A Decision-Analytic Feasibility Study of Upgrading Machinery at a Tools Workshop


  • M. L. Chew Hernandez Department of Grad. Studies and Research, Technological Institute of High Studies of Coacalco, Mexico
  • E. K. Velazquez Hernandez Department of Industrial Engineering, Technological Institute of High Studies of Chalco, Mexico
  • S. Leon Dominguez Department of Industrial Engineering, Technological Institute of High Studies of Chalco, Mexico


This paper presents the evaluation, from a Decision Analysis point of view, of the feasibility of upgrading machinery at an existing metal-forming workshop. The Integral Decision Analysis (IDA) methodology is applied to clarify the decision and develop a decision model. One of the key advantages of the IDA is its careful selection of the problem frame, allowing a correct problem definition. While following most of the original IDA methodology, an addition to this methodology is proposed in this work, that of using the strategic Means-Ends Objective Network as a backbone for the development of the decision model. The constructed decision model uses influence diagrams to include factual operator and vendor expertise, simulation to evaluate the alternatives and a utility function to take into account the risk attitude of the decision maker. Three alternatives are considered: Base (no modification), CNC (installing an automatic lathe) and CF (installation of an automatic milling machine). The results are presented as a graph showing zones in which a particular alternative should be selected. The results show the potential of IDA to tackle technical decisions that are otherwise approached without the due care.


decision analysis, equipment replacement, integral decision analysis, utility


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How to Cite

M. L. Chew Hernandez, E. K. Velazquez Hernandez, and S. Leon Dominguez, “A Decision-Analytic Feasibility Study of Upgrading Machinery at a Tools Workshop”, Eng. Technol. Appl. Sci. Res., vol. 2, no. 2, pp. 182–189, Apr. 2012.


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