Publicação
Assessing the usage of 5G technology at Bosch-Braga: Financial evaluation of the implementation of an automated guided vehicle
| Resumo: | With the manufacturing world looking yet again towards a major hallmark of innovation with the vision of Industry 4.0, the companies and organizations inserted in the global marketplace and the inherent highly competitive environment are going to great lengths to develop new technologies and processes which will enable their factories to perform more intelligent, connected, nimbler, and consequentially, more efficient processes. Aligned with these industry efforts, Bosch-Braga is evaluating investment on a partially public funded research and development project that has as its aim the development of a new way of operating its assembly lines. Using collaborative autonomous guided vehicles, capable of transporting and handling complex and fragile parts, it sees potential for considerable cost reduction and efficiency improvements. A capital budgeting analysis of this project was done using the net present value and complemented by sensitivity analysis, break-even analysis, and Simulation. Additionally, the option to divest investment in a best-case scenario after technological uncertainty is resolved is also studied. The project exhibits a positive net present value signaling a green light for investment. The main value drivers are automation, and the public funding aspect, without which the project would become a no-go for the company. Real option analysis yielded that deferral of investment is never optimal once technological uncertainty has been resolved. |
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| Autores principais: | Meireles, Adelino Morgado |
| Assunto: | Automation Industry 4.0 Capital Budgeting Net present value (NPV) Real Options Ciências Sociais::Economia e Gestão |
| Ano: | 2022 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade do Minho |
| Idioma: | inglês |
| Origem: | RepositóriUM - Universidade do Minho |
| Resumo: | With the manufacturing world looking yet again towards a major hallmark of innovation with the vision of Industry 4.0, the companies and organizations inserted in the global marketplace and the inherent highly competitive environment are going to great lengths to develop new technologies and processes which will enable their factories to perform more intelligent, connected, nimbler, and consequentially, more efficient processes. Aligned with these industry efforts, Bosch-Braga is evaluating investment on a partially public funded research and development project that has as its aim the development of a new way of operating its assembly lines. Using collaborative autonomous guided vehicles, capable of transporting and handling complex and fragile parts, it sees potential for considerable cost reduction and efficiency improvements. A capital budgeting analysis of this project was done using the net present value and complemented by sensitivity analysis, break-even analysis, and Simulation. Additionally, the option to divest investment in a best-case scenario after technological uncertainty is resolved is also studied. The project exhibits a positive net present value signaling a green light for investment. The main value drivers are automation, and the public funding aspect, without which the project would become a no-go for the company. Real option analysis yielded that deferral of investment is never optimal once technological uncertainty has been resolved. |
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