Economics of Advanced Manufacturing Systems

373 Pages·1992·10.07 MB·English

by  Ramesh G. Soni

Economics of
Advanced
Manufacturing
Systems
Economics of
Advanced
Manufacturing
Systems
Edited by
Hamid R. Parsaie
Center for Computer-Aided Engineering
University of Louisville, USA
and
Anil Mital
Ergonomics and Engineering Controls Research Laboratory
University of Cincinnati, USA
SPRINGER-SCIENCE+BUSINESS MEDIA, B.V.
First edition 1992
© 1992 Springer Science+Business Media Dordrecht
Originally published by Chapman & Hall in 1992
Softcover reprint of the hardcover 1st edition 1992
Typeset in 10/12 pt Times by Best-set Typesetter Ltd, Hong Kong
Suffolk
ISBN 978-1-4613-6542-6
Apart from any fair dealing for the purposes of research or private study,
or criticism or review, as permitted under the UK Copyright Designs and
Patents Act, 1988, this publication may not be reproduced, stored, or
transmitted, in any form or by any means, without the prior permission in
writing of the publishers, or in the case of reprographic reproduction only
in accordance with the terms of the licences issued by the Copyright
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issued by the appropriate Reproduction Rights Organization outside
the UK. Enquiries concerning reproduction outside the terms stated
here should be sent to the publishers at the London address printed on
this page.
The publisher makes no representation, express or implied, with regard
to the accuracy of the information contained in this book and cannot
accept any legal responsibility or liability for any errors or omissions that
may be made.
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication data
Economics of advanced manufacturing systems /
edited by Hamid R. Parsaei and Anil Mital.
p. cm.
Includes bibliographical references.
ISBN 978-1-4613-6542-6 ISBN 978-1-4615-3480-8 (eBook)
DOI 10.1007/978-1-4615-3480-8
1. Manufactures—Technological innovations. 2. Manufacturing
processes—Automation—Economic aspects. 3. Production
engineering.
I. Parsaei, H. R. II. Mital, Anil.
HD9720.5.E27 1992 91-23613
338'.064—dc20 CIP
To our wives, Farah and Chetna, and children,
Boback, Shadi, Aashi and Anubhav, who
suffered through our countless hours of neglect
and absence during the preparation of this book.
Contents
Contributors xi
Acknowledgements xv
Preface xvii
Part One
ECONOMIC JUSTIFICATION METHODS 1
1 Economic and Financial Justification Methods for Advanced
Automated Manufacturing: An Overview
Ramesh G. Soni, Hamid R. Parsaei and Donald H. Liles 3
2 Expert Systems Applied to the Economic Justification of
Advanced Manufacturing Systems
William M. Henghold and Steve R. LeClair 21
3 Economics of Advanced Manufacturing Systems During System
Design and Development
Hector R. Carrasco and Shih-Ming Lee 37
4 Economics of Flexible Assembly Automation: Inftuence of
Production and Market Factors
Ani! Mital 45
5 Justification of Cellular Manufacturing Systems
Ismail N. Zahran, Adel S. Elmaghraby, and Mohamed A. Shalabi 73
6 Application of the Engineering Economic Analysis Process and
Life Cycle Concepts to Advanced Production and Manufacturing
Systems
James A. Bontadelli 91
Part Two
MODELS AND TECHNIQUES 111
7 Analytical Techniques for Justification of Manufacturing Systems
M. Jeya Chandra and Catherine M. Harmonosky 113
8 Simulation v. Analytical Models for the Economic Evaluation of
Flexible Manufacturing Systems: An Option-Based Approach
Giovanni Azzone and Umberto Bertele 127
viii Table of contents
9 Multivariate Learning Curve Model for Manufacturing Economic
Analysis
Adedeji B. Badiru 141
10 The Economics of Variance Reduction in Sequential
Manufacturing
Robert G. Batson and Jessica O. Matson 163
Part Three
COSTING AND INVESTMENT METHODS 177
11 Memo to Global Competitors: It is Time to Replace Cost
Accounting with Process-Based Approach
H. Thomas Johnson and Richard W. Sapp 179
12 Joint Cost Allocation to Multiple Products: Cost Accounting v.
Engineering Techniques
Fariborz Tayyari and Hamid R. Parsaei 189
13 A Totally Integrated Manufacturing Cost Estimating System
(TIMCES)
Julius P. Wong, Ibrahim N. Imam, Ali Khosravi Kamrani,
Hamid R. Parsaei, and Fariborz Tayyari 201
14 Risk Evaluation of Investment in Advanced Manufacturing
Technology
Brian B. Hundy and David J. Hamblin 225
15 Analysis and Evaluation of Flexible Capital Investment
Carl-Henrie Nilsson, Hdkan Nordahl, Ingvar Persson 239
Part Four
PERIPHERAL ISSUES 255
16 Firm Size and Computer Integrated Enterprise Concept:
CIMICIE Related Strategic Issues for Small Businesses
Raja K. Iyer and Donald H. Liles 257
17 Application of Robotics and Automation Technologies to
Industrialized Housing Manufacture
