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Enterprise Engineering

Enterprise Engineering. Larry Whitman whitman@imfge.twsu.edu (316) 691-5907 (316) fax. Industrial & Manufacturing Enterprise Department The Wichita State University http://www.mrc.twsu.edu/enteng. IE880I. Text

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Enterprise Engineering

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  1. Enterprise Engineering Larry Whitman whitman@imfge.twsu.edu (316) 691-5907 (316) fax Industrial & Manufacturing Enterprise Department The Wichita State University http://www.mrc.twsu.edu/enteng

  2. IE880I Text • The Great Transition : Using the Seven Disciplines of Enterprise Engineering to Align People, Technology, and Strategy • by James Martin • Hardcover - 503 pages (September 1995) • AMACOM; ISBN: 0814403158 • Also, significant outside articles will be assigned.

  3. IE880I - Topics • Overview of Enterprise Engineering (3 weeks) • Basic overview of what is enterprise engineering and its benefits. Students will learn the advantages of EntEng and associated terminology and philosophy. • IE880I - Exam 1 - February 5, 1999. • Test will be closed book/notes - fill in the blank/essay format. • One hour long, then we begin the next topic. • We will have class Feb 26, 1999 • Dr. Mahlzahn will be guest speaker on Activity Based Costing

  4. What is an Enterprise? An Enterprise is a complex systemof cultural, process, and technology components ... Enterprise Enterprise ... a system engineered to accomplish organizational goals.

  5. What do Engineers do? Design things! Same as other engineers, Enterprise Engineers design things. Only their thing is the enterprise

  6. Systems Approach Environment System Enterprise Goals input output External Suppliers External Customers Your Supplier Your Process Your Customer feedback feedback People Tools Machines

  7. Today • Martin Chapter 3-5 • IE and IT Article by Davenport and Short • EntEng: A Discipline? Article by Liles, et al. • Verndat Chapter 1

  8. Wrong use of Automation (Chap 3) Design How can we automate what already exists? Replace to make fundamentally better

  9. Wrong use of Automation (Chap 3) System must fit the users and not the reverse? Not always, frequently the users must change their ways in order to maximize profits from automation

  10. Redesign, then automate! • Little change, little payoff • Big change, big payoff • A small change with some payoff may mean it is much more difficult to make the right change later.

  11. Russell Ackoff • “If each part of a system, considered separately, is made to operate as efficiently as possible, the system as a whole will not operate as effectively as possible.

  12. Martin • “It is appalling how many authorities on “business process reengineering” advocate modeling and modifying an existing business process when the right thing to do is scrap the process and take an integrated approach to building cyber-crop value streams (discussed later) • Raise questions about … overall architecture, culture, and IT

  13. Electronic Organism (chap 4) • As systems become more complex, the design of these systems must be automated. • Automation of Automation • Reaction times shrink, complexity increases, decisions become less intuitive.

  14. Key concept • JOINT creativity of business and computer people

  15. Architecture - Martin • “The architecture of an enterprise is the basic overall organization within which work takes place. • Note how this compares with later definitions

  16. EntEng Definition (Martin) (Chap 5) • … an integrated set of disciplines for building or changing an enterprise, its processes, and systems. It integrates the most powerful change methods and makes them succeed. The goal is a human-technological partnership of maximum efficiency in which learning takes place at every level. (Martin)

  17. Goal of the Enterprise Engineer • “Identify and integrate the most valuable and successful ways to change an enterprise, and to take them into a professional discipline with a teachable methodology and measures of effectiveness.”

  18. What do Enterprise Engineers do? • Identify and Integrate best and most successful ways to change an enterprise

  19. What do Enterprise Engineers do? • Two aspects • Understand new mechanisms • New ways of organizing work • New Corporate Architectures must be understood • Understand methods that can change an enterprise

  20. Two questions Enterprise Engineers always ask • What should the enterprise be? • How do we get there from here?

  21. Seven Components of Enterprise Engineering

  22. TQM, Kaizen • Continuous change applied across an enterprise • Kaizen - Japanese term for continuous improvement • Everybody improves everything all the time If it aint broke don’t fix it!

