Evaluating Investments in Advanced Manufacturing Technology: A Fuzzy Set Theory Approach

Abstract

In this paper, a model for the evaluation of investments in advanced manufacturing technology is developed. Many authors have called for an integration of financial and non-financial factors in such evaluations, and this paper demonstrates that it is conceptually possible to do this using the mathematics of the analytic hierarchy process and fuzzy set theory. The development of the model has certain distinguishing features. First, it is based on a conceptual framework that combines the three dimensions of risk, financial return and non-financial factors. The empirical basis for this has been investigated and previously reported by the authors. Second, models previously developed and reported in the literature are shown to suffer from certain flaws relating to the use of linguistic scales, the ranking of fuzzy performance indicators and partiality in the treatment of investment decision variables. These issues are addressed through the development of simpler linguistic scales based on the analytic hierarchy, a revised procedure for ranking fuzzy numbers and an attempt to build a comprehensive model through the three dimensions described above. Triangular fuzzy numbers are used throughout in order to make the mathematics tractable and relatively easy to understand, and to facilitate presentation of a worked example. However, so that the reader is not misled, attention is drawn to some of the complexities in fuzzy arithmetic, especially the important distinction between subtraction/division and deconvolution of fuzzy numbers.

Potential difficulties in applying the Pay for Safety Scheme (PFSS) in construction projects

“…The Mann-Whitney U test may be used when the conditions for using the t-test are not satisfied (Taylor, 2005). The data variables analyzed by the Mann-Whitney U test must at least be on the ordinal level of measurement (Siegel and Castellan, 1988;Abdel-Kader and Dugdale, 2001;Love et al, 2004). A more detailed explanation on each statistical technique can be referred to Chan et al (2010 …”

A comprehensive bibliography on effectiveness measurement of manufacturing systems

“…Traditional manufacturing technologies predominantly enhance process efficiency and workers' physical capabilities through rigid and mechanized design (Hirschhorn , 1984) whereas AMS works on improving overall effectiveness of a manufacturing system (Choobineh, 1986;Kaplan, Must CIM be Justified by Faith Alone, 1986). Advantages are many but still, 50 to 75% adoption of AMS fail (Abdel-Kader & Dugdale, 2001). The failure of effective AMS has been associated with variety of problems:…”

“…The representative ones are: Abdel-Kader, et al, 2001;Agarwal, 1997;Boyer, et al, 1997;Canada, et al, 1989;Canada, et al, 1990;Choobineh, 1986;Datta, et al, 1992;Hynek, et al, 2007;Kaplan, 1986;Karsak, et al, 2001;Kumar, et al, 1996;Marri, et al, 2006;Meredith, et al, 1990;Meredith, et al, 1986;Naik, et al, 1992;Ordoobadi, et al, 2001;Primrose, 1991;Sambasivarao, et al, 1997;Slagmulder, et al, 1992;Small, 2006;Stainer, et al, 1996;Zammuto, et al, 1992.…”

Comparative Study of the Variables in Construction Project Briefing/Architectural Programming

“…The matched parametric testing methods were not employed in this study since the parametric assumptions were not fulfilled and the variables were measured using an ordinal scale of measurement (Abdel-Kader, 2001;Love et al, 2004). The MannWhitney test is used to investigate the differences between two groups (the UK and the USA, and Hong Kong in this study).…”