TY - JOUR
T1 - Value-Driven Design Framework for Competitive Aviation Markets
AU - Desai, Abdullah
AU - Vengadasalam, Lavanan
AU - Hollingsworth, Peter
AU - Chinchapatnam, Phani
PY - 2019
Y1 - 2019
N2 - Determining the “best” aircraft design for a given market segment is a challenging proposition. In this paper, a Value-Driven Design framework is created to illustrate how economic theory can be used to assess business strategies and engineering solutions within the civil aviation industry. The framework addresses a number of assumptions inherent within Surplus Value theory and compares them through a commercial aviation case study, for which the potential market size is highly uncertain. The case study demonstrated that without addressing these assumptions, a potential 380% difference in program SurplusValuewas calculated. More specifically, the manufacturer value of the aircraft program can be calculated incorrectly by up to 900%. This was determined by creating a multi-stage, non-cooperative game to characterize the behaviour of the commercial aviation industry to capture the effects of design parameters on the program value against different levels of competition from direct and adjacent markets.
AB - Determining the “best” aircraft design for a given market segment is a challenging proposition. In this paper, a Value-Driven Design framework is created to illustrate how economic theory can be used to assess business strategies and engineering solutions within the civil aviation industry. The framework addresses a number of assumptions inherent within Surplus Value theory and compares them through a commercial aviation case study, for which the potential market size is highly uncertain. The case study demonstrated that without addressing these assumptions, a potential 380% difference in program SurplusValuewas calculated. More specifically, the manufacturer value of the aircraft program can be calculated incorrectly by up to 900%. This was determined by creating a multi-stage, non-cooperative game to characterize the behaviour of the commercial aviation industry to capture the effects of design parameters on the program value against different levels of competition from direct and adjacent markets.
U2 - 10.2514/1.C034829
DO - 10.2514/1.C034829
M3 - Article
SN - 0021-8669
JO - Journal of Aircraft
JF - Journal of Aircraft
ER -