T1: Enterprise Systems EngineeringT1: Enterprise Systems Engineering

Fall 2013Fall 2013

Chin-Sheng ChenChin-Sheng Chen

Florida International UniversityFlorida International University

Introduction to ESEIntroduction to ESE

ESE definitionESE definition Business environmentBusiness environment Enterprise operation modesEnterprise operation modes Enterprise production processEnterprise production process Enterprise systemsEnterprise systems Enterprise operation system of futureEnterprise operation system of future

Enterprise Systems Enterprise Systems Engineering (ESE)Engineering (ESE)

DefinitionDefinition– A discipline that develops and applies systems A discipline that develops and applies systems

engineering tools and techniques to planning, engineering tools and techniques to planning, specification, modeling, analysis, design, specification, modeling, analysis, design, implementation, and implementation, and operationoperation of an enterprise of an enterprise system in its life cycle.system in its life cycle.

ESE Objective & GoalESE Objective & Goal

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

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

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

Enterprise system layersEnterprise system layers Layers (subsystems)Layers (subsystems)

– Physical systemPhysical system In physical existence in a companyIn physical existence in a company

– Managerial systemManagerial system A manual system in place for an existing companyA manual system in place for an existing company It may choose not to manage some physical system elementsIt may choose not to manage some physical system elements Certain computer tools may be in use to assist the manual managerial Certain computer tools may be in use to assist the manual managerial

systemsystem– Computerized managerial systemComputerized managerial system

A system is a replica of and/or replacement of the manual systemA system is a replica of and/or replacement of the manual system It may be equipped with on-line application tools and decision support It may be equipped with on-line application tools and decision support

systems.systems. InterfacesInterfaces

– Between/within the physical, manual, and computerized systemsBetween/within the physical, manual, and computerized systems CommunicationCommunication

– Control Control – Data collection/entryData collection/entry– ReportReport

Major operation modesMajor operation modes

Make-to-stock (MTS)Make-to-stock (MTS)– Accept no back ordersAccept no back orders

ContinuousContinuous BatchBatch Just-in-timeJust-in-time

– Accept back-ordersAccept back-orders Make-to-order (MTO) for back orders onlyMake-to-order (MTO) for back orders only

– Assemble-to-order (ATO)Assemble-to-order (ATO)– Build-to-order (BTO)Build-to-order (BTO)– Engineer-to-order (ETO)Engineer-to-order (ETO)– Develop-to-order (DTO)Develop-to-order (DTO)

MTS BackgroundMTS Background

Traditional operation assumptionsTraditional operation assumptions– Repetitive demand for a productRepetitive demand for a product– Real orders come from distribution centersReal orders come from distribution centers– Product is optimally designed and thus a bill of materials Product is optimally designed and thus a bill of materials

(BOM) is available(BOM) is available– Process plan is optimally designed for volume production of a Process plan is optimally designed for volume production of a

fixed lot size.fixed lot size.– Production facility is set up for continuous or repetitive (batch) Production facility is set up for continuous or repetitive (batch)

production.production.– Labor are single skilled and readily trainedLabor are single skilled and readily trained– SQC is used to manage the quality and the throughput quantity SQC is used to manage the quality and the throughput quantity

of each production. of each production.

MTSMTS

Prepare for Quote

Estimate Lead time

Accept? Stop

Contract Management

Stop

Request for Quotation

AP

MPS

MRP

CRP

Resources Acquisition

Work Order Planning and Scheduling

Shop Floor Control

Execution

Sales Production

Inventory Available?

No

Fulfill Order

Inventory

YesProduct design

BOM

Engineering

Product assembly plan

Yes

No

(trial)

(real)

Part assembly plan

Paradigm ShiftParadigm Shift

Today’s business environmentToday’s business environment– InnovationInnovation– Shortened product life cycle & shortened product development Shortened product life cycle & shortened product development

cyclecycle concurrent engineeringconcurrent engineering

– Frequent changes Frequent changes & & agile operationsagile operations mass customizationmass customization

– Smaller lots and just-in-time production Smaller lots and just-in-time production lean manufacturing/thinkinglean manufacturing/thinking

– Core business and supply networkCore business and supply network– Internet and wireless integrationInternet and wireless integration– Global economy and corporate intelligenceGlobal economy and corporate intelligence

