Document Type


Publication Date

July 2009


Value of information (VOI) methods were used to guide changes to recurrent organizational decision processes, under a reengineering effort at a major automobile manufacturer to reduce supply and demand imbalances involving capacity for parts and products. We modeled representative decisions assuming as they would be made with and without the benefit of improved information flows, and calculated the resulting increase in expected value. By factoring in the entire range of decisions affected by a process change, we scaled the value of each organizational change to a life-cycle value. The results quantified the impact of organizational changes in order to refine and prioritize a portfolio of change projects.


This is a preliminary version of the paper. The paper should be cited as: An Application of Value-of-Information to Decision Process Reengineering Jeffrey M. Keisler, Mark Brodfuehrer The Engineering Economist Vol. 54, Iss. 3, 2009 The full text is available at the following link:


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