137
Views
43
CrossRef citations to date
0
Altmetric
Original Articles

Capital investment appraisal of advanced manufacturing technology

Pages 2751-2776 | Received 01 Dec 1993, Published online: 07 May 2007

References

  • ADVISORY COUNCIL FOR APPLIED RESEARCH AND DEVELOPMENT , 1983 , New Opportunities in Manufacturing The Management of Technology ( London HMSO ), 19 .
  • AGGARWAL , S. , 1991 , Rewarding top managers for company's success . Journal of General Management , 17 ( 1 ), 80 – 89 .
  • AIREY , J. and YOUNG , C. , 1983 , Economic justification-counting the strategic benefits . In Proceedings of the 2nd Interantional Conference on Flexible Manufacturing Systems , K. Rathmill (ed.) ( Kempston IFS ), 549 – 554 .
  • ALLEN , D. , 1992 , The cost of capital . Administrator , June , 2 – 3 .
  • ASHFORD , R. W. , DYSON , R. G. and HODGES , S. D. , 1988 , The capital-investment appraisal of new technology problems, misconceptions and research directions . Journal of the Operational Research Society , 39 ( 7 ), 637 – 642 .
  • AVLONITIS , G. J. and PARKINSON , S. T. , 1986 , The adoption of flexible manufacturing systems in British and German Companies . Industrial Marketing Management , 15 (2), pp. 97 – 108 .
  • BALDWIN , R. H. , 1959 , How to assess investment proposals . Harvard Business Review, May/June , 98 – 104 .
  • BANKS , R. L. and WHEELWRIGHT , S. C. , 1979 , Operations vs. strategy trading tomorrow for today . Harvard Business Review, May/June , 112 – 120 .
  • BAVISHI , V. , 1981 , Capital budgeting practice of multinationals . Management Accounting (USA) , August , 32 – 35 .
  • BENCHMARCH RESEARCH , 1992 , Computers in manufacturing survey. (Conducted for Engineering Computers magazine) . News Letter for Manufacturing , January ( Wakefield ICL ), 2 .
  • BERG , N. A. , 1965 , Strategic planning in conglomerate companies . Harvard Business Review , May/June , 79 – 92 .
  • BERGER , S. , DERTOUZOS , M. L. , LESTER , R. K. , SOLOW , R. M. and THURLOW , L. C. , 1991 , Towards a new industrial America . In Managing Innovation , J. Henry and D. Walker (eds) . ( London Open University/Sage ), 288 – 305 .
  • BIGGADIKE , R. , 1979 , The risky business of diversification . Harvard Business Review , May/June , 103 – 111 .
  • BLYTH , M. L. , FRISKEY , E. A. and RAPPAPORT , A. , 1986 , Implementing the shareholders value approach . Journal of Business Strategy , Winter , 48 – 58 .
  • BROMWICH , M. and BHTMANT , A. , 1991 , Strategic investment appraisal . Management Accounting , March , 45 – 18 .
  • BROWNSTEIN , A. R. and PANNER , M. J. , 1992 , Who should set CEO pay?-The press? Congress? Shareholders? Harvard Business Review . May/June , 28 – 36 .
  • CURTIN , F. T. , 1984 , The executive dilemma how to justify investment in new industrial automation systems . CIMCOM Conference Proceedings , Society of Manufacturing Engineers , Dearborn , Michigan , USA .
  • DEMIRAG , I. and TYLECOTE , A. , 1992 , The effect of organisational culture, structure and market expectations on technological innovation a hypothesis . British Journal of Management , 3 ( 1 ), 7 – 20 .
  • DRUCKER , P. F. , 1991 , The emerging theory of Manufacturing . The New Manufacturing (Harvard Business Review) , 2 – 10 .
  • DRURY , G. , 1990 , Management and Cost Accounting . 2nd edn ( London Chapman & Hall ), p. 376 .
  • DRURY , C. and TAYLES , M. , 1991 , Investment appraisal, product costing and performance measurement . Company Accountant , June , 10 – 17 .
