Publication:
Business Case Valuation of Strategic Flexibility in Ship Building: Justifying and Assessing the Value of Flexible Ships Design Features in New Navy Ship Concepts

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Authors
Mun, Johnathan
Housel, Thomas
Majchrzak, Lauren B.
Subjects
Advisors
Date of Issue
2018-04-30
Date
04/30/18
Publisher
Monterey, California. Naval Postgraduate School
Language
Abstract
To successfully implement the Surface Navy's Flexible Ships concept, Program Executive OfficeヨShips (PEO-SHIPS) requires a new methodology that assesses the total future value of various combinations of Flexible Ships design features and how they will enable affordable warfighting relevance over the ship's full service life. Examples of Flexible Ships design features include decoupling payloads from platforms, standardizing platform-to-payload interfaces, implementing allowance for rapid reconfiguration of onboard electronics and weapons systems, preplanning access routes for mission bays and mission decks, and allowing for sufficient growth margins for various distributed systems. This research analyzes the application of strategic Real Options Valuation (ROV) methodology within the Integrated Risk Management process to assess the total future value of Flexible Ships design features and for use in the Future Surface Combatant Analysis of Alternatives. The current research has the explicit goal of proposing a reusable, extensible, adaptable, and comprehensive advanced analytical modeling process to help the U.S. Navy in quantifying, modeling, valuing, and optimizing a set of ship design options to create and value a business case for making strategic decisions under uncertainty.
Type
Report
Description
Department
Organization
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
SYM-AM-18-034
Sponsors
Naval Postgraduate School Acquisition Research Program
Funder
Format
Citation
Distribution Statement
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.