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Organisational problems and issues of CIM systems design
Journal of Materials Processing Technology 76 (1998) 219 – 226
Organisational problems and issues of CIM systems design Krzysztof Santarek * Faculty of Production Engineering, Institute for Organisation of Production Systems, Warsaw Uni6ersity of Technology, 85 Narbutta St., 02 – 524 Warsaw, Poland Received 28 May 1997; received in revised form 13 June 1997
Abstract The need for intraorganisational integration has arisen from the necessity of better co-ordination of complex tasks and processes, which result from the increasing specialisation of work and the partitioning of an organisation. There are several forms and tools of integration. The paper concerns technical integration using information technologies (CIM). Its goal is better co-ordination of tasks and, therefore, provision of higher flexibility, lead time shortening, production costs reduction and quality improvement. Design and implementation of CIM is, therefore, not only a technical problem, but, above all, an organisational one, which has strategic impact on the enterprise. The paper will discuss some organisational problems of CIM design and implementation. © 1998 Elsevier Science S.A. All rights reserved. Keywords: Intraorganisational integration; Interorganisational integration; Computer integrated manufacturing (CIM); Process management
1. Introduction
2. CIM as a tool for competitiveness of an enterprise
The need for intraorganisational integration has arisen from the division of labour, specialisation of workers, partitioning of an organization and, as a result, from the need to co-ordinate complex tasks and processes. There are several forms and tools of integration. The paper concerns technical integration using information technologies (CIM). Its goal is better coordination of tasks and, therefore, provision of higher flexibility, possibility of time compression, production costs reduction and quality improvement. Design and implementation of CIM is, therefore, not only a technical problem, but, above all, an organisational one, which has strategic impact on the enterprise. The paper discusses some organisational problems of CIM design and implementation: strategic importance of CIM for an enterprise, computer integration of an enterprise as a tool for efficient process management, development and implementation of CIM architecture models, cross-functional integration within the enterprise, computer integration of co-operating enterprises.
The need for intraorganiastional integration emerged as the principles of scientific organisation of work became common in the industrial practice. The principles go back to the times of the first industrial revolution and the labour division rule formulated by Adam Smith in 1776. At the beginning of the 20th century, Smith’s concept was further developed by F.W. Taylor and his successors in form of the principles of the so-called scientific organisation of work. They resulted in an extension of the labour division rule onto, among others, administrative tasks and organisational units of an enterprise. The increasing complexity of manufacturing processes and growing size of manufacturing systems led to difficulties in co-ordination of such partitioned (divided) organisations. The symptoms of the difficulties included high indirect costs, low flexibility, long times required to implement innovations, internalisation of goals, problems with quality assurance and, as a consequence, deterioration of competitiveness. To ensure co-ordination of activities of many performers has become one of the key issues. Co-ordination can be achieved in many ways (Fig. 1). Integration is one of them. The term integration means unity, connection and interrelations between elements
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and processes of a given manufacturing system. Functional integration means incorporation of the necessary processes and functions connected with performance of specific tasks into the manufacturing system. Technical integration means physical unity of the system elements. Technical integration can concern equipment, information and data. Integration of equipment consists in physical adjustment of technical resources, enabling their co-operation. Integration of data consists in a possibility to use data in different subsystems of an enterprise, which requires standardisation and compatibility of their structure. Integration of information, in turn, concerns the ways of data flow and control. IT tools currently constitute the basic ways of technical integration of manufacturing systems. A manufacturing system which has all the basic functions integrated with the use of IT tools is called the computer integrated manufacturing (CIM) system. In management processes, an especially important role is played by the flow of information between participants of an organisation. Information media include technical means and people. Therefore, apart from the above-mentioned functional and technical integration, also social integration is distinguished. It takes many forms: integration of management, integration of functional employee teams, integration of users. Social integration is not the opposite of technical integration; it rather constitutes its supplement. People work also in highly automated, computer integrated manufacturing systems, such as FMS or CIM. The problem consists in rational division of functions between the man and the machine, as well as correct way of integration (co-operation) of the man and the machine. Technical and social integration create an integrated manufacturing environment [1]. New conditions of enterprise functioning: strong competition, globalisation of the activity, priority of the customer’s needs and increasing requirements imposed on enterprises in the area of quality, costs, delivery time, flexibility (market requirements), as well as the related internal requirements of the organisation (systemic requirements): small inventory of in-process works, short lead times, etc. they all require more effective management of processes within an enterprise. Among these, especially important are interfunctional (horizontal) processes, implemented by different functional units, ‘across’ the enterprise, the results of which
Fig. 1. Integration as one form of co-ordination of activities.
directly impact the achievement of the main goals of the enterprise. These processes form a value chain [2], encompassing both basic and support processes, material as well as information and control ones [3]. The value chain of an enterprise is part of a broader network of processes constituting a value system. The system also includes the supplier value chain and the customer (distributor) value chain. Therefore, the need for integration equally concerns the employees, the organisational units, the processes and the subsystems of an enterprise, and those of co-operating enterprises. In the first case, we talk about intraorganisational integration, while in the second case, about interorganisational integration. The need for interorganisational integration grows together with the development of collaborative forms of co-operation between enterprises and the extension of logistic chains of interrelations between them. New concepts of organisation and management: agile manufacturing, lean management, business process re-engineering strongly emphasise the significance of improved management of an enterprise processes and computer integration, using advanced information technologies [4–6]. The purpose is to satisfy the customers’ needs better, to increase competitiveness and to improve economic results of an enterprise. Improvement of processes and better co-ordination of the performers’ activities, resulting from integration are, on the other hand, the means and the tools. Implementation of CIM is, therefore, of strategic importance for an enterprise. Computer integration of an enterprise is chiefly an organisational undertaking, connected with a change of the enterprise processes and structures, as well as people’s attitudes and behaviours.
3. Models of CIM architecture. CIM is a concept of production realisation using, to the maximum extent possible, integration of information flows in an enterprise. According to CIM concept, all processes connected with product manufacturing, material as well as information and decision-making ones, would be integrated through appropriate IT systems. Processes covered by integration include, first of all, production preparation and planning, manufacturing, control of material flow and inventory, quality control and others, which are not directly connected with the production process. CIM concept has three sources: flexible manufacturing systems (FMS’s), which emerged as a result of the development of NC/CNC numerical control techniques, graphical data processing systems, affording possibilities for computer support of development (R and D), product construction and production planning processes,
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Table 1 Significance of the selected directions of CIM systems integration Type of production
1. 2. 3. 4. 5. 6.
