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  1. T1: Enterprise Systems Engineering Chin-Sheng Chen Florida International University

  2. Introduction to ESE • ESE definition • Business environment • Enterprise operation modes • Enterprise production process • Enterprise systems • Enterprise operation system of future

  3. 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.

  4. 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.

  5. 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

  6. 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)

  7. 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.

  8. MTS

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. MTO Categorization

  15. Order Fulfillment Process

  16. Comparison of Operation Modes

  17. 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

  18. ATO

  19. BTO

  20. DTO

  21. MTO: Hierarchical and Incremental Planning

  22. Capacity Plan in large Time Bucket Competency Scope Assembly Mfg Design January February March April Planned Capacity Available Capacity Aggregate Capacity Planning Resources are grouped in buckets, by production phase and timeline

  23. Capacity Plan in Small Time Bucket Competency Scope op3 Assembly op2 op1 op3 Mfg op2 op1 op3 Design op2 op1 w1 w2 w3 w4 w1 w2 w3 w4 w1 w2 w3 w4 w1 w2 w3 w4 January February March April 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)

  24. 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

  25. 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

  26. PLM • Project data management • Sales data • Product data • Manufacturing/test data • Operation/service data • Workflow management • Work flow during • Work flow during operation/service

  27. Current PDM systems • Evolution • CAD • PDM • PLM • Commercial systems • Matrix-one • Windchill/ProE • Iman/Metaphase/MFG Center/UG • Enovia/Catia

  28. Current ERP Systems • Evolution • MRP I • MRP II • ERP I • ERP II • Systems • SAP • Oracle/Peoplesoft/JD Edwards • Baan

  29. Current Project Management Systems • Evolution • Individual user • Enterprise user • Commercial systems • M/S project • Primevera

  30. Current MES Systems • Evolution • Shop floor monitoring & control • Manufacturing execution • From production order • To shipping • Commercial systems • Real-track • Valor

  31. Enterprise operations system of future • Integrative functions of • MRP/ERP • MES • PDM/PLM • Project management

  32. 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