AHP as a strategic decision-making tool to justify machine tool selection

Abstract Machine tool selection has strategic implications that contribute to the manufacturing strategy of a manufacturing organization. In such a case, it is important to identify and model the links between machine tool alternatives and manufacturing strategy. This study presents such a strategic justification tool for machine tools. With the new strategic justification tool, the evaluation of investment in machine tools can model and quantify strategic considerations. AHP and ANP are applied in calculation of the contributions of machine tool alternatives to the manufacturing strategy of a manufacturing organization. Hierarchical decision structures are formed in the application of the AHP and ANP approaches. Ranking scores which are used to rank the alternatives are obtained as outcomes of the applications. Application of the ANP approach also enabled the incorporation of interdependencies among the components of decision structures. An illustrative example is provided. The company management found the application and results satisfactory and implementable in their machine tool selection decisions.

[1]  Thomas J. Crowe,et al.  An integrated dynamic performance measurement system for improving manufacturing competitiveness , 1997 .

[2]  P. L. Primrose,et al.  Selecting technology for investment in flexible manufacturing , 1991 .

[3]  Linda Hendry.  Flexible Manufacturing Systems – The Technology and Management , 1993 .

[4]  Zone-Ching Lin,et al.  Evaluation of machine selection by the AHP method , 1996 .

[5]  Roger N. Wabalickis.  Justification of FMS with the analytic hierarchy process , 1988 .

[6]  M. Schniederjans,et al.  Using the analytic hierarchy process and multi-objective programming for the selection of cost drivers in activity-based costing , 1997, Eur. J. Oper. Res..

[7]  R. S. Lashkari,et al.  A model of machine-tool selection and operation allocation in FMS , 1998 .

[8]  T. Saaty,et al.  The Analytic Hierarchy Process , 1985 .

[9]  William J. Kolarik,et al.  Strategic planning in manufacturing systems: AHP application to an equipment replacement decision , 1995 .

[10]  Masood A. Badri,et al.  Combining the analytic hierarchy process and goal programming for global facility location-allocation problem , 1999 .

[11]  Tai-Yue Wang,et al.  Machine selection in flexible manufacturing cell: A fuzzy multiple attribute decision-making approach , 2000 .

[12]  Lawrence C. Leung,et al.  A Multi-Attribute Product Life-Cycle Approach to Replacement Decisions: An Application of Saaty's System-With-Feedback Method , 1993 .

[13]  A. Aschner,et al.  Planning for CIM , 1991 .

[14]  Joseph Sarkis,et al.  Analyzing organizational project alternatives for agile manufacturing processes: An analytical network approach , 1999 .

[15]  Mario T. Tabucanon,et al.  Decision support system for multicriteria machine selection for flexible manufacturing systems , 1994 .

[16]  Nallan C. Suresh,et al.  Flexible automation investments: a synthesis of two multi-objective modeling approaches , 1992 .

[17]  Seyed Hassan Ghodsypour,et al.  A decision support system for supplier selection using an integrated analytic hierarchy process and linear programming , 1998 .

[18]  Heng Li,et al.  Analytic hierarchy process , 2001 .

[19]  Joseph Sarkis,et al.  Justifying strategic alliances and partnering: a prerequisite for virtual enterprising , 1997 .

[20]  Peter L. Primrose,et al.  Investment in Manufacturing Technology , 1992 .

[21]  Masood A. Badri,et al.  A combined AHP}GP model for qualitycontrol sy stems , 2001 .

[22]  Amiya K. Chakravarty,et al.  Strategic acquisition of new manufacturing technology: a review and research framework , 1992 .