Production planning/control CAD/CAM Base data Production control/CAM Internal/external data Production-accounting/costs
Unit production
Batch production
Mass/high-volume production
-
-
Significance: big; medium -; small .
IT systems supporting management of individual subsystems within an enterprise: accounting, personnel and remuneration, production planning, material management, etc. At the beginning of 1980s, the three lines of development of IT application in an enterprise were combined into an overall vision of an enterprise, called CIM. There are may concepts of CIM construction, called CIM architecture. CIM architecture is formed by a set of models representing different aspects of a CIM system. CIM architecture models encompass CIM system elements and interrelations between them, explaining what CIM consists of, how it functions and how to transform a model into an operating system. One of the first CIM concepts was the functional model, derived from four functions of an enterprise connected with production: product construction design, production processes planning, production flow control and production automation. In Germany, an attempt to define CIM was undertaken in 1985 by Ausschuss fu¨r Wirtschaftliche Fertigung (AWF). The model involves technical and information interrelations between CAD, CAP, CAM, CAQ and PPC, and provides for utilisation of a common data base. The functional and AWF models have become the basis for the development of a number of other models of CIM architecture, including such known models as, e.g. ‘Y-CIM’ by A.W. Scheer [7]. Other well-known models of CIM architecture include: ICAM (Integrated Computer Aided Manufacturing), CAM.I (Computer Aided ManufacturingInternational), CIM-OSA (Computer Integrated Manufacturing-Open System Architecture, developed as part of ESPRIT 688 project), COSIMA (Control Systems for Integrated Manufacturing, developed as part of ESPRIT 477 project), OCS (Open CAM System created as part of ESPRIT 418 project) and others [8]. CIM architecture models can also be treated as a basis for CIM design and implementation. Namely, they indicate rational directions of computer integration of an enterprise, technically justified and affording possibilities for achievement of complex goals of the
enterprise. Using, e.g. Scheer’s ‘Y-CIM’ models, one can distinguish six typical directions of CIM integration (Table 1). Their significance is different for different enterprises, depending on their specific needs. Table 1 presents the scope of usability of the listed directions of CIM integration depending on the type of production. CIM architecture models describe the hierarchical structure of an enterprise, from many points of view, to satisfy the needs of different users. Together with CIM architecture models, specific methodologies and tools (methods) were developed, facilitating the implementation of the CIM model in the enterprise. The methodologies and methods make extensive use of specification approach, as well as graphic models of production systems and processes. In many cases, computer implementations of the methods were also developed to support the process of modelling, analysis, design, programming and documentation.
4. Modelling of the flow of materials, information and decision-making processes in CIM. The methods of modelling and design of integrated manufacturing systems should support CIM design process in all the phases of its life cycle. Special importance is assigned to the phase of specification of the requirements. Decisions made in this phase determine the structure of the system, investment expenditures, operation costs, possibilities of further extension and changes of the system, etc. The purpose of specification of the requirements is to establish a list of functions and activities which should be realised by the manufacturing system, so that the system should: meet its objectives, be easy to be integrated into the existing environment, use, as far possible, standard solutions of subsystems (modules), ensure integration of elements and processes in the designed system at each stage of the design.
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The methods of modelling and design of integrated manufacturing systems make extensive use of the concepts, experiences, as well as modelling and design tools of IT systems. They are aimed at presenting the manufacturing system: in a way which would be comprehensible for all the participants of the design process, especially for the future users of the system, decision makers and people providing information necessary for the design, enabling teamwork of the system designers and users, enabling fast development of the system design, especially the development of software, taking into account multiple aspects of the project (possibility to model different elements, processes and subsystems of the integrated manufacturing system). Graphic models: diagrams, drawings, tables, etc. constitute the basic way of presentation of integrated manufacturing systems. Application of these models requires the use of an appropriate: design methodology, tools supporting the construction of the models, including computer software. Without going into details of design methodologies, it is necessary to emphasise that they apply a process approach to the production system and a top-down analysis. The process approach consists in treating the manufacturing system under design as a set of concurrently implemented processes. The top-down analysis assumes gradual decomposition of the system into increasingly small elements-functions and activities. The basic models of processes include actigrams and datagrams. Actigrams are networks whose nods represent activities (functions, operations, etc.) and arcs represent interrelations between them (e.g. relations of sequence of activities). Actigrams are used for modelling of processes connected with the flow of both materials and information. Datagrams are chiefly used for modelling of information flow. These are networks whose nodes represent definite forms of data and arcs represent data processing activities. Actigrams and datagrams are used in data flow diagrams (DFD). Another method of integrated manufacturing systems design is GRAI. The GRAI method uses its own, specific model of a production system (the so-called GRAI model), which exposes decision-making processes. Two types of models are used in the GRAI method to describe the decision-making process: GRAI grids and GRAI nets. GRAI grids serve the purpose of decomposition of the decision making process in two sections: of functions (organisational units) of an enterprise and of the decision-making level (organisational structure level), which corresponds to different planning horizons, as well as frequencies of preparation (updat-
ing). GRAI grids are then used for the development of GRAI nets, which constitute a certain modification of actigrams. A special place among the methods of integrated manufacturing systems modelling and design is occupied by SADT and IDEF. SADT (structured analysis and design technique) uses actigrams. The designed/ analysed manufacturing system is, in subsequent steps, gradually decomposed into increasingly detailed activities. The decomposition of the manufacturing system results in a set of hierarchically interlinked diagramsactigrams. IDEF0 (ICAM Definition 0), created together with the ICAM architecture model, is a variant of SADT method. IDEF0 is used for modelling of a functional system-decomposition of the production system in accordance with the functions (activities) performed therein. IDEF0 method is currently a standard tool of integrated manufacturing systems modelling and design. A big advantage of the method consists in availability of computer programs supporting its implementation, e.g. Design/IDEF. Together with IDEF0, other methods have also been developed, among others: IDEF 1 for modelling of information flow in the production system, IDEF 1X, as an extension of IDEF 1, for modelling of the production system information structure, IDEF 2 for dynamic modelling of the manufacturing system (simulation models), IDEF 3 for modelling of processes in the system. The above-mentioned Design/IDEF program constitutes the implementation of IDEF0, IDEF1 and IDEF1X methods. Figs. 2 and 3 show IDEF0 models of a simple production system consisting of one lathe, two storage places at the input and the output of the system, as well as a robot which loads and unloads parts from the machine. Due to very differentiated and individual nature of enterprises, their size, organisational structure, product mix, technologies used, etc. application of ready CIM systems has never been attempted. On the other hand, a principle of integration of the available CIM subsys-
Fig. 2. A0 diagram ‘Make an object’.