  23. Procedure Redesign • Discontinuous reinvention of existing processes • Quick hit • Low lying fruit

  24. Value Stream Reinvention • Discontinuous reinvention of “end to end” streams • Breakthrough improvement for the CUSTOMER

  25. Enterprise Redesign • Discontinuous redesign • Holistic change to a new world architecture, sometimes accomplished by building new business units of subsidiaries.

  26. All for changing processes • Simplifying work • Improving results

  27. Simplification of Work (note order) • Eliminate (bureaucracy and non-value added) • Simplify (work flow, etc.) • Work Smarter • Reduce Middlemen (eliminate) • Refine IIS • Automate • Automate Automation

  28. Strategic Visioning • What is a vision?

  29. VISION & STRATEGY A Passion for BETTER - FASTER - CHEAPER PROCESS PEOPLE TECHNOLOGY Strategic Visioning

  30. Resisting the Tide of Change “Doing your best is not enough.” W. Edwards Deming You must know what to do, how to do it and be willing to pay the price to do it.

  31. Define Purpose Understand Environment Determine Outcomes A Disciplined Planning Process Vision, Values, Mission Issues, Concerns, Assumptions Goals Identify Risk Obstacles Plan Evaluate Alternatives Strategies Act Do Check Assign Actions Objectives

  32. An Iterative Process Strategic Purpose Focus on the customer Environmental Assessment Management Commitment

  33. Define Purpose Understand Environment Determine Outcomes A Disciplined Planning Process Vision, Values, Mission Issues, Concerns, Assumptions Goals Identify Risk Obstacles Plan Evaluate Alternatives Strategies Act Do Check Assign Actions Objectives

  34. Do You Need a New Purpose? • Confusion about where organization is going • Complaints about inability to contribute • Losing customers • Not current on the latest developments • Use of “We” and “They” • Excessive risk avoidance • Difficulty in describing improvement • Hyperactive rumor mill

  35. Values Customer Expectations Mission Vision Purpose A Process Output/ Outcome Input Activity

  36. Vision RIP RIP Humanity is grateful that someone who so adored their species lived among them I would rather be here than in Philadelphia What do you want said?

  37. Vision What the organization ASPIRES to become

  38. Vision Statement • Appropriate • Inspiring • Directing • Focusing • Guiding • Unique

  39. Vision Statement A vision statement can be used as a marketing tool as well as an inspiration to employees: Ford's vision: Quality is job 1. ADM's vision: Supermarket to the world If the vision motivates employees, it will influence customers.

  40. Mission What the organization SHOULD be doing

  41. Mission Statement Broadest strategic planning choices of what the organization should do • Products/services • Markets • Customers • Competitors

  42. Values Guides the organization’s BEHAVIOR

  43. Values • Communicates what is and what is not right • Provide context for decision making • Enduring • Widely shared

  44. Values Statement • Based on values of organization • Commits resources to achieve vision • Not a slogan • Lived everyday • Drives behavior of employees at all levels

  45. Statement of Purpose "We will create a corporation in which all people, particularly technical employees, are respected and are able to work to the best of their ability." "We will not imitate the products of our competitors, but will try to create goods that have never existed in our market before." "We will focus on the consumer market and apply the most advanced technology to the consumer products area." Sony Corporation, 1946 Total Assets: $500 I know those guys!

  46. Assignment For your own (pretend) company, develop • Vision • Mission • Values

  47. A Discipline? • Article by Liles, Johnson, and Meade 1996 • Industrial Engineering Research Conference

  48. Characteristics of a Discipline

  49. Focus of Study • Unique fundamental question • Must be meaningful as technology changes • Enterprise Engineering - “how to design and and improve all elements associated with the total enterprise through the use of engineering and analysis methods and tools to more effectively achieve its goals and objectives

  50. World View • Paradigm • Guides the discipline through research and practice • Enterprise Engineering • Enterprise can be viewed as a complex system • Enterprise is to be viewed as a system of processes that can be engineered both individually and holistically • Engineering rigor is required in transforming an enterprise • Enterprise CAN be engineered

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