The economic valuation of improved process plant decision support technology
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View abstract on PubMed
Summary
This summary is machine-generated.This study proposes a new economic model to quantify the financial benefits of manufacturing technology investments. It helps justify decisions by estimating the value of improved information and operational flexibility.
Area Of Science
- Industrial Engineering
- Operations Research
- Manufacturing Systems
Background
- Manufacturing plants face challenges in justifying investments in technologies that improve decision-making processes.
- Quantifying "soft" benefits like better information, flexibility, and integration is crucial for rational investment decisions.
Purpose Of The Study
- To develop a new economic model for estimating the value of decision support investments in manufacturing.
- To provide a quantitative basis for evaluating technologies that enhance plant operations and financial forecasting.
Main Methods
- Modeling the plant operational decision cycle (detect, analyze, forecast, choose, implement).
- Proposing a novel economic model to assess investment value based on reduced uncertainty in financial performance forecasting.
Main Results
- The proposed model translates "soft" benefits into quantitative economic returns.
- It provides realistic financial basis for benefit estimates from decision support technologies.
Conclusions
- The developed economic model enables rational management decisions regarding technology investments.
- It offers a method to estimate the value of improved information, flexibility, and integration in manufacturing.
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