Fuzzy Regression Model of R and D Projec
Fuzzy Regression Model of R and D Projec
Fuzzy Regression Model of R and D Projec
com
Abstract
Engineering and technology play an important role in strengthening the competitive power of a company and in surviving a severe competition
in the world. About 70% of the total R&D investment in Japan comes from the private sector. It is the most important to decide which research
projects have to be adopted for a future research out of proposals from divisions and sections in a company. The objective of this paper is to analyze
the results of experts’ evaluation in selecting submitted proposals for R&D and to model the experts’ evaluation. This paper analyzes a research and
development of a certain manufacturing company in a heavy metallurgy industry.
We employed a principal component model, dual scaling, AHP and fuzzy regression analysis to analyze the results that experts evaluated
proposed research projects for single or plural of fiscal years. The experts’ evaluation was pursued on the basis of (1) the objective of a research
project, (2) its background, (3) its research contents, (4) the expected effect, (5) the possibility of obtaining patents, (6) project schedule, (7)
developing cost, etc. The obtained model results in the same selection of projects as the experts did.
# 2007 Elsevier B.V. All rights reserved.
Keywords: Management of technology and engineering; R&D; Project management; AHP; Fuzzy regression model
1568-4946/$ – see front matter # 2007 Elsevier B.V. All rights reserved.
doi:10.1016/j.asoc.2007.02.024
S. Imoto et al. / Applied Soft Computing 8 (2008) 1266–1273 1267
Table 3
Evaluation of importance degree of each R&D project
R&D project Necessity Technological Period Cost Expected sales Possibility to
difficulty volume get a patent
Developing device 5 Extremely 5 Extremely 1 Extremely long 1 More than 20 1 Extremely 5 Extremely 5
(longer than 1 year) million yen
Developing control 4 Extremely 5 Extremely 1 Extremely long 1 More than 20 1 Extremely 5 Extremely 5
model (longer than 1 year) million yen
Commercializing 4 Rather 4 Very 2 Very long (longer 2 More than 10 2 Very 4 Very 4
control model than 8 months) million yen
Developing and 4 Rather 4 Very 2 Very long (longer 2 More than 10 2 Very 4 Very 4
commercializing than 8 months) million yen
Developing system 3 Yes 3 Yes 3 Normal (longer 3 More than 5 3 Normal 3 Yes 3
than 6 months) million yen
Constructing system 3 Yes 3 Yes 3 Normal (longer 3 More than 5 3 Normal 3 Yes 3
than 6 months) million yen
Constructing a server 2 A little 2 Not so 4 Not so long (longer 4 More than 3 4 Not so 2 Not so 2
computer than 3 months) million yen
Developing software 2 A little 2 Not so 4 Not so long (longer 4 More than 3 4 Not so 2 Not so 2
than 3 months) million yen
Adding function 1 Not so 1 No 5 Short (shorter 5 Less than 3 5 No 1 No 1
than 3 months) million yen
Decided on function 1 Not so 1 No 5 Short (shorter 5 Less than 3 5 No 1 No 1
than 3 months) million yen
Acquire 1 No 0 No 5 Short (shorter 5 Less than 3 5 No 1 No 1
than 3 months) million yen
principal component shown in Table 6, it is sufficient to employ can be interpreted as a necessity of the R&D project in the
only the 1st and 2nd principal components for discussion in company.
Tables 6 and 7. Table 8 depicts sample scores. Next, on the 2nd principal component, the factor loading of
Fig. 1 illustrates category scores of both the 1st and 2nd Index 4 is 0.822, and Index 5 is 0.695. The correlation
principal components. Indices 2 ‘‘Necessity,’’ 3 ‘‘Technological coefficient of these indices is 0.254. The negative direction of
difficulty,’’ 6 ‘‘Expected sales volume’’ and 7 ‘‘Possibility to the 2nd principal component shows the shortness of R&D
get patents’’ are placed in the large negative value of the 1st duration and the positive direction shows small expense. In
principal component. These indices have a positive correlation. other words, it moves to negative direction of 2nd principal
Especially, Indices 2 and 3 have a strong correlation. component when R&D period is short, to positive direction
Considering the above mentioned, the 1st principal component when R&D expenditure becomes large. Therefore, R&D
project has a short developing period and small cost distribute
in the 3rd quadrant and the 4th quadrant. The R&D projects
Table 4
should have a large risk for the company in the case where the
Evaluation of R&D project
sample score on the 2nd axis becomes a large negative value.
