DEVELOPMENT OF DISCIPLINES BASED
MANUFACTURING INFORMATION SYSTEM
FOR SHIP CONSTRUCTION COMPANY
SEYED YASER BOZORGI RAD
UNIVERSITI TEKNOLOGI MALAYSIA
DEVELOPMENT OF DISCIPLINES BASED MANUFACTURING
INFORMATION SYSTEM FOR SHIP CONSTRUCTION COMPANY
SEYED YASER BOZORGI RAD
A project report submitted in partial fulfillment of the
requirements for the award of the degree of
Master of Information Technology (Manufacturing)
Faculty of Computer Science and Information System
Universiti Teknologi Malaysia
JULY 2008
iii
Dedicated to my beloved family and friends.
iv
ACKNOWLEDGEMENT
First and foremost, I would like to express my gratitude to God for His
abundant grace that I am able to be what I am today. I also wish to express my
sincere appreciation to Professor Dr. Mohammad Ishak Desa, Dr. Habibollah Haron
and Dr. Muhammad Ikhwan Jambak, for their precious guidance, encouragement,
critics, advices, knowledge and motivation. Without their support and interest, this
thesis would not have been the same as presented here.
I would love to express my thank you to all my fellow postgraduate students
who have been going through the thick and thins during the development of this
thesis. My sincere appreciation also goes to all my colleagues and friends who have
provided assistance at various occasions. Last but not least, a very special
appreciation goes to my beloved family.
v
ABSTRACT
New models and facilities are needed for the growing economy and the very
hard competition that it brings with it. Among the many models of information
systems two have been very strong: Workflow Management Systems (WFMS) and
Enterprise Resource Planning (ERP) systems.
While both systems are very strong for integration and other management
applications, a complete understanding of these methods is still lacking. This
research first aims at the importance of organization integration and the structure of
these two models is compared. Subsequently a comprehensive analogy of WFMS
and ERP systems and the major difficulties in integration of the models in
application is taken into account.
In the end a case study is performed on a major Iranian ship company called
SADRA. The current workflow in this company is first evaluated and put under
major scrutiny. In the end a new framework for the work flow of this company is
developed based on the basic concepts of ERP and WFMS. This Frame work reduces
a major amount of redundancy in the data patterns. The final result of this study is a
Discipline-Based Manufacturing Information System for a Ship Construction
Company.
vi
ABSTRAK
Model dan kemudahan baru adalah diperlukan di dalam pembangunan
ekonomi yang pesat sejajar dengan persaingan hangat yang searah dengannya.
Antara kebanyakkan model di dalam sistem maklumat yang kukuh dan stabil adalah
Sistem Pengurusan Aliran Kerja (WFMS) dan Sistem Pengurusan Sumber Organisasi
(ERP).
Meskipun
kedua-dua
system
adalah
kukuh
dan
stabil
dari
segi
pengintegrasian dan aplikasi-aplikasi pengurusan yang lain, kefahaman yang
mendalam dan menyeluruh berkaitan dengan kaedah-kaedah tersebut masih lagi di
peringkat yang lemah. Sasaran utama kajian ini adalah mengkaji kepentingan
integrasi organisasi dan menkaji perbandingan struktur kedua-dua model. Sejurus itu,
analisa yang komprehensif dan kekangan yang dihadapi di dalam mengintegrasikan
kedua-dua model di dalam sesuatu aplikasi juga diambil kira.
Akhir sekali, kajian kes dijalankan ke atas sebuah syarikat perkapalan Iran,
SADRA. Aliran kerja semasa organisasi tersebut terlebih dahulu dikaji dan dianalisa
dengan teliti. Hasil akhir kajian ini adalah rangka kerja baru untuk aliran kerja
organisasi tersebut yang dihasilkan berdasarkan kepada konsep ERP dan WFMS.
Rangka kerja ini mengurangkan jumlah pengulangan yang besar di dalam data.
Sistem Pengurusan Maklumat Pengeluaran untuk Syarikat Pembinaan Kapal.
TABLE OF CONTENTS
CHAPTER
1
2
TITLE
PAGE
TITLE
i
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENTS
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xi
LIST OF FIGURES
xii
Introduction
1
1.1- Introduction
1
1.2- Problem Statement
3
1.3- Project Objectives
3
1.4- Project Scope
3
1.5- Research Assumptions
4
Literature Review
6
2.1- Introduction
6
2.2- The reason of enterprise integration
7
2.3- Integration Requirements
8
Infrastructure
2.4- Role of information technology in the
organization
10
viii
2.5- Technology
10
2.6- Information technology
11
2.7- Information systems (IS)
14
2.8- Integration against Intermediary
16
2.9- The necessity of ERP utilization in
17
advanced organizational application
achievement
2.10- Required precautions for utilization of
18
integrated systems
2.11- Workflow Management Systems
19
(WFMS)
2.11.1- WFMS Objectives
21
2.11.2- Abbreviated Expressions in
22
WFMS systems
2.12-Enterprise Resource Planning (ERP)
28
2.12.1- ERP Concept
29
2.12.2- ERP systems objective
29
2.12.3- ERP Definitions
30
2.12.4- The procedure of Company’s
35
business performance
improvement by ERP
2.12.5- Required time for an ERP
36
project
2.12.6- Stages of ERP project
37
2.12.7- Fixed Part by ERP in Business
37
2.12.8- Principle Roles in ERP’s
38
project team
2.12.9- The Reasons for use ERP
39
systems
2.12.10- Advantages of using ERP
40
2.12.11- Design of ERP
40
2.12.12- Interfaces
40
2.12.13- Data Exchange
41
ix
2.12.14- Go live and support
42
2.12.15- Obstacles to success
42
2.12.6- Fixed Part by ERP in Business
42
2.13- Case Study
46
2.13.1- Ship Construction Industry
46
2.13.2- SADRA
46
2.13.2.1-History of SADRA
2.13.3- Problems statement of
46
48
SADRA
3
2.13.4 –Principals
48
2.13.5- Organization chart of SADRA
50
System Development Methodology
50
3.1- Introduction
51
3.2- Project Methodology
55
3.2.1- Planning Phase
55
3.2.2- Analysis Phase
56
3.2.3- Design, Develop & Testing
56
Phase
3.3- Evolutionary Prototyping
57
3.3.1- Planning Phase
58
3.3.2- Analysis Phase
59
3.3.3- Design, Develop & Testing
59
3.3.4- Methodology Justification
3.4- Chapter Summary
4
System Analysis
60
61
4.1- Introduction
61
4.2- Current Stage of SADRA
62
4.2.1- Task Description
62
4.2.2- Structure
64
4.2.3- Piping
65
4.2.4- Electrical
65
x
4.2.5- Outfitting & Machinery
66
4.2.6- HVAC
66
4.2.7- Painting
66
4.2.8- Architecture
67
4.2.9-Resource Distribution of
67
SADRA
4.3- Identification of the relationships
69
between different disciplines and
intermediary identification
4.4- Elaboration of the current (real-time)
72
planning unit, Sadra Co.
4.5- General structure of Work Process at
73
SADRA
4.6- Proposed New Framework
4.7- System Analysis
4.7.1- Identification and Automation
78
78
of linkage process between 7
disciplines
4.7.2- Data Flow Diagram (DFD) of
80
Current System
4.7.2.1- SADRA DFD level 0
80
4.7.2.2.- SADRA DFD level 1
81
4.7.2.3- SADRA DFD level 2.3
82
4.7.2.4- SADRA DFD level2.4
84
4.7.3- SADRA current stage Work
85
Flow
4.7.4- SADRA Schematic before use
87
ERP
4.7.5- Automation
4.7.5.1- SADRA Schematic after use
87
89
ERP
4.8- Propose the Conversion of Sadra work
structure from project-centered to
90
xi
discipline centered
4.8.1- Reasons of work
91
Structure modification from
project oriented situation to
discipline
oriented situation
4.9- Design a New System of SADRA
4.9.1- Explain Data Flow
94
95
Diagram(DFD) of new System
4.9.2- Work Flow of New System
98
4.9.3- Database and Entity
5
relationship Diagram (ERD)
100
4.10- Calculate the progress Report
110
System Design, Implementation and Testing
5.1- Introduction
112
117
5.2- User Interface Design
5.3- Example of System Input & Output
118
5.4- Database Development
120
5.5- Program Development
5.6- System Testing and Evaluation
5.6.1 Integration Testing
5.6.2 User Satisfaction Test
5.7- Conclusions
6
Conclusions
Future Work
References
xii
LIST OF TABLE
TABLE NO.
TITLE
PAGE
1
A structure for work integration
9
2
Top Companies in ERP (manufacturing business
46
technology)
xiii
LIST OF FIGURE
FIGURE.
TITLE
PAGE
1
Information Technology support for organizations against
12
Pressures
2
protective ring of information technology to protect the
13
organization from the environment pressures
3
Information systems coverage based on activity type in
15
different levels of an organization
4
A view from organization's applications development
18
5
Workflow system Specifications
21
6
Resources that form an Enterprise
30
7
Single system resulting from implementation of ERP
32
8
Materials, Information, and Cash Flow regarding to
34
organization, suppliers, distributers, and customers
9
Transition approaches
43
10
Types of ERP
45
11
Organization chart of Sadra
53
12
Flow of Research Activities
57
13
SADRA by Business Unit
63
14
Resource Distribution of SADRA
68
15
Work process at SADRA
75
xiv
16
Linkage processes between the seven disciplines
79
17
SADRA DFD level 0
80
18
SADRA DFD Level 1
82
19
SADRA DFD Level 2.3
83
20
SADRA DFD Level 2.4
84
21
Current Workflow of SADRA
86
22
SADRA before ERP Implementation
87
23
SADRA after ERP Implementation
89
24
Modified work structure of Sadra Company
90
25
Data Flow Diagram (DFD) of New System
97
26
Work Flow Diagram of New System
99
27
Entity Relationship Diagram
100
28
Project setup of new system
102
29
Project planning of new system
103
30
Project Planning Detail of new system
104
31
Resource planning of new system
105
32
Job order of new system
106
33
Daily progress report of new system
107
34
Work Order
108
35
Progress report
109
36
Monthly progress report
111
CHAPTER 1
INTRODUCTION
1.1
Introduction
Current organizations can not be managed by previous knowledge and view.
This is the fact that today’s developing management knowledge has achieved and
believed both in academic and experimental or industrial areas.
In the information period which is several decades old, extensive major
changes have been happened in the fields of organizations’ management and
administration. In the current situation, the global economy is based on information
and communication and other parameters like: research and development, intense
competitions and international markets put force on the producers to make their
product or services in a more extensive, diverse range and with the lowest price and
highest possible quality for the desired time of the customer.
Therefore, the main concern of the responsible managers is concentrated on
optimized utilization by means of principal planning for available resources.
Desirable and optimized usage of resources is the wish of each manager or planning
expert for all periods of time. As these resources are in correlation with each other,
therefore changing the condition of each of them can affect others conditions and this
2
is the point that preparation of an integrated and coordinated basis looks necessary
for resource management. Enterprise resources have two physical and informative
aspects that from a manager scope of view the informative scope of it is being used
for planning.
In the current period and also current competitive market the role of computer
based tools and techniques are obvious in managers’ decision making process and in
fact it becomes more considerable. As a matter of fact, as the real problems in
industry are the problems that are related with regularity, coordination, integrity,
education, understanding and communication not numerical and optimization
problems, therefore such computer integrated systems have found a special position
in managerial decision making process and dismissing such systems is a large gap in
competitive environment of current global markets for enterprise managers.
Such related components with these computer systems are data and
information, which are called Information Technology in the recent decades, provide
competitive tools for managers. Indeed, in these competitive environments more
successful managers are the one who have access to the true and accurate
information in the necessary periods of time which requires integration and
coordination between the achieved and received information to the managers. For
this purpose, many systems have been found which have been tried to integrate the
enterprises’ information like Workflow Management System (WFMS) and
Enterprise Resource Planning (ERP). Two mentioned systems, in their self extent of
definition, can integrate enterprise information (existing work procedures and
practical planning in enterprises) and also can be used to provide the information for
each level of management and assist managers in decision making process.
It is worthy to mention that some phrases and sentences are repeated many
times in this research and this is due to the importance and the key rule of them.
3
1.2
Problem Statement
Existing Business Structure of Ship construction company (SADRA) has
some problems about integration data and some side costs and Delay in delivery of
some phases of projects. If this structure and system become improve, it will help to
managers of this company to increase the productivity of this company.
1.3
Project Objectives
•
To study ERP and WFMS solutions for a ship construction company.
•
To study the current work flow in the manufacturing department of a ship
construction company.
•
To propose a new business structure based on WFMS and ERP for ship
construction company focusing on manufacturing department.
•
To propose a new system based on the proposed business structure for the
manufacturing department of a ship construction company.
•
To develop a prototype of a Discipline-Based Manufacturing Information
System for Ship Construction Company.
1.4
Project Scope
The project will be conducted within the below boundaries:
•
The focus of this project will be on the current activities of the ship
construction companies which generally include seven different
4
disciplines i.e. structure, piping, electrical, HVAC, outfitting and
machinery, architectural, and painting. All these disciplines have two
sub-divisions; engineering and execution.
•
Productivity, cost reduction, and project accomplishment time
reduction will be the tools for validation of the new design by
comparison between the current and new systems.
•
The proposed system will be focusing on the manufacturing
department of the ship construction company.
1.5
Research Assumptions
a- Integration and coordination expressions in the managerial literature were
discussed since 1930 until the current time and their definitions were changed during
these years. Now a day, coordination, which is a more general expression, refers to
people-oriented and also system-oriented subdivisions. However, integration is
mostly used in discussions about the relations between software systems. As in this
research the discussion is about enterprise and software aspects of integration,
therefore these two expressions will be used interchangeably.
b- In this research, enterprise integration means enterprise information system
integration that integrates operational procedures in workflow management systems
(WFMS) and integrates enterprise application programs in enterprise resource
planning (ERP) to integrate the whole enterprise (see Table 1).
c- In this research, enterprise integration refers to the enterprise itself and
does not include the integration between enterprises. For more information, refer to
reference 1.
5
d- In this research enterprise information integration refers to enterprise
information integration based on information technology (IT) and in general, based
on computer systems and traditional scopes of view of integration in this research is
looked as first steps of integration procedure which is not considered as total
integration activities.
CHAPTER 2
LITERATURE REVIEW
2.1
Introduction
This chapter is focused on organizational information integration in two
levels; system level and organizational level. Integration in the system level requires
normal standards, data definitions, and some meaning of communication
compatibility between different applications. This is exactly what normally means
the recent founded expression of enterprise application integration (EAI). However,
as mentioned by Marcos and others, systems integration is not only for software
integration and this integration is enough to the extent that assures the enterprise
efficiency and effectiveness. Enterprises are made up of, personnel, departments,
sections and tasks which must be integrated toward the organization’s purpose to
perform successfully.
In management literature both integration and coordination expressions were
discussed since 1930 until now and their definitions have been changed during these
years. Now a day, coordination which is a more general expression, refers to peopleoriented and also system-oriented subdivisions. However, integration is mostly used
in discussions about the relations between software systems. In this research
7
wherever the discussion is about the organizational aspects of integration these two
expressions are being used interchangeably. It is necessary to mention that this
research is about the third level of integration which means it does not discuss about
integration and coordination between organizations (considered organization with
other organization) and will only mention briefly about it. However, every
discussion about enterprise integration must realize and include those groups of
external requirements. For example, customers’ needs and supply chain performance
are increasingly important indicator parameters of organization’s effectiveness.
In this chapter, initially the reason for the question of why integration must
be considered in the organizations will be mentioned and frequently it continues to
the infrastructure that includes system and organizational integration. Afterwards,
the role of information technology in an enterprise for the enterprise integration will
be considered. And in other part of this chapter, the information systems toward the
enterprise integration will be covered. Then it will be discussed about why
integration is being used against intermediary in the organizations and at the end of
the chapter, the discussion will go for more specialization and will discuss about
enterprise resource planning system, which is one of the diverse information
systems, toward the enterprise integration and it will mention the required cautions
in the utilization of such integration systems in the enterprise [1].
2.2
The Reason Of Enterprise Integration
In today’s very competitive atmosphere toward the optimization of supply
chain, quality concentrated and minimization of cost manufacturing, companies
encounter hard task of design and information systems development. Not only for
task but also these systems support the never ending progress aspect of information
technology. The life cycle of software systems are reduced due to the continuous
progress of their supportive hardware policies and principal elements. From the
8
organizational scope of view, task-oriented freedom will be considered by the work
unit which is a rule in the recent flow of business process reengineering (BPR) in the
current organizations. The benefit of these modifications will be achieved by
increased productivity which is very dependent to the effective communication. The
side effect of this task-oriented freedom, on current manufacturing easiness is
multiple on systems above the original system that can easily integrate for achieving
to the suggested work returns [2].
2.3
Integration Requirements Infrastructure
A beneficial definition which is highly being used for both system
integration and enterprise coordination systems is mentioned by Maloon and
Chroston who are defining the coordination like managing the inter –task
subordinates (dependencies). Table 1 shows the extents of organizational and
technical (systematic) coordination/integration requirements in the high level of
granularity. Left, middle, and right columns show the list of task dependencies and
resources, shared software human and coordination mechanisms, and fundamental
supportive elements respectively.
Resources, mechanisms, and fundamental elements are roughly arranged
according to their region of application horizontally. The border between technical
(systematic) and organizational integration mechanism are shown by bold dark lines
in the cells of the Table 1. Pay attention that some mechanisms play a role in
different levels in the Table 1 (like electronic mail, web services, etc.). It has been
realized that for effective integration/coordination, it is required to pay attention to
the elements of all levels in both horizontal and vertical direction. There is an
integrated architecture to support the coordination in utilization of organization’s
materials, financial, and human resource.
9
Table 2.1: A structure for work integration [1]
Need for
integration/source
Samples of integration
Infrastructure/
mechanism
Enabling
Environment
Electronic mail, shared
Organizational Integration
Organization Units
Top management
(Departments/Tasks)
strategy, financing,
Policies/Organization structure
software, side groups
performance indexes
Electronic mail, shared
software, Knowledge
Decision makers
management systems
Face to face meetings,
Organization Data Integration
job design, performance
indexes
Workflow, shared
systems, supply chain
Working Processes
external to
management, web
services
Process holders, groups,
performance indexes,
service level agreements
Between processes
relationships, far
procedures calls,
messaging, enterprise
resource planning, web
Networks
Applications
services
Data dictionary,
databases, developing
rising language
Beds
Data
Systems architecture
Systems Integration
organization)
relationship
Standards
(Both internal and
management, customer
10
Data integration:
Definition: data integration is allowing the organizations to join and give the
report about the data from different sources.
Application integration:
Definition: when a collection of applications integrates, they can be loaded
for other tasks.
Frequently in this research, the discussion will be concentrated on two topics
of data integration between applications and working operations. For more
information about each of integrations in the Table 1 refer to the respective
references [1].
2.4
Role Of Information Technology In The Organization
Before discussion about the role of information technology in the
organization, it is necessary to clarify the key point of it which is the definition of
information technology. Information technology has different and diverse
definitions from the aspects of experts. Indeed, it is necessary to clarify the
technology first and then information technology to achieve a complete and
developed definition [3].
2.5
Technology
A feature consists of knowledge, organization, tool(s), and special human
aptitude(s) with a special combination that will manufacture the desired product [3].
11
2.6
Information technology
It is a technological feature, with comprehensive meaning, that produces,
and/or processes, and/or keeps, and/or distributes the information (including text,
audio, and video), and has two aspects of hardware and software. The role of
information technology in an organization includes the following fields:
•
Development tool
From the aspect of a tool, it is a motivating force of the organization [3].
•
Development basis
1- Activator of potential resources
2- Productivity coefficient of the organization is directly related to
the information technology employment coefficient.
3- If it is possible, organization’s resource productivity growth
without paying attention to the information technology is reversible
[3].
One major benefit of information technology is elimination of time and
location limitations. For instance, travels schedules can be arranged by using the
internet. Also, the requirements of the trip can be identified, purchased and used. [4]
By studying the Figure 2.1, the supportive role of information technology for
the organizations can be specified. The pressures pushed to the organizations from
the environment and customers can only be responded by information technology
tools, that is the reason of double side directions of the arrows. Without using
information technology, organizations will become weak day by day and finally will
be eliminated due to received pressures. The supportive role of information
technology must be appeared in all aspects of the activities in an organization. Such
aspects include leading decisions, cooperation method with cooperative companies,
reengineering of the processes, customer relationship management (CRM), supply
12
chain management (SCM), electronic commerce, product quality, and
manufacturing policies or offered services (see Figure 2.2) [3].
Customers and environment
Pressures
Organizations
and their
responses
Information Technology
Figure 2.1: Information Technology Support For Organizations
Against Pressures. [3]
13
Environment Pressure
Environment
Processes
reengineering
Organization
Electronic Commerce
Customer
Relationship
Management
Supply Chain
Management
Leading
Decisions
Manufacturing
policies/ servicing
Figure 2.2: Protective Ring Of Information Technology To Protect The
Organization From The Environment Pressures. [3]
Information technology progress in an organization totally depends on the
thoughts of the top level managers of the organization and their understanding about
the importance of information technology and the application of information
systems in organizing the tasks [3].
In addition, the magnitude of the need to the information systems also
depends on the level and importance that organization’s manager put on the
14
information around them. The more dependency of the management in their major
and minor decision makings to previous and current information of the organization,
and the better understanding of major benefits from eliminating the time and
position gaps, the more importance to the information systems which are achieved
from the consequences of information technology. Currently, the application of
information systems and its consequences turned to a necessity for making digital
economy, and governments are encouraging the organizations for the higher and
more application of this modern technology [3].
2.7
Information systems (IS)
Today, the usage of information systems generally and web based systems
specifically has its own position in every organization either large or small and
basically without the usage of its benefits, the organization can not turn into a
competitive organization [3].
An information system from the technical point of view, is a collection of
tied up elements which produces or collects (recovers), processes, saves, distributes,
and deletes the information for specific or general announcement, supporting the
managers in decision making process, operation performance and control and just in
time process and analysis [3].
Information systems have different levels that each level covers a group of
organization personnel. Figure 2.3 shows these levels, type of activity, and engaged
kind of personnel. As it shows, the closer we get to the tip of the pyramid, the
smaller becomes the activity types, so that operational personnel and top managers
have higher and lower engagement with organization’s principal activities
respectively. Leading level systems help top managers in organizational long term
planning. In addition, Middle management level systems help middle managers to
15
control organizational activities. Moreover, knowledge level systems help
organizational knowledge development personnel to generate and develop the
knowledge and finally, operational level systems help the operation personnel to
process the information. Above classification is based on the support type that
information systems provide for the personnel of the organization. [4]
Leading Level
Top Managers
Middle Managers
Management
Level
Knowledge
Personnel
Knowledge Level
Operational
Personnel
Operation Level
Human
resource
Distribution
Accounting
Finance
Manufacturing,
Assembly
and
Services
Selling
and
Marketing
Figure 2.3: Information systems coverage based on activity type in different levels
of an organization. [3]
Six principal types of information systems, included in these four levels,
cover the organization. The first type is executive support system (EES) (top
managers) which is performed in the leading level of the organization. Second and
third types are management information system (MIS) and decision making support
system which are performed in the management (middle) level. The fourth and fifth
types of information systems include knowledge development systems and office
automation systems (OAS) which are performed in the knowledge level of the
organization. The sixth type of information systems is operation analysis systems
which are performed in the operation level of the organization [3].
16
There is another classification for the information systems that is based on
the field of application of the systems. The main systems based on this classification
include the followings:
2.8
•
Accounting information systems.
•
Financial information systems.
•
Production/operation information systems.
•
Marketing information systems.
•
Human resource management information systems [3].
Integration against Intermediary
Integration and intermediary are the concepts that are being used
interchangeably in many cases. In most of the times the mentioned information
integration in the computerized systems is nothing but intermediary and such
systems are introduced integration incorrectly. Integration means shared utilization
of two or more applications from the same information with same stored data
resource. However in intermediary, the similar information used by different
applications is created each time and interchanges or transforms by means of
specific and defined informative, communicative or informative-communicative
(combination) methods between different systems. In information integration,
different systems clients are always facing to one group of information, but in
intermediary the clients do not have a united information until the information is
being synchronized at the end of specific period (night time, every one day, weekly,
or any other time period). Therefore, confidence to the compatibility of the
information will be withdrawn and accuracy in decision making process and
information systems performance will decrease [3].
17
2.9
The necessity of ERP utilization in advanced organizational application
achievement
Beside ERP, there are some expressions in the executive operations of the
organization which are important and utilization of other advanced application is
impossible without having such system. These applications can include customer
relation management, supply chain management, electronic procurement, etc. Figure
2.5 shows an upward relationship of utilized elements in an organization. In this
pyramid the lower elements are the prerequisites for higher elements above
themselves. The first row from the down includes the infrastructure elements that
are supporting other applications of the organization and also as this layer (row) is
the base and foundation for other application layers, its strength and weakness have
higher importance. The first element of this layer includes hardware and is called to
the elements that are tangible like computers. Next element is networks which
include two local (LAN; Local Area Network) and wide (WAN; Wide-Area
Network) parts. The local network part joins the computers inside the organization.
The WAN part relates the local network to the other local networks all around the
world. The third element is Database Management Systems (DBMS) with the task
of monitoring the access method of application to the stored database. Electronic
mail which is the next element of this layer is a very important element for
communicating inside and outside of the organization. Also, electronic mail has a
principal role in establishment of office automation and elimination of paper work.
And finally, internet port, the last element of this layer that includes the combination
of hardware and software. The second row of this pyramid is the ERP systems that
their existence is a necessity for other advanced applications in the higher rows. This
layer includes diverse collections which can be different from an organization to the
other one. The third row includes the customer relationship management, supply
chain management, electronic support, web based applications, and some other
applications. Data warehouse is located in the fourth layer. This information
includes chosen data from the database of the organization which have special value
for the organization. Therefore, they are being located in a specific database for
higher access rate to this information and data. [3]
18
And finally in the last layer, the top level managers’ communication part is
located. In this layer, the information is collected in a way from the lower layers so
they can be understood by the managers and is being presented in a specific format.
Executive head
Supply
Chain
Management: SCM
Pure
Network
Electroni
c
Costumer
Relationship
Management: CRM
Data Storage
Financ
e
Distribution
CR SCM
M
Human
Resource
Oth
Services/
Manufacturing
Communicat
Database E-mail
Hardwar ive networks
Internet
Management
System
Figure 2.4: A View From Organization's Applications
Development. [3]
2.10
Required precautions for utilization of integrated systems
The integrated nature of ERP solutions has made an all or nothing
phenomena from it. If in an organization, it becomes wide spread and is being
implemented successfully then it is all. It is nothing if it is not being implemented
and employed correctly. Therefore, the whole organization must be interested to
receive it and all must accept it. In implementation of integrated systems, there are
sensitivities that should be followed and this requires some precautions:
Most of the people are escaping from being responsible. The personnel must
be responsible in utilization of information systems.
19
Resulted changes due to the utilization of information systems may disturb
the existing settle down condition and make some changes in some areas which will
dissatisfy a group of personnel [3].
Personnel have to spend some of their time to learn the new tools which may
not be satisfying for some of them.
Integrated systems performance is different from the granular (islanded)
systems performance. The integrated system makes people bored or tired as they are
not getting used and are not familiar with the new performance. Nice and beautiful
graphical interfaces can solve this problem to some extent [3].
