Donald H. Liles

The Development of Strategic Performance Metrics

ABSTRACTPerformance measurement is perhaps the most powerful management tool available for strategy deployment. Unfortunately, current literature indicates that most performance measurement systems used today are poorly suited for this purpose. In addition, while researchers and practitioners increasingly view the business organization as a collection of interrelated processes or activities, most businesses continue to structure their performance measurement systems functionally according to an organization chart. Such systems provide little information about the performance of complex business processes or about activities that cross functional boundaries.This article identifies the attributes of effective performance measurement systems recommended in the literature. The deficiencies of current performance measurement systems are then examined. A quality function deployment–based methodology for identifying strategically relevant performance metrics to control and improve business processes at the activ...

A soft-systems methodology approach for product and process innovation

Soft-systems methodology (SSM) has been recommended as a tool for scientifically evaluating complex environments. One such environment is the development of organizational processes and products delivered by organizations. This paper proposes a methodology for organizational product and process innovation based on SSM theory incorporating quality function deployment (QFD) and IDEF0 (integrated definition functional modelling tool) techniques. The methodology relies on a series of phases that elicit information from complex and amorphous real-world practices, processes, and information, and develops models of these systems. The paper illustrates the utility of the methodology and tools using a case example: development of an organizational decision support system used to justify strategically important technologies for the enterprise.

Engineering the Virtual Enterprise: An Architecture-Driven Modeling Approach

The managerial and organization practices required by an increasingly dynamic competitive manufacturing, business, and industrial environment include the formation of “virtual enterprises.” A major concern in the management of virtual enterprises is the integration and coordination of business processes contributed by partner enterprises. The traditional methods of process modeling currently used for the design of business processes do not fully support the needs of the virtual enterprise. The design of these virtual enterprises imposes requirements that make it more complex than conventional intraorganizational business process design. This paper first describes an architecture that assists in the design of the virtual enterprise. Then it discusses business process reengineering (BPR) as a methodology for modeling and designing virtual organizations. While BPR presents many useful tools, the approach itself and the modeling tools commonly used for redesign have fundamental shortcomings when dealing with the virtual enterprise. However, several innovative modeling approaches provide promise for this problem. The paper discusses some of these innovative modeling approaches, such as object-oriented modeling of business processes, agent modeling of organizational players, and the use of ontological modeling to capture and manipulate knowledge about the players and processes. The paper concludes with a conceptual modeling methodology that combines these approaches under the enterprise architecture for the design of virtual enterprises.

The strategic evaluation of candidate business process reengineering projects

Abstract The evolution from a focus on product design to one on process and product design in improving organizational competitiveness has included the development of a field of study called business process reengineering (BPR). BPR is an organizational development tool that requires a number of stages of analysis, design and implementation. The literature in the past few years has provided a number of tools and techniques to aid in BPR efforts. One area in this relatively new organizational change philosophy that has not received much attention is the selection or prioritization of a set of candidate business processes or projects that should undergo reengineering. Since business processes by definition are elements of a broader strategic system, the candidate evaluation and selection process must be strategically oriented. To aid in this evaluation process a strategic multiattribute evaluation and justification framework and methodology is presented. The methodology includes an activity based analysis and linkage of traditional (financial) and strategic considerations. The evaluation methodology may also have implications for post-implementation evaluation of BPR projects and other phases of BPR.

Using IDEF and QFD to develop an organizational decision support methodology for the strategic justification of computer-integrated technologies

Abstract The paper presents some issues relevant to the strategic justification of computer-integrated enterprise technologies for small and medium-sized manufacturing enterprises. To address the issue of making a strategic justification or ‘business case’ for these technologies, an organizational decision-making methodology that incorporates the strategies of the firm is needed, among other requirements. A research and development approach that integrates Quality Function Deployment and idef0 functional modeling to determine the requirements and processes for the justification methodology is presented. This approach has implications for future research and development for similar organizational decision-support processes and business-process reengineering.

A holon-based process modeling methodology

Process models are a valuable tool in the design and configuration of enterprises. However, current modeling techniques have shortcomings that prevent them from fully supporting the analysis required to design an enterprise. This is especially true when considering the needs of modeling highly distributed and temporary multi‐company enterprises such as fractal or virtual enterprises. This paper presents a modeling scheme that supports a process‐centered approach to the analysis and design of both conventional and extended enterprises. Using a holon‐based approach to model the components of an enterprise, it allows for the development of integrated business rule, activity, resource, business process, and organizational views of the enterprise using the IDEF suite of modeling methods. The scheme is built around a central IDEF5 model of the enterprise from which the other views are extracted. The paper also describes the technique for developing an enterprise model using the scheme.

A methodology for evaluating computer integrated manufacturing technologies

Abstract The decision to invest in advanced manufacturing technology is often made at the strategic level. The technique to be used to justify these decisions should have the ability to incorporate the non-quantifiable, intangible benefits associated with implementing these technologies. Among the methods introduced recently, the linear additive models have received considerable attention. This paper reviews a linear additive method which can be used to evaluate long-term and short-term automation manufacturing investment alternatives. The paper also concentrates on those cases in which some common characteristics of available alternatives are assumed to be independent.

R&D validation planning: A methodology to link technical validations to benefits measurement

An important activity in many R&D departments is the internal development of new process technologies and practices to assist in the marketing, design and manufacturing activities of the enterprise. An integral part of this R&D development is the planning and management of validations of potential technology projects. These validations are necessary to determine the technical, financial and organizational feasibility of the projects and to develop data for benefits measurement for further funding of selected projects. This paper describes a methodology for validation planning of new process technologies and practices. The methodology allows for the explicit linkage of a validation to the identification of its financial and strategic benefits. These often diverse measures of worth are integrated using a proven multi-attribute justification approach within the planning methodology. The methodology and the multi-attribute approach also support the comparison of dissimilar projects having different benefits. The methodology acts as an organizational planning tool integrating the needs of the diverse constituencies involved in R&D planning. It also acts as a tool to aid engineers and scientists identify and present the benefits of the proposed technology.

The management of technology within an enterprise engineering framework

Abstract Many attempts at implementing Computer Integrated Manufacturing (CIM) technologies are unsuccessful. This paper presents a methodology for the strategic management of technologies such as those involved in CIM. This methodology, entitled the Enterprise Engineering methodology, is based on the premis that technology should only be implemented after the basic foundations are put in place. The methodology is an integrated sociotechnical framework that addresses organizational, cultural, process, and technological issues. To place the methodology in focus, the paper first presents an overview of the current manufacturing environment. The methodology is then discussed in depth. The development and implementation experiences with the methodology are also presented.

A computer based production scheduling architecture suitable for driving a reconfigurable manufacturing system

Abstract In order to address the time constraints and increased flexibility requirements which will be placed on manufacturing activities in the 1990s, manufacturing must shift its focus from the specific products it produces to the process resources required for their production. Reconfigurable manufacturing systems must be developed which are capable of tailoring their configuration to meet the resource demands of an ever changing mix of products. A corresponding scheduling architecture must also be developed to control these systems. This architecture will be based on the concept of scheduling manufacturing processes as opposed to manufactured products. The proposed scheduling architecture outlined in this paper has a hierarchical structure and utilizes opportunistic scheduling techniques. The structure of this scheduling system is directly determined by the configuration of the production system and as a result must be as dynamic as the manufacturing resources it controls.