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Computer-aided lean management, in business management, is a methodology of developing and using software-controlled, lean systems integration. Its goal is to drive innovation towards cost and cycle-time savings. It attempts to create an efficient use of capital and resources through the development and use of one integrated system model to run a business's planning, engineering, design, maintenance, and operations.
Computer-Aided Lean Management (CALM) is a management philosophy that uses software to reduce risk and inefficiencies. CALM acts on uncertainties and business inefficiencies to increase profitability through the use of computational decision-making tools that enable opportunities for additional value creation. It is based on the application of software to enable continuous improvement through an Integrated System Model (ISM) of the business’s physical assets, business processes, and machine learning. This integration of software applications using lean principles was developed in the aerospace industry and has migrated to the energy industry.
The creation of an ISM removes the barriers posed by the silos or stovepipes inherent in the departmentalization of most companies. Integration enables lean uses of information for the creation of actionable knowledge. CALM strives to create such a lean management approach to running the company through the rigors of software enforcement. From this software enforcement comes clear policy and procedures that are adhered to, activity-based costing, measurement of effectiveness, and the capability of using advanced algorithms for dramatic improvements in optimization of resources. CALM creates business capabilities through software to enable technology application, streamlining of processes, and a lean organizational structure. The methodology is based on a common sense approach for running a business, by measuring actions taken and using those measurements to design more efficient processes.
CALM was inspired by lean processes and techniques that were already dominant management technologies with a wide diversity of applications and successes. Motorola and General Electric had been known for the concepts of Six Sigma; Boeing had been managing mass (using modular and flexible assembly options), and Toyota combined elements of these methodologies to create the Toyota Production System. Boeing then took the Toyota model and added computer-aided enforcement of lean methodologies throughout the manufacturing process.
One of the major sources for CALM's outgrowth was integrated definition (IDEF) modeling in aerospace manufacturing that was pioneered by the U.S. Air Force in the 1970s. IDEF is a methodology designed to model the end-to-end decisions, actions, and activities of an organization or system so that costs, performance, and cycle times can be optimized. IDEF methods have been adapted for wider use in automotive, aerospace, pharmaceuticals, and software development industries. IDEF methods serve as a starting point to understand lean management through semantic data modeling. The IDEF process begins by mapping the existing functions of an enterprise, creating a graphical model, or road map, that shows what controls each important function, who performs it, what resources are required for carrying it out, what it produces, how much it costs, and what relationships it has to other functions of the organization. IDEF simulations have been found to be efficient at streamlining and modernizing both companies and governmental agencies.
Perhaps the best-developed evolution of the IDEF model beyond Toyota was at Boeing. Their project life-cycle process has grown into a rigorous software system that links people, tasks, tools, materials, and the environmental impact of any newly planned project, before any building is allowed to begin. Routinely, more than half of the time for any given project is spent building the precedence diagrams, or three-dimensional process maps, integrating with outside suppliers, and designing the implementation plan–all on the computer. Once real activity is initiated, an action tracker is used to monitor inputs and outputs versus the schedule and delivery metrics in real time throughout the organization. When the execution of a new airplane design begins, it is so well organized that it consistently cuts both costs and build time in half for each successive generation of airframe. Boeing created a complex lean management process called 'define and control airplane configuration/manufacturing resource management' (DCAC/MRM). The process was built with the help of the operations research and computer sciences departments of the University of Pittsburgh. The manufacture of the Boeing 777 was ultimately a success, and it became the precursor to succeeding generations of CALM at Boeing.
The methodology of CALM has recently[ when? ] been applied to field orientated infrastructure based businesses with highly interdependent systems, such as electric utilities where a smart grid concept is being researched and developed. The management of infrastructure-based industries like oil, gas, electricity, water, transportation, and renewables requires massive investments in interdependent, physical infrastructure, as well as simultaneous attention to disparate market forces. In infrastructure businesses that manage field assets, uncertainty is the biggest impediment to profitability, rather than the maintenance of efficient supply chains or the management of factory assembly lines. These businesses are dominated by risk from uncertainties such as weather, market variations, transportation disruptions, government actions, logistic difficulties, geology, and asset reliability. CALM has been applied to deal with these types of infrastructure based challenges.
Lean manufacturing is a method of manufacturing goods aimed primarily at reducing times within the production system as well as response times from suppliers and customers. It is closely related to another concept called just-in-time manufacturing. Just-in-time manufacturing tries to match production to demand by only supplying goods that have been ordered and focus on efficiency, productivity, and reduction of "wastes" for the producer and supplier of goods. Lean manufacturing adopts the just-in-time approach and additionally focuses on reducing cycle, flow, and throughput times by further eliminating activities that do not add any value for the customer. Lean manufacturing also involves people who work outside of the manufacturing process, such as in marketing and customer service.
Software development is the process of designing and implementing a software solution to satisfy a user. The process is more encompassing than programming, writing code, in that it includes conceiving the goal, evaluating feasibility, analyzing requirements, design, testing and release. The process is part of software engineering which also includes organizational management, project management, configuration management and other aspects.
