Analysis and Applications of Design Structure Matrix, Domain ... - MIT
Analysis and Applications of Design Structure Matrix, Domain ... - MIT
Analysis and Applications of Design Structure Matrix, Domain ... - MIT
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Coupling can also relate to processes <strong>and</strong> organizations. For instance, DSM techniques<br />
can be applied to the original design <strong>of</strong> an organization or to the redesign <strong>of</strong> an<br />
organization (Dahlgren <strong>and</strong> Cokus 2007). The type <strong>of</strong> information provided in an<br />
organizational DSM can also aid designers to determine the degree <strong>of</strong> coupling that is<br />
required between individuals performing the functions. For instance, in a small world<br />
network an organization has a mix <strong>of</strong> tight <strong>and</strong> loose couples. Those people requiring<br />
tight couples may need to communicate or interact frequently. Those people may also<br />
need to be collocated together to improve efficiency <strong>and</strong> effectiveness. Furthermore, by<br />
looking across social <strong>and</strong> technical domains, a DSM that shows the linkage between<br />
people on a project <strong>and</strong> between tasks may help engineers <strong>and</strong> managers improve<br />
underst<strong>and</strong>ing <strong>of</strong> the organization evolution. The clustering coefficient (CC) is the<br />
organizational equivalent <strong>of</strong> the coupling coefficient for component DSMs: CC = # tight<br />
connections/# possible tight connections (Barabasi 2003). Too many tight connections<br />
will lead to a task or project that fails to utilize long-reach connections to leverage work<br />
done by other organizations (Dahlgren 2007).<br />
<strong>MIT</strong>RE recently applied coupling techniques to analyze a components-based DSM for<br />
VISA International. (Cokus <strong>and</strong> Dahlgren 2007) <strong>MIT</strong>RE used high level DSMs in the<br />
analysis <strong>of</strong> historical changes <strong>of</strong> the four major subsystems <strong>of</strong> VISA International: credit<br />
card, card information reader, transmission system, <strong>and</strong> data base. The case study<br />
visually demonstrated the system change over time <strong>and</strong> how VISA International’s<br />
subsystems became more loosely coupled. Interactions were ranked as High, Medium, or<br />
Low to show historical system changes. As the subsystems became more loosely coupled,<br />
the overall VISA International system became more efficient to operate <strong>and</strong> easier for the<br />
customers to use (Cokus <strong>and</strong> Dahlgren 2007). Transactions were completed much faster<br />
<strong>and</strong> likely with much greater accuracy, which helped make credit cards a useful tool.<br />
Real Options<br />
To better manage the uncertainties surrounding engineering systems, engineers are<br />
devising new methods to designing systems that are flexible. “One <strong>of</strong> the challenges for<br />
designers is to identify where in the system to lay in flexibility, or real options, that allow<br />
systems designers <strong>and</strong> managers to easily change the system in order to maximize benefit<br />
<strong>and</strong> minimize cost.” (Bartolomei 2007) Strategies <strong>and</strong> methods for valuing flexibility<br />
are well documented in real options literature; however few have focused on how to<br />
screen a system to identify the best opportunities for options, or the “hot” spots in the<br />
design.<br />
Real Options <strong>Analysis</strong> (ROA) can be applied “on” a system or “in” a system. (Wilds <strong>and</strong><br />
Bartolomei, et al 2007) When analyzing options “on” a system, flexibility is external to<br />
the physical design. Alternatively, real options analysis “in” a system requires the flexible<br />
option be internal to the physical design. A real option “in” requires deep knowledge<br />
about the structure <strong>and</strong> behavior <strong>of</strong> the technical system.<br />
ROA tools can be used by system designers, manufacturers, <strong>and</strong> consumers alike to make<br />
informed decisions about the value <strong>of</strong> adding flexibility to the system at various stages <strong>of</strong><br />
development. This is most useful early in the development process when opportunities<br />
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