Investment appraisal techniques for advanced manufacturing technology (AMT): A literature review

Abstract

This paper presents an overview and guidance for manufacturing companies which are preparing to invest in advanced manufacturing technology (AMT). The purpose of this paper is to explain the reasons why the company may encounter problems while adopting AMT, and to look at the many suggestions offered by the relevant literature for improving the performance of evaluation in AMT investment. According to the four major steps in adopting AMT (i.e. strategic planning, justification, training and installation, and routinization and implementation), the research work here aims to assist managers or investors to recognize problems at each step, thus offering appropriate ways to avoid and/or solve those problems. It is believed that improved justification methods will encourage more firms to invest in AMT and to realize the benefits these investments can offer.