Title: Strategic investment appraisal for advanced manufacturing technology

Authors: Alan Stainer, Abby Ghobadian, Jonathan Liu, Lorice Stainer

Addresses: Middlesex University, Bounds Green Road, London N11 2NQ, UK. ' Middlesex University Business School, The Burroughs, Hendon, London NW4 4BT, UK. ' Middlesex University Business School, The Burroughs, Hendon, London NW4 4BT, UK. ' Business School, University of Hertfordshire, Hertford Campus, Mangrove Road, Hertford SG13 8QF, UK

Abstract: Investment appraisal techniques are widely used by European organisations. These techniques may be inherently biased against investment in advanced manufacturing technology (AMT). Internal systems of resource allocation may result in loss of competitiveness. The article examines the applicability of the investment appraisal techniques to AMT investments which fall into three broad categories: replacement, inter-functional and intra-functional integrative. A four-phase model for the appraisal of strategic AMT investments is developed, whilst, at the same time, illustrating that, in the case of tactical investments, conventional appraisal techniques will suffice.

Keywords: advanced manufacturing technology; AMT investment; benefits; decision making; investment appraisal; risks; resource allocation; strategic investment.

DOI: 10.1504/IJMPT.1996.036319

International Journal of Materials and Product Technology, 1996 Vol.11 No.1/2, pp.76 - 88

Published online: 02 Nov 2010 *

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