T1: Enterprise Systems T1: Enterprise Systems Engineering Engineering Chin-Sheng Chen Chin-Sheng Chen Florida International Florida International University University
Feb 01, 2016
T1: Enterprise Systems EngineeringT1: Enterprise Systems Engineering
Chin-Sheng ChenChin-Sheng Chen
Florida International UniversityFlorida International University
Introduction to ESEIntroduction to ESE
ESE definitionESE definition Business environmentBusiness environment Enterprise operation modesEnterprise operation modes Enterprise production processEnterprise production process Enterprise systemsEnterprise systems Enterprise operation system of futureEnterprise operation system of future
Enterprise Systems Enterprise Systems Engineering (ESE)Engineering (ESE)
DefinitionDefinition– A discipline that develops and applies systems A discipline that develops and applies systems
engineering tools and techniques to planning, engineering tools and techniques to planning, specification, modeling, analysis, design, specification, modeling, analysis, design, implementation, and implementation, and operationoperation of an enterprise of an enterprise system in its life cycle.system in its life cycle.
ESE Objective & GoalESE Objective & Goal
Study the nature, behavior, and function of an Study the nature, behavior, and function of an enterprise operation in a global environmententerprise operation in a global environment
Build a theoretical, scientific foundation to study Build a theoretical, scientific foundation to study the integrative and collaborative nature of enterprise the integrative and collaborative nature of enterprise behaviors.behaviors.
Develop engineering tools and methods for Develop engineering tools and methods for enterprise systems design, analysis and enterprise systems design, analysis and implementation.implementation.
Enterprise system layersEnterprise system layers Layers (subsystems)Layers (subsystems)
– Physical systemPhysical system In physical existence in a companyIn physical existence in a company
– Managerial systemManagerial system A manual system in place for an existing companyA manual system in place for an existing company It may choose not to manage some physical system elementsIt may choose not to manage some physical system elements Certain computer tools may be in use to assist the manual managerial Certain computer tools may be in use to assist the manual managerial
systemsystem– Computerized managerial systemComputerized managerial system
A system is a replica of and/or replacement of the manual systemA system is a replica of and/or replacement of the manual system It may be equipped with on-line application tools and decision support It may be equipped with on-line application tools and decision support
systems.systems. InterfacesInterfaces
– Between/within the physical, manual, and computerized systemsBetween/within the physical, manual, and computerized systems CommunicationCommunication
– Control Control – Data collection/entryData collection/entry– ReportReport
Major operation modesMajor operation modes
Make-to-stock (MTS)Make-to-stock (MTS)– Accept no back ordersAccept no back orders
ContinuousContinuous BatchBatch Just-in-timeJust-in-time
– Accept back-ordersAccept back-orders Make-to-order (MTO) for back orders onlyMake-to-order (MTO) for back orders only
– Assemble-to-order (ATO)Assemble-to-order (ATO)– Build-to-order (BTO)Build-to-order (BTO)– Engineer-to-order (ETO)Engineer-to-order (ETO)– Develop-to-order (DTO)Develop-to-order (DTO)
MTS BackgroundMTS Background
Traditional operation assumptionsTraditional operation assumptions– Repetitive demand for a productRepetitive demand for a product– Real orders come from distribution centersReal orders come from distribution centers– Product is optimally designed and thus a bill of materials Product is optimally designed and thus a bill of materials
(BOM) is available(BOM) is available– Process plan is optimally designed for volume production of a Process plan is optimally designed for volume production of a
fixed lot size.fixed lot size.– Production facility is set up for continuous or repetitive (batch) Production facility is set up for continuous or repetitive (batch)
production.production.– Labor are single skilled and readily trainedLabor are single skilled and readily trained– SQC is used to manage the quality and the throughput quantity SQC is used to manage the quality and the throughput quantity
of each production. of each production.
MTSMTS
Prepare for Quote
Estimate Lead time
Accept? Stop
Contract Management
Stop
Request for Quotation
AP
MPS
MRP
CRP
Resources Acquisition
Work Order Planning and Scheduling
Shop Floor Control
Execution
Sales Production
Inventory Available?
