Engineering

Management

Systems Engineering
Management

MSE607B
Chapter 7
Organization for System Engineering

Learning Objectives
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

Developing the Organizational

Structure
Must

start by determining the goals and objectives for

the overall company involved
The functions and tasks that must be accomplished

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

Customer, Producer, and Supplier

Relationships

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

Serve as a vehicle for communications

Serve as the formal approval of design data

Customer Organization and

Functions

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 customers organizational structure
The industrial firm or the producers 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

Producer Organization and Functions

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 contractors organizational
structure.
Structures may vary from the pure functional to the project,
the combined project-functional, the matrix, and so on

Producer Organization - Traditional

Functionally Oriented Structure

Functional Organization Structure

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
Depth

of the individual elements of the organization will

vary with type of project and level of emphasis required

There

are advantages and disadvantages associated with

the pure functional approach

Advantages of A Functional
Organization

Enables development of a better technical capability

for the organization
Specialists grouped to share knowledge

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

Budgeting and cost control are easier because of the

centralization of areas of expertise.
Easier to estimate, monitor and control costs

The channels of communication are well established

There is no question as to who is the boss

Disadvantages of A Functional
Organization
It

is difficult to maintain an identity with a specific

project
No single individual is responsible for the total project

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
Because

of group orientation, there is less personal

motivation to excel
Innovation concerning generation of new ideas is
lacking

Product-Line/Project
Organization Structure
Company ABC

Product
Line
X

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

Program Management
Systems Engineering
Electrical Engineering
Mechanical Engineering
Reliability Engineering
Maintainability Engineering
human Factors
Components Engineering
Integrated Logistic Support (ILS)

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

Advantages of Project/Product Line

Organization
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

Disadvantages of Project/Product
Line Organization
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 individuals career, growth
potential, and opportunities for promotion are often
not as good

Matrix Organization Structure

Company DEF

Project
Management

Systems
Engineering

Project B

Project C

Project D

Functional Responsibility

Program Management
Planning and Scheduling
Configuration Management
Data Management
Supplier Management
Project Review and Control

Design
Assurance
(R/M/HF)

Integrated
Logistics
Support

Project Responsibility

Project A
Program Manager

Design
Engineering

Software
Engineering

Production
and
Test

Objectives of Matrix Organization

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.

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

Advantages of A Matrix Organization

Project manager can provide the necessary strong
controls
Functional organizations exist primarily as support for
projects

Strong technical capability developed and made available

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

Disadvantages of A Matrix
Organization

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

Functional Organization
Structure Showing IPPD/IPTs

Integrated Product and Process

Development (IPPD)
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
Directly

through

detail

design

and

inline with system engineering objectives

To cause integration of the various features of design

and the organizations involved in the design process

Integrated Product/Process Teams

(IPTs)

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

System Engineering Organization

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

Producer Organization
Combined Project - Functional Structure

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

Major System Engineering Communication

Links - Producer Organization
Company HIJ

Engineering

Business

Marketing and Sales

Finance and accounting
Purchasing
Human Resources
Contract Management

Support

Manufacturing Engineering
Production
Fabrication
Inspection and Test
Modifications
Quality Assurance

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

Program Management
Scheduling/Coordination
Configuration Management
Data Management
Supplier Management

Design Engineering

System Engineering

System Requirements
System Specification
System Analysis
System Integration &Test
Design Review (s)

Electrical Design
Mechanical Design
Materials Engineering
Structural Design
Components Engineering

Design Assurance

Reliability
Maintainability
Logistics Engineering
human Factors
Value Engineering

Computer Aided
Design
Documentation

Software Engineering

Operating Software
Maintenance Software
Production and Test Software
Software Validation

Design Standardization
Computer Applications
CAM/CALS Interface
Customer/Supplier Interface

Large-scale Supplier Organization

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 suppliers 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

Human Resource Requirements

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:

Creating the organizational environment

Leadership characteristics
The needs of the individual
Staffing the organization
Personnel development and training

Creating the Organizational Environment

The study of organizations should address Structure,

Processes, and Culture.
Structure is the formal pattern of how an organizations 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.

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

Leadership Characteristics
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

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 ones
full potential

Staffing the Organization

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

Personnel Development and Training

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

Personnel Development and Training

(Cont)
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

Summary
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

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

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

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

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

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

Homework Assignment
Chapter

7 Textbook page 377

Answer questions 1, 3, 4, 9, and 16.

Read

Chapter 8 - Engineering Program Planning

Pages 379-391

Questions? Comments?