Investments in Computer Integrated Manufacturing Technology Essay

Investments in Computer Integrated Manufacturing Technology - Essay Example By thoroughly realizing and examining these questions that need to be addressed, then we will be able to come to a much more informed and understanding viewpoint on this subject matter at hand, and as well we will be able to thus come up with new and innovative strategies in regards to what methods and means should be taken in order to put a more positive spin on this matter overall. This is what will be dissertated in the following. There are truly many different benefits when we speak of the term CIM (computer-integrated manufacturing) issues, and what CIM really is needs to be properly understood before any further measures can be taken in this regards. In all actuality, CIM is "a manufacturing philosophy in which the functions for the organization, from product definition to the disposition of the final product, are achieved using computer, communication, and information technologies" (Wikipedia, 2007). There are basically three different components that are considered and known as being essential in regards to the implementation of flexible design and manufacturing in this regards, and this includes that of the following three components: the means for data storage, retrieval, manipulation and presentation; the mechanisms by which to sense state and modify substance; and lastly, the methodologies by which to unite them. The CIM phase is the phase which is "used to describe the complete automation of a manufacturing plant, with all processes functioning under computer control and digital information tying them together" (Rockford Consulting Group, 1999). Basically then the CIM phase is without a doubt one of the most crucial, and there are quite obviously many different benefits that are gained from CIM overall. Why Might DCF Methods not Take These Benefits Into Consideration When Evaluating CIM Investments There are actually again quite a few answers when it comes to the reasoning as to why DCF methods may not take the benefits that are concluded as being from CIM processes into consideration when they are evaluating CIM investments; first we must understand what the DCF really is, in order to understand better. The DCF (discounted cash flow) is a means in this regards which uses certain methods of analysis which have both in the past and recently come under certain criticism. It really began in the 1980s when the use of these DCF methods began coming under this criticism, and in particular they were found to be especially deficient when they were being used to evaluate investments in CIM technologies, as many critics claimed and pressed to argue the fact that these DCF methods of analys