No
Fulfill Order
Inventory
YesProduct design
BOM
Engineering
Product assembly plan
Yes
No
(trial)
(real)
Part assembly plan
Paradigm ShiftParadigm Shift
Today’s business environmentToday’s business environment– InnovationInnovation– Shortened product life cycle & shortened product development Shortened product life cycle & shortened product development
cyclecycle concurrent engineeringconcurrent engineering
– Frequent changes Frequent changes & & agile operationsagile operations mass customizationmass customization
– Smaller lots and just-in-time production Smaller lots and just-in-time production lean manufacturing/thinkinglean manufacturing/thinking
– Core business and supply networkCore business and supply network– Internet and wireless integrationInternet and wireless integration– Global economy and corporate intelligenceGlobal economy and corporate intelligence
Concurrent engineeringConcurrent engineering
Shortened work lead timeShortened work lead time– Incremental/parallel work planningIncremental/parallel work planning
– Re-active/dynamic work schedulingRe-active/dynamic work scheduling
– On-line monitoringOn-line monitoring
– Real-time controlReal-time control
Shortened material lead timeShortened material lead time– Shortened acquisition lead timeShortened acquisition lead time
– Incremental material planningIncremental material planning
– Pro-active material acquisitionPro-active material acquisition SCMSCM
Mass customizationMass customization
Product developmentProduct development– Unique product design of known familyUnique product design of known family
– Unique production process with known operation typesUnique production process with known operation types
– No extra product and few spare parts madeNo extra product and few spare parts made
– Frequent engineering (product & process) changesFrequent engineering (product & process) changes
Project managementProject management– Tight and rigid delivery commitmentTight and rigid delivery commitment
– Hierarchical work structureHierarchical work structure
– Progressive work planning & executionProgressive work planning & execution
Lean Manufacturing/ConceptLean Manufacturing/Concept
Create value through its value stream by Create value through its value stream by eliminating waste eliminating waste
A waste is an activity that consumes resources A waste is an activity that consumes resources but creates no values. but creates no values.
The value stream may reach product’s entire The value stream may reach product’s entire supply and service chains.supply and service chains.
Much related to the ABC and the life cycle Much related to the ABC and the life cycle conceptconcept
Life cycle conceptLife cycle concept
Product life-cycle phases:Product life-cycle phases:1.1. Customer needCustomer need
2.2. Product specificationProduct specification
3.3. Product functional designProduct functional design
4.4. Production (process) designProduction (process) design
5.5. Component fabricationComponent fabrication
6.6. Product assembly Product assembly
7.7. Product deliveryProduct delivery
8.8. Product in operation (service)Product in operation (service)
9.9. Product disposalProduct disposal
MTO CategorizationMTO CategorizationP
rodu
ct S
peci
fica
tion
Con
cept
Dev
elop
men
t
Arc
hite
ctur
al D
esig
n
Det
ail D
esig
n
Pro
cess
Des
ign
Man
ufac
turi
ng P
lann
ing/
Sch
edul
ing
Man
ufac
turi
ng O
pera
tion
s
Ass
embl
y
Pro
duct
s
Engineer-to-order
Product Development Process
Build-to-order
Assemble-to-order
Pro
toty
pe
Com
pone
nts
Mat
eria
l Acq
uisi
tion
Tes
t
Cus
tom
er In
tent
Cus
tom
er N
eed
Prod
uct S
peci
ficat
ion
Prod
uct D
esig
n
Proc
ess D
esig
n
Com
pone
nt
Prod
uct
Del
iver
y
Dis
posa
l
NeedAnalysis
ProductSpecification
ProductDesign
ProcessDesign
ComponentFabrication
Con
cept
des
ign
Arc
h. (B
OM
) des
ign
Det
aile
d de
sign
Proc
ess(
tech
nolo
gy) a
naly
sis
Ass
embl
y pr
oces
s pla
nnin
g
Com
pone
nt p
roce
ss p
lann
ing
Mtl.
Req
uest
/Acq
uisi
tion
Fabr
icat
ion
Com
pone
nt re
ques
t/acq
uisi
tion
ProductAssembly Delivery Service
OperationModes
MTSATO
BTO
ETO
DTO
Managementconcepts
Engi
neer
ing
anal
ysis
Ass
embl
y
Lean/Agile ManufacturingMass Customization
Concurrent Engineering
Lean Thinking
Order Fulfillment Process
ATO
BTO
ETO
DTO
Cus
tom
er N
eed
Conc
ept
Arc
h. (B
OM
)
Det
aile
d
Proc
ess D
esig
n
Com
pone
nt
Disp
osal
Prod
uct D
eliv
ery
Prod
uct W
IP
Prod
uct
Prod
uct S
pec.
Need Analysis
Spec. Definition
Functional Design
Assembly Delivery Service
Prod
uct D
esig
n
ProcessDesign
Ass
embl
y Pr
oces
s Pla
n
Com
pone
nt P
roce
ss p
lan
Det
aile
d
Component Fabrication
Mtl.
