Measuring the Value of Flexibility in Space Systems: A Six-Element Framework

• Published in: Systems engineering 2007-03, Vol.10 (1), p.26-44
• Main Authors: Nilchiani, Roshanak, Hastings, Daniel E.
• Format: Article
• Language: English
• Subjects: Applied sciences; Decision theory. Utility theory; engineering systems; Exact sciences and technology; Operational research and scientific management; Operational research. Management science; real options analysis; space systems; system flexibility; uncertainty; value of flexibility
• ISSN: 1098-1241; 1520-6858
• DOI: 10.1002/sys.20062

For many engineering systems, flexibility is an important attribute that allows them to adapt to emerging changes. The existence of flexibility can help space systems adapt themselves to internal/external changes, or even take advantage of new possibilities while in space. Given the potential upfront cost of designing an engineering system to be more flexible, there is a need for a comprehensive framework that allows decision‐makers to measure the value of flexible systems design in its different dimensions. Based on insights from the flexibility literature, this paper proposes a unified and comprehensive framework for measuring the value of flexibility in space systems based on six fundamental elements through which flexibility in engineering systems can be mapped. While the illustrative case study presented in this paper focuses on the value of flexibility in a space system, DARPA's Orbital Express program, this framework could generally be applicable for many other engineering systems. © 2006 Wiley Periodicals, Inc. Syst Eng 10: 26–44, 2007