Preface

Global competition has caused fundamental changes in the competitive environment of the manufacturing and service industries. Firms should develop strategic objectives that, upon achievement, result in a competitive advantage in the market place. The forces of globalization on one hand and rapidly growing marketing opportunities overseas, especially in emerging economies on the other, have led to the expansion of operations on a global scale. The subject matter is fascinating and timely. This book aims to cover the main topics characterizing operations management including both strategic issues and practical applications. A global environmental business including both manufacturing and services is analyzed. Among the topics are safety, product and service design, decision making, maintenance, and supply chain management. The book contains original research and application chapters from many different perspectives. It is enriched through the analyses of case studies.

Chapter 1, "The Analytic Functional Resonance Analysis to Improve Safety Management", proposes the Functional Resonance Analysis Method (FRAM) to analyze the complexity of safety in industrial plants. This research integrates FRAM with the Analytic Hierarchy Process (AHP), a multicriteria technique, to overcome the limits of the FRAM. The result is a proposal of an alternative approach to risk assessment based on principles of resilience engineering. A real case study in a petrochemical company is analyzed.

In the awareness that accelerating digitization of critical infrastructures is increasing interconnection and interdependence among high-reliability subsystems, in Chapter 2, "The Modulus of Resilience for Critical Subsystems", the authors provide a scenario agnostic method to quantify resiliency by applying concepts from materials science in a generalized form. This new formulation resulted from a mapping of constructs used in tensile testing to characteristics of protracted subsystem disruptions.

Chapter 3, "Condition-Based Maintenance for Data Center Operations Management", proposes preventive and predictive maintenance (PPM), which determines the CBM as a systematic strategy of data center operations and maintenance. Use case examples of power distribution systems (PDS) of a data center have been examined to ensure their proper functionality and to reduce their deterioration rate.

It is clear that, in the digital space, the computer-based operating systems (CMMS's) enable quick and effective communication between stakeholders, facilitate improved planning, easy access to historical data, reporting and performance improvements of the maintenance function. However, success in the use of CMMS's depends on the human capacity of the users of the system, as it is explained in Chapter 4 "Harnessing the Multiple Benefits of a Computerised Maintenance Management System".

A novel adaptation of the *MAX-MIN* Ant System algorithm for the Quota Traveling Salesman Problem with Passengers, Incomplete Ride, and Collection Time is proposed in Chapter 5 "Multi-Strategy *MAX-MIN* Ant System for Solving Quota Traveling Salesman Problem with Passengers, Incomplete Ride and Collection Time". The algorithmic components proposed to consider vehicle capacity, travel time, passenger limitations, and a penalty for delivering a passenger deliverance out of the required destination.

**II**

**Chapter 8 159**

**Chapter 9 191**

**Chapter 10 215**

**Chapter 11 233**

**Chapter 12 251**

**Chapter 13 267**

**Chapter 14 287**

**Chapter 15 305**

**Chapter 16 331**

**Chapter 17 347**

Implementation of Computerized Maintenance and Management System

A Modern Approach for Maintenance Prioritization of Medical Equipment

Business Process Linguistic Modeling: Theory and Practice Part I:

Business Process Linguistic Modeling: Theory and Practice Part II:

*by Jozef Stašák, Jaroslav Kultan, Peter Schmidt and Bouafia Khawla*

Artificial Intelligence and Bank Soundness: A Done Deal? - Part 1

Artificial Intelligence and Bank Soundness: Between the Devil

*by Jozef Stašák, Jaroslav Kultan, Peter Schmidt and Mukhammedov Abu Urinbasarovich*

*by Călin Corciovă, Doru Andriţoi and Cătălina Luca*

Operations Knowledge Management in Health Care

BPLM Strategy Creator

BPLM Business Process Designer

Project Management Concepts *by Vittal S. Anantatmula*

*by Ann Svensson and Eva Hedman*

and the Deep Blue Sea - Part 2

*by Charmele Ayadurai and Sina Joneidy*

*by Charmele Ayadurai and Sina Joneidy*

in Wine Factory in Ethiopia: A Case Study *by Dejene Addis Nigussie and Muralidhar Avvari*

*by Yang Tang, Xin Yang and Guorong Wang*

*by Sahand Ashtab, Yang Xing and Cheng Zheng*

Maintenance Decision Method Based on Risk Level

Exploring Constituents of Short Food Supply Chains

The ant-based algorithm incorporates different sources of heuristic information for the ants and memory-based principles. Computational results are reported, showing the effectiveness of this ant-based algorithm.

