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T1: Enterprise Systems Engineering. Chin-Sheng Chen Florida International University. Introduction to ESE. ESE definition Business environment Enterprise operation modes Enterprise production process Enterprise systems Enterprise operation system of future.

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T1 enterprise systems engineering

T1: Enterprise Systems Engineering

Chin-Sheng Chen

Florida International University

Introduction to ese
Introduction to ESE

  • ESE definition

  • Business environment

  • Enterprise operation modes

  • Enterprise production process

  • Enterprise systems

  • Enterprise operation system of future

Enterprise systems engineering ese
Enterprise Systems Engineering (ESE)

  • Definition

    • A discipline that develops and applies systems engineering tools and techniques to planning, specification, modeling, analysis, design, implementation, and operation of an enterprise system in its life cycle.

Ese objective goal
ESE Objective & Goal

  • Study the nature, behavior, and function of an enterprise operation in a global environment

  • Build a theoretical, scientific foundation to study the integrative and collaborative nature of enterprise behaviors.

  • Develop engineering tools and methods for enterprise systems design, analysis and implementation.

Enterprise system layers
Enterprise system layers

  • Layers (subsystems)

    • Physical system

      • In physical existence in a company

    • Managerial system

      • A manual system in place for an existing company

      • It may choose not to manage some physical system elements

      • Certain computer tools may be in use to assist the manual managerial system

    • Computerized managerial system

      • A system is a replica of and/or replacement of the manual system

      • It may be equipped with on-line application tools and decision support systems.

  • Interfaces

    • Between/within the physical, manual, and computerized systems

      • Communication

        • Control

        • Data collection/entry

        • Report

Major operation modes
Major operation modes

  • Make-to-stock (MTS)

    • Accept no back orders

      • Continuous

      • Batch

      • Just-in-time

    • Accept back-orders

  • Make-to-order (MTO) for back orders only

    • Assemble-to-order (ATO)

    • Build-to-order (BTO)

    • Engineer-to-order (ETO)

    • Develop-to-order (DTO)

Mts background
MTS Background

  • Traditional operation assumptions

    • Repetitive demand for a product

    • Real orders come from distribution centers

    • Product is optimally designed and thus a bill of materials (BOM) is available

    • Process plan is optimally designed for volume production of a fixed lot size.

    • Production facility is set up for continuous or repetitive (batch) production.

    • Labor are single skilled and readily trained

    • SQC is used to manage the quality and the throughput quantity of each production.

Paradigm shift
Paradigm Shift

  • Today’s business environment

    • Innovation

    • Shortened product life cycle & shortened product development cycle

      • concurrent engineering

    • Frequent changes & agile operations

      • mass customization

    • Smaller lots and just-in-time production

      • lean manufacturing/thinking

    • Core business and supply network

    • Internet and wireless integration

    • Global economy and corporate intelligence

Concurrent engineering
Concurrent engineering

  • Shortened work lead time

    • Incremental/parallel work planning

    • Re-active/dynamic work scheduling

    • On-line monitoring

    • Real-time control

  • Shortened material lead time

    • Shortened acquisition lead time

    • Incremental material planning

    • Pro-active material acquisition

      • SCM

Mass customization
Mass customization

  • Product development

    • Unique product design of known family

    • Unique production process with known operation types

    • No extra product and few spare parts made

    • Frequent engineering (product & process) changes

  • Project management

    • Tight and rigid delivery commitment

    • Hierarchical work structure

    • Progressive work planning & execution

Lean manufacturing concept
Lean Manufacturing/Concept

  • Create value through its value stream by eliminating waste

  • A waste is an activity that consumes resources but creates no values.

  • The value stream may reach product’s entire supply and service chains.

  • Much related to the ABC and the life cycle concept

Life cycle concept
Life cycle concept

  • Product life-cycle phases:

    • Customer need

    • Product specification

    • Product functional design

    • Production (process) design

    • Component fabrication

    • Product assembly

    • Product delivery

    • Product in operation (service)

    • Product disposal

Mto differentiation
MTO differentiation

  • MTO Operation Modes (and Business Scope)

    • ATO:

      • Only assembly effort

      • Components available

      • Product and process available

    • BTO:

      • ATO + component manufacturing

      • Product and process available

    • ETO:

      • BTO + engineering

      • Product specification available

    • DTO:

      • ETO + product specification

      • Customer need available

Aggregate capacity planning

Capacity Plan in large Time Bucket

Competency Scope








Planned Capacity

Available Capacity

Aggregate Capacity Planning

Resources are grouped in buckets, by production phase and timeline

Aggregate capacity planning1

Capacity Plan in Small Time Bucket

Competency Scope

































Planned Capacity

Available Capacity

Aggregate Capacity Planning

Buckets are refined to smaller sizes by smaller resources and time units, as work is being decomposed into smaller units (deliverables, tasks and operations)

Detailed scheduling
Detailed scheduling

Each resource instance is associated with a specific work unit, abiding by the two classical scheduling principles. That is, each machine can process only one job and each job can be on one machine at a time

Operation control
Operation control

  • Project control (work orders)

    • Control of quality, lead time, and cost of work within a project

  • Shop floor control (resources)

    • Control of the use of resources for work orders


  • Project data management

    • Sales data

    • Product data

    • Manufacturing/test data

    • Operation/service data

  • Workflow management

    • Work flow during

    • Work flow during operation/service

Current pdm systems
Current PDM systems

  • Evolution

    • CAD

    • PDM

    • PLM

  • Commercial systems

    • Matrix-one

    • Windchill/ProE

    • Iman/Metaphase/MFG Center/UG

    • Enovia/Catia

Current erp systems
Current ERP Systems

  • Evolution

    • MRP I

    • MRP II

    • ERP I

    • ERP II

  • Systems

    • SAP

    • Oracle/Peoplesoft/JD Edwards

    • Baan

Current project management systems
Current Project Management Systems

  • Evolution

    • Individual user

    • Enterprise user

  • Commercial systems

    • M/S project

    • Primevera

Current mes systems
Current MES Systems

  • Evolution

    • Shop floor monitoring & control

    • Manufacturing execution

      • From production order

      • To shipping

  • Commercial systems

    • Real-track

    • Valor

Enterprise operations system of future
Enterprise operations system of future

  • Integrative functions of

    • MRP/ERP

    • MES

    • PDM/PLM

    • Project management

Impact to the society
Impact to the society

  • Automation (mechanization and computerization)

    • NC/CNC/CAM affects/replaces labor and skilled workers

    • CAD/PDM affects/replaces technicians and engineers

    • ERP affects/replaces middle-layer supervisors and managers

    • Supply chains (outsourcing) affect/replace non-core departments

  • Global sourcing

    • Affects/eliminates many domestic manufacturing industries

    • Started affecting some service industries as well

  • Opportunity

    • Certain manufacturing industries

      • That require proximity to the market or have national security concerns.

    • Most service industries

    • New product and technology development, market study (need analysis)

    • Entrepreneurship