Valuing Flexibility For Complex Engineering Systems


Principal Investigator: Dr. Abhijit Deshmukh, Purdue University (abhi@purdue.edu)

Timeframe:  August 2011 to September 2012

Category:  Systems Engineering and Systems Management Transformation


Description

Objectives: To identify, develop, and validate sound Methods, Processes, and Tools (MPTs) to enable DoD leadership and program managers to make a convincing case for investments in system flexibility when acquisition decisions are made.

Approach:

  • In the first research thrust, a taxonomy of methods for valuing flexibility was developed. This taxonomy is designed around salient system characteristics in order to allow a decision-maker to select an appropriate method for valuing flexibility. Initial development created a software implementation of the Flexibility Valuation Method Selection Tool. Additionally, a series of cases illustrated how varying assumptions necessitates varying tools for valuing flexibility in the case of operating an observation satellite.
  • In the second research thrust, new tools were developed for estimating operation and support costs to improve Life Cycle Cost estimates. Validated macro-stochastic models were developed which demonstrated the ability to improve estimates of O&S costs for SARs. These models may provide significant value to decision-makers designing and investing in flexibility through improved cost estimates.
  • In the third research thrust, a detailed case study of valuing flexibility in ship maintenance was presented using data from both U.S. and Dutch naval experience. Knowledge Value Added and Integrated Risk Management models were used to assess technology implementation processes in order to maximize value of flexibility.

Publications

Publications:  

  • Boehm, B., Lane, J., Koolmanojwong, S. “An Orthogonal Framework for Improving Life Cycle Affordability”, Proceedings from the 11th Annual Conference on Systems Engineering Research (CSER), March 19-22, 2013, Atlanta, GA
  • Kukreja, N., Payyavula, S., Boehm, B., Padmanabh, S. “Value-Based Requirements Prioritization: Usage Experiences”, Proceedings from the 11th Annual Conference on Systems Engineering Research (CSER), March 19-22, 2013, Atlanta, GA

Research Team

Researchers

  • Dr. Abhijit Deshmukh, Purdue University
  • Dr. David Jacques, Air Force Institute of Technology
  • Dr. Erin Ryan, Air Force Institute of Technology
  • Dr. Tom Housel, Naval Postgraduate School
  • Dr. Brandon Pope, Purdue University
  • Dr. Martin Wortman, Texas A&M University
  • Dr. Barry Boehm, University of Southern California
  • Dr. Supannika Koolmanojwong, University of Southern California
  • Dr. Jo Ann Lane, University of Southern California
  • Dr. Alan Levin, University of Southern California
  • Dr. Kevin Sullivan, University of Virginia
  • Dr. Paul Callopy, Value Driven Design Institute

Collaborating Institutions

Project Researchers