Systems Engineering Management

1. Systems EngineeringManagement MSE607BChapter 7Organization for System Engineering

2. Learning Objectives • Explain the basic philosophy of design evolution • Explain the different types of organizational structures • Discuss advantages and disadvantages of each structure from a generic perspective • Emphasize the system engineering organization, its functions, organizational interfaces, and the staffing needed • Explain the implementation of Integrated Product and Process Development (IPPD) configuration • Explain customer, producer, and supplier relationships • Discuss human resources requirements

3. Developing the Organizational Structure • Must start by determining the goals and objectives for the overall company involved • The functions and tasks that must be accomplished • Depending on program complexity/size may assume a pure functional model, a project or product line orientation, a matrix approach, or combination thereof • Structure may change in context as the system development evolves • The ultimate goal is to achieve the most effective utilization of human, material, and monetary resources

4. Customer, Producer, and Supplier Relationships • A formal mechanism to ensure design will meet stated consumer need • Design evolves through iterations from initial definition to firm system configuration • Requirements verification process required from the beginning • Early detection of potential problems allows to incorporate necessary changes easily • An ongoing design review and evaluation effort is required • Overall review process through a combination of several approaches: • Informal day-to-day review and evaluation as design decisions are made and data developed. • Formal design reviews at designated stages in the evolution of design • Serve as a vehicle for communications • Serve as the formal approval of design data

5. Customer Organization and Functions • Range from one or small group of individuals to an industrial firm • Customer may be ultimate user or procuring agency for a user • Must recognize objectives from the beginning • Organizational entity needs to be established • System engineering may be accomplished within: • The customer’s organizational structure • The industrial firm or the producer’s organizational structure • May be any combination of models with split responsibilities • Customer must clarify system objectives and program functions • Requirements for system engineering must be well defined • When delegated to the producer, customer must completely support • Need to prepare a good, comprehensive, clear Statement of Work

6. Producer Organization and Functions • The producer will undertake the bulk of the system engineering activities • Need to have access to all information and data leading to the requirements specified in the RFP and IFB • The main objective is to ensure continuity in the transition from the activities accomplished by the customer to those to be performed by the contractor • This transition process is one of the most critical points in a program. • The specification and SOW must be complete • The next step to address is the contractor’s organizational structure. • Structures may vary from the pure functional to the project, the combined project-functional, the matrix, and so on

7. Producer Organization - Traditional Functionally Oriented Structure

8. Functional Organization Structure • The intent is to perform similar activities within one organizational component • Well suited for a single project operation, large of small. • For example, • All engineering work would be the responsibility of one executive • All production or manufacturing work would be the responsibility of another executive, and so on • Depth of the individual elements of the organization will vary with type of project and level of emphasis required • There are advantages and disadvantages associated with the pure functional approach

9. Advantages of A Functional Organization • Enables development of a better technical capability for the organization • Specialists grouped to share knowledge • The organization can respond more quickly to a specific requirement through the careful assignment of personnel • Larger number of personnel with required skills in given area • Budgeting and cost control are easier because of the centralization of areas of expertise. • Easier to estimate, monitor and control costs • The channels of communication are well established • There is no question as to who is the “boss”

10. Disadvantages of A Functional Organization • It is difficult to maintain an identity with a specific project • No single individual is responsible for the total project • Concepts and techniques tend to be functionally oriented with little regard for project requirements • There is little customer orientation or focal point. • Response to specific customer needs is slow • Because of group orientation, there is less personal motivation to excel • Innovation concerning generation of new ideas is lacking

11. Company ABC Product Line “X” Product Line “Y” Product Line “Z” • Program Management • Systems Engineering • Electrical Engineering • Mechanical Engineering • Reliability Engineering • Maintainability Engineering • human Factors • Components Engineering • Integrated Logistic Support (ILS) • Program Management • Systems Engineering • Electrical Engineering • Mechanical Engineering • Reliability Engineering • Maintainability Engineering • human Factors • Components Engineering • Integrated Logistic Support (ILS) • Program Management • Systems Engineering • Electrical Engineering • Mechanical Engineering • Reliability Engineering • Maintainability Engineering • human Factors • Components Engineering • Integrated Logistic Support (ILS) Product-Line/Project Organization Structure

12. President Company ABC Vice President Engineering Director Director Director Product Line “X” Communications Systems Division Product Line “Y” Transportation Systems Division Product Line “Z” Test and Support Systems Division Manager Manager Manager Project “A” Project “B” Project “C” Product-line organization with Project Subunits

13. Advantages of Project/Product Line Organization • The lines of authority and responsibility for a given project are clearly defined. • There is a strong customer orientation, a company focal point is readily identified • Personnel assigned to the project generally exhibit a high degree of loyalty to the project • The required personnel expertise can be assigned and retained exclusively on the project • There is a greater visibility relative to all project activities. • Cost, schedule and performance can be easily monitored

