EIN 6133 Enterprise Systems Engineering ChinSheng Chen Florida
- Slides: 19
EIN 6133 Enterprise Systems Engineering Chin-Sheng Chen Florida International University
T 7: Enterprise performance n Performance measure types – Cost – Lead time – Quality – Benefit (profit)
The ESE Framework – Re-visit Enterprise element Work Management Resource Information System facet Strategy Competency (capability) Capacity Structure Engineering activity Specification Analysis Design Implementation Performance measure Quality Time Cost Benefit (profit)
Readings & References n Readings: – HEA: n Reference – Strategy Maps by Robert Kaplan and David Norton, HBS Press, 2004
Performance measure n Foundation for performance measure – Mission>value>vision>strategy (game plan)>strategy map (implementation plan)>performance measure
Performance measure n Performance measure levels – At corporate level (financial perspective) n Core performance indicators (CPI) – At division (profit center) level (customer perspective) n Key performance indicators (KPI) – At dept. (cost center) level (internal process perspective) n Department performance indicators (DPI) – At individual level (learning & growth perspective) n Personal performance indicators (PI)
Performance measure n CPI: From financial perspective for long-term shareholder value – Strategy types n Productivity strategy – Improve cost structure n Measures: cash expense reduction, defect elimination, yield improvement – Increase asset utilization n n Measures: resource utilization, bottleneck elimination Growth strategy – Expand revenue opportunities n Measures: new revenue sources (new products, markets, partners) – Enhance customer value n Measures: profitability improvement (of existing customers)
Performance measure n KPI, From customer perspective – Customer value proposition n Product attributes: price, quality, availability, selection, and functionality n Relationship: service and partnership n Image: brand – Cost-related strategy n Measures: lowest cost supplier, – Quality related strategy n Measures: product performance, quality consistency, quality of solution to customer, – Time related strategy n Measures: availability, first to market, response time – Benefit related strategy n Measures: high switching cost to customers, customer retention, customer’s product lifetime profitability
Performance measure n KPI Example – Cost-related n n n Meting target revenue Indirect cost ratio Labor resource utilization Direct/indirect labor ratio Equipment resource utilization – Quality related n n n CDR Rework counts T 1 accomplishment rate # of Tests to delivery Accomplishment rate – Time related n n Quotation/EC turnaround time In-time delivery – Benefit/goodwill n n Industrial safety Customer satisfaction
Performance measure n DPI, from internal process perspective (1) – For operations management processes n n Supply Production Distribution Risk management – For customer management processes n n Selection Acquisition Retention growth
Performance measure n DPI, from internal process perspective (2) – For innovation processes n n Opportunity ID R&D portfolio Design and development Launch – For regulatory and social processes n n Environment Safety and health Employment community
Performance measure n DPI, from learning and growth perspective – For human resource n n n Skills Training Knowledge – For information n Systems Database Network – For organization structure n n Culture Alignment Leadership Teamwork
Performance measure n DPI, a generic example – Cost-related n Sales, overhead, gross profit, average revenue per head count, worker & machine utilization – Quality-related n Number of try-outs, rework, IPQC, first article quality, product quality at shipping. – Time-related n Turnaround time – Benefit related n Customer satisfaction
Performance measure n DPI, specific example – production engineering – Department overall performance n n From sub-departments and/or From all workers in the dept. – Organization n n Resources readiness (counts) Resources readiness (competence) – Individual (head) n n n Planning capability (% of work planned) TQM/6 -sigma project Patent application Employee training Industrial safety
Performance measure n PI, varying by individual’s functionality (& personal objectives) – Cost-related n Resources uptime n Resources utilization n Expense and overhead – Quality-related n Work quality n Re-work rate – Time-related n In-time work completion n Response time – Benefit related n Customer satisfaction
Performance measure n PI, an Example – For a machining worker n n n Equipment uptime In-time work completion Work quality Tooling consumption rate Equipment utilization – CAD/CAM worker n n Program error In-time work completion Tooling consumption rate Equipment utilization – For a design worker n n n In-time work completion Design change rate Design for manufacturability
Performance measure n Specific PI example – production engineer – – – – MPI accomplishment counts EC accomplishment rate Test counts to delivery Work load 6 sigma Training Industrial safety
T 7: Home work n Design a DPI and justify your design for: – A machining department, or – An FIU academic department (say, ISE) n The design should include, for each indicator – its name, formula, target value, data source, frequency, and weight. n Due: Next Week
Comments on T 7 HW Each performance measure is a formula or model. It should be quantitative and thus objective. n A target value can be a number, or a range. n The measured value and target value of each performance measure forms the basis for its performance (rating). n
- Ein volk ein reich ein führer
- Principles of complex systems for systems engineering
- Engineering elegant systems: theory of systems engineering
- Chen chen berlin
- Ein neuer tag und ein neuer morgen
- Slidetodoc.com
- Serisen
- Ein tag der sagts dem anderen mein leben sei ein wandern
- Ein hund ist ein herz auf vier pfoten
- Wann ist ein mann ein mann text
- Sah ein knab ein röslein stehn metrum
- Stromkreismodell
- Ein neuer tag und ein neuer morgen
- Trapez drache
- Florida international university ein
- Putting the enterprise into the enterprise system
- Putting the enterprise into the enterprise system
- University of florida mechanical engineering
- Application of enterprise resource planning
- Topic 2 free enterprise and other economic systems