Concurrent engineeringConcurrent engineering

Shortened work lead timeShortened work lead time– Incremental/parallel work planningIncremental/parallel work planning

– Re-active/dynamic work schedulingRe-active/dynamic work scheduling

– On-line monitoringOn-line monitoring

– Real-time controlReal-time control

Shortened material lead timeShortened material lead time– Shortened acquisition lead timeShortened acquisition lead time

– Incremental material planningIncremental material planning

– Pro-active material acquisitionPro-active material acquisition SCMSCM

Mass customizationMass customization

Product developmentProduct development– Unique product design of known familyUnique product design of known family

– Unique production process with known operation typesUnique production process with known operation types

– No extra product and few spare parts madeNo extra product and few spare parts made

– Frequent engineering (product & process) changesFrequent engineering (product & process) changes

Project managementProject management– Tight and rigid delivery commitmentTight and rigid delivery commitment

– Hierarchical work structureHierarchical work structure

– Progressive work planning & executionProgressive work planning & execution

Lean Manufacturing/ConceptLean Manufacturing/Concept

Create value through its value stream by Create value through its value stream by eliminating waste eliminating waste

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

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

Much related to the ABC and the life cycle Much related to the ABC and the life cycle conceptconcept

Life cycle conceptLife cycle concept

Product life-cycle phases:Product life-cycle phases:1.1. Customer needCustomer need

2.2. Product specificationProduct specification

3.3. Product functional designProduct functional design

4.4. Production (process) designProduction (process) design

5.5. Component fabricationComponent fabrication

6.6. Product assembly Product assembly

7.7. Product deliveryProduct delivery

8.8. Product in operation (service)Product in operation (service)

9.9. Product disposalProduct disposal

MTO CategorizationMTO CategorizationP

rodu

ct S

peci

fica

tion

Con

cept

Dev

elop

men

t

Arc

hite

ctur

al D

esig

n

Det

ail D

esig

n

Pro

cess

Des

ign

Man

ufac

turi

ng P

lann

ing/

Sch

edul

ing

Man

ufac

turi

ng O

pera

tion

s

Ass

embl

y

Pro

duct

s

Engineer-to-order

Product Development Process

Build-to-order

Assemble-to-order

Pro

toty

pe

Com

pone

nts

Mat

eria

l Acq

uisi

tion

Tes

t

Cus

tom

er In

tent

Cus

tom

er N

eed

Prod

uct S

peci

ficat

ion

Prod

uct D

esig

n

Proc

ess D

esig

n

Com

pone

nt

Prod

uct

Del

iver

y

Dis

posa

l

NeedAnalysis

ProductSpecification

ProductDesign

ProcessDesign

ComponentFabrication

Con

cept

des

ign

Arc

h. (B

OM

) des

ign

Det

aile

d de

sign

Proc

ess(

tech

nolo

gy) a

naly

sis

Ass

embl

y pr

oces

s pla

nnin

g

Com

pone

nt p

roce

ss p

lann

ing

Mtl.

Req

uest

/Acq

uisi

tion

Fabr

icat

ion

Com

pone

nt re

ques

t/acq

uisi

tion

ProductAssembly Delivery Service

OperationModes

MTSATO

BTO

ETO

DTO

Managementconcepts

Engi

neer

ing

anal

ysis

Ass

embl

y

Lean/Agile ManufacturingMass Customization

Concurrent Engineering

Lean Thinking

Order Fulfillment Process

ATO

BTO

ETO

DTO

Cus

tom

er N

eed

Conc

ept

Arc

h. (B

OM

)

Det

aile

d

Proc

ess D

esig

n

Com

pone

nt

Disp

osal

Prod

uct D

eliv

ery

Prod

uct W

IP

Prod

uct

Prod

uct S

pec.

Need Analysis

Spec. Definition

Functional Design

Assembly Delivery Service

Prod

uct D

esig

n

ProcessDesign

Ass

embl

y Pr

oces

s Pla

n

Com

pone

nt P

roce

ss p

lan

Det

aile

d

Component Fabrication

Mtl.

Req

uest

Mtl.

Acq

uisit

ion

Mtl.

