A system for determining approval of a multi-currency transaction between a merchant and a customer using currency exchange. The customer and merchant obligations relating to such a transaction can be fixed at the time of the transaction. Risks to these parties heretofore associated with currency exchange is minimized. The parties to a multi-currency transaction authorize an approving entity to settle the transaction. Authorization is granted by virtue of the customer and merchant setting up accounts knowing that transactions will be submitted and processed by the entity holding the accounts. The parties transmit data representing the transaction to the approving entity. This data includes an amount in a first currency that a customer is willing to pay for a product and a price in a different second currency which a merchant is willing to accept for the product. Using predetermined criteria, the approving entity approves the transaction. Once the transaction is approved, the approving entity may settle the transaction at its discretion thereby bearing the risk associated with currency exchange. The parties, however, incur no risk. The customer will pay the amount in the first currency and the merchant will receive the price in the second currency. These are values known and agreed to by the parties at the time of the transaction.

System and method for multi-currency transactions

Alkali-silica reaction: Current understanding of the reaction mechanisms and the knowledge gaps

Multi-attribute equipment selection is a very important issue for an effective manufacturing system, since the improper equipment selection might cause many problems affecting productivity, precision, flexibility and quality of the products negatively. On the other hand, selecting the best equipment among many alternatives is a multi-criteria decision making (MCDM) problem. In this study, an integrated approach which employs analytic hierarchy process (AHP) and preference ranking organization method for enrichment evaluations (PROMETHEE) together, is proposed for the equipment selection problem. The AHP is used to analyze the structure of the equipment selection problem and to determine weights of the criteria, and PROMETHEE method is used to obtain final ranking, and to make a sensitivity analysis by changing the weights. Proposed approach is applied to a problem of selecting milling machines to be purchased in an international company. Company management found the application and results satisfactory and implementable in their equipment selection decisions.

Decision making in equipment selection: an integrated approach with ahp and promethee

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

In spite of the vast research published on lean manufacturing systems in several disciplines in the last decade, the concept remains underdeveloped for two reasons. First, it lacks a generally accepted definition. Different authors define lean in terms of its objectives, which vary, overlap and differ in different firms. Second, no study has developed a systematic and relative measure of lean production systems. With the lack of such a measure, two companies cannot be rated objectively on their progress toward becoming lean. This paper has two goals: first, to define manufacturing leanness as a unifying concept, and, second, to develop a systematic, long-term measure of leanness. Manufacturing leanness is a strategy to incur less input to better achieve the organization's goals through producing better output. The systematic measure of leanness has seven characteristics: relative, dynamic, long-term fuzzy logical, objective, integrative and comprehensive. The leanness measure utilizes the fuzzy-logic methodology since lean is a matter of degree. Applying the measure to compare the production leanness of Ford Motor Company and General Motors, the paper selects Honda Motor Company as the benchmarking firm. Selecting just-in-time (JIT), Kaizen, and quality controls as lean attributes, the paper uses surrogates for these attributes extracted from audited financial statements over the years 2001-2003. The results show that Ford's system is more than 17% leaner than GM's system vis-a-vis the benchmarked company's system.

Measuring the leanness of manufacturing systems-A case study of Ford Motor Company and General Motors

Traditional manufacturing systems are built on the principle of economies of scale. Here, the large fixed costs of production are depreciation-intensive because of huge capital investments made in high-volume operations. These fixed costs are spread over large production batch sizes in an effort to minimize the total unit costs of owning and operating the manufacturing system. As an alternative to ‘‘batch-and-queue,’’ high-volume, and inflexible operations, the principles of the Toyota Production System (TPS) and lean manufacturing have been widely adopted in recent years in the US [1–4]. In this paper, we illustrate an equipment replacement decision problem within the context of lean manufacturing implementation. In particular, we demonstrate how the value stream mapping (VSM) suite of tools can be used to map the current state of a production line and design a desired future state. Further, we provide a roadmap for how VSM can provide necessary information for analysis of equipment replacement decision problems encountered in lean manufacturing implementation. r 2002 Elsevier Science Ltd. All rights reserved.

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Equipment replacement decisions and lean manufacturing

Traditional manufacturing systems are built on the principle of economies of scale. Here, the large fixed costs of production are depreciation-intensive because of huge capital investments made in high-volume operations. These fixed costs are spread over large production batch sizes in an effort to minimize the total unit costs of owning and operating the manufacturing system. As an alternative to “batch-and-queue,” high-volume, and inflexible operations, the principles of the Toyota Production System (TPS) and lean manufacturing have been widely adopted in recent years in the US [1] , [2] , [3] , [4] . In this paper, we illustrate an equipment replacement decision problem within the context of lean manufacturing implementation. In particular, we demonstrate how the value stream mapping (VSM) suite of tools can be used to map the current state of a production line and design a desired future state. Further, we provide a roadmap for how VSM can provide necessary information for analysis of equipment replacement decision problems encountered in lean manufacturing implementation.

A review of: “APPLIED FORECASTING METHODS” by N. T. Thomopoulos, Prentice-Hall, Inc., Englewood Cliffs, New Jersey, iiv + 369 pages, list $24.50

This paper discusses a fundamental change that appears to be occurring in the practical and theoretical aspects of engineering economy. Recent emphasis on the engineer's role in strategic and design-related decision processes has created a very real need for a change in focus in engineering economy technique and methodology. Several areas of research opportunity that arise because of the paradigm shift are also identified herein.

A New Paradigm for Engineering Economy

This paper discusses a measure for estimating the wealth creation potential of capital investments in manufacturing. The measure, called “Economic Value Added,” has recently become popular in the United States and can be derived from an after-tax analysis of cash flows generated by a capital investment. A proposed investment in manufacturing capacity is analyzed to illustrate the after-tax cash flow calculations required to determine its EVA potential.

William G. Sullivan

Papers

Equipment replacement decisions and lean manufacturing

Equipment replacement decisions and lean manufacturing

A review of: “APPLIED FORECASTING METHODS” by N. T. Thomopoulos, Prentice-Hall, Inc., Englewood Cliffs, New Jersey, iiv + 369 pages, list $24.50

A New Paradigm for Engineering Economy

Determination of economic value added for a proposed investment in new manufacturing