Project no. Evaluate indices Total When we verify sample scores in Table 8, Project 17
1 2 3 4 5 6 7 ‘‘commercialization of a low cost X-ray CT system,’’ Project 16
1 4 5 4 1 3 5 5 27 ‘‘development of a medical X-ray CT system (1st step),’’
2 3 3 3 2 4 5 1 21 Project 12 ‘‘development of an optical cutting profile meter’’
3 2 2 2 2 3 3 1 15 and Project 13 ‘‘development of an X-ray Fluoroscope’’ have a
4 1 2 1 1 3 3 1 12 large negative value on the 2nd principal component. In other
5 4 4 4 1 3 3 5 24
words, it can be understood that the cost of development
6 5 4 5 1 3 4 3 25
7 1 2 1 1 1 3 1 10 becomes expensive in the negative direction of the 2nd
8 1 1 1 1 4 2 1 11 principal component.
9 1 1 1 1 1 2 1 8 Simply, it becomes as follows.
10 1 2 1 1 3 4 1 13 Fig. 2 illustrates sample scores shown in Table 8. Fig. 2
11 3 3 3 1 1 5 1 17
shows that the R&D project that has a large negative value on
12 1 2 1 3 1 2 1 11
13 4 4 4 1 2 5 1 21 the 1st principal component has a large evaluated value.
14 5 4 5 2 1 3 1 21 Summarizing these results when, in Fig. 2, R&D projects are
15 4 3 4 2 3 5 1 22 in the 2nd quadrant, and sample scores on the 1st principal
16 5 4 5 2 1 2 1 20 component are a large negative value and sample scores on the
17 5 4 5 3 2 2 1 22
2nd principal component are a large positive value. The project
18 1 2 1 1 4 2 1 12
should have a large evaluation.
S. Imoto et al. / Applied Soft Computing 8 (2008) 1266–1273 1269
Table 5
Correlation coefficient between evaluation indices
Necessity Technological Period Cost Expected Possibility to
difficulty sales volume get a patent
Necessity 1 0.903 0.141 0.097 0.429 0.562
Technological difficulty 0.903 1 0.271 0.147 0.310 0.356
Period 0.141 0.271 1 0.254 0.269 0.311
Cost 0.097 0.147 0.254 1 0.194 0.235
Expected sales volume 0.429 0.310 0.269 0.194 1 0.237
Possibility to get a patent 0.562 0.356 0.311 0.235 0.237 1
Table 6
Category score
1st PC 2nd PC 3rd PC 4th PC 5th PC 6th PC
Necessity 0.959 0.201 0.034 0.026 0.066 0.182
Technological difficulty 0.871 0.376 0.035 0.070 0.275 0.139
Period 0.002 0.822 0.254 0.427 0.277 0.010
Cost 0.034 0.695 0.429 0.564 0.115 0.014
Expected sales volume 0.577 0.383 0.604 0.337 0.202 0.029
Possibility to get a patent 0.676 0.404 0.401 0.369 0.282 0.056
Eigenvalue 2.470 1.651 0.776 0.756 0.290 0.057
Proportion 41.167 27.518 12.933 12.600 4.837 0.945
Accumulated proportion (%) 41.167 68.685 81.617 94.218 99.055 100.000
PC: principal component.
