Attributed Copies Permitted © 2004 RKDove, Paradigm Shift International, Agile System Principles and Practice ---- An Overview With a

Attributed Copies Permitted© 2004 RKDove, Paradigm Shift International, www.parshift.com

Agile System Principles and Practice----

An Overview With a Focus onIT, Information Security Systems, and Business Systems

INCOSE Chapter Meeting

Albuquerque, NM

July 21, 2004

Rick Dove

[email protected]

www.parshift.com

505-586-1536

mailto:[email protected]

http://www.parshift.com/


Rick Dove

Photo: Brian Zick

Interim Exec/Change Mgmnt:- CIO at Silterra, 1999-2002- President at ProMetal, 2002-2003

Carnegie Mellon: BSEE, UC Berkeley: unfinished PhD in Computer Science

30+ years of start-ups and turnarounds Co-founder of Agile Enterprise concept

in '91 at Lehigh Univ. Author: "Response Ability: The

Language, Structure, and Culture of Agile Enterprise", Wiley, 2001.

New Book: "Value Propositioning: Perception and Misperception in Decision Making", Dec 2004

Lives on Lama Mountain, Taos, New Mexico, at 8200 feet ......Land of Enchantment.


This presentation will overview design principles of agile systems that arose from

industry-led collaborative research during the nineties; and features a method for developing system dynamic requirements, a method for gauging the maturity of agile systems knowledge, and a method for developing insightful knowledge of agile systems.

The presentation will highlight examples of agile mechanical systems, manufacturing processes, IT systems, and

implementation processes.

A new initiative for developing agile information security knowledge and changing the fundamental nature of security strategy will be previewed.

A brief introduction to the true nature of decision making and how it reveals the talents required of project champions advancing value

propositions will be previewed.


How-To Details

Available at Amazon.com

For additional writings….www.parshift.com


Uncertainty

Ability to Respond

Effectively

Decreasing technology cycles Evolving business models Changing customer

expectations Changing market profiles

Fundamental Problem


Language

Change Comes in 2 Flavors...

Proactive changes are

generally triggered internally

by the application of new knowledge to generate new value.

Proactive change proficiency: wellspring of leadership and innovative activity.

Reactive changes are

generally triggered by events which demand a response:

problems that must be attended to or fixed,

opportunities that must be addressed.

Reactive change proficiency: foundation of viability and opportunistic activity.

Attributed Copies Permitted © 2002 Rick Dove, www.parshift.com, 412-400-4243

Correction

Variation

Reconfiguration

Expansion(and contraction of capacity)

Migration

Improvement

Modification(Add/Subtract Capability)

Creation(and Elimination)

Pro

acti

veR

eact

ive

Change Domain

...and 8 Domains...

Incremental improvement.

Make or eliminate something.

Foreseen, eventual, and fundamental change.

Addition or subtraction of unique capability.

Rectify a dysfunction.

Real-time operating change within mission.

Increase or decrease existing capacity.

Reorganize resource or process relationships.

Definition


...and 4 Metrics

On-Time, On-Budget, On-Spec

Predictability

100%

0%

Elapsed Time

TotalCost

$

$

$

$

$

$

Activity Based Change Costing

Time Cost

ScopeQuality

OK Stretch

OK Stretch

Sufficient Economic Range?

La

titu

de

GoodRange

MissionBoundary

Bad

Time Cost

Quality Scope



Structure

System

A group of components

sharing a common interaction framework

and serving a common purpose.

Framework

A set of standardsconstraining and enabling the interactions

of compatible system components.

Component

A separable system sub-unit

with a self-contained capability/purpose/identity,

and capable of interaction with other components.

Company of Divisions

Team of PeopleCell of Workstations

Practice of Procedures

Basic Definitions

Stereo System of Components

Chain of Suppliers


Note: 1 Dee Hock coined the word chaord for organisms, organizations, and systems which harmoniously exhibit characteristics of both order and chaos. The Birth of the Chaordic Century: Out of Control and Into Order, Chaordic Alliance, 1997, www.,chaordic.org.

Ordered Chaordic1 ChaoticLegoLego

LegoLegoGlue

Model Lego Erector Set

Frameworks: Three Types of Construction Toy Systems


Peer-Peer InteractionComponents communicate directly on a peer-to-peer relationship; and parallel rather than sequential relationships are favored.

Deferred CommitmentComponent relationships are transient when possible; decisions and fixed bindings are postponed until immediately necessary; and relationships are scheduled and bound in real-time.

Self-Contained Units (Components)Components are distinct, separable, loosely-coupled, self-sufficient units cooperating toward a shared common purpose.

Plug CompatibilityComponents share defined interaction and interface standards; and are easily inserted or removed.

Facilitated Reuse Components are reusable/replicable; and responsibilities for ready re-use/replication and for management, maintenance, and upgrade of component inventory is specifically designated.

Distributed Control and InformationComponents are directed by objective rather than method; decisions are made at point of maximum knowledge; information is associated locally, accessible globally, and freely disseminated.

Self-OrganizationComponent relationships are self-determined; and component interaction is self-adjusting or negotiated.

Evolving Standards (Framework) - Frameworks standardize inter-component communication and interaction; define component compatibility; and are monitored/updated to accommodate old, current, and new components.

Redundancy and DiversityDuplicate components provide capacity right-sizing options and fail-soft tolerance; diversity among similar components employing different methods is exploited.

Elastic CapacityComponent populations in response able systems may be increased and decreased widely within the existing framework.

Sca

lab

leR

eus

able

Reconfigurable

Response Able System Principles (RRS Principles)



SEMICONDUCTOR “CLUSTER” MACHINEArchitecture: Reusable, Reconfigurable, Scalable

Reusable Plumbing and Utility Module

Reusable, ReconfigurableProduction Process Modules

Scalable-System Material Interface Module

Reconfigurable Material Transfer Module

User Reconfigurable Control Module

Stylized Depiction of Precision 5000 Family, Applied Materials, Inc.