IDEF, initially an abbreviation of ICAM Definition and renamed in 1999 as Integration Definition, is a family of modeling languages in the field of systems and software engineering. They cover a wide range of uses from functional modeling to data, simulation, object-oriented analysis and design, and knowledge acquisition. These definition languages were developed under funding from U.S. Air Force and, although still most commonly used by them and other military and United States Department of Defense (DoD) agencies, are in the public domain.
In industry, product lifecycle management (PLM) is the process of managing the entire lifecycle of a product from its inception through the engineering, design and manufacture, as well as the service and disposal of manufactured products. PLM integrates people, data, processes, and business systems and provides a product information backbone for companies and their extended enterprises.
Computer-aided software engineering (CASE) is a domain of software tools used to design and implement applications. CASE tools are similar to and are partly inspired by computer-aided design (CAD) tools used for designing hardware products. CASE tools are intended to help develop high-quality, defect-free, and maintainable software. CASE software was often associated with methods for the development of information systems together with automated tools that could be used in the software development process.
Integrated Computer-Aided Manufacturing (ICAM) is a US Air Force program that develops tools, techniques, and processes to support manufacturing integration. It influenced the computer-integrated manufacturing (CIM) and computer-aided manufacturing (CAM) project efforts of many companies. The ICAM program was founded in 1976 and initiative managed by the US Air Force at Wright-Patterson as a part of their technology modernization efforts. The program initiated the development a series of standards for modeling and analysis in management and business improvement, called Integrated Definitions, short IDEFs.
A functional software architecture (FSA) is an architectural model that identifies enterprise functions, interactions and corresponding IT needs. These functions can be used as a reference by different domain experts to develop IT-systems as part of a co-operative information-driven enterprise. In this way, both software engineers and enterprise architects can create an information-driven, integrated organizational environment.
Enterprise integration is a technical field of enterprise architecture, which is focused on the study of topics such as system interconnection, electronic data interchange, product data exchange and distributed computing environments.
Computer-integrated manufacturing (CIM) is the manufacturing approach of using computers to control the entire production process. This integration allows individual processes to exchange information with each part. Manufacturing can be faster and less error-prone by the integration of computers. Typically CIM relies on closed-loop control processes based on real-time input from sensors. It is also known as flexible design and manufacturing.
IDEF0, a compound acronym, is a function modeling methodology for describing manufacturing functions, which offers a functional modeling language for the analysis, development, reengineering and integration of information systems, business processes or software engineering analysis.
Integration DEFinition for information modeling (IDEF1X) is a data modeling language for the development of semantic data models. IDEF1X is used to produce a graphical information model which represents the structure and semantics of information within an environment or system.
DELMIA, a brand within Dassault Systèmes, is a software platform designed for use in manufacturing and supply chain professionals. It offers various tools encompassing digital manufacturing, operations, and supply-chain management, including simulation, planning, scheduling, modeling, execution, and real-time operations management.
Enterprise modelling is the abstract representation, description and definition of the structure, processes, information and resources of an identifiable business, government body, or other large organization.
An integration competency center (ICC), sometimes referred to as an integration center of excellence (COE), is a shared service function providing methodical data integration, system integration, or enterprise application integration within organizations, particularly large corporations and public sector institutions.
Enterprise engineering is the body of knowledge, principles, and practices used to design all or part of an enterprise. An enterprise is a complex socio-technical system that comprises people, information, and technology that interact with each other and their environment in support of a common mission. One definition is: "an enterprise life-cycle oriented discipline for the identification, design, and implementation of enterprises and their continuous evolution", supported by enterprise modelling. The discipline examines each aspect of the enterprise, including business processes, information flows, material flows, and organizational structure. Enterprise engineering may focus on the design of the enterprise as a whole, or on the design and integration of certain business components.
IDEF3 or Integrated DEFinition for Process Description Capture Method is a business process modelling method complementary to IDEF0. The IDEF3 method is a scenario-driven process flow description capture method intended to capture the knowledge about how a particular system works.
Lean IT is the extension of lean manufacturing and lean services principles to the development and management of information technology (IT) products and services. Its central concern, applied in the context of IT, is the elimination of waste, where waste is work that adds no value to a product or service.
In software engineering, a software development process or software development life cycle (SDLC) is a process of planning and managing software development. It typically involves dividing software development work into smaller, parallel, or sequential steps or sub-processes to improve design and/or product management. The methodology may include the pre-definition of specific deliverables and artifacts that are created and completed by a project team to develop or maintain an application.
Lean integration is a management system that emphasizes creating value for customers, continuous improvement, and eliminating waste as a sustainable data integration and system integration practice. Lean integration has parallels with other lean disciplines such as lean manufacturing, lean IT, and lean software development. It is a specialized collection of tools and techniques that address the unique challenges associated with seamlessly combining information and processes from systems that were independently developed, are based on incompatible data models, and remain independently managed, to achieve a cohesive holistic operation.
Purdue Enterprise Reference Architecture (PERA), or the Purdue model, is a 1990s reference model for enterprise architecture, developed by Theodore J. Williams and members of the Industry-Purdue University Consortium for Computer Integrated Manufacturing.