Architectural Valuation using the Design Structure Matrix and Real Options Theory

Sharman, David; Yassine, Ali A.

doi:10.1177/1063293x07079320

Cited by 35 publications

(19 citation statements)

References 21 publications

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“…38 The product cost can be evaluated for different module sizes and levels. 39 An optionpricing method has been used to plan the modules to add, reject, and merge to form different configurations at each stage of the module introduction processes. 40 However, these module-planning methods cannot capture all aspects of modularity for OAP design, particularly for personalised module planning.…”

Section: Related Researchmentioning

confidence: 99%

Development of a paper-bag-folding machine using open architecture for adaptability

Zhao

Peng

2015

Proceedings of the Institution of Mechanical Engineers, Part B:

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Open architecture provides a sustainable product framework for mass personalised production. Applying personalised modules and common interfaces, an open-architecture product can satisfy changes in the user requirements of an application. Planning product modules for the open-architecture product structure using the existing method is challenging. The quality function deployment is extended in this study to decide the open-architecture product module types. The customer requirements are divided into two parts: basic function needs and changes of the individual customer needs. Based on the axiomatic design, the functional requirements are mapped into design parameters to establish the design matrix. A degree of variety is proposed as a quantitative measure for the component variability of product modules. According to the relationship of components and degree of variety, the product components are clustered into openarchitecture product modules. The proposed method is used to design a paper-bag-folding machine to satisfy requirement changes during the machine application.

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Section: Related Researchmentioning

confidence: 99%

Development of a paper-bag-folding machine using open architecture for adaptability

Zhao

Peng

2015

Proceedings of the Institution of Mechanical Engineers, Part B:

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“…Prior work on real options identification using DSMs is focused on analysis of flexibility enabled by the technical system design (such as real options in design [56]- [60] and modular architectures [4], [61], [62]). There are two associated limitations.…”

Section: A Requirements 1 Andmentioning

confidence: 99%

A Logical Approach to Real Options Identification With Application to UAV Systems

Mikaelian

Rhodes

Nightingale

et al. 2012

IEEE Trans. Syst., Man, Cybern. A

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Abstract-Complex systems are subject to uncertainties that may lead to suboptimal performance or even catastrophic failure if unmanaged. Uncertainties may be managed through real options that provide a decision maker with the right, but not the obligation, to exercise actions in the future. While real options analysis has traditionally been used to quantify the value of such flexibility, this paper is motivated by the need for a structured approach to identify where real options are or can be embedded for uncertainty management. We introduce a logical model-based approach to identification of real option mechanisms and types, where the mechanism is the enabler of the option, while the type refers to the flexibility provided by the option. First, we extend the classical design structure matrix and the more general multipledomain matrix (MDM), commonly used in modeling and analyzing interdependencies in complex socio-technical systems, to the more expressive Logical-MDM that supports the representation of flexibility. Second, we show that, in addition to flexibility, two new properties, namely, optionability and realizability, are relevant to the identification of real options. We use the Logical-MDM to estimate flexibility, optionability, and realizability metrics. Finally, we introduce the Real Options Identification (ROI) method based on these metrics, where the identified options are valued using standard real options valuation methods to support decision making under uncertainty. The expressivity of the logic combined with the structure of the dependency model allows the effective representation and identification of mechanisms and types of real options across multiple domains and lifecycle phases of a system. We demonstrate this approach through a series of unmanned air vehicle scenarios.Index Terms-Complex systems, decision making under uncertainty, design structure matrix (DSM) model, flexibility, multiple-domain matrix (MDM), real options, unmanned air vehicles (UAVs).

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“…DSM is a matrix representation of a directed graph, which allows the project or engineering manager to represent important task relationships in order to determine a sensible sequence for the tasks being modeled [7,8]. As compared to Critical Path Method (CPM) and Program Evaluation and Review Technique(PERT), DSM is more suitable for planning information flow in PD project [9][10][11]. The rows and columns of DSM correspond to the tasks, and the matrix reveals the inputs and outputs of tasks, by manipulating the matrix, the feedback marks can be eliminated or reduced, this process is called partitioning [12,13].…”

Section: Introductionmentioning

confidence: 99%

Information Flow Scheduling in Concurrent Multi-Product Development Based on DSM

Sun

Huang

Jiang

et al. 2017

Chin. J. Mech. Eng.

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Multi-product collaborative development is adopted widely in manufacturing enterprise, while the present multi-project planning models don't take technical/data interactions of multiple products into account. To decrease the influence of technical/data interactions on project progresses, the information flow scheduling models based on the extended DSM is presented. Firstly, information dependencies are divided into four types: series, parallel, coupling and similar. Secondly, different types of dependencies are expressed as DSM units, and the extended DSM model is brought forward, described as a block matrix. Furthermore, the information flow scheduling methods is proposed, which involves four types of operations, where partitioning and clustering algorithm are modified from DSM for ensuring progress of high-priority project, merging and converting is the specific computation of the extended DSM. Finally, the information flow scheduling of two machine tools development is analyzed with example, and different project priorities correspond to different task sequences and total coordination cost. The proposed methodology provides a detailed instruction for information flow scheduling in multi-product development, with specially concerning technical/data interactions.

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Architectural Valuation using the Design Structure Matrix and Real Options Theory

Cited by 35 publications

References 21 publications

Development of a paper-bag-folding machine using open architecture for adaptability

Development of a paper-bag-folding machine using open architecture for adaptability

A Logical Approach to Real Options Identification With Application to UAV Systems

Information Flow Scheduling in Concurrent Multi-Product Development Based on DSM

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