14. Disadvantages of Project/Product Line Organization • The application of new technologies tends to suffer without strong functional groups • Usually duplication of effort, personnel, and use of facilities and equipment • From a managerial perspective, it is difficult to effectively utilize personnel in the transfer from one project to another • The continuity of an individual’s career, growth potential, and opportunities for promotion are often not as good

15. Company DEF Design Assurance (R/M/HF) Integrated Logistics Support Production and Test Project Management Systems Engineering Design Engineering Software Engineering Project “A” Program Manager Project Responsibility • Program Management • Planning and Scheduling • Configuration Management • Data Management • Supplier Management • Project Review and Control Functional Responsibility Project “B” Project “C” Project “D” Matrix Organization Structure

16. Objectives of Matrix Organization • Managers and workers alike must be committed to the objectives if matrix management, as follows: • Good communication channels must be accomplished to allow for a free and continuing flow of information • Both project and functional department managers should participate in the initial establishment of companywide and program-oriented objectives • A quick and effective method for conflict resolution must be established to be used in the event of disagreement. • For personnel assigned to a project, project and the functional department manager should agree on • Duration of assignment • The tasks to be accomplished • The basis on which the individuals will be evaluated

17. Advantages of A Matrix Organization • Project manager can provide the necessary strong controls • Functional organizations exist primarily as support for projects • Strong technical capability developed and made available • Authority and responsibility for task accomplishment shared between project manager and functional manager • Key personnel can be assigned to work on a variety of problems • More effective utilization of technical personnel • Program costs can be minimized

18. Disadvantages of A Matrix Organization • A major disadvantage relates to the conflicts that arise on a continuing basis as a result of power struggle among project and functional managers • Each project organization operates independently • Possible duplication of efforts • May be more costly in terms of administrative requirements • Both projects and functional areas require similar administrative controls • The balance of power between the project and the functional organizations must be clearly defined and closely monitored • From perspective of worker - a split in the chain of command • Individual “pulled” between project boss and functional boss

19. Functional Organization Structure Showing IPPD/IPTs

20. Integrated Product and Process Development (IPPD) • A management technique that simultaneously integrates all essential acquisition activities through use of multidiscipline teams to optimize the design, manufacturing, and support process • Promotes communications and integration of key functional areas as they apply to various phases of program activity • From conceptual through detail design and development • Directly inline with system engineering objectives • To cause integration of the various features of design and the organizations involved in the design process

21. Integrated Product/Process Teams (IPTs) • May be established to investigate a specific segment of design, a solution for some outstanding problem, design activities that have a great impact on a high-priority TPM, and so on • The objectives of IPTs are: • To create a team of qualified individuals that can effectively work together to solve some problem in response to a given requirement • To provide necessary emphasis in critical areas and to reap the benefits of a team approach in arriving at the best solutions • The objectives of the team must be clearly defined • Team must maintain a continuous “up-the-line” communication • Longevity of IPT depend on nature of problem and the effectiveness of the team

22. System Engineering Organization • Function of system engineering must be oriented to the objective of bringing a system into being in an effective and efficient manner • Nature of the system engineering function require the existence of good communication channels • Successful fulfillment of system engineering objectives requires • specification of technical requirements for the system • Conductance of trade-off studies, • Selection of appropriate technologies, and so on

23. Producer Organization Combined Project - Functional Structure

24. Company KLM Engineering Production Administration Support Engineering Production Administration Staff Activities Company KLM Company KLM Request for Support Company KLM Company KLM Completed Tasks Company KLM Company KLM Company KLM Producer Organization – Work Flow

25. Company HIJ Engineering Support Business Operations • Marketing and Sales • Finance and accounting • Purchasing • Human Resources • Contract Management • Integrated Logistic Support • Logistic Support Analysis • Support Equipment • Spare/Repair Parts • Technical Publications • Training/Equipment • Transportation and Distribution • Customer Service • Manufacturing Engineering • Production • Fabrication • Inspection and Test • Modifications • Quality Assurance D C B A Project “Y” (Program Manager) Project “Z” Project “X” • Program Management • Scheduling/Coordination • Configuration Management • Data Management • Supplier Management E F Computer Aided Design Documentation Design Engineering Design Assurance System Engineering Software Engineering • System Requirements • System Specification • System Analysis • System Integration &Test • Design Review (s) • Electrical Design • Mechanical Design • Materials Engineering • Structural Design • Components Engineering • Reliability • Maintainability • Logistics Engineering • human Factors • Value Engineering • Operating Software • Maintenance Software • Production and Test Software • Software Validation • Design Standardization • Computer Applications • CAM/CALS Interface • Customer/Supplier Interface Major System Engineering Communication Links - Producer Organization

26. Large-scale Supplier Organization

27. Supplier Organization and Functions • “Supplier” refers to organizations that provide various materials and/or services to the producer • System engineering capability extended as identifiable function within the supplier’s organization. Supplier functions may include: • Conduct feasibility studies and define specific design criteria • Prepare a supplier engineering plan or equivalent • Accomplish synthesis, analysis, and trade-off studies • Accomplish coordination and integration of design activities • Prepare and implement test and evaluation plan • Participate in design reviews and critical design reviews • Review and evaluate proposed design changes • Initiate and maintain liaison with production activities • Initiate and maintain liaison with the producer

