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Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C. Ariel Pinto and Resit Unal Old Dominion University James T. Luxhøj Rutgers University Hampton Roads Area INCOSE Conference on Decision Analysis and Its Applications to Systems Engineering, Newport News, VA (November 17-18, 2009) National Aeronautics and Space Administration www.nasa.gov

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Page 1: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace ResearchersSharon Monica Jones NASA Langley

Rafael E. Landaeta, C. Ariel Pinto and Resit Unal Old Dominion University

James T. Luxhøj Rutgers University

Hampton Roads Area INCOSE Conference on Decision Analysis and Its Applications to Systems Engineering, Newport News, VA (November 17-18, 2009)

National Aeronautics and Space Administration

www.nasa.gov

Page 2: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration Jones,, et al. (2009) 2

Outline• Background/Definitions

• Data Collection Process

• Results

• Concluding Remarks

Page 3: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Problem Definition• Aerospace technology managers need:

To predict future technologies

To assess progress toward R&D goals

• Aerospace technology portfolio decisions are difficult because:

Very little time to acquire background data

Uncertainty factors (e.g., politics, global economy, environment, funding)

• Prescriptive decision analysis methods

Have been used for financial portfolio assessment

Value for policy related decisions has been questioned

Jones, et al (2009) 3

Page 4: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Ralph Keeney’s Suggestions for Making Better Decision Makers*• Develop concepts, tools and procedures to help decision makers

“My experience is that many people, including well-educated people, have a very difficult time in structuring their decisions. They can get mixed up about the difference between fundamental concepts such as alternatives and objectives.”

• Use real decisions, not just laboratory problems in decision research

“We have learned a great deal from all the laboratory settings where decision experiments have been conducted. There have also been some research studies of real decision problems. I feel there is much more to be gained by having more of this type of research.”

• Teach people what they can and will learn and use

“…hundreds and thousands of people have had at least a course that included a substantial part on decision analysis and very few have probably ever conducted a formal decision analysis. Once we find out what people can and will learn and use, that should constitute the basis for much of our teaching of decision analysis.”

*Source: Ralph L. Keeney, “Making Better Decision Makers”, Decision Analysis, 1:4 (2004)

Jones,, et al. (2009) 4

Page 5: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Decision Analysis Usage in Aerospace Portfolio Development• Aerospace managers have investigated the use of decision analysis methods for portfolio

investment decisions:

Commercial Aviation Safety Team (CAST)

NASA Aviation Safety Program

Future Aviation Safety Team (FAST)

• These technology assessments involved:

Resource commitments (e.g., employee time, travel money, software acquisition, training)

Assumption that decision analysis methods would improve aerospace technology

assessment process

Jones,, et al. (2009) 5

Page 6: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Technology Assessment

“ A process for measuring the impact of established or new technologies”

*Hans Mohr, “Technology Assessment in Theory and Practice”, Society for Philosophy and Technology, 4:4 (Summer 1999)

Jones, et al (2009) 6

Page 7: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Aerospace Technology AssessmentThree different processes for examining impact of a set of technologies

Technology assessment

Technology forecasting

Technology foresight

Aerospace Technology Assessment

Jones, et al (2009) 7

Page 8: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Conceptual Model *

1. Identify Context & Understand Objectives

2. Identify Alternatives

Aerospace Technology Assessment

Decision Analysis Methods

3. Decompose & Model the Problema. Model of Problem Structureb. Model of Uncertaintyc. Model of Preferences

4. Choose the Best Alternative

5. Sensitivity Analysis

6. Implement the Chosen Alternative

*Adapted from Robert T. Clemen, Making Hard Decisions, 2nd Edition (1995)Jones, et al (2009) 8

Page 9: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Purpose of StudyWhat is known:

Decision analysis methods in financial portfolio assessment

Decision experiments in laboratory settings

Technology assessment in medical R&D

What is unknown:Decision analysis methods for policy related decisions

Decision analysis methods in real decision problems

Technology assessment in aerospace

Jones, et al (2009) 9

Page 10: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Study Overview• Population was aerospace researchers with experience in one or more of the following:

Aerospace program/project management

Aerospace technology assessment

Aerospace technology selection

Aerospace R&D portfolio development

• Methods that were investigated in the study

Decision trees

Influence diagrams

Criteria aggregation methods

Explicit tradeoff approaches

• Participants were questioned about their usage of these methods for aerospace technology

assessment

Jones, et al (2009) 10

Page 11: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Decision Trees

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Buy shares of XYZ stock

Don’t buy XYZ stock

Value of XYZ stock increases

Value of XYZ stock unchanged

Value of XYZ stock decreases

Earn money

Total amount of money unchanged

Lose money

Total amount of money unchanged

= decision node

= chance node

= consequence node

Jones, et al (2009)

Page 12: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Influence Diagrams

12

Buy XYZ stock? Change in amount of money

Price of XYZ stock at

future point

decision node

chance node

consequence node

Jones, et al (2009)