  • EMMANUAL , C. , OTLEY , D. and MERCHANT , K. , 1990 , Accounting for Management Control ( London Chapman & Hall ), 318 – 348 .
  • FLOWER , J. F. , 1971 , Measurement of divisional performance . Accounting and Business Research , Summer , 205 – 214 .
  • FOTSCH , R. J. , 1983 , Machine tool justification policies their effect on productivity and profitability . Journal of Manufacturing Systems , 3 ( 2 ), 169 – 195 .
  • FREMGEN , J. M. , 1973 , Capital budgeting practices a survey . Management Accounting , May , 19 – 25 .
  • GERWIN , D. , 1982 , Do's and don'ts of computerized manufacturing . Harvard Business Review , March/April , 107 – 116 .
  • GITMAN , L. J. and FORRESTER J. R. , JR , 1977 , A survey of capital budgeting techniques used by major US firms . Financial Management , Fall , 66 – 71 .
  • GOLD , B. , 1982 , CAM sets new rules for production . Harvard Business Review , Nov/Dec , 88 – 94 .
  • GRUD , J. , 1984 , Can manufacturing system change be justified? Production and Inventory Management , Second Quarter, 93 – 105 .
  • HARRISON , B. , 1990 , Automation managing to make the right decision . Electrical Review , 2 – 15 November , 17 – 18 .
  • HAYES , R. H. and ABERNATHY , W. J. , 1980 , Managing our way to economic decline . Harvard Business Review , July/Aug , 67 – 77 .
  • HAYES , R. H. and GARVIN , D. A. , 1982 , Managing as if tomorrow matters . Harvard Business Review , May/June , 70 – 79 .
  • HETRICK , J. C. , 1961 , Mathematical models in capital budgeting . Harvard Business Review , Jan/Feb , 49 – 64 .
  • HrLL , T. , 1985 , Manufacturing Strategy ( London Macmillan ), chapter 7 .
  • HILLIER , F. S. , 1963 , The deviation of probabilistic information for the evaluation of risky investments . Management Science , April , 443 – 457 .
  • Ho , S. S. M. and PIKE , R. H. , 1991 , Risk analysis in capital budgeting contexts simple or sophisticated? Accounting and Business Research , 21 ( 83 ), 227 – 238 .
  • HODDER , J. and RIGGS , H. , 1985 , Pitfalls in evaluating risky projects . Harvard Business Review , Jan/Feb , 128 – 135 .
  • HODDER , J. E. , 1986 , Evaluation of manufacturing investments a comparison of US and Japanese Practices . Financial Management , Spring , 15 ( 1 ), 17 – 24 .
  • HOSKINS , C. G. and DUNN , M. J. , 1974 , The economic evaluation of capital expenditure proposals under uncertainty the practice of large corporations in Canada . Journal of Business Administration , Fall , 6 ( 1 ), 45 – 55 .
  • JACOBS , M. T. , 1991 , Short-Term America The Causes and Cures of Our Business Myopia ( Harvard Business School Press ), Ch. 1 .
  • JOHNSON , R. , 1985 , Big executive bonuses now come with a catch lots of criticism. Wall Street Journal ( New York Edition ), 15th May , 15 .
  • KAPLAN , R. S. , 1984 , Yesterday's accounting undermines production . Harvard Business Review , July/August , 95 – 101 .
  • KAPLAN , R. S. , 1986 , Must CIM be justified by faith alone? Harvard Business Review , March/April , 87 – 95 .
  • KEE , R. and BUBLITZ , B. , 1988 , The role of payback in the investment process . Accounting and Business Research , 18 ( 70 ), 149 – 155 .
  • KELLY , G. and TIPPETT , M. , 1991 , Economic and accounting rates of return a statistical model . Accounting and Business Research , 21 ( 84 ), 321 – 329 .
  • KENNEDY , J. A. and SUGDEN , K. F. , 1986 , Ritual and reality in capital budgeting . Management Accounting , February , 34 – 27 .