•
Some personnel may think that they lost their previous freedom in work and
they are limited by using these new systems.
•
It is required to explain the consequences and long view of the modification
and alteration for personnel in a comprehensive way.
•
Principal Managers must be very active during the transition period.
•
The required trainings must be presented completely and comprehensively.
•
The implementation period must not last very long.
•
Managers must be justified more and before personnel and must totally
support the implementation [3].
2.11
Workflow Management Systems (WFMS):
Workflow management system is a system that recognizes, creates, and
manages executive work flow while using the software and is organizing with one or
more workflow engine and it has the ability to analyze the process concepts and
directly affects the participants in the workflow and it is a system that uses the
applications and tools of information technology. [4]
20
Regarding to the definition of the workflow from the aspect of view of
workflow management coalition (WFMC), in fact this coalition offers a model with
workflow managerial vision and diverse executive techniques in different
environments.
All workflow management systems are recognized by three principal layers
(surfaces) that are as followings:
Manufacturing phase functions: actually is responsible for definition and
modeling of workflow process and its sub activities [4].
Execution phase control function: it is related to management of working
processes in an active, scientific environment and sequencing and prioritizing of
different activities that each of them will complete a part of a process [4].
Execution phase reactions: is being used between human clients and IT
application tools for different activities process [4].
21
Work process definition tools, modeling, and
analysis
Process Definition
and design
Manufacturing phase
Process Definition
Execution phase
Process
Modifications
Process control and
sample making
Activities and relationships
with applications and
clients
Workflow executive service
IT Tools and
Applications
Figure 2.5: Workflow System Specifications [5].
2.11.1 WFMS Objectives
To know that a process is defined with what tasks and sub-tasks, and who
must accomplish those tasks and which actions are required between the people and
computer software for fast performance of the tasks and also how the sequencing of
the tasks must help a system to achieve its objectives, are the initial objectives of
workflow management systems establishment and creation. As an example consider
the maintenance section of an organization while a maintenance request form for a
22
product arrives to this section, which process must be taken so that the maintenance
is being done on this product within the lowest time and highest quality and the way
that the form is being reacted can create workflow system that will take the
responsibility of this form guidance [6].
This is one of the simplest types of performing a workflow system.
However, each system requires some tools and instruments to achieve the
desired objective that work automation can be one of the workflow management
system tools [6].
Coordinating the tasks and automating the commercial processes by means
of sequencing organizing the work tasks, using information resources and or
appropriate people who are familiar with such activities are making the objectives of
workflow management system [4].
2.11.2 Abbreviated Expressions in WFMS systems
Process Activity: a description or logical step of a part of a work that its
execution is effective in process completion is called process activity. A process
activity may include a workflow manual activity or automatic activity. [6]
Workflow Activity: a logical step which is usually being done
automatically and the completion of the workflow will be closer by doing this. [6]
Manual Activity: manual steps which their execution together with
automatic activities will result in a process completion. [6]
Process: process related collection of activities which are connected in
series or parallel and they follow the same objective that this collection includes
automatic and manual activities. A process example is the execution of a process
definition which is directed by WFMS. [6]
23
Collection of activities which are related with each other by a special
working case and each process is a collection of activities that are put aside each
other by a special sequence and by their accomplishment a process can be formed.
A special working process may have different life cycles. Some of them may
last one day, one week or one month which is related to the complexity of that
process, type and period of process activities execution. [6]
A special working process may be accomplished with different methods.
Information technology and communication devices employment level and also their
execution in small areas or large companies might be different. Executing, directing
and sequencing of the activities of a process are the tasks of a workflow
management system. [6]
Activity: collection of events; collection of actions which happens logically
and or being evaluated. A process is a logical step in the workflow that includes
some information about the start and finish conditions, the participation level of
clients, clients’ information and stuff, devices or information that are required for
completion of this activity, necessary limitations about how to complete the activity
(like time), etc. [6]
Process Definition: computer imagination (introduction and present) of a
process which includes manual and automatic definition of it. [6]
Workflow Definition: a part of process definition which includes the
automation aspects of a process and stands against the manual process. [6]
Manual Definition: a part of process definition which includes the manual
aspects stands against the automatic process. [6]
Application Data: data which are being used by application devices
(applications) and information which have specific application and is not available
to workflow management system. [6]
24
Workflow Application: software(s) which are responsible for support and
process of working item to accomplish workflow activities. [6]
Business Process: a kind of process in the field of policy and infrastructure
of an organization to achieve the working objectives. [6]
Business Process Reengineering (BPR): includes process, re-evaluation,
analysis and investigation, definition and specification of execution sequence and
executive sub activities of working processes in an organization. [6]
Process Instance: imagination of sample and part of process definition
which includes its manual and automatic aspects. [6]
Workflow Instance: imagination of sample and part of process definition
which includes the automatic aspects of process (actually automatically looks to all
processes workflow). [6]
Definition Mode Process: periodic time which is responsible for the
automatic and or manual definition of process. [6]
Process Execution: the time period lasts for the manual activities and also
workflow related activities in a process. [6]
Manual Execution: the time period those human participants of the
workflow execute manual definition of the process. [6]
Sub Process Definition: when a process is being done it may require
executing the whole or a part of a sub process. Meaning that when a process is being
loaded for execution and it is calling for another process during the execution and
that process will be executed so that in this case this process is a sub process for the
main process. [6]
25
Tool: it is a device that calls the workflow applications by using workflow
management system. [6]
API (Application Programming Interface): (application software link) a
part of computer operating systems applications which provides the relationship
between different applications or between applications and clients. [6]
WAPI (Workflow Application Programming Interface): applications that
are being used in workflow servicing. In particular WAPI is the link between
applications and workflow processes. [6]
Workflow: partially or fully automation or simplification of the process. [6]
Workflow Monitoring: the ability to follow the workflow events during
workflow management system execution. [6]
Workflow Engine: a service software or device that prepares the execution
environment (execution phase) for workflow samples. [6]
Workflow Management System: a system which is totally responsible for
definition, management and execution of working flows by using workflow
execution software. [6]
Workflow Enactment Service: software services which are responsible for
forming, management and execution of the workflow processes by using devices
and soft wares. These services are possible by linking with workflow applications.
[6]
Workflow Item: imagination of sub processes and activities which play a
role in workflow process and putting them in the work list. [6]
Work List: a list of working items. [6]
26
Work List Handler: software element that is responsible for workflow
service management and directing by means of a list of workflow items. [6]
End User: usually the intention is the user or client itself that means a
person or an organization which receives and utilizes the result of computer
analyses. [6]
Interface: the linking agent between different parts of a computer, or
computer and its side devices or computers with each other. This word is being used
both for communication and intermediary communication. Intermediary
communication may be a simple or complex system. [6]
Transaction Application: a program that creates and keeps a shared
database in a local network, and includes the principal records of network clients’
registrations and storages like filling up the forms. [6]
Non-Transaction Applications: applications in a local network which
produces some data and they are required to be recorded and to be kept in a shared
database so that all network clients can have access to that. [6]
Groupware: applications which provide simultaneous cooperation and
effectiveness of small working groups. A sample of groupware is For Comment
which is designed for comments with coordination and collaboration. This program
enables each client of the group to insert some notes and apply modifications in the
content based on other members’ confirmation. With the development of computer
networks and internet, some web logs can be created to achieve this objective. [6]
Workflow Client Application: clients’ requests are entered to the workflow
system and will be responded with the activities and relations that they have with
clients and IT programs and are being processed by means of workflow machines.
After a while, working list and its items can be specified for each of the clients
based on these requests and achieved reactions. A clients request may also enter a
workflow system not directly and is being used as a tool; second link in the
27
reference model shows this subject. And it is worthy to mention that this is the
software that handles the work list and uses the related software with receiving
service to cover the more extended range of activities. [6]
Invoked Application: requests that are being done for a specific activity by
work flow execution service and these requests are generally related to the server
not the client. Required information for the access to these requests line name,
address, and other parameters form a part of process definition. And it is worthy to
mention that the required application is the same as workflow application and third
relation in the reference model mentions this subject. [6]
Although the workflow can be organized manually, many workflow systems
require an IT system to be executive and also for working layers automation, work
computerization is required and computerization of a workflow is being formed by
utilizing an IT system too.
Principally workflow is associated with concurrent engineering (redesign) of
work process. Workflow in fact includes activities estimation and evaluation,
analysis, modeling, definition and execution in a collection of working processes
inside the organization. Although all BPR activities are not being used in workflow
execution, workflow technology provides a specific solution for workflow logic
separation and simplifies the IT applications execution.
A workflow system provides the layer automation of a process that this
automation is being done by working activities sequence management, human
resource allocation, or IT to the steps of each of different activities [6].
28
2.12
Enterprise Resource Planning Systems (ERP)
ERP systems are as last managerial tools which are being used currently in
many countries of the world. ERP systems are the result of new findings in the field
of information technology and are subject to change and modify rapidly with the
continuous progress in this field. [7]
In this report, the concept, objectives, and different definitions of the ERP
systems are discussed initially.
2.12.1 ERP Concept
ERP is not only a hardware or software but also affects a group of thoughts,
architecture, performance, and development of an organization or an economic
activity to achieve the beneficial objects and customer satisfaction. ERP transformed
from a thought or special solution for industry and productive organizations to a
complete solution for all organizations even national and service provider
companies. In other words, ERP is a thought, technology, and system for more
effective management over different resources of an organization. This management
is being done by automation and integration of all operations and indeed
improvement of organization’s productivity and customers’ satisfaction [7].
29
2.12.2 ERP Systems Objectives
•
To show the situation of an order or product in an organization at each
moment.
•
A decision making process supportive tool.
•
The main objective of ERP system is to produce the proper product with
appropriate quality with suitable price in proper time while achieving more
benefit in addition to customer satisfaction.
•
ERP systems objective is to organize the information all around the
organization functions like purchase orders, customer data, personnel notes
by using a shared database (instead of separate databases) [7].
2.12.3 ERP Definitions
• ERP is a huge information system that includes all available information of
an organization and covers the information flow, transmission and control
and it is also a method for beneficial planning of all enterprise resources of
a company. In addition, it is a system that includes all productive resources
and plays a major role in progress and guidance of that organization toward
its main objective (that is gaining profit) by managing the resources [7].
(see Figure 2.6)
30
Enterprise
resources
People
Data
Material
Machine
Money
Figure 2.6 – Resources that form an
Enterprise [11].
• ERP systems are considered as hidden factory (data factory) or physical
factory image that the raw materials of this factory are all the information
and physical factory data. ERP product is mainly information which
provides appropriate base and bed by giving them to the managers and
personnel to enable them completely use it for enterprise progress and
decision making for activities [7].
• Enterprise resource planning system (ERP) is an integrated information
system that serves all the units inside the organization. Generally, an ERP
system includes software for production, order input, purchase and sale
receipts, general total notebook, purchasing, stocking, transportation, and
human resource. ERP system can cause beneficial planning, organizing,
and enterprise controlling for collaborating regularized and sequenced
production processes and mainly shows the tasks of each unit in an
organization, organization’s resources optimization, and progressing the
management level and economic benefits of the organization. By
implementation of an ERP system, the enterprise can effectively organize
the properties of the enterprise, reduce the properties costs, speed up the
delivery process, and progress the economical flow management [7].
• Enterprise Resource Planning (ERP) includes such a group of systems that
provide financial, order management, production, and relevant task
planning. Modern ERP systems which are recently added are concentrating
31
on global planning, working and implementing processes all over the
whole organization (inter-organization systems), due to the importance of
its sides like supply chain planning, supply chain managerial aspects and
their development including the supply chain between all organizations.
• ERP system can be defined as a service provider/receiver application which
is designed in a cooperative way and acts as an information source for an
entire organization. ERP systems are implemented in a distributed
environment. An extent of an organization which is compatible with
database enables to implement all working processes [7].
• ERP is a systematic solution based on information technology that provides
the enterprise resources by means of jointed system rapidly, with accuracy,
and high quality to the control of managers in different levels so that they
can properly manage the planning and operations process of the
organization. (in fact, ERP system is a solution that managers of different
levels collect, analyze and control the relevant information of their
organization working processes) [3].
• ERP system is a subsequent of extended integrated united applications that
progresses the production, financial, distribution, human resource, and
other working functions in a moment. Previously, separate applications
were being used in organizations to automate these working functions
(tasks). Which is different about ERP systems is that they integrate all
functions (tasks) toward the creation of a single system more than a group
of separate basic applications (see Figure 2.7) [8].
32
Finance and
Accounting
Constant
properties
Personnel
Availability
Service
Module
Marketing and
stocking
ERP
Machinery
Availability
Production
Module
Materials
Availability
Supply Chain
Management
Customer
Relation
Management
Figure 2.7 - Single system resulting from implementation of ERP.
[8]
•
ERP is an integrated and complete system that is formed from two twisted
streams: managerial techniques and technology tools. ERP solution is a
necessary base for electronic commerce especially in B2B branch and a
certain solution for more extensive and higher benefiting from the
organization’s resources. Organization will have integrated systems by
means of ERP which returns its own costs quickly, makes extensive
development in business methods, and appears considerable progress in
marketing and trading relationships. Indeed the additive value of the
organization can reach to its highest level. In addition, by means of ERP and
its providing services, a chain of suppliers, organization, and relationship
with customers (customer service) will be created [3].
Supply Chain
Management
(SCM)
Enterprise Resource
Planning (ERP)
Costumer
Relationship
Management
(CRM)
33
ERP systems are the systems that collect organization’s information by
means of information technology in all fields in an integrated way and with a
flexible structure and provides these information and planning results to all clients in
all levels by using special planning. Therefore, it is possible to prepare the base for
electronic commerce establishment by extending the ERP work field and set up its
relationship with suppliers, distributers, and customers field. Figure 2.8 shows the
relationship between the organization, distributers, and customers [3].
ERP applications are designed for assisting the companies to establish
competitive benefits in management of important working processes by means of
providing software architecture which help automation and integration of separate
processes like manufacturing and distribution. ERP helps the companies to respond
very quickly to customers’ expectations and market conditions [3].
Now a days most of ERP packages (software) are compatible with order
management, manufacturing, planning and scheduling, financial and accounting, and
human resource. Also ERP retailers are actively moving forward for outside
potentials completion which helps the internal processes joint and planning toward
suppliers and foreign companies. In addition, ERP packages help companies to
provide better services with less cost [3].
Generally, ERP packages provide and IP network infrastructure with high
scalability and availability. To support them, common divided LAN infrastructures
with switching topology and with higher performance must be improved. In
addition, it might be necessary to improve common more extended field networks
with higher performance [3].
34
ER
P
SCM
Top Level of
the
Second Level
Suppliers
Top Level of the
organization
Distributers
First Level
Suppliers
Second Level
Suppliers
Second Level
Suppliers
Inside
Organization
CR
M
Manufacturing
/
Production
/
Assembly
/
Packaging / Services
First Level
Suppliers
Information
Flow
Materials
Flow
Sellers
Customer
Cash
Flow
Figure 2.8: Materials, Information, and Cash Flow regarding to
organization, suppliers, distributers, and customers [3].
•
Enterprise Resource Planning software, or ERP, doesn't live up to its
acronym. Forget about planning—it doesn't do that—and forget about
resource, a throwaway term. But remember the enterprise part. This is ERP's
true ambition. It attempts to integrate all departments and functions across a
company onto a single computer system that can serve all those different
departments' particular needs.
That is a tall order, building a single software program that serves the needs
of people in finance as well as it does the people in human resources and in the
warehouse. Each of those departments typically has its own computer system, each
optimized for the particular ways that the department does its work. But ERP
combines them all together into a single, integrated software program that runs off a
35
single database so that the various departments can more easily share information
and communicate with each other [9].
That integrated approach can have a tremendous payback if companies
install the software correctly. Take a customer order, for example. Typically, when a
customer places an order, that order begins a mostly paper-based journey from inbasket to in-basket around the company, often being keyed and re-keyed into
different departments' computer systems along the way. All that lounging around in
in-baskets causes delays and lost orders, and all the keying into different computer
systems invites errors. Meanwhile, no one in the company truly knows what the
status of the order is at any given point because there is no way for the finance
department, for example, to get into the warehouse's computer system to see whether
the item has been shipped. "You'll have to call the warehouse," is the familiar refrain
heard by frustrated customers [9].
2.12.4 The procedure of company’s business performance improvement by
ERP
ERP automates the tasks involved in performing a business process—such
as order fulfillment, which involves taking an order from a customer, shipping it and
billing for it. With ERP, when a customer service representative takes an order from
a customer, he or she has all the information necessary to complete the order (the
customer's credit rating and order history, the company's inventory levels and the
shipping dock's trucking schedule). Everyone else in the company sees the same
computer screen and has access to the single database that holds the customer's new
order. When one department finishes with the order it is automatically routed via the
ERP system to the next department. To find out where the order is at any point, one
need only log into the ERP system and track it down. With luck, the order process
moves like a bolt of lightning through the organization, and customers get their
36
orders faster and with fewer errors than before. ERP can apply that same magic to
the other major business processes, such as employee benefits or financial reporting
[9].
That, at least, is the dream of ERP. The reality is much harsher.
Let's go back to those inboxes for a minute. That process may not have been
efficient, but it was simple. Finance did its job, the warehouse did its job, and if
anything went wrong outside of the department's walls, it was somebody else's
problem. Not anymore. With ERP, the customer service representatives are no
longer just typists entering someone's name into a computer and hitting the return
key. The ERP screen makes them business people. It flickers with the customer's
credit rating from the finance department and the product inventory levels from the
warehouse. Will the customer pay on time? Will we be able to ship the order on
time? These are decisions that customer service representatives have never had to
make before and which affect the customer and every other department in the
company. But it's not just the customer service representatives who have to wake up.
People in the warehouse who used to keep inventory in their heads or on scraps of
paper now need to put that information online. If they don't, customer service will
see low inventory levels on their screens and tell customers that their requested item
is not in stock. Accountability, responsibility and communication have never been
tested like this before [9].
2.12.5 Required time for an ERP project
Companies that install ERP do not have an easy time of it. Don't be fooled
when ERP vendors tell you about a three or six month average implementation time.
Those short (that's right, six months is short) implementations all have a catch of one
kind or another: the company was small, or the implementation was limited to a
small area of the company, or the company only used the financial pieces of the ERP
37
system (in which case the ERP system is nothing more than a very expensive
accounting system). To do ERP right, the ways you do business will need to change
and the ways people do their jobs will need to change too. And that kind of change
doesn't come without pain. Unless, of course, your ways of doing business are
working extremely well (orders all shipped on time, productivity higher than all
your competitors, customers completely satisfied), in which case there is no reason
to even consider ERP. [9]
The important thing is not to focus on how long it will take—real
transformational ERP efforts usually run between one to three years, on average—
but rather to understand why you need it and how you will use it to improve your
business [9].
2.12.6 Stages of ERP Project:
1-preparation
2-blue print
3-realization
4-final preparation
5-go live [9].
2.12.7 Fixed Parts by ERP in business
There are three major reasons why companies undertake ERP: To integrate
financial data. as the CEO tries to understand the company's overall performance, he
or she may find many different versions of the truth. Finance has its own set of
38
revenue numbers, sales has another version, and the different business units may
each have their own versions of how much they contributed to revenues. ERP
creates a single version of the truth that cannot be questioned because everyone is
using the same system. To standardize manufacturing processes manufacturing
companies especially those with an appetite for mergers and acquisitions often find
that multiple business units across the company make the same widget using
different methods and computer systems. Standardizing those processes and using a
single, integrated computer system can save time, increase productivity and reduce
headcount. To standardize HR information especially in companies with multiple
business units, HR may not have a unified, simple method for tracking employee
time and communicating with them about benefits and services. ERP can fix that
[9].
In the race to fix these problems, companies often lose sight of the fact that
ERP packages are nothing more than generic representations of the ways a typical
company does business. While most packages are exhaustively comprehensive, each
industry has its quirks that make it unique. Most ERP systems were designed to be
used by discreet manufacturing companies (who make physical things that can be
counted), which immediately left all the process manufacturers (oil, chemical and
utility companies that measure their products by flow rather than individual units)
out in the cold. Each of these industries has struggled with the different ERP
vendors to modify core ERP programs to their needs [9].
2.12.8 Principle Roles in ERP's Project team:
1-Project Manager (PM)
2-Project Administrator (PA)
3-Project Manager Assistant (PMA)
4-Change Management Assistant (CMA)
5-Quality Management Assistant (QMA)
39
•
IT Leaders (ITL)
6-Configuration Management Assistant (CFGMA)
•
Database Administrator (DBA)
•
Operation System Administrator (OSA)
•
Network/Hardware Administrator (NHA)
•
Software Administrator (SWA)
7-Stream Leaders (STL)
8- Power Users (PU) [9].
ERP (Enterprise resource planning) represents an expanded effort to
integrate standardized record-keeping that will permit information sharing among
different areas of an organization in order to manage the system more effectively.
2.12.9 The reasons for use ERP systems:
Organizations today deal with new markets, new competition and increasing
customer prospect. Along with those scenarios, organizations have moved into a
time of slow expansion and smaller profit margins. This has put a tremendous
demand on organizations to:
• Lower total costs in the whole supply chain
• Abbreviate throughput times
• Decrease stock to a minimum
• Recover Product quality
• Supply more dependable delivery dates and better service to the customer
• Professionally organize demand, supply and production [10, 11].
40
2.12.10
Advantages of using ERP:
•
Reduced joblessness in received data
•
Permit everyone to split same source of information
•
Let everyone to admission same source information
•
Permit everyone to observe and update immediately
•
Recognize problem more rapidly
•
Build single version about financial, proceeds and sales numbers to
CEO and BOD
•
Permit standardization of business processes
•
Let standardization of enterprise's information [10, 11].
2.12.11
2.12.12
Design of ERP
•
Make up and customize enterprise system to support organization
•
Build up Database
•
Industry precise settings
•
Unique individuality of exacting industry or market section
•
Company precise settings
•
Unique individuality of company [10, 11].
Interfaces
Programs that let enterprise system to switch data with inheritance systems
Inbound and outbound [10, 11].
41
2.12.13
Data exchange
•
Need to move historical or inheritance data to new system
•
Requires tradition programs
•
Usually one-time uploads [10, 11].
Direct Cutover
Parallel Transition
Old
New
Old
New
Phased Transition
Old
Pilot Transition
New
Figure 2.9: Transition approaches [10,11].
New
Old
42
2.12.14
Go live and support
•
Quality declaration checks and evaluations
•
Optimization and modification of the production setting
•
Summarize preparation and assessment of end-user needs
•
Modification of systems administration procedures
•
Project review [10,11]
2.12.15
2.12.16
Obstacles to Success
•
Fault to set up metrics
•
Resourcing the post-implementation stages sufficiently
•
Ignore management reporting requirements
•
Addressing confrontation to change unwillingly or not at all [10, 11].
Metrics
Business cases for ERP implementation are usually “unclear”
Clear performance metrics can explain expectations and help decide if the
implementation resulted in benefits
Cycle time improvements
Cost reductions [12].
43
Figure 2.10: Types of ERP [13]
Table 2.2: Top Companies in ERP (manufacturing business technology) [13].
(in millions of dollars)
Rank Company
Total Revenue
Top-ranking enterprise system suppliers
Comments
The largest enterprise application vendor
saw, in 2005, at constant currencies,
SAP
Newtown Square,
1
PA
software revenue increase 31 percent in the
10,083
U.S. its enterprise systems architecture
(ESA) is the focus moving forward, with
SAP.com
products sets for large, medium, and small
enterprises.
2
Oracle Corp.
12,888
For enterprise applications business, non-
44
Pedwood Shores,
GAAP revenues of $4.8 billion for year
CA
ending November 30, 2005; and new
Oracle .com
software license revenue of $95 million.
Leading applications vendor looks to
region initiative with bold acquisition of
PeopleSoft, Sietel, and others.
Total revenue figure combines that of Infor
and SAAGT; acquisition of SAAGT by
Infor Global
Solutions/SSA GT
3
Alpharetta, GA
Infor announced May 15, 2006, making it
1,511
the third-largest enterprise software
provider within a rapidly consolidating
Infor.com
market place in which “size and scale
matter.”
For more than thirty years companies that
joined the Sage Software family have
assisted small- and medium-size businesses
Sage Group
4
Irvine, CA
1,400
Sagesoftware.com
with a side range of management
applications and services, including
multiple ERP sites, CFM and ACT! North
American revenues $687.4 million for FY
2005.
With the merger with international,
Lawson provides software and services
Lawson Software
5
St. Paul, MN
346
solution in manufacturing, distribution and
services industries, as well as cross-
Lawson.com
industry enterprise extensions.
ERP, CRM, and SCM solutions for
midmarket companies and divisions of the
Epicor Software
Corp.
6
Irvine, CA
Epicor.com
global 1000:20000 costumers in 140
289
countries, in more that 30 languages.
Epicor manufacturing solutions manage
complex requirements such as configure –
to – order plus repetitive requirements such
45
as make – to – stock, for a true mixedmode environment.
E-synergy is a web-based collaboration
platform that unities all the capabilities
within a company; Macola ES is a next
Exact Software
7
Andover, MA
278
Exactamerica.com
penetration ERP system; JobBOSS is a
job-shop software solution; MAX is for
ERP in an SQL environment; and
Alliance/MFG is MRP II in a Microsoft
SQL or Access environment.
Component-based software in two areas:
life-cycle management, for assets and
IFS
8
Schaumberg, L
products; and midmarket ERP for
270
Ifsworld.com
distribution and manufacturing in mid-size
companies. Recently released IFS
application 7 is the product of more than
600,000 hours of development work.
A Fujitsu company, its ERP solution –
Glovia
International
9
El Segundo, CA
glovia.com – has as its technology basis a
246
Glovia.com
single integrated real-time database schema
on a single code set; one of the few
remaining ERP vendors focused
exclusively on manufacturing.
In May announced shipment of its flagship
ERP software with a Microsoft NET
QAD
10
Santa Barbara, CA
Qad.com
framework-based user interface and will
225
support Microsoft SQL 2005 database
technology in near future. This paves way
for advanced database reporting and
business intelligence capabilities.
46
2.13
Case Study:
2.13.1
Ship Construction Industry:
This industry comprises establishments primarily engaged in operating a
shipyard or manufacturing boats. Shipyards are fixed facilities with dry-docks and
fabrication equipment capable of building a ship, defined as water-craft suitable or
intended for other than personal or recreational use. The activities of shipyards
include the construction of ships, their repair, conversion and alteration, the
production of prefabricated ship sections and barge sections, and specialized
services, such as ship scaling, when performed at the shipyard [14].
2.13.2 SADRA
2.13.2.1 History of Sadra:
Sadra is a company working on naval structures constructions and has three
work sites in Iran. The considered company in this study is the branch of this
company in north of Iran which constructs the naval structures that are being used in
Caspian Sea and connected water fields.
There are around 2000 working personnel in Sadra working in different
engineering and non-engineering fields. Products of Sadra are usually constructed
under the supervision of DNV.
47
In addition to keep the initial objectives of itself, Sadra is working in the
fields of construction and maintenance of ships, oil and gas equipment establishment
and also infrastructure projects. Moreover, it is trying for commission services
export by concentrating on Asia and Africa markets.
Currently, this company has the following projects for design and execution
in Khazar Association:
•
Iran alborz semi-submersible Drilling
•
three vessels for platform movement in sea
•
three oil-containers (63,000 tons)
Activities of each project are being done in three major disciplines:
1. Engineering and technical:
This section is responsible for design of the required drawings of
each project by means of relevant professional programs.
