You are previewing The Economics of Human Systems Integration: Valuation of Investments in Peoples Training and Education, Safety and Health, and Work Productivity.
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The Economics of Human Systems Integration: Valuation of Investments in Peoples Training and Education, Safety and Health, and Work Productivity

Book Description

Fundamental Economic Principles, Methods, and Tools for Addressing Human Systems Integration Issues and Tradeoffs

Human Systems Integration (HSI) is a new and fundamental integrating discipline designed to help move business and engineering cultures toward more human-centered systems. Integrating consideration of human abilities, limitations, and preferences into engineering systems yields important cost and performance benefits that otherwise would not have been accomplished. In order for this new discipline to be effective, however, a cultural change—starting with organizational leadership—is often necessary.

The Economics of Human Systems Integration explains the difficulties underlying valuation of investments in people's training and education, safety and health, and work productivity. It provides an overview of how the field of economics addresses these difficulties, focusing on human issues associated with design, development, production, operations, maintenance, and sustainment of complex systems.

The set of thought leaders recruited as contributors to this volume collectively provides a compelling set of data and principles for assessing the economic value of investing in people, not just in general but in specific investment situations. The early chapters provide the contexts for HSI and investment analysis, illustrating the enormous difference context makes in how issues are best framed and analyzed. A host of practical methods and tools for investment valuation are then presented. Provided are:

  • A variety of real-world applications of economic analysis ranging from military acquisition and automotive investment to healthcare and high-tech investments in general, in both the U.S. and abroad

  • A range of economics-based methods and tools for cost analysis, cost-benefit analysis, and investment analysis, as well as sources of data for performing such analyses

  • Differing perspectives on economic decision-making, including a range of private sector points of view, as well as government and regulatory perspectives

In addition, five real-world case studies illustrate how such valuations have been done and their major impacts on investment decisions. HSI professionals, systems engineers, and finance professionals who address investment analysis will appreciate the wide range of methods and real-life applications; senior undergraduates and masters-level graduate students will find this to be an excellent textbook that provides theory and supports practice.

