deborah nightingale - 1 © 2002 massachusetts institute of technology examples of commonality in...
TRANSCRIPT
Deborah Nightingale - 1 copy 2002 Massachusetts Institute of Technology
Examples of Commonality in Lifecycle Operations
bull Commercial Airline ndash Main engine starter is common across 747-400 767 and 767-300ER ndash 26 airports service these aircraft (11 common) ndash Airline only has to stock 14 spares as opposed to 25 if they were not common bull PMA-276 ndash UH-1Y and AH-1Z deploy together on the same MEU relyingon the same mobility maintenance training and sustainmentinfrastructure ndash 85 commonality between UH-1Y (utility) and AH-1Z (attack)reduces the detachment maintenance personnel requirementfrom between 4 and 14 people (3 to 12) ndash Nearly $15 billion in savings from commonality over 20 year lifecycle of program
Deborah Nightingale - 2 copy 2002 Massachusetts Institute of Technology
Timeline of Commonality Benefits Illustrates Linkage to Multi-Stakeholder Enterprises
Designreuse
Shared development cost
Reduced rework
Reduced tooling
Reduced cycle time
Higher productivity
Reduced spares inventory
Higher spares availability
Reduced complexity in supply
Greater interoperability
Higher reliability
Reduced downtime
Fewer maintenance hours
Lower risk
Reduced time for source selection
Faster solutions to problems
Reduced testing
Process reuse
Economies of scale
Reduced inventory
Reduced training equipment
Reduced support equipment
Reduce training time
Reduced documentation
Increased operator competency
Reduced DMS
Deborah Nightingale - 3 copy 2002 Massachusetts Institute of Technology
System Integrator-Supplier Communications Involve Interactions at Different Levels
General Management
Program Manager
It Dept
Engineering
Requirements
Procurement
SYSTEM INTEGRATOR
Strategicbusiness relationships
Capabilities
Source selection requirements order placement
IT Solutions training amp Implementation plans amp technical requirements
Coordinated methods procedures amp solutions
-Common technical databases amp tools-Integrated product teams (IPTs)-Technical data exchange-Flowdown of key characteristics-Configuration control-Engineering change process management
Source Adapted from William R Neill ldquoDesign Chain Engineering Implementing Integrated Supply Chain ProductDevelopment ldquoPresentation at an MIT Workshop(06241999)
General Management
Customer Liaison Manager
It Dept
Engineering
Deborah Nightingale - 4 copy 2002 Massachusetts Institute of Technology
Early Supplier Integration Results in Significant Benefits through Architectural Innovation
ARCHITECTURAL INNOVATIONMajor modification of how components in a systemproduct are linked together bull Significant improvement in systemproduct architecture through changes in formstructurefunctional interfaces or system configuration bull Knowledge integration over the supplier network (value stream perspective prime-key suppliers- subtiers tapping supplier technology base)
ldquoOld Approach ldquoCurrentrdquoLean
ldquoEmergingrdquoLean
Rigid verticalFFF interfaces
And control
Prime
Key Suppliers
Subtiers
Prime
Subtiers
Key Suppliers
Collaborative with rigidorganizational
interfaces
Prime
Subtiers
Key Suppliers
Virtual Teamwo boundaries
Armrsquos length interfaces totally defined and controlled
Collaborative but constrained by priorworksharearrangements
Collaborative and seamlessly I integrated architectural innovation
Deborah Nightingale - 5 copy 2002 Massachusetts Institute of Technology
Observations on Architectural Integration Approaches
bull Senior leadership plays a pivotal role by enabling lifecycle analysis and integration of multiple enterprise perspectives 1048599
bull Much of the challenge may be organizational rather than technical 1048599
bull Portfolio strategies and processes are necessary to obtain full benefits 1048599
bull Metrics and incentives that measure and reward lifecycle value creation a key enabler 1048599
bull Customer enterprise structure and demand determine applicability of this approach
Deborah Nightingale - 6 copy 2002 Massachusetts Institute of Technology
Influence Standards when Key Stakeholders Lie outside Direct Hierarchical Control
bull Standards allow decentralize collective action across enterprise boundaries
bull With limited control over stakeholders and product design emphasis shifts to ldquocontrol pointsrdquo in product architecture
bull Standards foster innovation in the supply base by enabling modular decoupled designs
bull Standards are often a strategic battleground-high-stakes winner-take-all contests encourage some enterprises to push proprietary standards at the expense of a broader spectrum of stakeholders
bull Several models of collaborative forums exist that successfully develop open standards
Deborah Nightingale - 7 copy 2002 Massachusetts Institute of Technology
Common Large Area Display Illustrates the Value Delivered through the Creation and Use of Standards
bull 500 displays for AWACs - But 15000 displays for DoD
bull Standardized on commercial display for all of DoD - 60 less weight
- 90 less maintenance cost
- 11 fold increase in MTBF
- 30 power reduction
- Better resolution
bull Up to $100M in DoD savings
Deborah Nightingale - 8 copy 2002 Massachusetts Institute of Technology
Observations on Using Standards to Achieve Enterprise Integration
bull Important to establish neutral forum of broker to define standards that prevent bias towards one solution
bull Use open architecture where possiblebull Consider technology clockspeed look to industries or
sectors that more closely match that of the system in question
bull Establish a common syntax to facilitate knowledge sharing
Deborah Nightingale - 9 copy 2002 Massachusetts Institute of Technology
Information Technology is Vital to Enterprise Integration Lean
bull Virtual Enterprise System (VES) provides the backbone for the digital design and manufacturing environment
bull All product data available real-time worldwide
bull Enables collaborative development
Customers Other Partners amp Suppliers
Lockheed Martin Ft Worth TX BAES
Samlesbury UK
Northrop Grumman
EI Segundo CA
NGC Database ldquomirrorrdquo
Master Database BAES Database ldquomirrorrdquo
Adapted from Burbage T Lockheed Martin ldquoJSF-A Winning Environmentrdquo Presentation at MIT March 6 2002
Deborah Nightingale - 10 copy 2002 Massachusetts Institute of Technology
Enterprise Process Architecture
Process
standardization is a key enterprise strategy
Life Cycle Processesmiddot Business Acquisition and Program Managementmiddot Requirements Definitionmiddot ProductProcess Developmentmiddot Supply Chain Managementmiddot Productionmiddot Distribution and Support
Enabling Infrastructure Processesmiddot Financemiddot Information Technologymiddot Human Resourcesmiddot Quality Assurancemiddot Facilities and Servicesmiddot Environment Health and Safety
Enterprise Leadership Processesmiddot Strategic Planningmiddot Business Modelsmiddot Managing Business Growthmiddot Strategic Partneringmiddot Organizational Structure and Integrationmiddot Transformation Management
Deborah Nightingale - 11 copy 2002 Massachusetts Institute of Technology
Integrated Systems Operating Concept
Market-Focused IPTs
Shared Services
Common Systems
Lean Shop Floor amp Above
Optimized Assets amp Technology Deployment
Leadership Culture
Airborne GroundSurveil amp BattleMgmt Systems
Airborne EarlyWarning amp ElectWarfare Systems
Air CombatSystems
HumanResources amp
Admin
TransactionAccountingInformation
Services
Sector HQStaff
Functions
HumanResources
Procurement
Payroll
Finance
Define ValueMap Value
Stream
EstablishFlow
ImplementPull
Strive forPerfection
RationalizedAssets
SharedCenters ofExcellence
DistributedProduct-Specific
Capabilities
JointSynergyPrograms
ShareholderValue
Education
IncentivizedMgmt Perf
WeightedFinancial
Goals
MeasuringUnderpiningST amp LT
Actions
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
Source Cool C Northrop Grumman ldquoJourney to a Lean Enterpriserdquo Presentation at MIT Oct 31 2001
