EIN 6133 Enterprise Systems Engineering - PowerPoint PPT Presentation

1 / 34
About This Presentation
Title:

EIN 6133 Enterprise Systems Engineering

Description:

Schools of pragmatic strategic mgt. Design school ... and break them down in a hierarchical fashion to the elemental competency level. ... – PowerPoint PPT presentation

Number of Views:56
Avg rating:3.0/5.0
Slides: 35
Provided by: lli6
Category:

less

Transcript and Presenter's Notes

Title: EIN 6133 Enterprise Systems Engineering


1
EIN 6133Enterprise Systems Engineering
  • Fall 2007
  • Chin-Sheng Chen
  • Florida International University

2
T5 Enterprise facets
  • Element facets
  • Strategy
  • Competency
  • Capacity
  • Structure

3
The ESE Framework Re-visit
4
Readings References
  • Readings
  • HEA Chapters 4, 6, 8
  • Reference
  • What is strategy?, by Michael Porter, HBR,
    Nov-Dec, 1996.
  • Strategy Maps by Kaplan and Norton, HBS, 2004
  • Strategic management, 4th edition, by Burgelman,
    etc. , McGraw-Hill, 2004

5
Enterprise facets strategy (1)
  • Definition
  • Michael Porter,1996, HBR
  • Creating fit among a companys activities
  • Selecting the set of activities in which an org.
    will excel to create a sustainable difference in
    the marketplace.
  • The sustainable difference can be to deliver
    greater value to customers than competitors or to
    provide comparable value but at a lower cost than
    competitors
  • Differentiation arises from both the choice of
    activities and how they are performed.
  • A long-range plan in a hierarchical structure of
    goals and objectives, and a selected way of
    creating a fit between external environment, and
    internal resources and capabilities
  • Kaplan and Norton (in Strategy Maps, 2004)
  • Strategy describes how an org. intends to create
    sustained value for its shareholders.

6
Enterprise facets strategy (2)
  • Alternative views of strategy (classic)
  • One ideal competitive position in the industry
  • Benchmarking of all activities and achieving best
    practice
  • Aggressive outsourcing and partnering to gain
    efficiencies
  • Advantages that rest on a few key success
    factors, critical resources, and core
    competencies.
  • Flexibility and rapid responses to all
    competitive and market changes.

7
Enterprise facets strategy (3)
  • Alternative views of strategy (sustainable
    competitive advantage)
  • Unique competitive position for the company
  • Activities tailored to strategy
  • Clear trade-offs and choices vis-à-vis
    competitors
  • Competitive advantage arises from fit across
    activities
  • Sustainability comes from the activity system,
    not the parts.
  • Operational effectiveness is a given.

8
Enterprise facets strategy (4)
  • Reconnecting with strategy by identifying
    companys core uniqueness
  • Which of our product or service varieties are the
    most distinctive?
  • Which of our product or service varieties are the
    most profitable?
  • Which of our customers are the most satisfied?
  • Which customers, channels, or purchase occasions
    are the most profitable?
  • Which of the activities in our value chain are
    the most different and effective?

9
Enterprise facets strategy (5)
  • Strategy hierarchy
  • Possible layers
  • Corporate vision and goals
  • Business unit strategy
  • Functional tactics
  • Purpose
  • To ensure consistency up and down the
    organization
  • Danger
  • Being viewed as an elitist view of management
    from top down
  • Opportunity
  • Develop ways to harness the wisdom of anthill
    such as QCC (quality control circles)

10
Enterprise facets strategy (6)
  • Dominant schools of strategic mgt.
  • Pragmatic knowledge
  • A rational process of deliberate calculation and
    analysis designed to maximize profit by setting
    goals and cascading them down to actions and
    resources
  • Conceptual knowledge
  • A question-answer process to understand the
    nature of competition and make business decisions
    accordingly.
  • Resource-based view
  • A process that focuses on exploiting and
    deploying resources to sustain superior
    performance.

11
Enterprise facets strategy (7)
  • Schools of pragmatic strategic mgt.
  • Design school
  • Develop a deliberate process of conscious thought
  • Planning school
  • Formalize the deliberate process into a formal
    planning methodology with techniques and
    checklists
  • Positioning school
  • Shifting focusing on a strategy formation to
    strategic content

12
Enterprise facets strategy (8)
  • Positioning school of pragmatic strategic mgt.
  • Five forces that determine the inherent profit
    potential of an industry and thus help a firm to
    find a product/market position
  • Entry barriers
  • Threat of substitution
  • Bargaining power of suppliers
  • Bargaining power of buyers
  • Rivalry among industrial incumbents
  • Decision making process
  • Pick an industry based on its structural
    attractiveness
  • Choose an entry strategy based on conjectures
    about competitors rational strategies.
  • if not already possessed, acquire or otherwise
    obtain necessary resources to compete on the
    market.
  • Decision is usually reduced to choosing a generic
    strategy such as cost leadership,
    differentiation, and focus to avoid being caught
    up in between (in the transition stage).

