Engineering
Management
Systems Engineering
Management
MSE607B
Chapter 7
Organization for System Engineering
Learning Objectives
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Explain the basic philosophy of design evolution
Explain the different types of organizational structures
Discuss advantages and disadvantages of each
structure from a generic perspective
Emphasize the system engineering organization, its
functions, organizational interfaces, and the staffing
needed
Explain the implementation of Integrated Product and
Process Development (IPPD) configuration
Explain customer, producer, and supplier relationships
Discuss human resources requirements
2
Developing the Organizational
Structure
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Must start by determining the goals and objectives for
the overall company involved
• The functions and tasks that must be accomplished
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Depending on program complexity/size may assume
a pure functional model, a project or product line
orientation, a matrix approach, or combination thereof
Structure may change in context as the system
development evolves
The ultimate goal is to achieve the most effective
utilization of human, material, and monetary
resources
3
Customer, Producer, and Supplier
Relationships
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A formal mechanism to ensure design will meet stated
consumer need
Design evolves through iterations from initial definition to firm
system configuration
Requirements verification process required from the beginning
Early detection of potential problems allows to incorporate
necessary changes easily
An ongoing design review and evaluation effort is required
Overall review process through a combination of several
approaches:
• Informal day-to-day review and evaluation as design decisions are
made and data developed.
• Formal design reviews at designated stages in the evolution of
design
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Serve as a vehicle for communications
 Serve as the formal approval of design data
4
Customer Organization and
Functions
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Range from one or small group of individuals to an industrial firm
Customer may be ultimate user or procuring agency for a user
Must recognize objectives from the beginning
• Organizational entity needs to be established
System engineering may be accomplished within:
• The customer’s organizational structure
• The industrial firm or the producer’s organizational structure
May be any combination of models with split responsibilities
• Customer must clarify system objectives and program functions
• Requirements for system engineering must be well defined
When delegated to the producer, customer must completely
support
Need to prepare a good, comprehensive, clear Statement of Work
5
Producer Organization and Functions
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The producer will undertake the bulk of the system
engineering activities
 Need to have access to all information and data leading to
the requirements specified in the RFP and IFB
 The main objective is to ensure continuity in the transition
from the activities accomplished by the customer to those
to be performed by the contractor
 This transition process is one of the most critical points in
a program.
 The specification and SOW must be complete
 The next step to address is the contractor’s organizational
structure.
 Structures may vary from the pure functional to the project,
the combined project-functional, the matrix, and so on
6
Producer Organization - Traditional
Functionally Oriented Structure
7
Functional Organization Structure
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The intent is to perform similar activities within one
organizational component
Well suited for a single project operation, large of small.
For example,
• All engineering work would be the responsibility of one
executive
• All production or manufacturing work would be the
responsibility of another executive, and so on
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Depth of the individual elements of the organization will
vary with type of project and level of emphasis required
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There are advantages and disadvantages associated
with the pure functional approach
8
Advantages of A Functional
Organization
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Enables development of a better technical capability
for the organization
• Specialists grouped to share knowledge
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The organization can respond more quickly to a
specific requirement through the careful assignment
of personnel
• Larger number of personnel with required skills in given
area
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Budgeting and cost control are easier because of the
centralization of areas of expertise.
• Easier to estimate, monitor and control costs
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The channels of communication are well established
• There is no question as to who is the “boss”
9
Disadvantages of A Functional
Organization
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It is difficult to maintain an identity with a specific
project
• No single individual is responsible for the total project
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Concepts and techniques tend to be functionally
oriented with little regard for project requirements
There is little customer orientation or focal point.
• Response to specific customer needs is slow