Deborah Nightingale - 12 copy 2002 Massachusetts Institute of Technology
Simple Financial Metrics can Misrepresent theValue of Enterprise ldquoInfrastructurerdquo Investments
bull Research found that a military customer valued systems engineering analyses enough to pay for them in a military program but corporate would not in a comparable commercial program
bull Spacecraft testing research also showed commercial programs more likely to have infrastructure-related failures 1048599
bull Financial results-based decisions may inhibit capabilities development that pays dividends in the long-term
Deborah Nightingale - 13 copy 2002 Massachusetts Institute of Technology
Parallels In Building Products and Enterprises
CUSTOMER REQUIRES Capability Affordability Responsiveness
PRODUCT ENTERPRISE
bull Efficiency bull Fitness
BALANCE
bull Performance
bull ldquoIlitiesrdquo
Multiple Products Services Different Life Cycle Phases
bullProcesses bullToolsTools bullSkillsSkills bullEtcEtc
PRODUCT DEFINITION F-22 Definition Data Package
PRODUCT F-22 Tail 5005
ENTERPRISE LM Aero ndash the Company
ENTERPRISE DEFINITION Enterprise Architecture
DESIGN METHODOLOGY Systems Engineering
DESIGN METHODOLOGY ldquoEnterprise Engineeringrdquo
ACHIEVING MULTIPLE REQUIREMENTS
TAKES BOTH Soure Kessler LockheedMartin 2001
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
-
Deborah Nightingale - 2 copy 2002 Massachusetts Institute of Technology
Timeline of Commonality Benefits Illustrates Linkage to Multi-Stakeholder Enterprises
Designreuse
Shared development cost
Reduced rework
Reduced tooling
Reduced cycle time
Higher productivity
Reduced spares inventory
Higher spares availability
Reduced complexity in supply
Greater interoperability
Higher reliability
Reduced downtime
Fewer maintenance hours
Lower risk
Reduced time for source selection
Faster solutions to problems
Reduced testing
Process reuse
Economies of scale
Reduced inventory
Reduced training equipment
Reduced support equipment
Reduce training time
Reduced documentation
Increased operator competency
Reduced DMS
Deborah Nightingale - 3 copy 2002 Massachusetts Institute of Technology
System Integrator-Supplier Communications Involve Interactions at Different Levels
General Management
Program Manager
It Dept
Engineering
Requirements
Procurement
SYSTEM INTEGRATOR
Strategicbusiness relationships
Capabilities
Source selection requirements order placement
IT Solutions training amp Implementation plans amp technical requirements
Coordinated methods procedures amp solutions
-Common technical databases amp tools-Integrated product teams (IPTs)-Technical data exchange-Flowdown of key characteristics-Configuration control-Engineering change process management
Source Adapted from William R Neill ldquoDesign Chain Engineering Implementing Integrated Supply Chain ProductDevelopment ldquoPresentation at an MIT Workshop(06241999)
General Management
Customer Liaison Manager
It Dept
Engineering
Deborah Nightingale - 4 copy 2002 Massachusetts Institute of Technology
Early Supplier Integration Results in Significant Benefits through Architectural Innovation
ARCHITECTURAL INNOVATIONMajor modification of how components in a systemproduct are linked together bull Significant improvement in systemproduct architecture through changes in formstructurefunctional interfaces or system configuration bull Knowledge integration over the supplier network (value stream perspective prime-key suppliers- subtiers tapping supplier technology base)
ldquoOld Approach ldquoCurrentrdquoLean
ldquoEmergingrdquoLean
Rigid verticalFFF interfaces
And control
Prime
Key Suppliers
Subtiers
Prime
Subtiers
Key Suppliers
Collaborative with rigidorganizational
interfaces
Prime
Subtiers
Key Suppliers
Virtual Teamwo boundaries
Armrsquos length interfaces totally defined and controlled
Collaborative but constrained by priorworksharearrangements
Collaborative and seamlessly I integrated architectural innovation
Deborah Nightingale - 5 copy 2002 Massachusetts Institute of Technology
Observations on Architectural Integration Approaches
bull Senior leadership plays a pivotal role by enabling lifecycle analysis and integration of multiple enterprise perspectives 1048599
bull Much of the challenge may be organizational rather than technical 1048599
bull Portfolio strategies and processes are necessary to obtain full benefits 1048599
bull Metrics and incentives that measure and reward lifecycle value creation a key enabler 1048599
bull Customer enterprise structure and demand determine applicability of this approach
Deborah Nightingale - 6 copy 2002 Massachusetts Institute of Technology
Influence Standards when Key Stakeholders Lie outside Direct Hierarchical Control
bull Standards allow decentralize collective action across enterprise boundaries
bull With limited control over stakeholders and product design emphasis shifts to ldquocontrol pointsrdquo in product architecture
bull Standards foster innovation in the supply base by enabling modular decoupled designs
bull Standards are often a strategic battleground-high-stakes winner-take-all contests encourage some enterprises to push proprietary standards at the expense of a broader spectrum of stakeholders
bull Several models of collaborative forums exist that successfully develop open standards
Deborah Nightingale - 7 copy 2002 Massachusetts Institute of Technology
Common Large Area Display Illustrates the Value Delivered through the Creation and Use of Standards
bull 500 displays for AWACs - But 15000 displays for DoD
bull Standardized on commercial display for all of DoD - 60 less weight
- 90 less maintenance cost
- 11 fold increase in MTBF
- 30 power reduction
- Better resolution
bull Up to $100M in DoD savings
Deborah Nightingale - 8 copy 2002 Massachusetts Institute of Technology
Observations on Using Standards to Achieve Enterprise Integration
bull Important to establish neutral forum of broker to define standards that prevent bias towards one solution
bull Use open architecture where possiblebull Consider technology clockspeed look to industries or
sectors that more closely match that of the system in question
bull Establish a common syntax to facilitate knowledge sharing
Deborah Nightingale - 9 copy 2002 Massachusetts Institute of Technology
Information Technology is Vital to Enterprise Integration Lean
bull Virtual Enterprise System (VES) provides the backbone for the digital design and manufacturing environment
bull All product data available real-time worldwide
bull Enables collaborative development
Customers Other Partners amp Suppliers
Lockheed Martin Ft Worth TX BAES
Samlesbury UK
Northrop Grumman
EI Segundo CA
NGC Database ldquomirrorrdquo
Master Database BAES Database ldquomirrorrdquo
Adapted from Burbage T Lockheed Martin ldquoJSF-A Winning Environmentrdquo Presentation at MIT March 6 2002
Deborah Nightingale - 10 copy 2002 Massachusetts Institute of Technology
Enterprise Process Architecture
Process
standardization is a key enterprise strategy
Life Cycle Processesmiddot Business Acquisition and Program Managementmiddot Requirements Definitionmiddot ProductProcess Developmentmiddot Supply Chain Managementmiddot Productionmiddot Distribution and Support
Enabling Infrastructure Processesmiddot Financemiddot Information Technologymiddot Human Resourcesmiddot Quality Assurancemiddot Facilities and Servicesmiddot Environment Health and Safety
Enterprise Leadership Processesmiddot Strategic Planningmiddot Business Modelsmiddot Managing Business Growthmiddot Strategic Partneringmiddot Organizational Structure and Integrationmiddot Transformation Management
Deborah Nightingale - 11 copy 2002 Massachusetts Institute of Technology
Integrated Systems Operating Concept
Market-Focused IPTs
Shared Services
Common Systems
Lean Shop Floor amp Above
Optimized Assets amp Technology Deployment
Leadership Culture
Airborne GroundSurveil amp BattleMgmt Systems
Airborne EarlyWarning amp ElectWarfare Systems
Air CombatSystems
HumanResources amp
Admin
TransactionAccountingInformation