2. Executive section:
All construction operations and installation operations are carried out
based on designs and construction supervision and each system execution
regarding to its working condition is being performed by the personnel of
this section.
3. Planning section:
Planning for the tasks that must be done, putting these operations in
tables, and work progress supervision based on time table in above two
sections are the responsibilities of this section that it itself include two
planning and executive sections.
48
2.13.3 Problems statement of SADRA
•
Not integration between resources of the organization
•
Delay in execution of some programs
•
Increase of some side-costs
2.13.4 Principals
Investigations, employing experiments, and considering active organizations
with similar working fields with the purpose of predicting the base formation and
possibility of working efficiency improvement and organization productivity are
considered in preparation of this document as an infrastructure and principal.
Prediction and following the organizational relationships’ standards in
executing the commission projects of organization based on the structure of PMI
(Project Management Institute) standards toward the assurance of correct
performance of the organization in inside organization relationships will be
completely considered.
Principal points for pre-assumption and benefits of chart execution include
the followings:
•
Creation of the compatibility base of the diagram with the general
diagram of the organization except professional cases
•
Creation of the compatibility base for the execution section of the site
with similar and active organizations
•
Creation the base for work professionalization and move toward mass
production with standard efficiency
49
•
Creation of the base for measurement stations establishment and
stability of working efficiencies
•
Creation of the base for experiments transfer and correct training of
working teams
•
Creation of the base for not concentration of the works in a section of
the organization
•
Creation of the base for each section response and correct distribution
of the responsibilities
•
Creation of the base for group and team work.
2.13.5 Organization chart of SADRA:
As shown in Figure 2.11
50
Figure 2.11: Organization Chart of SADRA
CHAPTER 3
SYSTEM DEVELOPMENT METHODOLOGY
3.1
Introduction
Methodology is a procedure, method or tecnique that is used in analyzing,
identifying requirements and designing systems that will be developed.
An
appropriate methodology, models and techniques must be defined to fit the system
that will be developed according to user requirements. Selecting the best approach
that suits the objectives and the scopes of the project is crucial to ensure smooth and
systematic development of the project.
Before a project is developed, a careful and proper project planning is
important. There are certain things that are to be taken into consideration including
identifying the right methodology that will be used in the overall project
development. Besides, project schedule must also not to be missed out and properly
planned.
This
chapter
discusses
project
methodology,
system
development
methodology and the workflow of the overall project. The main purpose of the
project is proposing a new system based on the new business structure for a ship
52
construction company. A prototype of a Discipline-Based Manufacturing
Information System for ship Construction Company is also developed.
3.2
Project Methodology
Project methodology can be defined as a guideline that needs to be followed
to ensure that activities within the project are well organized. Implementation of
correct and suitable methodologies will ensure that intended project objectives and
scopes are met.
The required methodology for this project development is started from
planning phase, analysis of the current workflow in a ship construction company,
proposing a new business structure based on WFMS and ERP, proposing a new
system based on the proposed business structure, designing proposed system
structure and developing a system prototype for a discipline-based manufacturing
information system for a ship construction company, followed by the
implementation and application testing. Figure 3.1 shows the overall project
development methodology framework.
53
•
•
•
Planning Phase
Identify Project Objectives
Identify Project Scopes
Identify Project Methodology
Analysis Phase
• Study on ERP and WFMS
solutions for Ship Construction
Company
• Study the current work flow of the
manufacturing department of a ship
construction company
• Propose a new business structure
based on WFMS and ERP for
manufacturing department of a ship
construction company
• Propose n new system based on
the proposed business structure for
the manufacturing department of a
ship construction company
Design, Develop & Testing Phase
• Identify system requirement
• Develop system prototype
• Implement system prototype
• Test developed application
• User acceptance
Figure 3.1: Project Methodology Framework
3.2.1 Planning Phase
In this first phase of the project, problems, opportunities and objectives of
the project are identified. This phase is critical to the success of the project to
ensure that the right problems are identified.
54
Before deciding on the title of the project, business process are analyzed to
identify existing problems within the existing business process. Once identified, a
title is proposed and further discussed with a supervisor. Based on the problem
statements derived from the problem identification, objectives are analyzed and
defined by addressing specific problems or opportunities.
Opportunities are
referring to situations that can be improved through the use of computerized
information systems.
Project scopes are also identified to set limitation and
boundary of the project. Project methodology is then identified based on the study
of the project background.
3.2.2 Analysis Phase
In analysis phase, the activities are including literature review, study on ERP
and WFMS solutions for ship construction company, study on the current work flow
of the manufacturing department of a ship construction company, propose a new
business structure based on WFMS and ERP for manufacturing department of a ship
construction company and propose a new system based on the proposed business
structure for manufacturing department of a ship construction company. This phase
is crucial to gain in-depth understanding and knowledge in developing and
Discipline-Based Manufacturing Information System For A Ship Construction
Company. This phase also attempts to delve into the problem or opportunity more
fully. Several areas of ERP and WFMS related to manufacturing in a ship
construction company can be figured out such as best practices, common procedures
and features of a Disciplined-Based Manufacturing Information System for a Ship
Construction Company by the end of this phase.
55
3.2.3 Design, Develop & Testing Phase
After user requirement has been obtained in analysis phase, the following
phase will justify how the information gathered will be able to meet user
requirements. In this phase, interfaces of the prototype are designed. Besides,
database design for the system is done. After the completion of prototype, testing of
prototype will be done. User acceptance test will also be conducted with expected
result that the developed prototype will support the user requirements and fulfill
overall project objectives.
Figure 3.2 : Project Development Workflow
56
3.3
Evolutionary Prototyping
Evolutionary prototyping has been chosen as the development strategy or
methodology for this project.
It targets the speed of product delivery and
concentrates on identifying requirements so that the first version of the product can
be delivered quickly although with incomplete functionality of the first version of
the product.
Besides that, it improves user development communication and
introduces flexibility and responsiveness to the development process. Furthermore,
the system that is built using this methodology is more likely to meet user needs
(Efrem, 2000). They are a few main stages or phases involved in evolutionary
prototyping method, as shown in Figure 3.3. The phases involved are as follows as
shown in Table 3.1. The workflow of the phases in evolutionary prototype is shown
in Table 3.2.
Table 3.1 : Activities in Evolutionary Prototype
Phase
Activities
Planning
•
Determine the methodology that will be used in
the project development.
Analysis
•
Identify user requirements and create user
specifications.
•
Design, Develop &
Testing Prototype
Design a prototype that will be built based on the
user requirements.
•
Build the prototype based on user specifications.
•
Test the prototype that has been built and show
the prototype to the user.
57
Figure 3.3 : Evolutionary Prototyping Method (Pressman, 2001)
3.3.1 Planning Phase
In the planning process, verification of the methodology that is to be used
should be done to verify whether evolutionary prototyping approach is appropriate
to be applied in the development of Discipline-Based Manufacturing Information
System for a Ship Construction Company. Research and study have been carried
out and evolutionary prototyping is in fact the most suitable development paradigm
that can be used in developing a Discipline-Based Manufacturing Information
System for a Ship Construction Company.
58
Besides identifying the suitable methodology, user identification is also done
in planning phase. For this project, the intended users are managers and the staffs of
the manufacturing department of the ship construction company. Project schedule is
also done in this phase which is represented in a Gantt chart as shown in Appendix
A and Appendix B.
3.3.2 Analysis Phase
The purpose of this stage is to learn more regarding the specification of the
system that will be built. This phase will also include studying of current work flow
of the manufacturing department of a ship construction company. This will help to
give the overview of the overall business processes in the new proposed system.
Studies are mainly done through literature review, case studies and also past
experiences. Current system is also analyzed to study the common features and
functions of a manufacturing information system for a ship construction company
besides studying the existing business structure of the selected case study. Based on
the studies, problems in the existing system are identified.
3.3.3 Design, Develop & Testing Phase
Soon after system specification has been specified in the analysis process,
prototype design which includes system module design and user interface will be
built. Prototype has been design in the previous process, so a prototype will then be
built.
59
The development of the first prototype was using a fourth generation
programming language to reduce the consumption to time and cost for the building
of the prototype. Visual Basic Dot Net has been used to build the first prototype.
The advantage of using a fourth generation programming language is it is easy to
use and saves a lot of time. Selected users need to be fully involved in this process
to get full feedback regarding the prototype which represents the system that is
going to be built.
Testing is not the last process in the development of this system. In
evolutionary prototyping process, if the first prototype that has been built doesn’t
meet user requirements or system requirements, the prototype will need to be
modified a few more times until it meets the system requirements. But, if the
prototype that has been built met all the system requirements it will be accepted as
the new system.
During testing phase, testing of the prototype will be done. The prototype
will be shown to the selected users of the system. They will collaborate in testing
the prototype which represents the system that will be built based on users
requirements. If the group of users is satisfied with the prototype, it will be accepted
as the new system and vice versa.
Table 3.2: Workflows of Phases in Evolutionary Prototype
Workflows
Output
Planning Phase
Methodology: Evolutionary
Task 1
Identify the methodology,
prototype
techniques, and tools that will be
User: Staffs of SADRA
used in project development.
Project schedule: Gantt chart.
Task 2
Identify the users.
Task 3
Build project schedule.
60
Analysis Phase
An overview of current business
Task 1
Study existing ship construction
processes and structure of ship
company and their business structure,
construction company.
workflow, literature review, case
Features and functions of
studies.
existing business structure of
Analyze the current business
the manufacturing department
structure and manufacturing
of a ship construction
information system for ship
department.
construction company.
Problems of current business
Identify the problems that occurred
structure and work flows.
Task 2
Task 3
in current manufacturing department
of a ship construction company.
Design, Develop & Testing Prototype Phase
System modules, features,
Task 1
Design the system module, features
functionality
and functionality.
Conceptual design using use
Task 2
Initial design of the system.
case diagrams, class diagrams,
Task 3
Interface design of the prototype.
activity diagrams, sequence
Tack 4
Build prototype.
diagrams.
Task 5
Present the prototype to the users for
System prototype development
evaluations. Receive feedback from
The real system
users and decide whether further
improvement to the prototype is
required.
3.3.4 Methodology Justifications
Evolutionary Prototyping has been chosen as the methodology that will be
used for the development of the Discipline-Based Manufacturing
Information System for Ship Construction Company based on the reasons as
stated below:
61
i.
This methodology is flexible and can improve communication
between system developer and the user. Change is no longer
something to be avoided but it is built into the process and
encouraged.
ii.
High cost in building a new system over and over again can be
prevented through this methodology. If a prototype doesn’t meet
the requirement of a user, it can always be modified without the
need to build a new prototype starting from the start. Besides that,
a clearer picture of the requirements that a user needs can be
identified through the usage of the prototype. This, the user can
give better suggestions on how to improve the system until the
system has met their requirements and they are satisfied with it.
This can also prevent from sudden or last minute change at the
end of the system development by the users which can lead to
longer development time and higher cost.
iii.
Systems that are built through this methodology are more likely
to meet user requirements or needs than a system that is built
through SDLC.
iv.
Allows real view of the system by showing the developed
prototype to users. This makes it easier to collect feedback and
comments from the users which later the comments and feedback
will be used to further enhanced and improve the prototype until
all user requirements are met.
62
3.4
Chapter Summary
In this chapter, we had identified the guide line and procedure that will be
applying in developing the project. Project methodology leads the work throughout
the life cycle of a project. Development methodology consists of different project
phases that are very important in ensuring the success of a project. The correct
methodology should be use in order to build a good system. The methodology will
be the guidelines during the development process of the system. It is important to
build a system that meets user requirements. Evolutionary prototype has been
chosen as the system development methodology for this project.
CHAPTER 4
SYSTEM ANALYSIS
4.1
Introduction
Initially in this chapter the task’s descriptions of different working levels of
Sadra Ship Construction Company will be considered and afterward the
relationships and working steps of the whole organization will be explained.
Next, the current projects that are under execution will be briefly introduced
and also, current working procedure of this company and organization of human
resource relevant to each project will be argued which will clarify the present
infrastructure of operation performance of this company.
Towards the end of this chapter, focus will be given to the manufacturing
department of Sadra, which is divided into two main categories of engineering and
execution. Both named areas comprise of the disciplines of structure, piping,
electrical, HVAC, outfitting and machinery, painting and architectural. It must be
included here that the areas of planning and supplies (warehouse) are also
incorporated into the production process.
64
In this chapter, one product of the company, namely vessel number 1 will be
taken as sample, where every task and raw material pertinent to the production of
the vessel-as the key inputs to the process-will be taken into consideration
4.2
Current Stage of SADRA
4.2.1 Task Description
As mentioned previously, currently there are three in progress business in the
company which are (See Figure 13):
•
Semi-submersible Drilling
•
Three vessels
•
63,000 tons Tankers
Figure 4.1: SADRA by Business Unit
As stated in the scope of this project, seven working disciplines are working
in this company that the existence of all of them is required for project
accomplishment and they are:
65
•
Structure
•
Piping
•
Electrical
•
Outfitting and Machinery
•
HVAC
•
Painting
•
Architecture
Planning unit is responsible for coordination of these units and also is
responsible for solution finding, report presentation, and projects execution
procedure control. Indeed, planning section will be also considered as an important
part of the company and required basic changes will be done for this section as well.
At first, each of above disciplines must be introduced and their tasks
description in the projects must be specified. Then, the relationship between them
must be specified and the type of the relationship and the third parties that interfere
in these relations must be clarified. Finally, the general structure which governs
Sadra Institute will be noticed describes the distribution and the method of use of
these disciplines.
4.2.2 Structure:
This discipline has the responsibility of performing the buildings related jobs
of the products. The frame and structure of each product is the most important part
of each project. The working personnel of this section must have the abilities of
calculation, design, and correct estimation of the forces and pressures put on each
element of the product. In addition, they must have the ability of recognizing the
metals and the raw materials which are being used for each part of the product.
66
4.2.3 Piping:
This discipline has the responsibility of performing all piping related
activities. As you know, there is a large volume of pipes with different dimensions
that are being used in any sea structure. This group has the responsibility of pipes
transition places and type of pipe joints design. In addition, recognition of high
pressure or low pressure pipes usage and their correct location is the responsibility
of this group.
4.2.4 Electrical:
This discipline has the responsibility of bringing the electrical power to all
parts of the product. To do this, cabling system, telecommunication systems,
installation of all electrical, lightening, and telecommunication devices are the tasks
of this group. In addition, recognition and design of the lights, cables, and …
passages and also recognition of the cable types and their resistance for each section
are their tasks as well.
4.2.5 Outfitting & Machinery:
Tasks of this group include design and execution of the operations related to
installation of handrails, stairs, different machineries, etc. by considering the
strength of the foundation of different machineries.
67
4.2.6 HVAC:
This discipline has the responsibility of providing central air conditioning
system in each sea structure. It must design and execute the correct path of warm
and cold air passage channels and also specify the correct location its machinery.
4.2.7 Painting:
Painting is one of the final operations of each project, but it is not necessarily
the last operation. For example, in some cases some parts must be painted so that
different disciplines enable to continue their activities. This group must be able to
specify the type and material of the paint which is being used for each part. For
example, the type of the paint for the body of the sea structure is different from the
type of the paint which is being used for interior parts of it. This group also must
calculate the amount and volume of the used paint for each part.
4.2.8 Architecture:
One of the most important disciplines for each sea structure is architecture
discipline. High percentage of outside or inside view and beauty of each structure
depends on this discipline. Activities of this discipline includes: isolation, paneling,
roofing, flooring, curtain installation, etc. This group has the responsibility of
correct calculation of the amount and volume of architecture related materials and
also their installation.
68
4.2.9 Resource Distribution of SADRA
Figure 4.2 shows the discipline and personal distribution that already
explained them.
Figure 4.2: Resource Distribution of SADRA
69
4.3
Identification of the relationships between different disciplines and
intermediary identification:
In general, each of these seven disciplines (Structure, Piping, Electrical,
Outfitting & Machinery, HVAC, Painting, and Architecture) is made up of two
major parts of engineering and execution.
1. Engineering section of each discipline designs and prepares the executive
work plans after true and accurate calculation and they will be given to
the executive group of the same discipline. This process is being done by
the intermediation of the planning group. Engineering section must fill
up the work order form after providing the finalized work plan execution
and send it to the planning section by means of human resource. Planning
section sends it to the yard and executive section by means of human
resource after reception and recording the work order in computer. The
executive section of the project, then, starts to execute and produce the
product by using these plans. A sample of work order form is shown in
appendix D.
The executive section of each project is made up of following people:
a. Executive engineer
b. Technician
c. Forman
d. Workers supervisor
e. Workers:
i. Welder
ii. Assembler
iii. Cutter
iv. Grinder
v. Isolator
vi. Panel maker
vii. Painter
70
viii. Sand blaster
The executive engineer of each discipline starts to perform its operations
with aim of its group after receiving the work order and executive plans.
2. If a problem occurs during the operation of executive group like uncompatibility between work place and plans or clashing between the
operation of a group with another group in the working area, and if this
interruption was not estimated in the engineering section, the executive
engineer requests the engineer of the design and engineering section to
come and observe the work place in the yard by means of telephone or
written letter. Modifications will be done on the plans after the visit of
design engineer and follows the previous path to arrive to execution
section. Also, the informing process from the execution section to
engineering section is being done by means of planning unit as well and
the last revision of the plans are being recorded in planning unit.
3. The executive section requires a MIV form to receive the materials from
the stock to produce the product. This form is filled up by the engineer of
the engineering section and being sent to the executive section by means
of human resource. A sample of MIV form is shown in appendix E.
4. Executive section can receive its required materials from the stock by
sending this form (MIV) to the stock by means of human resource as
well.
5. Planning section also specifies the schedule of the performing activities
of different groups and their priorities by sending the weekly working
program of each discipline by means of human resource to the execution
and engineering sections.
6. Each section including engineering and execution is required to submit
its progress report to the planning section. This is a paper based report
71
and again will be sent to the planning section by means of human
resource.
7. In addition to this, the planning section also collects work progress
reports by means of project control personnel that are being sent to the
project execution place to verify and investigate the validity and
correctness of the received reports.
8. If a problem occurs between different disciplines (like having different
ideas about a situation) during the execution of the project, for example
piping discipline and HVAC discipline find corruption about the priority
of the execution of their plans in the same working area or the piping
discipline asks the architecture discipline to bring the panels of a specific
place to re-execute a work, this request will be asked in an informal and
oral manner initially between the responsible personnel of each
discipline. If they agreed on the case the project will be continued, else a
formal letter will be sent to the planning section and a meeting will be
held to solve this problem. This letter is a paper-based one and will be
delivered by means of human resources. The results of the mentioned
meeting will be recorded and written and also will be announced to the
responsible people of each section by means of human resource.
4.4
Elaboration of the current (real-time) planning unit, Sadra Co.
As explained previously, the following three projects are currently under
development at Sadra:
•
Semi-submersible drilling
•
Three vessels
•
63 megaton tankers
72
Sadra planning unit functions in the following manner:
Although an independent planning unit has been defined by the company, it
is in reality integrated into each separate project, and instead of overlooking the
planning process throughout the entire company from without, it is rather
interactively involved in processes that run independent of the planning unit
themselves.
Consequently, a professional manpower group is involved in the process of
control and planning that is not synchronized into team work.
Let us take the drilling platform as an example. A team is assigned
exclusively to the planning and project supervision tasks on this platform that has
been distributed over the various areas of the project based on task division.
Similar teams have likewise been assigned to the tow vessels and the tankers.
Therefore it is observed that for each project one independent team has been
assigned with planning and supervision tasks, that most often do not interact with
each other either.
4.5
General structure of Work Process at Sadra:
Here, the distribution of manpower throughout the various project areas in
Sadra will be explained. In each of the three major projects described earlier the
following expertise will be distributed over different areas of work:
1. Chief Project Manager
2. Engineering Manager
3. Operational Manager
73
4. Piping Superintendent:
a. Engineering
b. Operations
5. Structural Superintendent:
a. Engineering
b. Operations
6. Electrical Superintendent:
a. Engineering
b. Operations
7. HVAC Superintendent:
a. Engineering
b. Operations
8. Outfitting and Machinery Superintendent:
a. Engineering
b. Operations
9. Painting Superintendent:
a. Engineering
b. Operations
10. Architectural Superintendent:
a. Engineering
b. Operations
As of the present, Sadra functions as the axial project, around which the
above areas operate, as illustrated in the following diagram (it is important to note
that this diagram applies to each of the three projects mentioned for Sadra) (See
Figure 4.3).
:
74
Figure 4.3: Work Process at Sadra
75
4.6 Proposed New Framework
Here, manufacturing systems and processes in Sadra Co. will be analyzed,
comprising of:
1. The identification of relations between the previously mentioned five
disciplines involved.
2. Illustration and elaboration of Data Flow Diagrams
3. Illustration and elaboration of Work Flow for the existing production line
Following this identification process, theories will be presented for the
automation of the current system. The outcome of this analysis will be a proposal for
a new work system changing from the current project-centered form into a
discipline-centered one. The said proposal will be used in the development of
Sadra’s current production line based on ERP.
The next stage is to design the new production system for the company, for
which task the following steps have been taken:
1.
Illustration and elaboration of Data Flow Diagram for the new system
2.
illustration and elaboration of Work Flow for the new system
3.
Designing the information system comprising of Database and Entity
Relationship Diagram designs using Access software.
4.
Designing the interfaces for the use of different users.
The new system will then be used in the manufacturing of products at Sadra,
including the previously mentioned Vessels.
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4.7 System Analysis
4.7.1 Identification and automation of linkage processes between the seven
disciplines:
Under the previous topic, a brief overview was provided for the different
disciplines at work and their duties. Here the connection between disciplines will be
elaborated through the following theoretical definitions and diagrams (See Figure
4.4):
A: MIV and Work Order preparation
B: Request for revision of plans and issuance of new Work Order
C: Receiving and storage of materials
E: Progress report
G: Meeting request for conflict resolution between different disciplines
R: Preparation of revised plans
4.7.2 Data Flow Diagrams (DFD) of Current System:
For analyze the current sage of SADRA drawing all Data Flow Diagrams
(DFD) is necessary that showed all of them in below.
4.7.2.1
SADRA DFD level 0
Here, Sadra Co. has been presented in the overall view wherein the CEO,
clientele, and the respective departments of Engineering, Operations, Quality
Control, and Planning interact (See Figure 4.5)
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OPERATIONS UNIT
SEND
RECORD
AND SEND
STOCKS
RECORD AND
SEND
RECORD AND
SEND
SEND
SEND
CONTR
PLANNING UNIT
SEND
RECORD AND
SEND
SEND
SEND
ENGINEERING UNIT
.
Figure 4.4: Linkage Processes Between The Seven Disciplines
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Figure 4.5: SADRA DFD level 0
4.7.2.2 SADRA DFD level 1
The diagram displays the CEO receiving purchase orders from the client and
conveying the same to the Engineering Department. The engineering department
provides working drawings, and conveys them together with the MIV to the
planning department. This latter sends the same after recording them, to the
execution and operations department, where to release materials the MIV will be
sent to the warehouse, and then will proceed with the construction of the ordered
product. Following the completion of the product, Quality Control Department will
inspect it thoroughly, before delivering it to the client (See Figure 4.6)
.
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Figure 4.6: SADRA DFD Level 1
4.7.2.3 SADRA DFD level 2.3
The diagram illustrates the planning department receiving working drawings
and MIVs from the engineering department, records the said drawings and MIVs
and sends them to the execution and operations department (See Figure 4.7).
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Figure 4.7: SADRA DFD Level 2.3
4.7.2.4 SADRA DFD Level 2.4
The diagram displays that the working drawings as produced by each
discipline in the engineering department-together with the attached Work Orders and
MIVs- will be sent directly to the corresponding disciplines under the operations
department for production (See Figure 4.8).
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Figure 4.8: SADRA DFD Level 2.4
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4.7.3 SADRA Current Stage Workflow:
The workflow of current stage of Sadra showed in below that is necessary to
design a new framework of this company (See Figure 4.9) Here the different stages
of production and delivery at Sadra have been illustrated.
Figure 4.9: Current Workflow of SADRA
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4.7.4 SADRA Schematic before use the ERP System:
As Figure 4.10 implies that the Sadra Company has been configured in
various sections such as Manufacturing, Human resource, Finance, Stock and
Transportation in which every section has a specified related mechanism. In the
normal operation, through the Business Process, each part is communicating with its
own working system, in where this interaction is independent of else sections of the
other systems.
Figure 4.10: SADRA before ERP Implementation
4.7.5 Automation
As witnessed, the planning unit plays a vital intermediary role in the work
processes of Sadra; and because paper forms and manpower are important in the
interdisciplinary correlations, thus for the improvement of the said processes the
following aims are to be achieved:
84
•
Manpower shall be eliminated from the intermediary processes and as mail
couriers
•
Paper forms and letters shall be eliminated
•
The intermediary role of the planning department shall be optimally reduced
•
For the abovementioned aims, and to speed up processes, and minimize
human errors, the following objectives shall be pursued:
•
A general database accessible to all staff in the company should be created
With the presumption that Sadra is equipped with intranet, all handwritten
forms and letters including work orders and MIVs shall be converted into
computerized formats.
Along designing the pertinent computerized system, it must be remembered
to replace man with computer, and thus to take not of all possible forms and letters,
and to equip every pertinent staff with personal computers. Upon pressing the
ENTER button, forms must be first saved to the database and then transferred from
one unit to another. Accessibility level and time must be defined for various areas of
the database. As described earlier, in every Project construction process the seven
named disciplines are involved; meaning to say that the outcome of this project will
be applicable to every Project production line.
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4.7.5.1 SADRA schematic after use the ERP:
In Figure 4.11, it can be observed that every part of the Sadra Company
such as Manufacturing, Transportation, Human resource, Finance and Stock has
been integrally organized which may centralize upon the Business processes
therefore vendors and customers interacted with these organized systems.
Figure 4.11: SADRA after ERP Implementation
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4.8 Propose the Conversion of Sadra work structure from project-centered to
discipline centered
Regardless of the uniformity of the shipyard, manpower and machinery
distribution at sadra is defined by projects. Here we are to propose the conversion of
the work structure from definition by project to definition by discipline.
For this, instead of allocating seven disciplines to each project, the seven
disciplines will be defined for sadra, and in turn each discipline will involve in each
of the projects at once. To clarify these criteria the following diagram will be
presented (See Figure 4.12).
Figure 4.12: Modified work structure of Sadra Company
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4.8.1 Reasons of work structure modification from project oriented situation
to discipline oriented situation:
1- The most important reason of this modification is to integrate the
information and data relevant to each discipline in the whole yard, which means that
no more un-integrated information exists relevant to each discipline. In the current
situation that the general structure is based on project oriented system, each
discipline is divided into some separated sections that each section of the same
discipline is working on a specific project and there is no integrated or organized
information and data relevant to each discipline for the whole system.
For example, for the architecture discipline, currently it is possible that the
information related to isolation, panel, door, window, and curtain meter of each
project exists that are being reported to the top supervisor by means of three
different sections of architecture discipline and by three different manager of
architecture. Obviously, at first, the accuracy and proficiency of each person is
different, secondly, estimation of the total amount of materials of architecture for the
whole system and estimation of other required materials are very difficult and in
some cases it is impossible. However, in the new working system one manager is
being used instead of using three different managers with different characteristics
and also, only one specific database for each discipline exists instead of three groups
of information for each discipline for three in progress projects.
