ISE 517 - Modern Enterprise Systems
“Managing the Enterprise
As a system
By the state of its processes“
Syllabus
Fall Semester, 2010.
Mike G. Kazeef,
Lecturer
Purpose and focus of ISE 517
The pursuit of improvement is one of the major dimensions of Industrial Engineering and requires incorporating explicitly in the design of business systems and processes the mechanisms for continuous improvement to find efficiencies and promote effectiveness.
A business system is a set of interactive and interdependent components that act together to achieve an objective or purpose, that involve human, information, and economic factors to operate any business entity.
An enterprise should be managed as a system not as a set of processes linking traditional vertical hierarchies.
As graduates enter the world of business, they would benefit from discovering early on some effective managerial elements that they can use immediately in any function and expand their application as they gain broader responsibilities, all the way to the C-level of executive management.
Day# / Class Topics / Reading / Homework1
8/27 / Introduction:
Purpose and structure of the course.
Building the foundation
Interpretation of data
The foundation for managing any business entity is to be able to predict the behavior of its processes.
Lecture:
Measure to predict the behavior of processes / Reader 1:
Industrial Engineering new tagline
Reader 2:
Calpoly letter / None
2
9/3 / Building the foundation
The State of processes:
The state of processes provides a universal methodology for delivering the required outcomes.
The state of processes provides the essential blue print for managing effectively any operational entity.
Lecture:
The state of processes / Due
Reading assignment 1:
Myron Tribus article
Reader 3
Charts in clinical setting
(for class discussion) / Due
HW 1
Predictability of
processes
3
9/10 / Building the foundation
De-aggregation:
Only processes deliver results/outcomes.
The aggregation of data blurs the comprehension of reality yet is routinely used by management with negative effects.
Complexity is the result of unidentified relationships.
De-aggregating processes renders the relationships visible and actionable at all levels.
Defining what to measure should not be a quandary to management.
An example of de-aggregation using an Ishikawa diagram will be discussed.
Lecture:
De-aggregating to an actionable level / Due
Reading Assignment 2
Performance measurement
(KPMG study)
Reader 4
Evidence-based management / Due
HW 2
Executive’s Priorities.
Non graded Exercise
HW 3
Cpk
4
9/17 / First exam / Due
Reading Assignment 3
“Understanding
Variation.” / Due
Non graded HW 4
Pre exam exercise
5
9/24 / Managing with the state of processes.
Manage better.
Managing encompasses many domains and activities such as credible budgeting, effective meetings, reliable operations, projects assessment, and the ability to align the objectives from the boardroom to the mail room.
The states of processes foster the ability to operate well at all levels.
Lecture:
Manage better / Due
class discussion of “Understanding variation”
Reader 5
Review of the KPMG study under the light of the State of Process
(for class discussion) / Due
HW 5
Process XYZ
6
10/1 / Managing with the state of processes.
Perform better.
Ever higher performance has become the standing expectation from the modern enterprise. The ability to reliably and flawlessly deliver must become part of its DNA.
Wanting to perform better is not enough.
An operating methodology is necessary and the reduction of variation becomes the main pursuit.
Lecture:
Reduce variation.
The real significance of Six -Sigma. / Due
Reading Assignment 4
Decoding Toyota DNA
Reading Assignment 5
A Japanese control chart / Due
HW 6
J.I.T.
7
10/8 / Managing with the state of processes.
People issues
Managing knowledge
= People work IN the system.
Management should work ON the system.
People issues include accountability, delegation, recruiting, hiring, compensation and promotions.
= Knowledge is essential and generic, not a parochial or privileged asset.
What matters about knowledge is the ability to share it effectively in order to support action at any and all levels.
Lecture:
1-People issues.
2- Creation and application of knowledge / Due
Reading assignment 6
Seven surprises of a CEO
Reading Assignment 7
SPC at the Esquire Club
Reading assignment 8
Strategy to manage knowledge / Due
None
8
10/15 / Managing with the state of processes.