Services
Sector HQStaff
Functions
HumanResources
Procurement
Payroll
Finance
Define ValueMap Value
Stream
EstablishFlow
ImplementPull
Strive forPerfection
RationalizedAssets
SharedCenters ofExcellence
DistributedProduct-Specific
Capabilities
JointSynergyPrograms
ShareholderValue
Education
IncentivizedMgmt Perf
WeightedFinancial
Goals
MeasuringUnderpiningST amp LT
Actions
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
Source Cool C Northrop Grumman ldquoJourney to a Lean Enterpriserdquo Presentation at MIT Oct 31 2001
Deborah Nightingale - 12 copy 2002 Massachusetts Institute of Technology
Simple Financial Metrics can Misrepresent theValue of Enterprise ldquoInfrastructurerdquo Investments
bull Research found that a military customer valued systems engineering analyses enough to pay for them in a military program but corporate would not in a comparable commercial program
bull Spacecraft testing research also showed commercial programs more likely to have infrastructure-related failures 1048599
bull Financial results-based decisions may inhibit capabilities development that pays dividends in the long-term
Deborah Nightingale - 13 copy 2002 Massachusetts Institute of Technology
Parallels In Building Products and Enterprises
CUSTOMER REQUIRES Capability Affordability Responsiveness
PRODUCT ENTERPRISE
bull Efficiency bull Fitness
BALANCE
bull Performance
bull ldquoIlitiesrdquo
Multiple Products Services Different Life Cycle Phases
bullProcesses bullToolsTools bullSkillsSkills bullEtcEtc
PRODUCT DEFINITION F-22 Definition Data Package
PRODUCT F-22 Tail 5005
ENTERPRISE LM Aero ndash the Company
ENTERPRISE DEFINITION Enterprise Architecture
DESIGN METHODOLOGY Systems Engineering
DESIGN METHODOLOGY ldquoEnterprise Engineeringrdquo
ACHIEVING MULTIPLE REQUIREMENTS
TAKES BOTH Soure Kessler LockheedMartin 2001
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
-
Deborah Nightingale - 3 copy 2002 Massachusetts Institute of Technology
System Integrator-Supplier Communications Involve Interactions at Different Levels
General Management
Program Manager
It Dept
Engineering
Requirements
Procurement
SYSTEM INTEGRATOR
Strategicbusiness relationships
Capabilities
Source selection requirements order placement
IT Solutions training amp Implementation plans amp technical requirements
Coordinated methods procedures amp solutions
-Common technical databases amp tools-Integrated product teams (IPTs)-Technical data exchange-Flowdown of key characteristics-Configuration control-Engineering change process management
Source Adapted from William R Neill ldquoDesign Chain Engineering Implementing Integrated Supply Chain ProductDevelopment ldquoPresentation at an MIT Workshop(06241999)
General Management
Customer Liaison Manager
It Dept
Engineering
Deborah Nightingale - 4 copy 2002 Massachusetts Institute of Technology
Early Supplier Integration Results in Significant Benefits through Architectural Innovation
ARCHITECTURAL INNOVATIONMajor modification of how components in a systemproduct are linked together bull Significant improvement in systemproduct architecture through changes in formstructurefunctional interfaces or system configuration bull Knowledge integration over the supplier network (value stream perspective prime-key suppliers- subtiers tapping supplier technology base)
ldquoOld Approach ldquoCurrentrdquoLean
ldquoEmergingrdquoLean
Rigid verticalFFF interfaces
And control
Prime
Key Suppliers
Subtiers
Prime
Subtiers
Key Suppliers
Collaborative with rigidorganizational
interfaces
Prime
Subtiers
Key Suppliers
Virtual Teamwo boundaries
Armrsquos length interfaces totally defined and controlled
Collaborative but constrained by priorworksharearrangements
Collaborative and seamlessly I integrated architectural innovation
Deborah Nightingale - 5 copy 2002 Massachusetts Institute of Technology
Observations on Architectural Integration Approaches
bull Senior leadership plays a pivotal role by enabling lifecycle analysis and integration of multiple enterprise perspectives 1048599
bull Much of the challenge may be organizational rather than technical 1048599
bull Portfolio strategies and processes are necessary to obtain full benefits 1048599
bull Metrics and incentives that measure and reward lifecycle value creation a key enabler 1048599
bull Customer enterprise structure and demand determine applicability of this approach
Deborah Nightingale - 6 copy 2002 Massachusetts Institute of Technology
Influence Standards when Key Stakeholders Lie outside Direct Hierarchical Control
bull Standards allow decentralize collective action across enterprise boundaries
bull With limited control over stakeholders and product design emphasis shifts to ldquocontrol pointsrdquo in product architecture
bull Standards foster innovation in the supply base by enabling modular decoupled designs
bull Standards are often a strategic battleground-high-stakes winner-take-all contests encourage some enterprises to push proprietary standards at the expense of a broader spectrum of stakeholders
bull Several models of collaborative forums exist that successfully develop open standards
Deborah Nightingale - 7 copy 2002 Massachusetts Institute of Technology
Common Large Area Display Illustrates the Value Delivered through the Creation and Use of Standards
bull 500 displays for AWACs - But 15000 displays for DoD
bull Standardized on commercial display for all of DoD - 60 less weight
- 90 less maintenance cost
- 11 fold increase in MTBF
- 30 power reduction
- Better resolution
bull Up to $100M in DoD savings
Deborah Nightingale - 8 copy 2002 Massachusetts Institute of Technology
Observations on Using Standards to Achieve Enterprise Integration
bull Important to establish neutral forum of broker to define standards that prevent bias towards one solution
bull Use open architecture where possiblebull Consider technology clockspeed look to industries or
sectors that more closely match that of the system in question
bull Establish a common syntax to facilitate knowledge sharing
Deborah Nightingale - 9 copy 2002 Massachusetts Institute of Technology
Information Technology is Vital to Enterprise Integration Lean
bull Virtual Enterprise System (VES) provides the backbone for the digital design and manufacturing environment
bull All product data available real-time worldwide
bull Enables collaborative development
Customers Other Partners amp Suppliers
Lockheed Martin Ft Worth TX BAES
Samlesbury UK
Northrop Grumman
EI Segundo CA
NGC Database ldquomirrorrdquo
Master Database BAES Database ldquomirrorrdquo
Adapted from Burbage T Lockheed Martin ldquoJSF-A Winning Environmentrdquo Presentation at MIT March 6 2002
Deborah Nightingale - 10 copy 2002 Massachusetts Institute of Technology
Enterprise Process Architecture
Process
standardization is a key enterprise strategy
Life Cycle Processesmiddot Business Acquisition and Program Managementmiddot Requirements Definitionmiddot ProductProcess Developmentmiddot Supply Chain Managementmiddot Productionmiddot Distribution and Support
Enabling Infrastructure Processesmiddot Financemiddot Information Technologymiddot Human Resourcesmiddot Quality Assurancemiddot Facilities and Servicesmiddot Environment Health and Safety
Enterprise Leadership Processesmiddot Strategic Planningmiddot Business Modelsmiddot Managing Business Growthmiddot Strategic Partneringmiddot Organizational Structure and Integrationmiddot Transformation Management
Deborah Nightingale - 11 copy 2002 Massachusetts Institute of Technology
Integrated Systems Operating Concept
Market-Focused IPTs
Shared Services
Common Systems
Lean Shop Floor amp Above
Optimized Assets amp Technology Deployment
Leadership Culture
Airborne GroundSurveil amp BattleMgmt Systems
Airborne EarlyWarning amp ElectWarfare Systems
Air CombatSystems
HumanResources amp
Admin
TransactionAccountingInformation
Services
Sector HQStaff
Functions
HumanResources
Procurement
Payroll
Finance
Define ValueMap Value
Stream
EstablishFlow
ImplementPull
Strive forPerfection
RationalizedAssets
SharedCenters ofExcellence