Req
uest
Mtl.
Acq
uisit
ion
Mtl.
Mgt
.Co
mpo
nent
WIP
MTS
Cus
tom
er In
tent
Comparison of Operation ModesComparison of Operation Modes
Custo
mer
Nee
d
Conc
ept
Arch
. (BO
M)
Detai
led
Proc
ess D
esig
n
Com
pone
nt
Disp
osal
Prod
uct D
elive
ry
Prod
uct W
IP
Prod
uct
Prod
uct S
pec.
Need Analysis
Spec. Definition
Functional Design Assembly Delivery Service
Prod
uct D
esig
n
ProcessDesign
Asse
mbl
y Pr
oces
s Plan
Com
pone
nt P
roce
ss P
lan
Detai
led
Comp. Fabrication
Mtl.
Req
.
Mtl.
Acq
uisit
ion
Mtl.
Mgt
.Co
mpo
nent
WIP
Business Activity
Concurrent Engineering
Mass Customization
Back Order Process
Re-work Process
Spec. backorder
Product/Process backorder
Component backorder
Product backorder
Product backorder
Agile/Lean Mfg.
Re-engineering(Eng. Change) Re-assembly Return Recall
Operation Mode
MTS
ATO
BTO
ETO
DTO
Re-specify R-issue Mtl., Refabracation
Custo
mer
Inte
nt
MTO differentiationMTO differentiation
MTO Operation Modes (and Business Scope) MTO Operation Modes (and Business Scope) – ATO: ATO:
Only assembly effortOnly assembly effort Components availableComponents available Product and process availableProduct and process available
– BTO: BTO: ATO + component manufacturingATO + component manufacturing Product and process availableProduct and process available
– ETO: ETO: BTO + engineeringBTO + engineering Product specification availableProduct specification available
– DTO:DTO: ETO + product specificationETO + product specification Customer need availableCustomer need available
ATOATO
Prepare for Quote
Estimate Cost/Leadtime
Quotation/bidding
Accept? Stop
Contract Management
Stop
Request for Quotation
AP
MPS
MRP
CRP
Resources Acquisition
Work Order Planning and Scheduling
Shop Floor Control
Execution
Revision
Sales Production Engineering
No
Yes
Product assembly plan
Product design BOM
BTOBTO
Prepare for Quote
Estimate Cost/Leadtime
Quotation/bidding
Accept? Stop
Contract Management
Stop
Request for Quotation
AP
MPS
MRP
CRP
Resources Acquisition
Work Order Planning and Scheduling
Shop Floor Control
Execution
Revision
Product design BOM
Sales Production Engineering
Product assembly plan
Component process plan
Tooling BOMs
Tooling assembly plan
Tooling comp. process plan
No
Yes
Prepare for Bid
Request forQuotation
Accept?
Cost/Lead timeAnalysis
Quotation/Bidding
ContractManagement
Stop
Yes
No
Revision
MPS
MRP
CRP
Material ResourcesAcquisition
Work Planning andScheduling
Operation Control
Execution
Stop
SALES OPERATION PRODUCTION OPERATION
PRODUCT/PROCESS DESIGN
ENGINEERING OPERATION
QUALITY ENGINEERING
Order
Bid
MANUFACTURINGOPERATION
Customer Need
Product Spec /Engineering Analysis /
DFX
Concept
Architecture(BOM)
Detailed
ProductDesign
Technology
Assembly
Component
(Product)ProcessDesign
Concept
Architecture(BOM)
Detailed
ToolingDesign
Technology
Assembly
Component
ToolingProcessDesign
Quality Policy/Roadmap
Product QAGuideline
ProductDesign QC
Plan
(Product)Process QC
Plan
ToolingDesign QC
Plan
ToolingProcess QC
Plan
Aggregate Plan
DTODTO
Prepare for Quote
Estimate Cost/Leadtime
Quotation/bidding
Accept? Stop
Contract Management
Stop
Request for Quotation
CRP
Resources Acquisition
Work Order Planning and Scheduling
Shop Floor Control
Execution
Revision
(Trial)
(Real)
Customer Intent
Customer Need
Product Spec.
