Enterprise Engineering

Towards the 21 st Century. A Unified Approach to Enterprise

Improvement.

Advanced Manufacturing Technology

Enterprise Engineering

The Challenges of Change

Re-Engineering the I.T. Function

Strategic Visioning

Business Process Re-Engineering

Continuous Process Improvement

Integrated Change Processes

Information Engineering

Readiness Assessment

Re-invention of Enterprise Structures

Explosive changes in technology

Fundamental Changes in How people work

Corporate Survival?

• 1/3 of 1970’s FORTUNE 500 had vanished by the end of the 1998’s • The death rate is increasing

• 1/3 of today’s FORTUNE 500 will be gone in 10 years time

Changing Technology

• Pervasive, powerful intelligent devices • Automated factories • Client server and right sizing • Co-operative processing – Groupware • Electronic channels – EDI • High band width open networks • Multi media – Image and voice • User oriented information systems • Rapid software development

Automated Manufacturing

PEOPLE 130 5

VOLUME/DAY 700 2000

INVENTORY TURNOVER 5x 80x

MEAN TIME 1 year 8 years BETWEEN FAILURES

IBM 1995

IBM 2010

Changing Marketplace

• Globalism • Trading Blocks Pacific Rim European Community NAFTA • Deregulation • More competitors; lower margins • Oversupply of products; greater choice • Increased customer expectations

Changing Enterprise

• Shorter windows of opportunity • Fast redesign of products • Extended enterprise (EDI links) • Participative Management • Empowered Work Force • Entrepreneurship • Growth of high-tech countries (like Japan) • Growth of cheap-labour countries (Ex-USSR, India, China)

Paradigm Shift – Industrial Worker to Knowledge Worker

Machine Fragmented Work • Minimize scope of individual work • People serve machines • Integrate top-down • Hierarchical management structure Computers and Networks Integrate Work Maximize value of individual worker’s contribution Human/Technology partnership Workers integrate bottom-up Dynamic management structure

As technology grows in power, It increasingly has the capacity to change how the enterprise Should function

Rethink the scope of the enterprise

Re-engineer Enterprise wide Value streams

Redesign Business

procedures Automate Existing systems

The New Visions

• Quality – “Customer Delight” • Responsiveness • “Strategic opportunities from I.T.” • “Empowering the work force” • “Change for Survival”

Key Questions Concerning Change

Visioning What do we need to become? How much needs to change?

Building How do we change?

Controlling Who are the change agents? How are we doing?

Model of Change

Building Processes

Management Processes

Results Now!

• Focus on customers • “Do more with less;” reduce cycle time • Measure and track performance • Accountable teams

A New Paradigm

• Knowledge-centred vs Machine-centred work

• Empowerment and vs Control as management’s

learning central role

• Flexible and creative vs Rigid and Authoritarian

processes

• Chaotic and boundary vs Structured and self-

-less contained organisations

and systems

Organisation Structure

“Every organisation is designed perfectly to Get the results that it gets”.

David Hanna

Information Flow is slow and painful Management layers filter information Turf defence becomes more of a priority than optimising productivity

Implementing and Sustaining Change

Shared Vision

Continuous Learning

Cycle

Compare

Results Act

Implement Plan

Change Management

Change Team

…

Shared Vision

Align

Sponsor

Continuous Process Improvement

A systematic approach taken by all employees to achieve the highest levels of quality and competitiveness through continuous improvement of operations, products and services

Leadership

Information and Analysis

Planning for Quality Human

Resource Utilisation

Quality Assurance

Quality Results

Customer Satisfaction

EE

Enterprise Engineering

A disciplined and architecturally based approach to continuously building

the modern corporation and the information sharing systems which enable it.

What Is Strategic Visioning?

A learning process that creates architectural sketches, blueprints and Road Maps for the transition to an enterprise.

Manufacturing Vision

Flexible Manufacturing

• Market driven • Improved time to market • Modular products and components

World Class Effectiveness

• Technology leadership • Low life cycle cost • Total quality company

Examples of Vision

Ford • Quality is Job 1

Honda • Quality in all jobs – learn, think, analyse, evaluate and improve • Reliable products – on time, with excellence and consistency • Better communication – listen, ask and speak up

• Extends over years • Initial phases normally take four months • Focuses attention on: Validation of results Creation of implementation plans

Strategic Visioning

BPR – Business Process Re-Engineering

Fundamental rethinking and radical redesign of business processes,

jobs, structure and control, to achieve dramatic improvements in cost,

quality, service and speed

The BPR Perspective

• Set very aggressive targets • Take the customer’s view (value stream) • Give customers excellence • Empower workers • User technology innovatively • Share data across functions • Develop new measures and rewards • Rewrite the business rules

Example of BPR

FORD No. of People for vendor payment 500 125

CON EDISON Admin. Costs of procurement 100% 20%

DIGITAL EQUIPMENT Manufacturing defect rate 17% 3%

CANON Productivity of lens designers 1 x 14

BEFORE AFTER

Value Stream

A sequence of processes which create A result of value to a customer.

“A value stream is a logical collection of people, skills, tools and tasks that interact to promote customer satisfaction and thus provide value to the business”

What are the Critical Success Factors For BPR?

• Led from the Top – Sponsorship, Involvement • Desire for Radical Improvement • Motivate Project Team (Full Time) • “Clean Sheet of Paper” – no preconceived ideas • Value Stream, not organisational, orientation • Clear distinction between incremental process improvement and re-engineering Re-invent, without constraints Give us options to scale down

Enterprise Resource Planning

A method for the effective planning and controlling of ALL these sources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company.

Includes:

Typical MRP II Functions Quality Functions

Sales Force Automation Field Service Functions

Engineering Function / PDM Complete Financial Functions

Advance Manufacturing Function Human Resources Functions

Distribution / Logistics Functions Management Reporting

ERP is a System for the Entire Company – A Global Tightly

Integrated Closed-Loop System (1) Source: APICS Complex Industries Special Interest Group

To improve the profitability of the company

To solve problems of legacy systems (year 2000)

To be able to cope with new production requirements

To provide the architectural anchor for rationalization of

acquisitions

To provide interoperability of its organizations

To provide the means for Supply Chain Management

Why ERP?

Fully integrated systems where everyone has instant access to the latest accurate information One data base, date is added only once and used by All The system allows interoperability of the internal and external supply chain

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What is Flexible Manufacturing System?

A flexible manufacturing system (FMS) is a form of flexible automation in which several machine tools are linked together by a material-handling system, and all aspects of the system are controlled by a central computer.

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What are The Features of FMS?

An FMS is distinguished from an automated production line by its ability to process more than one product style simultaneously.

At any moment, each machine in the system may be processing a different part type.

FMS can let us make changes in production schedule in order to meet the demands on different products.

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Distinguishing Characteristics:

An automatic materials handling subsystem links machines in the system and provides for automatic interchange of work pieces in each machine

Automatic continuous cycling of individual machines

Complete control of the manufacturing system by the host computer

Lightly manned, or possibly unmanned

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Components of FMS Systems

Robotics Material Handling / Transport Machines Manual / Automated Assembly Cells Computers Controllers Software Networks

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Benefits of FMS FMS systems are intended to solve the

following problems:

Reduced work in process Increased machine utilization Better management control Reduced direct and indirect labor Reduced manufacturing lead-time Consistent and better quality Reduced inventory