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Flexible Automation and Integrated Manufacturing 1999

ISBN Print: 978-1-56700-133-4

ACTIVITY BASED MANAGEMENT AS A TOOL OF LEAN MANUFACTURING FOR CAPITAL INVESTMENT ANALYSIS

Abstract

This paper presents a capital investment analysis of bar coding equipment in the Receiving Department of a typical firm. The evaluation assumes that a lean manufacturing system is being implemented by the firm. Because activity based management (ABM) is a tool of lean manufacturing, ABM is used to demonstrate how activity improvement (time, quality and/or cost) forms the basis for deciding whether capital investment is necessary and can be justified in innovative proposed uses of new technology.
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