An integrated approach to investment appraisal for advanced manufacturing technology

This article presents an integrated approach combining the strategic, economic, and analytic justification methodologies to evaluate the tangible and intangible benefits for the selection of advanced manufacturing technology (AMT). A strategic approach called the manufacturing map is applied to determine the consistency among the proposed technology, the company objectives, and the manufacturing strategies. An analytic evaluation technique called the analytic hierarchy process (AHP) is also introduced. During the AHP analysis, an economic evaluation tool called the state-price net present value (SP NPV) is applied to provide financial data. Finally, a budget/network chart is employed to monitor and outline the project in greater detail. (C) 1999 John Wiley & Sons, Inc.