Even if sample scores on the 2nd principal component have a 0.181. It is clarified that four evaluation indices have the similar
large negative value and an R&D project had great risk, the weight and the principal component analysis obtained the
R&D project has sufficient necessity to be selected. The project similar result. In addition, Indices 3 (technological difficulty)
should be evaluated at a large value. and 5 (cost) have the same value 0.100 and Index 4 (period) has
0.074. Table 4 shows the weights of both Indices 1 (objective of
4. Evaluation of R&D project by AHP R&D project proposal) and 3 (technological difficulty) have the
same value as the pair-wise comparison of AHP between both
Here, R&D projects are analyzed through AHP [3–5]. Tables indices are in Table 10.
9 and 10 illustrate the weights of evaluation indices and of the The evaluation score of an R&D project is obtained as shown
alternatives, respectively. Table 9 shows weights of Indices 1 in Table 11 by the calculation using Tables 9 and 10. The
(objective of R&D), 2 (necessity of R&D), 6 (Expected sales evaluation can be pursued by the method shown in Table 4. In
volume) and 7 (possibility to get patent) are the same value, other words, a score of conventional method is defined in
Table 3, and is obtained by the sum total of evaluation indices. projects by principal component analysis and total score by
Concerning principal component analysis as mentioned above, AHP are shown in Table 11.
a project is highly evaluated when it has a large negative value In Table 11, the conventional evaluation method shows the
on the 1st principal component and a large positive value on the method to evaluate an R&D project by the sum total of index
2nd principal component. The total score by conventional score and to define a ranking by the total sum scores. From the
evaluation method and the sample score, ranking of R&D results of AHP and conventional evaluation method, we can
understand the difference of ranking among R&D Projects 2, 4,
12, 13, 14, 15, 16 and 17. Since there are R&D projects with the
Table 7 same score and these projects have a small difference among
Meaning of principal components them, there is no big difference in the results between both
Principal component Direction Meaning methods. Concerning R&D Project 16. There is a difference
1st Negative Necessity such that the ranking of AHP is 6th and conventional evaluation
2nd Positive Development cost method is 9th. In addition, on comparison of the evaluation with
principal component analysis, it seems the difference of
ranking is not big enough, but some difference is recognized.
Table 8
Sample score 5. Construction of R&D evaluation model
Project 1st PC 2nd PC 3rd PC 4th PC 5th PC 6th PC
5.1. Fuzzy regression analysis
1 3.177 1.513 0.412 0.584 0.827 0.266
2 0.472 0.552 0.223 2.021 0.298 0.000
3 1.028 0.116 0.423 0.769 0.283 0.161 A possibilistic regression model is built in terms of the
4 1.363 0.994 0.021 0.006 0.154 0.257 possibility and interpretes all observed values as possibilities
5 2.035 1.154 1.519 1.204 0.309 0.197 which the system should contain. Then, the possibilistic
6 2.016 0.740 0.273 0.180 0.494 0.293
regression model is also renamed as a possibilistic regression
7 1.403 0.021 0.896 1.160 0.230 0.150
8 2.180 1.369 0.953 0.291 0.552 0.254 model [6,7]. In other words, the possibilistic regression
9 2.239 0.091 0.359 1.458 0.025 0.414 model aims to build a model so that it could contain all
10 1.058 1.241 0.592 0.328 0.158 0.155 observed data in the estimated possibilistic numbers resulted
11 0.415 0.024 1.954 0.442 0.126 0.098 from the model.
12 1.713 2.090 0.514 0.054 1.413 0.127
13 1.303 0.196 1.459 0.164 0.483 0.267 Table 9
14 1.007 1.895 0.312 0.301 0.479 0.001 Weights of evaluation indices in AHP
15 0.789 0.112 0.636 1.487 0.179 0.408
16 0.701 2.143 0.258 0.624 0.791 0.101 Evaluation indices
17 0.719 2.588 1.115 0.674 0.236 0.092 1 2 3 4 5 6 7
18 1.649 1.232 0.986 0.266 0.659 0.412
Weight 0.181 0.181 0.100 0.074 0.100 0.181 0.181
PC: principal component.
S. Imoto et al. / Applied Soft Computing 8 (2008) 1266–1273 1271
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