Engineering Management Systems Engineering Management MSE607B Chapter 7 Organization for System Engineering.

EngineeringManagement

Systems EngineeringManagement

MSE607BChapter 7

Organization for System Engineering

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Learning Objectives

Explain the basic philosophy of design evolution Explain the different types of organizational structures Discuss advantages and disadvantages of each structure

from a generic perspective Emphasize the system engineering organization, its

functions, organizational interfaces, and the staffing needed Explain the implementation of Integrated Product and

Process Development (IPPD) configuration Explain customer, producer, and supplier relationships Discuss human resources requirements

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Developing the Organizational Structure

Must start by determining the goals and objectives for the overall company involved• The functions and tasks that must be accomplished

Depending on program complexity/size may assume a pure functional model, a project or product line orientation, a matrix approach, or combination thereof

Structure may change in context as the system development evolves

The ultimate goal is to achieve the most effective utilization of human, material, and monetary resources

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Customer, Producer, and Supplier Relationships

A formal mechanism to ensure design will meet stated consumer need

Design evolves through iterations from initial definition to firm system configuration

Requirements verification process required from the beginning Early detection of potential problems allows to incorporate

necessary changes easily An ongoing design review and evaluation effort is required Overall review process through a combination of several

approaches: • Informal day-to-day review and evaluation as design decisions are

made and data developed. • Formal design reviews at designated stages in the evolution of

design Serve as a vehicle for communications Serve as the formal approval of design data

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Customer Organization and Functions

Range from one or small group of individuals to an industrial firm Customer may be ultimate user or procuring agency for a user Must recognize objectives from the beginning

• Organizational entity needs to be established System engineering may be accomplished within:

• The customer’s organizational structure• The industrial firm or the producer’s organizational structure

May be any combination of models with split responsibilities • Customer must clarify system objectives and program functions• Requirements for system engineering must be well defined

When delegated to the producer, customer must completely support

Need to prepare a good, comprehensive, clear Statement of Work

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Producer Organization and Functions

The producer will undertake the bulk of the system engineering activities

Need to have access to all information and data leading to the requirements specified in the RFP and IFB

The main objective is to ensure continuity in the transition from the activities accomplished by the customer to those to be performed by the contractor

This transition process is one of the most critical points in a program.

The specification and SOW must be complete The next step to address is the contractor’s organizational

structure. Structures may vary from the pure functional to the project,

the combined project-functional, the matrix, and so on

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Producer Organization - Traditional Functionally Oriented Structure

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Functional Organization Structure

The intent is to perform similar activities within one organizational component

Well suited for a single project operation, large of small. For example,

• All engineering work would be the responsibility of one executive

• All production or manufacturing work would be the responsibility of another executive, and so on

Depth of the individual elements of the organization will vary with type of project and level of emphasis required

There are advantages and disadvantages associated with the pure functional approach

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Advantages of A Functional Organization

Enables development of a better technical capability for the organization• Specialists grouped to share knowledge

The organization can respond more quickly to a specific requirement through the careful assignment of personnel• Larger number of personnel with required skills in given

area Budgeting and cost control are easier because of the

centralization of areas of expertise. • Easier to estimate, monitor and control costs

The channels of communication are well established• There is no question as to who is the “boss”

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Disadvantages of A Functional Organization

It is difficult to maintain an identity with a specific project• No single individual is responsible for the total project

Concepts and techniques tend to be functionally oriented with little regard for project requirements

There is little customer orientation or focal point. • Response to specific customer needs is slow

Because of group orientation, there is less personal motivation to excel • Innovation concerning generation of new ideas is

lacking

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Product-Line/Project Organization Structure

Company ABC

ProductLine“X”

ProductLine“Y”

ProductLine“Z”

• Program Management• Systems Engineering• Electrical Engineering• Mechanical Engineering• Reliability Engineering• Maintainability Engineering• human Factors• Components Engineering• Integrated Logistic Support (ILS)

• Program Management• Systems Engineering• Electrical Engineering• Mechanical Engineering• Reliability Engineering• Maintainability Engineering• human Factors• Components Engineering• Integrated Logistic Support (ILS)

• Program Management• Systems Engineering• Electrical Engineering• Mechanical Engineering• Reliability Engineering• Maintainability Engineering• human Factors• Components Engineering• Integrated Logistic Support (ILS)

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Product-line organization with Project Subunits

Director Director Director

Manager Manager Manager

Product Line “X”CommunicationsSystems Division

Product Line “Y”Transportation

Systems Division

Product Line “Z”Test and SupportSystems Division

President

Company ABC

Vice President

Engineering

Project “A” Project “B” Project “C”

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Advantages of Project/Product Line Organization

The lines of authority and responsibility for a given project are clearly defined.

