Abstract

The effectiveness of a firm's design processes is dependent upon the validity of its design theories. The designs of products, processes and procedures embody implicit or explicit theories about the nature of real world processes which shape their performance. The performance of a firm's value creating systems will meet expectations only to the extent that the theories embodied in its designs are comprehensive and valid. Design theories can be evaluated and refined through “knowledge refinement cycles”. Knowledge which is relevant to the evaluation of design theories may be resident in the expertise, experience, databases and formal models of the firm's organizational units. Systems can be designed that focus the application of this knowledge and reduce the costs of access. By refining design theories, the firm can reduce the number of latent flaws in its designs. Failure effects analysis (FEA) techniques can be applied to support the refinement of the firm's design theories. FEA techniques focus the attention of a designer on the identification of specified classes of latent contingencies in a design. The firm's ability to define specific goals for FEA and to use the results of FEA analyses as measures of design quality enhances managerial control of the design process. In addition, a system for FEA is a common language which supports the integration of organizational knowledge in the evaluation of design alternatives. The power of a system for failure effects analysis can increased through the design of intelligent systems which amplify its strengths and compensate for its weaknesses.

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