enterprise architecture design for services and support of complex engineering systems professor...
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Enterprise Architecture Design for Services and Support of Complex Engineering Systems
Professor John Mo
RMIT University
Ph: 03 9925 6279
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 2
Outline
• Background
• Case study – The Plasma Cutting Machine
• Case study – The ANZAC Ship Alliance
• Servitization
• The Support Enterprise Architecture
• Capability Assessment Methodology
• Conclusion
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 3
Fertilizer Plant Design and Support
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 5
Outline
• Background
• Case study – The Plasma Cutting Machine
• Case study – The ANZAC Ship Alliance
• Servitization
• The Support Enterprise Architecture
• Capability Assessment Methodology
• Conclusion
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 7
Background – Farley Cutting Systems
• Small company manufacturing plasma cutting machine selling globally
• Also sells other non-conventional metal cutting machines, e.g. laser, water jet
• All machines are customized, e.g. size, power, functions
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 8
Problems Investigated
• About 600 machines around the world
• Updates of operational manuals
• Process control very experience dependent – customer knows more than Farley
• Customer calls not serviced correctly
• Availability of spare parts on site
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 9
The Plasma Machine ROSDAM Model
Companies and sub-company level servers with diagnostics systems, operating data
Physical system
Information filtering and aggregation
Machines driven by decisions made at the decision centres (servers)
Decision system
Flow of materials
Information system
Global system architecture
Diagnostics process modelling
Machine configuration management, operations and service records
Machine signal diagnostics
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 10
ROSDAM Client1
Scalable global system architecture The Internet
ROSDAM ServerOn Machine
Global Master Server
Company 1 Company 2 Company n…
ROSDAM Server on Shop floor 1
ROSDAM Server on Shop floor 2
Sub-company
…
ROSDAM Client2
ROSDAM Server on Machine of sub-company
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 11
Machine Configuration Management, Operations and Service Records
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 12
Machine Signals Diagnostics
Good Nozzle
Bad Nozzle
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Observations from the plasma cutting case
• Communication networks and IT systems – client/server model
• Knowledge sharing – transform customer data to information to knowledge
• Integrated engineering (bill of materials) and manufacturing (machine configuration management) and parts inventory data
• Service team restructuring, retraining
• Change of product – upgrade with signal diagnostics system
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 14
Outline
• Background
• Case study – The Plasma Cutting Machine
• Case study – The ANZAC Ship Alliance
• Servitization
• The Support Enterprise Architecture
• Capability Assessment Methodology
• Conclusion
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 16
What is the ANZAC Ship Alliance?
• The ANZAC Ship Alliance can be thought of as a virtual company with shareholders comprising the (Australian) Commonwealth, Tenix Defence (now BAE Systems), and Saab Systems
• Mission: to manage all change and upgrades to the ANZAC Ships
• The Alliance is a “solution focused” company. The ANZAC Ship Alliance Management Office will:
–Develop change solutions but
–The detailed design be undertaken by the “shareholders”
–Will draw upon the shareholders’ existing knowledge of the ANZAC Class
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 17
The ANZAC Ship Alliance Model
• An approach aimed at creating mutually beneficial relationships between all parties involved so as to produce outstanding project outcomes
• Characteristics–All parties win or all parties lose
–Collective responsibility, equitable sharing of risk and reward
–All decisions based on “best for project” philosophy
–Clear responsibilities within a no-blame culture
–Access to resources, skills and expertise of all parties
–All financial transactions are fully open book
–Encouragement of innovative thinking - outstanding outcomes
–Open and honest communication - no hidden agenda
–Visible/unconditional support from executive management
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 18
ANZAC Ship Alliance Management Office
ANZAC AllianceGeneral Manager
Enabling Manager
Build Manager
Sustainment Manager
ANZAC AllianceBoard
ANZACSPO Director
DGMSS
Enabling Function
Build Function
Sustainment Function Generation
Function
Tasking Statements
Alliance Management Structure
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 19
ANZAC Ship Alliance Organisation
Alliance Board
Quality
Engineering
Commercial
Project Control
Project Management
SA
Alliance
General Manager
Project Management
Vic
HarpoonProject
ASMD Project
Project Management
WA
Project Teams working in Participant Organisations
ANZAC Ship Alliance Management Office
Rockingham WA
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 20
Project costs/benefits to be shared
• Project priced according to an agreed costing model
• Non-cost items identified and measured with KPIs
• Non-cost pool (a pre-agreed amount) set aside for exceptional performance
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 21
The ANZAC Ship Alliance PERA model
Definition of ANZAC Ship Alliance
2. The Concept
Missions, goals, values, management philosophies
Mechanisms (Data, documents, knowledge)
System (Management and control)
3. Content Policies 4. Logistics Policies
Document formats for 40 years Inter-enterprise Network
5. Content Requirements 6. Logistics Req'ts
Type of documents, storage, synchronization
Access control, permission, security
7. Content Functions 8. Logistics Functions
Info order tracking Decision tree, version control
9. Process Diagrams 10. Logistics Diagrams
Entity models Entity models
Information Architecture Human and Organisational Architecture
Management and Processes Architecture
11. Functional Design (Production)
12. Functional Design (Human) 13. Functional Design (Logistics)
Requirements of info at each level, content definition
Human roles & organisation chart, staffing level
Relationships in managent & control (decision making regarding creating, managing, delivery of projects
14. Detailed Design 15. Tasks, Training 16. Hardware, Software
Developments of forms, identification, system integration
Tasks, priorities, responsibilities, tranining plans, operation & maintenance manuals for the CSCW
Customisable front end interface
17. Construction Checks 18. Staffing, training 19. Assembly, Test, Procure & Commission Control
Coding, storage, retrieve info, communicating with different databases
Staffing, training for cooperative tools
Purchases of software for front-end customisation. Debug.
