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running the jVE production. Our products are sequences of numbers!. 1-2 2-13 28-7-27-7. Product “1-2” requires the production phases 1 and 2; “28-7-27-7” requires …. Each production phase represents a step in the process of producing a good or a service using goods or services.

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slide3

running the jVE production

Our products are sequences of numbers!

1-2

2-13

28-7-27-7

...

Product “1-2” requires the production phases 1 and 2;

“28-7-27-7” requires …

Each production phase represents a step in the process of producing a good or a service using goods or services

SwarmFest, Santa Fe

slide4

A system of enterprises and

micro productive units

(a swarm)

market

Enterprise

front end

1-2

2-13

28-7-27-7

...

recipes

units

FE

7

our jVE enterprise

(a sub-swarm of units)

FE

28

27

SwarmFest, Santa Fe

slide5

a, a random order with a random recipe

28-7-27-7

then we have steps b, c, …;

in x we have a choice problem

a

units

FE

b

7

FE

?

?

28

c

x

7

27

The orders are placed

in the unit waiting

lists and executed in a

FIFO way

SwarmFest, Santa Fe

slide6

Warehouses and inventories

28-7-27-7

units

?

FE

7

FE

28

7

27

?

?

?

? … how to decide?

SwarmFest, Santa Fe

slide7

The Environment Rules Agents (ERA) scheme

http://web.econ.unito.it/terna/ct-era/ct-era.html

SwarmFest, Santa Fe

slide8

Knowledge management and information diffusion

28-7-27-7

a micro–unit

units

News

useful for …

technically:

objects

FE

7

a macro–unit

?

?

FE

28

?

???

7

27

? Sending or not the news: a problem of cooperation, routines,

agreements, … (the core of organization

problems)

SwarmFest, Santa Fe

slide9

The swarm of swarm technique allows us to consider macro–units containing a complete jVE …

and to simulate the effect of information diffusion linking directly the macro–units or the micro ones …

so a jVE macro–unit may work on the basis of the news produced by a micro–unit operating within another jVE or by another macro–unit

SwarmFest, Santa Fe

slide10

Hierarchies, knowledge management and P2P perspective ...

GartnerConsulting

The Emergence of Distributed Content Management and Peer- to-Peer Content Networks

SwarmFest, Santa Fe

slide11

Procurement

28-7-27-7

units

FE

7

121

34

28

...

73

Exploding recipes to consider deeply sub–procurement problems

28-121-34-…-73-7-27-7

SwarmFest, Santa Fe

slide12

Accounting capabilities

28-7-27-7

units

cost accounting on

the order side

FE

7

differences ?

FE

?

?

28

cost accounting on

the unit side

7

27

… environmental accounting

SwarmFest, Santa Fe

slide13

A closer look to the jVEFrame model

  • The “no-inventories” case …and the effects on the length of the waiting lists
  • The “inventories” case: waiting lists and financial costs
  • The diffusion of news that influence decisions about inventories: different effects on financial costs (not yet implemented)

SwarmFest, Santa Fe

slide14

without inventories

SwarmFest, Santa Fe

slide15

with inventories

SwarmFest, Santa Fe

slide17

3 matrixes (unexpressed, emerging, operating in background, …)

flows of

from/to

  • goods and services

Units

1 2 3 … N

1

2

3

N

  • information
  • hierarchies

SwarmFest, Santa Fe

slide18

The enterprises (unexpressed) knowledge

What unexpressed knowledge is? The tacit, unarticulated, nonscientific knowledge of the decision-makers

With jVEFrame we can build models on it, in actual enterprises, and simulate the effects of changes like B2B or B2C or P2P knowledge management etc.

SwarmFest, Santa Fe

slide19

Emerging innovation

with JVEFrame we can also make the attempt of modeling the emergence of innovation

# of any length in recipes of any length

(# as components in recipes)

in recipes ...

1 311 1217 7 ...

  • new # in recipes as new production phases or components
  • new recipes as sequences of new and old #
  • to renew units and spatial organization in a productive supply chain

SwarmFest, Santa Fe

slide20

From …

units

FE

7

FE

?

?

28

7

27

SwarmFest, Santa Fe

slide21

… to …

… local networks of enterprises or industrial districts

7

FE

28

7

27

with the emergence of new units, new jVEs and a new space organization

SwarmFest, Santa Fe

slide22

A small project (jVEFrame) and a big one (NIIIP)

The primary objective of the National Industrial Information Infrastructure Protocols (NIIIP) Consortium is to develop, demonstrate, and transfer into widespread use the technology to enable Industrial Virtual Enterprises. A Virtual Enterprise is a temporary organization of companies that come together to share costs and skills to address business opportunities that they could not undertake individually. Industrial Virtual Enterprises, with NIIIP technology, foster collaborative efforts and the sharing of engineering and manufacturing information.

www.niiip.org

SwarmFest, Santa Fe

slide23

Forthcoming practical improvements in jVEFrame

Introduction of space, distances, transportation and logistic problems

Creation of Gantt charts for the simulated activities

SwarmFest, Santa Fe

slide24

The theoretical side ...

Luis Garicano (2000), Hierarchies and the Organization of Knowledge

in Production, Journal of Political Economy, vol. 108, no. 5

Organizations exist, to a large extent, to solve coordination problems in the presence of specialization. As Hayek (1945, p. 520) pointed out, each individual is able to acquire knowledge about a narrow range of problems. Coordinating this disparate knowledge, deciding who learns what, and matching the problems confronted with those who can solve them are some of the most prominent issues with which economic organization must deal.

Hayek, Friedrich A. von. “The Use of Knowledge in Society.” A.E.R. 35

(September 1945): 519–30.

SwarmFest, Santa Fe

slide25

A theoretical journey with agent based simulation and jVEFrame: from Chamberlin and Coase to Kirzner, via the Hayek’s work.

Chamberlin E.H. (1933), The Theory of Monopolistic Competition,

Cambridge (Ma.), Harvard University Press.

Coase R. (1937), The nature of the firm, Economica, 4, pp. 386-

405.

v. Hayek F. (1948), Individualism and Economic Order, London,

University of Chicago Press.

Kirzner I. (1997), Entrepreneurial discovery and the competitive

market process: an Austrian approach, Journal of Economic Literature,

vol.XXXV, n.1, pp. 60-85.

SwarmFest, Santa Fe

slide26

Conclusions (… borrowed from Kirzner’s paper)

If the Austrian theory claims that entrepreneurial discovery can account for a tendency toward equilibrium, that vague-sounding term “tendency toward” is used deliberately, advisedly, and quite precisely.

Such a tendency does exist at each and every moment, in the sense that earlier entrepreneurial errors have created profit opportunities which provide the incentives for entrepreneurial corrective decisions to be made. These incentives offer rewards to those who can better anticipate precisely those changes in supply and demand conditions which we have seen to be so disconcertingly possible.

What our understanding of the entrepreneurial discovery process provides, is not conviction that an unerringly equilibrative process is at all times in progress, but rather appreciation for the economic forces which continually encourage such equilibrative movement.

SwarmFest, Santa Fe

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