1. «A through-life, integrated and
concurrent approach to the design,
integration and operational
management of large and complex
space infrastructures".
Dr. ing. Marco Lisi
(marco.lisi@ieee.org)

2. Page 2
Prologo
“Niuna impresa, per minima che sia,
può avere cominciamento e fine senza
queste tre cose:
cioè senza sapere,
senza potere,
senza con amore volere”.
(Anonimo fiorentino del 1300)

3. Objectives
• To recognize the importance of services in today’s
world economy (including the aerospace sector);
• To explain what a service-oriented, large and complex
system means;
• To introduce a systemic approach to the engineering of
service systems and enterprises;
• To suggest that beyond the obvious technological and
technical challenges, a service provision perspective
requires a conceptual paradigm shift much more
difficult to accept than that required by systems
engineering: moving from technologies/products to
capabilities and services;
• To propose an innovative Through-Life, Integrated,
Concurrent Engineering (TICE) approach, merging
Project Management, Systems Engineering,
Operations and Logistics.3

4. Introduction
• Services are becoming more and more important
in today’s world economy;
• Service-oriented, large and complex systems are
often critical infrastructures of our society;
• The engineering of service systems and
enterprises requires systemic approach, holistic
view, customer focus and life cycle perspective;
• New acquisition and contracting schemes are
also required;
• A service provision perspective requires a
conceptual paradigm shift: moving from
technologies/products to capabilities and
services.
4

5. 5
Projects and Systems Evolution

6. Towards a Knowledge-Based…
6

7. … and Service-Oriented Economy
7

8. What is really happening?
• On one side our final products get more
and more added value from the knowledge
embedded in them (providing knowledge
being a primary form of service);
• On the other side, customers need
comprehensive solutions to their problems
(not a car to move around, but a solution
to my mobility problems; not tools but
capabilities).
8

9. What do we mean by "service"?
• By the term “service” we mean the guaranteed and
committed delivery of a capability to a community of
potential customers/users;
• Focus on “commitment” (continued over time) and on
“customer satisfaction”;
• “Technical performance” is an essential prerequisite,
but not an objective;
• NOTA BENE: services are not alternative to (or in
competition with) technology and goods production. On
the contrary, advanced, high value-added services need
state-of-the-art technological products and systems to
be provided. Examples:
– Internet
– Wireless communication networks
– Electric power distribution infrastructure
9

10. What is a Service System?
• Service (or service-oriented) systems are
systems meant to provide value-added services
through the use of technology (mainly
information and communications and
technologies, ICT);
• A “service system” has been defined as a
dynamic configuration of people, technology,
organizational networks and shared
information (such as languages, processes,
metrics, prices, policies, and laws) designed to
deliver services that satisfy the needs, wants, or
aspirations of customers.
10

11. Characteristics of Service Systems
• Large and complex systems
• Software intensive (several million lines of code)
• Capability-based rather than product-based
• Organization and governance (human factor)
• Technical performance is a prerequisite for
production and delivery of services, not a final
objective
• In the definition of the Quality of Service (QoS),
requirements related to operations and logistics, in
addition to technical ones, assume a very high
relevance:
Reliability, Availability, Continuity Safety
Flexibility Security
Expandability Resilience
Maintainability Interoperability
11

12. 12
Why Large, Strategic and Complex Systems?
• The increasing needs of our developed society ask
for systemic solutions;
• Capabilities and services, rather than just products,
are required (e.g. not cars, trucks, trains, railways,
stations, but an integrated transportation system);
• Systems providing advanced capabilities and
services are:
 Large, i.e. geographically distributed and network-centric;
 Strategic, i.e. providing essential services and
constituting the backbone of our advanced economy;
 Complex, i.e. based on advanced technologies, highly
software-intensive and requiring sophisticated Concepts of
Operations

13. 13
Products vs. Services

14. 14
Large and Complex Systems (1/2)
• A large and complex system is a system composed
of a large number of interconnected elements,
often developed and deployed worldwide, which
interact dynamically, giving rise to emergent
properties
• Examples of complex systems for civil applications
include:
 global satellite navigation systems
 air traffic control systems
 railway control systems
 space systems such as the International Space Station or
space transportation and exploration vehicles
 surveillance, Earth observation and Homeland security
systems
 electric power distribution systems
 telecommunication systems
 complex computer networks, including Internet.

15. 15
Large and Complex Systems (2/2)
• A complex system often integrates existing
systems (or parts of them) in an overall large-scale
architecture containing a large number of
interfaces and implementing multiple modes of
operation, in a highly dynamic environment;
• Large and complex systems require extensive
logistics and maintenance support capabilities;
• Large and complex space-based systems (e.g.
Galileo) are conceived to be in service for a long
time; in this case the evolution of the system (up-
gradings and modifications) and its obsolescence
have to be taken into account from the beginning.