Chapter 6 is entitled "System of Data Transfer from and to Social and Economic Processes via Creative Economy Networks Created Based on Cultural Heritage Administration Processes and Vice Versa" and it presents an interesting point of view on this topic. The aim of Chapter 7, "Conceptualization, Definition and Assessment of Internal Logistics through Different Approaches Using Artificial Intelligence", is to develop a new concept of internal logistics, its components parts, and how to evaluate it. To quantify the level of performance of the internal logistics of a company is an important issue to gain competitiveness.

It is also important to note that the business activities provided within any firm or company should be checked and controlled continuously, while two principal approaches should be applied: (a) qualitative monitoring, (b) quantitative evaluations, while KPI indicators play a role of the utmost importance within business quantitative evaluation in order to make adequate decisions. However, adequate applications from KPI creation and further processing seem to be very significant and important. Thus, Chapter 8, "Business Process Linguistic Modeling: Theory and Practice Part I: BPLM Strategy Creator", and Chapter 9, "Business Process Linguistic Modeling: Theory and Practice Part II: BPLM Business Process Designer", presents a conceptual model of application denoted as BPLM Strategy Creator in the form of an expert system (ES). The contribution contains such application descriptions from the qualitative, quantitative, and design point of view.

A different issue is analyses in Chapter 10, "Project Management Concepts". The chapter covers the fundamentals of project management. It introduces project management concepts and provides a systemic view of project management plans and the processes with which they are implemented. The knowledge areas include scope, time, cost, quality, and risk. In addition, the authors emphasize the interrelated nature of these knowledge areas.

Chapter 11, "A Modern Approach for Maintenance Prioritization of Medical Equipment", presents document-based methods to evaluate every aspect of the medical equipment maintenance process and to provide a correct, objective, and standardized approach that supports clinical engineering activities. Following the analysis, the results show that the combination of the use of the two methods provides an overview, in a periodic manner, of maintenance performance that indicates the use of the most appropriate procedures.

A critical issue in our world is that the aging population of the western world poses a medical challenge for the society of today and of the future. The pressure on healthcare and its organization is increasing as the demand for healthcare is growing at the same time as the costs are continuously rising. Thus, Chapter 12, "Operations Knowledge Management in Health Care", aims to analyze knowledge management mechanisms in the infrastructure of a healthcare organization. The analysis shows how mechanisms have significant impacts on the knowledge management practice in operations management. A learning and knowledge creation culture, together with an organizational architecture for adaptive and exaptive capacity, and a business model for knowledge capitalization, could support the production of smooth and effective healthcare of high quality in society.

A point of view on services is analyzed in Chapter 13, "Artificial Intelligence and Bank Soundness: A Done Deal? - Part 1", and Chapter 14, "Artificial Intelligence and Bank Soundness: Between the Devil and the Deep Blue Sea - Part 2". In detail, a conceptual analysis with the aim to provide a deeper understanding of the opportunities parted by AI from a service provider and customer perspective in the bank sector is presented.

**V**

Nowadays, productivity improvement is the concern of all industries in spite of the type of product and number of recourses or production systems that are followed by the industries. So far, productivity has been achieved by implementing various methodologies exclusively computerized maintenance and management systems. In this scenario, Chapter 15, "Implementation of Computerized Maintenance and Management System in Wine Factory in Ethiopia: A Case Study", emphasizes the effective maintenance strategy and management system as the solitary way of improving the productivity of the cause company. The foremost intention of the study is to enhance productivity through a smart maintenance management system (strategy and management tool).

Maintenance issues are well defined and analyzed in Chapter 16, "Maintenance Decision Method Based on Risk Level", which presents a framework for maintenance decision method based on risk level for mechanical equipment in the petrochemical industry.