SCALABLE MACHINE CLUSTERS

SEMI, 10/16/89Document #1796

“Cluster Tool Module Interface and Wafer Transport Standard”

Controlled Environment Inter-Cluster Transport Bay

Cassette Module

Process Module

Docking Module

Transfer Module

Key Proactive Issues

Creation

• Create a new broad product family approximately every three years [tcs]

Improvement

• Manufacturing cost [s]• Machine calibration time [s]• Customer yield curve [s]

Migration

• Develop expertise in a new generation of science/ technology approximately every three years [ts]

Modification

• Include new process capabilities in a machine when it becomes available [s]

System Examples

Systems Integrity Management

Framework: Product managerComponents: EngineeringInventory: Product managerConfiguration: Installation crew

A A

A

D E

BD

A

BA

D C

BA EAA BB E

D C

Dedicated ParallelProcessing Step

Variable Steps UnderConstant Vacuum

ControlPanels

TransferRobots

ProcessChambers

UtilityBases

DockingModules

Material Interfaces

Components Key Reactive Issues

Correction

• Time to return malfunctioning equipment to service, and effect that equipment outage has on total throughput [t]

Variation

• Equipment configurations and process options [cs]

Expansion

• Selectively expand/contract process-step capacity to meet (relative) long term product mix changes [ts]

Reconfiguration

• Optional assembly procedures must meet local content needs of international contracts [qs]

Product System - Response Ability Model: Cluster Machine (part 1 of 2)(Metric focus legend: t = time of change, c = cost of change, q = quality of change, s = scope of change)


Flat InteractionScheduler in one base unit may access process history data for a process module on another base - perhaps to correct for a wafer’s prior process steps.

Deferred Commitment - Process modules custom configured when installed. New process modules added when new capability required. User control modules are custom configurable for proprietary processing.

Self-Contained Units (Components)Material interfaces, transfer robots, process modules,

utility bases, docking modules, and user controls are independent units.

Plug CompatibilityCommon human, mechanical, electrical, gas, vacuum, hydraulic, and control system interfaces.

Facilitated Reuse - Processing modules may be mixed or matched within a cluster. Machine manufacturer extends/replicates process module family. Customer manages reuse of all modules.

Distributed Control and InformationProcess history and tight-loop control located in process module, traveling with it when redeployed. Cluster controller manages macro-process and material transfer.

Self-OrganizationWafer path within cluster determined in real-time according to the availability of appropriate process modules.

Evolving Standards (Framework)Standardization focused on individual module interconnect only: mechanical coupling, communication protocols, and utility connections.

Redundancy and DiversityMachine utility bases are all identical, duplicate processing chambers can be mounted on same base or different bases.

Elastic Capacity - 1-4 process modules per cluster. Docking modules can interconnect clusters into super-clusters. Transport bay can interconnect clusters and super-clusters without limit.

We use this diagrammatic format, which we call a response ability model, to capture and communicate the interesting characteristics of highly adaptable systems. More is said about the use of response ability models as knowledge transfer mechanisms in Chapter 10. Comments made under the ten RRS principles above are representative examples of what is possible as a result of the actual Applied Materials Cluster Machine system design.

Sca

lab

leR

eus

able

Reconfigurable

Product System - Response Ability Model: Cluster Machine (part 2 of 2)



AGILE ABS CELLS IN RECONFIGURABLE FRAMEWORK

A4

A2

A6

D2

D4

D6

A3

A1

A5

D1

D3

D5

B4

B2

B6

E2

E4

E6

B3

B1

B5

E1

E3

E5

C4

C2

C6

F2

F4

F6

C3

C1

C5

F1

F3

F5

WSS

WSS WSS WSS WSS WSS WSS

WSSWSSWSSWSSWSS


Creation

• Design/install new-part production capability frequently and quickly [tcq]

Improvement

• Customers are demanding a reduction in short run costs [t]

Migration

• Moving from transfer line technology to next generation flexible machines brings different concepts [cs]

Modification

• Higher product change frequency requires production process modification rather than replacement [tcs]

System Examples

Systems Integrity Management

Framework: General managerComponents: Operations managerInventory: Operations managerConfiguration: Customer account engineer

Components

#

#

#

#

###

#

PalletChangers Work Setup Stations

Loader/Unloaders

GuidedVehicles

Rail Sections

Work Setters

FlexibleMachines

3 Station Cell6-8 Station Seasonal Cell

Key Reactive Issues

Correction

• Cost of lost production due to equipment malfunction and repair time [tc]

Variation

• Prototype runs are more frequent, and require more varied machining options [tcs]

Expansion

• Expansion and contraction of production capacity must accommodate unforecastable demand [tcs]

Reconfiguration

• Salvage and reuse old production stages in new production configurations [cs]

Process System Response Ability Model: Machining Cell (Part 1 of 2)(Metric focus legend: t = time of change, c = cost of change, q = quality of change, s = scope of change)


Flat InteractionComplete autonomous part machining, direct machine-repository program download negotiation.

Deferred CommitmentMachines and material scheduled in real-time, downloaded part programs serve individual work requirements.

Self-Contained Units (Components)Flexible machines, guided vehicles, rail sections, work-setting stations, loader/unloaders, pallet changers

Plug CompatibilityCommon human, mechanical, electrical, and coolant system interfaces. Common inter-module mechanical interfaces.

Facilitated Reuse - Machines do not require pits or special foundations, and are easy to move. Account mgrs with P&L responsibility add/subtract resources as needed. Ops manager maintains resource pool.

Distributed Control and InformationPart programs downloaded to machines, machine history kept in machine controller and accompanies machine as it changes location, machines ask for work when ready.

