A methodology for linking three efficiencies for capital expenditure justification

This thesis develops and demonstrates a methodology for formulating a link between physical efficiency, economic efficiency, and organizational efficiency, and then uses the link developed earlier for justifying capital expenditures. Two scenarios have been used to demonstrate the methodology in two phases. The first phase deals with the formulation of the link between physical efficiency, economic efficiency, and organizational efficiency. The second phase uses the methodology developed in phase one to perform a multi-period analysis. This multi-period analysis shows that an increase in the efficiency of the physical environment results in an increase in the efficiency of the economic environment for two hypothetical companies. The increase in the efficiency of the economic environment results in increased profits, which are a necessary but not sufficient condition for the existence of the organization. The increase in profits further leads to satisfaction of individual wants for four classes of contributors to the organization, and, thus, to an increase in the overall efficiency of the organizational process.

Name thesis:degree_name

Master of Science

Level thesis:degree_level

masters

Discipline thesis:degree_discipline

Industrial Engineering and Operations Research

Department dc:contributor.department

Industrial Engineering and Operations Research

Grantor dc:publisher

Virginia Tech

Year dc:date.issued

1988

Author dc:creator

• Singhal, Vikas

Chair dc:contributor.committeechair

• Freeman, H. JoAnne

Committee members dc:contributor.committeemember

• Fabrycky, Wolter J.
• Greene, Timothy J.

Statement dc:rights

• In Copyright

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Dc Identifier Other

etd-09082012-040544

OAI identifier oai:identifier

oai:vtechworks.lib.vt.edu:10919/44690