New Applications Of GERAM to Virtual Enterprises And Networks

1. New Applications Of GERAM to Virtual Enterprises And Networks Peter Bernus Griffith University June, 1999

2. Overview • Project enterprise as a Virtual Enterprise • Bidding and performing the project • Virtual manufacturing / service enterprise • Properties of VE

3. GERA Identification Concept Requirements Preliminary design Design Detailed design Implementation Operation Decommission Life-cycle of a OKP (e.g. plant)

4. GERA Resource development planning Plant engineeringand construction project using concurrent engineering Life-cycle Continuous improvementplanning Redesign/refurbishproject Decommissioningproject Plant Operation Time Life history of a OKP (e.g. plant)

5. GERA Resource development planning Plant engineeringand construction project using concurrent engineering Life-cycle Continuous improvementplanning { Companycompetency Redesign/refurbishproject { EngineeringProjectEnterprise’scompetency Constructioncompanycompetency { { Plant competency { Decommissioningproject Plant Operation Time Competencies

6. GERA identification concept requirements preliminary design design detailed design implementation operation decommission Project Enterprise Relationship between life-cycles Plant operation

7. The project is an enterprise • Has ‘operations’ and ‘management’ • Is ‘virtual’ - it is not a company with assests, but it disposes over resources for the duration of the project / has mechanisms to secure the use of resources for the service/production tasks

8. Characteristic life history of project enterprise

9. company Contributions to the life-cycle of a OKP (plant) plant { { EngineeringProject Enterprise { Infrastructureproviders { EngineeringContractor EngineeringSubcontractors ConstructionCompany

10. Management and Control System Management and Control System Management and Control System Operations Operations Operations Negotiate project Carry out project

11. Preparedness/readiness • The companies in a network / alliance / partnership should be ready to bid for a given type of project • This defines management and operational competencies that must be available for successful bidding

12. It is the purpose of the design of the management system, to co-ordinate objectives of the high levels with objectives of low levels h=7d p=1d h=1d p=8h co-ordination h=8h p=1h real time

13. DCs behave as an agent - the challange is for the enterprise as a whole to also behave as an agent (“aware enterprise”) • The production management system of one integrated enterprise will achieve this. Problem: how to co-ordinate non incorporated enterprises (virtual enterprises) to achieve the same?

14. Traditional value chain isnot co-ordinated: the virtual enterprise is not an agent h=7d p=1d h=7d p=1d h=1d p=8h h=1d p=8h co-ordination co-ordination h=8h p=1h h=8h p=1h real time real time operational interaction only, feedback fixes only individual problems

15. Integrated value chain is co-ordinated: the virtual enterprise is an agent h=7d p=1d h=7d p=1d h=1d p=8h h=1d p=8h co-ordination co-ordination h=8h p=1h h=8h p=1h real time real time multi-level interaction: objectives are co-ordinated on every horizon (also on top!)

16. Consortium with limitedco-ordination: the virtual enterprise acts as an agent in a limited domain } co-ordination onmultiple levels, e.g. joint policy adjustment (in limited domain) Here the consortium has separate mgmtwith limited authority co-ordination co-ordination

17. Enter into pre-agreements: for a category of products or services or for a type of project agree on common way of acting, on type of information sharing, mutuality, ways to prepare a joint bid, ... H=1y p=3m H=1y p=3m h=3m p=2w h=3m p=2w co-ordination co-ordination h=2w p=5d h=2w p=5d real time real time

18. Based on tender / invitation to bid set up a project to prepare a bid H=1y p=3m H=1y p=3m h=3m p=2w h=3m p=2w co-ordination co-ordination h=2w p=5d h=2w p=5d real time real time

19. H=1y p=3m h=3m p=2w co-ordination h=2w p=5d real time Allocate resources to bid preparation H=1y p=3m h=3m p=2w co-ordination h=2w p=5d real time

20. Question: do we need these strategic / tactical transactions between all partners?

21. Management and Control System Management and Control System Management and Control System Management and Control System Management and Control System Operations Operations Operations Operations Operations VE The infrastructural service/product providers need not be involved (VE has relative authonomy)

22. Autonomy • Autonomy is relative, an enterprise as an agent is autonomous in relation to a set of functions that it can perform without the need to rely on others, provided there is a presupposed ubiquitous infrastructure

23. Company Necessary competencies Plant { EngineeringProject Enterprise { { InfrastructureProviders { EngineeringContractor EngineeringSubcontractors ConstructionCompany

24. T1 T2 T3 T4 I C R D I O D Network · » ¿ I C R D I O D Virtualenterprises ¸ º ¼ ¶ ½ I C R D I O D Products ¹ ¾ Time After J.Vesterager, TUD,1999

25. Identification Concept Requirements Preliminary design Design Detailed design Implementation Operation Decommission Necessary competencies EngineeringProject Enterprise

26. Identification Concept Requirements Preliminary design Design Detailed design Implementation Operation Decommission Engineering Project Enterprise

27. Engineering Project Enterprise Plant engineering policies(ISO 9000x) Particular Plant engineering policies Plant engineering functionalrequirements specification (STEP) Particular Plant Project requirements Resource (Application type) Information (AP) Function (typicalengineering projectfunctions) Quick to generatein the presenceof reference model

28. Engineering Project Enterprise Particular Plant engineering policies Resource ontology Particular Plant Project requirements EXPRESS (languagesemantics) Selected CAD tool type IDEF0 semantics STEP (AP) Particular project functions

29. Engineering Project Enterprise Resource ontology (design level) Selected CAD tools, contractors SQL Product databasedesign Project mgmt ontology Project plan(time, cost)

30. Types of VE 1 VE for OKP 2 Repetitive service or manufacturing To manage the VE = supply chain management on all levels in the extended enterprise

31. Necessary ingredients for VE • Common objectives (opportunity, economy, competitivity, interest) • Motivation to create a VE is to create synergy of key partners by the VE to produce service/product which would have been beyond any of them if acting separately. VE based on Business opportunity

32. Supply chain Operations Operations Material and information flow

33. The extended enterprise (may or may not be co-ordinated on tactical and strategic levels, therefore may not have the survival capabilities a single enterprise has.) Management transactions on operational control level Management and Control System Management and Control System Operations Operations

34. Virtual enterprise is a kind of extended enterprise which acts as one autonomous entity for the purposes of its product co-ordination transactions on all necessary levels Management and Control System Management and Control System Operations Operations

35. Important distinctions between types of VE based on • Are partners of the same size (determines relevance/significance of transactions) • Are they co-located or somehow different from the rest? • Is knowledge shared or is it provided / owned by one member? • Mutuality, significance, control, informedness as important distintions in forming various types of VE

36. End user End user Management and Control System Management and Control System Management and Control System Management and Control System Operations Operations Total commitement Virtual Enterprise Not visible for e.u. (after Russel, ICEM99) Attributable commitement Operations Operations Extended Enterprise visible for e.u.

37. Performance metrics • Need ways to derive performance metrics (and attribution of contributions) in the extended enterprise

38. New (open) problem of VE modelling • Need to disclose details to be able to plan and predict (e.g. by simulation) the properties of VE • Need to preserve key business knowledgeSame contradictioin exists on the person / group and group / enterprise level!

39. Requirement • How to achieve / control trust commitment visibility

40. VE as post-matrix • Cooperation among the same discipline groups in the VE may replace the disciplinary (functional) part of organisation -- needs formal associations (networks, partnerships,..)

41. The End