EIN 6133 Enterprise Systems Engineering

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EIN 6133Enterprise Systems Engineering

• Fall 2007
• Chin-Sheng Chen
• Florida International University

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1. Introduction to ESE

• Course objective and goal
• ESE definition
• Enterprise system layers
• Enterprise operation modes
• MTS vs. MTO
• MTO classifications
• MTO operation practice
• Hierarchical and incremental planning and
  scheduling
• Enterprise operations system of future

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Course Objective Goal

• Classify various enterprise operation modes
• Understand enterprise systems research issues
• Study the nature, behavior, and function of an
  enterprise system
• Build a theoretical and scientific foundation for
  study of (the integrative and collaborative
  nature of) enterprise behavior in the global
  economy.
• Develop a framework and methodology for building
  an enterprise system

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Enterprise Systems Engineering (ESE)

• 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.

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Enterprise system layers

• Layers (subsystems)
• Physical system
• In physical existence in a company
• Managerial system
• A manual system in place for an existing company
• It may choose not to manage some physical system
  elements
• Certain computer tools may be used to assist the
  manual managerial system
• Computerized managerial 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.
• Interfaces
• Between/within the physical, manual, and
  computerized systems
• Communication
• Control
• Data collection/entry
• Report

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Enterprise operation modes

• Make-to-stock (MTS)
• Accept no back orders
• Continuous
• Batch
• Just-in-time
• Accept back-orders
• Make-to-order (MTO) for back orders only
• Assemble-to-order (ATO)
• Build-to-order (BTO)
• Engineer-to-order (ETO)
• Develop-to-order (DTO)

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MTS Background

• 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.

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MTS
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Paradigm Shift

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

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Concurrent engineering Concurrent operations

• Shortened work lead time
• Incremental/parallel work planning
• Re-active/dynamic work scheduling
• On-line monitoring
• Real-time control
• Shortened material lead time
• Shortened acquisition lead time
• Incremental material planning
• Pro-active material acquisition
• SCM

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Mass customization

• 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
• Tight and rigid delivery commitment
• Hierarchical work structure
• Progressive work planning execution

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Lean Manufacturing/Concept

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

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Life cycle concept

• Product life-cycle phases
• Customer need
• Product specification
• Product functional design
• Production (process) design
• Component fabrication
• Product assembly
• Product delivery
• Product in operation (service)
• Product disposal

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MTO Categorization
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Order Fulfillment Process
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Comparison of Operation Modes
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MTO Classification

• In terms of timing and work contents
• ATO
• Only assembly effort
• Product and process available, components made
• BTO
• ATO component manufacturing
• Product and process available
• ETO
• BTO engineering
• Product specification available
• DTO
• ETO product specification
• Customer need available

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ATO
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BTO
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DTO
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Hierarchical and Incremental Planning
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Aggregate Capacity Planning
Resources are grouped in buckets, by production
phase and timeline
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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)
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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
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Operation Control

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

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PLM

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

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Current PDM systems

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

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Current ERP Systems

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

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Current Project Management Systems

• Evolution
• Individual user
• Enterprise user
• Commercial systems
• M/S project
• Primevera

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Current MES Systems

• Evolution
• Shop floor monitoring control
• Manufacturing execution
• From production order
• To shipping
• Commercial systems
• Real-track
• Valor

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Enterprise operations system of future

• Integrative functions of
• MRP/ERP
• MES
• PDM/PLM
• Project management

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Impact to the society

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

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T1 Homework 1

• Depict a diagram that integrates and support
  various operation modes as discussed in class.
• Find a company/industry which practices an MTO
  operation and identify its specific operation
  type. (attached your reference)
• Due date next class