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This is not an overview paper. This paper is concerned with simply making an expository note on three issues that should be taken into account when making an economic justification of investments in advanced manufacturing systems. They are the product of cost information, uncertainty, and intangible benefits available from the investment, which have been widely discussed in isolation for the last 20 years. The main purpose of this paper is primarily to provide practitioners with a synopsis of leading edge research in the area of justifying investment in advanced manufacturing systems and to stimulate a desire for better understanding and application of knowledge and techniques that will enhance professional practice.Once companies replace their existing manufacturing systems with advanced manufacturing systems, the characteristics of the manufacturing environment are greatly changed in general. Such different characteristics usually entail three problems in justifying investment in the advanced manufacturing systems: (1) Calculating an accurate product cost, (2) Dealing with uncertainty inherent therein and (3) Intangible benefits available from the investment project. Each of these problems has been greatly discussed, mostly independently, in the academic world for the last two decades. In this paper we will revisit and discuss each of them on a general, but relatively informal, level using simple examples to illustrate the main points. The paper is intended to be expository and aimed primarily to hopefully provide practitioners with a synopsis of leading edge research in the area of justifying investment in advanced manufacturing systems and to stimulate a desire for better understanding and application of knowledge and techniques that will enhance professional practice.

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