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FFREEREE Co-operation in virtual Co-operation in virtual
organisation;organisation;The resultsThe results
C. HofProject co-ordinator
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FFREEREE
•Adepa•Cap Gemini B.V•Daimler-Benz Aerospace AG ULM•European Society for Concurrent Engineering•Seaview B.V. •Thomson-CSF Technology and Methods•University of Twente•Hollandse Signaalapparaten B.V. (Co-ordinator)
Esprit : 23286
Models, tools and systems to realise aFast Reactive Extended Enterpriseto meet the customers demand in industrial markets
A European project cooperation between:
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OverviewOverview
• FREE definition• FREE objectives• FREE products• FREE usebility
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FREE definitionFREE definition
• An alliance between partners that– have complementary knowledge & skills– to reach competitive edge in a business
• Key features of such alliance are:– shared leadership,– common purpose, mission & values,– common business & strategic goals– networked organisation based on
• workforce empowerment,• shared processes & policies
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Today’s Operational ProblemsToday’s Operational Problems
• Incompatible methods/techniques/procedures• Lack of process ownership and process
management• Lack of process measurements• Lack of clear responsibilities• Accomplishing effective and efficient
collaboration processes• Configuration and data management problems• Lack of knowledge transfer
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Motivations for the FREE Motivations for the FREE projectproject
• current trends in industry for new business practices to increase the enterprise reactivity on customer expectations to global market changes of people, methods and tools team building and co-operation
(both inside and outside the enterprise) culture and practices of reactivity
• improved quality of enterprise operation Capability Maturity frameworks
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Project scopeProject scope• to address the 4 major demands of a FREE organisation :
collaboration management (virtual enterprise integration)
people management (workforce co-operation & flexibility)
process management (interoperable shared processes)
resources management (including technology & knowledge)
focusing on collaboration and communication• to provide practical guidance's for improving
the quality of operation of FREE organisations building on current capability maturity frameworks integrating the different aspects of a virtual
enterprise
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FREE domain (1)
• FREE domain is: collaborative virtual enterprise(developing complex, one-of-the-kind products)
• Topics of concern are :– Environment
strategy and goals, partnership, customer relations, ...
– Organisational arrangementsfacilitating communication &
collaboration– Shared processes between partners
management, adaptation, support– People and other resources
knowledge, technologies, etc...
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FREE domain (2)
excluded of the FREE project domain “Primary” (Engineering) processes
that are (or should be handled by) specific quality frameworks such as:
System Engineering, Software engineering, etc...
People management process aspects
when not related to collaboration and flexibility Legal arrangements
between organisations building a FREE
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FREE results Overall FREE results Overall architecturearchitecture
FREEImprovement
Manual
FREEImprovement
Manual
FREE-PMMManual
FREE-CAFReference
Manual Quick Scan
FREE-PMMlibrary
FREE-CAFReference
Model Navigationtool
FREEModel
Ready for use documents
or as easy
access CD-ROM
FREEImprovement
Manual
FREE-PMMManual
FREE-CAFReference
Manual
FREE-SME
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MARKET SEGMENTATIONMARKET SEGMENTATION
SME’s Consortium
VerticalIntegration
Business Brokeror Integrator
HorizontalIntegration
Main-subcontractor
Large Enterprise
BusinessNetwork
SME’sCommunity
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Measurement consequencesMeasurement consequences
Organisation depends on
partners expertise
HORIZONTAL organisation
Organisation depends on the
product architecture
VERTICAL organisation
OPPORTUNITY (single project) Limited ability
NETWORK (repetitive projects) Enhanced ability
Maturity/PIevolution
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Building infrastructureBuilding infrastructure
Immaturity of technologyImmaturity of technology
IntercompanyIntercompany trainingtraining
Creating collaborative Creating collaborative mentalitymentality
Opening company boundariesOpening company boundaries
CostCost
Rewarding employees for Rewarding employees for collaborationcollaboration
00 1010 2020 3030 4040 5050 6060 7070 8080
SecuritySecurity
Collaboration implementation challenges(FREE 1997)
Industrial expectations of FREEIndustrial expectations of FREE
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Structuralalignment
Collaboration
CommunicationCAF
PMM
Process operation
Influences
Checks Checks Checks
Influences
outcomeModel
represents
FREE ContextFREE Context
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Static - Dynamic relationStatic - Dynamic relation
Communication process Virtual enterprise
process operation
Formal communication between partners
Informal communicationbetween partners
Degree of integration between partners
Degree of overlapof tasks between partners
Product developmentsuccess (costs,quality and time)
