Authors:
Victoria Klyukina
1
;
Ilia Bider
1
;
2
and
Erik Perjons
1
Affiliations:
1
DSV, Stockholm University, Stockholm, Sweden
;
2
ICS, Tartu University, Tartu, Estonia
Keyword(s):
Decision-making, Enterprise Modelling, Fractal Enterprise Model, FEM.
Abstract:
The paper reports on testing suitability of using a so-called Fractal Enterprise Model (FEM) in operational decision making. The project in which the testing has been done aimed at identifying areas for cost reduction improvements in a support department of a European branch of an international high-tech concern. The idea was to use modeling of the department’s operational activities on the intermediate level of details, just enough to identify the areas that need attention or provide an opportunity for cost reduction. FEM connects enterprise business processes with assets that are used in and are managed by these processes. It also allows to split a process into subprocesses in order to reach an intermediate level of details. The split is done by using a special type of assets called stock, which, for example, could be a stock of orders or a stock of parts to be used in an assembly process. The experience from the project shows that the level of details that has been achieved by usi
ng FEM is sufficient to understand the activities being completed by the department and identify possible ways for improvements. Furthermore, two generic patterns that can help to identify some areas of improvement have been established; these can be used in other projects.
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