Self-OrganizationCell control software dynamically changes work routing for status changes and for new, removed, or down machines on the fly.

Evolving Standards (Framework) – General manager responsible for component commonality, and interconnect standards for mechanical coupling, communication protocols, and utility connections.

Unit Redundancy and DiversityCells have multiples of each component, all cells made from same types of components, machines have full work functionality.

Elastic Capacity - Cell can accommodate any number of machines limited only by physical space for rail extension. A part can be made in multiple cells. One cell can make multiple parts.

The representative reactive/proactive change issues are those perceived by the process owner/user making an initial transition from a fixed transfer-line configuration to a flexible cellular configuration. In time, a different set of issues emerge once the cellular configuration is the base perspective and the user expectations change. The examples of RRS system principles do not necessarily reflect actual usage of the Kelsey Hayes machining cells, but rather what is possible with the cellular configuration design.

Sca

lab

leR

eus

able

Reconfigurable

Process System Response Ability Model: Machining Cell (Part 2 of 2)


Response Ability Model: JIT Assembly Systems(Metric focus legend: t = time of change, c = cost of change, q = quality of change, s = scope of change)


Creation

• Designing short-run assembly lines for new parts that come with long-run tooling [t]

Improvement

• Productivity of limited space while increasing part variety [s]

Migration

• Production of non-GM parts with non-GM tooling [qs]

Modification

• Absorb employees from closed/downsized GM plants with different union work rules into cross-trained Production Team Member positions [ts]

Key Reactive Issues

Correction

• Union refusals to accommodate necessary work rule changes [cs]

Variation

• High part production variety [s]• Time available for new line

design [t]• New parts to accommodate

with the JIT system [s]

Expansion

• Absorb growing part variety [s]• Absorb growing inventory of

tooling [s]

Reconfiguration

• Short-run assembly line construction/tear-down [t]

Systems Integrity ManagementFramework: Configuration teamComponents: Component teamInventory: Component teamConfiguration: Production teams

Weld Tips

Controllers

Production TeamMembers (PTMs)

Hemmers

Roller Tables

StandingPlatforms

MasticTables

Racks

Components

System Examples

* * * * * *Ctrl Programs

* *

Assem Areas• • •

P41 Deck Lid System

• Area BA47 FenderSystem

• Area A



Culture

Stage 0 - Accidental - Characterized by: The lack of any change-process recognition, yet change manages to occur. Unpredictable completion and costs Surprising results and personnel reactions. Examples: Downsizing, fad-of-the-day, grueling overtime, fire-fighting, expediting.

Stage 1 - Repeatable - Characterized by: Anecdotal “lessons learned” from past change activities. The time it takes to make a change is under control. Specific individuals/teams recognized for repeatable success.

Stage 2 - Defined - Characterized by: The emergence of formal change processes with documented procedures. The base of practitioners is broadened as process becomes appreciated. Metrics for the change process are identified, cost of change is under control. Typically procedures are rigid and based on studied experience and analysis.

Stage 3 - Managed - Characterized by: The appointment of change managers with established responsibilities. An evolving knowledge base of change process fundamentals and rules begins to emerge. Rigid procedures are loosened, and predictable change processes are the norm. Appreciation for and participation in the corporate change process is widespread.

Stage 4 - Mastered - Characterized by: A principle-based, deep appreciation of adaptability. An understanding that process alone is not sufficient. Conscious engineering of business practice structures and organizational infrastructures. Corporate change loses its event status and takes on a constant fluid motion.

Change Proficiency Maturity Stages


Supplier Relationships Knowledge Acquisition

Proactive (Leadership)

Assessment andCompetitive Evaluation

0 1 2 3 4

4

3

2

1

0

Opportunistic Agile

InnovativeFragile

A

CB

Opportunistic Agile

InnovativeFragile

A

C

B

Product Innovation

Opportunistic Agile

InnovativeFragile

A

C

B

Comparing Companies A, B, C.

Change Proficiency Maturity Model

Metric Working Competitive Development Stages Focus Knowledge Proactive Reactive

0 Accidental Pass/Fail Examples Lucky None

1 Repeatable Time Concepts Creation Correction

2 Defined Cost Metrics Improvement Variation

3 Managed Quality Rules Migration Expansion

4 Mastered Scope Principles Modification Reconfig'tion

Metric Working Competitive Development Stages Focus Knowledge Proactive Reactive

0 Accidental Pass/Fail Examples Lucky None

1 Repeatable Time Concepts Creation Correction

2 Defined Cost Metrics Improvement Variation

3 Managed Quality Rules Migration Expansion

4 Mastered Scope Principles Modification Reconfig'tion

Opportunist

ic

Agile

Innovativ

e

Fragile

Rea

ctiv

e (V

iab

ilit

y)


Profiling EnterpriseChange Proficiency Maturity

1

21

22

2324 2

3

7

6

5

4

15

16

20

19

18

17

14 13

10

1112

8

9

Critical Business Practice4.0 1 Strategic Plan Vision4.0 2 Strategic Plan Dissemination4.0 3 Strategic Plan Buy-In3.0 4 Capital Investment Justification3.0 5 Infrastructure Investment Justification3.5 6 Business Eng. Investment Justification2.5 7 Business Unit Relationships4.0 8 Employee Relationships0.0 9 Partner Relationships1.0 10 Supplier Relationships3.0 11 Customer Relationships0.5 12 Information System Unit Relationships2.0 13 Production Unit Relationships4.0 14 Product Innovation Management4.0 15 Process Innovation Management4.0 16 Practice/Procedure Innovation Mgmnt4.0 17 Vision/Strategy Innovation Mgmnt4.0 18 Knowledge-Portfolio Strategy3.0 19 Knowledge Generation2.0 20 Knowledge Capture4.0 21 Knowledge Mobilization3.0 22 Leading Indicator Metrics1.5 23 Operating Metrics3.0 24 Health/Investment Value Metrics

Maturity Working Metric Competitive Development

Stage Knowledge Focus Proactive Reactive

0 Accidental Examples Pass/Fail None None

1 Repeatable Concepts Time Creation Correction

2 Defined Metrics Cost Improvement Variation

3 Managed Responsibilities Quality Migration Expansion

4 Mastered Principles Scope Modification ReconfigurationAttributed Copies Permitted© 2004 RKDove, Paradigm Shift International, www.parshift.com

A newly built

custom assembly

line for each and

every small-batch

run, every time, just

in time.