20. Production 21. Operation & Maintenance 22. Operation of Logistics Systems
Project reports, document, information, knowledge management. De-gollkneching, Com & quality improve impact
Operation & performance improvements
Project management, system upgrades, supply chain management
23. Plant Disposal, Clean-up 24. Staff Redeployment 25. Archiving & Disposal
Functional Design
Detailed Design
Implementation
Operations & Maintenance
Disposal
Functional Architectures
Functional Modules
Requirements
Policies
Concept
Identification
Organizational and management structure
Access and control management system
Document repository
Process/work flow model
The business objective
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 22
Access Control and Requirements Mapping
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Design of the ASA Enterprise
• Project Management–Developed a “Request Tracking System” to support information
needs in projects
• Work Flow Harmonization–Formalized project processes and develop the associated QA
plans
• IT Support–A customized web-based IT platform for above processes to assist
project members and integrating with ASAMO processes
• Knowledge Sharing–A web-based document management system properly structured
and indexed and accessible by all ASA projects
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 25
Outline
• Background
• Case study – The Plasma Cutting Machine
• Case study – The ANZAC Ship Alliance
• Servitization
• The Support Enterprise Architecture
• Capability Assessment Methodology
• Conclusion
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 26
From a Broader Perspective
• Availability
• Readiness
• Failures prediction/prevention
• Response time
• Accuracy of analysis
• Cost (Savings)
• Fault tolerance
• ……
• “Performance”
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 27
Servitization
Capability
Time
Progressive Modifications
Whole of system services and support
Initial acquisition
Equipment manufacturers creating value for customers by adding services around their equipment
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 28
Performance Based Contracts
• Business model can be:–Fixed price
–Cost reimbursement
–Target cost incentive
–Gain sharing
• Performance payments and award terms linked to Key Performance Indicators
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 29
Transform Performance into Value
nm
p
p
p
f
v
v
v
v
......
2
1
3
2
1
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 30
Typical Performance Based ModelV
alue
Bonus
Reducing contract Value
Achieved performance
Contract expected performance
Full contract value
Contract terminated
Minimum tolerable performance
Performance beyond expectation
)( PfV
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 31
Other performance based modelsV
alue
Bonus
Varying contract
value
Achieved performance
Contract expected performance
Full contract value
Contract terminated
Minimum tolerable performance
Performance beyond expectation
)( PfV
Compensation sought
Value not realisable
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 32
Performance is Delivered by CapabilitiesV
alue
Achieved performance
Contract expected performance
Full contract value
Minimum tolerable performance
][CgPfV
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 33
From the Point of View of ContractorV
alue
Achieved performance
Contract expected performance
Full contract value
Minimum tolerable performance
Probability of penalty
Probability of contract
termination
Probability of profit
Expected performance of the contractor
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 34
From the Point of View of Asset OwnerV
alue
Achieved performance
Contract expected performance
Full contract value
Minimum tolerable performance
Probability of satisfaction
Probability of project failure
Probability of happy user
Expected performance of the contractor
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 35
Outline
• Background
• Case study – The Plasma Cutting Machine
• Case study – The ANZAC Ship Alliance
• Foundation of Servitization
• The Support Enterprise Architecture
• Capability Assessment Methodology
• Conclusion
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 36
Assessment of Capabilities
• Has many dimensions
• Variation over time
• Depends on investment
• Some capabilities are supporting, e.g. infrastructure
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 37
Dimensions of a Support Enterprise
PEOPLE
PRODUCT
ENVIRONMENT
PROCESS
Cultural, Human reliability, Training, Health and Safety, Leadership
Change over time, expanding services, renewal, change of usage patterns, social influences
Fundamental Engineering Sciences
Systems Engineering,
Operations, Project management
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 38
Some Indicators of People Capabilities
• Cultural diversity - number of ethnic groups
• Absentees – number of days per year
• Competency – percentage of staff attaining certain level
• Vacancy – person-day of unfilled position per year
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 39
Some Indicators of Process Capabilities
• Process variability – Number of deviations from defined process
• Conformance to standards – percentage of standard operating procedures meeting acceptable standards
• Distribution – cost of supply chain
• Infrastructure – Capability assessed per range of criteria
• Processing time – mean, range
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 40
Some Indicators of Product Capabilities
• Product reliability – probability that the product performs in specified time
• Inventory cost – cost of ordering, warehousing
• Manufacturing cost – expected, variance
• Testing – conformance rate
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 41
Outline
• Background
• Case study – The Plasma Cutting Machine
• Case study – The ANZAC Ship Alliance
• Foundation of Servitization
• The Support Enterprise Architecture
• Capability Assessment Methodology
• Conclusion
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 42
Achieving Value Through the Support Enterprise
Z
Y
X
g
p
p
p
f
v
v
v
v
nm
......
