Topic 1: Introduction to Enterprise Systems Engineering

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Topic 1 Introduction to Enterprise Systems
Engineering

• Chin-Sheng Chen
• Florida International University

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Outline

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

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Course Objective Goal

• 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.
• Develop frameworks and components 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 put in place to run a company
• It may choose not to manage some physical system
  elements
• 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 may be equipped with on-line application tools
  and decision support systems.
• Interfaces
• Between/within the physical, manual, and
  computerized systems
• Communication
• Data collection/entry
• Report
• Control

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Major 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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Expanded 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 differentiation

• Work contents
• ATO
• Only assembly effort
• Components available
• Product and process available
• 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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Capacity Planning
Resources are grouped in buckets, by production
phase and timeline
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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
• 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

• 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,
• 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
• 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 FIUs business environment (referring
  to the paradigm shift slide) and competitors
• Due date Next Week