DistributedProduct-Specific
Capabilities
JointSynergyPrograms
ShareholderValue
Education
IncentivizedMgmt Perf
WeightedFinancial
Goals
MeasuringUnderpiningST amp LT
Actions
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
Source Cool C Northrop Grumman ldquoJourney to a Lean Enterpriserdquo Presentation at MIT Oct 31 2001
Deborah Nightingale - 12 copy 2002 Massachusetts Institute of Technology
Simple Financial Metrics can Misrepresent theValue of Enterprise ldquoInfrastructurerdquo Investments
bull Research found that a military customer valued systems engineering analyses enough to pay for them in a military program but corporate would not in a comparable commercial program
bull Spacecraft testing research also showed commercial programs more likely to have infrastructure-related failures 1048599
bull Financial results-based decisions may inhibit capabilities development that pays dividends in the long-term
Deborah Nightingale - 13 copy 2002 Massachusetts Institute of Technology
Parallels In Building Products and Enterprises
CUSTOMER REQUIRES Capability Affordability Responsiveness
PRODUCT ENTERPRISE
bull Efficiency bull Fitness
BALANCE
bull Performance
bull ldquoIlitiesrdquo
Multiple Products Services Different Life Cycle Phases
bullProcesses bullToolsTools bullSkillsSkills bullEtcEtc
PRODUCT DEFINITION F-22 Definition Data Package
PRODUCT F-22 Tail 5005
ENTERPRISE LM Aero ndash the Company
ENTERPRISE DEFINITION Enterprise Architecture
DESIGN METHODOLOGY Systems Engineering
DESIGN METHODOLOGY ldquoEnterprise Engineeringrdquo
ACHIEVING MULTIPLE REQUIREMENTS
TAKES BOTH Soure Kessler LockheedMartin 2001
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
-
Deborah Nightingale - 4 copy 2002 Massachusetts Institute of Technology
Early Supplier Integration Results in Significant Benefits through Architectural Innovation
ARCHITECTURAL INNOVATIONMajor modification of how components in a systemproduct are linked together bull Significant improvement in systemproduct architecture through changes in formstructurefunctional interfaces or system configuration bull Knowledge integration over the supplier network (value stream perspective prime-key suppliers- subtiers tapping supplier technology base)
ldquoOld Approach ldquoCurrentrdquoLean
ldquoEmergingrdquoLean
Rigid verticalFFF interfaces
And control
Prime
Key Suppliers
Subtiers
Prime
Subtiers
Key Suppliers
Collaborative with rigidorganizational
interfaces
Prime
Subtiers
Key Suppliers
Virtual Teamwo boundaries
Armrsquos length interfaces totally defined and controlled
Collaborative but constrained by priorworksharearrangements
Collaborative and seamlessly I integrated architectural innovation
Deborah Nightingale - 5 copy 2002 Massachusetts Institute of Technology
Observations on Architectural Integration Approaches
bull Senior leadership plays a pivotal role by enabling lifecycle analysis and integration of multiple enterprise perspectives 1048599
bull Much of the challenge may be organizational rather than technical 1048599
bull Portfolio strategies and processes are necessary to obtain full benefits 1048599
bull Metrics and incentives that measure and reward lifecycle value creation a key enabler 1048599
bull Customer enterprise structure and demand determine applicability of this approach
Deborah Nightingale - 6 copy 2002 Massachusetts Institute of Technology
Influence Standards when Key Stakeholders Lie outside Direct Hierarchical Control
bull Standards allow decentralize collective action across enterprise boundaries
bull With limited control over stakeholders and product design emphasis shifts to ldquocontrol pointsrdquo in product architecture
bull Standards foster innovation in the supply base by enabling modular decoupled designs
bull Standards are often a strategic battleground-high-stakes winner-take-all contests encourage some enterprises to push proprietary standards at the expense of a broader spectrum of stakeholders
bull Several models of collaborative forums exist that successfully develop open standards
Deborah Nightingale - 7 copy 2002 Massachusetts Institute of Technology
Common Large Area Display Illustrates the Value Delivered through the Creation and Use of Standards
bull 500 displays for AWACs - But 15000 displays for DoD
bull Standardized on commercial display for all of DoD - 60 less weight
- 90 less maintenance cost
- 11 fold increase in MTBF
- 30 power reduction
- Better resolution
bull Up to $100M in DoD savings
Deborah Nightingale - 8 copy 2002 Massachusetts Institute of Technology
Observations on Using Standards to Achieve Enterprise Integration
bull Important to establish neutral forum of broker to define standards that prevent bias towards one solution
bull Use open architecture where possiblebull Consider technology clockspeed look to industries or
sectors that more closely match that of the system in question
bull Establish a common syntax to facilitate knowledge sharing
Deborah Nightingale - 9 copy 2002 Massachusetts Institute of Technology
Information Technology is Vital to Enterprise Integration Lean
bull Virtual Enterprise System (VES) provides the backbone for the digital design and manufacturing environment
bull All product data available real-time worldwide
bull Enables collaborative development
Customers Other Partners amp Suppliers
Lockheed Martin Ft Worth TX BAES
Samlesbury UK
Northrop Grumman
EI Segundo CA
NGC Database ldquomirrorrdquo
Master Database BAES Database ldquomirrorrdquo
Adapted from Burbage T Lockheed Martin ldquoJSF-A Winning Environmentrdquo Presentation at MIT March 6 2002
Deborah Nightingale - 10 copy 2002 Massachusetts Institute of Technology
Enterprise Process Architecture
Process
standardization is a key enterprise strategy
Life Cycle Processesmiddot Business Acquisition and Program Managementmiddot Requirements Definitionmiddot ProductProcess Developmentmiddot Supply Chain Managementmiddot Productionmiddot Distribution and Support
Enabling Infrastructure Processesmiddot Financemiddot Information Technologymiddot Human Resourcesmiddot Quality Assurancemiddot Facilities and Servicesmiddot Environment Health and Safety
Enterprise Leadership Processesmiddot Strategic Planningmiddot Business Modelsmiddot Managing Business Growthmiddot Strategic Partneringmiddot Organizational Structure and Integrationmiddot Transformation Management
Deborah Nightingale - 11 copy 2002 Massachusetts Institute of Technology
Integrated Systems Operating Concept
Market-Focused IPTs
Shared Services
Common Systems
Lean Shop Floor amp Above
Optimized Assets amp Technology Deployment
Leadership Culture
Airborne GroundSurveil amp BattleMgmt Systems
Airborne EarlyWarning amp ElectWarfare Systems
Air CombatSystems
HumanResources amp
Admin
TransactionAccountingInformation
Services
Sector HQStaff
Functions
HumanResources
Procurement
Payroll
Finance
Define ValueMap Value
Stream
EstablishFlow
ImplementPull
Strive forPerfection
RationalizedAssets
SharedCenters ofExcellence
DistributedProduct-Specific
Capabilities
JointSynergyPrograms
ShareholderValue
Education
IncentivizedMgmt Perf
WeightedFinancial
Goals
MeasuringUnderpiningST amp LT
Actions
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
Source Cool C Northrop Grumman ldquoJourney to a Lean Enterpriserdquo Presentation at MIT Oct 31 2001
Deborah Nightingale - 12 copy 2002 Massachusetts Institute of Technology
Simple Financial Metrics can Misrepresent theValue of Enterprise ldquoInfrastructurerdquo Investments
bull Research found that a military customer valued systems engineering analyses enough to pay for them in a military program but corporate would not in a comparable commercial program
bull Spacecraft testing research also showed commercial programs more likely to have infrastructure-related failures 1048599
bull Financial results-based decisions may inhibit capabilities development that pays dividends in the long-term
Deborah Nightingale - 13 copy 2002 Massachusetts Institute of Technology
Parallels In Building Products and Enterprises