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Because of group orientation, there is less personal
motivation to excel
• Innovation concerning generation of new ideas is
lacking
10
Product-Line/Project
Organization Structure
Company ABC
Product
Line
“X”
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Program Management
Systems Engineering
Electrical Engineering
Mechanical Engineering
Reliability Engineering
Maintainability Engineering
human Factors
Components Engineering
Integrated Logistic Support (ILS)
Product
Line
“Y”
•
•
•
•
•
•
•
•
•
Program Management
Systems Engineering
Electrical Engineering
Mechanical Engineering
Reliability Engineering
Maintainability Engineering
human Factors
Components Engineering
Integrated Logistic Support (ILS)
Product
Line
“Z”
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•
•
•
•
•
•
•
•
Program Management
Systems Engineering
Electrical Engineering
Mechanical Engineering
Reliability Engineering
Maintainability Engineering
human Factors
Components Engineering
Integrated Logistic Support (ILS)
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Product-line organization with Project
Subunits
President
Company ABC
Vice President
Engineering
Director
Director
Director
Product Line “X”
Communications
Systems Division
Product Line “Y”
Transportation
Systems Division
Product Line “Z”
Test and Support
Systems Division
Manager
Manager
Manager
Project “A”
Project “B”
Project “C”
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Advantages of Project/Product Line
Organization
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The lines of authority and responsibility for a given
project are clearly defined.
There is a strong customer orientation, a company
focal point is readily identified
Personnel assigned to the project generally exhibit a
high degree of loyalty to the project
The required personnel expertise can be assigned
and retained exclusively on the project
There is a greater visibility relative to all project
activities.
• Cost, schedule and performance can be easily
monitored
13
Disadvantages of Project/Product
Line Organization
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The application of new technologies tends to suffer
without strong functional groups
Usually duplication of effort, personnel, and use of
facilities and equipment
From a managerial perspective, it is difficult to
effectively utilize personnel in the transfer from one
project to another
The continuity of an individual’s career, growth
potential, and opportunities for promotion are often
not as good
14
Matrix Organization Structure
Company DEF
Project
Management
Systems
Engineering
Integrated
Logistics
Support
Software
Engineering
Production
and
Test
Functional Responsibility
Program Management
Planning and Scheduling
Configuration Management
Data Management
Supplier Management
Project Review and Control
Design
Assurance
(R/M/HF)
Project Responsibility
Project “A”
Program Manager
•
•
•
•
•
•
Design
Engineering
Project “B”
Project “C”
Project “D”
15
Objectives of Matrix Organization
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Managers and workers alike must be committed to
the objectives if matrix management, as follows:
• Good communication channels must be accomplished
to allow for a free and continuing flow of information
• Both project and functional department managers
should participate in the initial establishment of
companywide and program-oriented objectives
• A quick and effective method for conflict resolution must
be established to be used in the event of disagreement.
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For personnel assigned to a project, project and the
functional department manager should agree on
• Duration of assignment
• The tasks to be accomplished
• The basis on which the individuals will be evaluated
16
Advantages of A Matrix Organization
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Project manager can provide the necessary strong
controls
Functional organizations exist primarily as support for
projects
• Strong technical capability developed and made
available
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Authority and responsibility for task accomplishment
shared between project manager and functional
manager
Key personnel can be assigned to work on a variety
of problems
• More effective utilization of technical personnel
• Program costs can be minimized
17
Disadvantages of A Matrix
Organization
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A major disadvantage relates to the conflicts that arise on a
continuing basis as a result of power struggle among project
and functional managers
Each project organization operates independently
• Possible duplication of efforts
May be more costly in terms of administrative requirements
• Both projects and functional areas require similar
administrative controls
The balance of power between the project and the functional
organizations must be clearly defined and closely monitored
From perspective of worker - a split in the chain of command
• Individual “pulled” between project boss and functional
boss
18
Functional Organization
Structure Showing IPPD/IPTs
19
Integrated Product and Process
Development (IPPD)
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A management technique that simultaneously
integrates all essential acquisition activities through
use of multidiscipline teams to optimize the design,
manufacturing, and support process
Promotes communications and integration of key
functional areas as they apply to various phases of
program activity
• From conceptual
development