  • KIM , S. H. and FARRAGHER , E. J. , 1981 , Current capital budgeting practice . Management Accounting (USA) , June , 26 – 30 .
  • KIM , S. H. , 1982 , An empirical study on the relationship between capital budgeting practices and earnings performance . Engineering Economist , Spring , 185 – 196 .
  • KING , P. , 1975 , Is the emphasis of capital budgeting theory misplaced? Journal of Business Finance and Accounting , 2 ( 1 ), 69 – 81 .
  • KIRTON , J. A. , 1986 , Implementing advanced manufacturing technology-the way it is . In Managing Advanced Manufacturing Technology , C. A. Voss (ed.) ( Kempston , IFS ), 57 – 67 .
  • KLAMMER , T. , 1972 , Empirical evidence of the adoption of sophisticated capital budgeting techniques. Journal of Business, July, 387 – 397 .
  • KLAMMER , T. P. and WALKER , M. C. , 1984 , The continuing increase in the use of sophisticated capital budgeting techniques . California Management Review , XXVII ( 1 ), 137 – 142 .
  • MAO , J. C. T. , 1970 , Survey of capital budgeting theory and practice . Journal of Finance , May , 349 – 360 .
  • MACDONALD , I. , 1985 , Modern systems demand fresh look at ROI concepts . Accountancy , 96 , 136 – 137 .
  • MCINTYRE , A. D. and COULTHURST , N. J. , 1986 , Capital Budgeting Practices in Medium-Sized Businesses-A Survey . A Research Report ( London Institute of Cost and Management Accountants ).
  • MEREDITH , J. R. and SURESH , N. C. , 1986 , Justification techniques for advanced manufacturing technologies . International Jorunal of Production Research , 24 ( 5 ), 1043 – 1057 .
  • MICHAEL , G. J. and MILLEN , R. A. , 1984 , Economic justification of modern computer-based factory automation equipment a status report . Proceedings of the ORSAjTIMS First Special Interest Conference on FMS , August .
  • MOORE , J. S. and REICHERT , A. K. , 1983 , An analysis of financial management techniques currently employed by large US corporations . Journal of Business Finance and Accounting , Winter , 623 – 645 .
  • MORGAN , P. , 1992 , Power, performance , ethics. Boardroom Agenda Policy papers of the Institute of Directors , ( 1 ) February , 8 – 11 .
  • NATIONAL ECONOMIC DEVELOPMENT COUNCIL , 1971 , Investment Appraisal ( London HMSO ), 4th edn .
  • NICHOLSON , R. , 1991 , National Economic Development CounciFs Innovation Working Party Review ( London HMSO ).
  • PETRY , G. H. , 1975 , Effective use of capital budgeting tools . Business Horizons , 18 ( 5 ), 57 – 65 .
  • PETTY , J. W. , SCOTT , JR , D. F. and BIRD , M. M. , 1975 , The capital expenditure decision-making process of large corporations . Engineering Economist , Spring , 159 – 172 .
  • PIKE , R. H. , 1983 , A review of recent trends in formal capital budgeting processes . Accounting and Business Research , Summer , 201 – 208 .
  • PIKE , R. H. , 1988 a , An empirical study of the adoption of sophisticated capital budgeting practices and decision-making effectiveness . Accounting and Business Research , Autumn , 341 – 351 .
  • PIKE , R. H. , 1988 b , The capital budgeting revolution . Management Accounting , 66 , 28 – 30 .
  • PIKE , R. H. , SHARP , J. and PRICE , D. , 1989 , AMT investment in the larger UK firm . International Journal of Operations and Production Management , 9 ( 2 ), 13 – 26 .
  • PIKE , R. H. , 1989 , Do sophisticated capital budgeting approaches improve investment decisionmaking effectiveness? Engineering Economist , 34 ( 2 ), 149 – 161 .
  • PRIMROSE , P. L. , 1988 , AMT investment and costing systems . Management Accounting , 66 , October , 26 – 27 .
  • PRIMROSE , P. L. , 1991 a , Investment in Manufacturing Technology , ( London Chapman & Hall ), pp. 80 – 99 .