Assembly Lines – Built Just In TimeBy Rick Dove, Paradigm Shift International, e-mail: [email protected], 505-586-1536, Senior Fellow, Agility Forum

Metaphor Story

Look through Fred Mauck's eyes for a moment. You work in a GM stamping plant outside of Pittsburgh that specializes in after-model-year body parts. Your principal customer is GM's Service Parts Organization. They might order '73 Chevelle hoods quantity 50, '84 Chevy Impala right fenders quantity 100, or '89 Cutlass Supreme right front doors quantity 300. Your plant stamps the sheet metal and then assembles a deliverable product. Small lots, high variety, hard-to-make-a-buck stuff.

Every new part that the plant takes on came from a production process at an OEM plant that occupied some thousands of square feet on the average; and the part was made with specialized equipment optimized for high volume runs and custom built for that part geometry. To stamp a new deck lid (trunk door) part you bring in a new die set - maybe six or seven dies, each the size of a full grown automobile, but weighing considerably more. And you bring in assembly equipment from an OEM line that

might consist of a hemmer to fold the edges of the stamped metal, perhaps a pre- hemmer for a two- stage process, dedicated welding apparatus for joining the inner lid to the outer lid, adhesive equipment for applying mastic at

part-specific locations, piercer units for part-specific holes, and automated custom material handling equipment for moving work between process workstations.

You got a call a few weeks ago that said your plant will start making the Celebrity deck lids, and production has to start in 21 days. Not too bad - sometimes you only have four days. For new business like this your job is to get the necessary assembly equipment from the OEM plant, reconfigure the equipment and process to fit your plant, and have people ready to produce quality parts in the next three weeks. Others are responsible for the die sets and stamping end of the production process.

In the last 12 months this happened 300 times. In the last five years you've recycled some 800,000 square feet of floor space in OEM plants for new model production. At this point you have assembly equipment and process for some 1000 different parts - but no extra floor space ever came with any of it.

And no extra floor space materialized in your plant either. Good thing you haven't needed it - the core competency here is rapid new-part starts, and small-lot,

high-variety production - in a business that is traditionally based on high volume economics - and you've learned to do it without the usual capital budget. Eight years at this has evolved some pretty unique techniques - and a pretty unique culture as well.

You don't do this by yourself - you're a team leader that may use almost anyone from anywhere in the plant. At this point almost everyone is qualified to help bring in new work - surviving under these conditions has developed a can-do/let-me-at-it attitude almost everywhere, and a shared understanding of how to do it.

Eight years ago the plant went to a single job classification in production, cross training everyone on everything - a press operator one day might change dies as well, the next day work in the assembly area building hoods in the morning and fenders in the afternoon - and the following day go off to another plant to review a piece of equipment or part for how to bring it back.

For this new business Jim Lesniewski wanted to do the initial recon. He went on the last trip too, experimenting with his video camera. Now he thinks he's ready to do a perfect taping job. He got the idea himself while trying to bring several jobs at once back from another GM facility. This environment encourages self initiative.

In addition to taping the operational assembly process he added close-ups of key equipment pieces this time. In the debrief review everyone saw the same thing at the same time - there was almost no debate over what to bring back and what to ignore - and you got a jump on the equipment modifications by seeing what was needed in advance. Some time ago the value of having a good cross section represented in these reviews became evident: nobody gets surprised, everyone shares their knowledge, and when the eqchine, two welding robots, the welding fixtures, two press piercers, the shuttles, the press welders, and the three automated material handling fixtures. Basically bringing back a foot print of 200 square feet from a process that covered 2500 square feet. The rest will go to salvage disposition while the hemmer goes to "hemmer heaven" - that place in your plant where some 200 different hemmers hang out until needed.

That you only need the hemmer is where a key part of the plant's unique core competency comes to play. Rather than build a growing variety of product on some

• Problem Issues• Solution Activities• Solution Framework• Systems Integrity• Application of Principles

Expanded DetailedDesign Documentation

If / When Needed

Facilitated Re-Use: Unit inventory management, modification tools, and designated maintenance responsibilities.

• Configuration Team has responsibility for hardware/software module acquisition/modification/maintenance/inventory and for evolution of associated compatibility framework.

• Management & Union share joint responsibility for PTM classification and cross-training.

Non-Hierarchical Interaction: Non-hierarchical direct negotiation, communication, and interaction among system units.

• Production Teams free to make process changes w/o seeking permission or approval.

• Free communication permitted and encouraged among: tradesmen, engineer, supervisor, and customer.

Deferred Commitment: Relationships are transient when possible; fixed binding is postponed until immediately necessary.

• Process lines assembled JIT for production.• New-part acquisition/transfer team is not designated until a transfer

opportunity requires action.

Plug Compatibility: System units share common interaction and interface standards, and are easily inserted or removed.

• Unit Compatibility Rules (hemmers): no integrated controllers, standard controller interface, use 1 of 6 standard controller programs, common piping/wiring, quick disconnect fittings.

• System Compatibility Rules: Nothing attached to the floor, everything carry/roll/fork portable, etc.

Self Contained Units: System composed of distinct, separable, self-sufficient units not intimately integrated.

• Hemmers with set-up data sheet, quick-disconnect sockets, and wheels.• Modules enumerated above plus: Standard control programs, multiple

assembly areas, special fixtures, mastic templates, weld guns.

