Topic 1: Introduction to Enterprise Systems Engineering Chin-Sheng Chen Florida International University

Outline Course objective and goal Course objective and goal ESE definition ESE definition Business environment Business environment Enterprise operation modes Enterprise operation modes Enterprise production process Enterprise production process Enterprise systems Enterprise systems Enterprise operation system of future Enterprise operation system of future

Course Objective & Goal Study the nature, behavior, and function of an enterprise operation Study the nature, behavior, and function of an enterprise operation Build a theoretical and scientific science foundation for study of (the integrative and collaborative nature of) enterprise behavior in global economy. Build a theoretical and scientific science foundation for study of (the integrative and collaborative nature of) enterprise behavior in global economy. Develop frameworks and components for building an enterprise system Develop frameworks and components for building an enterprise system

Enterprise Systems Engineering (ESE) Definition Definition –ESE 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.

Enterprise system layers Layers (subsystems) Layers (subsystems) –Physical system In physical existence in a company In physical existence in a company –Managerial system A manual system put in place to run a company A manual system put in place to run a company It may choose not to manage some physical system elements It may choose not to manage some physical system elements Certain computer tools may be in use to assist the manual managerial system Certain computer tools may be in use to assist the manual managerial system –Computerized managerial system It computerizes the managerial system as a replacement and/or to supplement the manual system. It computerizes the managerial system as a replacement and/or to supplement the manual system. It may be equipped with on-line application tools and decision support systems. It may be equipped with on-line application tools and decision support systems. Interfaces Interfaces –Between/within the physical, manual, and computerized systems Communication Communication –Data collection/entry –Report –Control

Major operation modes Make-to-stock (MTS) Make-to-stock (MTS) –Accept no back orders Continuous Continuous Batch Batch Just-in-time Just-in-time –Accept back-orders Make-to-order (MTO) for back orders only 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 Traditional operation assumptions 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.

MTS

Paradigm Shift Today’s business environment Today’s business environment –Innovation –Shortened product life cycle & shortened product development cycle concurrent engineering concurrent engineering –Frequent changes & agile operations mass customization mass customization –Smaller lots and just-in-time production lean manufacturing/thinking lean manufacturing/thinking –Core business and supply network –Internet and wireless integration –Global economy and corporate intelligence

Concurrent engineering & concurrent operations Shortened work lead time Shortened work lead time –Incremental/parallel work planning –Re-active/dynamic work scheduling –On-line monitoring –Real-time control Shortened material lead time Shortened material lead time –Shortened acquisition lead time –Incremental material planning –Pro-active material acquisition SCM SCM

Mass customization Product development 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 Project management –Tight and rigid delivery commitment –Hierarchical work structure –Progressive work planning & execution

Lean Manufacturing/Concept Create value through its value stream by eliminating waste Create value through its value stream by eliminating waste A waste is an activity that consumes resources but creates no values. A waste is an activity that consumes resources but creates no values. The value stream may reach product’s entire supply and service chains. The value stream may reach product’s entire supply and service chains. Much related to the ABC and the life cycle concept Much related to the ABC and the life cycle concept

Expanded Life cycle concept Product life-cycle phases: Product life-cycle phases: 1. Customer need 2. Product specification 3. Product functional design 4. Production (process) design 5. Component fabrication 6. Product assembly 7. Product delivery 8. Product in operation (service) 9. Product disposal

MTO Categorization

Order Fulfillment Process

Comparison of Operation Modes

MTO differentiation Work contents Work contents –ATO: Only assembly effort Only assembly effort Components available Components available Product and process available Product and process available –BTO: ATO + component manufacturing ATO + component manufacturing Product and process available Product and process available –ETO: BTO + engineering BTO + engineering Product specification available Product specification available –DTO: ETO + product specification ETO + product specification Customer need available Customer need available

ATO

BTO

DTO

Hierarchical and Incremental Planning

Capacity Planning JanuaryFebruaryMarchApril 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

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 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 Project control (work orders) Project control (work orders) –Control of quality, lead time, and cost of work within a project Shop floor control (resources) Shop floor control (resources) –Control of the use of resources for work orders

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

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

Current ERP Systems Evolution Evolution –MRP I –MRP II –ERP I –ERP II Systems Systems –SAP –Oracle/Peoplesoft/JD Edwards –Baan

Current Project Management Systems Evolution Evolution –Individual user –Enterprise user Commercial systems Commercial systems –M/S project –Primevera

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

Enterprise operations system of future Integrative functions of Integrative functions of –MRP/ERP –MES –PDM/PLM –Project management

Impact to the society Automation (mechanization and computerization) 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 Global sourcing –Affects/eliminates many domestic manufacturing industries –Started affecting some service industries as well Opportunity Opportunity –Certain manufacturing industries That require proximity to the market or have national security concerns. That require proximity to the market or have national security concerns. –Most service industries –New product and technology development, market study (need analysis) –Entrepreneurship

T1 Homework Develop a diagram that integrates all business functions to enable the support for various operation modes as discussed in class. Develop a diagram that integrates all business functions to enable the support for various operation modes as discussed in class. View FIU as a business of education, View FIU as a business of education, –identify its mission, value, vision, goal, and strategy –Identify its core business, major business functions, and operation mode(s) –Develop a framework (diagram) for one of its core business (and its operation mode (as an as-is model). Use the flowchart diagrams given in class as a template Use the flowchart diagrams given in class as a template Framework is a basic arrangement, form, system, or systematic taxonomy of concepts for relating things in the real world to a presentation (in the computer world). Framework is a basic arrangement, form, system, or systematic taxonomy of concepts for relating things in the real world to a presentation (in the computer world). –Critique/justify the framework effectiveness in support for the above vision and goal/objective, considering FIU’s business environment (referring to the paradigm shift slide) and competitors Due date: Next Week Due date: Next Week