The importance of advanced manufacturing technology (AMT) has been
increasing because of their competitive advantages. Adoption of AMT
involves major investment, and large‐scale issues are involved in the
selection and justification of these technologies. Researchers have
identified a considerable number of issues and subattributes for
implementing various projects. Reviews the literature and then
classifies several of these implementation issues.
Globally, manufacturing facilities are constantly being upgraded in
order to provide competitive advantages. Parunndekar observes that Indian manufacturing firms
have recognized the importance of automating their production systems to
meet the challenges posed by the pluralistic market. However, adoption
of such automation projects involves large investments and a strategic
management style. Meredith and Suresh state that any financial investment in economic activities requires a
justification for the purpose of committing capital. The introduction of
automation projects (AP) can, and many would say should, include changes
in the prevailing management style and in the organizational culture of
a firm. Thus, the decision‐making process with regard to the selection
of AP is quite complex, because the commercial success of the firm is
highly dependent on the mechanics of such a process. In addition to the
obvious quantitative benefits accruing from the introduction of AP, they
can offer a large number of qualitative (intangible) benefits. Datta
et al. observed that these are generally difficult to quantify. Researchers have attempted to convert
the relative importance of qualitative benefits into priority weights
(PW) for procedures involving the selection and evaluation of AP.
Mohanty states that project selection and evaluation involve decisions that are critical to the profitability,
growth and survival of the manufacturing firm in the increasingly
competitive global scenario. Such decisions are complex and require
analysis of tangible and intangible attributes.
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