Evolving Standards: Evolving, open system framework capable of accommodating legacy, common, and completely new units.

• Used to leave useless wiring/switches/etc on incoming hemmers, now strip all un-used legacy items to eliminate maintenance confusion.

• TDA Buddies added to overhead support grid in Area A.• Intuitive flexibility culture is now being explicitly formalized.

Distributed Control & Information: Units respond to objectives; decisions made at point of knowledge; data retained locally but accessible globally.

• PTMs (Production Team Members) make real time decisions on process configuration improvements and changes.

• Operation sequence sheet attached to hemmer (facilitating easy movement to anywhere in the plant).

Self Organizing Unit Relationships: Dynamic unit alliances and scheduling; open bidding; and other self-adapting behaviors.

• People show initiative in solving problems and making operating improvements on their own - because risk is encouraged and occasional failure is expected.

Unit Redundancy: Duplicate unit types or capabilities to provide capacity fluctuation options and fault tolerance.

• Eight identical controllers.• Cross-trained production team with one work classification.• Multiples of roller tables, mastic machines, standing platforms, racks, weld

guns, weld tips, assembly areas, etc.

Flexible Capacity: Unrestricted unit populations that allow large increases and decreases in total unit population.

• Number of simultaneous assembly configurations limited only by assembly area space availability.

• Number of modules limited only by contiguous storage space availability and access logistics for remote warehousing.

Selected Observations of System Design Principles

Auto Body Assembly Lines Built JITReusable Modules:

• Cross-trained PTMs(Production Team Members)

• Roller tables

• Weld tips

• Hemmers

• Controllers

• Mastic tables

• Racks

• Standing platforms

Compatibility Framework:

• Overhead support grid

• Physical space

• Utility standards

• System compatibility rules

• Unit compatibility rules

• Plant flexibility culture

• Local union contract

Change Proficiency

Key Proactive Issues:Creation:

Assembly line construction

Improvement:Space productivity

Migration:New performance metrics

Addition/Subtraction:PTM staff changes

Key Reactive Issues:Correction:

Labor/mgmnt relationsVariation:

System set-up timeExpansion:

Space availabilityReconfiguration:

Flexibility culture

System Examples

Weld Tips

ControllersProduction TeamMembers (PTMs)

Hemmer Heaven

Roller Tables

StandingPlatformsMastic

Tables

Racks

P41 Deck Lid System

A47 FenderSystem

Reconfigurable System EngineeringA-Team Builds/Obtains/Modifies Modules,

Evolves Specific Framework Standards, andDesigns Assembly System Configurations.

B-Team Builds & Tears Down Assembly Sys.

Knowledge Packaged as a Metaphor Model

This figure is intended to convey a graphic impression of the two indicated models, and is not offered for reading purposes.

Response Ability ModelMetaphor Model


CoP

CoP

Portfolio managementstrategic group

(Sets agenda/priorities)

Collaborativelearningproject

Small staff

Rotating industry executives

Package/recruit/facilitatelearning projects and communities

ChairDirector

CKO

Learning Forum



CoP

CoP

Technology infrastructure, repositories, maps

Facilitate and supportcommunitiesof practice

Facilitate and supportcollaborative learning

projects

CKO Responsibility:The organization

has the knowledge it needswhen it needs it and

where it needs it.

Knowledge Portfolio Management



What We Saw

Language Reactive and Proactive Change 8 Change Domains 4 Change Metrics

Structure Framework/Module 10 RRS Principles (Reusable-Reconfigurable-Scalable)

Culture (as in engineering some) Change Proficiency Maturity Model Knowledge Portfolio Management Metaphor Model


Put It All Together and Get...

Enterprise Agility

Response Ability

Reactive andProactive Balance

Portfolio Management Change

Profic

iency

Adaptable StructureKnowledgeManagement

...A Potential for Excellence


But Potential AloneWill Not Achieve Fundamental Goals

Recognize opportunity

Take advantage of opportunity

Recognize threat

Minimize impact of threat

Add Three More Ingredients to

Raise Dynamic Integrity

and Get

An Intelligent Enterprise …

exhibits goal seeking behavior,

exercising its potential for agility

by understanding the business situation,

learning and adapting continuously, and

demonstrating sustained achievement of purpose.

Competency and Talent Collaborative Learning Decisive Action

Response Ability

DynamicIntegrity


Competencyand Talent

CollaborativeLearning

DecisiveAction

Resource PortfolioChan

ge Pro

ficie

ncyAdaptable Structure

KnowledgeManagement


Intelligent-Enterprise System Framework

Systemic Goals • Recognize opportunity• Take advantage of opportunity• Recognize threat• Minimize impact of threat

Key Principles/Concepts• Knowledge management• Response ability• Reactive/proactive balance• Dynamic integrity

Key Subsystems• Change proficiency• Adaptable structure• Knowledge portfolio• Collaborative learning• Decisive action• Competency and talent

Intelligence is related to the volume of the pyramid. Goal-seeking emerges

Response Ability

DynamicIntegrity


Competencyand Talent

CollaborativeLearning

DecisiveAction

Resource PortfolioChan

ge Pro

ficie

ncyAdaptable Structure

KnowledgeManagement



Silterra - Malaysia


IT Seen In New Light

Must not dictate or limit corporate capability Remove the ERP/Technology lock-in Provide freedom to use best tools Enable fast tracking of new IT technology and support of business strategy

Must exploit new electronic connectivity opportunity Real-time visibility of all enterprise activity and information Everyone wired for immediate self-service Dashboards and "agents" to bring focus on desired information Assist and structure key management processes Quick connections to information trading partners

No longer financial reporting, now enterprise capability infrastructure View as a logistics service, not as a financial function Distribute control and responsibility to the users

IT Strategic ObjectivesSupporting strategy with best-fit tools

is enabled rather than inhibited

Switching/upgrading to new technology and applicationsis enabled rather than inhibited.

