A methodology for linking three efficiencies for capital expenditure justification
<p>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 method...
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| Format: | Others |
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Virginia Tech
2014
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| Online Access: | http://hdl.handle.net/10919/44690 http://scholar.lib.vt.edu/theses/available/etd-09082012-040544/ |
| Summary: | <p>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.</p> === Master of Science |
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