16. Specifying a Service System
• Functional and technical performance:
 System Requirements Document (SRD)
• Operational requirements and scenarios:
 Concept of Operations (CONOPS) document
• Expected service behavior and non-functional
performance:
 Service Level Agreement (SLA)
• A typical SLA defines Key Performance Indicators (KPI’s)
and Key Quality Indicators (KQI’s), with target values and
target ranges to be achieved over a certain time period.
16

17. 17
Concept of Operations (CONOPS)

18. New Procurement Approach
• Current systems engineering, project
management and acquisition practices still rely
on their historical hardware engineering and
acquisition legacy;
• Product-oriented, fixed-price, build-to-
specification contracts give the illusion of a
delivery within the allocated budget, but usually
result in cost and schedule overruns;
• Many projects have difficulties integrating
hardware, software and human factor aspects;
• Many projects fail to capture (and optimize) in
their acquisition processes the multifaceted
aspects of the systems they try to realize.
18

19. Life Cycle Multiple Perspectives
19

20. Page 20
Il modello a “V” del “Systems Engineering”

21. Page 21
Il “V-model” integrato con le attività di PM

22. Through-Life Capability Management
• Through-Life Capability Management (TLCM) is an
approach to the acquisition and in-service
management of a capability over its entire life-
cycle, from cradle to grave;
• TLCM means evaluating a capability not just in the
terms of a single piece of equipment, but as a
complete system or “system of systems”;
• TLCM recognizes the value of concurrent
engineering, being aware that the initial purchase
cost (and risk) of a system is only a small fraction
of the total cost of procurement;
• The adoption of a TLCM approach implies the
evaluation of all the costs involved in the
utilization of a capability over its entire life-cycle,
a.k.a. Total Cost of Ownership.
22

23. Total Cost of Ownership
• Operators, including government establishments
and commercial entities, are emphasizing reduced
total cost of ownership of large and complex space
systems;
• The Total Cost of Ownership (TCO) approach asks
for cost trade-off’s throughout the total life cycle;
• An optimum balance must be found between non-
recurring (CAPEX) development and integration
costs and operating (OPEX) costs;
• Scalable architectures, design for reliability/
maintainability/supportability, interface
standardization (physical and protocol levels) and
SOA (Service-Oriented Architecture) technologies
are promising “best practices” to achieve the total
cost of ownership reduction goal.
23

24. 24
The Total Cost of Ownership Lifecycle
AcquisitionCost
D
isposalC
ost
Support Cost
Maintenance
Cost
Operating Costs
TCO Lifecycle

25. 25
The Total Cost of Ownership Iceberg

26. 26
TCO Items Classification

27. 27
Multi-Level Supply Chain – CLS NATO

28. 28
Cost vs. Reliability Trade-off

29. Evolution of Contracting in Aerospace
29

30. Defence Acquisition System (DAS)
DEFINITIONS in DoDI 5000.01 – DAS
• [Performance-Based Logistics]: PMs shall develop and implement
performance-based logistics strategies that optimize total system
availability while minimizing cost and logistics footprint. Trade-off decisions
involving cost, useful service, and effectiveness shall consider corrosion prevention
and mitigation. Sustainment strategies shall include the best use of public and
private sector capabilities through government/industry partnering initiatives, in
accordance with statutory requirements.
• [Systems Engineering]: Acquisition programs shall be managed through the
application of a systems engineering approach that optimizes total system
performance and minimizes total ownership costs. A modular, open-systems
approach shall be employed, where feasible.
• [Total Systems Approach]: The PM shall be the single point of accountability for
accomplishing program objectives for total life-cycle systems management,
including sustainment. The PM shall apply human systems integration to optimize
total system performance (hardware, software, and human), operational
effectiveness, and suitability, survivability, safety, and affordability. PMs shall
consider supportability, life cycle costs, performance, and schedule comparable
in making program decisions. Planning for Operation and Support and the
estimation of total ownership costs shall begin as early as possible.
Supportability, a key component of performance, shall be considered
throughout the system life cycle. 30

31. From Products to Systems to Services
31

32. From Products…
32

33. …to Systems…
33

34. …to Services
34
European GNSS
Agency (GSA),
Prague
Galileo Service Centre,
Madrid
Early Services
Task Force
Galileo System
Infrastructure
Galileo
Security
Monitoring
Centre

35. Service Lifecycle (ITIL Standard)

36. The ITIL Process Model

37. 37
Key Performance Indicators (KPIs)
• KPIs are tools that may be used by an organization (in
our case, a service enterprise) to define, measure,
monitor and track its performance over time toward the
achievement of its goals;
• KPIs must be quantitative and quantifiable;
• KPIs need to be tailored to the specific organization
priorities and performance criteria. So a service
organization, based on a large, complex, high-
technology system infrastructure, will look to KPIs that
measure areas of performance such as Availability,
Continuity, Mean Time to Repair (MTTR), customer
satisfaction indices, etc.;
• KPIs are often of statistical nature: they can be
evaluated over fixed or rolling time periods.