Accommodating custom electronic "partner" relationshipsis enabled rather than inhibited.

Integrating new plants, facilities, mergers, and acquisitionsis enabled rather than inhibited.

All information is accessible electronicallyto those authorized to see it.

Electronic "dashboards" will provide real-time vision and monitoringof operational and strategic activities.

----------------------------------------------------------------------------------------------------

Provide competitive advantage throughenterprise visibility, adaptability, and technology


ERP/HRM Implementation

Wish Typical Imp Actual with OSFM ERP in 12 mos working 24-36 mos 12 mos working

Imp=80% of license cost 200-300% 75-85% Budget $10 Million (5+5) $15-25 Million $9 Million

HRM (PS) in 6 mos 12-18 mos 5 mos

HOW??

Unique approach to integration methodology and management Adherence to methodology (ie, effective management) BSAs utilizing MBW tool to develop business processes BSAs taking responsibility for integrating ERP with users Bus/XML architecture connecting ERP with HRM Expertise to help integrate ERP with CIM (Triniti) Expertise in agile system design/implementation (Dove/Guglielmo)

BSA = Business Systems AnalystMBW = Management by Wire (application from www.ecgsoft.com)

(To show metric results of a process designed with agile principles)

Architecture (1 of 3)

SSO = Single Sign-OnI / O = (# of Inbound Message Types) / (# of Outbound Message Types)

MyBus MyBus MyBus MyBus MyBus MyBusMyBus

MyETL

SSO

DataPower

SSO

Adexa

SSO

HR

FactoryWorks

SSO

MyFab

SSO

MyProject

SSO

TMS

SSO

14 / 00 / 4

ADC

0 / 3Intranet

MyETL MyETL MyETL

MyETL MyETL MyETL

MyBus

SSO

Klarity

0 / 3

MyETL

MyBus MyBus MyBus MyBus MyBus MyBus

MyETL MyETL MyETL

MyETLMyETLMyETL


SSO

Financials

AccountsReceivable

SSO

Inventory

SSO

SSO

CRM

3 / 0

Order Mgt

SSO

SSO

OSFM

4 / n

Oracle applications use a backdoor approach to exchange information between themselves.

MyBus

MyETL

SSO

PR/PO



SSO

Policy Server(s)

B2BGateway

DirectoryServer

SSO

Constituents

Internet

Intranet

Silterra-defined XML

Industry-standard

XML

MyBus MyBus MyBus MyBus

MyETL MyETL

MyETLMyETL

SSO

DemandPlanner

BOM

SSO

APS

SSO

SSO

PR/PO

MyBus

MyETL

SSO

IE DB

MyBus

MyETL

Doc Mgt

SSO


Agile IT Infrastructure

Fab #1

• Bus-Centric Plug-and-Play Component Architecture• MyBus and MyETL Infrastructure Components

PeopleSoft

MyProjects

OtherAppsMyFab Oracle

11i ApsOther

dBases

Fab #n A&T #1 A&T #n

Like Component Stereo...Loosely-Coupled Components Facilitate Upgrade and System Change

AdexaPlanner

XML Enterprise Bus

A&T = Assembly and Test Plant

OracleERP dB


Agile Implementation Process

DevelopBusiness Rulesand Data Defs

Configure ERPApplications

ConfigureDatabase

Configure/BuildBus Adaptors

• Implementation strategy “encapsulates” each team,making them solely/totally responsible for functionality.

bsa bsa

bsa bsa

bsa

bsa

bsa

bsa

B-RulesMgr

……..

……..

V1V1

bsabsa V1V1

V1V1

bsabsa

……..

……..

……..

V2V2

dbadba V2V2

V2V2

dbadba

……..

……..

……..

V3V3

IfTIfT V3V3

V3V3

IfTIfT

……..

Days0-60

61-120

121-180

Days0-15

16-30

31-45

Full Functionality• Software• Hardware Spec• Training• Implementation

• Encapsulation of projects promotes plugable encapsulation of functional components.



Full Functionality• Procedures• Work Flow• Rules• Data Definitions

Days0-60

61-120

121-180

60 days

Step A Step B Step C Step D

3-Phases

Template

Alpha

Beta

bsa = business systems analyst, V1/V2/V3 = different vendors, dba = database administrator, IfT = IT infrastructure technician.


……..

……..

V2V2

bsa bsa V2V2

V2V2

bsa bsa

……..

……..

……..

V3V3

ITIT V3V3

V3V3

ITIT

……..60 days

3-Phases

Template

Alpha

Beta

DevelopArchitectureand Design

DevelopBusiness Rules

and Specs

ManageOutsourced

Development

ConductTesting and

User Training

Days0-60

61-120

121-180

Days45-75

105-135

165-195

bsa bsa

bsa bsa

bsa

bsa

bsa

Proj.Mgr

bsa

Agile Process-management approach to IT development

120 days

ssa ssa

ssa ssa

ssa

ssa

ssa

Prog.Mgr

ssa

SteeringCommittee

ProgramManager

BudgetOwner

IT ProjectManager BSA

IT SupportResources

Outside DevelopmentResources

ITInfrastructure

Operations

COTS (ERP) Project Example

CreationImprovement

MigrationModification

with proactivedomains of

CorrectionVariation

ExpansionReconfig-uration

with reactivedomains of

ResponseSituation Analysis

ReusableReconfigurable

Scalable

achieved witharchitecture that is

Self-Contained

UnitsPlugCompatibilityFacilitated

ReuseDeferredCommitmentRedundancy/

Diversity

EvolvableFramework Elastic

Capacity SelfOrganization Distributed

Ctrl & Info Peer-PeerInteraction

based onprinciples of

Note: Relationships flow downward in concept maps

unless an arrowhead is present.

