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Foundations in Systems Integration
cars often command higher prices than slower cars. The general notion of
value seems to require a precondition for establishing the initial value and a
postcondition (or anticipation of a postcondition) that presumes a final or
residual value. In the case of gold, the initial value may be identical as the
final value, assuming that there is no interaction with a mechanism of supply and demand or other influence-driven change from that an individual
would self-impose. For example, there are no buy–sell dynamics that influence an individual to think the value of the gold has changed. Leaving the
possibility open that there are some values that are determined by self (without outside influence), the value that is ascribed to products and services can
be thought of as both driven by self and by nonself influences. Some of the key
determinants of subjective value are (1) historical significance, (2) cultural
legacy, (3) family heirloom, (4) esthetic beauty, (5) uniqueness, (6) scarcity,
(7) marketing, and (8) sales.* For our purposes, objective value will be determined by performance measures that are determined relative to the amount
of EMMI required to achieve that performance. EMMI can be considered for
an instant, taken over a stage during which the performance is being created
(i.e., development), or considered in a lifecycle sense.
Value of a performance measure is nothing more than measuring the function of a product or service that embodies that performance. Every function
is characterized by its performance(s). Each function has at least one performance and most often many performances. For example, the function of ‘to
write’ (as distinguished from the process of “to write”) has various performances. How fast does one write? How many letters? What are the sizes of
the letters? How often are the letters written? Each question is suggestive of
at least one performance that relates the function of ‘to write’ to an empirical
result through a performance measure. Person A is paid $60 per hour and
writes 12 words per minute. The value of the performance of person A with
regard to words/$ is 12 words/$. Person B is paid $45 per hour and writes 10
words per minute. The value of the performance of person B with regard to
words/$ is 13.33 words/$. If both person A and person B have the same
defect rate, then the value of person B with regard to words/$ is higher than
that of person A. Value V per enactment of a function is defined as the ratio
of performance P to investment I. This representation is the fundamental
premise of value engineering (Miles 1961, 1972). Value compares what is
received in performance of a function with what is (was) invested to achieve
that performance. If two products with factually comparable functions and
performance are offered for different prices and they are normalized in
terms of the geneses of both performance and investment, † a higher value is
associated with the lower-priced product. Whereas the value of a function
* Private communication with Stevenson Higa, purveyor of fine art and crafts, chairman of the
board, Images International Corporation, Hawaii (1998).
† Normalized means the performances and investments are equivalent by their measures and
amounts, for example, same conditions, same discount rates, and same period of time.
Foundations in Systems Integration
cars often command higher prices than slower cars. The general notion of
value seems to require a precondition for establishing the initial value and a
postcondition (or anticipation of a postcondition) that presumes a final or
residual value. In the case of gold, the initial value may be identical as the
final value, assuming that there is no interaction with a mechanism of supply and demand or other influence-driven change from that an individual
would self-impose. For example, there are no buy–sell dynamics that influence an individual to think the value of the gold has changed. Leaving the
possibility open that there are some values that are determined by self (without outside influence), the value that is ascribed to products and services can
be thought of as both driven by self and by nonself influences. Some of the key
determinants of subjective value are (1) historical significance, (2) cultural
legacy, (3) family heirloom, (4) esthetic beauty, (5) uniqueness, (6) scarcity,
(7) marketing, and (8) sales.* For our purposes, objective value will be determined by performance measures that are determined relative to the amount
of EMMI required to achieve that performance. EMMI can be considered for
an instant, taken over a stage during which the performance is being created
(i.e., development), or considered in a lifecycle sense.
Value of a performance measure is nothing more than measuring the function of a product or service that embodies that performance. Every function
is characterized by its performance(s). Each function has at least one performance and most often many performances. For example, the function of ‘to
write’ (as distinguished from the process of “to write”) has various performances. How fast does one write? How many letters? What are the sizes of
the letters? How often are the letters written? Each question is suggestive of
at least one performance that relates the function of ‘to write’ to an empirical
result through a performance measure. Person A is paid $60 per hour and
writes 12 words per minute. The value of the performance of person A with
regard to words/$ is 12 words/$. Person B is paid $45 per hour and writes 10
words per minute. The value of the performance of person B with regard to
words/$ is 13.33 words/$. If both person A and person B have the same
defect rate, then the value of person B with regard to words/$ is higher than
that of person A. Value V per enactment of a function is defined as the ratio
of performance P to investment I. This representation is the fundamental
premise of value engineering (Miles 1961, 1972). Value compares what is
received in performance of a function with what is (was) invested to achieve
that performance. If two products with factually comparable functions and
performance are offered for different prices and they are normalized in
terms of the geneses of both performance and investment, † a higher value is
associated with the lower-priced product. Whereas the value of a function
* Private communication with Stevenson Higa, purveyor of fine art and crafts, chairman of the
board, Images International Corporation, Hawaii (1998).
† Normalized means the performances and investments are equivalent by their measures and
amounts, for example, same conditions, same discount rates, and same period of time.