2
1
3
2
1
ZYXP
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 43
Hierarchy of Parameters
People Process Product
Capability Indicator
Absentees
Compet’cy
Vacancy
Variability
Conform’ce
Reliability
Mnuf cost
Testing
[X] [Y] [Z]
1
Cultural
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 44
Illustrative Example
• Assuming a support system capability can be assessed by the following attributes:
• {X} = {competency level, absentees}
• {Y} = {process variability, conformance to standards}
• {Z} = {product reliability, inventory cost}
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 45
Competency
Competency Level
Pessimistic No. of staff
Normal No. of staff
OptimisticNo. of staff
3 4 11 12
2 10 17 18
1 18 32 35
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 46
Represented by Normal Distribution
6
4 pmoe
PPPP
Competency Level
Level x No.
(Pess.)
Level x No.
(Norm.)
Level x No. (Opt.)
Mean Level x No.
3 12 33 36 30.00
2 20 34 36 32.00
1 18 32 35 30.17
TOTAL 92.17
Competency Level
Pessimistic No. of staff
Normal No. of staff
OptimisticNo. of staff
3 4 11 12
2 10 17 18
1 18 32 35
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 47
Standard Deviation of Competency Function
Competency Level
Pessimistic No. of staff
OptimisticNo. of staff
Variance
3 4 12 16.00
2 10 18 7.11
1 18 35 8.03
TOTAL 31.14
2
6op
e
PPV
Competency Level
Pessimistic No. of staff
Normal No. of staff
OptimisticNo. of staff
3 4 11 12
2 10 17 18
1 18 32 35
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 48
Convert to Common Scale
Level Max capacity Level x Max. No.
3 12 36
2 18 36
1 35 35
TOTAL 107
Scaled mean = 72.83 / 107 * 5 = 4.3
Scaled standard deviation = (31.13 / 107 * 5) = 1.2
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 49
Raw Data
• {X} = {N(4.3, 1.2), N(2.8, 0.8)}
• {Y} = {N(3.5, 0.2), N(4.6, 1.1)}
• {Z} = {N(3.9, 1.2), N(2.1, 0.5)}
People Process Product
Total
0.08
0.10
0.28
01.4
0.18
0.22
[X] [Y] [Z]
1
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 50
Aggregated Capability Distribution
412.31.2
9.322.018.0
6.4
5.314.028.0
8.2
3.410.008.0
P
564.022.0
18.022.018.0
14.0
28.014.028.0
8.0
2.110.008.0
2
2
2
2
2
2
V
Standard deviation = 0.564 = 0.751
ZYXP
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 51
Probabilities SuperimposedV
alue
Achieved performance
3.7
Full contract value
2.0
Probability of penalty =
64.9%
Probability of contract
termination =3.0%
Probability of profit = 32.1%
Expected performance of the contractor = N(3.412, 0.751)
Promised performance
Minimum tolerable
performance
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 52
Outline
• Background
• Case study – The Plasma Cutting Machine
• Case study – The ANZAC Ship Alliance
• Foundation of Servitization
• The Support Enterprise Architecture
• Capability Assessment Methodology
• Conclusion
RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 53
Conclusion
• The business model of servitization imposes a lot of risks to both sides of the contracting parties
• Case studies show that a structure is required to design a support solution
• The Support Enterprise Architecture consists of three capability elements
• Assessment of the capability elements can provide an indication of the probabilities of different levels of achieved performance and hence value of the contract
Prof. John Mo
Discipline Head, Manufacturing and Materials Engineering
School of Aerospace, Mechanical and Manufacturing Engineering
RMIT University
Ph: 03 9925 6279
Thank You.Questions ?