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Analyses the environment and characteristics of an advanced manufacturing system (AMS). It is an open system with a multi‐layer structure and a self‐organizing ability capable of responding to a continuous changing and unpredictable environment in this information age. Based on the analysis, summarizes the requirements of decision processes in a typical AMS, and presents a framework of a decision‐support system (DSS) in an advanced manufacturing enterprise. Outlines the conceptual modelling of the system, explains the work carried out by an inter‐disciplinary team composed of researchers from the 863/CIMS/I‐MADIS, a national hi‐tech R&D programme in China and a joint research programme in computer integrated manufacturing management between the City University of Hong Kong and Tsinghua University, Beijing. 863/CIMS is one of the subject themes under the auspices of automation technology of the National High Technology Research and Development Programme of China launched by the government in March 1986.

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