1. T1-2: Enterprise Systems Engineering Chin-Sheng Chen Florida International University

2. Introduction to ESE 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

3. Enterprise Systems Engineering (ESE) Definition 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. 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 in place for an existing company A manual system in place for an existing 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 A system is a replica of and/or replacement of the manual 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. 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 –Monitoring & Control –Report

5. 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)

6. 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.

7. MTS

8. Paradigm Shift Today’s business environment Today’s business environment –Innovation –Shortened product life cycle & shortened product development cycle concurrent engineering & operations concurrent engineering & operations –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

9. Concurrent operations Extend the concurrent engineering concept, and view the entire product development process as a production activity Extend the concurrent engineering concept, and view the entire product development process as a production activity Shorten the overall work lead time Shorten the overall work lead time –Incremental/parallel work planning –Re-active/dynamic work scheduling –On-line monitoring –Real-time control Shorten the material lead time Shorten the material lead time –Shortened acquisition lead time –Incremental material planning –Pro-active material acquisition SCM SCM

10. Mass customization Product & process development Product & process 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

11. 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

12. 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

13. Comparison of Operation Modes

14. MTO differentiation MTO Operation Modes (and Business Scope) MTO Operation Modes (and Business Scope) –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

15. ATO

16. BTO

18. DTO

19. MTO: Hierarchical and Incremental Planning

22. Aggregate 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

23. 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) 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

26. 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

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

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

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

30. 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

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