Value based analysis of acquisition portfolios

Currently, program-funding allocation is based on program performance. Funding cuts commonly lead to a poor reflection on the program management assigned to the given program. If additional factors such as program risk and benefit are objectively factored in, this may lead to a more effective exit strategy for program capabilities, which are no longer required. An enterprise architecture analysis and applied framework case study were carried out to develop a methodology to quantify system-level value for the Office of the Assistant Secretary of the Air Force for Acquisition Research, Development, Test and Evaluation portfolio. Portfolio value is quantified in order to transition from a single program, single stakeholder value analysis to a program portfolio and stakeholder system composite analysis. This methodology is developed based on interviews, official organization literature, and a case study. The results of the applied framework case study on a portfolio of seven programs showed a positive correlation between quantitative capability, execution and risk data at the portfolio level and access to a more informed and objective identification of programs of greatest interest and concern as compared to a qualitative program-by-program analysis when allocating Air Force Acquisition resources. This system includes 17 stakeholder categories, which significantly influence the allocation of resources for a portfolio worth roughly 0.4% of the US GDP. Interviews include high-ranking leadership, including two 3-Star Generals in the US Air Force.

Department dc:contributor.department

Massachusetts Institute of Technology. Engineering Systems Division.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2010

Author dc:creator

• Burgess, Cheri Nicole Markt

Advisor dc:contributor.advisor

• Ricardo Valerdi.

• Engineering Systems Division.
• System Design and Management Program.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/59225

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/59225