through
detail
design
and
Directly inline with system engineering objectives
• To cause integration of the various features of design
and the organizations involved in the design process
20
Integrated Product/Process Teams
(IPTs)
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May be established to investigate a specific segment of design,
a solution for some outstanding problem, design activities that
have a great impact on a high-priority TPM, and so on
The objectives of IPTs are:
• To create a team of qualified individuals that can effectively
work together to solve some problem in response to a given
requirement
• To provide necessary emphasis in critical areas and to reap
the benefits of a team approach in arriving at the best
solutions
The objectives of the team must be clearly defined
• Team must maintain a continuous “up-the-line”
communication
Longevity of IPT depend on nature of problem and the
effectiveness of the team
21
System Engineering Organization
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Function of system engineering must be oriented to
the objective of bringing a system into being in an
effective and efficient manner
Nature of the system engineering function require the
existence of good communication channels
Successful fulfillment of system engineering
objectives requires
• specification of technical requirements for the system
• Conductance of trade-off studies,
• Selection of appropriate technologies, and so on
22
Producer Organization
Combined Project - Functional Structure
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Producer Organization – Work Flow
Company KLM
Administration
Engineering
Production
Support
Administration
Engineering
Production
Staff Activities
Company KLM
Company KLM
Request
for
Support
Company KLM
Company KLM
Completed
Tasks
Company KLM
Company KLM
Company KLM
24
Major System Engineering Communication
Links - Producer Organization
Company HIJ
Engineering
Business
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Marketing and Sales
Finance and accounting
Purchasing
Human Resources
Contract Management
C
B
A
Support
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Manufacturing Engineering
Production
Fabrication
Inspection and Test
Modifications
Quality Assurance
D
Project “Y”
(Program Manager)
Project “X”
Integrated Logistic Support
Logistic Support Analysis
Support Equipment
Spare/Repair Parts
Technical Publications
Training/Equipment
Transportation and Distribution
Customer Service
Operations
Project “Z”
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E
Program Management
Scheduling/Coordination
Configuration Management
Data Management
Supplier Management
F
Design Engineering
System Engineering
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System Requirements
System Specification
System Analysis
System Integration &Test
Design Review (s)
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Electrical Design
Mechanical Design
Materials Engineering
Structural Design
Components Engineering
Design Assurance
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Reliability
Maintainability
Logistics Engineering
human Factors
Value Engineering
Computer Aided
Design
Documentation
Software Engineering
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Operating Software
Maintenance Software
Production and Test Software
Software Validation
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Design Standardization
Computer Applications
CAM/CALS Interface
Customer/Supplier Interface
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Large-scale Supplier Organization
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Supplier Organization and Functions
“Supplier” refers to organizations that provide various materials
and/or services to the producer
 System engineering capability extended as identifiable function
within the supplier’s organization. Supplier functions may
include:
• Conduct feasibility studies and define specific design criteria
• Prepare a supplier engineering plan or equivalent
• Accomplish synthesis, analysis, and trade-off studies
• Accomplish coordination and integration of design activities
• Prepare and implement test and evaluation plan
• Participate in design reviews and critical design reviews
• Review and evaluate proposed design changes
• Initiate and maintain liaison with production activities
• Initiate and maintain liaison with the producer
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Human Resource Requirements
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In considering organizational elements in system
engineering, it is necessary to address the human
resources requirements
Certain common objectives that should be met from
the employer/employee standpoint:
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•
•
•
•
Creating the organizational environment
Leadership characteristics
The needs of the individual
Staffing the organization
Personnel development and training
28
Creating the Organizational Environment
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The study of organizations should address Structure,
Processes, and Culture.
• Structure is the formal pattern of how an organization’s people and
jobs are grouped.
• Processes are activities that give life to the organization chart
• Culture defines appropriate behavior and bonds, motivates
individuals, and governs the way a company processes
information, internal relation, and values.
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Personnel selected for system engineering must be highly
professional
 The system engineering group must have “vision” and be
creative
 A teamwork approach must be initiated within the group
 A high degree of communication must prevail
29
Leadership Characteristics
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The organization is a group of individuals with varying
abilities, different roles and expectations, diverse
personal goals, and distinct behavioral patterns
The challenge for the manager is to integrate the
various characteristics into a cohesive force
Recognize personal characteristics of each individual to
better match with job requirements
Inspire each individual to excel in his or her job by
creating an atmosphere of personal interest
Be sensitive to employee problems related to their work
Evaluate employees on a personal basis
Initiate rewards promptly when warranted
Promotions and merit raises directed to best performers
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The Needs of the Individual
1.
2.
The physiological needs, such as thirst, hunger, sex,
sleep, and activity
- the needs of the body
The safety and security needs
- protection against danger, threat, and deprivation
3.
4.
5.
The need for love and esteem by others, or social
needs
The need for self-esteem and self-respect, and the
respect of others
The need for self-fulfillment or the achieving of one’s
full potential
31
Staffing the Organization
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Requirements for staffing an organization initially stem
from results of the system engineering planning
activity
An entry-level system engineer should have the
following skills:
• Basic formal education at undergraduate and graduate
levels in some field of engineering.
• High level of general technical competence in engineering
fields
• Relevant design experience in the appropriate areas of
activity
• Basic understanding of the design requirements
• Understanding of the system engineering process and tools
• Understanding of the relationships between functions
32
Personnel Development and Training
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Nearly every engineer wants to know how he or she is
doing on a day-to-day basis and what the
opportunities for growth are. The employee also
needs to know when his or her work is unsatisfactory
and improvements is desired.
Formal performance review is conducted on a
regularly scheduled basis and the ongoing informal
communications process takes place daily.
Opportunities for growth depends on
• Climate provided within the organization and actions of
the manager that allow for individual development
• The initiative on the part of the engineer to take
advantage of the opportunities provided