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The developed software enables automatic generation of Petri nets on the basis of IDEF0 structural models, as well as analysis of the Petri net aimed at testing: (a) the correctness of the production system structural model, (b) the properties of the Petri net (and, indirectly, of the production system), such as liveliness, lack of deadlocks, etc. The conducted works are aimed at a synthesis of control of dynamic discrete systems, such as flexible manufacturing cells, flexible manufacturing systems, transport systems, etc. Fig. 3. The result of the decomposition of A0 diagram.
5. Intraorganisational integration. tems has been adopted. The implementation of this concept is possible thanks to the use of the so-called CIM reference models. They are a subset of CIM architecture models expressed in a specific language, the most frequently a graphic one, e.g. IDEF0. A reference model usually concerns a certain business unit of the enterprise and is of universal nature, i.e. it can be used in different enterprises, irrespective of their size, organisational structure, the existing IT system, etc. Reference models are then made more detailed and adjusted to the specific conditions of an enterprise. The application of reference models facilitates and accelerates the process of CIM design and implementation, ensuring coherence of the constructed system at each step, making it possible to apply ready functional models, re-use the existing solutions and modify them easily. Having a set of referential models makes it easier for an enterprise to design and implement organisational changes. The Institute for Organisation of Production Systems of the Warsaw University of Technology is developing a set of referential models used in enterprise restructuring processes, and as an aid for implementation of IT systems in particular in small and medium enterprises. Structural models constitute only a static description of the production system: specification of the system activities and their interrelations. In design, it is also necessary to evaluate the correctness of the constructed functional model, as well as to specify the system parameters, i.e. productivity, length of lead times, work station loading, size of in-process work inventory, identification of bottlenecks, etc. Petri nets are efficient tools for production systems modelling and analysis. In a simple way, they enable dynamic description of a sequence of interdependent and asynchronic events: the beginning and the end of a technological operation, inspection, transport, change of tools, etc. A method of automatic generation of Petri nets and SLAM simulation models on the basis of SADT/IDEF0 structural models has been developed [9]. Fig. 4 presents a Petri net obtained as a result of transformations of IDEF0 model shown in Fig. 3.
An important direction in the development of computer integrated manufacturing is involved with systems which support management of an enterprise, such as MRP (material requirements planning) systems. MRP systems constitute a set of logically interrelated procedures, decision-making rules and sets of data which make it possible to transform the program of finished products production flow into a demand for supplies of all the finished product components, appropriately spread over time. MRP II (Manufacturing Resources Planning) systems constitute the second generation of MRP systems. In MRP II, the creation of production plans and schedules takes place with consideration given to the availability of material resources: machines and equipment, tools, etc. as well as balancing of tasks with production capacities. Modern MRP/MRP II systems are integrated systems supporting management of the whole enterprise. MRP systems impose on enterprises high requirements concerning availability of current information in the data base, scrupulousness of entering/updating of data by all the system users, discipline of all the employees using the services of the system, formalisation of activities-strict compliance to the discipline imposed by the system. Application of the existing, large CIM systems in small and medium enterprises is not efficient, because of high purchase and operating costs, as well as low degree of utilisation of the capacity of such systems in the existing organisational and production conditions of these enterprises. Many modules of the existing systems are oversized, i.e. contain numerous functions which will not be applied, or are useless for small and medium enterprises. It is also necessary to consider the fact that the speed of structural changes in small and medium enterprises frequently exceeds the possibilities of adaptation of the existing software. As a result, managers of such companies usually use simple, not integrated IT tools, such as inventory control, material and ware-
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Fig. 4. A Petri net obtained as a result of transformations of SADT/IDEF0 model shown in Fig. 3.
house management software, financial and accounting systems, sale service, personnel and remuneration systems, etc. More advanced systems, supporting production management, cost calculation, quality and environmental management are, in this case, too costly, difficult, or even impossible to implement and operate. Demand for CIM type integrated systems for management of manufacturing processes exists not only in case of industrial production, but also in other domains of economic activity: trade, processing, transport, etc. Small and medium enterprises require management systems which would allow for the complexity of these enterprises, as well as the need of fast and deep structural changes. The architecture of CIM systems for small and medium enterprises should, therefore, integrate the structure and CIM systems development processes in several sections: functional and organisational, encompassing individual functional models of the systems, as well as organisational units and processes of the enterprise, CIM system development, consisting in the possibility to use standard methodology of enterprise management in the whole life cycle of the CIM system, technical, making it possible to apply both open, client-server systems (for larger enterprises) and simpler solutions (the so-called small economic integration) using, e.g. the existing local networks, exchange of information through modems and the internal telecommunication network of the enterprise. Therefore, development of computer integration principles and tools for small and medium enterprises requires the following: application of well-known and tested methods, such as SADT (structured analysis and design technique) and OMT (object oriented technology), as well as their modifications for CIM systems modelling, utilisation of standard software modules to the greatest possible extent, consistent compliance with the principle of cost minimisation in the process of software development and implementation through:
small technical integration (the so-called small economic integration) using the existing resources of the enterprise, including local networks; broad application of reference models of typical processes, minimisation of the costs of integrated tools achieved through their specialisation in accordance with the needs of enterprises and the use of standard tool and application software packages. The intention of the research team is to develop CIM design tools (called ToolKit), using SADT and OMT, and supporting the following processes: 1. business process re-engineering as a complex method of enterprise management, 2. analysis, design and implementation of production management systems in the following scope: material flow control module, including lower level modules: organisation building module, technology module, production planning and control module, cost calculation module strictly connected with material flow control module, quality management module, using data generated in each phase of the production process. Integration of design tools is performed with the use of IDEF methods in the following sections: 1. integration of IDEF0 models with IDEF1X model (which is already partly realised in Design/IDEF software package), 2. integration of IDEF0 models with Petri net models and simulation models, 3. integration of IDEF0 models with standard tools such as MS Project. The developed tools in the area of (2) make it possible to support the as-is – what-is – to-be decision-making chain. Integration of IDEF0 models with MS Project software package is also a new approach. Integration of IDEF0 models and the standard enterprise management software affords possibilities for construction of a software package which would be fully adjusted to the
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needs of small and medium enterprises. In the second stage of the project, other (mainly standard) software packages will be added: finance and accounting, fixed assets management, personnel and remuneration, purchasing and sales, etc.