Positive relation
FREE-CAFFREE-CAF
FREEstructure
FREE-PMMFREE-PMMFREE-PMMFREE-PMM
Structural alignment
Actual alignment
Positive relation
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Improvement scenarioImprovement scenarioImplementation & Evaluation
business case &project plan
analysis phaseorientation phase
businessobjectives
critical success factors
improvementactivities
projecttriggers
businessissues
organisational model / quickscan
capability assessment framework
performance measurement method
preferred project management method
enterprisefunctions
improve-mentscenarios
project plan
evaluation
key process areas
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FREE-CAF focusFREE-CAF focusEnvironment
Strategic level
Adaptive levelOperational level
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Dataconsolidation
Rating Findings
Reporting
Follow up
Verifying
CMMCMMProcessProcess
Sponsorship
Planning Preparation
Data collection
Scope definition
Commitment to perform
Ability to perform
Activities performed
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• Allianceenforcement
• Leadership• Business planning• Policy & strategy• Marketing• Customer
satisfaction
Structuralarrangements
• Communicationstructure
• Team structure• ProcedureCultural
arrangements• Participatory
culture• Policies
Managementprocesses
•Decision Process•Conflict resolutionprocess
•etc.Engineeringmanagement
•Configuration & data management
•Peer reviews•etcCommunication management
Process management
People management
• Developing capabilities
• Motivating & managingperformance
• Shaping the workforce
Technology management
Knowledge management
Infrastructure management
FREE Key Process AreasFREE Key Process AreasEnterpriseintegration
Organizationalarrangement
SharedProcesses Resources
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Assessment goalsAssessment goals
• 1
• 2
FREE
Assessment: - FREE - Partners
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Improvement scenarioImprovement scenarioImplementation & Evaluation
business case &project plan
analysis phaseorientation phase
businessobjectives
critical success factors
improvementactivities
projecttriggers
businessissues
organisational model / quickscan
capability assessment framework
performance measurement method
preferred project management method
enterprisefunctions
improve-mentscenarios
project plan
evaluation
key process areas
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Type of measurementType of measurement
?
Capability focus
Levels of maturity
Business focus
VisionaryManagement
ProgramInitiation Mgmt
ProgramOperation Mgmt
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Contingency factorsContingency factors
FREE-PMM
STRATEGY CONTROLLINGPHILOSPHY
EXTERNALREPORTS
MANAGEMENTSTYLE
BRANCH DEVELOPMENTS
COMPANY PROCESSESSTRUCTURE
CULTURE
DEGREE OFAUTOMATION
SIZE OFTHE FREE
SIZE OFTHE PARTNERS
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PM MethodPM MethodContingency
factors
T,Q,C goals project planning
process overlapintegration
degree
(in)formalcommunication
toolsActual and
activity alignment
PIreference values
PI ofcommunication
tools
Communicationprocess
measurement
Transformationprocess
measurement
Feedbackloop
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Collaboration measuresCollaboration measures
• .. as a capability– training– education
• .. as an organisational goal– procedure improvement– quality measures– ICT facilities
• Measurements:– meeting structure– information
distribution– schedule acceptance
– frequency– cost control– risk management– PDM usage
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ChallengesChallenges
• I takes effort:– A will for changes on
partners behaviour– The need for
professional staff to support changes
– The budget for changes
• PIs helps!– Getting engineers “on
board”– Agreement on shared
mission and goals– Achieve alignment
between tasks– Agreement on
performance levels(as reference level,
yardstick)
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Expected FREE insights Expected FREE insights (partner point of view)(partner point of view)
• Company strategy and goals inline with:– Peoples skills, culture– FREE organisation
• Full management support• Insight in FREE organisation• Control of the FREE key practices• IT facilities that support the FREE goals• Security facilities that supports
collaboration
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Conclusion: An integrated suiteConclusion: An integrated suite
FREE Improvement ManualFREE Improvement ManualFREE Improvement ManualFREE Improvement Manual
FREEFREEPerformancePerformanceMeasurementMeasurement
FREE-CAFFREE-CAFAssessmentAssessmentMethodologyMethodologyDynamic
behaviourStatic
organisation
FREE-CAFModel
Navigationtool
OrganisationalmodelCSFCSF PIs
triggers
ContinuousContinuousimprovementimprovement
ProcessProcess
ContinuousContinuousimprovementimprovement
ProcessProcess
BusinessBusinessissuesissues
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On-going activities !On-going activities !• Awareness & dissemination of project
results through CE-NET, ICC• workgroup MI-FREE
Purpose: industrial validation through pilots achieving recognition from the international
community: SEI, EFQM, Agile Forum, ... maintenance & improvements of the
FREE project results
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ContactContact• Contact for more detailed
information or to get the FREE reports or CD-ROM
• Look at: www.kcc.nl/free and down-load the navigator.
• Kees (C) Hof ()31 74 248 3288• [email protected]
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