enterprise engineering
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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 - PowerPoint PPT PresentationTRANSCRIPT
Enterprise Engineering
Enterprise Engineering
Industrial & Manufacturing Enterprise DepartmentThe Wichita State Universityhttp://www.mrc.twsu.edu/enteng
Larry Whitman [email protected](316) 691-5907(316) fax
Enterprise Engineering
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.
Enterprise Engineering
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
Enterprise Engineering
What is an Enterprise?
An Enterprise is a complex systemof cultural, process, and technology components ...
... a system engineered to accomplish organizational goals.
EnterpriseEnterprise
Enterprise Engineering
What do Engineers do?
Same as other engineers, Enterprise Engineers design things.
Only their thing is the enterprise
Design things!
Enterprise Engineering
Systems Approach
feedback
YourSupplier
YourCustomer
feedback
input output
EnterpriseGoals
PeopleTools
Machines
YourProcess
System
Environment
ExternalSuppliers
ExternalCustomers
Enterprise Engineering
Today
Martin Chapter 3-5 IE and IT Article by Davenport and Short EntEng: A Discipline? Article by Liles, et
al. Verndat Chapter 1
Enterprise Engineering
Wrong use of Automation (Chap 3)
How can we automatewhat already exists?
Design
Replace to make fundamentally betterReplace to make fundamentally better
Enterprise Engineering
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
Enterprise Engineering
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.
Enterprise Engineering
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.
Enterprise Engineering
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
Enterprise Engineering
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.
Enterprise Engineering
Key concept
JOINT creativity of business and computer people
Enterprise Engineering
Architecture - Martin
“The architecture of an enterprise is the basic overall organization within which work takes place.
Note how this compares with later definitions
Enterprise Engineering
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)
Enterprise Engineering
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.”
Enterprise Engineering
What do Enterprise Engineers do?
Identify and Integrate best and most successful ways to change an enterprise
Enterprise Engineering
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
Enterprise Engineering
Two questions Enterprise Engineers always ask
What should the enterprise be?
How do we get there from here?
Enterprise Engineering
Seven Components of Enterprise Engineering
Enterprise Engineering
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!
Enterprise Engineering
Procedure Redesign
Discontinuous reinvention of existing processes
Quick hit
Low lying fruit
Enterprise Engineering
Value Stream Reinvention
Discontinuous reinvention of “end to end” streams
Breakthrough improvement for the CUSTOMER
Enterprise Engineering
Enterprise Redesign
Discontinuous redesign
Holistic change to a new world architecture, sometimes accomplished by building new business units of subsidiaries.
Enterprise Engineering
All for changing processes
Simplifying work Improving results
Enterprise Engineering
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
Enterprise Engineering
Strategic Visioning
What is a vision?
Enterprise Engineering
Strategic Visioning
Enterprise Engineering
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.
Enterprise Engineering
UnderstandEnvironment
A Disciplined Planning Process
DefinePurpose Vision, Values, Mission
Issues, Concerns, Assumptions
Goals
Strategies
Obstacles
Objectives
Plan
Do
Check
Act
DetermineOutcomes
Identify Risk
EvaluateAlternatives
AssignActions
Enterprise Engineering
An Iterative Process
Strategic Purpose
Management Commitment
Environmental Assessment
Focus on the customer
Enterprise Engineering
UnderstandEnvironment
A Disciplined Planning Process
DefinePurpose Vision, Values, Mission
Issues, Concerns, Assumptions
Goals
Strategies
Obstacles
Objectives
Plan
Do
Check
Act
DetermineOutcomes
Identify Risk
EvaluateAlternatives
AssignActions
Enterprise Engineering
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
Enterprise Engineering
Purpose
Values
Mission VisionCustomer
Expectations
A Process
Input ActivityOutput/
Outcome
Enterprise Engineering
Vision
What do you want said?
Humanity is grateful that
someone who so adored their species lived among them
RIP
I would rather be
here than in Philadelphia
RIP
Enterprise Engineering
What the organization
ASPIRES to become
Vision
Enterprise Engineering
Vision Statement
Appropriate
Inspiring
Directing
Focusing
Guiding
Unique
Enterprise Engineering
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.