Ahmad K. Elshennawy, William W. Swart, and Subrato Chandra 273
18 Training and Cost Effectiveness in the Development of Training
Devices
Lucy C. Morse and Brian Goldiez 295
19 On Safety of Workers in FMS Environments
Suesbaek Nanthavanij 305
Table of contents IX
Part Five
ECONOMIC ANALYSIS AND JUSTIFICATION RESOURCES 319
20 Information Solutions to Advanced Production and
Manufacturing Systems (APMS): A Discipline Impact Factor
Analysis
lanardan Kulkarni, Hamid R. Parsaei, and Fariborz Tayyari 321
Appendix 331
Index 359
Contributors
Giovannie Azzone
Dipartmento di Economia E Produzione, Politecnico di Milano, Piazza
Leonardo da Vinci 32, Milan, Italy.
Adedeji B. Badiru
School of Industrial Engineering, University of Oklahoma, Oklahoma,
USA.
Robert G. Batson
Department of Industrial Engineering, The University of Alabama,
Alabama, USA.
Umberto Bertele'
Dipartmento di Economia E Produzione, Politecnico di Milano, Piazza
Leonardo da Vinci 32, Milan, Italy.
Dr James A. Bontadelli
Department of Industrial Engineering, University of Tennessee
Knoxville, Knoxville, Tennessee, USA.
Hector R. Carrasco
Department of Industrial Engineering, Florida International Univer
sity, Florida, USA.
M. Jeya Chandra
Department of Industrial Engineering, Pennsylvania State University,
University Park, Pennsylvania, USA.
Subrato Chandra
Florida Solar Energy Center, University of Central Florida, Cape
Canaveral, Florida, USA.
Adel S. Elmaghraby
Department of Engineering mathematics and computer science,
University of Louisville, Louisville, Kentucky 40292, USA.
Ahmed K. Elshennawy
Department of Industrial Engineering, University of Central Florida,
Orlando, Florida, USA.
Brian Goldiez
Institute for Simulation and Training, University of Central Florida,
Orlando, Florida, USA.
XlI Contributors
David J. Hamblin
Putteridge Bury Management Centre, Luton, Bedfordshire, UK.
Catherine M. Harmonosky
Department of Industrial and Management Systems Engineering,
Pennsylvania State University, University Park, Pennsylvania, USA.
William M. Henghold
Universal Technology Corporation, Dayton, Ohio, USA.
Brian B. Hundy
College of Manufacturing, Cranfield Institute of Technology, Cranfield,
Bedford, UK.
Ibrahim N. Imam
Department of Engineering Mathematics and Computer Science,
University of Louisville, Louisville, Kentucky, USA.
Raja K. Iyer
Center for Research for Information Systems, University of Texas at
Arlington, Arlington, Texas, USA.
H. Thomas Johnson
Retzlaff Professor of Quality Management, School of Business
Administration, Portland State University, Portland, USA.
Ali Khosravi-Kamrani
Department of Engineering Management, University of Missouri at
Rolla, Roila, USA.
J anardan Kulkarni
Laura Kersey Library, University of Louisville, Louisville, Kentucky,
USA.
Steve R. LeClair
Air Force Materials Laboratory, Wright-Patterson Air Force Base,
Dayton, Ohio, USA.
Shih-Ming Lee
Department of Industrial Engineering, Florida International Univer
sity, Miami, Florida, USA.
Donald H. Liles
Automation and Robotics Research Institute, South Fort Worth, Texas,
USA.
Jessica O. Matson
Department of Industrial Engineering, University of Alabama,
Tuscaloosa, Alabama, USA.
Contributors Xlll
Anil Mital
Ergonomics and Engineering Controls Research Laboratory,
Department of Mechanical and Industrial Engineering, University of
Cincinnati, Cincinnati, Ohio, USA.
Lucy C. Morse
Department of Industrial Engineering, University of Central Florida,
Orlando, Florida, USA.
Suebsak Nanthavanij
Department of Mechanical and Industrial Engineering, New Jersey
Institute of Technology, Newark, New Jersey, USA.
Carl-Henric Nilsson
Industrial Management, Lund Institute of Technology, Lund, Sweden ..
Hakan Nordahl
Industrial Management, Lund Institute of Technology, Lund, Sweden.
Hamid R. Parsaei
Center for Computer-aided Engineering, Department of Industrial
Engineering, University of Louisville, Louisville, Kentucky, USA.
Ingvar Persson
Industrial Management, Lund Institute of Technology, Lund, Sweden.
Richard W. Sapp
School of Business Administration, Portland State University, Port
land, USA.
Mohamed Adel Shalabi
Department of Mechanical Design and Production, University of
Cairo, Giza, Egypt.
Ramesh G. Soni
Department of Management, Indiana University of Pennsylvania,
Indiana, Pennsylvania, USA.
William W. Swart
Department of Industrial Engineering, University of Central Florida,
Orlando, Florida, USA.
Fariborz Tayyari
Department of Industrial Engineering, Bradley University, Peoria,
Illinois, USA.
Julius P. Wong
Computer-aided Design Laboratory, Department of Mechanical
Engineering, University of Louisville, Louisville, Kentucky, USA.