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Optimizing Budget Allocations in Naval Configuration Management

Citation

Colin, A and Willett, R and Lambrineas, P, Optimizing Budget Allocations in Naval Configuration Management, Definitions, Concepts and Scope of Engineering Asset Management, Springer, JE Amadi-Echendu, K Brown, R Willett, J Mathew (ed), London, pp. 95-113. ISBN 978-1849961776 (2010) [Research Book Chapter]

Copyright Statement

Copyright 2010 Springer-Verlag London Limited

DOI: doi:10.1007/978-1-84996-178-3_5

Abstract

This paper describes a case study illustration of a technique that can be used to optimize capital expenditure budget decisions for engineering assets under multivariate objectives and uncertain costs. We define measures of capability increase relative to mission types and measures for risk, return and pseudo-correlation on potential maintenance upgrades, allowing portfolio optimization techniques from finance to be applied to asset management decisions. The results provide a risk-reward ratio for investment allocation decisions that is optimal. The work is aimed at capability management for naval platforms, but the technique has broader applicability in the field of asset management and multi-criteria decision making.

Item Details

Item Type:Research Book Chapter
Keywords:optimization, portfolio analysis, engineering assets, Statistical Activity Cost Analysis
Research Division:Commerce, Management, Tourism and Services
Research Group:Business and Management
Research Field:Business and Management not elsewhere classified
Objective Division:Economic Framework
Objective Group:Management and Productivity
Objective Field:Management and Productivity not elsewhere classified
Author:Willett, R (Professor Roger Willett)
ID Code:71259
Year Published:2010
Deposited By:Research Division
Deposited On:2011-07-12
Last Modified:2015-02-20
Downloads:2 View Download Statistics

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