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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