13
Enterprise facets strategy (9)
  • Schools of conceptual strategic mgt.
  • To answer the following questions
  • Why do firms differ?
  • How do firms behave?
  • What explains the success and failure for firms?
  • How does the strategy making process affect
    strategic outcomes?
  • How do differences persist?

14
Enterprise facets strategy (10)
  • Schools of conceptual strategic mgt.
  • Transaction cost economics
  • Efficiency is the only comparable advantage
  • Managers must concentrate on their cost,
    especially the transaction costs of organizing
    and coordinating
  • It is the force behind make-or-buy decisions,
    mergers, acquisitions, and strategic alliances.
  • Chaos theory
  • To address the issues of unpredictable, intense,
    and high-velocity-changes nature of modern
    industry
  • Focus on internal response to chaos such as time
    pacing, continuous flow of competitive advantage
    and organizational structure
  • Remain flexible in an uncertain world
  • Game theory
  • Use game theory tools to analyze the nature of
    competitive interaction between rival firms and
    to reveal how a firm can influence the behavior
    and action of rival firms and thus the market
    environment, viewing business as a series of
    moves and counter moves.
  • Make decisions about marketing variables,
    capacity expansion, and reduction, entry and
    entry-deterrence, acquisitions, bidding, and
    negotiation.

15
Enterprise facets strategy (11)
  • School of resource-based strategic mgt.
  • A firm is conceptualized as bundles of resources
    and capabilities, with which the firm competes
  • They cannot be bought or sold in markets and must
    be developed rather than being taken as given.
  • Thus the source of sustainable superior
    performance lies internally in the capacity to
    exploit and deploy resources.
  • A firm must focus on its internal organization
    and place a focus on strategic positioning (for
    use of its resources)
  • There is a shift from traditional schools (a
    portfolio of products or a network of moves) to
    the resources based view (portfolio of resources
    and competencies)

16
Enterprise facets strategy (12)
  • Strategy issues of system elements
  • Work strategy
  • Focuses vs. diversified products/services
  • Leadership differentiation (Cost vs. lead time
    vs. quality)
  • Decision strategy
  • Corporate culture
  • Organizational structure
  • Resource strategy
  • In-house vs. virtual resources
  • Cultivation vs. hiring/firing
  • Information strategy
  • In-house development vs. acquisition
  • Trade secret vs. patent

17
Enterprise facets competency (1)
  • Definition, competency
  • The quality or condition of being legally
    qualified for or technically capable of.
  • Also known as capability
  • An attribute of a resource as skill, of
    information as know-how
  • A building block for work and decision
  • Common unit of elemental competency - operation
  • An operation is a business activity that has a
    duration, start event, and end event.
  • It requires resource(s), with a specific skill
    (ability) and following a fixed procedure, to
    perform the activity.

18
Enterprise facets competency (2)
  • Competencies (in terms of operation types) (1)
  • Productive
  • Engineering operations
  • Engineering analysis, design, drafting, etc.
  • Manufacturing operations
  • Machining, forming, finishing, treatments,
    joining, assembly, etc.
  • Maintenance
  • Operational
  • Production/service operations
  • Operation planning, acquisitions (resources
    service), accounting, etc.
  • Marketing/sales operations
  • Administrative operations
  • HR, PR, IT, IP, security, etc.

19
Enterprise facets competency (3)
  • Competencies (in terms of operation types) (2)
  • Executive
  • Monitoring operations
  • Monitoring
  • Auditing
  • Control operations
  • Quality control (IQC/IPQC, etc.)
  • Shop floor control
  • Approval (work plans including changes)
  • Test

20
Enterprise facets competency (4)
  • Definition, flow
  • A network of activities arranged in their logical
    sequence for a purpose, starting from one end and
    proceeding to the other.
  • A flow is an aggregation (or network) of
    competency units of a varying size
  • Each flow must have a system element that flows
    through the resources which perform an activity.
    The flowing element must be a resource or
    information. That is, a work (or decision) flow
    occurs via an agent of either material or
    information element.

