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Enterprise Architecture Design for Services and Support of Complex Engineering Systems Professor John Mo RMIT University Ph: 03 9925 6279 Em:

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Presentation on theme: "Enterprise Architecture Design for Services and Support of Complex Engineering Systems Professor John Mo RMIT University Ph: 03 9925 6279 Em:"— Presentation transcript:

1 Enterprise Architecture Design for Services and Support of Complex Engineering Systems Professor John Mo RMIT University Ph: Em:

2 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

3 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 3 Fertilizer Plant Design and Support

4 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 4 Mobile Engineering Systems

5 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

6 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 6 The Plasma Cutting Machine

7 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

8 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

9 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

10 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 10 ROSDAM Client1 Scalable global system architecture The Internet ROSDAM Server On Machine Global Master Server Company 1Company 2Company n … ROSDAM Server on Shop floor 1 ROSDAM Server on Shop floor 2 Sub- company … ROSDAM Client2 ROSDAM Server on Machine of sub-company

11 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 11 Machine Configuration Management, Operations and Service Records

12 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 12 Machine Signals Diagnostics Good Nozzle Bad Nozzle

13 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 13 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

14 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

15 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 15 The ANZAC Ship Alliance

16 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

17 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

18 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 18 ANZAC Ship Alliance Management Office ANZAC Alliance General Manager Enabling Manager Build Manager Sustainment Manager ANZAC Alliance Board ANZAC SPO Director DGMSS Enabling Function Build Function Sustainment Function Generation Function Tasking Statements Alliance Management Structure

19 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 Harpoon Project ASMD Project Project Management WA Project Teams working in Participant Organisations ANZAC Ship Alliance Management Office Rockingham WA

20 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

21 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 21 The ANZAC Ship Alliance PERA model 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

22 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 22 Access Control and Requirements Mapping

23 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 23 Workflow Model

24 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 24 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

25 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

26 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”

27 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

28 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

29 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 29 Transform Performance into Value

30 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 30 Typical Performance Based Model Value Bonus Reducing contract Value Achieved performance Contract expected performance Full contract value Contract terminated Minimum tolerable performance Performance beyond expectation

31 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 31 Other performance based models Value Bonus Varying contract value Achieved performance Contract expected performance Full contract value Contract terminated Minimum tolerable performance Performance beyond expectation Compensation sought Value not realisable

32 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 32 Performance is Delivered by Capabilities Value Achieved performance Contract expected performance Full contract value Minimum tolerable performance

33 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 33 From the Point of View of Contractor Value 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

34 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 34 From the Point of View of Asset Owner Value 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

35 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

36 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

37 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

38 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

39 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

40 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

41 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

42 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 42 Achieving Value Through the Support Enterprise

43 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 43 Hierarchy of Parameters PeopleProcessProduct Capability Indicator Absentees Compet’cy Vacancy Variability Conform’ce Reliability Mnuf cost Testing [X][Y][Z]   Cultural

44 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}

45 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 45 Competency Competency Level Pessimistic No. of staff Normal No. of staff Optimistic No. of staff

46 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 46 Represented by Normal Distribution Competency Level Level x No. (Pess.) Level x No. (Norm.) Level x No. (Opt.) Mean Level x No TOTAL92.17 Competency Level Pessimistic No. of staff Normal No. of staff Optimistic No. of staff

47 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 47 Standard Deviation of Competency Function Competency Level Pessimistic No. of staff Optimistic No. of staff Variance TOTAL31.14 Competenc y Level Pessimistic No. of staff Normal No. of staff Optimistic No. of staff

48 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 48 Convert to Common Scale LevelMax capacityLevel x Max. No TOTAL107 Scaled mean = / 107 * 5 = 4.3 Scaled standard deviation =  (31.13 / 107 * 5) = 1.2

49 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)} PeopleProcessProduct Total [X][Y][Z]  

50 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 50 Aggregated Capability Distribution Standard deviation =  = 0.751

51 RMIT University©25/6/2012 School of Aerospace, Mech and Manuf Engg 51 Probabilities Superimposed Value 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

52 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

53 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

54 Prof. John Mo Discipline Head, Manufacturing and Materials Engineering School of Aerospace, Mechanical and Manufacturing Engineering RMIT University Ph: Em: Thank You. Questions ?


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