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- Type:
- Document
- Date Created:
- 1988
- Collection:
- System Dynamic Society Records
- Collecting Area:
- University Archives
- Collection ID:
- ua435
- Parent Record(s):
- 23d738ba88f8333bc39725f9cb5bd0b8, 74bc8d76f7112f877dcc1bed073089e6, and ff3ca29802c9b5ed0bd77a0a9e76375a
- Description:
- Technological investment planning is of crucial importance for industrial enterprises. Successful investment decisions and the right process technology increase the companies competitive strength. If the wrong technology is applied this leads to high fixed costs diminishing the return on investment. Methodical long-range planning is required. The necessity to introduce new technologies is emphasized in numerous publications. For evaluation of such strategic investments the classical methods of project calculations are not sufficient due to non-consideration of specific economic parameters changed by modern process technologies. A holistic view will be developed, considering all effects of new technologies on the enterprise. The proposed System Dynamics approach simulates the changes of cost relations due to the introduction of a Flexible Manufacturing System (FMS) in an industrial enterprise.The handy SD model can be easily adapted to individual circumstances. Therefore, it offers practical support to demonstrate the economic efficiency of capital investment already in the planning stage of preinvestment analysis.