Finally, the problem of the supply chain is explored in the last chapter, "Exploring Constituents of Short Food Supply Chains", which provides a holistic exploration of Alternative Food Networks (AFNs), which contribute to the further mobilization

This book is intended to be a useful resource for anyone who deals with innovation and smart manufacturing problems. Furthermore, we hope that this book will provide useful resources ideas, techniques, and methods for further research on these issues.

As editors of this book, we very much thank the authors who contributed with their invaluable research as well as the referees who reviewed these papers for their effort, time, and invaluable suggestions. Our special thanks to Ms. Sandra Maljavac, Author Service Manager, for her precious support and her team for this opportunity to serve as

**Antonella Petrillo**

**Fabio De Felice** Professor,

Department of Engineering, University Parthenope of Naples,

**Germano Lambert-Torres** 

Itajubá, Minas Gerais, Brazil

Department of Civil and Mechanical Engineering, University of Cassino and Southern Lazio,

Departamento de Pesquisa e Desenvolvimento,

Professor,

Italy

Italy

Professor,

Instituto Gnarus, Itajuba, Brazil

**Dr. Erik Bonaldi** PS Soluções,

of locally produced products.

guest editors.

Nowadays, productivity improvement is the concern of all industries in spite of the type of product and number of recourses or production systems that are followed by the industries. So far, productivity has been achieved by implementing various methodologies exclusively computerized maintenance and management systems. In this scenario, Chapter 15, "Implementation of Computerized Maintenance and Management System in Wine Factory in Ethiopia: A Case Study", emphasizes the effective maintenance strategy and management system as the solitary way of improving the productivity of the cause company. The foremost intention of the study is to enhance productivity through a smart maintenance management system (strategy and management tool).

Maintenance issues are well defined and analyzed in Chapter 16, "Maintenance Decision Method Based on Risk Level", which presents a framework for maintenance decision method based on risk level for mechanical equipment in the petrochemical industry.

Finally, the problem of the supply chain is explored in the last chapter, "Exploring Constituents of Short Food Supply Chains", which provides a holistic exploration of Alternative Food Networks (AFNs), which contribute to the further mobilization of locally produced products.

This book is intended to be a useful resource for anyone who deals with innovation and smart manufacturing problems. Furthermore, we hope that this book will provide useful resources ideas, techniques, and methods for further research on these issues.

As editors of this book, we very much thank the authors who contributed with their invaluable research as well as the referees who reviewed these papers for their effort, time, and invaluable suggestions. Our special thanks to Ms. Sandra Maljavac, Author Service Manager, for her precious support and her team for this opportunity to serve as guest editors.

> **Antonella Petrillo** Professor, Department of Engineering, University Parthenope of Naples, Italy

**Fabio De Felice** Professor, Department of Civil and Mechanical Engineering, University of Cassino and Southern Lazio, Italy

#### **Germano Lambert-Torres**

Professor, Departamento de Pesquisa e Desenvolvimento, Instituto Gnarus, Itajuba, Brazil

#### **Dr. Erik Bonaldi**

PS Soluções, Itajubá, Minas Gerais, Brazil

**IV**

The ant-based algorithm incorporates different sources of heuristic information for the ants and memory-based principles. Computational results are reported, showing the

Chapter 6 is entitled "System of Data Transfer from and to Social and Economic Processes via Creative Economy Networks Created Based on Cultural Heritage Administration Processes and Vice Versa" and it presents an interesting point of view on this topic. The aim of Chapter 7, "Conceptualization, Definition and Assessment of Internal Logistics through Different Approaches Using Artificial Intelligence", is to develop a new concept of internal logistics, its components parts, and how to evaluate it. To quantify the level of performance of the internal logistics of a company is an

It is also important to note that the business activities provided within any firm or company should be checked and controlled continuously, while two principal approaches should be applied: (a) qualitative monitoring, (b) quantitative evaluations, while KPI indicators play a role of the utmost importance within business quantitative evaluation in order to make adequate decisions. However, adequate applications from KPI creation and further processing seem to be very significant and important. Thus, Chapter 8, "Business Process Linguistic Modeling: Theory and Practice Part I: BPLM Strategy Creator", and Chapter 9, "Business Process Linguistic Modeling: Theory and Practice Part II: BPLM Business Process Designer", presents a conceptual model of application denoted as BPLM Strategy Creator in the form of an expert system (ES). The contribution contains such application descriptions from the qualitative, quantitative, and design point of view.

