TY - JOUR
T1 - Architectural valuation using the design structure matrix and real options theory
AU - Sharman, David M.
AU - Yassine, Ali A.
PY - 2007/6
Y1 - 2007/6
N2 - This study outlines a methodology for the valuation of the architecture of an integrated product or system through an appropriate level of modularization to maximize the societal value created. This method is developed through the application of the design structure matrix (DSM) and real options theory. The DSM method is utilized to develop an improved visibility estimate for non-hierarchic system architectures. A method is also proposed to account for different module sizes and system module level testing costs. Finally, a normalization procedure is proposed that allows comparing alternative modular arrangements of the same underlying system elements. The proposed method serves as the basis of an improved approach for architecture optimization. The proposed method is illustrated using a reference example of an industrial gas turbine.
AB - This study outlines a methodology for the valuation of the architecture of an integrated product or system through an appropriate level of modularization to maximize the societal value created. This method is developed through the application of the design structure matrix (DSM) and real options theory. The DSM method is utilized to develop an improved visibility estimate for non-hierarchic system architectures. A method is also proposed to account for different module sizes and system module level testing costs. Finally, a normalization procedure is proposed that allows comparing alternative modular arrangements of the same underlying system elements. The proposed method serves as the basis of an improved approach for architecture optimization. The proposed method is illustrated using a reference example of an industrial gas turbine.
KW - Architectural optimization
KW - Design structure matrix (DSM)
KW - Modular and integral architectures
KW - Real options theory
UR - http://www.scopus.com/inward/record.url?scp=34250753796&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=34250753796&partnerID=8YFLogxK
U2 - 10.1177/1063293X07079320
DO - 10.1177/1063293X07079320
M3 - Article
AN - SCOPUS:34250753796
SN - 1063-293X
VL - 15
SP - 157
EP - 173
JO - Concurrent Engineering Research and Applications
JF - Concurrent Engineering Research and Applications
IS - 2
ER -