Mgt

.Co

mpo

nent

WIP

MTS

Cus

tom

er In

tent

Comparison of Operation ModesComparison of Operation Modes

Custo

mer

Nee

d

Conc

ept

Arch

. (BO

M)

Detai

led

Proc

ess D

esig

n

Com

pone

nt

Disp

osal

Prod

uct D

elive

ry

Prod

uct W

IP

Prod

uct

Prod

uct S

pec.

Need Analysis

Spec. Definition

Functional Design Assembly Delivery Service

Prod

uct D

esig

n

ProcessDesign

Asse

mbl

y Pr

oces

s Plan

Com

pone

nt P

roce

ss P

lan

Detai

led

Comp. Fabrication

Mtl.

Req

.

Mtl.

Acq

uisit

ion

Mtl.

Mgt

.Co

mpo

nent

WIP

Business Activity

Concurrent Engineering

Mass Customization

Back Order Process

Re-work Process

Spec. backorder

Product/Process backorder

Component backorder

Product backorder

Product backorder

Agile/Lean Mfg.

Re-engineering(Eng. Change) Re-assembly Return Recall

Operation Mode

MTS

ATO

BTO

ETO

DTO

Re-specify R-issue Mtl., Refabracation

Custo

mer

Inte

nt

MTO differentiationMTO differentiation

MTO Operation Modes (and Business Scope) MTO Operation Modes (and Business Scope) – ATO: ATO:

Only assembly effortOnly assembly effort Components availableComponents available Product and process availableProduct and process available

– BTO: BTO: ATO + component manufacturingATO + component manufacturing Product and process availableProduct and process available

– ETO: ETO: BTO + engineeringBTO + engineering Product specification availableProduct specification available

– DTO:DTO: ETO + product specificationETO + product specification Customer need availableCustomer need available

ATOATO

Prepare for Quote

Estimate Cost/Leadtime

Quotation/bidding

Accept? Stop

Contract Management

Stop

Request for Quotation

AP

MPS

MRP

CRP

Resources Acquisition

Work Order Planning and Scheduling

Shop Floor Control

Execution

Revision

Sales Production Engineering

No

Yes

Product assembly plan

Product design BOM

BTOBTO

Prepare for Quote

Estimate Cost/Leadtime

Quotation/bidding

Accept? Stop

Contract Management

Stop

Request for Quotation

AP

MPS

MRP

CRP

Resources Acquisition

Work Order Planning and Scheduling

Shop Floor Control

Execution

Revision

Product design BOM

Sales Production Engineering

Product assembly plan

Component process plan

Tooling BOMs

Tooling assembly plan

Tooling comp. process plan

No

Yes

Prepare for Bid

Request forQuotation

Accept?

Cost/Lead timeAnalysis

Quotation/Bidding

ContractManagement

Stop

Yes

No

Revision

MPS

MRP

CRP

Material ResourcesAcquisition

Work Planning andScheduling

Operation Control

Execution

Stop

SALES OPERATION PRODUCTION OPERATION

PRODUCT/PROCESS DESIGN

ENGINEERING OPERATION

QUALITY ENGINEERING

Order

Bid

MANUFACTURINGOPERATION

Customer Need

Product Spec /Engineering Analysis /

DFX

Concept

Architecture(BOM)

Detailed

ProductDesign

Technology

Assembly

Component

(Product)ProcessDesign

Concept

Architecture(BOM)

Detailed

ToolingDesign

Technology

Assembly

Component

ToolingProcessDesign

Quality Policy/Roadmap

Product QAGuideline

ProductDesign QC

Plan

(Product)Process QC

Plan

ToolingDesign QC

Plan

ToolingProcess QC

Plan

Aggregate Plan

DTODTO

Prepare for Quote

Estimate Cost/Leadtime

Quotation/bidding

Accept? Stop

Contract Management

Stop

Request for Quotation

CRP

Resources Acquisition

Work Order Planning and Scheduling

Shop Floor Control

Execution

Revision

(Trial)

(Real)

Customer Intent

Customer Need

Product Spec.