Enterprise environments
Business
They include external, internal, financial and geopolitical environments. How to stay attuned to their evolution is crucial.
Stakeholders
The enterprise does not operate in a vacuum. Its stakeholders actually control the ultimate fate of the enterprise.
What matters is what the stakeholders think of the enterprise, not the reverse.
Lecture:
Managing business environments and reputational risks / Due
Reading assignment 9
Reputation and its risks
Reader : 6
The power of the mouse / Due
HW # 7
Stakeholders map
9
10/22 / Second exam
10
10/29 / Managing with the state of processes.
Planning process
Planning is the universal process that applies to every domain and activity. It integrates vision, mission, outcomes and execution, and the relevant measures at all levels.
The outcomes required by the Vision represent the strategy, and in turn, they define the processes needed for its execution.
The Planning process represents the methodology for the continuous alignment of the operational objectives to the enterprise’s goals.
The governing principles act as “guidelines” for a compliant and consistent execution throughout the organization.
Lecture:
The Outcome-Back Planning Process / Due
Reading assignment 10
Business models still matter
Reading assignment 11
How managers create/destroy the company strategy
Reader 7
Can you say what your strategy is? / Due
HW 8
De- aggregation example-safety
11
11/5 / Managing with the state of processes.
System thinking
A system is a collection of elements that interact to produce an effect that cannot be produced by any subset of the elements.
The whole determines the nature of the parts.
The parts cannot be understood if considered in isolation from the whole.
System thinking is a powerful holistic concept that can transform the way enterprises are managed.
Lecture:
System thinking. / Due
Reading assignment 12
Why Hierarchies strive.
Reader 8
Corporate governance
(for class discussion)
Reader 9
Review of the KPMG study on planning issues
(for class discussion) / Due
HW 9
A quandary
12
11/12 / Managing with the state of processes.
Management’s landscape
Modern management needs to be able to bring in the same “field of vision” all the relevant and necessary information related to the business entities and customize it to individuals needs, at any and every level in real time.
Modern management can pursue the flexibility it needs despite the rigidity of the existing ERPs.
Lecture:
“Single Point of Comprehension” (SPOC) / Due
Reading assignment 13
Enterprise in enterprise systems
Reader 10
Competing on analytics
(for class discussion) / Due
HW 10
Elbow room
13
11/19 / Third exam
14
11/26 / Thanksgiving break
15
12/3 / Managing with the state of processes.
Wrap-up
Lecture:
Managing the enterprise as a system / Due
Reading Assignment 14
“Prescriptions”
Reader 11 / Due
HW # 11
Ignore variation at your own risk
· Typical Class Day:
1. Review and discussion of the assignments due that day.
2. Interactive lecture on topic of the day.
3. Overview of the Homework and Reading assignment(s) for the following week.
4. The slides used in the day’s lecture are available immediately at the end of the class to allow for a prompt review of the material presented in class.
· Attendance
Due to the nature of the subject matter and the way it is planned to be taught:
o On campus students are required to attend every class.
See grading.
o DEN students are not required to attend class in deference to their work- related obligations, although they may do so through the use of Webex.
However, to make up for this dispensation, the DEN students are required to write assignments double in length that of on-campus students. The scope of the assignments will remind them of this requirement.
o Posting of assignments/homework
The timely posting of assignments and homework is a part of the attendance requirement. See grading.
The assignments must be submitted before the start of class on the due date.
· General information on assignments:
=Typically, one reading and one homework assignment are assigned each week.
Occasionally, more assignments or homework might be assigned, as needed and as indicated in class.
=All the reading material for the semester’s assignments will be posted and accessible in the Class Documents at the start of the semester to provide DEN students the flexibility to best manage their time and schedules. However, each assignment is only due on the date mentioned in the Syllabus.
To this end, the scope and deliverable of each Reading Assignment or Home work is posted one week in advance, not sooner.
· Reading assignments material.
o Students do not have to purchase them.
o They are available in Course documents and in the scope of each assignment.