6. Interorganisational integration — integration of co-operating enterprises. Enterprises functioning in the sphere of production and distribution (trade), wanting to achieve their goals, have to enter into increasingly numerous and differentiated, direct and indirect relationships with other enterprises. These relationships are accompanied by flows of goods, information and money and, consequently, different forms of integration of enterprises. There are a number of premises causing development of interorganisational integration of enterprises. Enterprises, searching for ways to improve efficiency of their activity, often choose decentralisation of their management. It takes different forms: creation of autonomous units within an enterprise (the so-called cost centres, profit centres), development of external co-operation and delegation of performance of specific enterprise functions and tasks to external units (outsourcing), creation of new forms of co-operation between independent enterprises (including the so-called network structures). The second trend is growth of concentrative forms of economic co-operation between enterprises, resulting from capital concentration (e.g. holding companies), horizontal integration, etc. What distinguishes concentrative forms of co-operation between enterprises from collaborative forms is joint management and limitation of legal and organisational independence of organisational units. In each case, efficiency of such co-operation between enterprises largely depends on co-ordination of their collaboration. External factors which enhance development of interorganisational integration include: legislative changes concerning international merchandise trade and the related detailed regulations pertaining to, e.g. transport (trade liberalisation), globalisation of the activity of numerous enterprises; this concerns both production and trade activity (purchasing and sale of products), increase in quality requirements concerning all the participants of the production process, popularisation of ISO 9000 quality assurance system standards, development of IT infrastructure, as well as an increase of availability and scope of IT services: exten-
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sive networks, Internet, mobile telephone, satellite communication, etc. We will illustrate the above trends with several selected examples of interorganisational integration, which do not, however, exhaust all the possible forms and solutions: (1) Joint advanced development (JAD) concept is an example of collaborative form of production preparation organisation, according to which suppliers of component parts participate in the development of a new product and technology design together with the final product manufacturer. Joint preparation of production of a new product requires closer integration of the participants. This can be achieved by computer integration. Computer integration using interactive computer simulation tools makes it possible for designers working in different places to work together on a ‘virtual product’ design. (2) Value-adding partnership (VAP) constitutes one of the collaborative forms of relationships between enterprises. It is composed of a set (network) of independent enterprises (conglomerates of enterprises), which closely co-operate with one another, performing joint management of goods and services flow in the whole value added chain [10]. Value-adding partnership constitutes an effective form of co-operation, especially between small enterprises. Its implementation is facilitated by technical innovations, more important of which include: 1. universal availability of personal computers (PC), user friendly programming languages and systems, cheap tool software packages (word processors, spreadsheets, data bases, etc.); 2. application of data interchange standards, bar codes, etc.; 3. network services development; 4. computer-aided design; 5. computer-aided manufacturing. Value-adding partnership does not, of course, depend solely on the availability and application of modern information technologies. It can develop as a result of IT links between enterprises, or can exist before such links have been established. Information technologies facilitate communication between enterprises, distribution of information and fast response to a change in the market demand. (3) Lean production concept strongly emphasises integration of the logistic chain, including the network of suppliers, final product manufacturers and customers [6]. It assumes that both customers and component parts suppliers should be included in the production system. The need for close integration of the network of suppliers, final product manufacturer and customers is connected with co-ordination of the flow of materials (raw materials, components for production, final products), information (customers’ orders for final products,
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orders for supplies of component parts) and money (settlement of receivables and payables). Close co-ordination of enterprises in such a logistic chain is achieved through computer integration of planning and production control, material and warehouse management, as well as financial and accounting systems of the co-operating enterprises. An example of suppliers and manufacturers integration tools is provided by ODETTE (Organisation of Data Exchange by Tele-Transmission in Europe) standards. The purpose of ODETTE is to implement EDI (electronic data interchange) technology in the automotive industry. Interorganisational CIM models constitute a more advanced concept of interorganisational integration. CMSO (CIM for Multisupplier Operations) is an example here, encompassing three sequences of interrelations (chains) [11]: production, distribution, product development and servicing. The purpose of this model is to improve efficiency of the whole supplier/ customer chain, understood as improvement of the level of customer service, which, in turn, involves such factors as quality, price, delivery time, innovation and extent of product mix.
7. Conclusions What is becoming increasingly important among the factors which determine competitiveness of enterprises is time: lead time, time needed to start manufacturing of new products, supply cycle length encompassing the entire logistic chain, as well as time derivatives, such as flexibility, i.e. easiness and speed of product mix changes, possibility of manufacturing various products in short runs and in any sequence according to individual customer’s requirements, costs and reliability of supplies. Integration is an effective way of achieving these objectives. The increasing number and scope of collaborative forms of co-operation between enterprises creates premises for the development of interorganisational integration of enterprises, using information
.
technologies. This is possible thanks to already significant experiences in the area of intraorganizational integration of enterprises, using, among others, MRP/MRP II systems, as well as the development and availability of information technologies and services, including especially those in the area of tele-transmission (extensive networks, Internet, EDI).
Acknowledgements This research was partly supported by the Committee of Scientific Research, Grant no 1445/HO2/95/08
References [1] D. O’Sullivan, Development of integrated manufacturing system, Comput.-Integr. Manuf. Syst. 6 (1993) 2. [2] M.E. Porter, Competitive Strategy: Techniques for Analysing Industries and Competitors, Free Press, New York, 1980. [3] S. Chajtman, Information systems and processes (in Polish), PWE, Warsaw, 1986. [4] M. Hammer, J. Champy, Reengineering the corporation, in: A Manifesto for Business Revolution, Nicholas Brealey, London, 1993. [5] P.T. Kidd, Agile Manufacturing, Forging New Frontiers, Addison-Wesley, Reading, MA, 1994. [6] J.P. Womack, D.T. Jones, D. Roos, The Machine that Changed the World, Maxwell Macmillan, New York, 1990. [7] A.W. Scheer, CIM-Strategie als Teil der Unternehmensstrategie, Springer Verlag, Berlin, 1990. [8] K. Santarek, Design of integrated manufacturing systems (in Polish), in: IV National Conference on Robotics (Conf. Proc.), Institute of Technical Cybernetics, Wroclaw Technical University, 1993. [9] K. Santarek, I.M. Buseif, Modelling and design of flexible manufacturing systems using SADT and Petri nets tools, CAPE, 13th Int. Conf. on Computer-Aided Production Engineering, Conference Proceedings, Warsaw, 11 – 13 June, 1997. [10] R. Johnston, P.R. Lawrence, Beyond vertical integration—the rise of the value-adding partnership, vol. 66, Harvard Business Review, July – August, 1988. [11] S.G. Tzafestas, Modern manufacturing systems: an information technology perspective, in: Tzafestas S.G. (Ed.), Computer-Assisted Management and Control of Manufacturing Systems, Springer, Berlin, 1997.