28. Human Resource Requirements • In considering organizational elements in system engineering, it is necessary to address the human resources requirements • Certain common objectives that should be met from the employer/employee standpoint: • Creating the organizational environment • Leadership characteristics • The needs of the individual • Staffing the organization • Personnel development and training

29. Creating the Organizational Environment • The study of organizations should address Structure, Processes, and Culture. • Structure is the formal pattern of how an organization’s people and jobs are grouped. • Processes are activities that give life to the organization chart • Culture defines appropriate behavior and bonds, motivates individuals, and governs the way a company processes information, internal relation, and values. • Personnel selected for system engineering must be highly professional • The system engineering group must have “vision” and be creative • A teamwork approach must be initiated within the group • A high degree of communication must prevail

30. Leadership Characteristics • The organization is a group of individuals with varying abilities, different roles and expectations, diverse personal goals, and distinct behavioral patterns • The challenge for the manager is to integrate the various characteristics into a cohesive force • Recognize personal characteristics of each individual to better match with job requirements • Inspire each individual to excel in his or her job by creating an atmosphere of personal interest • Be sensitive to employee problems related to their work • Evaluate employees on a personal basis • Initiate rewards promptly when warranted • Promotions and merit raises directed to best performers

31. The Needs of the Individual • The physiological needs, such as thirst, hunger, sex, sleep, and activity - the needs of the body • The safety and security needs - protection against danger, threat, and deprivation • The need for love and esteem by others, or social needs • The need for self-esteem and self-respect, and the respect of others • The need for self-fulfillment or the achieving of one’s full potential

32. Staffing the Organization • Requirements for staffing an organization initially stem from results of the system engineering planning activity • An entry-level system engineer should have the following skills: • Basic formal education at undergraduate and graduate levels in some field of engineering. • High level of general technical competence in engineering fields • Relevant design experience in the appropriate areas of activity • Basic understanding of the design requirements • Understanding of the system engineering process and tools • Understanding of the relationships between functions

33. Personnel Development and Training • Nearly every engineer wants to know how he or she is doing on a day-to-day basis and what the opportunities for growth are. The employee also needs to know when his or her work is unsatisfactory and improvements is desired. • Formal performance review is conducted on a regularly scheduled basis and the ongoing informal communications process takes place daily. • Opportunities for growth depends on • Climate provided within the organization and actions of the manager that allow for individual development • The initiative on the part of the engineer to take advantage of the opportunities provided • It is essential that individual personal growth takes place if that department it to function effectively

34. Personnel Development and Training (Cont) • Manager should prepare a development plan for each employee to allow and promote personal development, providing a combination of the following: • Formal internal training designed to familiarize the engineer with the policies and procedures • On-the-job training through selective project assignments • Formal technical education and training designed to upgrade the engineer • A technical exchange of expertise with others in the field

35. Summary • Explained the basic philosophy of design evolution • Explained the different types of organizational structures • Discussed advantages and disadvantages of each structure from a generic perspective • Emphasized the system engineering organization, its functions, organizational interfaces, and the staffing needed • Explained the implementation of Integrated Product and Process Development (IPPD) configuration • Explained customer, producer, and supplier relationships • Discussed human resources requirements

36. Interactive Workshop • Depending on the complexity and size of a program, the structure of a company may assume: • A pure functional model • A project or product line orientation • A matrix approach • A combination of (a), (b), and (c) • Any of the above

37. Interactive Workshop • The ultimate goal of organizational structure is to achieve: • The most effective utilization of human, material, and monetary resources in accomplishing the functions that are required • The most effective organization to compete with other companies in accomplishing the functions that are required • To make sure that management positions have maximum authority and power • None of the above

38. Interactive Workshop • One of the advantages of pure functional organizational model is: • Authority and responsibility for task accomplishment shared between project manager and functional manager • The organization can respond more quickly to a specific requirement through the careful assignment of personnel • Personnel assigned to the project generally exhibit a high degree of loyalty to the project • None of the above

39. Interactive Workshop • IPTs are created for the purpose of: • To effectively work together to solve some problem in response to a given requirement • To provide necessary emphasis in critical areas and to reap benefits of a team approach in arriving at the best solutions • To create a team and demonstrate “teamwork” is practiced in the organization • Both (a) and (b) are correct

40. Interactive Workshop • In considering organizational elements in system engineering, it is necessary to address: • The personalities of senior management • The system functional requirements • The human resources requirements • The functional baseline of the system

41. Homework Assignment • Chapter 7 – Textbook page 377 • Answer questions 1, 3, 4, 9, and 16. • Read Chapter 8 - Engineering Program Planning • Pages 379-391

42. Questions? Comments?