Chapter1 Lecture

8/2/2019 Chapter1 Lecture

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January 7, 2009 1Florida International UniversityFlorida International University

Enterprise EngineeringEnterprise Engineering

Ronald E. Giachetti, Ph.D.Associate Professor

Industrial and Systems Engineering, FIU

Ronald E. GiachettiJanuary 7, 2009

Slide 2

Overview

Define enterprise engineering

Describe types of enterprises

Describe the enterprise design methodology

Describe the intellectual developed thathave contributed to modern thought onenterprise engineering

Describe the requisite knowledge and skills

for enterprise engineering Describe the dynamic environment

enterprise operate in


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Slide 3

Enterprise Systems

We use the term enterprise becauseis encompasses all types of enterprises;moreover, we later use the termorganization to discuss a single view ofthe enterprise


Slide 4

Enterprise Definition

An enterpriseis a complex, socio-technicalsystem that comprises interdependent resourcesof people, information, and technology that mustinteract with each other and their environment in

support of a common mission.

Interactionsimportant to behavior - include such activitiesas coordination of functions, sharing of information, andallocation of resources.

socio-technicalsystem - it involves people and technology.open system - it interacts with its environment.

purposeful- it has goals that it works towardsaccomplishing.


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Slide 5

Common Characteristics

All enterprises are systems, where a system is anintegrated collection of components (people andtechnology).

All enterprises use resources, an important resourceclass is the people employed by the enterprise.

All enterprises produce a product, provide aservice, or do both.

All enterprises have customers who receive thebenefits of the product or service.


Slide 6

Enterprise Engineering

Enterprises are not designed just once

they are continuously being designed

The body of knowledge, principles,and practices to design an enterprise


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Slide 7

How Enterprise are designed

Enterprises have existed for millennium To a large extent the enterprise was

not viewed as a whole system thatcould be designed

Ad hoc, short-term, local design

Ernst & Young study found that manycompanies have processes that were

designed long before the advent of IT


Slide 8

Enterprise Engineer

Business Systems Analyst (Business Analyst,System Analyst, and Process Analyst)

Enterprise Architect

System Architect

Project Manager

System Designer

Change Manager

System Engineer Application Developer (web application

developer, Java developer, ERP developer,etc.)


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Slide 9

Enterprise Life-cycle

1. System identification The system

boundaries, purpose, and projectscope are defined. The systemstrategy is identified.

2. Analysis The system problemsare analyzed, requirements aregenerated.

3. Design The system design isgenerated.

4. Construction The system is built.

5. Implementation The system isimplemented and deployed intoits environment.

6. Operation and Maintenance The system is operated andmaintained.

7. Decommission The system isretired.


Slide 10

Enterprise Design Method

Problem Solving consists ofthree activities

Scope Problem

Generate Solution

Test Solution

Not necessarilyiterative; as you scope

youre thinking aboutsolutions, etc.

Related to Plan, Do,Check, Act.


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Slide 11

Enterprise Architecture

An architectureprovides a holisticdesign of theenterprise with whichall enterprise projectsmust conform

Guarantees design

consistency towardsthe enterprise goals


Slide 12

Enterprise Engineering Projects

Strategy-initiated Project

Subsystem Design

Reengineering or other large-scaletransformation projects

Enterprise Information System

Continuous improvement

Supply chain project


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Enterprise EnvironmentEnterprise Environment

Understanding the rapidly changingUnderstanding the rapidly changing

environment enterprises operate inenvironment enterprises operate in




Slide 14

Enterprise Environment

Enterprises are open systems, whichmeans they interact with theirenvironment

Must understand enterprise in the contextof its environment

Competitive, dynamic, and globalenvironmental


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Slide 15

Closed versus Open Perspective

Enterprise

(components interacting)

Too often we thinkabout, analyze, anddesign enterprises as ifthey stand alone

When in fact, we needto consider the external

environment (labor,capital, competitors,regulatory, natural)


Slide 16

Trends towards Globalization

trends are:Fast, easy movement of people,knowledge, and technology

Cheap, ubiquitous telecommunications,mobile devices, and pervasive computing

Global competition

Demanding customers requiringcompetition on price, quality,features/performance, and speedIncreasing cost of natural resources andtheir greater scarcity


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Slide 17

Globalization

The removal of barriers to the world-wide flow of materials, information,people, and knowledge

Products & Services areno longer confined bygeography or culture


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Slide 19

Fast, Easy Movement of People

First cross-country trip made by autowas in 1903 by Dr. Horatio NelsonJackson 63 days and $8,000.

No gas stations in1903

Only 150 miles ofpaved roads


Slide 20


Transatlantic travel (oracross any ocean)was done by ship about 1 week

In 1927 CharlesLindbergh succeeds inNY to Paris flight (33hrs)


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Slide 21


Commercial jet air-travel started withthe Boeing 707 in 1959

Nowadays, a business

traveler can go from NY toTokyo in a day on a Boeing777


Slide 22

Cheap, ubiquitous communication

No longer are phone stuck to the wall

In third-world countries, cellphones are foundeverywhere

Price has

decreased,features haveincreased


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Slide 23

Global competition

Products compete globallyFew trade barriers (free trade)

Rapid, cheap, efficient logistics

Telecom & Internethave made it possibleto outsource servicestoo

Call centersIT & Softwaredevelopment


Slide 24

World Population

Growth has beenexponential & isuneven (droppingin Europe Growingin Africa)

In a world of

limited resourcesthere will bescarcity andhigher prices


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Slide 25

Scarce & Expensive Resources

Resources arelimited (metals,land, water, fuel)

As demandincreases thenprices increase

Greater consumption ofmeat, use of biofuelexaggerate the increasedemand


Slide 26

Summary

The world environment is changing rapidly

Globalization is affecting all phases of life

A problem in one part of the world nowaffects other parts of the world

Enterprises mustBe designed to efficiently use resources(sustainability is growth area)

Be agile to quickly respond to environmentalchanges Monitor their environment

Constantly improve


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History of EnterpriseHistory of Enterprise

EngineeringEngineering




Slide 28

Scientific Management

Application of the scientificmethod to management

Primary goal efficiency ofresources

The work is systematicallyanalyzed (time studies) it isbroken down into its minisculeoperations, each operate is

assigned to a separate worker,and an elaborate set ofprocedures is generated toregulate each operation

Frederick Taylor


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Slide 29

Scientific Management Principles

Division of labor Time studies

Functional supervision

Standardization of tools

Standardization of work methods

Separate planning the work from doing the work

Management by exception principle

Instruction cards for workmen

Differential rate or pay for performance

A routing system

Modern costing system


Slide 30

Humanist School of Management

Shifts focus from processes to the people --A reaction to Scientific Management that viewsman mechanistically (as a machine)


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Slide 31

General Systems Theory

Argues that all systems share commonproperties

Systems must bestudied holistically

You cannot breaksystem into itsconstituent parts, studythe parts, and then

understand thebehavior of the systemBertanaffly


Slide 32

Summary

Brief overview of three intellectualdevelopments that contributed strongly toenterprise engineering.

The concepts of the human relations schooldid not replace the earlier scientificmanagement school, nor has the morerecent systems thinking school replaced thehuman relations school.

The older ideas are not abandoned byincorporated into the new ideas.

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Chapter1 Lecture