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Enterprise Engineering. Larry Whitman [email protected] (316) 691-5907 (316) fax. Industrial & Manufacturing Enterprise Department The Wichita State University http://www.mrc.twsu.edu/enteng. IE880I. Text

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Enterprise engineering

Enterprise Engineering

Larry Whitman

[email protected]

(316) 691-5907

(316) fax

Industrial & Manufacturing Enterprise Department

The Wichita State University

http://www.mrc.twsu.edu/enteng


Ie880i

IE880I

Text

  • The Great Transition : Using the Seven Disciplines of Enterprise Engineering to Align People, Technology, and Strategy

    • by James Martin

    • Hardcover - 503 pages (September 1995)

    • AMACOM; ISBN: 0814403158

  • Also, significant outside articles will be assigned.


  • Ie880i topics

    IE880I - Topics

    • Overview of Enterprise Engineering (3 weeks)

      • Basic overview of what is enterprise engineering and its benefits. Students will learn the advantages of EntEng and associated terminology and philosophy.

  • IE880I - Exam 1 - February 5, 1999.

    • Test will be closed book/notes - fill in the blank/essay format.

    • One hour long, then we begin the next topic.

  • We will have class Feb 26, 1999

    • Dr. Mahlzahn will be guest speaker on Activity Based Costing


  • What is an enterprise

    What is an Enterprise?

    An Enterprise is a complex systemof cultural, process, and technology components ...

    Enterprise

    Enterprise

    ... a system engineered to accomplish organizational goals.


    What do engineers do

    What do Engineers do?

    Design things!

    Same as other engineers, Enterprise Engineers design things.

    Only their thing is the enterprise


    Systems approach

    Systems Approach

    Environment

    System

    Enterprise

    Goals

    input

    output

    External

    Suppliers

    External

    Customers

    Your

    Supplier

    Your

    Process

    Your

    Customer

    feedback

    feedback

    People

    Tools

    Machines


    Today

    Today

    • Martin Chapter 3-5

    • IE and IT Article by Davenport and Short

    • EntEng: A Discipline? Article by Liles, et al.

    • Verndat Chapter 1


    Wrong use of automation chap 3

    Wrong use of Automation (Chap 3)

    Design

    How can we automate

    what already exists?

    Replace to make

    fundamentally better


    Wrong use of automation chap 31

    Wrong use of Automation (Chap 3)

    System must fit the users and not the reverse?

    Not always, frequently the users must change their ways in order to maximize profits from automation


    Redesign then automate

    Redesign, then automate!

    • Little change, little payoff

    • Big change, big payoff

    • A small change with some payoff may mean it is much more difficult to make the right change later.


    Russell ackoff

    Russell Ackoff

    • “If each part of a system, considered separately, is made to operate as efficiently as possible, the system as a whole will not operate as effectively as possible.


    Martin

    Martin

    • “It is appalling how many authorities on “business process reengineering” advocate modeling and modifying an existing business process when the right thing to do is scrap the process and take an integrated approach to building cyber-crop value streams (discussed later)

    • Raise questions about … overall architecture, culture, and IT


    Electronic organism chap 4

    Electronic Organism (chap 4)

    • As systems become more complex, the design of these systems must be automated.

    • Automation of Automation

    • Reaction times shrink, complexity increases, decisions become less intuitive.


    Key concept

    Key concept

    • JOINT creativity of business and computer people


    Architecture martin

    Architecture - Martin

    • “The architecture of an enterprise is the basic overall organization within which work takes place.

    • Note how this compares with later definitions


    Enteng definition martin chap 5

    EntEng Definition (Martin) (Chap 5)

    • … an integrated set of disciplines for building or changing an enterprise, its processes, and systems. It integrates the most powerful change methods and makes them succeed. The goal is a human-technological partnership of maximum efficiency in which learning takes place at every level. (Martin)


    Goal of the enterprise engineer

    Goal of the Enterprise Engineer

    • “Identify and integrate the most valuable and successful ways to change an enterprise, and to take them into a professional discipline with a teachable methodology and measures of effectiveness.”


    What do enterprise engineers do

    What do Enterprise Engineers do?

    • Identify and Integrate best and most successful ways to change an enterprise


    What do enterprise engineers do1

    What do Enterprise Engineers do?

    • Two aspects

    • Understand new mechanisms

      • New ways of organizing work

      • New Corporate Architectures must be understood

    • Understand methods that can change an enterprise


    Two questions enterprise engineers always ask

    Two questions Enterprise Engineers always ask

    • What should the enterprise be?

    • How do we get there from here?


    Seven components of enterprise engineering

    Seven Components of Enterprise Engineering


    Tqm kaizen

    TQM, Kaizen

    • Continuous change applied across an enterprise

    • Kaizen - Japanese term for continuous improvement

    • Everybody improves everything all the time

      If it aint broke don’t fix it!


