1 APLS/CALS EUROPE 99 Copyright  F REE F REE Co-operation in virtual organisation; The results C. Hof Project co-ordinator

2 APLS/CALS EUROPE 99 Copyright  F REE F REE Adepa Cap Gemini B.V Daimler-Benz Aerospace AG ULM European Society for Concurrent Engineering Seaview B.V. Thomson-CSF Technology and Methods University of Twente Hollandse Signaalapparaten B.V. (Co-ordinator) Esprit : Models, tools and systems to realise a Fast Reactive Extended Enterprise to meet the customers demand in industrial markets A European project cooperation between:

3 APLS/CALS EUROPE 99 Copyright  F REEOverview FREE definition FREE objectives FREE products FREE usebility

4 APLS/CALS EUROPE 99 Copyright  F REE FREE definition An alliance between partners that –have complementary knowledge & skills –to reach competitive edge in a business Key features of such alliance are: –shared leadership, –common purpose, mission & values, –common business & strategic goals –networked organisation based on workforce empowerment, shared processes & policies

5 APLS/CALS EUROPE 99 Copyright  F REE Today’s Operational Problems Incompatible methods/techniques/procedures Lack of process ownership and process management Lack of process measurements Lack of clear responsibilities Accomplishing effective and efficient collaboration processes Configuration and data management problems Lack of knowledge transfer

6 APLS/CALS EUROPE 99 Copyright  F REE Motivations for the FREE project current trends in industry for new business practices to increase the enterprise reactivity on customer expectations to global market changes of people, methods and tools  team building and co-operation (both inside and outside the enterprise)  culture and practices of reactivity improved quality of enterprise operation  Capability Maturity frameworks

7 APLS/CALS EUROPE 99 Copyright  F REE Project scope to address the 4 major demands of a FREE organisation : collaboration management (virtual enterprise integration) people management (workforce co-operation & flexibility) process management (interoperable shared processes) resources management (including technology & knowledge)  focusing on collaboration and communication to provide practical guidance's for improving the quality of operation of FREE organisations  building on current capability maturity frameworks  integrating the different aspects of a virtual enterprise

8 APLS/CALS EUROPE 99 Copyright  F REE FREE domain (1) FREE domain is: collaborative virtual enterprise (developing complex, one-of-the-kind products) Topics of concern are : –Environment strategy and goals, partnership, customer relations,... –Organisational arrangements facilitating communication & collaboration –Shared processes between partners management, adaptation, support –People and other resources knowledge, technologies, etc...

9 APLS/CALS EUROPE 99 Copyright  F REE FREE domain (2)  excluded of the FREE project domain  “ Primary” (Engineering) processes that are (or should be handled by) specific quality frameworks such as: System Engineering, Software engineering, etc...  People management process aspects when not related to collaboration and flexibility  Legal arrangements between organisations building a FREE

10 APLS/CALS EUROPE 99 Copyright  F REE FREE results Overall architecture FREE Improvement Manual FREE-PMM Manual FREE-CAF Reference Manual Quick Scan FREE-PMM library FREE-CAF Reference Model Navigation tool FREE Model Ready for use documents or as easy access CD-ROM FREE Improvement Manual FREE-PMM Manual FREE-CAF Reference Manual FREE-SME

11 APLS/CALS EUROPE 99 Copyright  F REE MARKET SEGMENTATION SME’s Consortium Vertical Integration Business Broker or Integrator Horizontal Integration Main- subcontractor Large Enterprise Business Network SME’s Community

12 APLS/CALS EUROPE 99 Copyright  F REE Measurement consequences Organisation depends on partners expertise HORIZONTAL organisation Organisation depends on the product architecture VERTICAL organisation OPPORTUNITY (single project) Limited ability NETWORK (repetitive projects) Enhanced ability Maturity/PI evolution

13 APLS/CALS EUROPE 99 Copyright  F REE Building infrastructure Immaturity of technology Intercompany training Creating collaborative mentality Opening company boundaries Cost Rewarding employees for collaboration Security Collaboration implementation challenges (FREE 1997) Industrial expectations of FREE

14 APLS/CALS EUROPE 99 Copyright  F REE Structural alignment Collaboration Communication CAF PMM Process operation Influences Checks Influences outcome Model represents FREE Context

15 APLS/CALS EUROPE 99 Copyright  F REE Static - Dynamic relation Communication process Virtual enterprise process operation Formal communication between partners Informal communication between partners Degree of integration between partners Degree of overlap of tasks between partners Product development success (costs, quality and time) Positive relation FREE-CAF FREE structure FREE-PMM Structural alignment Actual alignment Positive relation