with objectivesdefined by

Agile StrategyConcepts

Agility

KnowledgeManagement

activities are

ResponseAbility

consists of

activities are

ITAdaptation

Mgmnt

ITInfrastructure

Mgmnt

CustomerSatisfaction

Mgmnt

TalentRelationship

Mgmnt

AdaptableSystemsMgmnt

StrategyDeliveryMgmnt

SecurityEvolutionMgmnt

Culture &Process

MyBus &MyETLMyFab Outsource

Support Culture &TrainingMyProjects Principles &

New Vision

appsare

appsare

appsare

appsare

appsare

appsare

appsare

ServiceIntegration

Mgmnt

MyStaff

appsare

Agile Security Strategy Strawman Framework

Proactive Principles

Vulnerability Anticipation – Identify/fix vulnerabilities before exploitation, sense indirect indicators of exploitation

Prudence – Correct vulnerabilities before exploitation

Transformation – Change randomly the elements/nature of security system

Threat/Risk Anticipation – Identify and counter threats and risks before exploitation

Migration – Continuous upgrade of security strategy and components

Accountability (Proactive) – Identify perpetrators with traps, glass houses, disinformation, etc, before damage

Reactive Principles

Detection – Detect intrusion and damage quickly

Containment – Minimize potential damage scope

Mitigation – Minimize potential damage magnitude

Assessment – Understand what has been damaged and how

Recovery – Repair damage quickly

Accountability (Reactive) – Identify the perpetrators forensically, after damage

Security Evolution Management


Agile Security

Detection – Become aware that an intrusion is in progress or has occurred in the past.

Containment – Partition the system so an intruder gaining access to one area cannot automatically gain access to other areas. Another meaning is to trap the intruder in a fish bowl.

Mitigation – Damage control. Steps taken before hand to minimize the amount of real damage that can occur – like refreshing web pages with originals periodically, under the assumption that they may have been changed. Steps taken during an event to minimize the damage that can occur – like shutting off access to applications within the contained area, shutting down servers until the intruder is expelled and the entry path closed.

Assessment – Discovering what was done by the intrusion that will need to be repaired/restored, and discovering how the intrusion occurred so this path can be blocked.

Recovery – Repairing/restoring any damage that was done, and closing the path used for entry.

Accountability (Reactive) – Discovering the direct and indirect parties perpetrating, aiding, and abetting the intrusion.

Reactive Principles

Activity: Security Evolution Management


Agile SecurityProactive Principles

Vulnerability Anticipation – Identify/fix vulnerabilities before exploitation, look for indirect indicators that vulnerability is being exploited. Example: see that a new type of attack mode has arisen and hackers will begin to use it, know that closing the door on one type of attack will make another the next avenue for exploration, hold periodic private white-hat war games to brainstorm new vulnerabilities, realize that an employee is living beyond their means, do penetration exercises, conduct periodic audits with different audit groups.

Prudence - Correct known vulnerabilities before they are exploited. Examples: update the operating system when the vendor issues a security patch,

Transformation - Changing randomly details of the security profile before knowledge of its nature can be used against it. Examples: passwords, check-sum methodologies, audit-trail analysis frequencies and strategies, audit trail, back ups.

Threat/Risk Anticipation – Identify/counter threats and risks before they occur. Example: Realize when a political rift between one country and another makes you a target, suspect that entry into a new market might insight a malicious competitive response, reevaluate risks periodically, rebuild the threat model periodically.

Migration - Upgrade continuously the security strategy and components. Examples: move from (or augment) passwords to smart-card authentication to PKI to bio-authentication to whatever's next.

Accountability (Proactive) – Use disinformation, traps, glass houses, etc to tempt and identify intruders. Examples: dead-end known vulnerabilities that raise alarm, standard and duplicate stealth audit trails that catch alteration attempts.

Activity: Security Evolution Management



Silterra SuccessesThat will probably stick: ERP/HRM implementation procedure (integration responsibility model) Agile IT infrastructure On-Demand application integration

That will probably be lost: Access to comprehensive information On-Demand Differentiated eBusiness strategy and implementation Business manager responsibility for IT Agile business engineering office MyStaff concept of employee involvement (but IT support stays)

That were planned but will probably not be implemented MyProjects: strategy implementation management/transparency Agile-culture development and maintenance Agile security strategy


Hindsight Observations

Value propositioning insufficiently addressed for execs CEO vision was articulated, but not bought into by others Benefits of agile vision neither appreciated, nor taught

Major attention focus conflict Production focused on plant/process construction (Herculean) Sales/Marketing focused on getting orders (Herculean) Other areas struggling with OJT and cultural conflicts

Unresolved responsibility gaps Copy Exact MES untouchable, sacred, isolationist Unresolved data-integrity conflict between ERP and MES Unresolved ownership of eBusiness strategy & proj mgmnt

Unresolved cultural conflicts Serious intercultural cold war and gang politics Resentment of US mgmnt, impatience for power transition Competency and performance not appreciated concepts

Unsustainable implementation and strategy Mandate to hire local IT, but insufficient capabilities available


Hindsight Lessons

Value propositioning for main decision should never stopPeople will not listen until they are ready Individual focus discovers and utilizes individual's values

Success constraints should be addressed with separate and continuous value propositioning

Do not assume problems are understood, make the caseStart-ups do not have forgiving time frames

Responsibility voids and conflicts must be resolved early IT cannot get cooperation w/o business mgr's commitment

Cultural engineering should start early Soft stuff is hard part, and cannot be postponedMismatch here is guaranteed rejection with time

There is no substitute for competency and talent Plan sustainability up front and act early