CUSTOMER REQUIRES Capability Affordability Responsiveness
PRODUCT ENTERPRISE
bull Efficiency bull Fitness
BALANCE
bull Performance
bull ldquoIlitiesrdquo
Multiple Products Services Different Life Cycle Phases
bullProcesses bullToolsTools bullSkillsSkills bullEtcEtc
PRODUCT DEFINITION F-22 Definition Data Package
PRODUCT F-22 Tail 5005
ENTERPRISE LM Aero ndash the Company
ENTERPRISE DEFINITION Enterprise Architecture
DESIGN METHODOLOGY Systems Engineering
DESIGN METHODOLOGY ldquoEnterprise Engineeringrdquo
ACHIEVING MULTIPLE REQUIREMENTS
TAKES BOTH Soure Kessler LockheedMartin 2001
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
-
Deborah Nightingale - 5 copy 2002 Massachusetts Institute of Technology
Observations on Architectural Integration Approaches
bull Senior leadership plays a pivotal role by enabling lifecycle analysis and integration of multiple enterprise perspectives 1048599
bull Much of the challenge may be organizational rather than technical 1048599
bull Portfolio strategies and processes are necessary to obtain full benefits 1048599
bull Metrics and incentives that measure and reward lifecycle value creation a key enabler 1048599
bull Customer enterprise structure and demand determine applicability of this approach
Deborah Nightingale - 6 copy 2002 Massachusetts Institute of Technology
Influence Standards when Key Stakeholders Lie outside Direct Hierarchical Control
bull Standards allow decentralize collective action across enterprise boundaries
bull With limited control over stakeholders and product design emphasis shifts to ldquocontrol pointsrdquo in product architecture
bull Standards foster innovation in the supply base by enabling modular decoupled designs
bull Standards are often a strategic battleground-high-stakes winner-take-all contests encourage some enterprises to push proprietary standards at the expense of a broader spectrum of stakeholders
bull Several models of collaborative forums exist that successfully develop open standards
Deborah Nightingale - 7 copy 2002 Massachusetts Institute of Technology
Common Large Area Display Illustrates the Value Delivered through the Creation and Use of Standards
bull 500 displays for AWACs - But 15000 displays for DoD
bull Standardized on commercial display for all of DoD - 60 less weight
- 90 less maintenance cost
- 11 fold increase in MTBF
- 30 power reduction
- Better resolution
bull Up to $100M in DoD savings
Deborah Nightingale - 8 copy 2002 Massachusetts Institute of Technology
Observations on Using Standards to Achieve Enterprise Integration
bull Important to establish neutral forum of broker to define standards that prevent bias towards one solution
bull Use open architecture where possiblebull Consider technology clockspeed look to industries or
sectors that more closely match that of the system in question
bull Establish a common syntax to facilitate knowledge sharing
Deborah Nightingale - 9 copy 2002 Massachusetts Institute of Technology
Information Technology is Vital to Enterprise Integration Lean
bull Virtual Enterprise System (VES) provides the backbone for the digital design and manufacturing environment
bull All product data available real-time worldwide
bull Enables collaborative development
Customers Other Partners amp Suppliers
Lockheed Martin Ft Worth TX BAES
Samlesbury UK
Northrop Grumman
EI Segundo CA
NGC Database ldquomirrorrdquo
Master Database BAES Database ldquomirrorrdquo
Adapted from Burbage T Lockheed Martin ldquoJSF-A Winning Environmentrdquo Presentation at MIT March 6 2002
Deborah Nightingale - 10 copy 2002 Massachusetts Institute of Technology
Enterprise Process Architecture
Process
standardization is a key enterprise strategy
Life Cycle Processesmiddot Business Acquisition and Program Managementmiddot Requirements Definitionmiddot ProductProcess Developmentmiddot Supply Chain Managementmiddot Productionmiddot Distribution and Support
Enabling Infrastructure Processesmiddot Financemiddot Information Technologymiddot Human Resourcesmiddot Quality Assurancemiddot Facilities and Servicesmiddot Environment Health and Safety
Enterprise Leadership Processesmiddot Strategic Planningmiddot Business Modelsmiddot Managing Business Growthmiddot Strategic Partneringmiddot Organizational Structure and Integrationmiddot Transformation Management
Deborah Nightingale - 11 copy 2002 Massachusetts Institute of Technology
Integrated Systems Operating Concept
Market-Focused IPTs
Shared Services
Common Systems
Lean Shop Floor amp Above
Optimized Assets amp Technology Deployment
Leadership Culture
Airborne GroundSurveil amp BattleMgmt Systems
Airborne EarlyWarning amp ElectWarfare Systems
Air CombatSystems
HumanResources amp
Admin
TransactionAccountingInformation
Services
Sector HQStaff
Functions
HumanResources
Procurement
Payroll
Finance
Define ValueMap Value
Stream
EstablishFlow
ImplementPull
Strive forPerfection
RationalizedAssets
SharedCenters ofExcellence
DistributedProduct-Specific
Capabilities
JointSynergyPrograms
ShareholderValue
Education
IncentivizedMgmt Perf
WeightedFinancial
Goals
MeasuringUnderpiningST amp LT
Actions
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
Source Cool C Northrop Grumman ldquoJourney to a Lean Enterpriserdquo Presentation at MIT Oct 31 2001
Deborah Nightingale - 12 copy 2002 Massachusetts Institute of Technology
Simple Financial Metrics can Misrepresent theValue of Enterprise ldquoInfrastructurerdquo Investments
bull Research found that a military customer valued systems engineering analyses enough to pay for them in a military program but corporate would not in a comparable commercial program
bull Spacecraft testing research also showed commercial programs more likely to have infrastructure-related failures 1048599
bull Financial results-based decisions may inhibit capabilities development that pays dividends in the long-term
Deborah Nightingale - 13 copy 2002 Massachusetts Institute of Technology
Parallels In Building Products and Enterprises
CUSTOMER REQUIRES Capability Affordability Responsiveness
PRODUCT ENTERPRISE
bull Efficiency bull Fitness
BALANCE
bull Performance
bull ldquoIlitiesrdquo
Multiple Products Services Different Life Cycle Phases
bullProcesses bullToolsTools bullSkillsSkills bullEtcEtc
PRODUCT DEFINITION F-22 Definition Data Package
PRODUCT F-22 Tail 5005
ENTERPRISE LM Aero ndash the Company
ENTERPRISE DEFINITION Enterprise Architecture
DESIGN METHODOLOGY Systems Engineering
DESIGN METHODOLOGY ldquoEnterprise Engineeringrdquo
ACHIEVING MULTIPLE REQUIREMENTS
TAKES BOTH Soure Kessler LockheedMartin 2001
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
-
Deborah Nightingale - 6 copy 2002 Massachusetts Institute of Technology
Influence Standards when Key Stakeholders Lie outside Direct Hierarchical Control
bull Standards allow decentralize collective action across enterprise boundaries
bull With limited control over stakeholders and product design emphasis shifts to ldquocontrol pointsrdquo in product architecture
bull Standards foster innovation in the supply base by enabling modular decoupled designs
bull Standards are often a strategic battleground-high-stakes winner-take-all contests encourage some enterprises to push proprietary standards at the expense of a broader spectrum of stakeholders
bull Several models of collaborative forums exist that successfully develop open standards
Deborah Nightingale - 7 copy 2002 Massachusetts Institute of Technology
Common Large Area Display Illustrates the Value Delivered through the Creation and Use of Standards
bull 500 displays for AWACs - But 15000 displays for DoD
bull Standardized on commercial display for all of DoD - 60 less weight
- 90 less maintenance cost
- 11 fold increase in MTBF
- 30 power reduction
- Better resolution
bull Up to $100M in DoD savings
Deborah Nightingale - 8 copy 2002 Massachusetts Institute of Technology
Observations on Using Standards to Achieve Enterprise Integration
bull Important to establish neutral forum of broker to define standards that prevent bias towards one solution