· However, students need to purchase the following three inexpensive required reading documents:
1-“Understanding variation. The key to managing chaos”
Second edition by Donald J. Wheeler. (Published by spcpress.com)
2--“SPC at the Esquire Club” by Donald J. Wheeler.
(Published by spcpress.com)
3- Excerpts from “Understanding statistical process control”.
Second edition by Donald J. Wheeler and David Chambers.
These excerpts, (copies of pages 154-183), will be referred in ISE 517 class as “A Japanese control chart”.
All three documents are available at the USC bookstore.
· Items 1 and 2 are also available on-line directly from the publisher, if desired.
· Item 3 is not available on-line, as it is merely the copies of pages 154 to 183 of an expensive book, which consequently, students would not have to purchase from the USC library.
· Reading assignments.
The scope of each assignment indicates the requirements.
· Readers
Readers are provided to further the understanding or to bring out the broader view of an issue.
No write up is required.
However, their reading is strongly suggested as their content and relevance to the course are included into the scope of the three exams and they prepare students to participate in class discussions when called upon.
· Deliverables:
=Typically, each reading assignment requires a minimum of one full page analysis (Font 12 - single space), as indicated in class or in the scope of the assignment.
DEN students are required to turn in two full pages.
However, be aware that Reading Assignment 3 asks for three full pages (Font 12 - single space), as mentioned in class and as posted in the assignment scope.
Den students are required to post four full pages for Reading Assignment 3.
=Students are required to follow the structure provided by the questions in the scope of each assignment. The questions must be made visible.
The write up must be original. Using extensive quotes out of the articles is not acceptable.
=For Homework, simply provide the solution required in the scope.
=Work must be submitted in the same format as in the assignment’s scope (Microsoft Office, Excel, Word or PowerPoint).
No pdf or Flash documents.
=All homework and reading assignments that are submitted timely will be graded and posted in the Grade Book before the start of the following class.
· Exams
o The total grade for the course is the sum of the grades of three partial exams, the attendance and the grades of assignments.
o There are three partial exams. They are all closed books.
o 1st exam is scheduled on Day 4. This is not a multiple choice exam.
o 2nd exam is scheduled on Day 9. This is not a multiple choice exam.
o 3rd exam is scheduled on Day 13. This is not a multiple choice exam
Each exam encompasses all material taught in class up to that point, including the content of the reading assignments, readers and Homework.
There is no final exam.
· Grading:
The course total maximum grade is 2440 points and includes the following:
General
o Reading assignment: 20 points maximum
o Homework: 10 points maximum
Attendance
On Campus students
o In-class attendance: 20 points per lecture-starting on Day 2
Den students
o Attendance equivalent: 20 points for posting the required deliverable.
First exam 750 points
Second exam 550 points
Third exam 550 points
· Academic Integrity:
The Viterbi School of Engineering adheres to the University's policies and procedures governing academic integrity as described in S Campus. Students are expected to be aware of and to observe the academic integrity standards described in S Campus, and to expect those standards to be enforced in this course. DEN students can find S Campus through the USC website.
· Information from the School of Engineering:
"The School of Engineering adheres to the University's policies and procedures governing academic integrity as described in S Campus. Students are expected to be aware of and to observe the academic integrity standards described in S Campus, and to expect those standards to be enforced in this course."
"Any Student requesting academic accommodations based on a disability is required to register with Disability Services and Programs (DSP) each semester. A letter of verification for approved accommodations can be obtained from DSP. Please be sure the letter is delivered to me (or to TA) as early in the semester as possible. DSP is located in STU 301 and is open 8:30 a.m. - 5:00 p.m., Monday through Friday. The phone number for DSP is (213) 740-0776."
If you have questions, please call (213) 740-4886.
Contact Information:
-Mike Kazeef
CELL: (714) 356 5666
Office Hours: Friday 12 30 am to 1 30 pm in SSC 101
- Teaching Assistant
Office hours: To be announced
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