Hindsight Lessons

Strategic Value Proposition Work Needed

Agile security strategy and architecture

Internal responsibility for IT integration

Business management commitment to agility

Access to information by employees and customers

Business management responsibility for IT tools

Business engineering responsibility


The Detail and DisciplineAvailable at Amazon.com $70+

Available here at $60Chap 8 Silterra IT infrastructure 3 Proactive/reactive principles 4 RS analysis process 5 RRS principles 7 RRS design process 10 Realsearch process

• Discovery workshops analyzed cases. • Found underlying RRS principles.• Then applied principles to a design,

solving a problem for workshop host.• This process is called Realsearch:

Real people solving Real problems in Real time

Misperception Logic

Plous: Behavioral Psychology of Decision Making

© 2004, Rick Dove, Value Propositioning: Talent of Champions

conforms to

SelectivePerception

Expectations

Hopes

ContextDependence

MemoryBias

AssociatedMemories

InferredDetails

Re-construction

of Event

PartialMemory

OtherInformation

from

filled inwith

HindsightBias

PastEvent

believing

Predictable

was

Mis-perception

is caused by

Consistency

BiasedKnowledge

SelfImage

with

forces

OldPerceptions

meaning

results in

Comparison

SpecificReference

DominatePerception

FirstPerception

LastPerception

AssociatedPerceptions

determined by

making

may use

meaning making

with conform to

drawn from

CognitiveDissonance

Relationship flow is downwardunless arrowhead present.

RecencyEffect

PrimacyEffect

ContrastEffect

HaloEffect

will be

PerceptionCreation

by changing

determined by

Individual Decision Logic

UnderValued

Increases

IndividualDecisionBehavior

LowProbability

Gain

HighProbability

Loss

LossAverse

Behavior

"S" Curve

RelativeNon-Linear FormulationDependent

RiskAverse

Behavior

RiskSeekingBehavior

SteeperNegativeValues

GainLoss

Value

StatusQuo

RuinessOutcome

Hopes andExpectations

Perception asLoss or Gain

to

HighProbability

Gain

LowProbability

Loss

UnderWeightedHigh Prob

OverWeightedCertainty

Psycho-logicalBias

OverWeightedLow Prob

LossesLoomLarger

KnowledgeDependent

OverWeighted

Prob

UnderWeighted

Prob

LowKnowledge

HighKnowledgeChunking

Probabilities

Simplified

Elimination

by

Simpli-fication

reflects valuation as:

unless

results in results in results in results in results in results in results in results in results in

with

looks like

shaped as

InitialGains/Losses

Dominate

DiminishingIncremental

Values

results in

NotSignificant

if

perceptions of

if DM has

sets neutralpoint of

whichbiases

shaped by

effect iseffect is

Probability (Prob) is the subjective likelihood, assumed by a Decision Maker, that a proposed benefit will deliver as promised.


Kaheman & Tvarsky: Prospect Theory

© 2004, Rick Dove, Propositioning: Talent of Champions


based on

PerceptionCreation

GroupDecisionBehavior

PerformanceTargets

UnresolvedConflict

SimplePatterns

CandidateSolutions

SearchProcess

ProblemPerception

Who'sSearching

Amount ofOrg Slack

StandardRules

PastExperience

Past OrgSlack

selected by

PastPerform-

ance

PastObjectives

Perform-ance ofOthers

based on

DM'sObjectives

ObjectiveList

GroupMembers

involves

ObjectiveSetting Choice

based on

Influenced by

based on

"Satisficing"Valuation

results in

avoidsuncertainty by

Short TermView

results in

ContractTerms

NegotiatedPredictability

SequentialAttention

results in

PostponingSome

Objectives

results in

LowestCommonality

AcceptableLevel Rules

includes

MitigatingConflict

Training andExperience

AttentionFocus

Similarityto CurrentSolution

by

ValuePropositions

DecisionPsychology

interpreting

from

determined by

Group Decision Logic

Cyert & March: Behavioral Theory of the FirmSimon: Administrative Behavior

© 2004, Rick Dove, Value Propositioning: Talent of Champions


Competence and Talent

ROIDevelopment

Skill

PerceptionInfluencing

Skill

Communi-cation

Skill

TrustBuilding

Skill

CoreConcepts

Causeand Effect

Logic

Talent

Contextual Insightful Empathetic ResponsiveBehavior

TunedStrategy

ResponseImprovement

SkilledChampion

Competence

ValuePropositioning

employing conscious thought modes ofemploying unconscious thought modes of

FocusedEducating

FocusedLearning

FocusedBusiness

MathFocusedClarity

FocusedRisk

Reduction

can have

including

which is which is which is which is

which is

has skill ofmaster at

has skill ofjourneyman at


KnowledgeDevelopment

Skill


Security's Seven Mismatches with Reality

1. Human Behavior – Human error, whimsy, expediency, arrogance

2. Organizational Behavior – Survival rules rule

3. Technology Pace – Accelerating vulnerability introductions

4. System Complexity – Unpredictable unintended consequences

5. Globalization – Proliferating partners with different ethics and values

6. Agile Enterprise – Outsourcing, webservices, transparency, change

7. Agile Attackers – Distributed, collaborative, self organizing, proactive


Current PursuitsAgile IT

- Focus and refine RRS design principles for IT application and apply to specific host-site problem designs- Realsearch discovery workshop groups will do this- Deliverable: white paper on design principles and application- Ten workshop host-sites wanted, with real problem to work on

Agile Security Forum- Needed: reality-based problem knowledge & solution fitness function- Agile Security Forum will do this (like Agility Forum in the '90s)- Ten kick-start participant organizations wanted

Value Propositioning and Decision Making- Technology and decision-making behavior mix poorly- Three-book series in process- Book One at publisher now for Nov/Dec release... Value Propositioning: Perception and Misperception in Decision Making- Copies available at Amazon.com ~$10.00


Documents

Attributed Copies Permitted © 2004 RKDove, Paradigm Shift International, Agile System Principles and Practice ---- An Overview With a