A different issue is analyses in Chapter 10, "Project Management Concepts". The chapter covers the fundamentals of project management. It introduces project management concepts and provides a systemic view of project management plans and the processes with which they are implemented. The knowledge areas include scope, time, cost, quality, and risk. In addition, the authors emphasize the interrelated nature of these

Chapter 11, "A Modern Approach for Maintenance Prioritization of Medical Equipment", presents document-based methods to evaluate every aspect of the medical equipment maintenance process and to provide a correct, objective, and standardized approach that supports clinical engineering activities. Following the analysis, the results show that the combination of the use of the two methods provides an overview, in a periodic manner, of maintenance performance that indicates the use of the most appropriate procedures.

A critical issue in our world is that the aging population of the western world poses a medical challenge for the society of today and of the future. The pressure on healthcare and its organization is increasing as the demand for healthcare is growing at the same time as the costs are continuously rising. Thus, Chapter 12, "Operations Knowledge Management in Health Care", aims to analyze knowledge management mechanisms in the infrastructure of a healthcare organization. The analysis shows how mechanisms have significant impacts on the knowledge management practice in operations management. A learning and knowledge creation culture, together with an organizational architecture for adaptive and exaptive capacity, and a business model for knowledge capitalization, could support the production of smooth and effective healthcare of high quality in society.

A point of view on services is analyzed in Chapter 13, "Artificial Intelligence and Bank Soundness: A Done Deal? - Part 1", and Chapter 14, "Artificial Intelligence and Bank Soundness: Between the Devil and the Deep Blue Sea - Part 2". In detail, a conceptual analysis with the aim to provide a deeper understanding of the opportunities parted by AI from a service provider and customer perspective in the bank sector is presented.

effectiveness of this ant-based algorithm.

important issue to gain competitiveness.

knowledge areas.

**1**

**Chapter 1**

**Abstract**

The Analytic Functional

Safety Management

human error, operations management

**1. Introduction**

Resonance Analysis to Improve

*Antonella Petrillo, Fabio De Felice and Laura Petrillo*

engineering. A real case study in a petrochemical company is analyzed.

**Keywords:** AHP, FRAM, resilience engineering, performance variability,

Although over the years, industrial plants have improved their safety management processes, it is evident that safety systems need to be further improved [1]. This need is underlined by the many accidents that have occurred in industrial plants over recent years, arising from human causes, technical causes, or natural causes. Traditional safety management models are designed to identify negative factors and develop systems to mitigate their impact. These models allow to analyze different critical situations, but they seem ineffective for today's business needs [2]. Particularly, in modern industrial plants, only a few functions are independent of each other. Thus, analyzing them individually may not be the best model. In general, due to the complexity of the systems it is necessary to analyze all functions and tasks. In this perspective, Resilience Engineering (RE) is a useful approach to manage complex systems. This approach is a new way to think about safety and risk management [3]. Unlike the classic risk management approaches that are based on the analysis of a posteriori causes by adopting a linear cause-and-effect approach, the RE adopts a perspective that refers to the theory of complexity. RE aims to revise the analysis models to create processes that are flexible and robust. Functional Resonance Analysis Method (FRAM) proposed by Hollnagel defines complex systems through their functions and studies the interactions between these functions [4]. The main *strength* of FRAM method is based on the principle that a variation in the conditions in which an action takes place can lead to *improvements* or *worsening* that ultimately

Complex industrial plants are characterized by digitalization and innovation. In this context it is strategic to ensure the systematic design, implementation, and continuous improvement of all processes (operations management). One of the most obvious ways to improve operations performance is to reduce the risk of accidents and human errors. In this pilot study the Functional Resonance Analysis Method (FRAM) is proposed to analyze the complexity of safety in industrial plants. This research integrates FRAM with Analytic Hierarchy Process (AHP), a multi criteria technique, to overcome the limits of the FRAM. The result is a proposal of an alternative approach to risk assessment based on principles of resilience
