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Using the MODO in Capital Expenditure

Journal: International Journal of Advanced engineering, Management and Science (Vol.5, No. 6)

Publication Date:

Authors : ;

Page : 427-437

Keywords : Capital Expenditures; Operations Strategy; MODE; Competitive Positioning; Decision Making.;

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The study presents a methodology for the analysis of new investments in property, plant and equipment from the use of operational performance objectives as a premise for decision-making. Qualitatively, we used the product of this study — operations performance matrix. The matrix was then applied through a survey of a sample of footwear companies in the region of Jaú, state of São Paulo, Brazil. The correlations between the scores obtained for each operational performance objective were tested. The analysis of the regression coefficients associated to each independent variable (quality, reliability, speed and flexibility) allowed to conclude that all the questions had a positive impact on the dependent variable (costs), indicating a positive correlation. This survey demonstrated the utility of the proposed methodology when using as a premise for decision the performance objectives of operations that demonstrated that the dependent variable is the consequence and not the cause as treated in the conventional investment analysis that uses the cash flow logic and value present as a decision factor. However, the methodology presented as a complementary form is the analysis of investments of this nature in relation to techniques widely used by the market that adopt the financial results projected as critical success factors.

Last modified: 2019-09-10 13:51:07