The Delta Forum 2004 Designing & Integrating 21st Century Systems Risk Systems Engineering Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change Sponsored by the AIAA Engineering & Technology Management Group Engineering & Technology Management Group 3/24/2016 1 Risk Introduction – What is the Delta Forum Systems Engineering Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development • • • Our Group’s TCs examine the issues affecting the aerospace industry in the areas of Engineering and Technology Management The Delta Forum looks at a single topic of interest to the industry, from the various perspectives of our TCs – Aeronautics R&D Funding – Aerospace in the New Economy – The Risk-Averse Aerospace Industry Our panel will take your questions at the end of the session Management Tracking the Constant of Change Economics History Legal Aspects Logistics Management Multidisciplinary Design Optimization Product Development Risk Management Societal Aspects Supply Chain Management Systems Engineering Technical Information Engineering & Technology Management Group 3/24/2016 2 Society as a System What are the Needs? Tim Howard AIAA Society & Aerospace Technology TC Engineering & Technology Management Group 3/24/2016 3 Risk Overview Systems Engineering Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change • Is Society a System? – Historical perspectives – General System Theory – Society as an individual need • What does a social system need? – Maslow & the needs of Society • What does this mean for Aerospace? – Aerospace & Society’s needs – Aerospace & individual needs Engineering & Technology Management Group 3/24/2016 4 Risk Systems Engineering Greek View of Systems Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change Water Wind or Air Fire Earth Engineering & Technology Management Group 3/24/2016 5 Risk Greek Perspective Systems Engineering Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change • Separate elements postulated by separate people over time • Together, the elements compose the Earth system • Aristotle pulled them together, as elements, not integrated – Set the stage for 1500 years of “conventional” science • Atomos theory – grew out of element theory – Lost for centuries (Aristotle disagreed and tried to suppress it); resurfaced in 1890s • Relationship and interaction is the key concept Engineering & Technology Management Group 3/24/2016 6 Risk Systems Engineering Chinese View of Systems Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change • Tao Te Ching (Way of Integrity) – 300-500 BC – Tao = the system; Te = the members – About how things, including man and nature, should be – Differentiation & integration (Yin and Yang) – Process continues indefinitely The Tao begot one, One begot two, Two begot three. The three begot the ten thousand things. The ten thousand things embrace Yin and express Yang. Harmony is achieved by combining these forces. Engineering & Technology Management Group 3/24/2016 7 Risk Systems Engineering General System Theory Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change • Ludwig von Bertalanffy, German biologist – Frustrated by separation of science disciplines that resulted from Aristotle’s presentation of the elements – Looking for general way to describe organized complexity of living organisms – Proposed General System Theory in the 1940s • General Systems Theory – A system is composed of “elements in standing relationship” – The relationship between the elements is a component of the system • GST evolved into Complex System Theory Engineering & Technology Management Group 3/24/2016 8 Risk General System Theory & Society Systems Engineering Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change • Talcott Parsons, U.S. Sociologist • Attempted to integrate sociology theories • Believed Society had 4 functional imperatives – Adaptation – society adapts to physical and political environment – Attainment – society defines primary goals and enlists individuals to accept and strive for these goals – Integration – society is coordinated into cohesive whole – Latentcy – maintain and revitalized individuals to meet social expectations Engineering & Technology Management Group 3/24/2016 9 Risk Systems Engineering General System Theory & Society Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change • • • Niklas Luhman, sociologist, studied under Parsons & then broke from Parsons Applies System theory to society as a living organism • Concept of autopoeisis – self creation – Comes from biology – refers to dynamics of nonequilibrium structures – The living system will create what it needs from within itself, while maintaining its structure – the biological cell – In contrast, an allopoietic system, such as a car factory, uses raw materials (components) to generate a car (an organised structure) which is something other than itself (a factory) The Society creates itself through its communications; individuals are part of the system environment Engineering & Technology Management Group 3/24/2016 10 Risk General System Theory & Society Systems Engineering Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change • Jurgen Habermas, German sociologist • Sought to construct social theory that is also non-oppressive and inclusive universalist moral framework – critical theory • Incorporates just about everyone, from Kant to Marx • Conflict with Luhmann over role of individual in society; closer to Parsons • All speech acts – communications – have an inherent goal of mutual understanding • Human beings possess communicative competence to bring about such understanding Engineering & Technology Management Group 3/24/2016 11 Risk Characteristics of Complex Systems Systems Engineering Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change • • • • • • • • • Emergence – behaviors and patterns emerge from the relationship patterns Relationships are short-range – information exchanged between near neighbors Relationships are non-linear – small stimulus may have no, small, or large effect Relationships contain feedback loops – supports constant adaptation; effects of an agent’s actions can change future behavior (learn from error) Complex systems are open – appear stable, but in constant change; energy and information move across system boundaries The parts cannot contain the whole – elements can not know what is happening in the entire system Complex systems have a history – small changes in circumstances can lead to large deviations Complex systems are nested – components are complex systems themselves Boundaries are difficult to determine – based on observer needs and prejudices vice intrinsic property of the system Engineering & Technology Management Group 3/24/2016 12 Risk Systems Engineering Society as an Individual Need Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development • • • • • Abraham Maslow, U.S. psychologist Proposed Hierarchy of Needs in 1960s – Applied to individuals in an organization – We operate across all levels as we mature to next level TransRelationship is the need that drives cendence us to form societies Self – Individuals form communities Actualization Knowledge & – Communities form societies Aesthetics Self-actualization is why we work Prestige Transcendence is ultimate goal Relationship Management Tracking the Constant of Change Security Safety Survival Engineering & Technology Management Group 3/24/2016 13 Risk Characteristics of the Society System Systems Engineering Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change • • • • • • Society is a system of individual people at various points in the hierarchy at any given time Complex system integrated with its environment Individuals within Society exist in relationship to each other Communication & interaction is the venue to maintain the relationship Society’s needs mirror its elements – Survival, safety, security, relationship are basic needs – Prestige, knowledge, self-actualization, transcendence are higher order – Changes happen fast Success comes in meeting the needs of society’s components – the individual Engineering & Technology Management Group 3/24/2016 14 Risk What Does this Mean for Aerospace? Systems Engineering Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change • • • • Internal and External perspective – Aerospace industry is a society in itself – Aerospace industry part of larger societies of nations and the world Aerospace must be able to respond to fluidity of changes in the larger system, often due to factors beyond its control – Cost to build new airplanes vs inflation or changes in market – Cost per kg to place objects or people in orbit Aerospace must also be able to meet the needs of society’s individuals, in and out of the industry – Workforce issues are key to future success of industry When designing systems for society, need to design the individual into the mix; account for communications Engineering & Technology Management Group 3/24/2016 15 Risk Systems Engineering Aerospace & the Needs of Society Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change Need Threat Aerospace Contribution Survival • Air and Water pollution • Overpopulation & scarcity of food • Depletion of ozone layer • Asteroid impact • Remote sensing systems • Asteroid monitoring • “Planetary Defense” Safety • Natural disasters • Disease & Epidemic • Weather Systems Security • Terrorism • Weapons of Mass Destruction • Intelligence & Surveillance Systems • Defense Systems Relationship • Prejudice • Tribal warfare • International Partners & Competitors Prestige • Lack of success, lack of something to take pride in • Planetary exploration – Moon, Mars Knowledge & Aesthetics • Illiteracy • Lack of access to resources • Satellite communications systems Self Actualization • Oppression of free expression • Poor economic conditions • Contribution to national economic security Transcendence • Lack of systems view – how we fit into the Earth system • “Mission to Planet Earth” Engineering & Technology Management Group 3/24/2016 16 Risk What Society Needs from Aerospace Systems Engineering Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development • Society needs systems that strengthen the communication & interaction critical to survival and growth • These systems need to be: – Safe – Secure – Reliable – Environmentally positive – Economically sound Engineering & Technology Management Group Management Tracking the Constant of Change 3/24/2016 17 Risk Systems Engineering Aerospace & the Needs of the Individual Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change Need Threat Aerospace Contribution Survival • Industry consolidation/contraction • Establish stability within industry to allow planning for individual growth and movement • Stabilize government funding levels Safety • Hazardous materials in workplace • Complexity of systems challenges maintainability • Emphasize programs to improve work conditions • Emphasize programs to improve survivability of systems Security • Economic conditions of company • Establish stability within organization • Stabilize & commit to programs over multiple budget years Relationship • Lack of interest by manager/leader • Lack of cohesion within team or organization • Organize into coherent teams • Take active interest in team and individual activities • Quickly move out the negatives Prestige • Lack of recognition for contributions – higher salary not always the answer • Lack of successful endeavors • Unethical behavior • Recognize & reward contributions and other activities • Commit to project/program success • Commit to ethical comport Knowledge & Aesthetics • Lack of R&D funding • Lack of organized training • Commit to stable funding • Commit to professional development Self Actualization • Lack of integration of work and family • Develop programs to support family & personal interest activities Transcendence •Lack of integration with community • Lack of Higher Purpose • Commit to community projects • Establish and commit to Higher Purpose Engineering & Technology Management Group 3/24/2016 18 Risk Systems Engineering Aerospace Economics Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change Aerospace Company Revenues ($ millions) # of Employees Global 500 Fortune 500 (US only) 100 Best (US only) Most Admired (Global 50) Boeing 54,069.0 165,000 43 15 - 43 EADS 28,269.5 103,967 139 N/A N/A - United Technologies 28,212.0 155,000 141 49 - - Lockheed Martin 26,806.0 125,000 153 56 - - Honeywell Int’l 22,274.0 108,000 197 78 - - Northrup Grumman 17,837.0 117,300 260 99 - - Raytheon 16,962.0 76,400 280 105 - - Bombardier 15,115.9 70,411 329 N/A N/A - General Dynamics 13,863.0 54,000 357 137 - - BAE Systems 12,135.4 68,100 417 N/A N/A - Textron 10,658.0 49,000 472 174 - - Thales Group 10,499.1 60,662 480 N/A N/A - Engineering & Technology Management Group Source: Fortune Magazine, www.fortune.com Information based on 2003 data 3/24/2016 19 Risk Systems Engineering The Best Companies Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change Company Revenues ($ millions) # of Employees Global 500 Fortune 500 (US only) 100 Best (US only) Most Admired (Global 50) JM Smucker 1,312.0 2585 - - 1 - Alston & Bird 314.0 1450 - - 2 - Container Store 271.0 1832 - - 3 - Edward Jones 2,270.0 27092 - - 4 - Republic Bancorp 340.0 1360 - - 5 - Adobe Systems 1,153.0 2368 - - 6 - TDIndustries 217.0 1393 - - 7 - SAS Institute 1,180.0 4927 - - 8 - Wegmans Food Markets 2,836.0 28561 - - 9 - Xilinx 1,100.0 2037 - - 10 - Engineering & Technology Management Group 3/24/2016 20 Risk Change our Systems Paradigm Systems Engineering Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change • • • • Fritjof Capra – The Tao of Physics: Change our paradigm Old Paradigm: World as mechanical in nature; Body as machine; Life as competitive struggle; unlimited progress will come through economic and technological growth Capra’s Approach – 1. Shift from parts to whole – can only understand the parts from the dynamics of the whole – 2. Shift from structure to process – every structure is a manifestation of an underlying process – 3. Shift from objective to epistemiologic science – understand the process through knowledge – 4. Shift from building to network as a metaphor of knowledge – replace “knowledge is power” with the power of shared knowledge – 5. Shift from truth to approximate description – most decisions made within 10 minutes with incomplete information & intuition Need a different social and economic structure from the one we have used since the beginning of our industry – Move from manufacturing to knowledge (net-centric) – Recognize the needs of the system components – issue of loyalty among the workforce points out the need to socialize – Why aren’t we the best companies to work for? Engineering & Technology Management Group 3/24/2016 21 Risk Where are We Now? Systems Engineering Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change • • • • • Dominant model of competition now giving way to collaboration – Competition has a role; it meets the need for prestige, and helps extend knowledge; needs to be better managed Quantum physics shows that the classical system model does not hold true at certain levels, and as we move out from “centerline” Eastern approach brings a sense of integration & “synergy” – When we focus on the differences instead of the similarities, we keep the system from forming Growing recognition that process is at the heart of the system Replace the concept of opposites with the concept of complements – The opposite of perfect vision is blindness; most of us have neither so we complement what we have with another element of our “visual system” – How do we work to strengthen the complement of “management” and “labor” (aren’t we all engaged in some sort of labor?) – Did we need 2 JSFs or 1 really good JSF? Do we need to revisit antitrust laws? Engineering & Technology Management Group 3/24/2016 22 Risk What Aerospace Needs to Do Systems Engineering Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change • Define our Higher Purpose – the settlement of the Solar System by our grandchildren – Tie to the needs of Society for survival, knowledge, transcendence • Organize for self-actualization of our members – Invest to meet the needs of the workforce – Put our companies in the Admired category • Focus on systems to stabilize the industry & eliminate the cycle of downsizing – Proactive analysis of market demands – Go for the long haul, vice the quarterly numbers • Can’t build “systems of systems” if we ignore the basic component – the individual (designer, integrator, end user) Engineering & Technology Management Group 3/24/2016 23 Risk Systems Engineering Final Thought Economics History Management Society Legal Aspects Supply Chain Logistics Technical Multidiscipline Product Information Design Development Management Tracking the Constant of Change We are dealing with emergent realities; no longer with isolated groups of men, but with a systematically interdependent global community. It is this level of [reality] which we must keep before our eyes if we are able to inspire largescale action designed to ensure our collective and hence our individual survival Ludwig von Bertalanffy, General System Theory Engineering & Technology Management Group 3/24/2016 24