There is a strong customer orientation, a company focal point is readily identified

Personnel assigned to the project generally exhibit a high degree of loyalty to the project

The required personnel expertise can be assigned and retained exclusively on the project

There is a greater visibility relative to all project activities.• Cost, schedule and performance can be easily

monitored

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Disadvantages of Project/Product Line Organization

The application of new technologies tends to suffer without strong functional groups

Usually duplication of effort, personnel, and use of facilities and equipment

From a managerial perspective, it is difficult to effectively utilize personnel in the transfer from one project to another

The continuity of an individual’s career, growth potential, and opportunities for promotion are often not as good

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Matrix Organization Structure

Company DEF

Project Management

Project “A” Program Manager

Project “B”

Project “C”

Project “D”

• Program Management• Planning and Scheduling• Configuration Management• Data Management• Supplier Management• Project Review and Control

SystemsEngineering

DesignEngineering

DesignAssurance(R/M/HF)

IntegratedLogisticsSupport

SoftwareEngineering

ProductionandTest

Fun

ctio

nal R

espo

nsib

ility

Project Responsibility

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Objectives of Matrix Organization

Managers and workers alike must be committed to the objectives if matrix management, as follows:• Good communication channels must be accomplished

to allow for a free and continuing flow of information • Both project and functional department managers

should participate in the initial establishment of companywide and program-oriented objectives

• A quick and effective method for conflict resolution must be established to be used in the event of disagreement.

For personnel assigned to a project, project and the functional department manager should agree on • Duration of assignment• The tasks to be accomplished• The basis on which the individuals will be evaluated

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Advantages of A Matrix Organization

Project manager can provide the necessary strong controls

Functional organizations exist primarily as support for projects• Strong technical capability developed and made available

Authority and responsibility for task accomplishment shared between project manager and functional manager

Key personnel can be assigned to work on a variety of problems• More effective utilization of technical personnel

• Program costs can be minimized

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Disadvantages of A Matrix Organization

A major disadvantage relates to the conflicts that arise on a continuing basis as a result of power struggle among project and functional managers

Each project organization operates independently • Possible duplication of efforts

May be more costly in terms of administrative requirements• Both projects and functional areas require similar

administrative controls The balance of power between the project and the functional

organizations must be clearly defined and closely monitored From perspective of worker - a split in the chain of command

• Individual “pulled” between project boss and functional boss

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Functional Organization Structure Showing IPPD/IPTs

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Integrated Product and Process Development (IPPD)

A management technique that simultaneously integrates all essential acquisition activities through use of multidiscipline teams to optimize the design, manufacturing, and support process

Promotes communications and integration of key functional areas as they apply to various phases of program activity • From conceptual through detail design and

development Directly inline with system engineering objectives

• To cause integration of the various features of design and the organizations involved in the design process

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Integrated Product/Process Teams (IPTs)

May be established to investigate a specific segment of design, a solution for some outstanding problem, design activities that have a great impact on a high-priority TPM, and so on

The objectives of IPTs are:• To create a team of qualified individuals that can effectively work

together to solve some problem in response to a given requirement

• To provide necessary emphasis in critical areas and to reap the benefits of a team approach in arriving at the best solutions

The objectives of the team must be clearly defined • Team must maintain a continuous “up-the-line” communication

Longevity of IPT depend on nature of problem and the effectiveness of the team

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System Engineering Organization

Function of system engineering must be oriented to the objective of bringing a system into being in an effective and efficient manner

Nature of the system engineering function require the existence of good communication channels

Successful fulfillment of system engineering objectives requires• specification of technical requirements for the system• Conductance of trade-off studies, • Selection of appropriate technologies, and so on

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Producer Organization Combined Project - Functional Structure

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Producer Organization – Work Flow

Company KLM

Administration Engineering Production Support

Administration Engineering Production Staff Activities

Company KLM

Company KLM

Company KLM

Company KLM

Company KLM

Company KLM

Company KLM

Requestfor

Support

CompletedTasks

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Major System Engineering Communication Links - Producer Organization

• Marketing and Sales• Finance and accounting• Purchasing• Human Resources• Contract Management

• Integrated Logistic Support• Logistic Support Analysis• Support Equipment• Spare/Repair Parts• Technical Publications• Training/Equipment• Transportation and Distribution• Customer Service

• Manufacturing Engineering• Production• Fabrication• Inspection and Test• Modifications• Quality Assurance

• System Requirements• System Specification• System Analysis• System Integration &Test• Design Review (s)

• Electrical Design• Mechanical Design• Materials Engineering• Structural Design• Components Engineering

• Reliability• Maintainability• Logistics Engineering• human Factors• Value Engineering

• Operating Software• Maintenance Software• Production and Test Software• Software Validation

• Design Standardization• Computer Applications• CAM/CALS Interface• Customer/Supplier Interface

Company HIJ

Business Engineering Support Operations

Project “X” Project “Y”(Program Manager)

Project “Z”

• Program Management• Scheduling/Coordination• Configuration Management• Data Management• Supplier Management

System Engineering Design Engineering Design Assurance Software EngineeringComputer Aided

DesignDocumentation

A

B C D

E

F

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Large-scale Supplier Organization

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Supplier Organization and Functions

“Supplier” refers to organizations that provide various materials and/or services to the producer