2- Increasing the accuracy of the work, the speed of work progress, and also
decreasing the required time for accomplishment of the project and prohibiting the
occurrence of duplicate problems.
Currently that all seven disciplines are working independently on projects
and the managers of a specific discipline are working on three similar projects, they
are different in personal and professional characteristics and may present their own
personal method and procedure for completing the project and for sure all methods
are not good ones and certainly their performance and work management are
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different. In addition, their accuracy and their work progress speed is different from
each other. Therefore, in the new system, it is possible to completely give the
responsibility of the tasks of that discipline to that manager of the discipline that has
been selected based on his or her better performance, method, and accuracy and
more compatible or close to the standard rather than other managers. This will result
in higher and more similar work accuracy and work progress speed in the whole
system and also, the best selected manager can use its experiment and knowledge of
the problems of one project in a concurrent project and prohibit the repeating
problems.
3- Human resource reduction and its costs and raw material waste reduction:
As mentioned before, more human resource or personnel is required in the current
system rather than the new system, because for each project there is a need for a
manager, technician, foreman, and worker for each discipline. Though, in the new
system by trusting the management method of superior manager, definitely two
extra managers are reduced initially, and then the number of working personnel is
decreased. On the other hand, in the current system, if a problem or error occurs in
using the raw materials, it is possible that the same error happens in concurrent
projects and if still there is raw material after cutting or forming process, they
become useless for the mentioned project, whether it is possible to use them for
other concurrent projects or not. However, in the new system, the human error
relevant to the material usage can be certainly prohibited in other concurrent projects
and as the system is integrated, the manager of the discipline is also one person. So
that, with having enough information of all three in progress projects simultaneously
it is possible to understand that the waste material of one project can be used in
which part of concurrent projects and therefore reduce the waste of raw material to
the maximum possible extent.
4- Freedom and independency increase in the working condition
In the current system, for example consider the piping discipline, it is required to
prepare the pipes like cutting, bending, extending, welding, etc. in the workshop
area to perform the piping operation for the projects. So, three different piping
working groups that are working completely independently for three in progress
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projects can be seen in the workshop. Indeed, each group requires specific tools to
perform their works which certainly must be provided for them during the working
hours. Therefore, the workshop will be very crowded and a lot of similar working
tools are required but in higher quantity.
However, in the new system, the person in charge of each discipline, for
example piping discipline, selects the best group of workers for materials
preparation and puts them permanently in the workshop that this group can provide
the requirements of projects based on the priority of the projects which has been
specified by the manager of discipline. Therefore, the working place is specifically
for this professional group.
5- Easier report preparation and report presentation and better control of
work accomplishment steps.
Current reporting and controlling system of work progress is accompanied
with lots of problems. This is because; initially there is no similar database for each
discipline which can devote a percentage to each work step by referring to them.
Secondly, the database of each discipline in each project is different from
each other in work value and man hour. And finally, there is no specific index for
general report of the discipline in the yard. For example, in HVAC discipline, the
manager of HVAC may consider 4 man hours for installation of one meter rocket in
each project while the manager of HVAC in another project considers 8 man hours
for the installation of one meter rocket in another project in a very similar place to
the place of previous project (for example both have been done in accommodation
location). Therefore, there will be no unique definition because proficiency of the
managers and also the working personnel under their control are different from each
other.
However, in the new system, when the man hour report for different
activities are requested from the manager of the discipline, and by assuming that this
manager is the best selected manager that his or her management and proficiency
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method is compatible with relevant standards, it is possible to put his or her offered
report as a unique information in the database and do the reporting activities based
on this database. Also, work accomplishment control can be done easily and
consider a work progress percentage for each step of work accomplishment and this
work progress percentage for each project and finally progress percentage for the
whole system can be also predicted and calculated daily, weekly, and monthly for
each discipline.
4.9
Design a New System of SADRA:
In this section, design a new system of SADRA is proposed that it will help
the managers and staffs to access the information easily and clear the every staff’s
jobs to do by high accuracy. This new system integrates data and gets the progress
report of each discipline of each project and gets the total Daily, Weekly and
monthly Progress of each discipline and each project and whole yard also.
The new work flow, this study suggests the virtual organization for Sadra
because each project needs differences skill so the old structure not suitable and
have many problems in human resource management. For new work flow design
will set up team by skill and can using resource cross team to work together in new
project as Figure 27 – Modified work structure of Sadra Company.
The new system design, include 4 steps which are:
1. Explain Data Flow Diagram of the new system (DFD).
2. Explain Work Flow of the new system.
3. Design Database and explain Entity relationship Diagram (ERD).
4. Design and Explain interfaces for new system.
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4.9.1 Descriptions of Data Flow Diagram of the new system (DFD):
This diagram shows the automated flow of data. Main data are conveyed by
the CEO to the planning Department, where they will be processed and tallied
before being delivered to the engineering and operations departments. The
engineering department prepares information on work orders and MIVs and after
having them approved by the planning department sends them to the Operations
again. The operations department transfers the data pertinent to raw materials to the
warehouse through the MIV, and after the completion of works, conveys pertinent
data to the QC Department, for inspection.
It is important to note that in the new system, data will be classified such that
only those useful to each department, stage or discipline will be accessible to the
pertinent team.
As a result a homogenous information system will be provided for
production lines at Sadra, founded completely on the understanding and justification
of ERP, assisted by Work Flow System. (See Figure 4.13)
92
Figure 4.13: Data Flow Diagram (DFD) of New System
93
4.9.2 Work Flow of New System:
Here as illustrated in the diagram below, the new work flow has been
displayed with a defined hierarchy and priority in procedures. (See Figure 4.14)
Figure 4.14: Work Flow Diagram of New System
94
4.9.3 Database and Entity Relationship Diagram (ERD):
In this section design a database for new system by using Access software
and drawing the Entity relationship Diagram (ERD) of the new system is proposed
(See Figure 4.15). Besides the design of database has been showed in Appendix F.
Figure 4.15: Entity Relationship Diagram
4.10 Calculate the Progress Report:
As previously explained each project contains a number of phases, each of
which involves all of the seven disciplines explained throughout this work. Through
this stage it will be possible to evaluate the monthly output of each discipline
through each phase of every project, by means of a concise monthly report (See
Figure 4.16).
.
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Figure 4.16: Monthly Progress Report
CHAPTER 5
SYSTEM DESIGN, IMPLEMENTATION AND TESTING
5.1
Introduction
This chapter explains the whole system development processes based on the
previous system planning and analysis. It includes the installation of the required
software, database development, user interface development and program
development. Database development is started once the installation of the required
software has been done. The database is developed according to the identified input
data where the tables are designed based on the input forms in the system. User
interface development is carried out steps by steps based on the modules that have
been designed. Program development is carried out together with user interface
development.
Implementation involves transforming the analysis and design of the system
into executable forms. For system implementation, Visual Basic .Net has been used
in developing the program. The database used in this system is Microsoft Access.
In this section, the source code of system for each main module will be discussed.
97
5.2
User Interface Design
Interface design is vital in an information system design process. User
interface is the intermediary between the system and the user. The purpose of a user
interface is to display and obtain needed information in an accessible manner.
Basically, user interface consists of text, graphic and control objects such as drop
box, button, radio button, text boxes, check boxes and hyperlink. These control
objects controls the interaction between user and the system itself. The following
figure 4.3 shows the overall hierarchy of the system user interface of the developed
system of the Discipline Based Manufacturing Information System for Ship
Construction Company.
5.3
Example of System Input and Output
Figure 5.1 shows the main interface of the developed prototype of the discipline
based manufacturing information system. Different buttons will bring staffs to
different components of the system.
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Figure 5.1: Main Interface
Figure 5.2: Business Unit Master
Figure 5.2 shows the interface for Business Unit Master. In this interface,
staffs are able to define details related to business unit master such as business unit
number, business unit name, status, effective date and expire date. The interface also
allows users to add new business unit master, save business unit master or delete
existing business unit master.
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Figure 5.3: City Selection
Figure 5.3 shows the interface for City selection to search for staffs based on
city and city code. The interface also allows users to add new city, save city or
delete existing city.
Figure 5.4: Department
Figure 5.4 shows the interface for department selection. Staffs are able to
view details of different departments, add new department, save department or
delete existing department. Staffs are required to define department code,
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department name, manager code, manager name, effective date, expire date and
status.
Figure 5.5: Employee
Figure 5.5 shows the interface for Employee selection. In this interface,
staffs are able to add new employee, save newly added employee or delete existing
employee. Staffs are required to enter employee details such as employee code, first
name, last name, date of birth, address, street, city code, city name, postal code,
department code, department name, position code, position name, home phone,
office phone, email address and marital status.
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Figure 5.6: Goods
Figure 5.6 shows the interface for Goods. Staffs are able to add new goods,
save newly added goods or delete existing goods. Staffs are required to define the
goods code, description, supplier code, supplier name, unit code, unit name and the
remaining stock of the goods.
Figure 5.7: Parts
Figure 5.7 shows the interface for parts where staffs are able to add, save or even
delete parts. Details such as part code and part name are required to be entered to
add new part.
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Figure 5.8: Position
Figure 5.8 shows the interface for position list. List of different position can be
found in this interface. To add new position, staffs are required to define and enter
position code and position name. This interface also allows staffs to add, save or
even delete position.
Figure 5.9: Project Master
Figure 5.9 shows the interface for Project Master. In this interface, chief manager is
able to define new projects, save newly added projects or even delete existing
projects. To define new project, chief manager is required to enter project code,
project name and project description. BSU code and BSU name are also required
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which can be selected from the Business Unit list. Tentative start and end date for
the project is defined, besides the actual start and end date of the project. CEO will
also add the status of the project. Chief Manager also has the ability to assign Project
Manager, Planning Manager, Engineering Manager and Operation Manager. In this
interface, attachments such as word files can also be included.
Figure 5.10: Project Planning Detail
Figure 5.10 shows the interface for project planning detail. This interface shows the
list of existing projects which have been added from the project master interface by
chief manager. In this interface, staffs are able to add new project, save newly added
project and even delete existing project.
104
Figure 5.11: Project Planning
Figure 5.11 shows the interface for project planning. Manager of planning
department will define various plans for selected projects including the delivery
date, the project weight and the phase of the project.
Figure 5.12: Staff Chart
Figure 5.12 shows the interface for staff chart. In this interface, users will be able to
view the list
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Figure 5.13: Supplier
Figure 5.13 shows the interface for supplier list. In this interface, users are able to
add new supplier details such as supplier code and supplier name besides having the
ability to save newly added supplier details or even delete existing supplier.
Figure 5.14: Unit
Figure 5.14 shows the interface for unit list. In this interface, users are able to add
new unit including unit code and unit name, saving newly added unit or delete
existing unit.
106
Figure 5.15: Work Order Master
Figure 5.15 shows the interface for work order master. In this interface, staffs are
able to view the list of existing work such as the project code, phase, part code, work
order number, work order description and the work order status. Staffs can also add
and save the newly added work master or even delete the existing work master.
107
Figure 5.16: Job Order
Figure 5.16 shows the interface for Job Order. This interface is accessible by
clicking on the job order button in the work order master form. Staffs are able to add
new job order, save and even delete existing job order. Staffs are also able to view
the progress of the selected project or work.
Figure 5.17: Work Order Master CardCad
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The interface as shown in figure 5.17 shows the interface for work order master
CardCad. This interface allows users to upload autocad file path.
Figure 5.18: Work Order Details
Figure 5.18 shows the work order details interface where staffs will be able to view
the details of the on-going work order. Staffs are also able to add new work order,
save added work order or delete existing work order.
5.4
Database Development
Database is developed based on the outline design beforehand.
Format of the collected input forms is applied in designing the system’s database.
Each table in the database was assigned a primary key. The primary key must be
unique to serve as a connector to link one table to another. Each data was assigned a
data type and size. The system database is developed using Microsoft Access.
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5.5
Program Development
The program is developed using Microsoft Visual Basic.Net. SQL
commands are used to retrieve and manipulate data from the Microsoft Access
database.
5.6
System Testing and Evaluation
System testing and evaluation plays an important role in ensuring the
proposed system complies all of the scopes and objectives defined by the users. It is
performed also to ensure that the system does not have malfunction in obvious way.
Through system testing and evaluation, the system developer can repair errors and
improve the system as a response from the targeted users. Some of these testing such
as input and output testing are carried out from time to time so that errors can be
corrected earlier.
Testing is one of the most important phases in system development; this is to
ensure that the system is free from syntax and logical errors. Testing is a set of
activities that can be planned in advance and conducted systematically. The system’s
performance must be monitored to ensure the system really helps the intended users
in performing their task, like getting the right result every time and also helps the
system developer to determine how much the system functionality according to its
specifications which was determine in the requirement analysis. Testing involves
error identification by comparing the actually output of the system with the expected
output. System testing also accounts an actual system performance with the
proposed system in the requirement specification.
110
Testing is also one of the elements of a broader topic which is often referred as
verification and validation (V&V). Verification refers to the set of activities that
ensure that system correctly implements a specific function. Validation refers to a
different set of activities that ensure that the system that has been built is traceable to
customer requirements (Pressman, 2001). According to William Howden, testing is
an unavoidable part of any responsible effort to develop a software system.
Three different testing levels that have been executed for this project which are
integration testing and user acceptance test.
5.6.1 Integration Testing
Integration testing is a systematic technique for constructing the program
structure while at the same time conducting tests to uncover errors associated with
interfacing. The main objective of integration testing is to take unit tested
components and build a program structure that has been dictated by design. Testing
involves all function in order to detect any presents of error that might be
overlooked in unit testing. Integration testing is also to ensure smooth flow of data
transfer from one module to the other.
Incremental integration is the antithesis of the non-incremental approach.
The system is constructed and tested in small increments, where errors are easier to
isolate and correct; interfaces are more likely to be tested completely; and a
systematic test approach may be applied. There are a number of different
incremental integration strategies, such as (Pressman, 2001):
1. Top-down Integration: An incremental approach to construction of
program structure. Modules are integrated by moving downward through
the control hierarchy starting with the main control module. Modules
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subordinate to the main control module are incorporated into the structure
in either a depth-first or breadth-first manner. The top down integration
strategies verifies major control or decision points early in the test process.
2. Bottom-up Integration: Begins construction and testing with components
at the lowest levels in the program structure. Processing required for
components subordinate to a given level is always available because
components are integrated from the bottom up.
3. Regression Testing: Regression testing is the re-execution of some subset
of tests that have already been conducted to ensure that changes have not
propagated unintended side effects.
4. Smoke Testing: An integration testing approach that is commonly used
when “shrink-wrapped” system are developed which means it does not
applicable to the current system. It is designed as a pacing mechanism for
time-critical projects.
5.6.2 User Satisfaction Test
For user satisfaction testing, 20 persons have been involved in trying
and testing the developed system. The 20 person that involved are requested to
assume Ship Construction Company CEOs roles and manufacturing department
staffs roles. User satisfaction questionnaire is prepared and distributed for the
respondents to evaluate the system. The questionnaire used in the user satisfaction
testing is included in appendix. The rating scale used in the questionnaire is shown
in table 5.1.
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Table 5.1: Rating Scale for User Satisfaction Questionnaire
Rating
Strongly
Agree
Neutral
Disagree
Agree
Score
5
Strongly
Disagree
4
3
2
1
The questions in the questionnaire are divided into user interest and
acceptance, usefulness, usability, functionality and overall satisfaction. Table 5.2
shows the evaluation result for user satisfaction testing. The result is plotted on bar
graph in Figure 5.4.
Table 5.2: User Satisfaction Questionnaire Result
No.
Question
Rating Scale
5
1.
2.
User Interest and Acceptance
4.
3
2
1
4.95
a. Attactiveness
20
5
b. Good Idea
18 2
4.9
5
Usefulness
a. Effectiveness
3.
4
Mean
20
Functionality
5
4.925
a. Creating New Project
18 2
4.9
b. Employee Profile functions
17 3
4.85
c. Goods Profile functions
17 3
4.85
d. Supplier Profile functions
19 1
4.95
e. Unit Profile functions
20
5
f. Department Profile functions
20
5
Overall Satisfaction
a. Expectations
4.9
18 2
4.9
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5.02
5
4.98
4.96
4.94
4.92
4.9
4.88
4.86
4.84
User Interest &
Acceptance
Usefulness
Functionality
Overall
Satisfaction
Figure 5.4: Average Mean of User Satisfaction Score
5.7
Conclusions
The testing task was performed throughout the development of the system,
from the earliest unit testing to detect syntax errors when the program is coded to the
final phase of testing to the intended users and to save time from correcting errors in
the later stage of project development. Some improvement has been made to ensure
the objectives are successfully achieved.
CHAPTER 6
CONCLUSION
In this project, the integrating systems had been initially discussed and stated
which are made up of two integrating systems. Then, the integration system of
enterprise resources was discussed which describes the basic requirements for the
integrated system and subsequently the data integration, application integration,
information technology role in an organization and also information technology and
its role in organizations were explained.
Next, organization’s recognition, pressure, organization’s effective
environmental factors, and organization’s supportive ring recognition in front of
environmental pressures was also considered.
In addition, two well-known systems of ERP and WFMS were generally
discussed and described that definitions of the WFMS and ERP systems were tried
to be defined clearly and unclear parts of these two systems which leads that these
two systems mistaken for each other by managers and clients were tried to be
specified completely.
After that, the scopes of this project were specified and described which
mainly the case study of this project is based on SADRA Ship Construction
Company that located in north of Iran so that by concentrating on the new working
115
system and with the aid of ERP method based on WFMS, it was tried to present a
new working structure for this company. Also, by concentrating on seven disciplines
of structure, piping, outfitting and machinery, electrical, HVAC, painting, and
architectural in the Ship Construction Company and recognition of their activities
and existing relationships and intermediaries exists between them, it was tried to
improve the existing relationships with the aim and use of ERP. Finally, with a
general comparison and by referring to some rules and principals of ERP, WMFS, it
is possible to easily observe the effective influence of new structure on productivity,
cost reduction, projects’ time duration in comparison with previous structure.
Afterwards, IS and IT systems were introduced so that their usage and
performance in different levels of management were specified. Predictions of the
requirements for optimization of the integrated systems were also discussed. Then,
the basic definition of Workflow Management System (WFMS) was explained that
recognition of processes including different working phases is the prerequisite for it.
All tasks and activities must be known and the performing personnel of them
must be specified to recognize the processes in WFMS system. Subsequently, the
existing expressions in WFMS were briefly introduced and defined. After that,
Enterprise Resource Planning (ERP) system were completely and precisely
discussed that include the concept of ERP, objectives of ERP, ERP related
definitions, and important roles of ERP in a system that how ERP can help
improving different sections of a system from the performance aspect of view.
Moreover, the time for ERP implementation in a company, ERP implementation
steps, and benefits and defects of ERP were mentioned. Principal roles in ERP
implementation and types of ERP in a general view of system before and after ERP
implementation were also reviewed.
Later, the case study was introduced which was a Ship Construction
Company in north of Iran. History of SADRA Ship Construction Company,
responsibilities, complete introduction of this company, and under construction
projects of it are the topics that has been covered in this thesis.
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The research methodology of this thesis along with a complete diagram is a
part that has been completely discussed in this report.
In continue, SADRA Ship Construction Company was focused that all
activities of the structure, piping, electrical, outfitting and machinery, HVAC,
painting, and architectural disciplines were explained generally. Relationships and
intermediaries between them and the method of connection between them were also
mentioned that currently all the relationships between different disciplines are
manually and paper-based and intermediaries are almost human resource and
planning unit is considered as the main intermediary for relationships between
different mentioned disciplines has important role.
Current work process structure of SADRA ship Construction Company is
also described completely that professional human forces and required equipment in
SADRA are distributed in a project-oriented manner and each specific project in
SADRA allocates a large number of personnel and equipments to itself.
In the current work procedure of SADRA, planning unit is also not
distributed in an integrated way between different projects of the company and
currently reporting and project controlling systems are being done traditionally and
very normally.
Then, recognition of the relationships and intermediaries between different
disciplines, automating the between organization processes and convert the work
structure of SADRA from project oriented to discipline oriented were discussed to
analyze them.
SADRA working procedure structure modification and presenting the
suggestion for new work structure are the points that are mentioned in this thesis.
Currently, SADRA Ship Construction Company is working in a project-oriented
way, meaning that for each under execution project, a number of professional
personnel and equipments have been assigned to that project. In addition, each of
117
mentioned disciplines is working on each project that this process is being under
progress completely separately and detached from each other.
Current work procedure of SADRA has many problems along with it that the
most important one of them is lack of access to a complete information database
related to each discipline. The new suggestion for work procedure structure
modification of SADRA is stated as that to take out this company from projectoriented situation and put it in discipline oriented situation. The most important
benefit of this work is integration of information plus easy and fast access to the
information database of each discipline. However, other benefits of this new
suggestion about the working structure is completely described that are reducing the
human forces, decreasing the costs, extending the working space, better, easier and
more accurate reporting process, and avoiding the occurrence of repeated problems
in concurrent projects.
Currently, the complete structure of the company is shown in a diagram and
also the diagram of the suggested structure is demonstrated in this thesis.
By observing the new structure diagram, it can be concluded that forces and
equipments which were distributed in the form of colonies are modified to a
homogeneous unit.
Considering all above mentioned design a new system based on new
business structure proposed is in this thesis. Design the new system divided into 4
parts which are:
1. Drawing DFD and analyze the current stage of SADRA
2. Drawing DFD of new system and explain ERD.
3. Designing a database of new system
4. Designing the interfaces of new system.
5. Developing new system using Visual Basic .Net and Microsoft
Access
118
Considering all above mentioned points, all the achieved results in this thesis
are listed briefly below:
•
To analyze, evaluate, and understand the Ship Construction
Company.
•
Recognizing the relationships and intermediaries which the
concentration of this thesis was based on the relationships and
intermediaries between structure, piping, electrical, outfitting and
machinery, HVAC, painting, and architecture disciplines.
•
Automating the processes between seven mentioned disciplines.
•
Modifying the work structure of the Ship Construction Company
from project-oriented state to discipline-oriented state.
•
Design a new system of manufacturing section of ship Construction
Company which are design database and design interfaces.
Future Work:
i.
Next steps that can be done in the future for Ship Construction Company are:
ii.
Recognizing all departments and systems of the company including
financial, human resource, recruitment and recruitment, stock, support and
supply, logistic, etc. departments, analyzing them, and understanding the
relationships and intermediaries between them.
iii.
Creating intelligence intermediaries and creating completely computerized
system.
iv.
Implementing different modules of ERP in manufacturing and fabrication,
logistic, human resource, stock, financial, transportation, and recruitment
departments.
119
References
1. Stohr E. A. , Nickerson J. V., “Intra Enterprise Integration: Methods and
Direction“.
2. The White Paper Series, “Enterprise Information Integration“.
3. A. Kazerouni, M. Kazerouni, M. Shakouri Moghadam, "ERP Solution based on
Information Technology".
4. Karbaschi H., Kholousi S., "Investigation of Workflow Management Systems and
IDEF role Definition in Its Definition Phase", Master Thesis, Iran University of
Science and Technology.
5. W. Li, Y. Fan, "Development of ERP systems based on Workflow management
system", Proceedings of The Third International Conference on Electronic
Commerce (ICeCE2003), Hangzhou, Oct. 2003, pp. 981-984.
6. Shamshiri M., "Workflow Management Systems”, Master Thesis and Presentation,
South Unit of Islamic Azad University.
7. http://www.3COM.com, Technical paper, “Enterprise Resource Planning
Processes, Next-Generation Enterprise Networks Enable Next-Generation Business
Processes”.
8. The White Paper Series, “Aligning Your Data Collection and ERP
Implementation Decisions“.
9. Executive Guide to Enterprise Resource Planning – www.netessence.com.my
10. Jorge Cardoso1, Robert P. Bostrom and Amit Sheth11LSDIS Lab, Computer
Science Department University of Georgia
11. Athens, GA, USA, 30602 jcardoso@uga.edu, amit@cs.uga.edu 2MIS
Department Terry College of Business University of Georgia,
120
12. Cardoso J, Bostrom R.P, A. Sheth, “Workflow Management Systems vs. ERP
Systems: Differences, Commonalities, and Applications“.
13. ERP Presentation – www.IRERP.com
14. www.ic.gc.ca
15. www.neka.sadra.ir
16. Wortman H, Szirbik, ”ERP &WFMS Do they work together…?”
17. Muth P, et al. “Workflow history management in virtual enterprises using a
light-weight workflow management system”. in Proceedings of the 9th International
Workshop on Research Issues in Data Engineering. 1999. Sydney, Australia:
Available at http://wwwdbs.cs.uni-sb.de/~mlite/. p. 148-155
18. Kumar K, Hillegersberg J.V, ERP Experiences and Evolution. Communications
of the ACM, 2000. 43(4): p. 23-26.
19. Rusinkiewicz, M. and Sheth A.P, “Specification and Execution of Transactional
Workflows, in Modern Database Systems: The Object Model, Interoperability, and
Beyond.”
1995,
ed.
W.
Kim,
Addison-Wesley.
p.
592-620.
121
DEVELOPMENT OF DISCIPLINES BASED
MANUFACTURING INFORMATION SYSTEM
FOR SHIP CONSTRUCTION COMPANY
SEYED YASER BOZORGI RAD
UNIVERSITI TEKNOLOGI MALAYSIA
PSZ 19: 16 (Pind. 1/07)
(Pind. 1/07)
UNIVERSITI TEKNOLOGI MALAYSIA
DECLARATION OF THESIS/UNDERGRADUATE PROJECT PAPER AND COPYRIGHT
Author’s full name
: SEYED YASER BOZORGI RAD__
________
Date of birth
: 9th JULY 1980
Title
: Development of Disciplines Based Manufacturing
__________________ _____ _
Information System for Ship Construction Company
Academic Session
: 2007/2008
_____________________
_
I declare that this thesis is classified as:
CONFIDENTIAL (Contains confidential information under the
Official Secret Act 1972)*
RESTRICTED
(Contains restricted information as specified by
the organization where research was done)*
√
OPEN ACCESS I agree that my thesis to be published as online
open access (full text)
I acknowledged that Universiti Teknologi Malaysia reserves the right as follows:
1. The thesis is the property of Universiti Teknologi Malaysia
2. The Library of University Teknologi Malaysia has the right to make copies
for the purpose of research only.
3. The Library has the right to make copies of the thesis for academic
exchange.
Certified by:
__________________________
SIGNATURE
______ 7427709-B
_____________________________
SIGNATURE OF SUPERVISOR
______
Dr. Muhammad Ikhwan Jambak
(PASSPORT NO.)
NAME OF SUPERVISOR
Date: 10th July 2008
Date: 10th July 2008
NOTES: * If the thesis is CONFIDENTIAL or RESTRICTED, please attach with the letter
from the organization with period and reasons for confidentiality or restriction
“I hereby declare that I have read this project report and in my opinion this project
report is sufficient in terms of scope and quality for the award of the degree of
Master of Science (Information Technology - Manufacturing)”
Signature
: …………………………………………
Name of Supervisor
: DR. MUHAMMAD IKHWAN JAMBAK
Date
: 9th JULY 2008
DEVELOPMENT OF DISCIPLINES BASED MANUFACTURING
INFORMATION SYSTEM FOR SHIP CONSTRUCTION COMPANY
SEYED YASER BOZORGI RAD
A project report submitted in partial fulfillment of the
requirements for the award of the degree of
Master of Information Technology (Manufacturing)
Faculty of Computer Science and Information System
Universiti Teknologi Malaysia
JULY 2008
ii
I declare that this project report entitled “Development of Disciplines Based
Manufacturing Information System for Ship Construction Company” is the result of
my own research except as cited in the references. The project report has not been
accepted for any degree and is not concurrently submitted in candidature of any other
degree.
