Using a Principal-Agent Model to Investigate Delegation in Systems Engineering

Author(s):  
Sean D. Vermillion ◽  
Richard J. Malak

Delegation of decision authority is a fundamental characteristic of systems engineering problems. Engineers and managers at higher levels within the organization allocate responsibility and resources to other individuals through requirements flowdown and other processes. The prevalence of schedule slippages and budget overruns on systems engineering projects raises questions about the adequacy of and potential to improve existing methods. However, at present the community lacks a foundational understanding of these processes that would be valuable in identifying and validating candidate improvements to the systems engineering process. In this paper, we develop a conceptual modeling framework for delegation in systems engineering based on the principal-agent problem, a game-theoretic model of agent interaction across hierarchical levels. Several variations on the basic model are possible. We study the model and its variations on an illustrative example of a passenger vehicle engineering process. Numerical results highlight the impact of various assumptions, including whether engineers act normatively or according to proposed behavioral decision models. Implications and extensions are discussed, including the need for behavioral validation of engineering decision models and the potential to use the modeling framework to evaluate newly proposed delegation schemes.

Author(s):  
Salar Safarkhani ◽  
Ilias Bilionis ◽  
Jitesh H. Panchal

Systems engineering processes coordinate the efforts of many individuals to design a complex system. However, the goals of the involved individuals do not necessarily align with the system-level goals. Everyone, including managers, systems engineers, subsystem engineers, component designers, and contractors, is self-interested. It is not currently understood how this discrepancy between organizational and personal goals affects the outcome of complex systems engineering processes. To answer this question, we need a systems engineering theory that accounts for human behavior. Such a theory can be ideally expressed as a dynamic hierarchical network game of incomplete information. The nodes of this network represent individual agents and the edges the transfer of information and incentives. All agents decide independently on how much effort they should devote to a delegated task by maximizing their expected utility; the expectation is over their beliefs about the actions of all other individuals and the moves of nature. An essential component of such a model is the quality function, defined as the map between an agent’s effort and the quality of their job outcome. In the economics literature, the quality function is assumed to be a linear function of effort with additive Gaussian noise. This simplistic assumption ignores two critical factors relevant to systems engineering: (1) the complexity of the design task, and (2) the problem-solving skills of the agent. Systems engineers establish their beliefs about these two factors through years of job experience. In this paper, we encode these beliefs in clear mathematical statements about the form of the quality function. Our approach proceeds in two steps: (1) we construct a generative stochastic model of the delegated task, and (2) we develop a reduced order representation suitable for use in a more extensive game-theoretic model of a systems engineering process. Focusing on the early design stages of a systems engineering process, we model the design task as a function maximization problem and, thus, we associate the systems engineer’s beliefs about the complexity of the task with their beliefs about the complexity of the function being maximized. Furthermore, we associate an agent’s problem solving-skills with the strategy they use to solve the underlying function maximization problem. We identify two agent types: “naïve” (follows a random search strategy) and “skillful” (follows a Bayesian global optimization strategy). Through an extensive simulation study, we show that the assumption of the linear quality function is only valid for small effort levels. In general, the quality function is an increasing, concave function with derivative and curvature that depend on the problem complexity and agent’s skills.


2020 ◽  
Vol 24 (3) ◽  
pp. 1367-1392 ◽  
Author(s):  
Nicolás Velásquez ◽  
Carlos D. Hoyos ◽  
Jaime I. Vélez ◽  
Esneider Zapata

Abstract. On 18 May 2015, a severe rainfall event triggered a flash flood in the municipality of Salgar, located in the northwestern Colombian Andes. This work aims to reconstruct the main hydrological features of the flash flood to better understand the processes modulating the occurrence of the event. Radar quantitative precipitation estimates (QPEs), satellite information, and post-event field visits are used to reconstruct the Salgar flash flood, in an ungauged basin, addressing the relationship among rainfall spatiotemporal structure, soil moisture, and runoff generation during successive rainfall events by using a conceptual modeling framework including landslide and hydraulic submodels. The hydrological model includes virtual tracers to explore the role of runoff and subsurface flow and the relative importance of convective and stratiform precipitation in flash flood generation. Despite potential shortcomings due to the lack of data, the modeling results allow an assessment of the impact of the interactions between runoff, subsurface flow, and convective–stratiform rainfall on the short-term hydrological mechanisms leading to the flash flood event. The overall methodology reproduces the magnitude and timing of the La Liboriana flash flood peak discharge considerably well, as well as the areas of landslide occurrence and flood spots, with limitations due to the spatial resolution of the available digital elevation model. Simulation results indicate that the flash flood and regional landslide features were strongly influenced by the antecedent rainfall, which was associated with a northeasterly stratiform event. The latter recharged the gravitational and capillary storages within the model, moistening the entire basin before the occurrence of the flash flood event and impacting the subsurface–runoff partitioning during the flash flood event. Evidence suggests that the spatial structure of the rainfall is at least as important as the geomorphological features of the basin in regulating the occurrence of flash flood events.