System engineering capability extended as identifiable function within the supplier’s organization. Supplier functions may include:• Conduct feasibility studies and define specific design criteria • Prepare a supplier engineering plan or equivalent• Accomplish synthesis, analysis, and trade-off studies • Accomplish coordination and integration of design activities• Prepare and implement test and evaluation plan• Participate in design reviews and critical design reviews• Review and evaluate proposed design changes • Initiate and maintain liaison with production activities• Initiate and maintain liaison with the producer

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Human Resource Requirements

In considering organizational elements in system engineering, it is necessary to address the human resources requirements

Certain common objectives that should be met from the employer/employee standpoint:

• Creating the organizational environment• Leadership characteristics• The needs of the individual• Staffing the organization• Personnel development and training

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Creating the Organizational Environment

The study of organizations should address Structure, Processes, and Culture.• Structure is the formal pattern of how an organization’s people and

jobs are grouped.• Processes are activities that give life to the organization chart• Culture defines appropriate behavior and bonds, motivates

individuals, and governs the way a company processes information, internal relation, and values.

Personnel selected for system engineering must be highly professional

The system engineering group must have “vision” and be creative

A teamwork approach must be initiated within the group A high degree of communication must prevail

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Leadership Characteristics

The organization is a group of individuals with varying abilities, different roles and expectations, diverse personal goals, and distinct behavioral patterns

The challenge for the manager is to integrate the various characteristics into a cohesive force

Recognize personal characteristics of each individual to better match with job requirements

Inspire each individual to excel in his or her job by creating an atmosphere of personal interest

Be sensitive to employee problems related to their work Evaluate employees on a personal basis Initiate rewards promptly when warranted Promotions and merit raises directed to best performers

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The Needs of the Individual

1. The physiological needs, such as thirst, hunger, sex, sleep, and activity

- the needs of the body

2. The safety and security needs- protection against danger, threat, and

deprivation

3. The need for love and esteem by others, or social needs

4. The need for self-esteem and self-respect, and the respect of others

5. The need for self-fulfillment or the achieving of one’s full potential

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Staffing the Organization

Requirements for staffing an organization initially stem from results of the system engineering planning activity

An entry-level system engineer should have the following skills:• Basic formal education at undergraduate and graduate levels in

some field of engineering. • High level of general technical competence in engineering fields• Relevant design experience in the appropriate areas of activity• Basic understanding of the design requirements • Understanding of the system engineering process and tools • Understanding of the relationships between functions

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Personnel Development and Training

Nearly every engineer wants to know how he or she is doing on a day-to-day basis and what the opportunities for growth are. The employee also needs to know when his or her work is unsatisfactory and improvements is desired.

Formal performance review is conducted on a regularly scheduled basis and the ongoing informal communications process takes place daily.

Opportunities for growth depends on • Climate provided within the organization and actions of

the manager that allow for individual development• The initiative on the part of the engineer to take

advantage of the opportunities provided It is essential that individual personal growth takes

place if that department it to function effectively

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Personnel Development and Training (Cont)

Manager should prepare a development plan for each employee to allow and promote personal development, providing a combination of the following:• Formal internal training designed to familiarize

the engineer with the policies and procedures• On-the-job training through selective project

assignments• Formal technical education and training

designed to upgrade the engineer • A technical exchange of expertise with others in

the field

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Summary

Explained the basic philosophy of design evolution Explained the different types of organizational structures Discussed advantages and disadvantages of each

structure from a generic perspective Emphasized the system engineering organization, its

functions, organizational interfaces, and the staffing needed

Explained the implementation of Integrated Product and Process Development (IPPD) configuration

Explained customer, producer, and supplier relationships Discussed human resources requirements

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Interactive Workshop

Depending on the complexity and size of a program, the structure of a company may assume:

a) A pure functional model

b) A project or product line orientation

c) A matrix approach

d) A combination of (a), (b), and (c)

e) Any of the above

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The ultimate goal of organizational structure is to achieve:

a) The most effective utilization of human, material, and monetary resources in accomplishing the functions that are required

b) The most effective organization to compete with other companies in accomplishing the functions that are required

c) To make sure that management positions have maximum authority and power

d) None of the above

Interactive Workshop

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One of the advantages of pure functional organizational model is:

a) Authority and responsibility for task accomplishment shared between project manager and functional manager

b) The organization can respond more quickly to a specific requirement through the careful assignment of personnel

c) Personnel assigned to the project generally exhibit a high degree of loyalty to the project

d) None of the above

Interactive Workshop

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IPTs are created for the purpose of:

a) To effectively work together to solve some problem in response to a given requirement

b) To provide necessary emphasis in critical areas and to reap benefits of a team approach in arriving at the best solutions

c) To create a team and demonstrate “teamwork” is practiced in the organization

d) Both (a) and (b) are correct

Interactive Workshop

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In considering organizational elements in system engineering, it is necessary to address:

a) The personalities of senior management

b) The system functional requirements

c) The human resources requirements

d) The functional baseline of the system

Interactive Workshop

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Homework Assignment

Chapter 7 – Textbook page 377 • Answer questions 1, 3, 4, 9, and 16.

Read Chapter 8 - Engineering Program Planning

• Pages 379-391

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Questions? Comments?