38. The ITIL KPIs Definition

39. Capability Maturity Model Standard

40. 40
Capability Maturity Model Standard

41. What is CMMI?

42. CMMI for Services Process Areas
AreasThe ITIL Process Model

43. Quantitatively Managed Process (1/2)

44. Quantitatively Managed Process (2/2)

45. Continuously Optimized Process

46. The ISO/IEC 20000 Standard

47. Space 1.0

48. Space 2.0

49. Space 3.0

50. Space 4.0

51. Space Market Requirements and Trends
1. Products/Services more and more complex
2. Increasing market competitiveness
3. Increasing market volatility
4. Reduction of the “time-to-market”
5. High rate of technological innovation
6. High probability of partial or total failure
lead to
NEW TECHNOLOGICAL AND
ORGANIZATIONAL PARADIGMS

52. Paradigm Shifts in the Space Industry
1. Concurrent Engineering
2. Design to Cost
3. Design for Testability
4. Design for Producibility
5. Modular Approach to Design
6. Large Scale Production Techniques
7. Total Quality Management
8. Extensive Use of “off-the-shelf” Hardware and Software
Products
9. Electronic Management of Data (Data Management
Systems, PLM’s)
in one word:
CONCURRENT ENTERPRISE

53. Concurrent vs Waterfall Approach

54. Concurrency is the simultaneous involvement by all stakeholders in
product development decisions from the outset and throughout the life
cycle so that the entire value chain is reciprocally integrated—from idea
to customer and back.
1. The bulk of costs are committed at early steps of a development cycle even
though not expended until later
2. The cost of fixing faulty upstream decisions at late stages is exponentially
greater than at earlier one
3. The opportunity costs of being late to market are very high, e.g., lower share,
lower margins
4. Cross-functional teams typically provide a better quality solution to complex,
dynamic product development problems than solo individuals—especially at
early stages
5. Early simultaneous involvement in product development by cross-functional
teams using structured development processes saves time and cost over the
life cycle, especially if the design is novel.
Axioms of Concurrency

55. Concurrency: Axiom 1

56. Opportunità di riduzione del costo del prodotto
Il costo delle modifiche di un progetto aumenta in modo inversamente
proporzionale alle possibilità di ridurre il costo del prodotto; è evidente che
occorre progettare il prodotto con obiettivi di costo chiari e definiti sin
dalle prime fasi della progettazione
Concezione Sviluppo
del
prodotto
Sviluppo del
processo
Produzione Utilizzo
Costo
delle modifiche
di progetto
Una delle metodologie di Product Development finalizzate a mantenere
sotto controllo i costi di prodotto in fase di progettazione è il Design-To-
Cost (DTC)

57. Concurrency: Axiom 2

58. Page 58
Quanto costano gli errori quando
Software Cost Factors Systems Cost Factors
Requirements 1X
Design 5-7X 3-8X
Build 10X-26X 7X-16X
Test 50-177X 21-78X
Operations 100X-1000X 29-1615X

59. Concurrency: Axiom 5

60. Concurrency & Collaboration:
Concurrent Design Facilities

61. Concurrency and Customer Focus

62. The Concurrent Enterprise
An Ensemble of Strategy, Process, Organization, and Tools

63. Through-life Integrated Concurrent
Engineering

64. 64
TICE Multiple Perspectives
TICE
Project
Management
Systems
Engineering
Operations
Engineering
Logistics
Engineering
Cost
Engineering
Enterprise
Engineering

65. The TICE-based Enterprise Characteristics

66. Lo "Spirito di Servizio"
“Il vero potere è servizio”
Papa Francesco
“Dormivo e sognavo che la vita era gioia. Mi
svegliai e vidi che la vita era servizio. Servii e
vidi che il servizio era gioia”
Rabindranath Tagore
“Serviamo al meglio i
nostri interessi quando
serviamo l’interesse
pubblico”
T. Watson, Jr.
Fondatore dell’IBM
“Para servir, servir”
Josemaria Escrivá
Fondatore dell’Opus Dei

67. Conclusions
• Our economy is more and more depending on large,
strategic and complex service infrastructures, based on
large, strategic and complex systems;
• The design of a complex service enterprise requires a
wide range of skills and expertise's, covering
organizational, engineering, social, legal and contractual
aspects;
• The acquisition and contracting strategy in the
Aerospace & Defense sector is evolving towards service
and capability oriented schemes;
• The advent of a services economy imposes a radical
conceptual paradigm shift: moving from
technologies/products to capabilities and services;
• A Through-life Integrated Concurrent Engineering (TICE)
approach is needed, integrating such paradigm shifts as
concurrent engineering, design to cost, design for
producibility and testability, design for maintenability,
modular approach to design, total quality management;
• The “spirit to serve” (call it “customer focus”, if you like)
is at the basis of all services.
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68. 68
THANK YOU
QUESTIONS ?