Valuation of changeable production systems

Milberg, J.; Möller, Niklas

doi:10.1007/s11740-008-0133-1

Cited by 22 publications

(4 citation statements)

References 18 publications

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“…The system of resources and their organization has to be adapted. The methods used for development and investment appraisal have to include the possible adaptations of the system and in particular the ability to consider newly arriving information [8].…”

Section: Fig 1 Option Chainmentioning

confidence: 99%

Real Options Theory and Strategic Capabilities Development

Kremljak¹,

Hočevar²

2012

Proceedings of the 23rd International DAAAM Symposium 2012

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The paper discusses the choice of stochastic process in real options valuation of strategic investments and the main useful tests and theoretical considerations to give support to this task. Also the review of the relevant research literature is given. Development of an organisational system can be described with logic of evolutionary process. It is comprised of variation, selection and retention. In organisational systems, making different decisions acts as a part of variation. Success in correct orientation, which is a consequence of correct decisions, selects the environment of the system. In case of business and production systems this is the market.

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Section: Fig 1 Option Chainmentioning

confidence: 99%

Real Options Theory and Strategic Capabilities Development

Kremljak¹,

Hočevar²

2012

Proceedings of the 23rd International DAAAM Symposium 2012

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“…But it took up to 90 days for the customers to respond to the remaining 20%. Although the offer usually contains a limited validity [19], the prices can change significantly during this time period so that the actual total costs can fall below or exceed the originally calculated costs [20]. Examples of this fact are the dynamic prices for aluminium, copper, diesel and steel (Fig.…”

Section: Customised Productsmentioning

confidence: 99%

Knowledge-based risk evaluation during the offer calculation of customised products

Rimpau

Reinhart

2010

Prod. Eng. Res. Devel.

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The individualisation of products is a hybrid business strategy, which increases the competitiveness of production enterprises. But the inherent risks of order processing for customised products jeopardises the successful and economical implementation of this strategy: A potential risk exists within the calculation of the total costs due to incomplete information about the product and the production processes during the offer specification process as well as due to the temporal fluctuations of the prices and costs after the offer specification. This paper analyses the risks and existing methods regarding risks in offer calculation processes. The approach developed here proposes a knowledge-based system for the evaluation and configuration of risks during the order processing of individualised products. Based on a classification of the immanent risks, an evaluation method is introduced which is implemented in a knowledge-based system. The methods developed for calculation and interpretation allow for a good analysis of the risk situation of individualised products.

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“…Subsequently, all possible functions are built in, which creates a great capital commitment. Indeed, the high cost of FMS is one of the main reasons for a low level of acceptance and satisfaction with FMS [3,4].…”

Section: Introductionmentioning

confidence: 99%

Modeling economic efficiency of multi-technology platforms

Klocke¹,

Tönissen²,

Wegner³

et al. 2011

Prod. Eng. Res. Devel.

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It is believed that for complex workpieces and small lot sizes complete machining with multi-technology platforms reduces cycle times compared to multiple standalone machines and is economically more efficient. However, so far in literature no mathematical model has been applied to compare these alternatives with respect to cost and productivity. This paper introduces a mathematical model for part costs and productivity and examines conditions under which multi-technology platforms are economically efficient. It is concluded that depending on the reduction of reconfiguration and processing times efficient production with multi-technology platforms is not solely limited to small lot sizes.

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Valuation of changeable production systems

Cited by 22 publications

References 18 publications

Real Options Theory and Strategic Capabilities Development

Real Options Theory and Strategic Capabilities Development

Knowledge-based risk evaluation during the offer calculation of customised products

Modeling economic efficiency of multi-technology platforms

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