Decision making on investment evaluation and implementation of advanced manufacturing technology

This paper analyses the proposal that, 'Traditional methods of investment evaluation in manufacturing industries have restricted the implementation of advanced manufacturing technology (AMT), and have contributed to the decline in manufacturing competitiveness'. Here the research is aimed at reinforcing the belief that AMT is essential to ensure that companies remain competitive in the international market. The explicit factors in the literature that impinge on investment policies are the distinctions and differences between the theoretical assumptions underpinning organisational behaviour, and current practice in formulating strategic plans, investment and decision making. This paper shows that when the problems of appraisal are overcome, the implementation policies pursued can be different from those indicated by traditional analysis.