bull Use open architecture where possiblebull Consider technology clockspeed look to industries or
sectors that more closely match that of the system in question
bull Establish a common syntax to facilitate knowledge sharing
Deborah Nightingale - 9 copy 2002 Massachusetts Institute of Technology
Information Technology is Vital to Enterprise Integration Lean
bull Virtual Enterprise System (VES) provides the backbone for the digital design and manufacturing environment
bull All product data available real-time worldwide
bull Enables collaborative development
Customers Other Partners amp Suppliers
Lockheed Martin Ft Worth TX BAES
Samlesbury UK
Northrop Grumman
EI Segundo CA
NGC Database ldquomirrorrdquo
Master Database BAES Database ldquomirrorrdquo
Adapted from Burbage T Lockheed Martin ldquoJSF-A Winning Environmentrdquo Presentation at MIT March 6 2002
Deborah Nightingale - 10 copy 2002 Massachusetts Institute of Technology
Enterprise Process Architecture
Process
standardization is a key enterprise strategy
Life Cycle Processesmiddot Business Acquisition and Program Managementmiddot Requirements Definitionmiddot ProductProcess Developmentmiddot Supply Chain Managementmiddot Productionmiddot Distribution and Support
Enabling Infrastructure Processesmiddot Financemiddot Information Technologymiddot Human Resourcesmiddot Quality Assurancemiddot Facilities and Servicesmiddot Environment Health and Safety
Enterprise Leadership Processesmiddot Strategic Planningmiddot Business Modelsmiddot Managing Business Growthmiddot Strategic Partneringmiddot Organizational Structure and Integrationmiddot Transformation Management
Deborah Nightingale - 11 copy 2002 Massachusetts Institute of Technology
Integrated Systems Operating Concept
Market-Focused IPTs
Shared Services
Common Systems
Lean Shop Floor amp Above
Optimized Assets amp Technology Deployment
Leadership Culture
Airborne GroundSurveil amp BattleMgmt Systems
Airborne EarlyWarning amp ElectWarfare Systems
Air CombatSystems
HumanResources amp
Admin
TransactionAccountingInformation
Services
Sector HQStaff
Functions
HumanResources
Procurement
Payroll
Finance
Define ValueMap Value
Stream
EstablishFlow
ImplementPull
Strive forPerfection
RationalizedAssets
SharedCenters ofExcellence
DistributedProduct-Specific
Capabilities
JointSynergyPrograms
ShareholderValue
Education
IncentivizedMgmt Perf
WeightedFinancial
Goals
MeasuringUnderpiningST amp LT
Actions
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
Source Cool C Northrop Grumman ldquoJourney to a Lean Enterpriserdquo Presentation at MIT Oct 31 2001
Deborah Nightingale - 12 copy 2002 Massachusetts Institute of Technology
Simple Financial Metrics can Misrepresent theValue of Enterprise ldquoInfrastructurerdquo Investments
bull Research found that a military customer valued systems engineering analyses enough to pay for them in a military program but corporate would not in a comparable commercial program
bull Spacecraft testing research also showed commercial programs more likely to have infrastructure-related failures 1048599
bull Financial results-based decisions may inhibit capabilities development that pays dividends in the long-term
Deborah Nightingale - 13 copy 2002 Massachusetts Institute of Technology
Parallels In Building Products and Enterprises
CUSTOMER REQUIRES Capability Affordability Responsiveness
PRODUCT ENTERPRISE
bull Efficiency bull Fitness
BALANCE
bull Performance
bull ldquoIlitiesrdquo
Multiple Products Services Different Life Cycle Phases
bullProcesses bullToolsTools bullSkillsSkills bullEtcEtc
PRODUCT DEFINITION F-22 Definition Data Package
PRODUCT F-22 Tail 5005
ENTERPRISE LM Aero ndash the Company
ENTERPRISE DEFINITION Enterprise Architecture
DESIGN METHODOLOGY Systems Engineering
DESIGN METHODOLOGY ldquoEnterprise Engineeringrdquo
ACHIEVING MULTIPLE REQUIREMENTS
TAKES BOTH Soure Kessler LockheedMartin 2001
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
-
Deborah Nightingale - 7 copy 2002 Massachusetts Institute of Technology
Common Large Area Display Illustrates the Value Delivered through the Creation and Use of Standards
bull 500 displays for AWACs - But 15000 displays for DoD
bull Standardized on commercial display for all of DoD - 60 less weight
- 90 less maintenance cost
- 11 fold increase in MTBF
- 30 power reduction
- Better resolution
bull Up to $100M in DoD savings
Deborah Nightingale - 8 copy 2002 Massachusetts Institute of Technology
Observations on Using Standards to Achieve Enterprise Integration
bull Important to establish neutral forum of broker to define standards that prevent bias towards one solution
bull Use open architecture where possiblebull Consider technology clockspeed look to industries or
sectors that more closely match that of the system in question
bull Establish a common syntax to facilitate knowledge sharing
Deborah Nightingale - 9 copy 2002 Massachusetts Institute of Technology
Information Technology is Vital to Enterprise Integration Lean
bull Virtual Enterprise System (VES) provides the backbone for the digital design and manufacturing environment
bull All product data available real-time worldwide
bull Enables collaborative development
Customers Other Partners amp Suppliers
Lockheed Martin Ft Worth TX BAES
Samlesbury UK
Northrop Grumman
EI Segundo CA
NGC Database ldquomirrorrdquo
Master Database BAES Database ldquomirrorrdquo
Adapted from Burbage T Lockheed Martin ldquoJSF-A Winning Environmentrdquo Presentation at MIT March 6 2002
Deborah Nightingale - 10 copy 2002 Massachusetts Institute of Technology
Enterprise Process Architecture
Process
standardization is a key enterprise strategy
Life Cycle Processesmiddot Business Acquisition and Program Managementmiddot Requirements Definitionmiddot ProductProcess Developmentmiddot Supply Chain Managementmiddot Productionmiddot Distribution and Support
Enabling Infrastructure Processesmiddot Financemiddot Information Technologymiddot Human Resourcesmiddot Quality Assurancemiddot Facilities and Servicesmiddot Environment Health and Safety
Enterprise Leadership Processesmiddot Strategic Planningmiddot Business Modelsmiddot Managing Business Growthmiddot Strategic Partneringmiddot Organizational Structure and Integrationmiddot Transformation Management
Deborah Nightingale - 11 copy 2002 Massachusetts Institute of Technology
Integrated Systems Operating Concept
Market-Focused IPTs
Shared Services
Common Systems
Lean Shop Floor amp Above
Optimized Assets amp Technology Deployment
Leadership Culture
Airborne GroundSurveil amp BattleMgmt Systems
Airborne EarlyWarning amp ElectWarfare Systems
Air CombatSystems
HumanResources amp
Admin
TransactionAccountingInformation
Services
Sector HQStaff
Functions
HumanResources
Procurement
Payroll
Finance
Define ValueMap Value
Stream
EstablishFlow
ImplementPull
Strive forPerfection
RationalizedAssets
SharedCenters ofExcellence
DistributedProduct-Specific
Capabilities
JointSynergyPrograms
ShareholderValue
Education
IncentivizedMgmt Perf
WeightedFinancial
Goals
MeasuringUnderpiningST amp LT
Actions
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
Source Cool C Northrop Grumman ldquoJourney to a Lean Enterpriserdquo Presentation at MIT Oct 31 2001
Deborah Nightingale - 12 copy 2002 Massachusetts Institute of Technology
Simple Financial Metrics can Misrepresent theValue of Enterprise ldquoInfrastructurerdquo Investments
bull Research found that a military customer valued systems engineering analyses enough to pay for them in a military program but corporate would not in a comparable commercial program
bull Spacecraft testing research also showed commercial programs more likely to have infrastructure-related failures 1048599
bull Financial results-based decisions may inhibit capabilities development that pays dividends in the long-term
Deborah Nightingale - 13 copy 2002 Massachusetts Institute of Technology
Parallels In Building Products and Enterprises
CUSTOMER REQUIRES Capability Affordability Responsiveness
PRODUCT ENTERPRISE
bull Efficiency bull Fitness
BALANCE
bull Performance
