Author

John Twigg

Date of Award

5-1967

Document Type

Independent Study

Degree Name

Master of Science (MS)

Abstract

In the evolution of technology, automation has emerged as the most significant change in recent years. Modern management must be concerned with the most efficient methods available in the production of capital goods. The decision process of replacing equipment is a continuing function. The concept of automation has intr6duced new considerations into the replacement analysis in such areas as total investment, output, and risk. Automation has a tendency to vary the magnitude of these factors. An analysis of the various criteria for investment under automation shows that the present value of future profit method and the discounted cash flow return on investment method are best. for determining that point when a production facility should be automated

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