TechWorkRamblings

by Mike Kalvas

202309011327 Define metric to value transfer functions using sensitivity analysis

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When building an economic framework in a complex system, we should strive to understand the transfer function between measurements and value output. In order to understand how (for example) reducing response latency impacts total life-cycle profits for a project, we can vary that measure independently and see the outcome. We then put it back and vary a different measure. Doing this is called performing a sensitivity analysis. In this way we get the information we need to make economically based decisions (202309011312 The primary goal in product development is to make good economic decisions) for our complex product development systems (202309011322 We need more information for complex decision making).1


  1. Reinertsen, D. G. (2009). The principles of product development flow: Second generation lean product development (pp. 30). Celeritas Publishing.