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This section contains the following:
Copyright © 1971-2005 by
M. Bryce & Associates
Palm Harbor, Florida, USA
All rights reserved.
The purpose of this activity is to define and/or modify as required the logical model of the enterprise, in part or in full. Depending on the scope of the project, this activity may be used to define or modify the entire enterprise or for a single area within it (e.g., income, administer resources, outcome).
OVERVIEW
This activity represents the steps required to perform
"Enterprise Decomposition," the EEM technique for defining
the logical structure of the enterprise.
As was defined in the Methodology Overview,
an enterprise has three basic areas of responsibility: to produce/generate income, to
administer resources, and to produce products and/or services.
These three areas represent a high level description of the
operation of the enterprise. Each can be decomposed into
more refined levels of detail. This is based on the concept
that there are Policy, Control and Operational levels of
responsibilities in an enterprise.
Operational level responsibilities are used to execute,
operate, conduct or perform routine duties; (e.g., Assemble
Product, Inventory Parts, Contact Customer, etc.)
Control level responsibilities are used to regulate
operations and implement policy decisions; (e.g., Monitor
Product Assembly, Report Project Status, Control Sales
Representatives, Control Accounts Receivables, etc.).
Policy level responsibilities are used to establish
enterprise decisions and objectives; (e.g., Establish Marketing
Objectives, Plan Budget, etc.).
Responsibilities are written using verbs and nouns to
identify the "objects" involved. Each function must be
associated with at least one "object."
The responsibilities are grouped together into a single
function based on common missions and types of responsibilities
(P/C/O). A written description of a function consists of a
SCOPE denoting the purpose and range of the responsibilities,
and a listing of each responsibility.
STRUCTURING FUNCTIONS
Functions are organized into a three tiered hierarchical
structure denoting the basic levels of responsibilities in an
enterprise (policy, control and operational). The original
high-level functions are used to represent the policy level.
Each policy level function is then divided into one or more
subordinate control functions, which is divided into one or more
operational functions.
The criteria for structuring functions is based on common
missions (income, resources, outcome), type of function (P/C/O)
and the affected objects.
As an example, consider this list of functions:
These functions can be organized into a three level
hierarchical structure like this:
Obviously this is a simple example; there could be many
functions at either the operational or control levels. However,
it does show how an area of responsibility can be decomposed
into smaller descriptions. The two policy functions are
connected via their relationship to the enterprise level which
resides over the top of both functions.
The benefits from structuring the enterprise in this manner
is that it provides a guideline for establishing a chart of
accounts for accounting purposes and can also provide the means
to establish "profit centers" in the enterprise.
Each function is then cross-referenced to external
enterprises that immediately affect them.
STEPS IN EXECUTION
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