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THE ROLE OF MACHINE LEARNING FOR FLEXIBILITY AND REAL OPTIONS ANALYSIS IN ENGINEERING SYSTEMS DESIGN

Published online by Cambridge University Press:  27 July 2021

Cesare Caputo  and
Michel-Alexandre Cardin
Cesare Caputo
Affiliation:
Imperial College London, Dyson School of Design Engineering
Michel-Alexandre Cardin*
Affiliation:
Imperial College London, Dyson School of Design Engineering
*
Cardin, Michel-Alexandre, Imperial College London Dyson School of Design Engineering United Kingdom, [email protected]

Abstract

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Flexibility analysis helps improve the expected value of engineering systems under uncertainty (economic and/or social). Designing for flexibility, however, can be challenging as a large number of design variables, parameters, uncertainty drivers, decision making possibilities and metrics must be considered. Many available techniques either rely on assumptions that are not suitable for an engineering setting, or may be limited due to computational intractability. This paper makes the case for an increased integration of Machine Learning into flexibility and real options analysis in engineering systems design to complement existing design methods. Several synergies are found and discussed critically between the fields in order to explore better solutions that may exist by analyzing the data, which may not be intuitive to domain experts. Reinforcement Learning is particularly promising as a result of the theoretical common grounds with latest methodological developments e.g. decision-rule based real options analysis. Relevance to the field of computational creativity is examined, and potential avenues for further research are identified. The proposed concepts are illustrated through the design of an example infrastructure system.

Keywords

Flexibility in DesignLarge-scale engineering systemsMachine learningReal OptionsComputational design methods
Type
Article
Information
Proceedings of the Design Society , Volume 1: ICED21 , August 2021 , pp. 3121 - 3130
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
The Author(s), 2021. Published by Cambridge University Press

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