16 APLS/CALS EUROPE 99 Copyright  F REE Improvement scenario Implementation & Evaluation business case & project plan analysis phaseorientation phase business objectives critical success factors improvement activities project triggers business issues organisational model / quickscan capability assessment framework performance measurement method preferred project management method enterprise functions improve- ment scenarios project plan evaluation key process areas

17 APLS/CALS EUROPE 99 Copyright  F REE FREE-CAF focus Environment Strategic level Adaptive level Operational level

18 APLS/CALS EUROPE 99 Copyright  F REE Data consolidation Rating Findings Reporting Follow up Verifying CMM Process Sponsorship Planning Preparation Data collection Scope definition Commitment to perform Ability to perform Activities performed

19 APLS/CALS EUROPE 99 Copyright  F REE Alliance enforcement Leadership Business planning Policy & strategy Marketing Customer satisfaction Structural arrangements Communication structure Team structure Procedure Cultural arrangements Participatory culture Policies Management processes Decision Process Conflict resolution process etc. Engineering management Configuration & data management Peer reviews etc Communication management Process management People management Developing capabilities Motivating & managing performance Shaping the workforce Technology management Knowledge management Infrastructure management FREE Key Process Areas Enterprise integration Organizational arrangement Shared Processes Resources

20 APLS/CALS EUROPE 99 Copyright  F REE Assessment goals 1 2 FREE Assessment: - FREE - Partners

21 APLS/CALS EUROPE 99 Copyright  F REE Improvement scenario Implementation & Evaluation business case & project plan analysis phaseorientation phase business objectives critical success factors improvement activities project triggers business issues organisational model / quickscan capability assessment framework performance measurement method preferred project management method enterprise functions improve- ment scenarios project plan evaluation key process areas

22 APLS/CALS EUROPE 99 Copyright  F REE Type of measurement ? Capability focus Levels of maturity Business focus Visionary Management Program Initiation Mgmt Program Operation Mgmt

23 APLS/CALS EUROPE 99 Copyright  F REE Contingency factors FREE-PMM STRATEGY CONTROLLING PHILOSPHY EXTERNAL REPORTS MANAGEMENT STYLE BRANCH DEVELOPMENTS COMPANY PROCESSES STRUCTURE CULTURE DEGREE OF AUTOMATION SIZE OF THE FREE SIZE OF THE PARTNERS

24 APLS/CALS EUROPE 99 Copyright  F REE PM Method Contingency factors T,Q,C goals project planning process overlap integration degree (in)formal communication tools Actual and activity alignment PI reference values PI of communication tools Communication process measurement Transformation process measurement Feedback loop

25 APLS/CALS EUROPE 99 Copyright  F REE Collaboration measures.. as a capability –training –education.. as an organisational goal –procedure improvement –quality measures –ICT facilities Measurements: –meeting structure –information distribution –schedule acceptance –frequency –cost control –risk management –PDM usage

26 APLS/CALS EUROPE 99 Copyright  F REEChallenges I takes effort: –A will for changes on partners behaviour –The need for professional staff to support changes –The budget for changes PIs helps! –Getting engineers “on board ” –Agreement on shared mission and goals –Achieve alignment between tasks –Agreement on performance levels (as reference level, yardstick)

27 APLS/CALS EUROPE 99 Copyright  F REE Expected FREE insights (partner point of view) Company strategy and goals inline with: –Peoples skills, culture –FREE organisation Full management support Insight in FREE organisation Control of the FREE key practices IT facilities that support the FREE goals Security facilities that supports collaboration

28 APLS/CALS EUROPE 99 Copyright  F REE Conclusion: An integrated suite FREE Improvement Manual FREE Performance Measurement FREE-CAF Assessment Methodology Dynamic behaviour Static organisation FREE-CAF Model Navigation tool Organisational model CSF PIs triggers Continuous improvement Process Business issues

29 APLS/CALS EUROPE 99 Copyright  F REE On-going activities ! Awareness & dissemination of project results through CE-NET, ICC workgroup MI-FREE Purpose:  industrial validation through pilots  achieving recognition from the international community: SEI, EFQM, Agile Forum,...  maintenance & improvements of the FREE project results

30 APLS/CALS EUROPE 99 Copyright  F REEContact Contact for more detailed information or to get the FREE reports or CD-ROM Look at: and down-load the navigator. Kees (C) Hof  ()

31 APLS/CALS EUROPE 99 Copyright  F REE