It is essential that individual personal growth takes
place if that department it to function effectively
33
Personnel Development and Training
(Cont)
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Manager should prepare a development plan
for each employee to allow and promote
personal development, providing a
combination of the following:
• Formal internal training designed to familiarize
the engineer with the policies and procedures
• On-the-job training through selective project
assignments
• Formal technical education and training
designed to upgrade the engineer
• A technical exchange of expertise with others in
the field
34
Summary
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Explained the basic philosophy of design evolution
Explained the different types of organizational
structures
Discussed advantages and disadvantages of each
structure from a generic perspective
Emphasized the system engineering organization,
its functions, organizational interfaces, and the
staffing needed
Explained the implementation of Integrated Product
and Process Development (IPPD) configuration
Explained customer, producer, and supplier
relationships
Discussed human resources requirements
35
Interactive Workshop

Depending on the complexity and size of a program,
the structure of a company may assume:
a)
b)
c)
d)
e)
A pure functional model
A project or product line orientation
A matrix approach
A combination of (a), (b), and (c)
Any of the above
36
Interactive Workshop

The ultimate goal of organizational structure is to
achieve:
a) The most effective utilization of human, material,
and monetary resources in accomplishing the
functions that are required
b) The most effective organization to compete with
other companies in accomplishing the functions that
are required
c) To make sure that management positions have
maximum authority and power
d) None of the above
37
Interactive Workshop

One of the advantages of pure functional
organizational model is:
a) Authority and responsibility for task accomplishment
shared between project manager and functional
manager
b) The organization can respond more quickly to a
specific requirement through the careful assignment of
personnel
c) Personnel assigned to the project generally exhibit a
high degree of loyalty to the project
d) None of the above
38
Interactive Workshop

IPTs are created for the purpose of:
a) To effectively work together to solve some problem in
response to a given requirement
b) To provide necessary emphasis in critical areas and
to reap benefits of a team approach in arriving at the
best solutions
c) To create a team and demonstrate “teamwork” is
practiced in the organization
d) Both (a) and (b) are correct
39
Interactive Workshop

In considering organizational elements in system
engineering, it is necessary to address:
a)
b)
c)
d)
The personalities of senior management
The system functional requirements
The human resources requirements
The functional baseline of the system
40
Homework Assignment

Chapter 7 – Textbook page 377
• Answer questions 1, 3, 4, 9, and 16.

Read Chapter 8 - Engineering Program Planning
• Pages 379-391
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Questions? Comments?
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