The Use of a Conceptual Model to Evaluate Financially Flexible Manufacturing System Projects

It is shown that conventional financial methodologies embody assumptions which are invalid when applied to major projects such as FMS. After critically discussing the assumptions normally made during financial evaluations, the technical problems associated with designing a computer program for FMS evaluation are described and it is shown that by devising a suitable conceptual model, these limitations can be overcome. The paper concludes by demonstrating how, by use of the model developed, together with the correct data input format for the interactive program, the problems normally considered inherent with conventional financial evaluation techniques can be readily overcome.