Author(s):  
Lixiao Huang ◽  
M. L. Cummings ◽  
Victoria C. Nneji

Railroad dispatch centers increasingly use technology to assist dispatchers as they interact with multiple entities across a variety of tasks to ensure trains and track personnel function safely on an efficient schedule. A railroad dispatcher workload simulation could, therefore, be useful in estimating the impact of new technologies on dispatchers’ workload and overall system performance, particularly in the concept generation phase of a systems engineering process. This paper first discusses railroad dispatchers’ work analysis based on a large dispatch center and then presents the development of the Railroad Dispatcher Workload Simulation (RDWS), which generates models of dispatcher workload given various settings.


Author(s):  
Dujuan B. Sevillian

Effective Human Factors Engineering (HFE) has provided the aerospace industry with design considerations that promote aviation safety in the development of complex aircraft systems, as well as the operators and maintainers that utilize those systems. HFE is an integral aspect within the systems engineering process. Measuring the effectiveness of Human Systems Integration (HSI) in the research & development stage is critical for the design of new and modified systems. This paper focuses on the importance of design and integration in the product development stages as well as understanding the impact on the user population.


2021 ◽  
Vol 1 ◽  
pp. 1887-1896
Author(s):  
Vahid Salehi

AbstractCurrently, inconsistent software versions lead to massive challenges for many car manufacturers. This is partly because within the product lifecycle management and the software engineering process, there is no correct handling of software versions for the “data entry” (installation of software on the ECU) of the vehicles. Furthermore, there are currently major challenges for many vehicle manufacturers to ensure transparency, integrity and full traceability of SW data status vis-à-vis the legislator. To counteract these challenges, new solutions in the field of vehicle engineering are to be developed based on a new platform called “CarEngChainNet” and Blockchain technology. On the basis of the “CarEngChainNet” platform, new main and sub-chain chains will be developed that allow tamper-proof SW data management (Peer to Peer and crypto technology) across the entire PLM chain with new methods such as model-based systems engineering of the requirement, function and integration of the SW components in different areas of vehicle development. The aim is to develop new transmission chains of vehicles with individually packaged software artefacts (e.g. ECU software) that can be securely transmitted from server to server into the vehicle.


2021 ◽  
Vol 3 (2) ◽  
pp. 161-176
Author(s):  
Kellie Schneider ◽  
Diana Cuy Castellanos ◽  
Felix Fernando ◽  
Jeanne A. Holcomb

Food deserts, areas in which it is difficult to obtain affordable, nutritious food, are especially problematic in low-income neighbourhoods. One model for addressing food hardship and unemployment issues within low-income food deserts is a cooperative grocery store. Through the cooperative model, the grocery store can serve as a cornerstone to address socio-economic marginalisation of low-income neighbourhoods and improve the health and well-being of its residents. It is important for communities and policymakers to be able to assess the effectiveness of these types of endeavours beyond traditional economic factors such as profitability. This article uses a systems engineering approach to develop a framework for measuring the holistic impact of a cooperative grocery store on community health and well-being. This framework encompasses values that characterise the relationship between food retail, economic viability and social equality. We develop a dashboard to display the key metrics for measuring the economic, social and environmental indicators that reflect a grocery store’s social impact. We demonstrate the usefulness of the framework through a case study of a full-service cooperative grocery store that is planned within the city of Dayton, OH.


2021 ◽  
Vol 12 (1) ◽  
Author(s):  
G. Cencetti ◽  
G. Santin ◽  
A. Longa ◽  
E. Pigani ◽  
A. Barrat ◽  
...  

AbstractDigital contact tracing is a relevant tool to control infectious disease outbreaks, including the COVID-19 epidemic. Early work evaluating digital contact tracing omitted important features and heterogeneities of real-world contact patterns influencing contagion dynamics. We fill this gap with a modeling framework informed by empirical high-resolution contact data to analyze the impact of digital contact tracing in the COVID-19 pandemic. We investigate how well contact tracing apps, coupled with the quarantine of identified contacts, can mitigate the spread in real environments. We find that restrictive policies are more effective in containing the epidemic but come at the cost of unnecessary large-scale quarantines. Policy evaluation through their efficiency and cost results in optimized solutions which only consider contacts longer than 15–20 minutes and closer than 2–3 meters to be at risk. Our results show that isolation and tracing can help control re-emerging outbreaks when some conditions are met: (i) a reduction of the reproductive number through masks and physical distance; (ii) a low-delay isolation of infected individuals; (iii) a high compliance. Finally, we observe the inefficacy of a less privacy-preserving tracing involving second order contacts. Our results may inform digital contact tracing efforts currently being implemented across several countries worldwide.


2021 ◽  
pp. 097674792198917
Author(s):  
Nikita Jain

Strong labour laws play a major role in motivating innovation among employees. It has been found in the literature that stringency of labour laws is positively linked with employees’ efforts in innovation, in particular, wrongful discharge laws (WDL). However, employees may also bring nuisance suits against employers. Usually, the result of these suits is that both parties settle with each other. Thus, even if employees are justly dismissed, they may be able to bring nuisance suits against employers and gain a settlement amount. This article investigates how the possibility of nuisance suits affects the impact of WDL on employees’ efforts in innovation. In this respect, a game-theoretic model is developed in the article to find the equilibrium level of employees’ efforts in the presence of nuisance suits, where there is a possibility of employees getting discharged from the firm. I find that if nuisance suits are a possibility, the stringency of WDL has no impact on employees’ efforts if defence cost of the firm is low; but for higher defence costs, WDL affects employees’ efforts. The efforts exerted by an employee are found to be weakly increasing in the defence costs of the firm.


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