Valuation Of Design Adaptability In Aerospace Systems Book

As more information is brought into early stages of the design, more pressure is put on engineers to

produce a reliable, high quality, and financially

sustainable product. Unfortunately, requirements

established at the beginning of a new project, and their environment, continue to change in some

unpredictable ways. Robust Design Simulation is a

method that addresses the risk of a new design falling out of value at early stages of production.

Under certain conditions, this method fails to account for the intrinsic value embedded in the

system when certain design features are activated.

This book introduces the concepts of adaptability

and real options to manage risk foreseen in the face

of uncertainty at early design stages. The results

presented in the study contained herein show the

benefits of real options analysis during the design

process of aerospace systems. These include: a

better management of design features over time, a

better view of uncertainty around future technology economics, a good understanding of adaptability

value over time, and a consistent risk reduction with respect to alternatives in which flexibility was not embedded.