Book contents
- Frontmatter
- Contents
- Preface
- 1 Introduction: On Time
- 2 To Reduce or to Extend Durability? A Qualitative Discussion of Issues at Stake
- 3 A Brief History of Economic Thought on Durability
- 4 Analysis of Marginal Cost of Durability and System Cost per Day
- 5 Flawed Metrics: System Cost per Day and Cost per Payload
- 6 Durability Choice and Optimal Design Lifetime for Complex Engineering Systems
- EPILOGUE: Perspectives in Design: The Deacon's Masterpiece and Hundred-Year Aircraft, Spacecraft, and Other Complex Engineering Systems
- APPENDIX A Beyond Cost Models, System Utility or Revenue Models: Example of a Communications Satellite
- APPENDIX B On Durability and Economic Depreciation
- Index
- References
APPENDIX A - Beyond Cost Models, System Utility or Revenue Models: Example of a Communications Satellite
Published online by Cambridge University Press: 25 October 2009
- Frontmatter
- Contents
- Preface
- 1 Introduction: On Time
- 2 To Reduce or to Extend Durability? A Qualitative Discussion of Issues at Stake
- 3 A Brief History of Economic Thought on Durability
- 4 Analysis of Marginal Cost of Durability and System Cost per Day
- 5 Flawed Metrics: System Cost per Day and Cost per Payload
- 6 Durability Choice and Optimal Design Lifetime for Complex Engineering Systems
- EPILOGUE: Perspectives in Design: The Deacon's Masterpiece and Hundred-Year Aircraft, Spacecraft, and Other Complex Engineering Systems
- APPENDIX A Beyond Cost Models, System Utility or Revenue Models: Example of a Communications Satellite
- APPENDIX B On Durability and Economic Depreciation
- Index
- References
Summary
PREVIEW AND GUIDE TO THE APPENDIX
How does one build a utility or revenue model for an engineering system? The solution may not be a simple, universal, one-size-fits-all model. The investigation and building of a revenue model for a particular system is, however, revealing. In this Appendix, the modeling of a communications satellite is considered as an example in order to avoid the two equally unsatisfying choices of a superficial treatment of the subject matter and an abstract analytical exposition of the subject matter.
This Appendix shows how to build revenue models for communications satellites. The motivation for this work is the proposition that satellites, like any other complex engineering systems, should be designed both for technical merit and also as value-delivery artifacts. And the value delivered, or the flow of service that the system delivers over its design lifetime, whether tangible or intangible, deserves as much effort to quantify as the system's cost.
Introduction
The previous chapters argued that engineering systems should be conceived of not only as technical achievements but also as value delivery artifacts. And the value delivered, or the flow of service that the system would deliver over its design lifetime, whether tangible or intangible, deserves as much effort to quantify as the system's cost. This is one of the main arguments of this work. The following pages elaborate on this proposition. But how does one build a utility or revenue model for an engineering system?
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- Chapter
- Information
- Analyses for Durability and System Design LifetimeA Multidisciplinary Approach, pp. 145 - 170Publisher: Cambridge University PressPrint publication year: 2007