Investments in Technology Increasing Investment Thesis

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Take for example investments in quality management as part of the industry-wide supply chain. Process re-engineering of these areas could dramatically reduce the amount of shortages and overages in the supply chain of not only gasoline but the key chemicals and raw materials necessary for its production. Second, the processes of gasoline refining could be made more efficient through process re-engineering and then automated to make them more cost effective over time. The bottom line is that the fluctuations in gasoline prices should not be a decision factor in investing in improving gasoline production efficiency.

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Rather, the continual pursuit of greater efficiencies in the entire process of gasoline production must first be considered if the entire industry is going to stay profitable and have the potential for longer-term growth. (Lin, Fan, Newman, 2009)

Huiping Lin, Yushun Fan, Stephen T. Newman. (2009). Manufacturing process analysis with support of workflow modelling and simulation. International Journal of Production Research, 47(7), 1773. Retrieved March 6, 2009,….....

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