Organisational problems and issues of CIM systems design Krzysztof Santarek * Faculty of Production Engineering, Institute for Organisation of Production Systems, Warsaw Uni6ersity of Technology, 85 Narbutta St., 02 – 524 Warsaw, Poland Received 28 May 1997; received in revised form 13 June 1997
Abstract The need for intraorganisational integration has arisen from the necessity of better co-ordination of complex tasks and processes, which result from the increasing specialisation of work and the partitioning of an organisation. There are several forms and tools of integration. The paper concerns technical integration using information technologies (CIM). Its goal is better co-ordination of tasks and, therefore, provision of higher flexibility, lead time shortening, production costs reduction and quality improvement. Design and implementation of CIM is, therefore, not only a technical problem, but, above all, an organisational one, which has strategic impact on the enterprise. The paper will discuss some organisational problems of CIM design and implementation. © 1998 Elsevier Science S.A. All rights reserved. Keywords: Intraorganisational integration; Interorganisational integration; Computer integrated manufacturing (CIM); Process management
1. Introduction
2. CIM as a tool for competitiveness of an enterprise
The need for intraorganisational integration has arisen from the division of labour, specialisation of workers, partitioning of an organization and, as a result, from the need to co-ordinate complex tasks and processes. There are several forms and tools of integration. The paper concerns technical integration using information technologies (CIM). Its goal is better coordination of tasks and, therefore, provision of higher flexibility, possibility of time compression, production costs reduction and quality improvement. Design and implementation of CIM is, therefore, not only a technical problem, but, above all, an organisational one, which has strategic impact on the enterprise. The paper discusses some organisational problems of CIM design and implementation: strategic importance of CIM for an enterprise, computer integration of an enterprise as a tool for efficient process management, development and implementation of CIM architecture models, cross-functional integration within the enterprise, computer integration of co-operating enterprises.
The need for intraorganiastional integration emerged as the principles of scientific organisation of work became common in the industrial practice. The principles go back to the times of the first industrial revolution and the labour division rule formulated by Adam Smith in 1776. At the beginning of the 20th century, Smith’s concept was further developed by F.W. Taylor and his successors in form of the principles of the so-called scientific organisation of work. They resulted in an extension of the labour division rule onto, among others, administrative tasks and organisational units of an enterprise. The increasing complexity of manufacturing processes and growing size of manufacturing systems led to difficulties in co-ordination of such partitioned (divided) organisations. The symptoms of the difficulties included high indirect costs, low flexibility, long times required to implement innovations, internalisation of goals, problems with quality assurance and, as a consequence, deterioration of competitiveness. To ensure co-ordination of activities of many performers has become one of the key issues. Co-ordination can be achieved in many ways (Fig. 1). Integration is one of them. The term integration means unity, connection and interrelations between elements
* Fax: + 48 22 499798; e-mail: [email protected] 0924-0136/98/$19.00 © 1998 Elsevier Science S.A. All rights reserved. PII S 0 9 2 4 - 0 1 3 6 ( 9 7 ) 0 0 3 5 1 - 8
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and processes of a given manufacturing system. Functional integration means incorporation of the necessary processes and functions connected with performance of specific tasks into the manufacturing system. Technical integration means physical unity of the system elements. Technical integration can concern equipment, information and data. Integration of equipment consists in physical adjustment of technical resources, enabling their co-operation. Integration of data consists in a possibility to use data in different subsystems of an enterprise, which requires standardisation and compatibility of their structure. Integration of information, in turn, concerns the ways of data flow and control. IT tools currently constitute the basic ways of technical integration of manufacturing systems. A manufacturing system which has all the basic functions integrated with the use of IT tools is called the computer integrated manufacturing (CIM) system. In management processes, an especially important role is played by the flow of information between participants of an organisation. Information media include technical means and people. Therefore, apart from the above-mentioned functional and technical integration, also social integration is distinguished. It takes many forms: integration of management, integration of functional employee teams, integration of users. Social integration is not the opposite of technical integration; it rather constitutes its supplement. People work also in highly automated, computer integrated manufacturing systems, such as FMS or CIM. The problem consists in rational division of functions between the man and the machine, as well as correct way of integration (co-operation) of the man and the machine. Technical and social integration create an integrated manufacturing environment [1]. New conditions of enterprise functioning: strong competition, globalisation of the activity, priority of the customer’s needs and increasing requirements imposed on enterprises in the area of quality, costs, delivery time, flexibility (market requirements), as well as the related internal requirements of the organisation (systemic requirements): small inventory of in-process works, short lead times, etc. they all require more effective management of processes within an enterprise. Among these, especially important are interfunctional (horizontal) processes, implemented by different functional units, ‘across’ the enterprise, the results of which
Fig. 1. Integration as one form of co-ordination of activities.
directly impact the achievement of the main goals of the enterprise. These processes form a value chain [2], encompassing both basic and support processes, material as well as information and control ones [3]. The value chain of an enterprise is part of a broader network of processes constituting a value system. The system also includes the supplier value chain and the customer (distributor) value chain. Therefore, the need for integration equally concerns the employees, the organisational units, the processes and the subsystems of an enterprise, and those of co-operating enterprises. In the first case, we talk about intraorganisational integration, while in the second case, about interorganisational integration. The need for interorganisational integration grows together with the development of collaborative forms of co-operation between enterprises and the extension of logistic chains of interrelations between them. New concepts of organisation and management: agile manufacturing, lean management, business process re-engineering strongly emphasise the significance of improved management of an enterprise processes and computer integration, using advanced information technologies [4–6]. The purpose is to satisfy the customers’ needs better, to increase competitiveness and to improve economic results of an enterprise. Improvement of processes and better co-ordination of the performers’ activities, resulting from integration are, on the other hand, the means and the tools. Implementation of CIM is, therefore, of strategic importance for an enterprise. Computer integration of an enterprise is chiefly an organisational undertaking, connected with a change of the enterprise processes and structures, as well as people’s attitudes and behaviours.