Table of Contents

  1. Cover
  2. Series Page
  3. Title Page
  4. Copyright
  5. Preface
  6. Contributors
  7. Part : Introduction
    1. Chapter 1: Introduction
      1. 1.1 Introduction
      2. 1.2 Human Systems Integration
      3. 1.3 Organizational Contexts
      4. 1.4 Overview of Book
      5. 1.5 Conclusions
    2. Chapter 2: Industry and Commercial Context
      1. 2.1 Introduction
      2. 2.2 Private Versus Public Sectors
      3. 2.3 Management Practices
      4. 2.4 Best Practices
      5. 2.5 Conclusions
    3. Chapter 3: Government and Defense Context
      1. 3.1 Introduction
      2. 3.2 Public-Sector Acquisition
      3. 3.3 HSI Investments in the Acquisition Enterprise
      4. 3.4 Management Practices
      5. 3.5 Best Practices
      6. 3.6 Conclusions
  8. Part 2: Economics Overview
    1. Chapter 4: Human Capital Economics
      1. 4.1 Introduction
      2. 4.2 Measuring Returns on Investments
      3. 4.3 Human Capital Management
      4. 4.4 Investment Valuation
      5. 4.5 Best Practices
      6. 4.6 Conclusions
    2. Chapter 5: Labor Economics
      1. 5.1 Introduction
      2. 5.2 Human Capital Theory
      3. 5.3 Cost–Benefit Analysis and the Valuation of “Human” Systems
      4. 5.4 Summary
    3. Chapter 6: Defense Economics
      1. 6.1 Introduction: the Scope of Defense Economics
      2. 6.2 World Defense Spending
      3. 6.3 The Defense Economics Question
      4. 6.4 Analytical Framework
      5. 6.5 Literature Review
      6. 6.6 Defense R&D and Crowding Out
      7. 6.7 Conclusion
    4. Chapter 7: Engineering Economics
      1. 7.1 Introduction
      2. 7.2 HSI Investments
      3. 7.3 Costs and Cost Estimation
      4. 7.4 Costs of Money
      5. 7.5 Effects of Uncertainty
      6. 7.6 Investment Analysis
      7. 7.7 Public-Sector Economics
      8. 7.8 Conclusions
  9. Part 3: Models, Methods & Tools
    1. Chapter 8: Parametric Cost Estimation for Human Systems Integration
      1. 8.1 Introduction
      2. 8.2 Overview of Estimation Approaches
      3. 8.3 Parametric Cost Estimation
      4. 8.4 The Constructive Systems Engineering Cost Model
      5. 8.5 Human Systems Integration Case Study: F119-PW-100 Engine
      6. 8.6 Example Cost Estimate Using Cosysmo
      7. 8.7 Conclusion and Guidelines for Professional Practice
      8. 8.8 Acknowledgments
    2. Chapter 9: A Spreadsheet-Based Tool for Simple Cost–Benefit Analyses of HSI Contributions During Software Application Development
      1. 9.1 Introduction
      2. 9.2 The Usability Engineering Life-Cycle—an Overview
      3. 9.3 Phase 1: Requirements Analysis
      4. 9.4 Phase 2: Design/Testing/Development
      5. 9.5 Phase 3: Installation
      6. 9.6 General Approach to Cost–Benefit Analysis of Human Systems Integration
      7. 9.7 Example Cost–Benefit Analysis
      8. 9.8 Summary
    3. Chapter 10: Multistage Real Options
      1. 10.1 Introduction
      2. 10.2 A Motivating Example
      3. 10.3 Options Theory
      4. 10.4 Solution Methods
      5. 10.5 Solving the Example
      6. 10.6 Practical Issues
      7. 10.7 Conclusions
    4. Chapter 11: Organizational Simulation for Economic Assessment
      1. 11.1 Introduction
      2. 11.2 Simulation
      3. 11.3 Organizational Simulation Framework
      4. 11.4 Economic Assessment
      5. 11.5 Assessing HSI Investment Using Organizational Simulation
      6. 11.6 Future Work
      7. 11.7 Conclusion
  10. Part 4: Case Studies
    1. Chapter 12: HSI Practices in Program Management: Case Studies of Aegis
      1. 12.1 Introduction
      2. 12.2 The Aegis Program
      3. 12.3 Case Study 1: TOC Reduction for Aegis Microwave Power Tubes
      4. 12.4 Case Study 2: TOC Reduction for Aegis Radar Phase Shifters
      5. 12.5 Conclusion
      6. 12.6 Acknowledgement
    2. Chapter 13: The Economic Impact of Integrating Ergonomics within an Automotive Production Facility
      1. 13.1 Introduction
      2. 13.2 Ergonomics Case Studies
      3. 13.3 Conclusions
      4. 13.4 Acknowledgments
    3. Chapter 14: How Behavioral and Biometric Health Risk Factors Can Predict Medical and Productivity Costs for Employers
      1. 14.1 Introduction
      2. 14.2 The Business Case for Worksite Health Promotion and Disease Prevention Programs
      3. 14.3 Case Studies
      4. 14.4 Conclusion
      5. 14.5 Acknowledgments
    4. Chapter 15: Options for Surveillance and Reconnaissance
      1. 15.1 Introduction
      2. 15.2 Framing the Investment
      3. 15.3 Alternative Investments
      4. 15.4 Investment Valuations
      5. 15.5 Multiattribute Analysis
      6. 15.6 Investment Strategy
      7. 15.7 Conclusions
    5. Chapter 16: Governing Opportunism in International Armaments Collaboration: The Role of Trust
      1. 16.1 Introduction
      2. 16.2 Why Collaborate?
      3. 16.3 Opportunism in Armament Collaboration
      4. 16.4 Conclusions and Lessons for Future Research
    6. Appendix: How Behavioral and Biometric Health Risk Factors Can Predict Medical and Productivity Costs for Employers
      1. Return on Investment (ROI) Model—Sample Data Entry Materials
      2. Introduction
      3. Steps for Completing the Data Sheet to Run the ROI Model
    7. Bseries
    8. Index