STRATEGIC-PLANNING IN MANUFACTURING SYSTEMS - AHP APPLICATION TO AN EQUIPMENT REPLACEMENT DECISION

The analytical hierarchy process (AHP) has been investigated with respect to its compatibility with strategic planning in manufacturing. Specifically, it was examined in its ability to support decisions in incrementing an organization towards higher levels of automation/technology in their manufacturing processes. The replacement of several milling machines at Deutsche Aerospace Airbus, Germany, required the development of a strategic plan to address both automation in manufacturing systems and machinery replacement. The objective of this research was to develop/explore different planning alternatives ranging from extending the life of existing machinery to total replacement with a new manufacturing system and to evaluate these alternatives through economical and technological criteria. Quantitative (financial and technological) and qualitative (intangible) benefits of investments in new manufacturing systems were considered using the AHP with the aid of AutoMan, a microcomputer program for multiple criteria decision making.