaluation methods. The model is comprised of three objectives-pecuniary, strategic, and tactical. The pecuniary objective is based upon traditional discounted cash flow (DCF) techniques, with the results normalized to a [-1, +1] (worst-best) scale. The strategic and tactical objectives are based upon the concept of qualitative flows, and a qualitative discounting method is employed to discount the qualitative costs and benefits to a present value. The three objectives are traded off using the composite programming technique, resulting in a rank ordering of the alternatives under consideration. The three objectives of the model are broken down into attributes that define the objective. These attributes are mapped into the organization of a manufacturing environment. It is shown that the model covers the entire manufacturing organization in accounting for the costs and benefits of the proposed AMST alternatives. In addition to providing a ranking among alternative AMST projects, the influence of the three objectives on the final score can be analyzed using a mixture experiment. The mixture experiment provides insight into the effect of varying the importance of each objective and its effect on the final rankings. This provides the analyst a method to determine which attributes and objectives are critical for the AMST alternative being investigated.
AB - Ordinary financial measures oversimplify the evaluation of advanced manufacturing system technologies (AMSTs). In this paper, a multiple-objective decision model is developed that avoids the shortcomings of traditional evaluation methods. The model is comprised of three objectives-pecuniary, strategic, and tactical. The pecuniary objective is based upon traditional discounted cash flow (DCF) techniques, with the results normalized to a [-1, +1] (worst-best) scale. The strategic and tactical objectives are based upon the concept of qualitative flows, and a qualitative discounting method is employed to discount the qualitative costs and benefits to a present value. The three objectives are traded off using the composite programming technique, resulting in a rank ordering of the alternatives under consideration. The three objectives of the model are broken down into attributes that define the objective. These attributes are mapped into the organization of a manufacturing environment. It is shown that the model covers the entire manufacturing organization in accounting for the costs and benefits of the proposed AMST alternatives. In addition to providing a ranking among alternative AMST projects, the influence of the three objectives on the final score can be analyzed using a mixture experiment. The mixture experiment provides insight into the effect of varying the importance of each objective and its effect on the final rankings. This provides the analyst a method to determine which attributes and objectives are critical for the AMST alternative being investigated.
KW - CIM
KW - Manufacturing System Justification
KW - Multiple Objective
KW - Strategic Planning
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U2 - 10.1016/0278-6125(92)90004-Y
DO - 10.1016/0278-6125(92)90004-Y
M3 - Article
AN - SCOPUS:38249015520
SN - 0278-6125
VL - 11
SP - 179
EP - 194
JO - Journal of Manufacturing Systems
JF - Journal of Manufacturing Systems
IS - 3
ER -