Institutional economic analysis of the influence of production internet concept over operational management Cover Image

Институционални економски анализи на влијанието на производствените интернет концепти врз оперативниот менаџмент
Institutional economic analysis of the influence of production internet concept over operational management

Author(s): Julijana Siljanoska, Nikolce Marinovski
Subject(s): Economy
Published by: Економски институт - Скопје
Keywords: Internet based production concept; information technology; operational subsystems; management; production internet concepts.

Summary/Abstract: In sum, theInternet based Production Concepts, in comparison to the current production concepts, offers many advantages. They widely apply new technologies, in order to generate options in production, which were up to now, unavailable in order to realize competitive advantages. However, the application of Internet Technologies leads to modifications in the production system, inducing modifications in operations management. A situation emerges, in which planning and control functions are transferred into the operation subsystem, and communication demands increase between the management subsystem and operation subsystem.If coordination tasks are transferred into the operation subsystem, than additional coordination mechanisms are necessary. Particularly we have to consider an increase in the problem complexity for the actors in the operation subsystem, since they take on parts of the management system tasks. In this context, the coordination aims at optimizing of the relevant subsystem respectively to the (cooperative) achievement of superior management goals. But this is problematic because the complexity of the coordination processes increases with the number of the involved actors. Therefore, it is important to find an appropriate mechanism for the coordination process. We assume that the opportunistic coordination dis cussed in connection with (technical) multi agent systems is an appropriate ap proach. The opportunistic coordination follows a principle of the maximum freedom degrees in selection problems (principle of opportunism) and a principle of the least commitment (Fox/Kempf 1985, p. 489). Therefore, it enables a direct interaction and communication of the actors in the operation subsystem (Corsten, 1999, pp. 319). Yet, commercial PPC systems do not consider the opportunistic coordination. However, Holstroem/Milgrom (1990, pp. 85) already have shown that immediate contractual relationships between agents (actors) are useful from an institution- economic perspective. Therefore, an institution economical approach to operations management in the Internet based Production Concepts must conceptualize the direct communication and the decentralized coordination between actors in the operation subsystem.

  • Issue Year: 11/2009
  • Issue No: 1-2
  • Page Range: 251-270
  • Page Count: 20
  • Language: Macedonian