Online Content

1. Klaue, Thomas, "Capital Investment Planning for New Technologies- A System Dynamics Assessment on Economic Efficiency"

Type:
Document
Date Created:
1988
Collection:
System Dynamic Society Records
Collecting Area:
University Archives
Collection ID:
ua435
Parent Record(s):
23d738ba88f8333bc39725f9cb5bd0b8, 74bc8d76f7112f877dcc1bed073089e6, and ff3ca29802c9b5ed0bd77a0a9e76375a
Thumbnail Path Ss:
/downloads/rn301j944?file=thumbnail
System Modified Dtsi:
2020-01-02T18:42:12Z
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.