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Research on Business Processes Optimization for
Agile Manufacturing
Mi Zhiwei
Abstract
Based on macroscopic and synthetic approaches, especially information entropy
approach, the quantification of the flexible degree and order degree of business
processes is studied. According to the outcome of above analysis, a conceptual
model of optimizing business processes is proposed which supports to construct dynamic stable business processes. The research above has been applied in project
863/SDDACCIMS, and achieved primary benefits.
Key words: Agile Manufacturing, Business processes optimization, Dynamic stable
business processes, Information entropy, Decision-making support system
0 Introduction
Agile Manufacturing has been considered one of the most important mainstays of
national economic and social development. Agile Manufacturing has considered that
the environment of enterprises in an information age is continuously changing and
unpredictable. This is a kind of turbulent or chaotic environment. Current approaches
based on principle of division of labor to the design and construction of enterprise
systems leads to fixed business processes. This constrains the agility of business processes, often preventing close alignment between enterprises system behavior
and external changes. In such a severely challenging situation, Agile Manufacturing
has emphasized that enterprises for existence and growing must optimize their
business processes in order to construct dynamic stable business process structures
to cope with chaotic environment.
On the other hand, the traditional methodologies of optimizing business processes
are facing strong challenges. This is why the business processes are complex
systems. The complexities of system are reduced to its environmental chaos, its
structural high nonlinear and uncertainty. But these traditional methodologies based
on microscopic and quantitative mathematical models assume environment of
enterprises being relatively stationary. So the traditional methodologies of optimizing
business processes are difficult to cope with requirements of the complexities of
business processes.
In this paper, based on macroscopic and synthetic approaches, especially information entropy approach, the quantification of the flexible degree and order
degree of business processes is studied. According to the outcome of above analysis,
a conceptual model of optimizing business processes is proposed which supports to
construct dynamic stable business processes. The research above has been applied
in project SDDACCIMS supported by the High Technology Research and
Development Program me of China, and achieved primary benefits.
1 Analysis of Flexibility and Stability of Business Processes
The issue of flexibility has become increasingly important in optimizing business
processes. The need for flexibility is due to the changing nature of competition that
is based more than ever on both uncertain business processes themselves and the
chaotic nature of market situation. In other words, flexibility should represent the uncertainty and disorder which should permit the business process structures to be
adaptive, to be independent, to execute all actions with swiftness, to react promptly
to changing situation.
On the contrary, stability should mean the certainty and order that should help the
various business processes activities work harmoniously together toward heightened
collaboration and shared competitive aims.
In physical sciences, entropy is considered a measure of the degree of disorder.
Later, Shannon (1948) obtained the same expression in communication theory as a
measure of uncertainty of information or randomness of a probabilistic system. He
also called it entropy. In current years, the entropy measures have been successfully
applied in the field of statistical mechanics, economics, computer science, intelligent
decision and control theory. Formula of entropy is written by the information entropy theory as follow:
We also shall however call Eq.(1) the entropic measure of flexibility or stability.
We prefer to illustrate relationship among flexibility, entropy of business processes
and stability by a special example instead of proposing an abstract de-duce.
Let us take an extreme example of a business process that includes three tasks or
activities. We consider only three cases.
In case 1(Fig.1(a)), activity 1 is only related to predefined activity 2 while activity 2 is
only related to pre-defined activity 3. According to Eq.(1), the answer of flexibility of
the case 1 is nil.
In case 2 (Fig.1(b)), activity 1 may be related to two other activities with equal