System development planning using readiness levels in a cost of development minimization model

Romulo B. Magnaye, Brian J. Sauser and Jose E. Ramirez‐Marquez

Systems Engineering, 2010, vol. 13, issue 4, 311-323

Abstract: The purpose of this paper is to describe a methodology that enables systems engineers or program managers to formulate a system‐wide optimal development plan in order to facilitate monitoring and evaluation of the development process in terms of the actual readiness of the system. It proposes the use of the System Readiness Level (SRL) scale to measure the maturity of a system composed of technological elements, which are being developed based on cost‐driven strategies (as opposed to time‐to‐market‐driven strategies). A constrained optimization model is used to identify which critical technology elements and integration links can be matured to which levels at a particular time such that the development costs are minimized while a targeted SRL value is attained on schedule. While the algorithm does not necessarily reduce the total cost of development, it is able to find the minimal amount of expenditures which will achieve the desired maturity level during the earlier part of the development process. Essentially, it shifts the rest of the expenditures towards the latter part of the development during which model‐based integration and testing procedures which have been suggested by others can be applied to reduce costs and time further. This can be a useful option to have when there is substantial uncertainty with the system due to its high novelty and technological content. As a value added approach, the model gives the systems engineer the information needed to understand what a delay may mean to development, so a more informed decision can be made. The paper concludes by discussing the possible use of the optimal development plan to monitor and control the progress of systems under development. © 2009 Wiley Periodicals, Inc. Syst Eng

Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:wly:syseng:v:13:y:2010:i:4:p:311-323

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