American Journal of Engineering and Technology Management
Volume 4, Issue 2, April 2019, Pages: 47-56
Received: Apr. 25, 2019;
Accepted: May 29, 2019;
Published: Jun. 12, 2019
Views 44 Downloads 10
Joseph R. Laracy, Department of Mathematics and Computer Science, Seton Hall University, South Orange, USA; Department of Systematic Theology, Seton Hall University, South Orange, USA
Thomas Marlowe, Department of Mathematics and Computer Science, Seton Hall University, South Orange, USA
Software and systems engineering for aerospace platforms presents many unique challenges. The decision if, and how, to employ software product line architectures is one recurring question. Real options analysis—applying option valuation techniques to budgeting decisions—can be a powerful tool for engineering managers, project leaders, and mission directors. In this paper, we demonstrate a real options valuation approach to explore this question.
Joseph R. Laracy,
A Real Options Analysis of Spacecraft Software Product Line Architectures, American Journal of Engineering and Technology Management.
Vol. 4, No. 2,
2019, pp. 47-56.
Jim Bridenstine, “NASA Administrator Statement on Return to Moon in Next Five Years,” Text, NASA, last modified March 26, 2019, accessed March 27, 2019, http://www.nasa.gov/press-release/nasa-administrator-statement-on-return-to-moon-in-next-five-years.
For example, see JPL Special Review Board, Report on the Loss of the Mars Polar Lander and Deep Space 2 Missions, March 22, 2000, accessed March 25, 2019, https://spaceflight.nasa.gov/spacenews/releases/2000/mpl/mpl_report_1.pdf.
Israel Gat and Christof Ebert, “Technical Debt as a Meaningful Metaphor for Code Quality,” IEEE Software 29, no. 6 (November 2012): 18–21.
“Software Product Lines Collection,” Carnegie Mellon Software Engineering Institute, accessed March 25, 2019, https://resources.sei.cmu.edu/library/asset-view.cfm?assetid=513819.
Charles W. Krueger, “Introduction to the Emerging Practice of Software Product Line Development,” Methods and Tools, last modified Fall 2006, accessed March 25, 2019, http://www.methodsandtools.com/archive/archive.php?id=45.
Martin Fowler, with Kurt Beck, Refactoring: Improving the Design of Existing Code, 2nd edition, Addison Wesley Signature Series (Boston, MA: Addison Wesley, 2019).
Craig Larman, Applying UML and Patterns: Introduction to Object-Oriented Analysis & Design & Iterative Development, 3rd edition (Upper Saddle River, NJ: Prentice Hall, 2005).
Kathryn Anne Weiss, “Incorporating Modern Development and Evaluation Techniques into the Creation of Large-Scale, Spacecraft Control Software” (PhD, Massachusetts Institute of Technology, 2006), 3, accessed March 25, 2019, http://dspace.mit.edu/handle/1721.1/35591.
For more information, see Stephen Figlewski, William Silber, and Marti Subrahmanyam, Financial Options: From Theory to Practice (New York: McGraw-Hill, 1992).
See Richard de Neufville, “Real Options: Dealing with Uncertainty in Systems Planning and Design,” Integrated Assessment 4, no. 1 (2003): 26–34; Richard de Neufville and Stefan Scholtes, Flexibility in Engineering Design, Engineering Systems (Cambridge, MA: The MIT Press, 2011).
David Socha, Tyler C. Folsom, and Joe Justice, “Applying Agile Software Principles and Practices for Fast Automotive Development,” Proceedings of the FISITA 2012 World Automotive Congress, Lecture Notes in Electrical Engineering, vol. 196 (Berlin: Spring): 1033–1045.
Jörgen Furuhjelm, Johan Segertoft, Joe Justice, and J. J. Sutherland, “Owning the Sky with Agile: Building a Jet Fighter Faster, Cheaper, Better with Scrum,” Global Scrum Gathering, San Diego, CA 2017.
For more information on decision trees, see Donald Dibra, Project Valuation and Decision Making under Risk and Uncertainty Applying Decision Tree Analysis and Monte Carlo Simulation (Norderstedt, Germany: Books on Demand, 2015).
For context, the costs of the Apollo spacecraft and Saturn rockets came to about $107.43 billion in 2019 dollars. See John Noble Wilford, We Reach the Moon: The New York Times Story of Man’s Greatest Adventure (New York: Bantam Books, 1969): 67.