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Our products are sequences of numbers!

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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Our products are sequences of numbers!

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  1. SwarmFest, Santa Fe

  2. SwarmFest, Santa Fe

  3. 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

  4. 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

  5. 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

  6. Warehouses and inventories 28-7-27-7 units ? FE 7 FE 28 7 27 ? ? ? ? … how to decide? SwarmFest, Santa Fe

  7. The Environment Rules Agents (ERA) scheme http://web.econ.unito.it/terna/ct-era/ct-era.html SwarmFest, Santa Fe

  8. 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

  9. 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

  10. Hierarchies, knowledge management and P2P perspective ... GartnerConsulting The Emergence of Distributed Content Management and Peer- to-Peer Content Networks SwarmFest, Santa Fe

  11. 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

  12. 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

  13. 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

  14. without inventories SwarmFest, Santa Fe

  15. with inventories SwarmFest, Santa Fe

  16. SwarmFest, Santa Fe

  17. 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

  18. 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

  19. 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

  20. From … units FE 7 FE ? ? 28 7 27 SwarmFest, Santa Fe

  21. … 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

  22. 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

  23. Forthcoming practical improvements in jVEFrame Introduction of space, distances, transportation and logistic problems Creation of Gantt charts for the simulated activities SwarmFest, Santa Fe

  24. 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

  25. 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

  26. 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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