Enterprise Engineering
Mission
What the organization
SHOULDSHOULDbe doing
Enterprise Engineering
Mission Statement
Broadest strategic planning choices of what the organization should do
• Products/services
• Markets
• Customers
• Competitors
Enterprise Engineering
Values
Guides the
organization’s
BEHAVIOR
Enterprise Engineering
Values
Communicates what is and what is not right
Provide context for decision making
Enduring
Widely shared
Enterprise Engineering
Values Statement
Based on values of organization
Commits resources to achieve vision
Not a slogan
Lived everyday
Drives behavior of employees at all levels
Enterprise Engineering
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, 1946Total Assets: $500
I know those guys!
Enterprise Engineering
Assignment
For your own (pretend) company, develop
Vision
Mission
Values
Enterprise Engineering
A Discipline?
Article by Liles, Johnson, and Meade 1996
Industrial Engineering Research Conference
Enterprise Engineering
Characteristics of a Discipline
ReferenceDisciplines
Focus ofStudy
WorldView
Principles&
Practices
ActiveResearchAgenda
Education&
Professionalism
Enterprise Engineering
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
Enterprise Engineering
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
Enterprise Engineering
Reference Disciplines
Supporting disciplines must be discovered and assessed not merely adopted.
Allows other researchers to follow the links for the grounding of theories
Industrial Engineering
Systems Engineering/Systems Theory
Information Systems
Information Technology
Business Process Reengineering
Organizational Design/Human Systems
Enterprise Engineering
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
Enterprise Engineering
Active Research Agenda
Hypothesis generated and tested Multiple subquestions
Examples: Enterprise Transformation Methodology Strategic Justification Methodology Ontology Development Virtual Enterprise Architecture
Enterprise Engineering
Education and Professionalism Conferences - ISEE Conferences
Journals - IIE Transactions, Special Issues
Curricula - UTA, Toronto, Edinburgh, Australia
Professional Society - ISEE
Enterprise Engineering
Disciplines - Summary
Enterprise Engineering Discipline
Focus of Study A well defined and uniquefocus of study is established.
World View A world view or paradigm isfirmly established.
ReferenceDisciplines
A solid, but narrow set ofreference disciplines has been
identified.
Principles &Practices
A set of principles andpractices is emerging.
Active ResearchAgenda
A cumulative researchtradition must be established.
Education &Professionalism
Specific journals, universityprograms and local chapters
are needed.
Enterprise Engineering
The New Industrial Engineering Article by Davenport and Short
Sloan Mgmt Review Summer 1990
Enterprise Engineering
IT and BPR
IEs use IT in Manufacturing
IEs now penetrate offices
Enterprise Engineering
The New IE
Recursive View of IT and BPR
How can IT support Business Processes?How can IT support Business Processes?
How can business processes be transformed using IT?How can business processes be transformed using IT?
IT CapabilitiesIT Capabilities BP RedesignBP Redesign
Enterprise Engineering
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
Enterprise Engineering
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
Enterprise Engineering
Types of Processes
Process Dimension &Type
Typical Example Typical IT Role
Entities
Interorganizational Order from a supplier Lower transaction costs;eliminate intermediaries
Interfunctional Develop a new product Work across geography;greater simultaneity
Interpersonal Approve a bank loan Role and task integration
Objects
Physical Mfg a product Increased outcomeflexibility
Informational Create a proposal
Activities
Operational Fill order Reduce time and costs;increase output quality
Managerial Develop a budget Improve analysis; increaseparticipation
Enterprise Engineering
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
Enterprise Engineering
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
Enterprise Engineering
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
Enterprise Engineering
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
Enterprise Engineering
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
Enterprise Engineering
Horizontal vs Vertical Integration Business viewpoint
Horizontal - from “dock to stock” technologically dependant
Vertical - various mgmt levels decision flow
Enterprise Engineering
System/Application/Business Int
Enterprise Engineering
Model What?
Products Resources Information Organization (and decisions) Business Processes Human (effects)
Enterprise Engineering
Role of EM
Prereq for enterprise integration
History integration of data and info really business process coordination
integrating infrastructure enterprise model - semantic unification
Enterprise Engineering
Problems with EI/EE
Cost (unclear)
project size and duration
complexity
management support - does not clearly relate to strategy
skilled people
Enterprise Engineering
Next Week
BPR
Hammer and Champy Book
Article by Meyer, deWitte