  • PRIMROSE , P. L. , 1991 b , Investment in Manufacturing Technology . ( London Chapman & Hall ), p. 2 .
  • RAPPAPORT , A. , 1986 , Creating Shareholder Value The New Stanirdfor Business Performance ( London Collier Macmillan ), pp. 171 – 197 .
  • RAPPAPORT , A. , 1978 , Executive incentives vs corporate growth . Harvard Business Review , July/August , 81 – 88 .
  • RAPPAPORT , A. , 1992 , CFOs and strategist forging a common framework . Harvard Business Review , May /June , 84 – 91 .
  • ROBICHEK , A. A. and MACDONALD , J. G. , 1966 , Financial management in transition, long range planning service . Report No. 268 Stanford Research Institute , Menlo Park , California ( January ).
  • ROCK , R. H. , 1984 , Pay for performance accent on standards and measures . Compensation Review , 15 – 23 .
  • SAMUELS , J. M. , WILKES , F. M. and BRAYSHAW , R. E. , 1990 , Management of Company Finance . 5th edn ( London Chapman & Hall ), 167 – 169 .
  • SAMUELS , J.M. , WILKES , F. M. and BRAYSHAW , R. E. , 1990 , Management of Company Finance . 5th edn ( London Chapman & Hall ), 164 .
  • SCAPENS , R. W. and SALE , J. T. , 1981 , Performance measurement and formal capital expenditure controls in divisionalised companies . Journal of Business Finance and Accounting , 8 ( 3 ), 389 – 419 .
  • SCAPENS , R. W. , SALE , J. T. and TIKKAS , P. A. , 1982 , Financial Control of Divisional Capital Investment ( London ICMA ).
  • SCHALL , L. D. and GEUSBEEK , W. , 1978 , Survey and analysis of capital budgeting methods . Journal of Finance , March , 281 – 288 .
  • SENKER , P. , 1984 , Implications of CAD/CAM for management . OMEGA , 12 ( 3 ), 225 – 231 .
  • SETHI , S. P. and NAMIKI , N. , 1987 , Top management compensation and corporate performance . Journal of Business Strategy , Spring , 37 – 43 .
  • SHERIDAN , T. , 1986 , How to account for manufacturing . Management Today , August , 60 – 63 .
  • SHINODA , Y. , 1973 , Japanese management old ways become modern . In Top Management- Business Strategy & Planning , B. Taylor and K. MacMillan (eds) ( London Longman ), 387 – 398 .
  • SICK , G. A. , 1986 , A certainty-equivalent approach to capital budgeting . Financial Management , Winter , 23 .
  • STONICH , P. J. , 1984 , Performance measurement and reward systems critical to strategic management . Organizational Dynamics , Winter , 51 .
  • SURESH , N. C. and MEREDITH , J. R. , 1985 , Justifying multimachine systems an integtrated strategic approach . Journal of Manufacturing Systems , 4 ( 2 ), 117 – 134 .
  • SWEENEY , M. T. , 1986 , Flexible manufacturing systems-managing their integration . In Managing Advanced Manufacturing Technology , C. A. Voss (ed.) ( Kempston , IFS ), 69 – 74 .
  • TOMBARI , H. A. , 1978 , To buy or not to buy? Weighing capital investments . Production Engineering , March , 50 – 53 .
  • WEINGARTNER , H. , 1969 , Some new views of the payback period and capital budgeting decisions . Management Science , 15 ( 12 ), 594 – 607 .
  • WOODS , M. , POKORNY , M. , LINTNER , V. and BLINKHORN , M. , 1985 , Appraising investment in new technology . Management Accounting , October , 42 – 43 .
  • YAMAMOTO , M. , 1992 , Information flows and the investment process in Japanese companies . An unpublished paper presented at the British Academy of Management 1992 Conference , University of Bradford , 14 – 16 September .
  • AMT is a term applied to any form of manufacturing process which embraces a computer control system, from the basic numerically controlled machine tools to fully computer-integrated flexible manufacturing systems.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.