Page 13: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Criteria Aggregation Methods• Methods in which two sets of aggregated indices are developed and used to evaluate the

alternatives in the decision problem

• Methods in the category include:

Analytical Hierarchy Process (AHP)

Weighted Sum Model (WSM)

13Jones, et al (2009)

*E. Triantaphyllou, Multi-Criteria Decision Making Methods: A Comparative Study(1995)

Example of Simple Weighted Sum Model *

n

A*WSM-score =

max

aij,wj, for 1=1,2,3,….n i

j = 1 where, A*WSM-score = the WSM of the best alternative n = the total number of criteria

aij = the score of the i-th alternative in terms of the j-th criterion wj = the weight of importance of the j-th criterion

Page 14: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Explicit Tradeoff Approaches• Decision analysis methods that are based on value functions

• Methods in this category include:

Multi-Attribute Utility Theory (MAUT)

Simplified Multi-Attribute Rating Approach (SMART)

14Jones, et al (2009)

Page 15: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Excluded Decision Analysis Methods • Avoided decision analysis methods that are not popular in U.S.

• Real world applications are complex with large amounts of uncertainty

• Specific decision analysis methods that were excluded from study:

Outranking methods (e.g., ELECTRE, TOPSIS)

Optimization methods

Analytic network process (ANP)

Jones, et al (2009) 15

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Data Collection and Analysis ProcessRefine List of Candidate Survey Participants

Develop Web-Based Survey Instrument

Develop List of Pilot Participants

Conduct Pilot Survey

Review & Analyze Pilot Results

Modify Survey Instrument

AnalyzeResults

Conduct Survey

Legend Survey Development Data Collection Data Analysis

Jones, et al (2009) 16

Page 17: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Web-Based Instrument Development• Several web-based services examined

• Questions developed based on several sources:

Short surveys at professional meetings

Validated research in decision analysis literature

• Identities of survey participants remained anonymous

Jones, et al. (2009) 17

Page 18: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

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Pilot Survey• Conducted with subset of population (10 persons)

• Think aloud cognitive interviewing techniques used

Solicitation of all thoughts and comments

Manual recording of information during completion of online survey

De-identification of subjects in final documentation

18Jones, et al. (2009)

Page 19: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

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Survey Instrument Modification• Questions were modified, added or eliminated from the survey based on input from:

Pilot survey comments

Data analysis of pilot survey data

Additional comments from other reviews (e.g., ODU IRB)

• Number of survey questions reduced from 70 to 65

19Jones, et al. (2009)

Page 20: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Data Collection Overview• Approval to conduct survey was obtained from NASA Langley and ODU Institutional Review

Boards (IRB’s)

• E-mail invitation was sent to 260 persons

• 154 total visits to survey website

16 partial responses

99 completes surveys

• Out of the 99 completed surveys

76% male, 24% female

Highest degree level was 60% Masters, 21% Bachelors, 18% Doctorate, 1% Associates

72% employed as government civil servants

Jones, et al. (2009) 20

Page 21: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

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Job Functions

Jones, et al. (2009) 21

Page 22: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

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Aerospace Experience

Jones, et al. (2009) 22

Page 23: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Decision Trees

23Jones, et al. (2009)

Page 24: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Influence Diagrams

24Jones, et al. (2009)

Page 25: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Criteria Aggregation Methods

25Jones, et al. (2009)

Page 26: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Explicit Tradeoff Approaches

26Jones, et al. (2009)

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National Aeronautics and Space Administration Jones, et al. (2009) 27

Usage of Decision Analysis Methods Outside of a Classroom Environment

Page 28: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration Jones, et al (2009) 28

Categories of Non-ATA Usage of DA Outside of a Classroom Environment

Page 29: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Additional Questions

29Jones, et al. (2009)

Page 30: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Additional Questions (cont’d)

30Jones, et al. (2009)

Page 31: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration 31Jones, et al. (2009)

Additional Questions (cont’d)

Page 32: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Additional Questions (cont’d)

32Jones, et al. (2009)

Page 33: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

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Additional Questions (cont’d)

33Jones, et al. (2009)

Page 34: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

National Aeronautics and Space Administration

Likelihood of Future Usage of DA Methods

34Jones, et al. (2009)

Page 35: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

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Concluding Remarks• This is a subset of the total data

There are many additional questions in the study

More formal analysis of the data was conducted using structural equation modeling techniques to test a set of hypotheses

• Survey participants believed that the successful use of decision analysis methods depends on:

Selection criteria in the decision model

Experience of the person that implements the method

Reliability of the input data

• Training/education does not guarantee future use of a decision analysis method

35Jones, et al. (2009)

Page 36: Usage of Decision Analysis Methods Outside of a Classroom Environment by Aerospace Researchers Sharon Monica Jones NASA Langley Rafael E. Landaeta, C

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Questions?

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National Aeronautics and Space Administration Your Title Here 37