Assessing strategies for obtaining advanced engineering technologies with highly uncertain benefits

Author

Gagnon, Roger J.

Author_Institution

Babcock Grad. Sch. of Manage., Wake Forest Univ., Winston-Salem, NC, USA

Volume

38

Issue

3

fYear

1991

fDate

8/1/1991 12:00:00 AM

Firstpage

210

Lastpage

223

Abstract

Comprehensive financial methods are presented which can evaluate alternative strategies for obtaining advanced engineering technologies, such as CAD/CAE, when the values of the benefits are highly uncertain or even unknown. The methods integrate traditional financial discounting procedures for known cost data with expert opinions for estimating benefit values and incorporate engineering performance improvement, project volumes ranging from one to infinity, various time horizons, and a comprehensive sensitivity analysis. Realistic strategies and actual case data are used to illustrate the procedures. Impacts from project volume, project benefit values and the selection of the financial evaluation criterion are discussed

Keywords

CAD/CAM; economics; investment; management; project engineering; sensitivity analysis; CAD/CAE; advanced engineering technologies; cost; economics; financial discounting; investment; management; performance; project; sensitivity analysis; Appropriate technology; Cost benefit analysis; Design automation; Design engineering; Engineering management; Performance analysis; Product design; Productivity; Research and development management; Technology management;

fLanguage

English

Journal_Title

Engineering Management, IEEE Transactions on

Publisher

ieee

ISSN

0018-9391

Type

jour

DOI

10.1109/17.83754

Filename

83754