Signature
: ....................................................
Name
: SEYED YASER BOZORGI RAD
Date
: 9th JULY 2008
iii
Dedicated to my beloved Father, Mother, friends and my country, IRAN.
iv
ACKNOWLEDGEMENT
First and foremost, I would like to express my gratitude to God for His
abundant grace that I am able to be what I am today. I also wish to express my
sincere appreciation to Professor Dr. Mohammad Ishak Desa, Dr. Habibollah Haron
and Dr. Muhammad Ikhwan Jambak, for their precious guidance, encouragement,
critics, advices, knowledge and motivation. Without their support and interest, this
thesis would not have been the same as presented here.
I would love to express my thank you to all my fellow postgraduate students
who have been going through the thick and thins during the development of this
thesis. My sincere appreciation also goes to all my colleagues and friends who have
provided assistance at various occasions. Last but not least, a very special
appreciation goes to my beloved family.
v
ABSTRACT
New models and facilities are needed for the growing economy and the very
hard competition that it brings with it. Among the many models of information
systems two have been very strong: Workflow Management Systems (WFMS) and
Enterprise Resource Planning (ERP) systems.
While both systems are very strong for integration and other management
applications, a complete understanding of these methods is still lacking. This
research first aims at the importance of organization integration and the structure of
these two models is compared. Subsequently a comprehensive analogy of WFMS
and ERP systems and the major difficulties in integration of the models in
application is taken into account.
In the end a case study is performed on a major Iranian ship company called
SADRA. The current workflow in this company is first evaluated and put under
major scrutiny. In the end a new framework for the work flow of this company is
developed based on the basic concepts of ERP and WFMS. This Frame work reduces
a major amount of redundancy in the data patterns. The final result of this study is a
Discipline-Based Manufacturing Information System for a Ship Construction
Company.
vi
ABSTRAK
Model dan kemudahan baru adalah diperlukan di dalam pembangunan
ekonomi yang pesat sejajar dengan persaingan hangat yang searah dengannya.
Antara kebanyakkan model di dalam sistem maklumat yang kukuh dan stabil adalah
Sistem Pengurusan Aliran Kerja (WFMS) dan Sistem Pengurusan Sumber Organisasi
(ERP).
Meskipun
kedua-dua
system
adalah
kukuh
dan
stabil
dari
segi
pengintegrasian dan aplikasi-aplikasi pengurusan yang lain, kefahaman yang
mendalam dan menyeluruh berkaitan dengan kaedah-kaedah tersebut masih lagi di
peringkat yang lemah. Sasaran utama kajian ini adalah mengkaji kepentingan
integrasi organisasi dan menkaji perbandingan struktur kedua-dua model. Sejurus itu,
analisa yang komprehensif dan kekangan yang dihadapi di dalam mengintegrasikan
kedua-dua model di dalam sesuatu aplikasi juga diambil kira.
Akhir sekali, kajian kes dijalankan ke atas sebuah syarikat perkapalan Iran,
SADRA. Aliran kerja semasa organisasi tersebut terlebih dahulu dikaji dan dianalisa
dengan teliti. Hasil akhir kajian ini adalah rangka kerja baru untuk aliran kerja
organisasi tersebut yang dihasilkan berdasarkan kepada konsep ERP dan WFMS.
Rangka kerja ini mengurangkan jumlah pengulangan yang besar di dalam data.
Sistem Pengurusan Maklumat Pengeluaran untuk Syarikat Pembinaan Kapal.
TABLE OF CONTENTS
CHAPTER
1
2
TITLE
PAGE
TITLE
i
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENTS
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xi
LIST OF FIGURES
xii
Introduction
1
1.1- Introduction
1
1.2- Problem Statement
3
1.3- Project Objectives
3
1.4- Project Scope
3
1.5- Research Assumptions
4
Literature Review
6
2.1- Introduction
6
2.2- The reason of enterprise integration
7
2.3- Integration Requirements
8
viii
Infrastructure
2.4- Role of information technology in the
10
organization
2.5- Technology
10
2.6- Information technology
11
2.7- Information systems (IS)
14
2.8- Integration against Intermediary
16
2.9- The necessity of ERP utilization in
17
advanced organizational application
achievement
2.10- Required precautions for utilization of
18
integrated systems
2.11- Workflow Management Systems
19
(WFMS)
2.11.1- WFMS Objectives
21
2.11.2- Abbreviated Expressions in
22
WFMS systems
2.12-Enterprise Resource Planning (ERP)
28
2.12.1- ERP Concept
29
2.12.2- ERP systems objective
29
2.12.3- ERP Definitions
30
2.12.4- The procedure of Company’s
35
business performance
improvement by ERP
2.12.5- Required time for an ERP
36
project
2.12.6- Stages of ERP project
37
2.12.7- Fixed Part by ERP in Business
37
2.12.8- Principle Roles in ERP’s
38
project team
2.12.9- The Reasons for use ERP
39
systems
2.12.10- Advantages of using ERP
40
ix
2.12.11- Design of ERP
40
2.12.12- Interfaces
40
2.12.13- Data Exchange
41
2.12.14- Go live and support
42
2.12.15- Obstacles to success
42
2.12.6- Fixed Part by ERP in Business
42
2.13- Case Study
46
2.13.1- Ship Construction Industry
46
2.13.2- SADRA
46
2.13.2.1-History of SADRA
2.13.3- Problems statement of
46
48
SADRA
3
2.13.4 –Principals
48
2.13.5- Organization chart of SADRA
50
System Development Methodology
51
3.1- Introduction
51
3.2- Project Methodology
52
3.2.1- Planning Phase
53
3.2.2- Analysis Phase
54
3.2.3- Design, Develop & Testing
55
Phase
3.3- Evolutionary Prototyping
56
3.3.1- Planning Phase
57
3.3.2- Analysis Phase
58
3.3.3- Design, Develop & Testing
58
3.3.4- Methodology Justification
60
3.4- Chapter Summary
4
System Analysis
62
63
4.1- Introduction
63
4.2- Current Stage of SADRA
64
4.2.1- Task Description
64
x
4.2.2- Structure
65
4.2.3- Piping
66
4.2.4- Electrical
66
4.2.5- Outfitting & Machinery
66
4.2.6- HVAC
67
4.2.7- Painting
67
4.2.8- Architecture
67
4.2.9-Resource Distribution of
68
SADRA
4.3- Identification of the relationships
69
between different disciplines and
intermediary identification
4.4- Elaboration of the current (real-time)
71
planning unit, Sadra Co.
4.5- General structure of Work Process at
72
SADRA
4.6- Proposed New Framework
75
4.7- System Analysis
76
4.7.1- Identification and Automation
76
of linkage process between 7
disciplines
4.7.2- Data Flow Diagram (DFD) of
76
Current System
4.7.2.1- SADRA DFD level 0
76
4.7.2.2.- SADRA DFD level 1
78
4.7.2.3- SADRA DFD level 2.3
79
4.7.2.4- SADRA DFD level2.4
80
4.7.3- SADRA current stage Work
82
Flow
4.7.4- SADRA Schematic before use
83
ERP
4.7.5- Automation
4.7.5.1- SADRA Schematic after use
83
85
xi
ERP
4.8- Propose the Conversion of Sadra work
86
structure from project-centered to
discipline centered
4.8.1- Reasons of work
87
Structure modification from
project oriented situation to
discipline
oriented situation
4.9- Design a New System of SADRA
4.9.1- Explain Data Flow
90
91
Diagram(DFD) of new System
4.9.2- Work Flow of New System
93
4.9.3- Database and Entity
5
relationship Diagram (ERD)
94
4.10- Calculate the progress Report
94
System Design, Implementation and Testing
5.1- Introduction
96
5.2- User Interface Design
97
5.3- Example of System Input & Output
97
5.4- Database Development
108
5.5- Program Development
109
5.6- System Testing and Evaluation
109
5.6.1 Integration Testing
110
5.6.2 User Satisfaction Test
111
5.7- Conclusions
6
96
Conclusions
Future Work
References
113
114
118
119
xii
LIST OF TABLES
TABLE NO.
TITLE
PAGE
2.1
A Structure for Work Integration
9
2.2
Top Companies in ERP
43
3.1
Activities in Evolutionary Prototyping
56
3.2
Workflows of Phases in Evolutionary Prototyping
59
5.1
Rating Scale for User Satisfaction Questionnaire
112
5.2
User Satisfaction Questionnaire Result
112
xiii
LIST OF FIGURES
FIGURE NO.
TITLE
2.1
Information Technology Support for Organizations
Against Pressure
2.2
12
Protective Ring of Information Technology to Protect
the Organization from the Environment Pressures
2.3
PAGE
13
Information Systems Coverage Based on Activity Type
in Different Levels of an Organization
15
2.4
A View from Organization’s Application Development
18
2.5
Workflow System Specifications
21
2.6
Resources that form Enterprise
30
2.7
Single System Resulting from Implementation of ERP
32
2.8
Materials, Information, and Cash Flow regarding to
Organizations, Suppliers, Distributors and Customers
34
2.9
Transition Approaches
41
2.10
Types of ERP
43
2.11
Organization Chart of SADRA
50
3.1
Project Methodology Framework
53
3.2
Project Development Workflow
55
3.3
Evolutionary Prototyping Method
57
4.1
SADRA by Business Unit
64
4.2
Resource Distribution of SADRA
68
4.3
Work Process at SADRA
74
4.4
Linkage Processes between the Seven Disciplines
77
xiv
4.5
SADRA DFD Level 0
78
4.6
SADRA DFD Level 1
79
4.7
SADRA DFD Level 2.3
80
4.8
SADRA DFD Level 2.4
81
4.9
Current Workflow of SADRA
82
4.10
SADRA before Implementation of ERP
83
4.11
SADRA after ERP Implementation
85
4.12
Modified Work Structure of SADRA Company
86
4.13
Data Flow Diagram (DFD) of New System
92
4.14
Work Flow Diagram of New System
93
4.15
Entity Relationship Diagram
94
4.16
Monthly Progress Report
95
5.1
Main Interface
98
5.2
Business Unit Master
98
5.3
City Selection
99
5.4
Department
99
5.5
Employee
100
5.6
Goods
101
5.7
Parts
101
5.8
Position
102
5.9
Project Master
102
5.10
Project Planning Detail
103
5.11
Project Planning
104
5.12
Staff Chart
104
5.13
Supplier
105
5.14
Unit
105
5.15
Work Order Master
106
5.16
Job Order
107
5.17
Work Order Master Cardcad
107
5.18
Work Order Details
108
5.19
Average Mean of User Satisfaction Score
113
CHAPTER 1
INTRODUCTION
1.1
Introduction
Current organizations can not be managed by previous knowledge and view.
This is the fact that today’s developing management knowledge has achieved and
believed both in academic and experimental or industrial areas.
In the information period which is several decades old, extensive major
changes have been happened in the fields of organizations’ management and
administration. In the current situation, the global economy is based on information
and communication and other parameters like: research and development, intense
competitions and international markets put force on the producers to make their
product or services in a more extensive, diverse range and with the lowest price and
highest possible quality for the desired time of the customer.
Therefore, the main concern of the responsible managers is concentrated on
optimized utilization by means of principal planning for available resources.
Desirable and optimized usage of resources is the wish of each manager or planning
expert for all periods of time. As these resources are in correlation with each other,
therefore changing the condition of each of them can affect others conditions and this
2
is the point that preparation of an integrated and coordinated basis looks necessary
for resource management. Enterprise resources have two physical and informative
aspects that from a manager scope of view the informative scope of it is being used
for planning.
In the current period and also current competitive market the role of computer
based tools and techniques are obvious in managers’ decision making process and in
fact it becomes more considerable. As a matter of fact, as the real problems in
industry are the problems that are related with regularity, coordination, integrity,
education, understanding and communication not numerical and optimization
problems, therefore such computer integrated systems have found a special position
in managerial decision making process and dismissing such systems is a large gap in
competitive environment of current global markets for enterprise managers.
Such related components with these computer systems are data and
information, which are called Information Technology in the recent decades, provide
competitive tools for managers. Indeed, in these competitive environments more
successful managers are the one who have access to the true and accurate
information in the necessary periods of time which requires integration and
coordination between the achieved and received information to the managers. For
this purpose, many systems have been found which have been tried to integrate the
enterprises’ information like Workflow Management System (WFMS) and
Enterprise Resource Planning (ERP). Two mentioned systems, in their self extent of
definition, can integrate enterprise information (existing work procedures and
practical planning in enterprises) and also can be used to provide the information for
each level of management and assist managers in decision making process.
It is worthy to mention that some phrases and sentences are repeated many
times in this research and this is due to the importance and the key rule of them.
3
1.2
Problem Statement
Existing Business Structure of Ship construction company (SADRA) has
some problems about integration data and some side costs and Delay in delivery of
some phases of projects. If this structure and system become improve, it will help to
managers of this company to increase the productivity of this company.
1.3
Project Objectives
•
To study ERP and WFMS solutions for a ship construction company.
•
To study the current work flow in the manufacturing department of a ship
construction company.
•
To propose a new business structure based on WFMS and ERP for ship
construction company focusing on manufacturing department.
•
To propose a new system based on the proposed business structure for the
manufacturing department of a ship construction company.
•
To develop a prototype of a Discipline-Based Manufacturing Information
System for Ship Construction Company.
1.4
Project Scope
The project will be conducted within the below boundaries:
•
The focus of this project will be on the current activities of the ship
construction companies which generally include seven different
4
disciplines i.e. structure, piping, electrical, HVAC, outfitting and
machinery, architectural, and painting. All these disciplines have two
sub-divisions; engineering and execution.
•
Productivity, cost reduction, and project accomplishment time
reduction will be the tools for validation of the new design by
comparison between the current and new systems.
•
The proposed system will be focusing on the manufacturing
department of the ship construction company.
1.5
Research Assumptions
a- Integration and coordination expressions in the managerial literature were
discussed since 1930 until the current time and their definitions were changed during
these years. Now a day, coordination, which is a more general expression, refers to
people-oriented and also system-oriented subdivisions. However, integration is
mostly used in discussions about the relations between software systems. As in this
research the discussion is about enterprise and software aspects of integration,
therefore these two expressions will be used interchangeably.
b- In this research, enterprise integration means enterprise information system
integration that integrates operational procedures in workflow management systems
(WFMS) and integrates enterprise application programs in enterprise resource
planning (ERP) to integrate the whole enterprise (see Table 1).
c- In this research, enterprise integration refers to the enterprise itself and
does not include the integration between enterprises. For more information, refer to
reference 1.
5
d- In this research enterprise information integration refers to enterprise
information integration based on information technology (IT) and in general, based
on computer systems and traditional scopes of view of integration in this research is
looked as first steps of integration procedure which is not considered as total
integration activities.
CHAPTER 2
LITERATURE REVIEW
2.1
Introduction
This chapter is focused on organizational information integration in two
levels; system level and organizational level. Integration in the system level requires
normal standards, data definitions, and some meaning of communication
compatibility between different applications. This is exactly what normally means
the recent founded expression of enterprise application integration (EAI). However,
as mentioned by Marcos and others, systems integration is not only for software
integration and this integration is enough to the extent that assures the enterprise
efficiency and effectiveness. Enterprises are made up of, personnel, departments,
sections and tasks which must be integrated toward the organization’s purpose to
perform successfully.
In management literature both integration and coordination expressions were
discussed since 1930 until now and their definitions have been changed during these
years. Now a day, coordination which is a more general expression, refers to peopleoriented and also system-oriented subdivisions. However, integration is mostly used
in discussions about the relations between software systems. In this research
7
wherever the discussion is about the organizational aspects of integration these two
expressions are being used interchangeably. It is necessary to mention that this
research is about the third level of integration which means it does not discuss about
integration and coordination between organizations (considered organization with
other organization) and will only mention briefly about it. However, every
discussion about enterprise integration must realize and include those groups of
external requirements. For example, customers’ needs and supply chain performance
are increasingly important indicator parameters of organization’s effectiveness.
In this chapter, initially the reason for the question of why integration must
be considered in the organizations will be mentioned and frequently it continues to
the infrastructure that includes system and organizational integration. Afterwards,
the role of information technology in an enterprise for the enterprise integration will
be considered. And in other part of this chapter, the information systems toward the
enterprise integration will be covered. Then it will be discussed about why
integration is being used against intermediary in the organizations and at the end of
the chapter, the discussion will go for more specialization and will discuss about
enterprise resource planning system, which is one of the diverse information
systems, toward the enterprise integration and it will mention the required cautions
in the utilization of such integration systems in the enterprise [1].
2.2
The Reason Of Enterprise Integration
In today’s very competitive atmosphere toward the optimization of supply
chain, quality concentrated and minimization of cost manufacturing, companies
encounter hard task of design and information systems development. Not only for
task but also these systems support the never ending progress aspect of information
technology. The life cycle of software systems are reduced due to the continuous
progress of their supportive hardware policies and principal elements. From the
8
organizational scope of view, task-oriented freedom will be considered by the work
unit which is a rule in the recent flow of business process reengineering (BPR) in the
current organizations. The benefit of these modifications will be achieved by
increased productivity which is very dependent to the effective communication. The
side effect of this task-oriented freedom, on current manufacturing easiness is
multiple on systems above the original system that can easily integrate for achieving
to the suggested work returns [2].
2.3
Integration Requirements Infrastructure
A beneficial definition which is highly being used for both system
integration and enterprise coordination systems is mentioned by Maloon and
Chroston who are defining the coordination like managing the inter –task
subordinates (dependencies). Table 1 shows the extents of organizational and
technical (systematic) coordination/integration requirements in the high level of
granularity. Left, middle, and right columns show the list of task dependencies and
resources, shared software human and coordination mechanisms, and fundamental
supportive elements respectively.
Resources, mechanisms, and fundamental elements are roughly arranged
according to their region of application horizontally. The border between technical
(systematic) and organizational integration mechanism are shown by bold dark lines
in the cells of the Table 1. Pay attention that some mechanisms play a role in
different levels in the Table 1 (like electronic mail, web services, etc.). It has been
realized that for effective integration/coordination, it is required to pay attention to
the elements of all levels in both horizontal and vertical direction. There is an
integrated architecture to support the coordination in utilization of organization’s
materials, financial, and human resource.
9
Table 2.1: A structure for work integration [1]
Need for
integration/source
Samples of integration
Infrastructure/
mechanism
Enabling
Environment
Electronic mail, shared
Organizational Integration
Organization Units
Top management
(Departments/Tasks)
strategy, financing,
Policies/Organization structure
software, side groups
performance indexes
Electronic mail, shared
software, Knowledge
Decision makers
management systems
Face to face meetings,
Organization Data Integration
job design, performance
indexes
Workflow, shared
systems, supply chain
Working Processes
external to
management, web
services
Process holders, groups,
performance indexes,
service level agreements
Between processes
relationships, far
procedures calls,
messaging, enterprise
resource planning, web
Networks
Applications
services
Data dictionary,
databases, developing
rising language
Beds
Data
Systems architecture
Systems Integration
organization)
relationship
Standards
(Both internal and
management, customer
10
Data integration:
Definition: data integration is allowing the organizations to join and give the
report about the data from different sources.
Application integration:
Definition: when a collection of applications integrates, they can be loaded
for other tasks.
Frequently in this research, the discussion will be concentrated on two topics
of data integration between applications and working operations. For more
information about each of integrations in the Table 1 refer to the respective
references [1].
2.4
Role Of Information Technology In The Organization
Before discussion about the role of information technology in the
organization, it is necessary to clarify the key point of it which is the definition of
information technology. Information technology has different and diverse
definitions from the aspects of experts. Indeed, it is necessary to clarify the
technology first and then information technology to achieve a complete and
developed definition [3].
2.5
Technology
A feature consists of knowledge, organization, tool(s), and special human
aptitude(s) with a special combination that will manufacture the desired product [3].
11
2.6
Information technology
It is a technological feature, with comprehensive meaning, that produces,
and/or processes, and/or keeps, and/or distributes the information (including text,
audio, and video), and has two aspects of hardware and software. The role of
information technology in an organization includes the following fields:
•
Development tool
From the aspect of a tool, it is a motivating force of the organization [3].
•
Development basis
1- Activator of potential resources
2- Productivity coefficient of the organization is directly related to
the information technology employment coefficient.
3- If it is possible, organization’s resource productivity growth
without paying attention to the information technology is reversible
[3].
One major benefit of information technology is elimination of time and
location limitations. For instance, travels schedules can be arranged by using the
internet. Also, the requirements of the trip can be identified, purchased and used. [4]
By studying the Figure 2.1, the supportive role of information technology for
the organizations can be specified. The pressures pushed to the organizations from
the environment and customers can only be responded by information technology
tools, that is the reason of double side directions of the arrows. Without using
information technology, organizations will become weak day by day and finally will
be eliminated due to received pressures. The supportive role of information
technology must be appeared in all aspects of the activities in an organization. Such
aspects include leading decisions, cooperation method with cooperative companies,
reengineering of the processes, customer relationship management (CRM), supply
12
chain management (SCM), electronic commerce, product quality, and
manufacturing policies or offered services (see Figure 2.2) [3].
Customers and environment
Pressures
Organizations
and their
responses
Information Technology
Figure 2.1: Information Technology Support For Organizations
Against Pressures. [3]
13
Environment Pressure
Environment
Processes
reengineering
Organization
Electronic Commerce
Customer
Relationship
Management
Supply Chain
Management
Leading
Decisions
Manufacturing
policies/ servicing
Figure 2.2: Protective Ring Of Information Technology To Protect The
Organization From The Environment Pressures. [3]
Information technology progress in an organization totally depends on the
thoughts of the top level managers of the organization and their understanding about
the importance of information technology and the application of information
systems in organizing the tasks [3].
In addition, the magnitude of the need to the information systems also
depends on the level and importance that organization’s manager put on the
14
information around them. The more dependency of the management in their major
and minor decision makings to previous and current information of the organization,
and the better understanding of major benefits from eliminating the time and
position gaps, the more importance to the information systems which are achieved
from the consequences of information technology. Currently, the application of
information systems and its consequences turned to a necessity for making digital
economy, and governments are encouraging the organizations for the higher and
more application of this modern technology [3].
2.7
Information systems (IS)
Today, the usage of information systems generally and web based systems
specifically has its own position in every organization either large or small and
basically without the usage of its benefits, the organization can not turn into a
competitive organization [3].
An information system from the technical point of view, is a collection of
tied up elements which produces or collects (recovers), processes, saves, distributes,
and deletes the information for specific or general announcement, supporting the
managers in decision making process, operation performance and control and just in
time process and analysis [3].
Information systems have different levels that each level covers a group of
organization personnel. Figure 2.3 shows these levels, type of activity, and engaged
kind of personnel. As it shows, the closer we get to the tip of the pyramid, the
smaller becomes the activity types, so that operational personnel and top managers
have higher and lower engagement with organization’s principal activities
respectively. Leading level systems help top managers in organizational long term
planning. In addition, Middle management level systems help middle managers to
15
control organizational activities. Moreover, knowledge level systems help
organizational knowledge development personnel to generate and develop the
knowledge and finally, operational level systems help the operation personnel to
process the information. Above classification is based on the support type that
information systems provide for the personnel of the organization. [4]
Leading Level
Top Managers
Middle Managers
Management
Level
Knowledge
Personnel
Knowledge Level
Operational
Personnel
Operation Level
Human
resource
Distribution
Accounting
Finance
Manufacturing,
Assembly
and
Services
Selling
and
Marketing
Figure 2.3: Information systems coverage based on activity type in different levels
of an organization. [3]
Six principal types of information systems, included in these four levels,
cover the organization. The first type is executive support system (EES) (top
managers) which is performed in the leading level of the organization. Second and
third types are management information system (MIS) and decision making support
system which are performed in the management (middle) level. The fourth and fifth
types of information systems include knowledge development systems and office
automation systems (OAS) which are performed in the knowledge level of the
organization. The sixth type of information systems is operation analysis systems
which are performed in the operation level of the organization [3].
16
There is another classification for the information systems that is based on
the field of application of the systems. The main systems based on this classification
include the followings:
2.8
•
Accounting information systems.
•
Financial information systems.
•
Production/operation information systems.
•
Marketing information systems.
•
Human resource management information systems [3].
Integration against Intermediary
Integration and intermediary are the concepts that are being used
interchangeably in many cases. In most of the times the mentioned information
integration in the computerized systems is nothing but intermediary and such
systems are introduced integration incorrectly. Integration means shared utilization
of two or more applications from the same information with same stored data
resource. However in intermediary, the similar information used by different
applications is created each time and interchanges or transforms by means of
specific and defined informative, communicative or informative-communicative
(combination) methods between different systems. In information integration,
different systems clients are always facing to one group of information, but in
intermediary the clients do not have a united information until the information is
being synchronized at the end of specific period (night time, every one day, weekly,
or any other time period). Therefore, confidence to the compatibility of the
information will be withdrawn and accuracy in decision making process and
information systems performance will decrease [3].
17
2.9
The necessity of ERP utilization in advanced organizational application
achievement
Beside ERP, there are some expressions in the executive operations of the
organization which are important and utilization of other advanced application is
impossible without having such system. These applications can include customer
relation management, supply chain management, electronic procurement, etc. Figure
2.5 shows an upward relationship of utilized elements in an organization. In this
pyramid the lower elements are the prerequisites for higher elements above
themselves. The first row from the down includes the infrastructure elements that
are supporting other applications of the organization and also as this layer (row) is
the base and foundation for other application layers, its strength and weakness have
higher importance. The first element of this layer includes hardware and is called to
the elements that are tangible like computers. Next element is networks which
include two local (LAN; Local Area Network) and wide (WAN; Wide-Area
Network) parts. The local network part joins the computers inside the organization.
The WAN part relates the local network to the other local networks all around the
world. The third element is Database Management Systems (DBMS) with the task
of monitoring the access method of application to the stored database. Electronic
mail which is the next element of this layer is a very important element for
communicating inside and outside of the organization. Also, electronic mail has a
principal role in establishment of office automation and elimination of paper work.
And finally, internet port, the last element of this layer that includes the combination
of hardware and software. The second row of this pyramid is the ERP systems that
their existence is a necessity for other advanced applications in the higher rows. This
layer includes diverse collections which can be different from an organization to the
other one. The third row includes the customer relationship management, supply
chain management, electronic support, web based applications, and some other
applications. Data warehouse is located in the fourth layer. This information
includes chosen data from the database of the organization which have special value
for the organization. Therefore, they are being located in a specific database for
higher access rate to this information and data. [3]
18
And finally in the last layer, the top level managers’ communication part is
located. In this layer, the information is collected in a way from the lower layers so
they can be understood by the managers and is being presented in a specific format.
