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Centre for Strategic Manufacturing Assessing the impact of ...

  1. 1. Assessing the impact of e-business on the business processes of manufacturing companies: A simulation approach Pável Albores Dr. Peter D. Ball Dr. Jillian MacBryde
  2. 2. Agenda <ul><li>Introduction </li></ul><ul><li>Modelling requirements for e-business </li></ul><ul><li>Levels of BPS </li></ul><ul><li>Project aims </li></ul><ul><li>Current BP models and generic e-business templates </li></ul><ul><li>Summary and Conclusions </li></ul>
  3. 3. Business process approach to e-business analysis <ul><li>E-business as way of simplifying business processes </li></ul><ul><li>Need to understand the dynamics of processes and their interaction </li></ul><ul><li>Evaluate the real benefit of e-business </li></ul><ul><li>Functional to process view </li></ul>
  4. 4. Some modelling approaches <ul><li>Process mapping </li></ul><ul><ul><li>E.g. IDEF </li></ul></ul><ul><ul><li>Diagrammatic </li></ul></ul><ul><li>Static tools </li></ul><ul><ul><li>E.g. spreadsheets </li></ul></ul><ul><li>Dynamic tools </li></ul><ul><ul><li>Queuing theory </li></ul></ul><ul><ul><li>Simulation (discrete event) </li></ul></ul><ul><ul><li>System dynamics (continuous) </li></ul></ul>
  5. 5. Requirements for modelling <ul><li>Multi-level / hierarchical </li></ul><ul><ul><li>Gradually add detail in design or </li></ul></ul><ul><ul><li>Aggregate detail in operation for speed/simplicity </li></ul></ul><ul><li>Randomness </li></ul><ul><ul><li>Recognise real world is not predicable </li></ul></ul><ul><li>Passage of time </li></ul><ul><ul><li>Recognise the dynamics of the real world has critical impact </li></ul></ul><ul><li>Flow of information AND product </li></ul><ul><ul><li>Few true examples of this and yet this coordination has key performance impact </li></ul></ul><ul><li>Modelling of e-business systems </li></ul><ul><ul><li>Question of how to model </li></ul></ul>
  6. 6. Levels of BPS application <ul><li>Conceptual Business process simulation </li></ul>1 2 <ul><li>Manufacturing systems simulation </li></ul>3 <ul><li>Process Specific simulation </li></ul>4 <ul><li>Enterprise-wide simulation </li></ul>5 <ul><li>Supply-chain-wide Simulation </li></ul>
  7. 7. Project aims <ul><li>To investigate the suitability of simulation as a technique to analyse the effects that e-business has on the business processes of manufacturing companies. </li></ul><ul><li>To look at the differences between traditional and e-business processes for different e-business scenarios in the manufacturing sector. </li></ul><ul><li>To develop the methodology for the use of these tools and techniques. </li></ul>
  8. 8. Research Approach <ul><li>Research Methodology </li></ul><ul><ul><li>Case Study </li></ul></ul><ul><ul><ul><li>Primary (Concept feasibility) </li></ul></ul></ul><ul><ul><ul><li>Secondary (Construct building) </li></ul></ul></ul><ul><ul><ul><li>Primary (Construct testing) </li></ul></ul></ul><ul><ul><li>Survey (Construct testing) </li></ul></ul><ul><li>Modelling methodology </li></ul><ul><ul><li>Simulation (General purpose tool) </li></ul></ul><ul><ul><li>Interviews </li></ul></ul><ul><ul><li>ERP system data </li></ul></ul>
  9. 9. Generic business process mode ls <ul><li>Childe et al 1994 (CIMOSA) </li></ul><ul><li>Open University (e-business processes in service sector) </li></ul><ul><li>MIT (Business process repository) </li></ul>Suppliers Customers Suppliers’ Supplier Deliver Source Make Source Deliver Company Plan Deliver Source Deliver Source Make Make Customer’s Customer <ul><li>SCOR (Supply Chain Operations Reference model) </li></ul>
  10. 10. Analysis of Current Process models <ul><li>Comparison of models against case studies. </li></ul><ul><ul><li>Find differences between process models and cases (especially related to e-business) </li></ul></ul><ul><li>Development of templates/components for e-business. </li></ul><ul><ul><li>Initially thought templates would be all encompassing high level </li></ul></ul><ul><ul><li>Found templates do not adjust rigidly to proposed business process models </li></ul></ul><ul><ul><li>Decided to use smaller clusters that represent e-business activities </li></ul></ul>
  11. 11. Template operationalisation <ul><li>Components developed in Simul8 </li></ul><ul><li>Testing Phase underway </li></ul><ul><ul><li>User Survey </li></ul></ul><ul><ul><li>Further cases: Flextronics-2-, Kay Graphics, Coca Cola? </li></ul></ul>
  12. 12. Summary <ul><li>Analysis of BPS levels </li></ul><ul><li>Description of e-modelling requirements </li></ul><ul><li>Change observed mainly in dynamics of processes </li></ul><ul><ul><li>Change in dynamics (<time, <human involvement, < redundancy) </li></ul></ul><ul><ul><li>Change in performance metrics (>reliability, > quality of information) </li></ul></ul><ul><li>Analysis of current business process models </li></ul><ul><li>Creation of e-process templates </li></ul>
  13. 13. Conclusions <ul><li>Simulation proved to be useful for the analysis of e-business implementation –highlighting potential benefits/problems. </li></ul><ul><li>Generic activities can be identified for e-processes and can be operationalised. </li></ul><ul><li>Are they useful? We’ll find out. </li></ul>
  14. 14. Questions? <ul><li>Pavel Albores </li></ul><ul><li>[email_address] </li></ul><ul><li>http://www. dmem . strath .ac. uk / csm / pavel </li></ul>
  15. 15. Contributions <ul><li>Use of simulation in a new context </li></ul><ul><li>Description of e-process dynamics </li></ul><ul><li>Generic e-processes and study of their applicability. </li></ul><ul><li>Methods and procedures for integration of tools and techniques </li></ul>