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Such as system is proposed in some detail in an essay by Michael Lippitz, Sean O'Keefe, and John White.<ref>{{cite book |
Such as system is proposed in some detail in an essay by Michael Lippitz, Sean O'Keefe, and John White.<ref>{{cite book |
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</ref> They suggest that "A program office can offer a contract in which price is a function of value," where the function is derived from a value model. The price function is structured so that, in optimizing the product design in accordance with the value model, the contractor will maximize its own profit. They call this system '''Value Based Acquisition'''. |
</ref> They suggest that "A program office can offer a contract in which price is a function of value," where the function is derived from a value model. The price function is structured so that, in optimizing the product design in accordance with the value model, the contractor will maximize its own profit. They call this system '''Value Based Acquisition'''. |
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Value-driven design is a systems engineering strategy based on microeconomics which enables multidisciplinary design optimization. Value-driven design is being developed by the American Institute of Aeronautics and Astronautics, through a program commitee of government, industry and academic representatives.[1] In parallel, the US Defense Advanced Research Projects Agency has promulgated an identical strategy, calling it Value Centric Design, on the F6 Program. At this point, the terms Value-driven design and Value Centric Design are interchangeable. The essence of these strategies is that design choices are made to maximize system value rather than to meet performance requirements. Value-driven design is controversial because performance requirements are a central element of systems engineering.[2] However, Value-Driven Design supporters claim that it can improve the development of large aerospace systems by reducing of eliminating cost overruns[3] which are a major problem, according to independent auditors.[4]
Concept
Value-driven design is about creating an environment that enables and encourages design optimization.
A workshop exercise implementing value-driven design for a global positioning satellite was conducted in 2006, and can be used as an example of the process.[5]
History
Value-Based Acquisition
Implementation of value-driven design on large government systems, such as NASA or ESA spacecraft or weapon systems, will require a government acquisition system that directs or incentivizes the contractor to employ a value model.[6] Such as system is proposed in some detail in an essay by Michael Lippitz, Sean O'Keefe, and John White.[7] They suggest that "A program office can offer a contract in which price is a function of value," where the function is derived from a value model. The price function is structured so that, in optimizing the product design in accordance with the value model, the contractor will maximize its own profit. They call this system Value Based Acquisition.
References
- ^ "AIAA Program Committees". Retrieved 2009-05-24.
- ^ Kapurch, Stephen J.; et al. (2007). NASA Systems Engineering Handbook, NASA/SP-2007-6105 Rev 1, page 43 (PDF). National Aeronautics and Space Administration. Retrieved 2009-05-24.
{{cite book}}: Explicit use of et al. in:|author=(help) - ^ Collopy, Paul (2007). "Adverse Impact of Extensive Attribute Requirements on the Design of Complex Systems" (PDF). AIAA Paper 2007-7820, American Institute of Aeronautics and Astronautics, Reston, VA. Retrieved 2009-05-24.
{{cite journal}}: Cite journal requires|journal=(help) - ^ Mullins, Brian. Defense Acquisitions: Assessments of Selected Weapon Programs (Report). GAO report GAO-08-467SP 2007-7820, American Institute of Aeronautics and Astronautics, Reston, VA. Retrieved 2009-05-24.
{{cite report}}: Unknown parameter|data=ignored (|date=suggested) (help) - ^ Collopy, Paul (2006). "Value-Driven Design and the Global Positioning System" (PDF). AIAA Paper 2006-7213. American Institute of Aeronautics and Astronautics, Reston, VA. Retrieved 2009-05-24..
{{cite journal}}: Check date values in:|accessdate=(help); Cite journal requires|journal=(help) - ^ Brown, Owen, and Eremenko, Paul (2008). "Application of Value-Centric Design to Space Architectures: The Case of Fractionated Spacecraft" (PDF). Pages 29-31, AIAA-2008-7869, American Institute of Aeronautics and Astronautics. Retrieved 2009-05-24.
{{cite journal}}: Cite journal requires|journal=(help)CS1 maint: multiple names: authors list (link) - ^ Carter, Ashton B., and White, John P. (2000). Keeping the Edge: Managing Defense for the Future. Pages 194-202, The MIT Press, Cambridge, MA. Retrieved 2009-05-24.
{{cite book}}: CS1 maint: multiple names: authors list (link)