Sales Production Engineering

Yes

No

MTO: Hierarchical and Incremental PlanningMTO: Hierarchical and Incremental Planning

Deliverable

Task 1

Op 1

Task 2 Task 3

Step 1

Op 1 Op 2 Op 3

Op 2 Op 3

Step 2 Step 3

Step 1 Step 2 Step 3

Incremental Planning

HierarchicalPlanning

Level 1

Level 2

Level 3

Level 4

Task 1

Task 2

Task n

New Planned

Approved

Released

Completed

Plan

Approve

Release

New Planned

Approved

Released

Completed

Plan

Approve

Release

New Planned

Approved

Released

Completed

Plan

Approve

Release

Shop floorExecution

Task Level 1

Task Level 2

Task Level N

Aggregate Capacity PlanningAggregate Capacity Planning

January February March April

Design

Mfg

Assembly

Competency Scope

Planned Capacity

Available Capacity

Capacity Plan in large Time Bucket

Resources are grouped in buckets, by production phase and timeline

Aggregate Capacity PlanningAggregate Capacity Planning

January February March April

Design

Mfg

Competency Scope

Planned Capacity

Available Capacity

Capacity Plan in Small Time Bucket

w1 w2 w3 w4 w1 w2 w3 w4 w1 w2 w3 w4 w1 w2 w3 w4

op1

op2

op3

op1

op2

op3

op1

op2

op3

Assembly

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 schedulingDetailed scheduling

Each resource Each resource

instance is instance is

associated with a associated with a

specific work unit, specific work unit,

abiding by the two abiding by the two

classical scheduling classical scheduling

principles. That is, principles. That is,

each machine can each machine can

process only one job process only one job

and each job can be and each job can be

on one machine at a on one machine at a

timetime

Operation controlOperation control

Project control (work orders)Project control (work orders)– Control of quality, lead time, and cost of work Control of quality, lead time, and cost of work

within a projectwithin a project Shop floor control (resources)Shop floor control (resources)

– Control of the use of resources for work Control of the use of resources for work ordersorders

PLMPLM

Project data managementProject data management– Sales dataSales data– Product dataProduct data– Manufacturing/test dataManufacturing/test data– Operation/service dataOperation/service data

Workflow managementWorkflow management– Work flow duringWork flow during– Work flow during operation/serviceWork flow during operation/service

Current PDM systemsCurrent PDM systems

EvolutionEvolution– CADCAD

– PDMPDM

– PLMPLM Commercial systemsCommercial systems

– Matrix-oneMatrix-one

– Windchill/ProEWindchill/ProE

– Iman/Metaphase/MFG Center/UGIman/Metaphase/MFG Center/UG

– Enovia/CatiaEnovia/Catia

Current ERP SystemsCurrent ERP Systems

EvolutionEvolution– MRP IMRP I

– MRP IIMRP II

– ERP IERP I

– ERP IIERP II SystemsSystems

– SAPSAP

– Oracle/Peoplesoft/JD EdwardsOracle/Peoplesoft/JD Edwards

– BaanBaan

Current Project Current Project Management SystemsManagement Systems Evolution Evolution

– Individual userIndividual user– Enterprise userEnterprise user

Commercial systemsCommercial systems– M/S projectM/S project– PrimeveraPrimevera

Current MES Systems Current MES Systems

EvolutionEvolution– Shop floor monitoring & controlShop floor monitoring & control– Manufacturing executionManufacturing execution

From production orderFrom production order To shippingTo shipping

Commercial systemsCommercial systems– Real-trackReal-track– ValorValor

Enterprise operations Enterprise operations system of futuresystem of future Integrative functions ofIntegrative functions of

– MRP/ERPMRP/ERP– MESMES– PDM/PLMPDM/PLM– Project managementProject management

Impact to the societyImpact to the society Automation (mechanization and computerization)Automation (mechanization and computerization)

– NC/CNC/CAM affects/replaces labor and skilled workersNC/CNC/CAM affects/replaces labor and skilled workers– CAD/PDM affects/replaces technicians and engineersCAD/PDM affects/replaces technicians and engineers– ERP affects/replaces middle-layer supervisors and managersERP affects/replaces middle-layer supervisors and managers– Supply chains (outsourcing) affect/replace non-core departmentsSupply chains (outsourcing) affect/replace non-core departments

Global sourcingGlobal sourcing– Affects/eliminates many domestic manufacturing industriesAffects/eliminates many domestic manufacturing industries– Started affecting some service industries as wellStarted affecting some service industries as well

OpportunityOpportunity– Certain manufacturing industriesCertain manufacturing industries

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

– Most service industriesMost service industries– New product and technology development, market study (need New product and technology development, market study (need

analysis)analysis)– EntrepreneurshipEntrepreneurship