In general, a model is used to understand a system. It is only a representation of a more complicated original system based on mutual

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3 In general, a model is used to understand a system. It is only a representation of a more complicated original system based on mutual characteristics, that is used for a specific exercise by a third system. The model is also used to allow for, or simplify, the ascertainment or constraints of the original. An optimization is the improvement of a procedure or condition in terms of timely response, quality, costs, efficiency and effectiveness, in addition to other possible factors.

4 Organizational structure, as an aspect of industrial organization, describes the structuring of a business into a system of labor-divided organizational units. This structure also displays the relationships of these organizational units with each other. Position hierarchy, responsibility for tasks, as well as the authority to give instructions and make decisions are hereby organized and arranged according to the basic criteria function (e.g. purchasing, production, sales) or object (customers, regional sales departments, materials, etc.). The process organization regulates the spatial, temporal, and logical collaboration of employees, equipment and work objects as well as the input of the work system in order to carry out work tasks according to the organizational target system. Process organization is generic and therefore present in every organization.

5 The goals mentioned above are not independent from each other. This leads to possible goal conflicts. A classic goal conflict arises between the minimization of the system time (t s ) for the work object and the maximization of the work system utilization. A minimum system time (t min ) occurs when all the necessary resources, machines, etc. for a work process are available without delay. With an increase in resource utilization, delays in the process occur, leading to a disproportionate increase in system time. The utilization can be increased through the allocation of m equal resources during a task division by quantity, yet the fundamental goal conflict remains.

6 The process organization can be modeled on different levels of abstraction. On the highest level value chains are described, which contain the relations and departments of an organization. In Porter s value chain, the entire business system is presented, pursuing the goal of individually unlocking the various business activities relevant for value creation. A distinction between primary and secondary activities is made in the model. Primary activities are integrated into the actual value creation and process are then organized according to their operation (inbound logistics, production, marketing & sales, outbound logistics, services). Secondary activities are the enablers of the whole process (organizational infrastructure, human resources management, technology development, acquisition). Interfaces to all primary activities exist between secondary activities, creating a significant coordination effort. The relative competitive advantage of the individual activities can be determined through the comparison with similar activities of competitors; thus, a conclusion regarding the activities contribution to the company s result can be drawn. In order to be able to demonstrate the various strategic options, the value chain analysis must also take the relationships between upstream and downstream value chains of the competitors into consideration. As a result, dispensable and indispensable areas of the company can be determined (Kerth & Pütmann 2005).

7 The described model of a process organization on firm level is more concrete than Porter s value chain. In the sales market it is not enough for the sales department of a contractor to simply sell the manufactured goods. The sales department directs the order to the order management control department with the desired article, quantity and delivery date. Order control manages the company s personnel, temporal and financial resources and directs an order to the production planning. In the product development, the design, functionality and geometry of the desired product is created or derived from an existing product (version development) according to product planning and the intense exchange with the customer. The optimal processing parameters, material selection and work methods for production are determined in the process development. Work preparation is divided into work planning and work scheduling. The creation of work documents such as production parts lists and work plans is a part of work planning. The tasks of material planning, schedule and capacity planning and workshop management belong to work management. Finishing and assembly takes place in manufacturing after the necessary raw, auxiliary, and operating materials and distributions parts are acquired through procurement and arrive at the manufacturing hall via the receiving area. Distribution is responsible for the shipping of finished products to the customers. Customers receive the bill either with the product, or from customer service shortly after receiving the product.

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9 Methods of Time Measurement (MTM) is a method for standardized modeling of manual work processes. The MTM method is primarily used in the manual assembly for work planning of assembly lines. Especially in mass production, it is important to determine the duration of the human motion sequences in the planning phase and to optimize them if necessary. In addition, complex movements are traced back to fundamental movements for which the required time is known. These fundamental movements are memo technically coded in English (e.g., R for Reach). Additional attributes, such as type of reach, length of the trajectory etc. determine the time value. The unit of time used in MTM analyses is TMU. 1 TMU represents seconds. The MTM method is described in detailed unit 6.