3. Models of CIM architecture. CIM is a concept of production realisation using, to the maximum extent possible, integration of information flows in an enterprise. According to CIM concept, all processes connected with product manufacturing, material as well as information and decision-making ones, would be integrated through appropriate IT systems. Processes covered by integration include, first of all, production preparation and planning, manufacturing, control of material flow and inventory, quality control and others, which are not directly connected with the production process. CIM concept has three sources: flexible manufacturing systems (FMS’s), which emerged as a result of the development of NC/CNC numerical control techniques, graphical data processing systems, affording possibilities for computer support of development (R and D), product construction and production planning processes,
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Table 1 Significance of the selected directions of CIM systems integration Type of production
1. 2. 3. 4. 5. 6.
Production planning/control CAD/CAM Base data Production control/CAM Internal/external data Production-accounting/costs
Unit production
Batch production
Mass/high-volume production
-
-
Significance: big; medium -; small .
IT systems supporting management of individual subsystems within an enterprise: accounting, personnel and remuneration, production planning, material management, etc. At the beginning of 1980s, the three lines of development of IT application in an enterprise were combined into an overall vision of an enterprise, called CIM. There are may concepts of CIM construction, called CIM architecture. CIM architecture is formed by a set of models representing different aspects of a CIM system. CIM architecture models encompass CIM system elements and interrelations between them, explaining what CIM consists of, how it functions and how to transform a model into an operating system. One of the first CIM concepts was the functional model, derived from four functions of an enterprise connected with production: product construction design, production processes planning, production flow control and production automation. In Germany, an attempt to define CIM was undertaken in 1985 by Ausschuss fu¨r Wirtschaftliche Fertigung (AWF). The model involves technical and information interrelations between CAD, CAP, CAM, CAQ and PPC, and provides for utilisation of a common data base. The functional and AWF models have become the basis for the development of a number of other models of CIM architecture, including such known models as, e.g. ‘Y-CIM’ by A.W. Scheer [7]. Other well-known models of CIM architecture include: ICAM (Integrated Computer Aided Manufacturing), CAM.I (Computer Aided ManufacturingInternational), CIM-OSA (Computer Integrated Manufacturing-Open System Architecture, developed as part of ESPRIT 688 project), COSIMA (Control Systems for Integrated Manufacturing, developed as part of ESPRIT 477 project), OCS (Open CAM System created as part of ESPRIT 418 project) and others [8]. CIM architecture models can also be treated as a basis for CIM design and implementation. Namely, they indicate rational directions of computer integration of an enterprise, technically justified and affording possibilities for achievement of complex goals of the
enterprise. Using, e.g. Scheer’s ‘Y-CIM’ models, one can distinguish six typical directions of CIM integration (Table 1). Their significance is different for different enterprises, depending on their specific needs. Table 1 presents the scope of usability of the listed directions of CIM integration depending on the type of production. CIM architecture models describe the hierarchical structure of an enterprise, from many points of view, to satisfy the needs of different users. Together with CIM architecture models, specific methodologies and tools (methods) were developed, facilitating the implementation of the CIM model in the enterprise. The methodologies and methods make extensive use of specification approach, as well as graphic models of production systems and processes. In many cases, computer implementations of the methods were also developed to support the process of modelling, analysis, design, programming and documentation.
4. Modelling of the flow of materials, information and decision-making processes in CIM. The methods of modelling and design of integrated manufacturing systems should support CIM design process in all the phases of its life cycle. Special importance is assigned to the phase of specification of the requirements. Decisions made in this phase determine the structure of the system, investment expenditures, operation costs, possibilities of further extension and changes of the system, etc. The purpose of specification of the requirements is to establish a list of functions and activities which should be realised by the manufacturing system, so that the system should: meet its objectives, be easy to be integrated into the existing environment, use, as far possible, standard solutions of subsystems (modules), ensure integration of elements and processes in the designed system at each stage of the design.
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The methods of modelling and design of integrated manufacturing systems make extensive use of the concepts, experiences, as well as modelling and design tools of IT systems. They are aimed at presenting the manufacturing system: in a way which would be comprehensible for all the participants of the design process, especially for the future users of the system, decision makers and people providing information necessary for the design, enabling teamwork of the system designers and users, enabling fast development of the system design, especially the development of software, taking into account multiple aspects of the project (possibility to model different elements, processes and subsystems of the integrated manufacturing system). Graphic models: diagrams, drawings, tables, etc. constitute the basic way of presentation of integrated manufacturing systems. Application of these models requires the use of an appropriate: design methodology, tools supporting the construction of the models, including computer software. Without going into details of design methodologies, it is necessary to emphasise that they apply a process approach to the production system and a top-down analysis. The process approach consists in treating the manufacturing system under design as a set of concurrently implemented processes. The top-down analysis assumes gradual decomposition of the system into increasingly small elements-functions and activities. The basic models of processes include actigrams and datagrams. Actigrams are networks whose nods represent activities (functions, operations, etc.) and arcs represent interrelations between them (e.g. relations of sequence of activities). Actigrams are used for modelling of processes connected with the flow of both materials and information. Datagrams are chiefly used for modelling of information flow. These are networks whose nodes represent definite forms of data and arcs represent data processing activities. Actigrams and datagrams are used in data flow diagrams (DFD). Another method of integrated manufacturing systems design is GRAI. The GRAI method uses its own, specific model of a production system (the so-called GRAI model), which exposes decision-making processes. Two types of models are used in the GRAI method to describe the decision-making process: GRAI grids and GRAI nets. GRAI grids serve the purpose of decomposition of the decision making process in two sections: of functions (organisational units) of an enterprise and of the decision-making level (organisational structure level), which corresponds to different planning horizons, as well as frequencies of preparation (updat-
ing). GRAI grids are then used for the development of GRAI nets, which constitute a certain modification of actigrams. A special place among the methods of integrated manufacturing systems modelling and design is occupied by SADT and IDEF. SADT (structured analysis and design technique) uses actigrams. The designed/ analysed manufacturing system is, in subsequent steps, gradually decomposed into increasingly detailed activities. The decomposition of the manufacturing system results in a set of hierarchically interlinked diagramsactigrams. IDEF0 (ICAM Definition 0), created together with the ICAM architecture model, is a variant of SADT method. IDEF0 is used for modelling of a functional system-decomposition of the production system in accordance with the functions (activities) performed therein. IDEF0 method is currently a standard tool of integrated manufacturing systems modelling and design. A big advantage of the method consists in availability of computer programs supporting its implementation, e.g. Design/IDEF. Together with IDEF0, other methods have also been developed, among others: IDEF 1 for modelling of information flow in the production system, IDEF 1X, as an extension of IDEF 1, for modelling of the production system information structure, IDEF 2 for dynamic modelling of the manufacturing system (simulation models), IDEF 3 for modelling of processes in the system. The above-mentioned Design/IDEF program constitutes the implementation of IDEF0, IDEF1 and IDEF1X methods. Figs. 2 and 3 show IDEF0 models of a simple production system consisting of one lathe, two storage places at the input and the output of the system, as well as a robot which loads and unloads parts from the machine. Due to very differentiated and individual nature of enterprises, their size, organisational structure, product mix, technologies used, etc. application of ready CIM systems has never been attempted. On the other hand, a principle of integration of the available CIM subsys-
Fig. 2. A0 diagram ‘Make an object’.