    Procedure redesign

    Procedure Redesign

    • Discontinuous reinvention of existing processes

    • Quick hit

    • Low lying fruit


    Value stream reinvention

    Value Stream Reinvention

    • Discontinuous reinvention of “end to end” streams

    • Breakthrough improvement for the CUSTOMER


    Enterprise redesign

    Enterprise Redesign

    • Discontinuous redesign

    • Holistic change to a new world architecture, sometimes accomplished by building new business units of subsidiaries.


    All for changing processes

    All for changing processes

    • Simplifying work

    • Improving results


    Simplification of work note order

    Simplification of Work (note order)

    • Eliminate (bureaucracy and non-value added)

    • Simplify (work flow, etc.)

    • Work Smarter

    • Reduce Middlemen (eliminate)

    • Refine IIS

    • Automate

    • Automate Automation


    Strategic visioning

    Strategic Visioning

    • What is a vision?


    Strategic visioning1

    VISION & STRATEGY

    A Passion for BETTER - FASTER - CHEAPER

    PROCESS

    PEOPLE

    TECHNOLOGY

    Strategic Visioning


    Resisting the tide of change

    Resisting the Tide of Change

    “Doing your best is not enough.”

    W. Edwards Deming

    You must know what to do, how to do it and be willing to pay the price to do it.


    A disciplined planning process

    Define

    Purpose

    Understand

    Environment

    Determine

    Outcomes

    A Disciplined Planning Process

    Vision, Values, Mission

    Issues, Concerns, Assumptions

    Goals

    Identify

    Risk

    Obstacles

    Plan

    Evaluate

    Alternatives

    Strategies

    Act

    Do

    Check

    Assign

    Actions

    Objectives


    An iterative process

    An Iterative Process

    Strategic Purpose

    Focus on the customer

    Environmental Assessment

    Management Commitment


    A disciplined planning process1

    Define

    Purpose

    Understand

    Environment

    Determine

    Outcomes

    A Disciplined Planning Process

    Vision, Values, Mission

    Issues, Concerns, Assumptions

    Goals

    Identify

    Risk

    Obstacles

    Plan

    Evaluate

    Alternatives

    Strategies

    Act

    Do

    Check

    Assign

    Actions

    Objectives


    Do you need a new purpose

    Do You Need a New Purpose?

    • Confusion about where organization is going

    • Complaints about inability to contribute

    • Losing customers

    • Not current on the latest developments

    • Use of “We” and “They”

    • Excessive risk avoidance

    • Difficulty in describing improvement

    • Hyperactive rumor mill


    Purpose

    Values

    Customer Expectations

    Mission

    Vision

    Purpose

    A Process

    Output/ Outcome

    Input

    Activity


    Vision

    Vision

    RIP

    RIP

    Humanity is grateful that someone who so adored their species lived among them

    I would rather be here than in Philadelphia

    What do you want said?


    Vision1

    Vision

    What the organization

    ASPIRES

    to become


    Vision statement

    Vision Statement

    • Appropriate

    • Inspiring

    • Directing

    • Focusing

    • Guiding

    • Unique


    Vision statement1

    Vision Statement

    A vision statement can be used as a marketing tool as well as an inspiration to employees:

    Ford's vision:

    Quality is job 1.

    ADM's vision:

    Supermarket to the world

    If the vision motivates employees, it will influence customers.


    Mission

    Mission

    What the organization

    SHOULD

    be doing


    Mission statement

    Mission Statement

    Broadest strategic planning choices of what the organization should do

    • Products/services

    • Markets

    • Customers

    • Competitors


    Values

    Values

    Guides the

    organization’s

    BEHAVIOR


    Values1

    Values

    • Communicates what is and what is not right

    • Provide context for decision making

    • Enduring

    • Widely shared


    Values statement

    Values Statement

    • Based on values of organization

    • Commits resources to achieve vision

    • Not a slogan

    • Lived everyday

    • Drives behavior of employees at all levels


    Statement of purpose

    Statement of Purpose

    "We will create a corporation in which all people, particularly technical employees, are respected and are able to work to the best of their ability."

    "We will not imitate the products of our competitors, but will try to create goods that have never existed in our market before."

    "We will focus on the consumer market and apply the most advanced technology to the consumer products area."

    Sony Corporation, 1946

    Total Assets: $500

    I know those guys!


    Assignment

    Assignment

    For your own (pretend) company, develop

    • Vision

    • Mission

    • Values


    A discipline

    A Discipline?

