Development of a Systems Dynamics model to assess the value of alternative manufacturing technologies

by Cheng Tao

Institution: Blekinge Institute of Technology
Year: 2014
Keywords: hållbar utveckling; sustainability - general; maskinteknik; mechanical engineering - general; industriell ekonomi; industrial management and engineering; value driven design; value assessment; sustainability; system dynamics; model; product / service system
Record ID: 1338237
Full text PDF: http://www.bth.se/fou/cuppsats.nsf/6753b78eb2944e0ac1256608004f0535/9be9199adb0c3136c1257d46006df65a?OpenDocument


Recently trade-off among producers, customers and society/ environment is one of the most popular concerns in industry. This issue conducts the decision making by manufacturers on the selection between two alternative techniques, ECM and MM. The purpose of this study was to explore the problem in how to assess the value of a product/ service in the early stages of the design activity. Through the simulation tool of System Dynamics, a model helps to quantify all the values which were involved. The result of this model was that the coming 10 years NPVs of two alternatives were assessed. Contrasting the alternatives on different manufacturing processes and market conditions, the decision makers could find out an appropriate scenario with an appropriate technique. This approach was verified to ensure the accuracy and practicability.