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The developed software enables automatic generation of Petri nets on the basis of IDEF0 structural models, as well as analysis of the Petri net aimed at testing: (a) the correctness of the production system structural model, (b) the properties of the Petri net (and, indirectly, of the production system), such as liveliness, lack of deadlocks, etc. The conducted works are aimed at a synthesis of control of dynamic discrete systems, such as flexible manufacturing cells, flexible manufacturing systems, transport systems, etc. Fig. 3. The result of the decomposition of A0 diagram.
5. Intraorganisational integration. tems has been adopted. The implementation of this concept is possible thanks to the use of the so-called CIM reference models. They are a subset of CIM architecture models expressed in a specific language, the most frequently a graphic one, e.g. IDEF0. A reference model usually concerns a certain business unit of the enterprise and is of universal nature, i.e. it can be used in different enterprises, irrespective of their size, organisational structure, the existing IT system, etc. Reference models are then made more detailed and adjusted to the specific conditions of an enterprise. The application of reference models facilitates and accelerates the process of CIM design and implementation, ensuring coherence of the constructed system at each step, making it possible to apply ready functional models, re-use the existing solutions and modify them easily. Having a set of referential models makes it easier for an enterprise to design and implement organisational changes. The Institute for Organisation of Production Systems of the Warsaw University of Technology is developing a set of referential models used in enterprise restructuring processes, and as an aid for implementation of IT systems in particular in small and medium enterprises. Structural models constitute only a static description of the production system: specification of the system activities and their interrelations. In design, it is also necessary to evaluate the correctness of the constructed functional model, as well as to specify the system parameters, i.e. productivity, length of lead times, work station loading, size of in-process work inventory, identification of bottlenecks, etc. Petri nets are efficient tools for production systems modelling and analysis. In a simple way, they enable dynamic description of a sequence of interdependent and asynchronic events: the beginning and the end of a technological operation, inspection, transport, change of tools, etc. A method of automatic generation of Petri nets and SLAM simulation models on the basis of SADT/IDEF0 structural models has been developed [9]. Fig. 4 presents a Petri net obtained as a result of transformations of IDEF0 model shown in Fig. 3.
An important direction in the development of computer integrated manufacturing is involved with systems which support management of an enterprise, such as MRP (material requirements planning) systems. MRP systems constitute a set of logically interrelated procedures, decision-making rules and sets of data which make it possible to transform the program of finished products production flow into a demand for supplies of all the finished product components, appropriately spread over time. MRP II (Manufacturing Resources Planning) systems constitute the second generation of MRP systems. In MRP II, the creation of production plans and schedules takes place with consideration given to the availability of material resources: machines and equipment, tools, etc. as well as balancing of tasks with production capacities. Modern MRP/MRP II systems are integrated systems supporting management of the whole enterprise. MRP systems impose on enterprises high requirements concerning availability of current information in the data base, scrupulousness of entering/updating of data by all the system users, discipline of all the employees using the services of the system, formalisation of activities-strict compliance to the discipline imposed by the system. Application of the existing, large CIM systems in small and medium enterprises is not efficient, because of high purchase and operating costs, as well as low degree of utilisation of the capacity of such systems in the existing organisational and production conditions of these enterprises. Many modules of the existing systems are oversized, i.e. contain numerous functions which will not be applied, or are useless for small and medium enterprises. It is also necessary to consider the fact that the speed of structural changes in small and medium enterprises frequently exceeds the possibilities of adaptation of the existing software. As a result, managers of such companies usually use simple, not integrated IT tools, such as inventory control, material and ware-
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Fig. 4. A Petri net obtained as a result of transformations of SADT/IDEF0 model shown in Fig. 3.
house management software, financial and accounting systems, sale service, personnel and remuneration systems, etc. More advanced systems, supporting production management, cost calculation, quality and environmental management are, in this case, too costly, difficult, or even impossible to implement and operate. Demand for CIM type integrated systems for management of manufacturing processes exists not only in case of industrial production, but also in other domains of economic activity: trade, processing, transport, etc. Small and medium enterprises require management systems which would allow for the complexity of these enterprises, as well as the need of fast and deep structural changes. The architecture of CIM systems for small and medium enterprises should, therefore, integrate the structure and CIM systems development processes in several sections: functional and organisational, encompassing individual functional models of the systems, as well as organisational units and processes of the enterprise, CIM system development, consisting in the possibility to use standard methodology of enterprise management in the whole life cycle of the CIM system, technical, making it possible to apply both open, client-server systems (for larger enterprises) and simpler solutions (the so-called small economic integration) using, e.g. the existing local networks, exchange of information through modems and the internal telecommunication network of the enterprise. Therefore, development of computer integration principles and tools for small and medium enterprises requires the following: application of well-known and tested methods, such as SADT (structured analysis and design technique) and OMT (object oriented technology), as well as their modifications for CIM systems modelling, utilisation of standard software modules to the greatest possible extent, consistent compliance with the principle of cost minimisation in the process of software development and implementation through:
small technical integration (the so-called small economic integration) using the existing resources of the enterprise, including local networks; broad application of reference models of typical processes, minimisation of the costs of integrated tools achieved through their specialisation in accordance with the needs of enterprises and the use of standard tool and application software packages. The intention of the research team is to develop CIM design tools (called ToolKit), using SADT and OMT, and supporting the following processes: 1. business process re-engineering as a complex method of enterprise management, 2. analysis, design and implementation of production management systems in the following scope: material flow control module, including lower level modules: organisation building module, technology module, production planning and control module, cost calculation module strictly connected with material flow control module, quality management module, using data generated in each phase of the production process. Integration of design tools is performed with the use of IDEF methods in the following sections: 1. integration of IDEF0 models with IDEF1X model (which is already partly realised in Design/IDEF software package), 2. integration of IDEF0 models with Petri net models and simulation models, 3. integration of IDEF0 models with standard tools such as MS Project. The developed tools in the area of (2) make it possible to support the as-is – what-is – to-be decision-making chain. Integration of IDEF0 models with MS Project software package is also a new approach. Integration of IDEF0 models and the standard enterprise management software affords possibilities for construction of a software package which would be fully adjusted to the
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needs of small and medium enterprises. In the second stage of the project, other (mainly standard) software packages will be added: finance and accounting, fixed assets management, personnel and remuneration, purchasing and sales, etc.