bull ldquoIlitiesrdquo
Multiple Products Services Different Life Cycle Phases
bullProcesses bullToolsTools bullSkillsSkills bullEtcEtc
PRODUCT DEFINITION F-22 Definition Data Package
PRODUCT F-22 Tail 5005
ENTERPRISE LM Aero ndash the Company
ENTERPRISE DEFINITION Enterprise Architecture
DESIGN METHODOLOGY Systems Engineering
DESIGN METHODOLOGY ldquoEnterprise Engineeringrdquo
ACHIEVING MULTIPLE REQUIREMENTS
TAKES BOTH Soure Kessler LockheedMartin 2001
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
-
Deborah Nightingale - 8 copy 2002 Massachusetts Institute of Technology
Observations on Using Standards to Achieve Enterprise Integration
bull Important to establish neutral forum of broker to define standards that prevent bias towards one solution
bull Use open architecture where possiblebull Consider technology clockspeed look to industries or
sectors that more closely match that of the system in question
bull Establish a common syntax to facilitate knowledge sharing
Deborah Nightingale - 9 copy 2002 Massachusetts Institute of Technology
Information Technology is Vital to Enterprise Integration Lean
bull Virtual Enterprise System (VES) provides the backbone for the digital design and manufacturing environment
bull All product data available real-time worldwide
bull Enables collaborative development
Customers Other Partners amp Suppliers
Lockheed Martin Ft Worth TX BAES
Samlesbury UK
Northrop Grumman
EI Segundo CA
NGC Database ldquomirrorrdquo
Master Database BAES Database ldquomirrorrdquo
Adapted from Burbage T Lockheed Martin ldquoJSF-A Winning Environmentrdquo Presentation at MIT March 6 2002
Deborah Nightingale - 10 copy 2002 Massachusetts Institute of Technology
Enterprise Process Architecture
Process
standardization is a key enterprise strategy
Life Cycle Processesmiddot Business Acquisition and Program Managementmiddot Requirements Definitionmiddot ProductProcess Developmentmiddot Supply Chain Managementmiddot Productionmiddot Distribution and Support
Enabling Infrastructure Processesmiddot Financemiddot Information Technologymiddot Human Resourcesmiddot Quality Assurancemiddot Facilities and Servicesmiddot Environment Health and Safety
Enterprise Leadership Processesmiddot Strategic Planningmiddot Business Modelsmiddot Managing Business Growthmiddot Strategic Partneringmiddot Organizational Structure and Integrationmiddot Transformation Management
Deborah Nightingale - 11 copy 2002 Massachusetts Institute of Technology
Integrated Systems Operating Concept
Market-Focused IPTs
Shared Services
Common Systems
Lean Shop Floor amp Above
Optimized Assets amp Technology Deployment
Leadership Culture
Airborne GroundSurveil amp BattleMgmt Systems
Airborne EarlyWarning amp ElectWarfare Systems
Air CombatSystems
HumanResources amp
Admin
TransactionAccountingInformation
Services
Sector HQStaff
Functions
HumanResources
Procurement
Payroll
Finance
Define ValueMap Value
Stream
EstablishFlow
ImplementPull
Strive forPerfection
RationalizedAssets
SharedCenters ofExcellence
DistributedProduct-Specific
Capabilities
JointSynergyPrograms
ShareholderValue
Education
IncentivizedMgmt Perf
WeightedFinancial
Goals
MeasuringUnderpiningST amp LT
Actions
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
Source Cool C Northrop Grumman ldquoJourney to a Lean Enterpriserdquo Presentation at MIT Oct 31 2001
Deborah Nightingale - 12 copy 2002 Massachusetts Institute of Technology
Simple Financial Metrics can Misrepresent theValue of Enterprise ldquoInfrastructurerdquo Investments
bull Research found that a military customer valued systems engineering analyses enough to pay for them in a military program but corporate would not in a comparable commercial program
bull Spacecraft testing research also showed commercial programs more likely to have infrastructure-related failures 1048599
bull Financial results-based decisions may inhibit capabilities development that pays dividends in the long-term
Deborah Nightingale - 13 copy 2002 Massachusetts Institute of Technology
Parallels In Building Products and Enterprises
CUSTOMER REQUIRES Capability Affordability Responsiveness
PRODUCT ENTERPRISE
bull Efficiency bull Fitness
BALANCE
bull Performance
bull ldquoIlitiesrdquo
Multiple Products Services Different Life Cycle Phases
bullProcesses bullToolsTools bullSkillsSkills bullEtcEtc
PRODUCT DEFINITION F-22 Definition Data Package
PRODUCT F-22 Tail 5005
ENTERPRISE LM Aero ndash the Company
ENTERPRISE DEFINITION Enterprise Architecture
DESIGN METHODOLOGY Systems Engineering
DESIGN METHODOLOGY ldquoEnterprise Engineeringrdquo
ACHIEVING MULTIPLE REQUIREMENTS
TAKES BOTH Soure Kessler LockheedMartin 2001
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
-
Deborah Nightingale - 9 copy 2002 Massachusetts Institute of Technology
Information Technology is Vital to Enterprise Integration Lean
bull Virtual Enterprise System (VES) provides the backbone for the digital design and manufacturing environment
bull All product data available real-time worldwide
bull Enables collaborative development
Customers Other Partners amp Suppliers
Lockheed Martin Ft Worth TX BAES
Samlesbury UK
Northrop Grumman
EI Segundo CA
NGC Database ldquomirrorrdquo
Master Database BAES Database ldquomirrorrdquo
Adapted from Burbage T Lockheed Martin ldquoJSF-A Winning Environmentrdquo Presentation at MIT March 6 2002
Deborah Nightingale - 10 copy 2002 Massachusetts Institute of Technology
Enterprise Process Architecture
Process
standardization is a key enterprise strategy
Life Cycle Processesmiddot Business Acquisition and Program Managementmiddot Requirements Definitionmiddot ProductProcess Developmentmiddot Supply Chain Managementmiddot Productionmiddot Distribution and Support
Enabling Infrastructure Processesmiddot Financemiddot Information Technologymiddot Human Resourcesmiddot Quality Assurancemiddot Facilities and Servicesmiddot Environment Health and Safety
Enterprise Leadership Processesmiddot Strategic Planningmiddot Business Modelsmiddot Managing Business Growthmiddot Strategic Partneringmiddot Organizational Structure and Integrationmiddot Transformation Management
Deborah Nightingale - 11 copy 2002 Massachusetts Institute of Technology
Integrated Systems Operating Concept
Market-Focused IPTs
Shared Services
Common Systems
Lean Shop Floor amp Above
Optimized Assets amp Technology Deployment
Leadership Culture
Airborne GroundSurveil amp BattleMgmt Systems
Airborne EarlyWarning amp ElectWarfare Systems
Air CombatSystems
HumanResources amp
Admin
TransactionAccountingInformation
Services
Sector HQStaff
Functions
HumanResources
Procurement
Payroll
Finance
Define ValueMap Value
Stream
EstablishFlow
ImplementPull
Strive forPerfection
RationalizedAssets
SharedCenters ofExcellence
DistributedProduct-Specific
Capabilities
JointSynergyPrograms
ShareholderValue
Education
IncentivizedMgmt Perf
WeightedFinancial
Goals
MeasuringUnderpiningST amp LT
Actions
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
Source Cool C Northrop Grumman ldquoJourney to a Lean Enterpriserdquo Presentation at MIT Oct 31 2001
Deborah Nightingale - 12 copy 2002 Massachusetts Institute of Technology
Simple Financial Metrics can Misrepresent theValue of Enterprise ldquoInfrastructurerdquo Investments
bull Research found that a military customer valued systems engineering analyses enough to pay for them in a military program but corporate would not in a comparable commercial program
bull Spacecraft testing research also showed commercial programs more likely to have infrastructure-related failures 1048599
bull Financial results-based decisions may inhibit capabilities development that pays dividends in the long-term
Deborah Nightingale - 13 copy 2002 Massachusetts Institute of Technology
Parallels In Building Products and Enterprises
CUSTOMER REQUIRES Capability Affordability Responsiveness
PRODUCT ENTERPRISE
bull Efficiency bull Fitness
BALANCE
bull Performance
bull ldquoIlitiesrdquo
Multiple Products Services Different Life Cycle Phases
bullProcesses bullToolsTools bullSkillsSkills bullEtcEtc
