Identifying investment opportunities for advanced manufacturing systems with comparative-integrated performance measurement

Traditional financial performance measurement systems have been criticized for their inadequacy as an evaluation tool for today's advanced manufacturing systems. We therefore propose a new performance measurement system under activity-based costing environment in order to consider financial and non-financial criteria simultaneously. The primary objective of this system is to provide managers with an integral view of an activity in a comparative manner, and ultimately lead them to identify new activity investment opportunities. Main stages of the system involve (1) identifying significant activities by a Pareto analysis, (2) measuring multi-attribute performances of chosen activities, (3) computing comparative-integrated performance measure by TOPSIS, a multiple attribute decision-making method, and (4) taking appropriate actions through the sensitivity analysis. In order to show the efficacy of the proposed system, a case problem is presented.