21
Enterprise facets competency (5)
  • Related flow concepts
  • Each system entity (element) has a life cycle of
    activities from birth to death (forming a flow).
  • An entity may have (or be associated with) a
    variety of flows in its life cycle
  • Workers may have flows of activities defined for
    going cafeteria, restroom, material retrieval,
    etc.
  • Flows can be nested
  • Competency analysis may start with decomposing
    work and flows existing in the company

22
Enterprise facets competency (6)
  • Competency and flow of system elements
  • Work competency and flow
  • Work competency
  • Work flow (network of work activities)
  • Decision competency and flow
  • Decision competency
  • Decision flow (network of decision activities)
  • Resource competency and flow
  • Resources competency
  • Resources flow
  • Information competency and flow
  • Information competency
  • Information flow

23
Enterprise facets competency and flow (7)
  • Work competency and flow
  • Work competency
  • Defined by productive competency units of a
    varying size
  • Work flow
  • Network of productive competency units
  • Substantiated via one or more material (and/or
    information) flow between resources.

24
Enterprise facets competency and flow (8)
  • Decision competency and flow
  • Decision competency
  • Defined by managerial/executive competency units
    of a varying size
  • Decision flow
  • Network of managerial competency units
  • Substantiated via a material (or information)
    flow between resources.
  • A note on business process
  • A work flow nested with decision flow(s)

25
Enterprise facets competency (9)
  • Resource competency and flow
  • Resource competency
  • Characterized with productive, managerial, or
    executive competency units of a varying size,
    which usually is operation.
  • Resource flows
  • Each resource may have its own flow(s) between
    other resources
  • Critical flows
  • Material flow
  • Work flow, rework flow, scrap flow
  • Human flows
  • Material handling (involving one or more
    resources), human maintenance
  • Cash flow
  • Utilities flow
  • Machine and tooling flow
  • Maintenance, etc.

26
Enterprise facets competency (10)
  • Information competency and flow
  • Information competency
  • Characterized with productive, managerial, and
    executive competency units of a varying size,
    which usually is operation.
  • Information flow
  • Each information may have its own flow(s) between
    resources.
  • Information may flow between resources due to
  • its being worked on (similar to material and WIP)
    or
  • its being used in support for an activity
    (similar to labor and machine)

27
Enterprise facets capacity (1)
  • Capacity, definition
  • The quantity (amount) required for an enterprise
    element

28
Enterprise facets capacity (2)
  • Work capacity (requirement)
  • The amount of work required to be done
  • Depending on work forecast (or orders) in terms
    of its revenue, input, output, etc.
  • Decision capacity (requirement)
  • The amount of decision required to be made
  • Depending on decision needs as imbedded in the
    business process design
  • Resources capacity (requirement)
  • The amount of resources required to perform
    productive, operational, and executive activities
  • Information capacity (requirement)
  • The amount of information required to perform
    business activities with (which may be limited by
    duplicity, license, and serving agents)

29
Enterprise facets structure (1)
  • Structure, definition
  • The relationship (or organization) of intra/inter
    elements of an enterprise system
  • The structure is shaped by companys strategy,
    competency and capacity.

30
Enterprise facets structure (2)
  • Work structure
  • Work hierarchy
  • Program (not a work order)
  • Project
  • Deliverable item
  • Task
  • Sub-task
  • Operation
  • Step
  • Work constraints
  • Hierarchical (managerial)
  • Lateral (technical)

31
Enterprise facets structure (3)
  • Resources structure
  • Resources hierarchy
  • Company
  • Division
  • Factory (plant)
  • Department
  • Section
  • Group
  • Individual
  • Structure types
  • Functional
  • Pure-project
  • Matrix

32
Enterprise facets structure (4)
  • Decision structure
  • Decision hierarchy
  • Strategic
  • Tactic
  • Operational
  • Decision processes are based on work and org.
    structure
  • Each productive operation may be followed by a
    decision process (or activity)
  • Thus each work hierarchy may be coupled with a
    hierarchy of decisions

33
Enterprise facets structure (5)
  • Information structure
  • Production data
  • Organized by work order
  • Some production data may be translated into
    knowledge or engineering data after the work
    order is done.
  • Engineering data
  • Organized by
  • Operation type or
  • Business process
  • Knowledge data
  • Organized by
  • Operation type or
  • Business process

34
T5 Homework
  • Pick a company (or one of its divisions) you are
    familiar with, make a copy of its webpage,
    highlight (or specify) its mission, vision, and
    goals
  • Develop a strategy for its vision/goal
  • Identify its core competencies and break them
    down in a hierarchical fashion to the elemental
    competency level.
  • Due date in two weeks
Write a Comment
User Comments (0)
About PowerShow.com