6. Interorganisational integration — integration of co-operating enterprises. Enterprises functioning in the sphere of production and distribution (trade), wanting to achieve their goals, have to enter into increasingly numerous and differentiated, direct and indirect relationships with other enterprises. These relationships are accompanied by flows of goods, information and money and, consequently, different forms of integration of enterprises. There are a number of premises causing development of interorganisational integration of enterprises. Enterprises, searching for ways to improve efficiency of their activity, often choose decentralisation of their management. It takes different forms: creation of autonomous units within an enterprise (the so-called cost centres, profit centres), development of external co-operation and delegation of performance of specific enterprise functions and tasks to external units (outsourcing), creation of new forms of co-operation between independent enterprises (including the so-called network structures). The second trend is growth of concentrative forms of economic co-operation between enterprises, resulting from capital concentration (e.g. holding companies), horizontal integration, etc. What distinguishes concentrative forms of co-operation between enterprises from collaborative forms is joint management and limitation of legal and organisational independence of organisational units. In each case, efficiency of such co-operation between enterprises largely depends on co-ordination of their collaboration. External factors which enhance development of interorganisational integration include: legislative changes concerning international merchandise trade and the related detailed regulations pertaining to, e.g. transport (trade liberalisation), globalisation of the activity of numerous enterprises; this concerns both production and trade activity (purchasing and sale of products), increase in quality requirements concerning all the participants of the production process, popularisation of ISO 9000 quality assurance system standards, development of IT infrastructure, as well as an increase of availability and scope of IT services: exten-
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sive networks, Internet, mobile telephone, satellite communication, etc. We will illustrate the above trends with several selected examples of interorganisational integration, which do not, however, exhaust all the possible forms and solutions: (1) Joint advanced development (JAD) concept is an example of collaborative form of production preparation organisation, according to which suppliers of component parts participate in the development of a new product and technology design together with the final product manufacturer. Joint preparation of production of a new product requires closer integration of the participants. This can be achieved by computer integration. Computer integration using interactive computer simulation tools makes it possible for designers working in different places to work together on a ‘virtual product’ design. (2) Value-adding partnership (VAP) constitutes one of the collaborative forms of relationships between enterprises. It is composed of a set (network) of independent enterprises (conglomerates of enterprises), which closely co-operate with one another, performing joint management of goods and services flow in the whole value added chain [10]. Value-adding partnership constitutes an effective form of co-operation, especially between small enterprises. Its implementation is facilitated by technical innovations, more important of which include: 1. universal availability of personal computers (PC), user friendly programming languages and systems, cheap tool software packages (word processors, spreadsheets, data bases, etc.); 2. application of data interchange standards, bar codes, etc.; 3. network services development; 4. computer-aided design; 5. computer-aided manufacturing. Value-adding partnership does not, of course, depend solely on the availability and application of modern information technologies. It can develop as a result of IT links between enterprises, or can exist before such links have been established. Information technologies facilitate communication between enterprises, distribution of information and fast response to a change in the market demand. (3) Lean production concept strongly emphasises integration of the logistic chain, including the network of suppliers, final product manufacturers and customers [6]. It assumes that both customers and component parts suppliers should be included in the production system. The need for close integration of the network of suppliers, final product manufacturer and customers is connected with co-ordination of the flow of materials (raw materials, components for production, final products), information (customers’ orders for final products,
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orders for supplies of component parts) and money (settlement of receivables and payables). Close co-ordination of enterprises in such a logistic chain is achieved through computer integration of planning and production control, material and warehouse management, as well as financial and accounting systems of the co-operating enterprises. An example of suppliers and manufacturers integration tools is provided by ODETTE (Organisation of Data Exchange by Tele-Transmission in Europe) standards. The purpose of ODETTE is to implement EDI (electronic data interchange) technology in the automotive industry. Interorganisational CIM models constitute a more advanced concept of interorganisational integration. CMSO (CIM for Multisupplier Operations) is an example here, encompassing three sequences of interrelations (chains) [11]: production, distribution, product development and servicing. The purpose of this model is to improve efficiency of the whole supplier/ customer chain, understood as improvement of the level of customer service, which, in turn, involves such factors as quality, price, delivery time, innovation and extent of product mix.
7. Conclusions What is becoming increasingly important among the factors which determine competitiveness of enterprises is time: lead time, time needed to start manufacturing of new products, supply cycle length encompassing the entire logistic chain, as well as time derivatives, such as flexibility, i.e. easiness and speed of product mix changes, possibility of manufacturing various products in short runs and in any sequence according to individual customer’s requirements, costs and reliability of supplies. Integration is an effective way of achieving these objectives. The increasing number and scope of collaborative forms of co-operation between enterprises creates premises for the development of interorganisational integration of enterprises, using information
.
technologies. This is possible thanks to already significant experiences in the area of intraorganizational integration of enterprises, using, among others, MRP/MRP II systems, as well as the development and availability of information technologies and services, including especially those in the area of tele-transmission (extensive networks, Internet, EDI).
Acknowledgements This research was partly supported by the Committee of Scientific Research, Grant no 1445/HO2/95/08
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