Executive head
Supply
Chain
Management: SCM
Pure
Network
Electroni
c
Costumer
Relationship
Management: CRM
Data Storage
Financ
e
Distribution
CR SCM
M
Human
Resource
Oth
Services/
Manufacturing
Communicat
Database E-mail
Hardwar ive networks
Internet
Management
System
Figure 2.4: A View From Organization's Applications
Development. [3]
2.10
Required precautions for utilization of integrated systems
The integrated nature of ERP solutions has made an all or nothing
phenomena from it. If in an organization, it becomes wide spread and is being
implemented successfully then it is all. It is nothing if it is not being implemented
and employed correctly. Therefore, the whole organization must be interested to
receive it and all must accept it. In implementation of integrated systems, there are
sensitivities that should be followed and this requires some precautions:
Most of the people are escaping from being responsible. The personnel must
be responsible in utilization of information systems.
19
Resulted changes due to the utilization of information systems may disturb
the existing settle down condition and make some changes in some areas which will
dissatisfy a group of personnel [3].
Personnel have to spend some of their time to learn the new tools which may
not be satisfying for some of them.
Integrated systems performance is different from the granular (islanded)
systems performance. The integrated system makes people bored or tired as they are
not getting used and are not familiar with the new performance. Nice and beautiful
graphical interfaces can solve this problem to some extent [3].
•
Some personnel may think that they lost their previous freedom in work and
they are limited by using these new systems.
•
It is required to explain the consequences and long view of the modification
and alteration for personnel in a comprehensive way.
•
Principal Managers must be very active during the transition period.
•
The required trainings must be presented completely and comprehensively.
•
The implementation period must not last very long.
•
Managers must be justified more and before personnel and must totally
support the implementation [3].
2.11
Workflow Management Systems (WFMS):
Workflow management system is a system that recognizes, creates, and
manages executive work flow while using the software and is organizing with one or
more workflow engine and it has the ability to analyze the process concepts and
directly affects the participants in the workflow and it is a system that uses the
applications and tools of information technology. [4]
20
Regarding to the definition of the workflow from the aspect of view of
workflow management coalition (WFMC), in fact this coalition offers a model with
workflow managerial vision and diverse executive techniques in different
environments.
All workflow management systems are recognized by three principal layers
(surfaces) that are as followings:
Manufacturing phase functions: actually is responsible for definition and
modeling of workflow process and its sub activities [4].
Execution phase control function: it is related to management of working
processes in an active, scientific environment and sequencing and prioritizing of
different activities that each of them will complete a part of a process [4].
Execution phase reactions: is being used between human clients and IT
application tools for different activities process [4].
21
Work process definition tools, modeling, and
analysis
Process Definition
and design
Manufacturing phase
Process Definition
Execution phase
Process
Modifications
Process control and
sample making
Activities and relationships
with applications and
clients
Workflow executive service
IT Tools and
Applications
Figure 2.5: Workflow System Specifications [5].
2.11.1 WFMS Objectives
To know that a process is defined with what tasks and sub-tasks, and who
must accomplish those tasks and which actions are required between the people and
computer software for fast performance of the tasks and also how the sequencing of
the tasks must help a system to achieve its objectives, are the initial objectives of
workflow management systems establishment and creation. As an example consider
the maintenance section of an organization while a maintenance request form for a
22
product arrives to this section, which process must be taken so that the maintenance
is being done on this product within the lowest time and highest quality and the way
that the form is being reacted can create workflow system that will take the
responsibility of this form guidance [6].
This is one of the simplest types of performing a workflow system.
However, each system requires some tools and instruments to achieve the
desired objective that work automation can be one of the workflow management
system tools [6].
Coordinating the tasks and automating the commercial processes by means
of sequencing organizing the work tasks, using information resources and or
appropriate people who are familiar with such activities are making the objectives of
workflow management system [4].
2.11.2 Abbreviated Expressions in WFMS systems
Process Activity: a description or logical step of a part of a work that its
execution is effective in process completion is called process activity. A process
activity may include a workflow manual activity or automatic activity. [6]
Workflow Activity: a logical step which is usually being done
automatically and the completion of the workflow will be closer by doing this. [6]
Manual Activity: manual steps which their execution together with
automatic activities will result in a process completion. [6]
Process: process related collection of activities which are connected in
series or parallel and they follow the same objective that this collection includes
automatic and manual activities. A process example is the execution of a process
definition which is directed by WFMS. [6]
23
Collection of activities which are related with each other by a special
working case and each process is a collection of activities that are put aside each
other by a special sequence and by their accomplishment a process can be formed.
A special working process may have different life cycles. Some of them may
last one day, one week or one month which is related to the complexity of that
process, type and period of process activities execution. [6]
A special working process may be accomplished with different methods.
Information technology and communication devices employment level and also their
execution in small areas or large companies might be different. Executing, directing
and sequencing of the activities of a process are the tasks of a workflow
management system. [6]
Activity: collection of events; collection of actions which happens logically
and or being evaluated. A process is a logical step in the workflow that includes
some information about the start and finish conditions, the participation level of
clients, clients’ information and stuff, devices or information that are required for
completion of this activity, necessary limitations about how to complete the activity
(like time), etc. [6]
Process Definition: computer imagination (introduction and present) of a
process which includes manual and automatic definition of it. [6]
Workflow Definition: a part of process definition which includes the
automation aspects of a process and stands against the manual process. [6]
Manual Definition: a part of process definition which includes the manual
aspects stands against the automatic process. [6]
Application Data: data which are being used by application devices
(applications) and information which have specific application and is not available
to workflow management system. [6]
24
Workflow Application: software(s) which are responsible for support and
process of working item to accomplish workflow activities. [6]
Business Process: a kind of process in the field of policy and infrastructure
of an organization to achieve the working objectives. [6]
Business Process Reengineering (BPR): includes process, re-evaluation,
analysis and investigation, definition and specification of execution sequence and
executive sub activities of working processes in an organization. [6]
Process Instance: imagination of sample and part of process definition
which includes its manual and automatic aspects. [6]
Workflow Instance: imagination of sample and part of process definition
which includes the automatic aspects of process (actually automatically looks to all
processes workflow). [6]
Definition Mode Process: periodic time which is responsible for the
automatic and or manual definition of process. [6]
Process Execution: the time period lasts for the manual activities and also
workflow related activities in a process. [6]
Manual Execution: the time period those human participants of the
workflow execute manual definition of the process. [6]
Sub Process Definition: when a process is being done it may require
executing the whole or a part of a sub process. Meaning that when a process is being
loaded for execution and it is calling for another process during the execution and
that process will be executed so that in this case this process is a sub process for the
main process. [6]
25
Tool: it is a device that calls the workflow applications by using workflow
management system. [6]
API (Application Programming Interface): (application software link) a
part of computer operating systems applications which provides the relationship
between different applications or between applications and clients. [6]
WAPI (Workflow Application Programming Interface): applications that
are being used in workflow servicing. In particular WAPI is the link between
applications and workflow processes. [6]
Workflow: partially or fully automation or simplification of the process. [6]
Workflow Monitoring: the ability to follow the workflow events during
workflow management system execution. [6]
Workflow Engine: a service software or device that prepares the execution
environment (execution phase) for workflow samples. [6]
Workflow Management System: a system which is totally responsible for
definition, management and execution of working flows by using workflow
execution software. [6]
Workflow Enactment Service: software services which are responsible for
forming, management and execution of the workflow processes by using devices
and soft wares. These services are possible by linking with workflow applications.
[6]
Workflow Item: imagination of sub processes and activities which play a
role in workflow process and putting them in the work list. [6]
Work List: a list of working items. [6]
26
Work List Handler: software element that is responsible for workflow
service management and directing by means of a list of workflow items. [6]
End User: usually the intention is the user or client itself that means a
person or an organization which receives and utilizes the result of computer
analyses. [6]
Interface: the linking agent between different parts of a computer, or
computer and its side devices or computers with each other. This word is being used
both for communication and intermediary communication. Intermediary
communication may be a simple or complex system. [6]
Transaction Application: a program that creates and keeps a shared
database in a local network, and includes the principal records of network clients’
registrations and storages like filling up the forms. [6]
Non-Transaction Applications: applications in a local network which
produces some data and they are required to be recorded and to be kept in a shared
database so that all network clients can have access to that. [6]
Groupware: applications which provide simultaneous cooperation and
effectiveness of small working groups. A sample of groupware is For Comment
which is designed for comments with coordination and collaboration. This program
enables each client of the group to insert some notes and apply modifications in the
content based on other members’ confirmation. With the development of computer
networks and internet, some web logs can be created to achieve this objective. [6]
Workflow Client Application: clients’ requests are entered to the workflow
system and will be responded with the activities and relations that they have with
clients and IT programs and are being processed by means of workflow machines.
After a while, working list and its items can be specified for each of the clients
based on these requests and achieved reactions. A clients request may also enter a
workflow system not directly and is being used as a tool; second link in the
27
reference model shows this subject. And it is worthy to mention that this is the
software that handles the work list and uses the related software with receiving
service to cover the more extended range of activities. [6]
Invoked Application: requests that are being done for a specific activity by
work flow execution service and these requests are generally related to the server
not the client. Required information for the access to these requests line name,
address, and other parameters form a part of process definition. And it is worthy to
mention that the required application is the same as workflow application and third
relation in the reference model mentions this subject. [6]
Although the workflow can be organized manually, many workflow systems
require an IT system to be executive and also for working layers automation, work
computerization is required and computerization of a workflow is being formed by
utilizing an IT system too.
Principally workflow is associated with concurrent engineering (redesign) of
work process. Workflow in fact includes activities estimation and evaluation,
analysis, modeling, definition and execution in a collection of working processes
inside the organization. Although all BPR activities are not being used in workflow
execution, workflow technology provides a specific solution for workflow logic
separation and simplifies the IT applications execution.
A workflow system provides the layer automation of a process that this
automation is being done by working activities sequence management, human
resource allocation, or IT to the steps of each of different activities [6].
28
2.12
Enterprise Resource Planning Systems (ERP)
ERP systems are as last managerial tools which are being used currently in
many countries of the world. ERP systems are the result of new findings in the field
of information technology and are subject to change and modify rapidly with the
continuous progress in this field. [7]
In this report, the concept, objectives, and different definitions of the ERP
systems are discussed initially.
2.12.1 ERP Concept
ERP is not only a hardware or software but also affects a group of thoughts,
architecture, performance, and development of an organization or an economic
activity to achieve the beneficial objects and customer satisfaction. ERP transformed
from a thought or special solution for industry and productive organizations to a
complete solution for all organizations even national and service provider
companies. In other words, ERP is a thought, technology, and system for more
effective management over different resources of an organization. This management
is being done by automation and integration of all operations and indeed
improvement of organization’s productivity and customers’ satisfaction [7].
29
2.12.2 ERP Systems Objectives
•
To show the situation of an order or product in an organization at each
moment.
•
A decision making process supportive tool.
•
The main objective of ERP system is to produce the proper product with
appropriate quality with suitable price in proper time while achieving more
benefit in addition to customer satisfaction.
•
ERP systems objective is to organize the information all around the
organization functions like purchase orders, customer data, personnel notes
by using a shared database (instead of separate databases) [7].
2.12.3 ERP Definitions
• ERP is a huge information system that includes all available information of
an organization and covers the information flow, transmission and control
and it is also a method for beneficial planning of all enterprise resources of
a company. In addition, it is a system that includes all productive resources
and plays a major role in progress and guidance of that organization toward
its main objective (that is gaining profit) by managing the resources [7].
(see Figure 2.6)
30
Enterprise
resources
People
Data
Material
Machine
Money
Figure 2.6 – Resources that form an
Enterprise [11].
• ERP systems are considered as hidden factory (data factory) or physical
factory image that the raw materials of this factory are all the information
and physical factory data. ERP product is mainly information which
provides appropriate base and bed by giving them to the managers and
personnel to enable them completely use it for enterprise progress and
decision making for activities [7].
• Enterprise resource planning system (ERP) is an integrated information
system that serves all the units inside the organization. Generally, an ERP
system includes software for production, order input, purchase and sale
receipts, general total notebook, purchasing, stocking, transportation, and
human resource. ERP system can cause beneficial planning, organizing,
and enterprise controlling for collaborating regularized and sequenced
production processes and mainly shows the tasks of each unit in an
organization, organization’s resources optimization, and progressing the
management level and economic benefits of the organization. By
implementation of an ERP system, the enterprise can effectively organize
the properties of the enterprise, reduce the properties costs, speed up the
delivery process, and progress the economical flow management [7].
• Enterprise Resource Planning (ERP) includes such a group of systems that
provide financial, order management, production, and relevant task
planning. Modern ERP systems which are recently added are concentrating
31
on global planning, working and implementing processes all over the
whole organization (inter-organization systems), due to the importance of
its sides like supply chain planning, supply chain managerial aspects and
their development including the supply chain between all organizations.
• ERP system can be defined as a service provider/receiver application which
is designed in a cooperative way and acts as an information source for an
entire organization. ERP systems are implemented in a distributed
environment. An extent of an organization which is compatible with
database enables to implement all working processes [7].
• ERP is a systematic solution based on information technology that provides
the enterprise resources by means of jointed system rapidly, with accuracy,
and high quality to the control of managers in different levels so that they
can properly manage the planning and operations process of the
organization. (in fact, ERP system is a solution that managers of different
levels collect, analyze and control the relevant information of their
organization working processes) [3].
• ERP system is a subsequent of extended integrated united applications that
progresses the production, financial, distribution, human resource, and
other working functions in a moment. Previously, separate applications
were being used in organizations to automate these working functions
(tasks). Which is different about ERP systems is that they integrate all
functions (tasks) toward the creation of a single system more than a group
of separate basic applications (see Figure 2.7) [8].
32
Finance and
Accounting
Constant
properties
Personnel
Availability
Service
Module
Marketing and
stocking
ERP
Machinery
Availability
Production
Module
Materials
Availability
Supply Chain
Management
Customer
Relation
Management
Figure 2.7 - Single system resulting from implementation of ERP.
[8]
•
ERP is an integrated and complete system that is formed from two twisted
streams: managerial techniques and technology tools. ERP solution is a
necessary base for electronic commerce especially in B2B branch and a
certain solution for more extensive and higher benefiting from the
organization’s resources. Organization will have integrated systems by
means of ERP which returns its own costs quickly, makes extensive
development in business methods, and appears considerable progress in
marketing and trading relationships. Indeed the additive value of the
organization can reach to its highest level. In addition, by means of ERP and
its providing services, a chain of suppliers, organization, and relationship
with customers (customer service) will be created [3].
Supply Chain
Management
(SCM)
Enterprise Resource
Planning (ERP)
Costumer
Relationship
Management
(CRM)
33
ERP systems are the systems that collect organization’s information by
means of information technology in all fields in an integrated way and with a
flexible structure and provides these information and planning results to all clients in
all levels by using special planning. Therefore, it is possible to prepare the base for
electronic commerce establishment by extending the ERP work field and set up its
relationship with suppliers, distributers, and customers field. Figure 2.8 shows the
relationship between the organization, distributers, and customers [3].
ERP applications are designed for assisting the companies to establish
competitive benefits in management of important working processes by means of
providing software architecture which help automation and integration of separate
processes like manufacturing and distribution. ERP helps the companies to respond
very quickly to customers’ expectations and market conditions [3].
Now a days most of ERP packages (software) are compatible with order
management, manufacturing, planning and scheduling, financial and accounting, and
human resource. Also ERP retailers are actively moving forward for outside
potentials completion which helps the internal processes joint and planning toward
suppliers and foreign companies. In addition, ERP packages help companies to
provide better services with less cost [3].
Generally, ERP packages provide and IP network infrastructure with high
scalability and availability. To support them, common divided LAN infrastructures
with switching topology and with higher performance must be improved. In
addition, it might be necessary to improve common more extended field networks
with higher performance [3].
34
ER
P
SCM
Top Level of
the
Second Level
Suppliers
Top Level of the
organization
Distributers
First Level
Suppliers
Second Level
Suppliers
Second Level
Suppliers
Inside
Organization
CR
M
Manufacturing
/
Production
/
Assembly
/
Packaging / Services
First Level
Suppliers
Information
Flow
Materials
Flow
Sellers
Customer
Cash
Flow
Figure 2.8: Materials, Information, and Cash Flow regarding to
organization, suppliers, distributers, and customers [3].
•
Enterprise Resource Planning software, or ERP, doesn't live up to its
acronym. Forget about planning—it doesn't do that—and forget about
resource, a throwaway term. But remember the enterprise part. This is ERP's
true ambition. It attempts to integrate all departments and functions across a
company onto a single computer system that can serve all those different
departments' particular needs.
That is a tall order, building a single software program that serves the needs
of people in finance as well as it does the people in human resources and in the
warehouse. Each of those departments typically has its own computer system, each
optimized for the particular ways that the department does its work. But ERP
combines them all together into a single, integrated software program that runs off a
35
single database so that the various departments can more easily share information
and communicate with each other [9].
That integrated approach can have a tremendous payback if companies
install the software correctly. Take a customer order, for example. Typically, when a
customer places an order, that order begins a mostly paper-based journey from inbasket to in-basket around the company, often being keyed and re-keyed into
different departments' computer systems along the way. All that lounging around in
in-baskets causes delays and lost orders, and all the keying into different computer
systems invites errors. Meanwhile, no one in the company truly knows what the
status of the order is at any given point because there is no way for the finance
department, for example, to get into the warehouse's computer system to see whether
the item has been shipped. "You'll have to call the warehouse," is the familiar refrain
heard by frustrated customers [9].
2.12.4 The procedure of company’s business performance improvement by
ERP
ERP automates the tasks involved in performing a business process—such
as order fulfillment, which involves taking an order from a customer, shipping it and
billing for it. With ERP, when a customer service representative takes an order from
a customer, he or she has all the information necessary to complete the order (the
customer's credit rating and order history, the company's inventory levels and the
shipping dock's trucking schedule). Everyone else in the company sees the same
computer screen and has access to the single database that holds the customer's new
order. When one department finishes with the order it is automatically routed via the
ERP system to the next department. To find out where the order is at any point, one
need only log into the ERP system and track it down. With luck, the order process
moves like a bolt of lightning through the organization, and customers get their
36
orders faster and with fewer errors than before. ERP can apply that same magic to
the other major business processes, such as employee benefits or financial reporting
[9].
That, at least, is the dream of ERP. The reality is much harsher.
Let's go back to those inboxes for a minute. That process may not have been
efficient, but it was simple. Finance did its job, the warehouse did its job, and if
anything went wrong outside of the department's walls, it was somebody else's
problem. Not anymore. With ERP, the customer service representatives are no
longer just typists entering someone's name into a computer and hitting the return
key. The ERP screen makes them business people. It flickers with the customer's
credit rating from the finance department and the product inventory levels from the
warehouse. Will the customer pay on time? Will we be able to ship the order on
time? These are decisions that customer service representatives have never had to
make before and which affect the customer and every other department in the
company. But it's not just the customer service representatives who have to wake up.
People in the warehouse who used to keep inventory in their heads or on scraps of
paper now need to put that information online. If they don't, customer service will
see low inventory levels on their screens and tell customers that their requested item
is not in stock. Accountability, responsibility and communication have never been
tested like this before [9].
2.12.5 Required time for an ERP project
Companies that install ERP do not have an easy time of it. Don't be fooled
when ERP vendors tell you about a three or six month average implementation time.
Those short (that's right, six months is short) implementations all have a catch of one
kind or another: the company was small, or the implementation was limited to a
small area of the company, or the company only used the financial pieces of the ERP
37
system (in which case the ERP system is nothing more than a very expensive
accounting system). To do ERP right, the ways you do business will need to change
and the ways people do their jobs will need to change too. And that kind of change
doesn't come without pain. Unless, of course, your ways of doing business are
working extremely well (orders all shipped on time, productivity higher than all
your competitors, customers completely satisfied), in which case there is no reason
to even consider ERP. [9]
The important thing is not to focus on how long it will take—real
transformational ERP efforts usually run between one to three years, on average—
but rather to understand why you need it and how you will use it to improve your
business [9].
2.12.6 Stages of ERP Project:
1-preparation
2-blue print
3-realization
4-final preparation
5-go live [9].
2.12.7 Fixed Parts by ERP in business
There are three major reasons why companies undertake ERP: To integrate
financial data. as the CEO tries to understand the company's overall performance, he
or she may find many different versions of the truth. Finance has its own set of
38
revenue numbers, sales has another version, and the different business units may
each have their own versions of how much they contributed to revenues. ERP
creates a single version of the truth that cannot be questioned because everyone is
using the same system. To standardize manufacturing processes manufacturing
companies especially those with an appetite for mergers and acquisitions often find
that multiple business units across the company make the same widget using
different methods and computer systems. Standardizing those processes and using a
single, integrated computer system can save time, increase productivity and reduce
headcount. To standardize HR information especially in companies with multiple
business units, HR may not have a unified, simple method for tracking employee
time and communicating with them about benefits and services. ERP can fix that
[9].
In the race to fix these problems, companies often lose sight of the fact that
ERP packages are nothing more than generic representations of the ways a typical
company does business. While most packages are exhaustively comprehensive, each
industry has its quirks that make it unique. Most ERP systems were designed to be
used by discreet manufacturing companies (who make physical things that can be
counted), which immediately left all the process manufacturers (oil, chemical and
utility companies that measure their products by flow rather than individual units)
out in the cold. Each of these industries has struggled with the different ERP
vendors to modify core ERP programs to their needs [9].
2.12.8 Principle Roles in ERP's Project team:
1-Project Manager (PM)
2-Project Administrator (PA)
3-Project Manager Assistant (PMA)
4-Change Management Assistant (CMA)
5-Quality Management Assistant (QMA)
39
•
IT Leaders (ITL)
6-Configuration Management Assistant (CFGMA)
•
Database Administrator (DBA)
•
Operation System Administrator (OSA)
•
Network/Hardware Administrator (NHA)
•
Software Administrator (SWA)
7-Stream Leaders (STL)
8- Power Users (PU) [9].
ERP (Enterprise resource planning) represents an expanded effort to
integrate standardized record-keeping that will permit information sharing among
different areas of an organization in order to manage the system more effectively.
2.12.9 The reasons for use ERP systems:
Organizations today deal with new markets, new competition and increasing
customer prospect. Along with those scenarios, organizations have moved into a
time of slow expansion and smaller profit margins. This has put a tremendous
demand on organizations to:
• Lower total costs in the whole supply chain
• Abbreviate throughput times
• Decrease stock to a minimum
• Recover Product quality
• Supply more dependable delivery dates and better service to the customer
• Professionally organize demand, supply and production [10, 11].
40
2.12.10
Advantages of using ERP:
•
Reduced joblessness in received data
•
Permit everyone to split same source of information
•
Let everyone to admission same source information
•
Permit everyone to observe and update immediately
•
Recognize problem more rapidly
•
Build single version about financial, proceeds and sales numbers to
CEO and BOD
•
Permit standardization of business processes
•
Let standardization of enterprise's information [10, 11].
2.12.11
2.12.12
Design of ERP
•
Make up and customize enterprise system to support organization
•
Build up Database
•
Industry precise settings
•
Unique individuality of exacting industry or market section
•
Company precise settings
•
Unique individuality of company [10, 11].
Interfaces
Programs that let enterprise system to switch data with inheritance systems
Inbound and outbound [10, 11].
41
2.12.13
Data exchange
•
Need to move historical or inheritance data to new system
•
Requires tradition programs
•
Usually one-time uploads [10, 11].
Direct Cutover
Parallel Transition
Old
New
Old
New
Phased Transition
Old
Pilot Transition
New
Figure 2.9: Transition approaches [10,11].
New
Old
42
2.12.14
Go live and support
•
Quality declaration checks and evaluations
•
Optimization and modification of the production setting
•
Summarize preparation and assessment of end-user needs
•
Modification of systems administration procedures
•
Project review [10,11]
2.12.15
2.12.16
Obstacles to Success
•
Fault to set up metrics
•
Resourcing the post-implementation stages sufficiently
•
Ignore management reporting requirements
•
Addressing confrontation to change unwillingly or not at all [10, 11].
Metrics
Business cases for ERP implementation are usually “unclear”
Clear performance metrics can explain expectations and help decide if the
implementation resulted in benefits
Cycle time improvements
Cost reductions [12].
43
Figure 2.10: Types of ERP [13]
Table 2.2: Top Companies in ERP (manufacturing business technology) [13].
(in millions of dollars)
Rank Company
Total Revenue
Top-ranking enterprise system suppliers
Comments
The largest enterprise application vendor
saw, in 2005, at constant currencies,
SAP
Newtown Square,
1
PA
software revenue increase 31 percent in the
10,083
U.S. its enterprise systems architecture
(ESA) is the focus moving forward, with
SAP.com
products sets for large, medium, and small
enterprises.
2
Oracle Corp.
12,888
For enterprise applications business, non-
44
Pedwood Shores,
GAAP revenues of $4.8 billion for year
CA
ending November 30, 2005; and new
Oracle .com
software license revenue of $95 million.
Leading applications vendor looks to
region initiative with bold acquisition of
PeopleSoft, Sietel, and others.
Total revenue figure combines that of Infor
and SAAGT; acquisition of SAAGT by
Infor Global
Solutions/SSA GT
3
Alpharetta, GA
Infor announced May 15, 2006, making it
1,511
the third-largest enterprise software
provider within a rapidly consolidating
Infor.com
market place in which “size and scale
matter.”
For more than thirty years companies that
joined the Sage Software family have
assisted small- and medium-size businesses
Sage Group
4
Irvine, CA
1,400
Sagesoftware.com
with a side range of management
applications and services, including
multiple ERP sites, CFM and ACT! North
American revenues $687.4 million for FY
2005.
With the merger with international,
Lawson provides software and services
Lawson Software
5
St. Paul, MN
346
solution in manufacturing, distribution and
services industries, as well as cross-
Lawson.com
industry enterprise extensions.
ERP, CRM, and SCM solutions for
midmarket companies and divisions of the
Epicor Software
Corp.
6
Irvine, CA
Epicor.com
global 1000:20000 costumers in 140
289
countries, in more that 30 languages.
Epicor manufacturing solutions manage
complex requirements such as configure –
to – order plus repetitive requirements such
45
as make – to – stock, for a true mixedmode environment.
E-synergy is a web-based collaboration
platform that unities all the capabilities
within a company; Macola ES is a next
Exact Software
7
Andover, MA
278
Exactamerica.com
penetration ERP system; JobBOSS is a
job-shop software solution; MAX is for
ERP in an SQL environment; and
Alliance/MFG is MRP II in a Microsoft
SQL or Access environment.
Component-based software in two areas:
life-cycle management, for assets and
IFS
8
Schaumberg, L
products; and midmarket ERP for
270
Ifsworld.com
distribution and manufacturing in mid-size
companies. Recently released IFS
application 7 is the product of more than
600,000 hours of development work.
A Fujitsu company, its ERP solution –
Glovia
International
9
El Segundo, CA
glovia.com – has as its technology basis a
246
Glovia.com
single integrated real-time database schema
on a single code set; one of the few
remaining ERP vendors focused
exclusively on manufacturing.
In May announced shipment of its flagship
ERP software with a Microsoft NET
QAD
10
Santa Barbara, CA
Qad.com
framework-based user interface and will
225
support Microsoft SQL 2005 database
technology in near future. This paves way
for advanced database reporting and
business intelligence capabilities.
46
2.13
Case Study:
2.13.1
Ship Construction Industry:
This industry comprises establishments primarily engaged in operating a
shipyard or manufacturing boats. Shipyards are fixed facilities with dry-docks and
fabrication equipment capable of building a ship, defined as water-craft suitable or
intended for other than personal or recreational use. The activities of shipyards
include the construction of ships, their repair, conversion and alteration, the
production of prefabricated ship sections and barge sections, and specialized
services, such as ship scaling, when performed at the shipyard [14].