PRODUCT DEFINITION F-22 Definition Data Package
PRODUCT F-22 Tail 5005
ENTERPRISE LM Aero ndash the Company
ENTERPRISE DEFINITION Enterprise Architecture
DESIGN METHODOLOGY Systems Engineering
DESIGN METHODOLOGY ldquoEnterprise Engineeringrdquo
ACHIEVING MULTIPLE REQUIREMENTS
TAKES BOTH Soure Kessler LockheedMartin 2001
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
-
Deborah Nightingale - 10 copy 2002 Massachusetts Institute of Technology
Enterprise Process Architecture
Process
standardization is a key enterprise strategy
Life Cycle Processesmiddot Business Acquisition and Program Managementmiddot Requirements Definitionmiddot ProductProcess Developmentmiddot Supply Chain Managementmiddot Productionmiddot Distribution and Support
Enabling Infrastructure Processesmiddot Financemiddot Information Technologymiddot Human Resourcesmiddot Quality Assurancemiddot Facilities and Servicesmiddot Environment Health and Safety
Enterprise Leadership Processesmiddot Strategic Planningmiddot Business Modelsmiddot Managing Business Growthmiddot Strategic Partneringmiddot Organizational Structure and Integrationmiddot Transformation Management
Deborah Nightingale - 11 copy 2002 Massachusetts Institute of Technology
Integrated Systems Operating Concept
Market-Focused IPTs
Shared Services
Common Systems
Lean Shop Floor amp Above
Optimized Assets amp Technology Deployment
Leadership Culture
Airborne GroundSurveil amp BattleMgmt Systems
Airborne EarlyWarning amp ElectWarfare Systems
Air CombatSystems
HumanResources amp
Admin
TransactionAccountingInformation
Services
Sector HQStaff
Functions
HumanResources
Procurement
Payroll
Finance
Define ValueMap Value
Stream
EstablishFlow
ImplementPull
Strive forPerfection
RationalizedAssets
SharedCenters ofExcellence
DistributedProduct-Specific
Capabilities
JointSynergyPrograms
ShareholderValue
Education
IncentivizedMgmt Perf
WeightedFinancial
Goals
MeasuringUnderpiningST amp LT
Actions
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
Source Cool C Northrop Grumman ldquoJourney to a Lean Enterpriserdquo Presentation at MIT Oct 31 2001
Deborah Nightingale - 12 copy 2002 Massachusetts Institute of Technology
Simple Financial Metrics can Misrepresent theValue of Enterprise ldquoInfrastructurerdquo Investments
bull Research found that a military customer valued systems engineering analyses enough to pay for them in a military program but corporate would not in a comparable commercial program
bull Spacecraft testing research also showed commercial programs more likely to have infrastructure-related failures 1048599
bull Financial results-based decisions may inhibit capabilities development that pays dividends in the long-term
Deborah Nightingale - 13 copy 2002 Massachusetts Institute of Technology
Parallels In Building Products and Enterprises
CUSTOMER REQUIRES Capability Affordability Responsiveness
PRODUCT ENTERPRISE
bull Efficiency bull Fitness
BALANCE
bull Performance
bull ldquoIlitiesrdquo
Multiple Products Services Different Life Cycle Phases
bullProcesses bullToolsTools bullSkillsSkills bullEtcEtc
PRODUCT DEFINITION F-22 Definition Data Package
PRODUCT F-22 Tail 5005
ENTERPRISE LM Aero ndash the Company
ENTERPRISE DEFINITION Enterprise Architecture
DESIGN METHODOLOGY Systems Engineering
DESIGN METHODOLOGY ldquoEnterprise Engineeringrdquo
ACHIEVING MULTIPLE REQUIREMENTS
TAKES BOTH Soure Kessler LockheedMartin 2001
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
-
Deborah Nightingale - 11 copy 2002 Massachusetts Institute of Technology
Integrated Systems Operating Concept
Market-Focused IPTs
Shared Services
Common Systems
Lean Shop Floor amp Above
Optimized Assets amp Technology Deployment
Leadership Culture
Airborne GroundSurveil amp BattleMgmt Systems
Airborne EarlyWarning amp ElectWarfare Systems
Air CombatSystems
HumanResources amp
Admin
TransactionAccountingInformation
Services
Sector HQStaff
Functions
HumanResources
Procurement
Payroll
Finance
Define ValueMap Value
Stream
EstablishFlow
ImplementPull
Strive forPerfection
RationalizedAssets
SharedCenters ofExcellence
DistributedProduct-Specific
Capabilities
JointSynergyPrograms
ShareholderValue
Education
IncentivizedMgmt Perf
WeightedFinancial
Goals
MeasuringUnderpiningST amp LT
Actions
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
A Fully Integrated Enterprise With a Shared InfrastructureProviding Distinct Competitive Advantages
Source Cool C Northrop Grumman ldquoJourney to a Lean Enterpriserdquo Presentation at MIT Oct 31 2001
Deborah Nightingale - 12 copy 2002 Massachusetts Institute of Technology
Simple Financial Metrics can Misrepresent theValue of Enterprise ldquoInfrastructurerdquo Investments
bull Research found that a military customer valued systems engineering analyses enough to pay for them in a military program but corporate would not in a comparable commercial program
bull Spacecraft testing research also showed commercial programs more likely to have infrastructure-related failures 1048599
bull Financial results-based decisions may inhibit capabilities development that pays dividends in the long-term
Deborah Nightingale - 13 copy 2002 Massachusetts Institute of Technology
Parallels In Building Products and Enterprises
CUSTOMER REQUIRES Capability Affordability Responsiveness
PRODUCT ENTERPRISE
bull Efficiency bull Fitness
BALANCE
bull Performance
bull ldquoIlitiesrdquo
Multiple Products Services Different Life Cycle Phases
bullProcesses bullToolsTools bullSkillsSkills bullEtcEtc
PRODUCT DEFINITION F-22 Definition Data Package
PRODUCT F-22 Tail 5005
ENTERPRISE LM Aero ndash the Company
ENTERPRISE DEFINITION Enterprise Architecture
DESIGN METHODOLOGY Systems Engineering
DESIGN METHODOLOGY ldquoEnterprise Engineeringrdquo
ACHIEVING MULTIPLE REQUIREMENTS
TAKES BOTH Soure Kessler LockheedMartin 2001
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
-
Deborah Nightingale - 12 copy 2002 Massachusetts Institute of Technology
Simple Financial Metrics can Misrepresent theValue of Enterprise ldquoInfrastructurerdquo Investments
bull Research found that a military customer valued systems engineering analyses enough to pay for them in a military program but corporate would not in a comparable commercial program
bull Spacecraft testing research also showed commercial programs more likely to have infrastructure-related failures 1048599
bull Financial results-based decisions may inhibit capabilities development that pays dividends in the long-term
Deborah Nightingale - 13 copy 2002 Massachusetts Institute of Technology
Parallels In Building Products and Enterprises
CUSTOMER REQUIRES Capability Affordability Responsiveness
PRODUCT ENTERPRISE
bull Efficiency bull Fitness
BALANCE
bull Performance
bull ldquoIlitiesrdquo
Multiple Products Services Different Life Cycle Phases
bullProcesses bullToolsTools bullSkillsSkills bullEtcEtc
PRODUCT DEFINITION F-22 Definition Data Package
PRODUCT F-22 Tail 5005
ENTERPRISE LM Aero ndash the Company
ENTERPRISE DEFINITION Enterprise Architecture
DESIGN METHODOLOGY Systems Engineering
DESIGN METHODOLOGY ldquoEnterprise Engineeringrdquo
ACHIEVING MULTIPLE REQUIREMENTS
TAKES BOTH Soure Kessler LockheedMartin 2001
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
-
Deborah Nightingale - 13 copy 2002 Massachusetts Institute of Technology
Parallels In Building Products and Enterprises
CUSTOMER REQUIRES Capability Affordability Responsiveness
PRODUCT ENTERPRISE
bull Efficiency bull Fitness
BALANCE
bull Performance
bull ldquoIlitiesrdquo
Multiple Products Services Different Life Cycle Phases
bullProcesses bullToolsTools bullSkillsSkills bullEtcEtc
PRODUCT DEFINITION F-22 Definition Data Package
PRODUCT F-22 Tail 5005
ENTERPRISE LM Aero ndash the Company
ENTERPRISE DEFINITION Enterprise Architecture
DESIGN METHODOLOGY Systems Engineering
DESIGN METHODOLOGY ldquoEnterprise Engineeringrdquo
ACHIEVING MULTIPLE REQUIREMENTS
TAKES BOTH Soure Kessler LockheedMartin 2001
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
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