2.2.1 SYSTEMS ENGINEERING AND THE BOTTOM LINE

Abstract

AbstractSystems Engineering (SE) cannot be viewed in isolation, but rather as a subset of, first, the Integrated Product Development process, and secondly, as part of a commercial or non‐governmental corporation's business enterprise. This paper discusses four ways in which the SE process directly affects the financial operations of a company and how SE can be employed to improve the financial performance. First, the design‐to‐cost process can be brought to bear to maintain predictable and affordable products. Second, the normal business cycle in commercial industries, presents cost and schedule constraints which can be treated by considering them as a natural part of the SE process. Next, the improved product quality through the SE process results in many direct and indirect financial benefits through reduced development cost, reduced unit cost, reduced operating cost, and improved sales. Finally, the SE process provides consistent methodology for obtaining superior products from suppliers, and hence enhances the business prospects for the product. Examples in this paper focus on the commercial aircraft industry, although the principles found in it may be applied to many industries.