Strategic investment appraisal for advanced manufacturing technology

Investment appraisal techniques are widely used by European organisations. These techniques may be inherently biased against investment in advanced manufacturing technology (AMT). Internal systems of resource allocation may result in loss of competitiveness. The article examines the applicability of the investment appraisal techniques to AMT investments which fall into three broad categories: replacement, inter–functional and intra–functional integrative. A four–phase model for the appraisal of strategic AMT investments is developed, whilst, at the same time, illustrating that, in the case of tactical investments, conventional appraisal techniques will suffice.