10 Core processes must provide an observable customer benefit for which the costumer is willing to pay must be unique through a business-specific use of resources must be hard to imitate with respect to their specifications must not be replaceable through other problem solutions (e.g., through outsourcing). Support processes are essential for the problem-free execution of the core processes; the support processes themselves do not have any strategic significance can usually be outsourced; for various reasons it can however be worthwhile to phase them out within the business (e.g., the maintenance of complex machines requires knowledge of details whose transfer can be very laborious) should be separated from core processes as independent activities; as a result, there are less contact persons per process and the process can be compared (benchmarking) more easily with other processes (from external providers).

11 eepc focuses on the event-driver control flow of a business process in conjunction with the elements of organizational, data and performance modeling presented in the event-driven process chains (EPC). DIN was originally developed as a standardized language for the modeling of logical flow charts of computer programs. Today, it has been extended to model workflows. The Design Structure Matrix (DSM) describes the informational dependencies of individual activities. It is also often used to supplement the process dynamic with quantitative information about task processing rates and overlapping. UML (Unified Modeling Language) is a standardized language for modeling software systems. UML defines terms that are important for modeling and establishes possible relationships between these terms. In addition, graphical notations for the terms are defined. This also occurs for models of statistical structures and of dynamic processes that can be formulated with these terms. The Business Process Modeling Notation (BPMN) is a standardized graphical notation for drawing business processes in an intuitive manner. The primary goal of the BPMN is to provide a standard notation that is readily understandable by all

12 stakeholders. C3 (communication, cooperation, coordination) is a self-developed method and allows for the analysis and intuitive modeling of cooperative, weakly structured work processes in product development. Petri nets are highly formalized models of concurrent systems.

13 An activity begins with an observable and measurable event and ends with an event. A workflow describes all activities that occur between the start event and the end event. In the example of work order processing, a workflow begins with the arrival of an order and ends when this order leaves the system. Due to eventoriented modeling, it is possible to describe simultaneous and parallel processes with little modeling effort.

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16 The flow principle of coupled activities is not explained here since the modeling language eepc is not very suitable for the representation of such constructs. The Design Structure Matrix presented on slide 35 is much more appropriate.

17 The flow principle of coupled activities is not explained here since the modeling language DIN is also not very suitable for the representation of such constructs. The Design Structure Matrix presented on slide 35 is much more appropriate.

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26 The term Business Process Reengineering, was coined by Michael Hammer and James Champy in They defined it as "fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed." In contrast to the classical business process optimization, in which only individual processes can be effectively and efficiently designed, a fundamental reconsideration of the organization and its business processes occurs here. The continuous improvement process (CIP) signifies the constant improvement of the product, process and service quality. This occurs through a collaboration in small steps (in contrast to spontaneous decisive changes). CIP is the fundamental principle in quality management and vital component of the ISO The CIP was developed in the 1980 s as the German adaptation of Japan s KAIZEN (KAI = change, ZEN = for the better, KAIZEN = continuous improvement). Toyota is quite successful at living this philosophy. Potentials for the rationalization and humanization of work are identified via the involvement of employees in workshops.

27 Examples of triggers for process improvement measures: high error ratios high cycle times exceeding of deadlines high process costs low productivity

28 low quality low flexibility.

29 The overall work process can be optimized by changing the order of tasks being

30 processed, specifically those that must satisfy only few precedence constraints in the actual process. In this case one can often define priority rules for an optimized sequency of tasks, i.e. that an activity in the critical path has highest priority, a specific process (and thus all inclusive activities) for reasons of importance to the customer can determine priority, or precedence is given to the process with the earliest agreed deadline.

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33 By overlapping former sequential activities, for example in Concurrent Engineering projects, the total product and process development duration can be reduced. As soon as enough information is acquired in a work process the next process is started simultaneously. To an extent, this leads to extra work since the final information state is not being worked with; rather, the work foundation can change at any time. Concurrent Engineering between the product development and production engineering is particularly useful: Traditionally, product development and production engineering were two strictly separated sequential steps. First, the new product is designed and completely developed. Next, the production plant in which this product will be manufactured is planned and the production machines are developed. Production engineering begins earlier through the use of Concurrent Engineering. As soon as the parts of a product are developed, or even when only preliminary versions have been created, the planning of their production begins. Development continues simultaneously. A constant exchange of information occurs while the two departments continue working in their separate domains. Changes in design must continually flow into the planning of manufacturing resources.

