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Currently, the automobile industry faces increasing pressure to reduce the weight of vehicles in order to realize better fuel economy and reduced polluting emissions. Therefore, the long-term dominance of steel and iron as the main ferrous metals used in vehicles is about to change. Aluminum has become a prime candidate to replace steel. However, the decision to use steel or aluminum is a complex one, requiring a sophisticated decision model. This paper generalizes and applies de Korvin and Kleyle's (1999) fuzzy-analytic-hierarchical- process (FAHP) model. This generalized FAHP model is a powerful tool to tackle many complex decisions without relying on limiting definitions or unrealistic assumptions. The paper uses a concrete illustration to simplify the intricate methodology of FAHP that should help managers and controllers apply this model.

This paper presents an application of target cost management (TCM) to the design of product safety in the automobile industry. Product safety occupies a prominent position among corporate strategic plans because safety issues can drive a company to the brink of bankruptcy and even threaten the entire existence of an industry. Safety issues contain legal, marketing, technological, cost and other dimensions, all of which demand ever-greater emphasis on this issue. At the same time, safety has become a moving target whose meaning is subject to court interpretation and societal norms. However, safety cannot be augmented infinitely. A manufacturer is constrained by cost and profitability benchmarks. Companies can use TCM to optimize their focus on safety issues. This paper shows how value engineering (VE), a TCM technique, can help minimize the costs of safety components, while satisfying engineering, product and customer concerns.

This paper elucidates the major issues complicating strategic investment decisions in manufacturing waste systems. The analytic hierarchy process (AHP), an innovative approach in decision theory, is applied to these decisions in a manufacturing plant at General Motors Corporation. When compared with capital budgeting models, AHP is found to offer a superior approach due to its comprehensive mechanism, a feature urgently needed to handle the increasing legal, economic and technological complexities of manufacturing wastes.