Flexibility in Engineering Design

Project teams can improve results by recognizing that the future is inevitablyuncertain and that by creating flexible designs they can adapt to eventualities. This approachenables them to take advantage of new opportunities and avoid harmful losses. Designers of complex,long-lasting projects--such as communication networks, power plants, or hospitals--must learn toabandon fixed specifications and narrow forecasts. They need to avoid the "flaw ofaverages," the conceptual pitfall that traps so many designs in underperformance. Failure toallow for changing circumstances risks leaving significant value untapped. This book is a guide forcreating and implementing value-enhancing flexibility in design. It will be an essential resourcefor all participants in the development and operation of technological systems: designers, managers,financial analysts, investors, regulators, and academics. The book provides a high-level overview ofwhy flexibility in design is needed to deliver significantly increased value. It describes in detailmethods to identify, select, and implement useful flexibility. The book is unique in that itexplicitly recognizes that future outcomes are uncertain. It thus presents forecasting, analysis,and evaluation tools especially suited to this reality. Appendixes provide expanded explanations ofconcepts and analytic tools.

Richard de Neufville is Professor of Engineering Systems and Civil and Environmental Engineering at MIT. He was Founding Chairman of the MIT Technology and Policy Program. Stefan Scholtes is Dennis Gillings Professor of Health Management and Academic Director of the Centre for Health Leadership and Enterprise at the Judge Business School, University of Cambridge.