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

1 APLS/CALS EUROPE 99 Copyright FREE

FFREEREE Co-operation in virtual Co-operation in virtual

organisation;organisation;The resultsThe results

C. HofProject co-ordinator


FFREEREE

•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 : 23286

Models, tools and systems to realise aFast Reactive Extended Enterpriseto meet the customers demand in industrial markets

A European project cooperation between:


OverviewOverview

• FREE definition• FREE objectives• FREE products• FREE usebility


FREE definitionFREE 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


Today’s Operational ProblemsToday’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


Motivations for the FREE Motivations for the FREE projectproject

• 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


Project scopeProject 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


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 arrangementsfacilitating communication &

collaboration– Shared processes between partners

management, adaptation, support– People and other resources

knowledge, technologies, etc...


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


FREE results Overall FREE results Overall architecturearchitecture

FREEImprovement

Manual

FREEImprovement

Manual

FREE-PMMManual

FREE-CAFReference

Manual Quick Scan

FREE-PMMlibrary

FREE-CAFReference

Model Navigationtool

FREEModel

Ready for use documents

or as easy

access CD-ROM

FREEImprovement

Manual

FREE-PMMManual

FREE-CAFReference

Manual

FREE-SME


MARKET SEGMENTATIONMARKET SEGMENTATION

SME’s Consortium

VerticalIntegration

Business Brokeror Integrator

HorizontalIntegration

Main-subcontractor

Large Enterprise

BusinessNetwork

SME’sCommunity


Measurement consequencesMeasurement 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/PIevolution


Building infrastructureBuilding infrastructure

Immaturity of technologyImmaturity of technology

IntercompanyIntercompany trainingtraining

Creating collaborative Creating collaborative mentalitymentality

Opening company boundariesOpening company boundaries

CostCost

Rewarding employees for Rewarding employees for collaborationcollaboration

00 1010 2020 3030 4040 5050 6060 7070 8080

SecuritySecurity

Collaboration implementation challenges(FREE 1997)

Industrial expectations of FREEIndustrial expectations of FREE


Structuralalignment

Collaboration

CommunicationCAF

PMM

Process operation

Influences

Checks Checks Checks

Influences

outcomeModel

represents

FREE ContextFREE Context


Static - Dynamic relationStatic - Dynamic relation

Communication process Virtual enterprise

process operation

Formal communication between partners

Informal communicationbetween partners

Degree of integration between partners

Degree of overlapof tasks between partners

Product developmentsuccess (costs,quality and time)

Positive relation

FREE-CAFFREE-CAF

FREEstructure

FREE-PMMFREE-PMMFREE-PMMFREE-PMM

Structural alignment

Actual alignment

Positive relation


Improvement scenarioImprovement scenarioImplementation & Evaluation

business case &project plan

analysis phaseorientation phase

businessobjectives

critical success factors

improvementactivities

projecttriggers

businessissues

organisational model / quickscan

capability assessment framework

performance measurement method

preferred project management method

enterprisefunctions

improve-mentscenarios

project plan

evaluation

key process areas


FREE-CAF focusFREE-CAF focusEnvironment

Strategic level

Adaptive levelOperational level


Dataconsolidation

Rating Findings

Reporting

Follow up

Verifying

CMMCMMProcessProcess

Sponsorship

Planning Preparation

Data collection

Scope definition

Commitment to perform

Ability to perform

Activities performed


• Allianceenforcement

• Leadership• Business planning• Policy & strategy• Marketing• Customer

satisfaction

Structuralarrangements

• Communicationstructure

• Team structure• ProcedureCultural

arrangements• Participatory

culture• Policies

Managementprocesses

•Decision Process•Conflict resolutionprocess

•etc.Engineeringmanagement

•Configuration & data management

•Peer reviews•etcCommunication management

Process management

People management

• Developing capabilities

• Motivating & managingperformance

• Shaping the workforce

Technology management

Knowledge management

Infrastructure management

FREE Key Process AreasFREE Key Process AreasEnterpriseintegration

Organizationalarrangement

SharedProcesses Resources


Assessment goalsAssessment goals

• 1

• 2

FREE

Assessment: - FREE - Partners


Improvement scenarioImprovement scenarioImplementation & Evaluation

business case &project plan

analysis phaseorientation phase

businessobjectives

critical success factors

improvementactivities

projecttriggers

businessissues

organisational model / quickscan

capability assessment framework

performance measurement method

preferred project management method

enterprisefunctions

improve-mentscenarios

project plan

evaluation

key process areas


Type of measurementType of measurement

?

Capability focus

Levels of maturity

Business focus

VisionaryManagement

ProgramInitiation Mgmt

ProgramOperation Mgmt


Contingency factorsContingency factors

FREE-PMM

STRATEGY CONTROLLINGPHILOSPHY

EXTERNALREPORTS

MANAGEMENTSTYLE

BRANCH DEVELOPMENTS

COMPANY PROCESSESSTRUCTURE

CULTURE

DEGREE OFAUTOMATION

SIZE OFTHE FREE

SIZE OFTHE PARTNERS


PM MethodPM MethodContingency

factors

T,Q,C goals project planning

process overlapintegration

degree

(in)formalcommunication

toolsActual and

activity alignment

PIreference values

PI ofcommunication

tools

Communicationprocess

measurement

Transformationprocess

measurement

Feedbackloop


Collaboration measuresCollaboration 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


ChallengesChallenges

• 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)


Expected FREE insights Expected FREE insights (partner point of view)(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


Conclusion: An integrated suiteConclusion: An integrated suite

FREE Improvement ManualFREE Improvement ManualFREE Improvement ManualFREE Improvement Manual

FREEFREEPerformancePerformanceMeasurementMeasurement

FREE-CAFFREE-CAFAssessmentAssessmentMethodologyMethodologyDynamic

behaviourStatic

organisation

FREE-CAFModel

Navigationtool

OrganisationalmodelCSFCSF PIs

triggers

ContinuousContinuousimprovementimprovement

ProcessProcess

ContinuousContinuousimprovementimprovement

ProcessProcess

BusinessBusinessissuesissues


On-going activities !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


ContactContact• Contact for more detailed

information or to get the FREE reports or CD-ROM

• Look at: www.kcc.nl/free and down-load the navigator.

• Kees (C) Hof ()31 74 248 3288• [email protected]


Documents

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