White Papers
On the Financial Impact of MDO
on the Corporation
Brett Malone, Ph.D
2002
Abstract
In this study, we correlate the effect of large defense or government program wins on the health of the typical aerospace company as measured in average increases in stock price. The effect of strategic program wins (new program initiatives) is more influential than other program awards. We then correlate the process used to win these strategic programs based on the DoD acquisition model with the benefits of Process Integration and MDO. As a result, we form conclusions based on the importance of MDO and Process Integration on the company's financial health. Several non-technical barriers to introducing MDO to organizations are discussed with key actions recommended. Specific conclusions include executive education and process-oriented structure for program managers.
Introduction
Aerospace companies are graded by Wall Street and the global investment community based on their ability to win programs and then complete them efficiently. Most aerospace companies have achieved manufacturing and efficiency gains where investors can expect reasonable earnings from contracts. The promise of winning programs, therefore, becomes the significant measure the industry uses to show potential future earnings.
The financial impact of changes in the design process on typical corporations is examined in this paper. Trends are illustrated based on capture of knowledge to affect proposal development for increased chances of program wins. Factors such as optimization, design exploration, subsystem interaction, and product sensitivity to cost and manufacturing are explored as they change the design process culture for positive outcome.
The changes in the design process are measured through the use of Process Integration and multidisciplinary design analysis and optimization (MDA/MDO). These techniques allow design processes to be changed, both technically and culturally. Specific conclusions can be drawn from focusing on the design process using MDO to impact the overall financial health of an organization.
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