2.13.2 SADRA
2.13.2.1 History of Sadra:
Sadra is a company working on naval structures constructions and has three
work sites in Iran. The considered company in this study is the branch of this
company in north of Iran which constructs the naval structures that are being used in
Caspian Sea and connected water fields.
There are around 2000 working personnel in Sadra working in different
engineering and non-engineering fields. Products of Sadra are usually constructed
under the supervision of DNV.
47
In addition to keep the initial objectives of itself, Sadra is working in the
fields of construction and maintenance of ships, oil and gas equipment establishment
and also infrastructure projects. Moreover, it is trying for commission services
export by concentrating on Asia and Africa markets.
Currently, this company has the following projects for design and execution
in Khazar Association:
•
Iran alborz semi-submersible Drilling
•
three vessels for platform movement in sea
•
three oil-containers (63,000 tons)
Activities of each project are being done in three major disciplines:
1. Engineering and technical:
This section is responsible for design of the required drawings of
each project by means of relevant professional programs.
2. Executive section:
All construction operations and installation operations are carried out
based on designs and construction supervision and each system execution
regarding to its working condition is being performed by the personnel of
this section.
3. Planning section:
Planning for the tasks that must be done, putting these operations in
tables, and work progress supervision based on time table in above two
sections are the responsibilities of this section that it itself include two
planning and executive sections.
48
2.13.3 Problems statement of SADRA
•
Not integration between resources of the organization
•
Delay in execution of some programs
•
Increase of some side-costs
2.13.4 Principals
Investigations, employing experiments, and considering active organizations
with similar working fields with the purpose of predicting the base formation and
possibility of working efficiency improvement and organization productivity are
considered in preparation of this document as an infrastructure and principal.
Prediction and following the organizational relationships’ standards in
executing the commission projects of organization based on the structure of PMI
(Project Management Institute) standards toward the assurance of correct
performance of the organization in inside organization relationships will be
completely considered.
Principal points for pre-assumption and benefits of chart execution include
the followings:
•
Creation of the compatibility base of the diagram with the general
diagram of the organization except professional cases
•
Creation of the compatibility base for the execution section of the site
with similar and active organizations
•
Creation the base for work professionalization and move toward mass
production with standard efficiency
49
•
Creation of the base for measurement stations establishment and
stability of working efficiencies
•
Creation of the base for experiments transfer and correct training of
working teams
•
Creation of the base for not concentration of the works in a section of
the organization
•
Creation of the base for each section response and correct distribution
of the responsibilities
•
Creation of the base for group and team work.
2.13.5 Organization chart of SADRA:
As shown in Figure 2.11
50
Figure 2.11: Organization Chart of SADRA
CHAPTER 3
SYSTEM DEVELOPMENT METHODOLOGY
3.1
Introduction
Methodology is a procedure, method or tecnique that is used in analyzing,
identifying requirements and designing systems that will be developed.
An
appropriate methodology, models and techniques must be defined to fit the system
that will be developed according to user requirements. Selecting the best approach
that suits the objectives and the scopes of the project is crucial to ensure smooth and
systematic development of the project.
Before a project is developed, a careful and proper project planning is
important. There are certain things that are to be taken into consideration including
identifying the right methodology that will be used in the overall project
development. Besides, project schedule must also not to be missed out and properly
planned.
This
chapter
discusses
project
methodology,
system
development
methodology and the workflow of the overall project. The main purpose of the
project is proposing a new system based on the new business structure for a ship
52
construction company. A prototype of a Discipline-Based Manufacturing
Information System for ship Construction Company is also developed.
3.2
Project Methodology
Project methodology can be defined as a guideline that needs to be followed
to ensure that activities within the project are well organized. Implementation of
correct and suitable methodologies will ensure that intended project objectives and
scopes are met.
The required methodology for this project development is started from
planning phase, analysis of the current workflow in a ship construction company,
proposing a new business structure based on WFMS and ERP, proposing a new
system based on the proposed business structure, designing proposed system
structure and developing a system prototype for a discipline-based manufacturing
information system for a ship construction company, followed by the
implementation and application testing. Figure 3.1 shows the overall project
development methodology framework.
53
•
•
•
Planning Phase
Identify Project Objectives
Identify Project Scopes
Identify Project Methodology
Analysis Phase
• Study on ERP and WFMS
solutions for Ship Construction
Company
• Study the current work flow of the
manufacturing department of a ship
construction company
• Propose a new business structure
based on WFMS and ERP for
manufacturing department of a ship
construction company
• Propose n new system based on
the proposed business structure for
the manufacturing department of a
ship construction company
Design, Develop & Testing Phase
• Identify system requirement
• Develop system prototype
• Implement system prototype
• Test developed application
• User acceptance
Figure 3.1: Project Methodology Framework
3.2.1 Planning Phase
In this first phase of the project, problems, opportunities and objectives of
the project are identified. This phase is critical to the success of the project to
ensure that the right problems are identified.
54
Before deciding on the title of the project, business process are analyzed to
identify existing problems within the existing business process. Once identified, a
title is proposed and further discussed with a supervisor. Based on the problem
statements derived from the problem identification, objectives are analyzed and
defined by addressing specific problems or opportunities.
Opportunities are
referring to situations that can be improved through the use of computerized
information systems.
Project scopes are also identified to set limitation and
boundary of the project. Project methodology is then identified based on the study
of the project background.
3.2.2 Analysis Phase
In analysis phase, the activities are including literature review, study on ERP
and WFMS solutions for ship construction company, study on the current work flow
of the manufacturing department of a ship construction company, propose a new
business structure based on WFMS and ERP for manufacturing department of a ship
construction company and propose a new system based on the proposed business
structure for manufacturing department of a ship construction company. This phase
is crucial to gain in-depth understanding and knowledge in developing and
Discipline-Based Manufacturing Information System For A Ship Construction
Company. This phase also attempts to delve into the problem or opportunity more
fully. Several areas of ERP and WFMS related to manufacturing in a ship
construction company can be figured out such as best practices, common procedures
and features of a Disciplined-Based Manufacturing Information System for a Ship
Construction Company by the end of this phase.
55
3.2.3 Design, Develop & Testing Phase
After user requirement has been obtained in analysis phase, the following
phase will justify how the information gathered will be able to meet user
requirements. In this phase, interfaces of the prototype are designed. Besides,
database design for the system is done. After the completion of prototype, testing of
prototype will be done. User acceptance test will also be conducted with expected
result that the developed prototype will support the user requirements and fulfill
overall project objectives.
Figure 3.2 : Project Development Workflow
56
3.3
Evolutionary Prototyping
Evolutionary prototyping has been chosen as the development strategy or
methodology for this project.
It targets the speed of product delivery and
concentrates on identifying requirements so that the first version of the product can
be delivered quickly although with incomplete functionality of the first version of
the product.
Besides that, it improves user development communication and
introduces flexibility and responsiveness to the development process. Furthermore,
the system that is built using this methodology is more likely to meet user needs
(Efrem, 2000). They are a few main stages or phases involved in evolutionary
prototyping method, as shown in Figure 3.3. The phases involved are as follows as
shown in Table 3.1. The workflow of the phases in evolutionary prototype is shown
in Table 3.2.
Table 3.1 : Activities in Evolutionary Prototype
Phase
Activities
Planning
•
Determine the methodology that will be used in
the project development.
Analysis
•
Identify user requirements and create user
specifications.
•
Design, Develop &
Testing Prototype
Design a prototype that will be built based on the
user requirements.
•
Build the prototype based on user specifications.
•
Test the prototype that has been built and show
the prototype to the user.
57
Figure 3.3 : Evolutionary Prototyping Method (Pressman, 2001)
3.3.1 Planning Phase
In the planning process, verification of the methodology that is to be used
should be done to verify whether evolutionary prototyping approach is appropriate
to be applied in the development of Discipline-Based Manufacturing Information
System for a Ship Construction Company. Research and study have been carried
out and evolutionary prototyping is in fact the most suitable development paradigm
that can be used in developing a Discipline-Based Manufacturing Information
System for a Ship Construction Company.
58
Besides identifying the suitable methodology, user identification is also done
in planning phase. For this project, the intended users are managers and the staffs of
the manufacturing department of the ship construction company
3.3.2 Analysis Phase
The purpose of this stage is to learn more regarding the specification of the
system that will be built. This phase will also include studying of current work flow
of the manufacturing department of a ship construction company. This will help to
give the overview of the overall business processes in the new proposed system.
Studies are mainly done through literature review, case studies and also past
experiences. Current system is also analyzed to study the common features and
functions of a manufacturing information system for a ship construction company
besides studying the existing business structure of the selected case study. Based on
the studies, problems in the existing system are identified.
3.3.3 Design, Develop & Testing Phase
Soon after system specification has been specified in the analysis process,
prototype design which includes system module design and user interface will be
built. Prototype has been design in the previous process, so a prototype will then be
built.
The development of the first prototype was using a fourth generation
programming language to reduce the consumption to time and cost for the building
of the prototype. Visual Basic Dot Net has been used to build the first prototype.
59
The advantage of using a fourth generation programming language is it is easy to
use and saves a lot of time. Selected users need to be fully involved in this process
to get full feedback regarding the prototype which represents the system that is
going to be built.
Testing is not the last process in the development of this system. In
evolutionary prototyping process, if the first prototype that has been built doesn’t
meet user requirements or system requirements, the prototype will need to be
modified a few more times until it meets the system requirements. But, if the
prototype that has been built met all the system requirements it will be accepted as
the new system.
During testing phase, testing of the prototype will be done. The prototype
will be shown to the selected users of the system. They will collaborate in testing
the prototype which represents the system that will be built based on users
requirements. If the group of users is satisfied with the prototype, it will be accepted
as the new system and vice versa.
Table 3.2: Workflows of Phases in Evolutionary Prototype
Workflows
Output
Planning Phase
Methodology: Evolutionary
Task 1
Identify the methodology,
prototype
techniques, and tools that will be
User: Staffs of SADRA
used in project development.
Project schedule: Gantt chart.
Task 2
Identify the users.
Task 3
Build project schedule.
Analysis Phase
An overview of current business
Task 1
Study existing ship construction
processes and structure of ship
company and their business structure,
construction company.
60
workflow, literature review, case
Features and functions of
studies.
existing business structure of
Analyze the current business
the manufacturing department
structure and manufacturing
of a ship construction
information system for ship
department.
construction company.
Problems of current business
Identify the problems that occurred
structure and work flows.
Task 2
Task 3
in current manufacturing department
of a ship construction company.
Design, Develop & Testing Prototype Phase
System modules, features,
Task 1
Design the system module, features
functionality
and functionality.
Conceptual design using use
Task 2
Initial design of the system.
case diagrams, class diagrams,
Task 3
Interface design of the prototype.
activity diagrams, sequence
Tack 4
Build prototype.
diagrams.
Task 5
Present the prototype to the users for
System prototype development
evaluations. Receive feedback from
The real system
users and decide whether further
improvement to the prototype is
required.
3.3.4 Methodology Justifications
Evolutionary Prototyping has been chosen as the methodology that will be
used for the development of the Discipline-Based Manufacturing
Information System for Ship Construction Company based on the reasons as
stated below:
i.
This methodology is flexible and can improve communication
between system developer and the user. Change is no longer
61
something to be avoided but it is built into the process and
encouraged.
ii.
High cost in building a new system over and over again can be
prevented through this methodology. If a prototype doesn’t meet
the requirement of a user, it can always be modified without the
need to build a new prototype starting from the start. Besides that,
a clearer picture of the requirements that a user needs can be
identified through the usage of the prototype. This, the user can
give better suggestions on how to improve the system until the
system has met their requirements and they are satisfied with it.
This can also prevent from sudden or last minute change at the
end of the system development by the users which can lead to
longer development time and higher cost.
iii.
Systems that are built through this methodology are more likely
to meet user requirements or needs than a system that is built
through SDLC.
iv.
Allows real view of the system by showing the developed
prototype to users. This makes it easier to collect feedback and
comments from the users which later the comments and feedback
will be used to further enhanced and improve the prototype until
all user requirements are met.
62
3.4
Chapter Summary
In this chapter, we had identified the guide line and procedure that will be
applying in developing the project. Project methodology leads the work throughout
the life cycle of a project. Development methodology consists of different project
phases that are very important in ensuring the success of a project. The correct
methodology should be use in order to build a good system. The methodology will
be the guidelines during the development process of the system. It is important to
build a system that meets user requirements. Evolutionary prototype has been
chosen as the system development methodology for this project.
CHAPTER 4
SYSTEM ANALYSIS
4.1
Introduction
Initially in this chapter the task’s descriptions of different working levels of
Sadra Ship Construction Company will be considered and afterward the
relationships and working steps of the whole organization will be explained.
Next, the current projects that are under execution will be briefly introduced
and also, current working procedure of this company and organization of human
resource relevant to each project will be argued which will clarify the present
infrastructure of operation performance of this company.
Towards the end of this chapter, focus will be given to the manufacturing
department of Sadra, which is divided into two main categories of engineering and
execution. Both named areas comprise of the disciplines of structure, piping,
electrical, HVAC, outfitting and machinery, painting and architectural. It must be
included here that the areas of planning and supplies (warehouse) are also
incorporated into the production process.
64
In this chapter, one product of the company, namely vessel number 1 will be
taken as sample, where every task and raw material pertinent to the production of
the vessel-as the key inputs to the process-will be taken into consideration
4.2
Current Stage of SADRA
4.2.1 Task Description
As mentioned previously, currently there are three in progress business in the
company which are (See Figure 13):
•
Semi-submersible Drilling
•
Three vessels
•
63,000 tons Tankers
Figure 4.1: SADRA by Business Unit
As stated in the scope of this project, seven working disciplines are working
in this company that the existence of all of them is required for project
accomplishment and they are:
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•
Structure
•
Piping
•
Electrical
•
Outfitting and Machinery
•
HVAC
•
Painting
•
Architecture
Planning unit is responsible for coordination of these units and also is
responsible for solution finding, report presentation, and projects execution
procedure control. Indeed, planning section will be also considered as an important
part of the company and required basic changes will be done for this section as well.
At first, each of above disciplines must be introduced and their tasks
description in the projects must be specified. Then, the relationship between them
must be specified and the type of the relationship and the third parties that interfere
in these relations must be clarified. Finally, the general structure which governs
Sadra Institute will be noticed describes the distribution and the method of use of
these disciplines.
4.2.2 Structure:
This discipline has the responsibility of performing the buildings related jobs
of the products. The frame and structure of each product is the most important part
of each project. The working personnel of this section must have the abilities of
calculation, design, and correct estimation of the forces and pressures put on each
element of the product. In addition, they must have the ability of recognizing the
metals and the raw materials which are being used for each part of the product.
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4.2.3 Piping:
This discipline has the responsibility of performing all piping related
activities. As you know, there is a large volume of pipes with different dimensions
that are being used in any sea structure. This group has the responsibility of pipes
transition places and type of pipe joints design. In addition, recognition of high
pressure or low pressure pipes usage and their correct location is the responsibility
of this group.
4.2.4 Electrical:
This discipline has the responsibility of bringing the electrical power to all
parts of the product. To do this, cabling system, telecommunication systems,
installation of all electrical, lightening, and telecommunication devices are the tasks
of this group. In addition, recognition and design of the lights, cables, and …
passages and also recognition of the cable types and their resistance for each section
are their tasks as well.
4.2.5 Outfitting & Machinery:
Tasks of this group include design and execution of the operations related to
installation of handrails, stairs, different machineries, etc. by considering the
strength of the foundation of different machineries.
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4.2.6 HVAC:
This discipline has the responsibility of providing central air conditioning
system in each sea structure. It must design and execute the correct path of warm
and cold air passage channels and also specify the correct location its machinery.
4.2.7 Painting:
Painting is one of the final operations of each project, but it is not necessarily
the last operation. For example, in some cases some parts must be painted so that
different disciplines enable to continue their activities. This group must be able to
specify the type and material of the paint which is being used for each part. For
example, the type of the paint for the body of the sea structure is different from the
type of the paint which is being used for interior parts of it. This group also must
calculate the amount and volume of the used paint for each part.
4.2.8 Architecture:
One of the most important disciplines for each sea structure is architecture
discipline. High percentage of outside or inside view and beauty of each structure
depends on this discipline. Activities of this discipline includes: isolation, paneling,
roofing, flooring, curtain installation, etc. This group has the responsibility of
correct calculation of the amount and volume of architecture related materials and
also their installation.
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4.2.9 Resource Distribution of SADRA
Figure 4.2 shows the discipline and personal distribution that already
explained them.
Figure 4.2: Resource Distribution of SADRA
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4.3
Identification of the relationships between different disciplines and
intermediary identification:
In general, each of these seven disciplines (Structure, Piping, Electrical,
Outfitting & Machinery, HVAC, Painting, and Architecture) is made up of two
major parts of engineering and execution.
1. Engineering section of each discipline designs and prepares the executive
work plans after true and accurate calculation and they will be given to
the executive group of the same discipline. This process is being done by
the intermediation of the planning group. Engineering section must fill
up the work order form after providing the finalized work plan execution
and send it to the planning section by means of human resource. Planning
section sends it to the yard and executive section by means of human
resource after reception and recording the work order in computer. The
executive section of the project, then, starts to execute and produce the
product by using these plans.
The executive section of each project is made up of following people:
a. Executive engineer
b. Technician
c. Forman
d. Workers supervisor
e. Workers:
i. Welder
ii. Assembler
iii. Cutter
iv. Grinder
v. Isolator
vi. Panel maker
vii. Painter
viii. Sand blaster
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The executive engineer of each discipline starts to perform its operations
with aim of its group after receiving the work order and executive plans.
2. If a problem occurs during the operation of executive group like uncompatibility between work place and plans or clashing between the
operation of a group with another group in the working area, and if this
interruption was not estimated in the engineering section, the executive
engineer requests the engineer of the design and engineering section to
come and observe the work place in the yard by means of telephone or
written letter. Modifications will be done on the plans after the visit of
design engineer and follows the previous path to arrive to execution
section. Also, the informing process from the execution section to
engineering section is being done by means of planning unit as well and
the last revision of the plans are being recorded in planning unit.
3. The executive section requires a MIV form to receive the materials from
the stock to produce the product. This form is filled up by the engineer of
the engineering section and being sent to the executive section by means
of human resource.
4. Executive section can receive its required materials from the stock by
sending this form (MIV) to the stock by means of human resource as
well.
5. Planning section also specifies the schedule of the performing activities
of different groups and their priorities by sending the weekly working
program of each discipline by means of human resource to the execution
and engineering sections.
6. Each section including engineering and execution is required to submit
its progress report to the planning section. This is a paper based report
and again will be sent to the planning section by means of human
resource.
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7. In addition to this, the planning section also collects work progress
reports by means of project control personnel that are being sent to the
project execution place to verify and investigate the validity and
correctness of the received reports.
8. If a problem occurs between different disciplines (like having different
ideas about a situation) during the execution of the project, for example
piping discipline and HVAC discipline find corruption about the priority
of the execution of their plans in the same working area or the piping
discipline asks the architecture discipline to bring the panels of a specific
place to re-execute a work, this request will be asked in an informal and
oral manner initially between the responsible personnel of each
discipline. If they agreed on the case the project will be continued, else a
formal letter will be sent to the planning section and a meeting will be
held to solve this problem. This letter is a paper-based one and will be
delivered by means of human resources. The results of the mentioned
meeting will be recorded and written and also will be announced to the
responsible people of each section by means of human resource.
4.4
Elaboration of the current (real-time) planning unit, Sadra Co.
As explained previously, the following three projects are currently under
development at Sadra:
•
Semi-submersible drilling
•
Three vessels
•
63 megaton tankers
Sadra planning unit functions in the following manner:
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Although an independent planning unit has been defined by the company, it
is in reality integrated into each separate project, and instead of overlooking the
planning process throughout the entire company from without, it is rather
interactively involved in processes that run independent of the planning unit
themselves.
Consequently, a professional manpower group is involved in the process of
control and planning that is not synchronized into team work.
Let us take the drilling platform as an example. A team is assigned
exclusively to the planning and project supervision tasks on this platform that has
been distributed over the various areas of the project based on task division.
Similar teams have likewise been assigned to the tow vessels and the tankers.
Therefore it is observed that for each project one independent team has been
assigned with planning and supervision tasks, that most often do not interact with
each other either.
4.5
General structure of Work Process at Sadra:
Here, the distribution of manpower throughout the various project areas in
Sadra will be explained. In each of the three major projects described earlier the
following expertise will be distributed over different areas of work:
1. Chief Project Manager
2. Engineering Manager
3. Operational Manager
4. Piping Superintendent:
a. Engineering
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b. Operations
5. Structural Superintendent:
a. Engineering
b. Operations
6. Electrical Superintendent:
a. Engineering
b. Operations
7. HVAC Superintendent:
a. Engineering
b. Operations
8. Outfitting and Machinery Superintendent:
a. Engineering
b. Operations
9. Painting Superintendent:
a. Engineering
b. Operations
10. Architectural Superintendent:
a. Engineering
b. Operations
As of the present, Sadra functions as the axial project, around which the
above areas operate, as illustrated in the following diagram (it is important to note
that this diagram applies to each of the three projects mentioned for Sadra) (See
Figure 4.3).
:
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Figure 4.3: Work Process at Sadra
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4.6 Proposed New Framework
Here, manufacturing systems and processes in Sadra Co. will be analyzed,
comprising of:
1. The identification of relations between the previously mentioned five
disciplines involved.
2. Illustration and elaboration of Data Flow Diagrams
3. Illustration and elaboration of Work Flow for the existing production line
Following this identification process, theories will be presented for the
automation of the current system. The outcome of this analysis will be a proposal for
a new work system changing from the current project-centered form into a
discipline-centered one. The said proposal will be used in the development of
Sadra’s current production line based on ERP.
The next stage is to design the new production system for the company, for
which task the following steps have been taken:
1.
Illustration and elaboration of Data Flow Diagram for the new system
2.
illustration and elaboration of Work Flow for the new system
3.
Designing the information system comprising of Database and Entity
Relationship Diagram designs using Access software.
4.
Designing the interfaces for the use of different users.
The new system will then be used in the manufacturing of products at Sadra,
including the previously mentioned Vessels.
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4.7 System Analysis
4.7.1 Identification and automation of linkage processes between the seven
disciplines:
Under the previous topic, a brief overview was provided for the different
disciplines at work and their duties. Here the connection between disciplines will be
elaborated through the following theoretical definitions and diagrams (See Figure
4.4):
A: MIV and Work Order preparation
B: Request for revision of plans and issuance of new Work Order
C: Receiving and storage of materials
E: Progress report
G: Meeting request for conflict resolution between different disciplines
R: Preparation of revised plans
4.7.2 Data Flow Diagrams (DFD) of Current System:
For analyze the current sage of SADRA drawing all Data Flow Diagrams
(DFD) is necessary that showed all of them in below.
4.7.2.1
SADRA DFD level 0
Here, Sadra Co. has been presented in the overall view wherein the CEO,
clientele, and the respective departments of Engineering, Operations, Quality
Control, and Planning interact (See Figure 4.5)
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OPERATIONS UNIT
SEND
RECORD
AND SEND
STOCKS
RECORD AND
SEND
RECORD AND
SEND
SEND
SEND
CONTR
PLANNING UNIT
SEND
RECORD AND
SEND
SEND
SEND
ENGINEERING UNIT
.
Figure 4.4: Linkage Processes Between The Seven Disciplines
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Figure 4.5: SADRA DFD level 0
4.7.2.2 SADRA DFD level 1
The diagram displays the CEO receiving purchase orders from the client and
conveying the same to the Engineering Department. The engineering department
provides working drawings, and conveys them together with the MIV to the
planning department. This latter sends the same after recording them, to the
execution and operations department, where to release materials the MIV will be
sent to the warehouse, and then will proceed with the construction of the ordered
product. Following the completion of the product, Quality Control Department will
inspect it thoroughly, before delivering it to the client (See Figure 4.6)
.
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Figure 4.6: SADRA DFD Level 1
4.7.2.3 SADRA DFD level 2.3
The diagram illustrates the planning department receiving working drawings
and MIVs from the engineering department, records the said drawings and MIVs
and sends them to the execution and operations department (See Figure 4.7).
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Figure 4.7: SADRA DFD Level 2.3
4.7.2.4 SADRA DFD Level 2.4
The diagram displays that the working drawings as produced by each
discipline in the engineering department-together with the attached Work Orders and
MIVs- will be sent directly to the corresponding disciplines under the operations
department for production (See Figure 4.8).
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Figure 4.8: SADRA DFD Level 2.4
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4.7.3 SADRA Current Stage Workflow:
The workflow of current stage of Sadra showed in below that is necessary to
design a new framework of this company (See Figure 4.9) Here the different stages
of production and delivery at Sadra have been illustrated.
Figure 4.9: Current Workflow of SADRA
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4.7.4 SADRA Schematic before use the ERP System:
As Figure 4.10 implies that the Sadra Company has been configured in
various sections such as Manufacturing, Human resource, Finance, Stock and
Transportation in which every section has a specified related mechanism. In the
normal operation, through the Business Process, each part is communicating with its
own working system, in where this interaction is independent of else sections of the
other systems.
Figure 4.10: SADRA before ERP Implementation
4.7.5 Automation
As witnessed, the planning unit plays a vital intermediary role in the work
processes of Sadra; and because paper forms and manpower are important in the
interdisciplinary correlations, thus for the improvement of the said processes the
following aims are to be achieved:
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•
Manpower shall be eliminated from the intermediary processes and as mail
couriers
•
Paper forms and letters shall be eliminated
•
The intermediary role of the planning department shall be optimally reduced
•
For the abovementioned aims, and to speed up processes, and minimize
human errors, the following objectives shall be pursued:
•
A general database accessible to all staff in the company should be created
With the presumption that Sadra is equipped with intranet, all handwritten
forms and letters including work orders and MIVs shall be converted into
computerized formats.
Along designing the pertinent computerized system, it must be remembered
to replace man with computer, and thus to take not of all possible forms and letters,
and to equip every pertinent staff with personal computers. Upon pressing the
ENTER button, forms must be first saved to the database and then transferred from
one unit to another. Accessibility level and time must be defined for various areas of
the database. As described earlier, in every Project construction process the seven
named disciplines are involved; meaning to say that the outcome of this project will
be applicable to every Project production line.
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4.7.5.1 SADRA schematic after use the ERP:
In Figure 4.11, it can be observed that every part of the Sadra Company
such as Manufacturing, Transportation, Human resource, Finance and Stock has
been integrally organized which may centralize upon the Business processes
therefore vendors and customers interacted with these organized systems.
Figure 4.11: SADRA after ERP Implementation
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4.8 Propose the Conversion of Sadra work structure from project-centered to
discipline centered
Regardless of the uniformity of the shipyard, manpower and machinery
distribution at sadra is defined by projects. Here we are to propose the conversion of
the work structure from definition by project to definition by discipline.
For this, instead of allocating seven disciplines to each project, the seven
disciplines will be defined for sadra, and in turn each discipline will involve in each
of the projects at once. To clarify these criteria the following diagram will be
presented (See Figure 4.12).
Figure 4.12: Modified work structure of Sadra Company
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4.8.1 Reasons of work structure modification from project oriented situation
to discipline oriented situation:
1- The most important reason of this modification is to integrate the
information and data relevant to each discipline in the whole yard, which means that
no more un-integrated information exists relevant to each discipline. In the current
situation that the general structure is based on project oriented system, each
discipline is divided into some separated sections that each section of the same
discipline is working on a specific project and there is no integrated or organized
information and data relevant to each discipline for the whole system.