34 Achievement-oriented interdependencies result from single sided or alternating output relations. The working results of an organizational unit functions as an trigger for the activities of the following unit. The quality of the following work processes will hence be defined by the inputs of the signaling organizational unit. The chronological and material-logical assignments, as well as the required results, can thereby be sequentially or reciprocally distinct. A sequential

35 interdependence identifies functional links between the organizational units (Malone et al. 1999). These sequential dependencies exist due to several reasons. For example in a production unit, the finishing process can only begin after the necessary materials from the preceding process gets finalized. On the other hand there are the reciprocal interdependencies with linked dependencies between two or more units. Here the deliverables mutually require the organizational units, and they are not independent of each other. Resource induced interdependencies emerge when different organizational units require the same limited resources during their work process (Malone et al. 1999). The resources are thus designated for all required objects such as work and operating resources, documents, etc. The decision of an organizational unit making a claim to one of these resources restricts the available resource capacity of another unit. Both organizational units have to synchronize to the chronological, qualitative and quantitative allocation of the strain placed on resources. Furthermore, market oriented interdependencies exist when the marketing activities of many organizational units are geared towards the same customer- or product-specific market segments and are also influenced by each other.

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37 Outsourcing refers to the transfer of work tasks and structures to third party

38 companies. This is a special form of external supply of previously internally processed activities in which contracts set the duration and content of the service. This sets outsourcing apart from other partnerships.

39 Case-Team is like the process owner solely responsible for the process, possesses the necessary competencies and resources to oversee the entire process independently coordinates itself through self-coordination Break in media Change of the information carrying medium within the information acquisition or processing process Example: Transfer of data must occur in a manner different from the receiving of data. Consequence of a break in media The manner of information collection or processing must be changed during the course of the process. This leads to a slowing down and increase of difficulty in information collection or processing, possibly also decreasing the quality of the information.

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41 ARIS (Architecture of Integrated Information Systems): division of model into descriptive views and levels in order to reduce the complexity of the model, making the process modeling design easier. The description of the individual elements then follows through specially tailored methods in order to circumvent the inclusion of the entire model. ConSense: In ConSense, workflows are modeled with the aid of the symbols defined in DIN ConSense pursues the goal of creating a stronger link between management systems, knowledge and document management systems. SYCAT (Systematic CIM-house-Analysis-Tool): Is a modularly built software for integrated process management. This software consists of a graphical component, for process depiction, a database as well as report and output functionalities. ADePT: ADePT allows for the partitioning of processes and project planning, based on information dependencies between activities that are documented in a DSM.

42 The Design Structure Matrix (DSM), also called the Dependency Structure Matrix, presents the essential informational dependencies between individual activities in a work process. This method is usually used to present complex dependencies in product and process development. All elements of a system are evaluated in a matrix according to their influence and the degree of dependence (e.g., through help of numbers instead of the pictured dots). From this it can then be determined which activities are necessary to start an activity; it is also indicated which information is generated through an activity. By reading the direction of the rows one can recognize which element needs information from other activities (NEEDS). Reading the columns reveals which other elements the activity is feeding with information (FEEDS). The DSM makes the improvement of the project process and the visualization of information dependencies possible, and can also support process optimization.

43 The tasks within a business system can be represented as elements, which are connected by an information flow. The figure shows the application of the socalled dynamic "Design Structure Matrix" (see 6 LE) during the development process of a gas turbine blade by the company ABB. Due to the extremely high technical requirements for gas turbine blades, the development process is a complex and strongly coupled process requiring several specialists from different technical domains. In order to increase the integration of this process, a project was launched at ABB to determine the actual state of the development process and to identify improvement possibilities afterwards. The left figure shows the detected actual state. In the right figure the actual state was transformed into a Design Structure Matrix. The main process is divided into the three sub-processes "aerodynamic design", "mechanical design" and "verifying mechanical integrity". The reason for this subdivision is the execution by engineers of various departments. The fields of their responsibilities are similar to those of the sub-processes. The activities within these sub-processes are strongly coupled.

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