Affordability Tradeoffs Under Uncertainty Using Epoch-Era Analysis
Acquisition research program
MASSACHUSETTS INST OF TECH CAMBRIDGE
Pagination or Media Count:
Acquiring defense systems in the face of urgent needs, budget challenges and scarce resources drives the need for greater process efficiency, placing focus on designing for affordability as a requirement. While there is progress, an efficient process for early lifecycle affordability tradeoff that takes uncertainty into account is lacking. Methods for exploring design tradespaces have matured, but largely fall short in evaluatingselecting resilient system concepts, meaning affordably adaptable under uncertain futures. Affordability tradeoffs are possible, but limited to tradeoffs for current operating environments or single point futures. As such, its not possible to truly evaluate system concepts for resiliency since this necessitates evaluation across many alternative futures that may unfold differently. A recently developed approach, Epoch-Era Analysis, provides the ability to evaluate system concepts for both multiple epochs periods of fixed context and needs and eras ordered sequences of epochs. This research has demonstrated usefulness of Epoch-Era Analysis in time-related affordability tradeoffs, with concurrent consideration of affordability with other key decision criteria, such as performance uncertainty. Short-run and long-run impacts of decisions in the face of temporally unfolding uncertainties are explicitly addressed by encapsulating key uncertainty factors into epochs and eras. A beta-level affordability tradeoff method with case application has been developed in this one-year research study.
- Economics and Cost Analysis