Don Steward coined the term "design structure matrix" in the 1960s,[2] using the matrices to solve mathematical systems of equations.
A design structure matrix lists all constituent subsystems/activities and the corresponding information exchange, interactions, and dependency patterns.
DSMs have been applied in the building construction, real estate development, semiconductor, automotive, photographic, aerospace, telecom, small-scale manufacturing, factory equipment, and electronics industries, to name a few, as well as in many government agencies.
Self-iterations are required when a matrix element represents a block of activities/subsystems that may be further detailed, allowing hierarchical DSM structure.
[5] Static DSMs represent systems where all of the elements exist simultaneously, such as components of a machine or groups in an organization.
A time-based DSM is akin to a precedence diagram or the matrix representation of a directed graph.
Time-based DSMs are typically analyzed using sequencing algorithms, that reorder the matrix elements to minimize the amount of feedback marks, and make them as close as possible to the diagonal.
Initially, the off-diagonal cell markings indicated only the existence/non-existence of an interaction (link) between elements, using a symbol (or the figure '1').
[citation needed] The DSM algorithms are used for reordering the matrix elements subject to some criteria.
The use of DSM has been extended to visualize and optimize the otherwise invisible information flow and interactions associated with office work.
This visualization via DSM allows the Lean Body of Knowledge to be applied to office and information intensive flows.