For example, for the architecture discipline, currently it is possible that the
information related to isolation, panel, door, window, and curtain meter of each
project exists that are being reported to the top supervisor by means of three
different sections of architecture discipline and by three different manager of
architecture. Obviously, at first, the accuracy and proficiency of each person is
different, secondly, estimation of the total amount of materials of architecture for the
whole system and estimation of other required materials are very difficult and in
some cases it is impossible. However, in the new working system one manager is
being used instead of using three different managers with different characteristics
and also, only one specific database for each discipline exists instead of three groups
of information for each discipline for three in progress projects.
2- Increasing the accuracy of the work, the speed of work progress, and also
decreasing the required time for accomplishment of the project and prohibiting the
occurrence of duplicate problems.
Currently that all seven disciplines are working independently on projects
and the managers of a specific discipline are working on three similar projects, they
are different in personal and professional characteristics and may present their own
personal method and procedure for completing the project and for sure all methods
are not good ones and certainly their performance and work management are
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different. In addition, their accuracy and their work progress speed is different from
each other. Therefore, in the new system, it is possible to completely give the
responsibility of the tasks of that discipline to that manager of the discipline that has
been selected based on his or her better performance, method, and accuracy and
more compatible or close to the standard rather than other managers. This will result
in higher and more similar work accuracy and work progress speed in the whole
system and also, the best selected manager can use its experiment and knowledge of
the problems of one project in a concurrent project and prohibit the repeating
problems.
3- Human resource reduction and its costs and raw material waste reduction:
As mentioned before, more human resource or personnel is required in the current
system rather than the new system, because for each project there is a need for a
manager, technician, foreman, and worker for each discipline. Though, in the new
system by trusting the management method of superior manager, definitely two
extra managers are reduced initially, and then the number of working personnel is
decreased. On the other hand, in the current system, if a problem or error occurs in
using the raw materials, it is possible that the same error happens in concurrent
projects and if still there is raw material after cutting or forming process, they
become useless for the mentioned project, whether it is possible to use them for
other concurrent projects or not. However, in the new system, the human error
relevant to the material usage can be certainly prohibited in other concurrent projects
and as the system is integrated, the manager of the discipline is also one person. So
that, with having enough information of all three in progress projects simultaneously
it is possible to understand that the waste material of one project can be used in
which part of concurrent projects and therefore reduce the waste of raw material to
the maximum possible extent.
4- Freedom and independency increase in the working condition
In the current system, for example consider the piping discipline, it is required to
prepare the pipes like cutting, bending, extending, welding, etc. in the workshop
area to perform the piping operation for the projects. So, three different piping
working groups that are working completely independently for three in progress
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projects can be seen in the workshop. Indeed, each group requires specific tools to
perform their works which certainly must be provided for them during the working
hours. Therefore, the workshop will be very crowded and a lot of similar working
tools are required but in higher quantity.
However, in the new system, the person in charge of each discipline, for
example piping discipline, selects the best group of workers for materials
preparation and puts them permanently in the workshop that this group can provide
the requirements of projects based on the priority of the projects which has been
specified by the manager of discipline. Therefore, the working place is specifically
for this professional group.
5- Easier report preparation and report presentation and better control of
work accomplishment steps.
Current reporting and controlling system of work progress is accompanied
with lots of problems. This is because; initially there is no similar database for each
discipline which can devote a percentage to each work step by referring to them.
Secondly, the database of each discipline in each project is different from
each other in work value and man hour. And finally, there is no specific index for
general report of the discipline in the yard. For example, in HVAC discipline, the
manager of HVAC may consider 4 man hours for installation of one meter rocket in
each project while the manager of HVAC in another project considers 8 man hours
for the installation of one meter rocket in another project in a very similar place to
the place of previous project (for example both have been done in accommodation
location). Therefore, there will be no unique definition because proficiency of the
managers and also the working personnel under their control are different from each
other.
However, in the new system, when the man hour report for different
activities are requested from the manager of the discipline, and by assuming that this
manager is the best selected manager that his or her management and proficiency
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method is compatible with relevant standards, it is possible to put his or her offered
report as a unique information in the database and do the reporting activities based
on this database. Also, work accomplishment control can be done easily and
consider a work progress percentage for each step of work accomplishment and this
work progress percentage for each project and finally progress percentage for the
whole system can be also predicted and calculated daily, weekly, and monthly for
each discipline.
4.9
Design a New System of SADRA:
In this section, design a new system of SADRA is proposed that it will help
the managers and staffs to access the information easily and clear the every staff’s
jobs to do by high accuracy. This new system integrates data and gets the progress
report of each discipline of each project and gets the total Daily, Weekly and
monthly Progress of each discipline and each project and whole yard also.
The new work flow, this study suggests the virtual organization for Sadra
because each project needs differences skill so the old structure not suitable and
have many problems in human resource management. For new work flow design
will set up team by skill and can using resource cross team to work together in new
project as Figure 27 – Modified work structure of Sadra Company.
The new system design, include 4 steps which are:
1. Explain Data Flow Diagram of the new system (DFD).
2. Explain Work Flow of the new system.
3. Design Database and explain Entity relationship Diagram (ERD).
4. Design and Explain interfaces for new system.
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4.9.1 Descriptions of Data Flow Diagram of the new system (DFD):
This diagram shows the automated flow of data. Main data are conveyed by
the CEO to the planning Department, where they will be processed and tallied
before being delivered to the engineering and operations departments. The
engineering department prepares information on work orders and MIVs and after
having them approved by the planning department sends them to the Operations
again. The operations department transfers the data pertinent to raw materials to the
warehouse through the MIV, and after the completion of works, conveys pertinent
data to the QC Department, for inspection.
It is important to note that in the new system, data will be classified such that
only those useful to each department, stage or discipline will be accessible to the
pertinent team.
As a result a homogenous information system will be provided for
production lines at Sadra, founded completely on the understanding and justification
of ERP, assisted by Work Flow System. (See Figure 4.13)
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Figure 4.13: Data Flow Diagram (DFD) of New System
93
4.9.2 Work Flow of New System:
Here as illustrated in the diagram below, the new work flow has been
displayed with a defined hierarchy and priority in procedures. (See Figure 4.14)
Figure 4.14: Work Flow Diagram of New System
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4.9.3 Database and Entity Relationship Diagram (ERD):
In this section design a database for new system by using Access software
and drawing the Entity relationship Diagram (ERD) of the new system is proposed
(See Figure 4.15).
Figure 4.15: Entity Relationship Diagram
4.10 Calculate the Progress Report:
As previously explained each project contains a number of phases, each of
which involves all of the seven disciplines explained throughout this work. Through
this stage it will be possible to evaluate the monthly output of each discipline
through each phase of every project, by means of a concise monthly report (See
Figure 4.16).
.
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Figure 4.16: Monthly Progress Report
CHAPTER 5
SYSTEM DESIGN, IMPLEMENTATION AND TESTING
5.1
Introduction
This chapter explains the whole system development processes based on the
previous system planning and analysis. It includes the installation of the required
software, database development, user interface development and program
development. Database development is started once the installation of the required
software has been done. The database is developed according to the identified input
data where the tables are designed based on the input forms in the system. User
interface development is carried out steps by steps based on the modules that have
been designed. Program development is carried out together with user interface
development.
Implementation involves transforming the analysis and design of the system
into executable forms. For system implementation, Visual Basic .Net has been used
in developing the program. The database used in this system is Microsoft Access.
In this section, the source code of system for each main module will be discussed.
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5.2
User Interface Design
Interface design is vital in an information system design process. User
interface is the intermediary between the system and the user. The purpose of a user
interface is to display and obtain needed information in an accessible manner.
Basically, user interface consists of text, graphic and control objects such as drop
box, button, radio button, text boxes, check boxes and hyperlink. These control
objects controls the interaction between user and the system itself. The following
figure 4.3 shows the overall hierarchy of the system user interface of the developed
system of the Discipline Based Manufacturing Information System for Ship
Construction Company.
5.3
Example of System Input and Output
Figure 5.1 shows the main interface of the developed prototype of the discipline
based manufacturing information system. Different buttons will bring staffs to
different components of the system.
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Figure 5.1: Main Interface
Figure 5.2: Business Unit Master
Figure 5.2 shows the interface for Business Unit Master. In this interface,
staffs are able to define details related to business unit master such as business unit
number, business unit name, status, effective date and expire date. The interface also
allows users to add new business unit master, save business unit master or delete
existing business unit master.
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Figure 5.3: City Selection
Figure 5.3 shows the interface for City selection to search for staffs based on
city and city code. The interface also allows users to add new city, save city or
delete existing city.
Figure 5.4: Department
Figure 5.4 shows the interface for department selection. Staffs are able to
view details of different departments, add new department, save department or
delete existing department. Staffs are required to define department code,
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department name, manager code, manager name, effective date, expire date and
status.
Figure 5.5: Employee
Figure 5.5 shows the interface for Employee selection. In this interface,
staffs are able to add new employee, save newly added employee or delete existing
employee. Staffs are required to enter employee details such as employee code, first
name, last name, date of birth, address, street, city code, city name, postal code,
department code, department name, position code, position name, home phone,
office phone, email address and marital status.
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Figure 5.6: Goods
Figure 5.6 shows the interface for Goods. Staffs are able to add new goods,
save newly added goods or delete existing goods. Staffs are required to define the
goods code, description, supplier code, supplier name, unit code, unit name and the
remaining stock of the goods.
Figure 5.7: Parts
Figure 5.7 shows the interface for parts where staffs are able to add, save or even
delete parts. Details such as part code and part name are required to be entered to
add new part.
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Figure 5.8: Position
Figure 5.8 shows the interface for position list. List of different position can be
found in this interface. To add new position, staffs are required to define and enter
position code and position name. This interface also allows staffs to add, save or
even delete position.
Figure 5.9: Project Master
Figure 5.9 shows the interface for Project Master. In this interface, chief manager is
able to define new projects, save newly added projects or even delete existing
projects. To define new project, chief manager is required to enter project code,
project name and project description. BSU code and BSU name are also required
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which can be selected from the Business Unit list. Tentative start and end date for
the project is defined, besides the actual start and end date of the project. CEO will
also add the status of the project. Chief Manager also has the ability to assign Project
Manager, Planning Manager, Engineering Manager and Operation Manager. In this
interface, attachments such as word files can also be included.
Figure 5.10: Project Planning Detail
Figure 5.10 shows the interface for project planning detail. This interface shows the
list of existing projects which have been added from the project master interface by
chief manager. In this interface, staffs are able to add new project, save newly added
project and even delete existing project.
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Figure 5.11: Project Planning
Figure 5.11 shows the interface for project planning. Manager of planning
department will define various plans for selected projects including the delivery
date, the project weight and the phase of the project.
Figure 5.12: Staff Chart
Figure 5.12 shows the interface for staff chart. In this interface, users will be able to
view the list
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Figure 5.13: Supplier
Figure 5.13 shows the interface for supplier list. In this interface, users are able to
add new supplier details such as supplier code and supplier name besides having the
ability to save newly added supplier details or even delete existing supplier.
Figure 5.14: Unit
Figure 5.14 shows the interface for unit list. In this interface, users are able to add
new unit including unit code and unit name, saving newly added unit or delete
existing unit.
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Figure 5.15: Work Order Master
Figure 5.15 shows the interface for work order master. In this interface, staffs are
able to view the list of existing work such as the project code, phase, part code, work
order number, work order description and the work order status. Staffs can also add
and save the newly added work master or even delete the existing work master.
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Figure 5.16: Job Order
Figure 5.16 shows the interface for Job Order. This interface is accessible by
clicking on the job order button in the work order master form. Staffs are able to add
new job order, save and even delete existing job order. Staffs are also able to view
the progress of the selected project or work.
Figure 5.17: Work Order Master CardCad
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The interface as shown in figure 5.17 shows the interface for work order master
CardCad. This interface allows users to upload autocad file path.
Figure 5.18: Work Order Details
Figure 5.18 shows the work order details interface where staffs will be able to view
the details of the on-going work order. Staffs are also able to add new work order,
save added work order or delete existing work order.
5.4
Database Development
Database is developed based on the outline design beforehand.
Format of the collected input forms is applied in designing the system’s database.
Each table in the database was assigned a primary key. The primary key must be
unique to serve as a connector to link one table to another. Each data was assigned a
data type and size. The system database is developed using Microsoft Access.
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5.5
Program Development
The program is developed using Microsoft Visual Basic.Net. SQL
commands are used to retrieve and manipulate data from the Microsoft Access
database.
5.6
System Testing and Evaluation
System testing and evaluation plays an important role in ensuring the
proposed system complies all of the scopes and objectives defined by the users. It is
performed also to ensure that the system does not have malfunction in obvious way.
Through system testing and evaluation, the system developer can repair errors and
improve the system as a response from the targeted users. Some of these testing such
as input and output testing are carried out from time to time so that errors can be
corrected earlier.
Testing is one of the most important phases in system development; this is to
ensure that the system is free from syntax and logical errors. Testing is a set of
activities that can be planned in advance and conducted systematically. The system’s
performance must be monitored to ensure the system really helps the intended users
in performing their task, like getting the right result every time and also helps the
system developer to determine how much the system functionality according to its
specifications which was determine in the requirement analysis. Testing involves
error identification by comparing the actually output of the system with the expected
output. System testing also accounts an actual system performance with the
proposed system in the requirement specification.
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Testing is also one of the elements of a broader topic which is often referred as
verification and validation (V&V). Verification refers to the set of activities that
ensure that system correctly implements a specific function. Validation refers to a
different set of activities that ensure that the system that has been built is traceable to
customer requirements (Pressman, 2001). According to William Howden, testing is
an unavoidable part of any responsible effort to develop a software system.
Three different testing levels that have been executed for this project which are
integration testing and user acceptance test.
5.6.1 Integration Testing
Integration testing is a systematic technique for constructing the program
structure while at the same time conducting tests to uncover errors associated with
interfacing. The main objective of integration testing is to take unit tested
components and build a program structure that has been dictated by design. Testing
involves all function in order to detect any presents of error that might be
overlooked in unit testing. Integration testing is also to ensure smooth flow of data
transfer from one module to the other.
Incremental integration is the antithesis of the non-incremental approach.
The system is constructed and tested in small increments, where errors are easier to
isolate and correct; interfaces are more likely to be tested completely; and a
systematic test approach may be applied. There are a number of different
incremental integration strategies, such as (Pressman, 2001):
1. Top-down Integration: An incremental approach to construction of
program structure. Modules are integrated by moving downward through
the control hierarchy starting with the main control module. Modules
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subordinate to the main control module are incorporated into the structure
in either a depth-first or breadth-first manner. The top down integration
strategies verifies major control or decision points early in the test process.
2. Bottom-up Integration: Begins construction and testing with components
at the lowest levels in the program structure. Processing required for
components subordinate to a given level is always available because
components are integrated from the bottom up.
3. Regression Testing: Regression testing is the re-execution of some subset
of tests that have already been conducted to ensure that changes have not
propagated unintended side effects.
4. Smoke Testing: An integration testing approach that is commonly used
when “shrink-wrapped” system are developed which means it does not
applicable to the current system. It is designed as a pacing mechanism for
time-critical projects.
5.6.2 User Satisfaction Test
For user satisfaction testing, 20 persons have been involved in trying
and testing the developed system. The 20 person that involved are requested to
assume Ship Construction Company CEOs roles and manufacturing department
staffs roles. User satisfaction questionnaire is prepared and distributed for the
respondents to evaluate the system. The questionnaire used in the user satisfaction
testing is included in appendix A. The rating scale used in the questionnaire is
shown in table 5.1.
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Table 5.1: Rating Scale for User Satisfaction Questionnaire
Rating
Strongly
Agree
Neutral
Disagree
Agree
Score
5
Strongly
Disagree
4
3
2
1
The questions in the questionnaire are divided into user interest and
acceptance, usefulness, usability, functionality and overall satisfaction. Table 5.2
shows the evaluation result for user satisfaction testing. The result is plotted on bar
graph in Figure 5.4.
Table 5.2: User Satisfaction Questionnaire Result
No.
Question
Rating Scale
5
1.
2.
User Interest and Acceptance
4.
3
2
1
4.95
a. Attactiveness
20
5
b. Good Idea
18 2
4.9
5
Usefulness
a. Effectiveness
3.
4
Mean
20
Functionality
5
4.925
a. Creating New Project
18 2
4.9
b. Employee Profile functions
17 3
4.85
c. Goods Profile functions
17 3
4.85
d. Supplier Profile functions
19 1
4.95
e. Unit Profile functions
20
5
f. Department Profile functions
20
5
Overall Satisfaction
a. Expectations
4.9
18 2
4.9
113
5.02
5
4.98
4.96
4.94
4.92
4.9
4.88
4.86
4.84
User Interest &
Acceptance
Usefulness
Functionality
Overall
Satisfaction
Figure 5.19: Average Mean of User Satisfaction Score
5.7
Conclusions
The testing task was performed throughout the development of the system,
from the earliest unit testing to detect syntax errors when the program is coded to the
final phase of testing to the intended users and to save time from correcting errors in
the later stage of project development. Some improvement has been made to ensure
the objectives are successfully achieved.
CHAPTER 6
CONCLUSION
In this project, the integrating systems had been initially discussed and stated
which are made up of two integrating systems. Then, the integration system of
enterprise resources was discussed which describes the basic requirements for the
integrated system and subsequently the data integration, application integration,
information technology role in an organization and also information technology and
its role in organizations were explained.
Next, organization’s recognition, pressure, organization’s effective
environmental factors, and organization’s supportive ring recognition in front of
environmental pressures was also considered.
In addition, two well-known systems of ERP and WFMS were generally
discussed and described that definitions of the WFMS and ERP systems were tried
to be defined clearly and unclear parts of these two systems which leads that these
two systems mistaken for each other by managers and clients were tried to be
specified completely.
After that, the scopes of this project were specified and described which
mainly the case study of this project is based on SADRA Ship Construction
Company that located in north of Iran so that by concentrating on the new working
115
system and with the aid of ERP method based on WFMS, it was tried to present a
new working structure for this company. Also, by concentrating on seven disciplines
of structure, piping, outfitting and machinery, electrical, HVAC, painting, and
architectural in the Ship Construction Company and recognition of their activities
and existing relationships and intermediaries exists between them, it was tried to
improve the existing relationships with the aim and use of ERP. Finally, with a
general comparison and by referring to some rules and principals of ERP, WMFS, it
is possible to easily observe the effective influence of new structure on productivity,
cost reduction, projects’ time duration in comparison with previous structure.
Afterwards, IS and IT systems were introduced so that their usage and
performance in different levels of management were specified. Predictions of the
requirements for optimization of the integrated systems were also discussed. Then,
the basic definition of Workflow Management System (WFMS) was explained that
recognition of processes including different working phases is the prerequisite for it.
All tasks and activities must be known and the performing personnel of them
must be specified to recognize the processes in WFMS system. Subsequently, the
existing expressions in WFMS were briefly introduced and defined. After that,
Enterprise Resource Planning (ERP) system were completely and precisely
discussed that include the concept of ERP, objectives of ERP, ERP related
definitions, and important roles of ERP in a system that how ERP can help
improving different sections of a system from the performance aspect of view.
Moreover, the time for ERP implementation in a company, ERP implementation
steps, and benefits and defects of ERP were mentioned. Principal roles in ERP
implementation and types of ERP in a general view of system before and after ERP
implementation were also reviewed.
Later, the case study was introduced which was a Ship Construction
Company in north of Iran. History of SADRA Ship Construction Company,
responsibilities, complete introduction of this company, and under construction
projects of it are the topics that has been covered in this thesis.
116
The research methodology of this thesis along with a complete diagram is a
part that has been completely discussed in this report.
In continue, SADRA Ship Construction Company was focused that all
activities of the structure, piping, electrical, outfitting and machinery, HVAC,
painting, and architectural disciplines were explained generally. Relationships and
intermediaries between them and the method of connection between them were also
mentioned that currently all the relationships between different disciplines are
manually and paper-based and intermediaries are almost human resource and
planning unit is considered as the main intermediary for relationships between
different mentioned disciplines has important role.
Current work process structure of SADRA ship Construction Company is
also described completely that professional human forces and required equipment in
SADRA are distributed in a project-oriented manner and each specific project in
SADRA allocates a large number of personnel and equipments to itself.
In the current work procedure of SADRA, planning unit is also not
distributed in an integrated way between different projects of the company and
currently reporting and project controlling systems are being done traditionally and
very normally.
Then, recognition of the relationships and intermediaries between different
disciplines, automating the between organization processes and convert the work
structure of SADRA from project oriented to discipline oriented were discussed to
analyze them.
SADRA working procedure structure modification and presenting the
suggestion for new work structure are the points that are mentioned in this thesis.
Currently, SADRA Ship Construction Company is working in a project-oriented
way, meaning that for each under execution project, a number of professional
personnel and equipments have been assigned to that project. In addition, each of
117
mentioned disciplines is working on each project that this process is being under
progress completely separately and detached from each other.
Current work procedure of SADRA has many problems along with it that the
most important one of them is lack of access to a complete information database
related to each discipline. The new suggestion for work procedure structure
modification of SADRA is stated as that to take out this company from projectoriented situation and put it in discipline oriented situation. The most important
benefit of this work is integration of information plus easy and fast access to the
information database of each discipline. However, other benefits of this new
suggestion about the working structure is completely described that are reducing the
human forces, decreasing the costs, extending the working space, better, easier and
more accurate reporting process, and avoiding the occurrence of repeated problems
in concurrent projects.
Currently, the complete structure of the company is shown in a diagram and
also the diagram of the suggested structure is demonstrated in this thesis.
By observing the new structure diagram, it can be concluded that forces and
equipments which were distributed in the form of colonies are modified to a
homogeneous unit.
Considering all above mentioned design a new system based on new
business structure proposed is in this thesis. Design the new system divided into 4
parts which are:
1. Drawing DFD and analyze the current stage of SADRA
2. Drawing DFD of new system and explain ERD.
3. Designing a database of new system
4. Designing the interfaces of new system.
5. Developing new system using Visual Basic .Net and Microsoft
Access
118
Considering all above mentioned points, all the achieved results in this thesis
are listed briefly below:
•
To analyze, evaluate, and understand the Ship Construction
Company.
•
Recognizing the relationships and intermediaries which the
concentration of this thesis was based on the relationships and
intermediaries between structure, piping, electrical, outfitting and
machinery, HVAC, painting, and architecture disciplines.
•
Automating the processes between seven mentioned disciplines.
•
Modifying the work structure of the Ship Construction Company
from project-oriented state to discipline-oriented state.
•
Design a new system of manufacturing section of ship Construction
Company which are design database and design interfaces.
Future Work:
i.
Next steps that can be done in the future for Ship Construction Company are:
ii.
Recognizing all departments and systems of the company including
financial, human resource, recruitment and recruitment, stock, support and
supply, logistic, etc. departments, analyzing them, and understanding the
relationships and intermediaries between them.
iii.
Creating intelligence intermediaries and creating completely computerized
system.
iv.
Implementing different modules of ERP in manufacturing and fabrication,
logistic, human resource, stock, financial, transportation, and recruitment
departments.
119
REFERENCES
1.
Stohr E. A. , Nickerson J. V., “Intra Enterprise Integration: Methods and
Direction“.
2.
The White Paper Series, “Enterprise Information Integration“.
3.
A. Kazerouni, M. Kazerouni, M. Shakouri Moghadam, "ERP Solution based
on Information Technology".
4.
Karbaschi H., Kholousi S., "Investigation of Workflow Management Systems
and IDEF role Definition in Its Definition Phase", Master Thesis, Iran
University of Science and Technology.
5.
W. Li, Y. Fan, "Development of ERP systems based on Workflow
management system", Proceedings of The Third International Conference on
Electronic Commerce (ICeCE2003), Hangzhou, Oct. 2003, pp. 981-984.
6.
Shamshiri M., "Workflow Management Systems”, Master Thesis and
Presentation, South Unit of Islamic Azad University.
7.
http://www.3COM.com, Technical paper, “Enterprise Resource Planning
Processes, Next-Generation Enterprise Networks Enable Next-Generation
Business Processes”.
8.
The White Paper Series, “Aligning Your Data Collection and ERP
Implementation Decisions“.
9.
Executive
Guide
to
Enterprise
Resource
Planning
–
www.netessence.com.my
10.
Jorge Cardoso1, Robert P. Bostrom and Amit Sheth11LSDIS Lab, Computer
Science Department University of Georgia
11.
Athens, GA, USA, 30602 jcardoso@uga.edu, amit@cs.uga.edu 2MIS
Department Terry College of Business University of Georgia,
120
12.
Cardoso J, Bostrom R.P, A. Sheth, “Workflow Management Systems vs. ERP
Systems: Differences, Commonalities, and Applications“.
13.
ERP Presentation – www.IRERP.com
14.
www.ic.gc.ca
15.
www.neka.sadra.ir
16.
Wortman H, Szirbik, ”ERP &WFMS Do they work together…?”
17.
Muth P, et al. “Workflow history management in virtual enterprises using a
light-weight workflow management system”. in Proceedings of the 9th
International Workshop on Research Issues in Data Engineering. 1999.
Sydney, Australia: Available at http://wwwdbs.cs.uni-sb.de/~mlite/. p. 148155
18.
Kumar
K,
Hillegersberg
J.V,
ERP
Experiences
and
Evolution.
Communications of the ACM, 2000. 43(4): p. 23-26.
19.
Rusinkiewicz, M. and Sheth A.P, “Specification and Execution of
Transactional Workflows, in Modern Database Systems: The Object Model,
Interoperability, and Beyond.” 1995, ed. W. Kim, Addison-Wesley. p. 592620.
20.
Pressman R. S. ( 2001). Software Engineering, A practitioner’s Approach.
Singapore: McGraw-Hill Inc.
121
APPENDIX A
USER SATISFACTION QUESTIONNAIRE
122
SYSTEM EVALUATION QUESTIONNAIRE
System Name: DISCIPLINES BASED MANUFACTURING INFORMATION
SYSTEM FOR SHIP CONSTRUCTION COMPANY
Respondents Name: ___________________________________________________
Date: _______________________________________________________________
Job Title:
____________________________________________________________
Years in present position?
< 1 year
1 year
< 3 years
3 years
<5 years
>5 years
INSTRUCTIONS
Please circle your response to the items. Rate aspects of the workshop on a 1 to 5
scale:
1 = "Strongly disagree," or the lowest, most negative impression
3 = "Neither agree nor disagree," or an adequate impression
5 = "strongly agree," or the highest, most positive impression
Choose N/A if the item is not appropriate or not applicable to this system.
Your feedback is sincerely appreciated. Thank you.
System usage feather (Circle your response to each item.)
1=Strongly disagree
2=Disagree
3=Neither agree nor disagree
4=Agree
5=Strongly agree
123
1
The system presented was attractive and the idea
5
4
3
2
1
5
4
3
2
1
5
4
3
2
1
5
4
3
2
1
5
4
3
2
1
is good.
2
The system was well achieved the proposed
objectives.
3
This system lived up to my expectations as a
respondent.
4
The functionality of the system met the
requirement of Discipline Based Manufacturing
Information System
5
The system was reliability, without functional
error.
11. Can you give some comment on this system?
12. What other improvements would you recommend for this system?
13. What are the most valuable business aspects of this system?