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.

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Date created

• 1988

Type

• Document

Processing Activity

• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

License

• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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ITEM CONTEXT

Part of

ff3ca29802c9b5ed0bd77a0a9e76375a

Scope and Contents

Part of

74bc8d76f7112f877dcc1bed073089e6

Scope and Contents

Part of

23d738ba88f8333bc39725f9cb5bd0b8

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Collection

System Dynamic Society Records

Scope and Contents

Collecting area

• This collection is part of the University Archives