    • Article by Liles, Johnson, and Meade 1996

    • Industrial Engineering Research Conference


    Characteristics of a discipline

    Characteristics of a Discipline


    Focus of study

    Focus of Study

    • Unique fundamental question

    • Must be meaningful as technology changes

    • Enterprise Engineering - “how to design and and improve all elements associated with the total enterprise through the use of engineering and analysis methods and tools to more effectively achieve its goals and objectives


    World view

    World View

    • Paradigm

    • Guides the discipline through research and practice

    • Enterprise Engineering

      • Enterprise can be viewed as a complex system

      • Enterprise is to be viewed as a system of processes that can be engineered both individually and holistically

      • Engineering rigor is required in transforming an enterprise

    • Enterprise CAN be engineered


    Reference disciplines

    Reference Disciplines

    • Supporting disciplines must be discovered and assessed not merely adopted.

    • Allows other researchers to follow the links for the grounding of theories


    Principles and practices

    Principles and Practices

    • Principles - Define philosophical approach to problem solving

    • Practices - methodologies, models, procedures, and theories used to apply knowledge

    • Theory - sound principles

    • Abstraction - modeling or representation

    • Design - synthesis - iterative generation and evaluation of alternatives

    • Implementation


    Active research agenda

    Active Research Agenda

    • Hypothesis generated and tested

    • Multiple subquestions

    • Examples:

      • Enterprise Transformation Methodology

      • Strategic Justification Methodology

      • Ontology Development

      • Virtual Enterprise Architecture


    Education and professionalism

    Education and Professionalism

    • Conferences - ISEE Conferences

    • Journals - IIE Transactions, Special Issues

    • Curricula - UTA, Toronto, Edinburgh, Australia

    • Professional Society - ISEE


    Disciplines summary

    Disciplines - Summary


    The new industrial engineering

    The New Industrial Engineering

    • Article by Davenport and Short

    • Sloan Mgmt Review Summer 1990


    It and bpr

    IT and BPR

    • IEs use IT in Manufacturing

    • IEs now penetrate offices


    The new ie

    How can IT support Business Processes?

    BP Redesign

    IT Capabilities

    How can business processes be transformed using IT?

    The New IE

    • Recursive View of IT and BPR


    What are business processes

    What are Business Processes?

    • … a set of logically related tasks performed to achieve a defined business outcome

    • A set of processes forms a business system

    • Characteristics of business processes

      • Customers - recipients of outcomes

      • Cross organizational boundaries


    Redesign with it five steps

    Redesign with IT - Five Steps

    • Develop Business Vision and Process Objectives

    • ID Processes to be Redesigned

    • Understand and Measure the Existing Process

    • ID IT Levers

    • Design and Build a Prototype of the New Design


    Types of processes

    Types of Processes


    Management issues

    Management Issues

    • Management Roles - commitment even through across functional boundaries

    • Processes and Organization

    • Skills - new ones required

    • Continual Organization Improvement

    • IT Organization in Enterprise may change

    • Continuous Process Improvement


    Vernadat text definitions

    Vernadat - Text - Definitions

    • CIM - integrates man and machine by:

      • facilitating communication

      • cooperation

      • coordination

      • across departments

    • JIT - reduce procurement delays and stock

      • assumes good integration of info and good logistics

    • Lean manufacturing - minimize product devlopment costs by elim NVA, outsourcing, org changes

    • Concurrent Engineering - integrating all departments to make things better, faster, cheaper


    Vernadat text definitions cont

    Vernadat - Text - Definitions (cont.)

    • Enterprise - within the bounds of the company

      • intra-enterprise integration

    • Extended Enterprise - beyond the bounds of the company

      • inter-enterprise integration

    • Agility -adapt quickly (able to respond to unanticipated change)

    • Virtual Enterprise - Extended enterprise on a temporary basis.

    • Hetarchical organization - autonomy


    Reasons for cim failures

    Reasons for CIM Failures

    • Top Down Approach

      • One massive project

      • Too Complex

    • Bottom Up Approach

      • Integrating Piece-by Piece

      • Islands of Automation

    • Failed to consider people


    Loose integration vs full integration

    Loose Integration vs Full Integration

    • Loose

      • simple exchange of info

      • no guarantee of same interpretation

      • ex. Dedicated interface

    • Full

      • specificities are known only the the one system

      • two systems contribute to a common task

      • two systems share the definition of items exchanged


    Horizontal vs vertical integration

    Horizontal vs Vertical Integration

    • Business viewpoint

    • Horizontal - from “dock to stock”

      • technologically dependant

    • Vertical - various mgmt levels

      • decision flow


    System application business int

    System/Application/Business Int


    Model what

    Model What?

    • Products

    • Resources

    • Information

    • Organization (and decisions)

    • Business Processes

    • Human (effects)


    Role of em

    Role of EM

    • Prereq for enterprise integration

    • History

      • integration of data and info

      • really business process coordination

    • integrating infrastructure

    • enterprise model - semantic unification


    Problems with ei ee

    Problems with EI/EE

    • Cost (unclear)

    • project size and duration

    • complexity

    • management support - does not clearly relate to strategy

    • skilled people


    Next week

    Next Week

    • BPR

      • Hammer and Champy Book

      • Article by Meyer, deWitte


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