Sales Production Engineering
Yes
No
MTO: Hierarchical and Incremental PlanningMTO: Hierarchical and Incremental Planning
Deliverable
Task 1
Op 1
Task 2 Task 3
Step 1
Op 1 Op 2 Op 3
Op 2 Op 3
Step 2 Step 3
Step 1 Step 2 Step 3
Incremental Planning
HierarchicalPlanning
Level 1
Level 2
Level 3
Level 4
Task 1
Task 2
Task n
New Planned
Approved
Released
Completed
Plan
Approve
Release
New Planned
Approved
Released
Completed
Plan
Approve
Release
New Planned
Approved
Released
Completed
Plan
Approve
Release
Shop floorExecution
Task Level 1
Task Level 2
Task Level N
Aggregate Capacity PlanningAggregate Capacity Planning
January February March April
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
Aggregate Capacity PlanningAggregate Capacity Planning
January February March April
Design
Mfg
Competency Scope
Planned Capacity
Available Capacity
Capacity Plan in Small Time Bucket
w1 w2 w3 w4 w1 w2 w3 w4 w1 w2 w3 w4 w1 w2 w3 w4
op1
op2
op3
op1
op2
op3
op1
op2
op3
Assembly
Buckets are refined to smaller sizes by smaller resources and time units, as work is being decomposed into smaller units (deliverables, tasks and operations)
Detailed schedulingDetailed scheduling
Each resource Each resource
instance is instance is
associated with a associated with a
specific work unit, specific work unit,
abiding by the two abiding by the two
classical scheduling classical scheduling
principles. That is, principles. That is,
each machine can each machine can
process only one job process only one job
and each job can be and each job can be
on one machine at a on one machine at a
timetime
Operation controlOperation control
Project control (work orders)Project control (work orders)– Control of quality, lead time, and cost of work Control of quality, lead time, and cost of work
within a projectwithin a project Shop floor control (resources)Shop floor control (resources)
– Control of the use of resources for work Control of the use of resources for work ordersorders
PLMPLM
Project data managementProject data management– Sales dataSales data– Product dataProduct data– Manufacturing/test dataManufacturing/test data– Operation/service dataOperation/service data
Workflow managementWorkflow management– Work flow duringWork flow during– Work flow during operation/serviceWork flow during operation/service
Current PDM systemsCurrent PDM systems
EvolutionEvolution– CADCAD
– PDMPDM
– PLMPLM Commercial systemsCommercial systems
– Matrix-oneMatrix-one
– Windchill/ProEWindchill/ProE
– Iman/Metaphase/MFG Center/UGIman/Metaphase/MFG Center/UG
– Enovia/CatiaEnovia/Catia
Current ERP SystemsCurrent ERP Systems
EvolutionEvolution– MRP IMRP I
– MRP IIMRP II
– ERP IERP I
– ERP IIERP II SystemsSystems
– SAPSAP
– Oracle/Peoplesoft/JD EdwardsOracle/Peoplesoft/JD Edwards
– BaanBaan
Current Project Current Project Management SystemsManagement Systems Evolution Evolution
– Individual userIndividual user– Enterprise userEnterprise user
Commercial systemsCommercial systems– M/S projectM/S project– PrimeveraPrimevera
Current MES Systems Current MES Systems
EvolutionEvolution– Shop floor monitoring & controlShop floor monitoring & control– Manufacturing executionManufacturing execution
From production orderFrom production order To shippingTo shipping
Commercial systemsCommercial systems– Real-trackReal-track– ValorValor
Enterprise operations Enterprise operations system of futuresystem of future Integrative functions ofIntegrative functions of
– MRP/ERPMRP/ERP– MESMES– PDM/PLMPDM/PLM– Project managementProject management
Impact to the societyImpact to the society Automation (mechanization and computerization)Automation (mechanization and computerization)
– NC/CNC/CAM affects/replaces labor and skilled workersNC/CNC/CAM affects/replaces labor and skilled workers– CAD/PDM affects/replaces technicians and engineersCAD/PDM affects/replaces technicians and engineers– ERP affects/replaces middle-layer supervisors and managersERP affects/replaces middle-layer supervisors and managers– Supply chains (outsourcing) affect/replace non-core departmentsSupply chains (outsourcing) affect/replace non-core departments
Global sourcingGlobal sourcing– Affects/eliminates many domestic manufacturing industriesAffects/eliminates many domestic manufacturing industries– Started affecting some service industries as wellStarted affecting some service industries as well
OpportunityOpportunity– Certain manufacturing industriesCertain manufacturing industries
That require proximity to the market or have national security That require proximity to the market or have national security concerns.concerns.
– Most service industriesMost service industries– New product and technology development, market study (need New product and technology development, market study (need
analysis)analysis)– EntrepreneurshipEntrepreneurship