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Article
An application of value-of-information to decision process reengineering
The Engineering Economist (2009)
  • Jeffrey Keisler, University of Massachusetts Boston
  • Mark Brodfuhrer
Abstract
Value of information (VOI) methods were used to guide changes to recurrent organizational decision processes, under a reengineering effort at a major automobile manufacturer to reduce supply and demand imbalances involving capacity for parts and products. We modeled representative decisions assuming as they would be made with and without the benefit of improved information flows, and calculated the resulting increase in expected value. By factoring in the entire range of decisions affected by a process change, we scaled the value of each organizational change to a life-cycle value. The results quantified the impact of organizational changes in order to refine and prioritize a portfolio of change projects.
Keywords
  • Value of information,
  • decision analysis,
  • reengineering,
  • supply chain
Publication Date
July, 2009
Publisher Statement
This is a preliminary version of the paper. The paper should be cited as: An Application of Value-of-Information to Decision Process Reengineering Jeffrey M. Keisler, Mark Brodfuehrer The Engineering Economist Vol. 54, Iss. 3, 2009 The full text is available at the following link: http://www.tandfonline.com/doi/pdf/10.1080/00137910903108286
Citation Information
Jeffrey Keisler and Mark Brodfuhrer. "An application of value-of-information to decision process reengineering" The Engineering Economist Vol. 54 Iss. 3 (2009)
Available at: http://works.bepress.com/jeffrey_keisler/18/