Overall equipment effectiveness is taught as an industrial convention: three factors, availability times performance times quality, adopted because decades of practice found them useful. This paper proves that it is not a convention. Over the minimal variable set of discrete manufacturing, and with piece count admitted as a base dimension alongside time, the Buckingham π theorem forces exactly three independent dimensionless groups, and those three groups are exactly the availability, performance, and quality factors. The two formulas every OEE practitioner learns, the factored form A × P × Q and the collapsed form τG/T_p, are revealed as the factored and telescoped presentations of one and the same π monomial. Nakajima wrote down the correct answer in 1988. The theorem that makes it inevitable is proved here. The move that makes this work is dimensional rather than statistical. Counts of a specified entity are treated as quantities of a kind rather than as bare numbers, exactly as the International System treats amount of substance for the mole. With the unit dimension U in the basis, ideal cycle time carries T U⁻¹, throughput carries U T⁻¹, and count ratios become true π groups instead of informal percentages. Without U the count variables are dimensionally invisible, the matrix loses a row, and the machinery of the theorem cannot see the structure it is about to reveal. Nothing metaphysical is claimed for U; the instrumental reading, that U is the bookkeeping dimension of a specified countable product, carries every result in the paper. Two completeness theorems. Theorem 1 establishes that over the base dimensions T and U the minimal set {T_p, T_r, τ, N, G} admits exactly three independent groups and that the OEE triple is a complete basis, so every dimensionless quantity constructible from those five variables is a product of powers of availability, performance, and quality. Theorem 2 establishes a completeness result of exactly parallel shape for the statistical layer: over the single dimension of a quality characteristic, the set {Δ, σ, δ} admits exactly two groups, and the capability pair C_p = Δ/(6σ) and the centering index k = 2δ/Δ is a complete basis. The demonstrated capability index C_pk = C_p × (1 − k), the sigma level Z = 3C_pk, rolled throughput yield, and a closed form for normalized Taguchi loss all follow as members of that basis. The extension ladder. Each variable appended to the minimal set introduces no new base dimension until energy enters, so each purchases exactly one further independent group, and at every rung the new group already has a name on the factory floor. Total calendar time gives TEEP. Takt time gives takt coverage. Mean time between failures and mean time to repair give the reliability burden and with it the classical inherent availability as an exact identity, together with a ledger that resolves the opaque quantity 1 − Π_A, the availability loss that OEE reports but cannot explain, into named and separately actionable channels. Changeover time gives the SMED setup burden. Energy gives an efficiency group that only the rank form of the theorem can find, since a naive count of base dimensions predicts three groups and would wrongly conclude that no independent energy group exists. The flow variables give the Factory Physics WIP efficiency together with a closed identity for process cycle efficiency, PCE = Π_F × u, which tells a diagnosing engineer whether poor flow is an inventory problem or a starvation problem. The bridge law. The two layers join at exactly one point. For a process in statistical control with normally distributed output, the capability pair determines a ceiling on the quality group, Π_Q* = Φ(3C_p(1 − k)) + Φ(3C_p(1 + k)) − 1. Determination runs one way: capability sets a ceiling that operations can fail to reach but cannot exceed, and the gap between the ceiling and the observed quality group is itself diagnostic, because an in-control capable process that nonetheless scraps parts is losing them to special causes and startup transients rather than to inherent spread. Consequences for the canon. The Six Big Losses of total productive maintenance and the eight wastes of Lean close one to one against the group registry, each located in the group whose degradation it names. Lean and Six Sigma are re-read as dimensional analysis performed on two different variable sets, the flow variables and the spread variables, by communities that did not know they were doing it, which is offered as an explanation of why their merger into a single methodology worked in practice. The normalized Taguchi loss acquires the closed form ΛQ = (9C_p²)⁻¹ + k², which separates the spread term from the centering term additively and repairs a known defect of Taguchi practice, whose signal-to-noise ratios take logarithms of dimensional quantities. The composite and what it changes. A plant-level composite, Ψ_Plant = Ψ_OEE × Γ_Demand × Γ_Energy × Γ_Flow, becomes an additive loss ledger under logarithms. Because the composite is a product, its log-elasticity with respect to every factor is exactly unity, so no factor carries more marginal leverage than another and improvement priority is set entirely by headroom, which is precisely what the ledger measures. A worked injection-molding line scored over one operating week returns Ψ_OEE = 0.680, a respectable value squarely inside the typical industrial band, while the composite returns Ψ_Plant = 0.0638. The ledger says why: flow contributes seventy-six percent of the log deficit. A single-lever intervention table follows. Buying uptime, the move a manager reading only the OEE number would make, returns 1.12 fold. Cutting work in process to its critical level multiplies the composite eightfold, from 0.064 to 0.510, without touching availability, performance, or quality at all. The intervention that feels natural is not the intervention that pays, and the framework tells them apart before a dollar is spent. Scope and limitations, stated plainly. The bridge law assumes statistical control and normality; for non-normal characteristics the ceiling must be computed from the fitted distribution. Reliability enters through a renewal approximation. The minimal set is single-product, and clamping conventions are declared wherever imposed, with the raw unclamped groups always reported alongside. The worked example is synthetic. Its inputs are constructed to be consistent with published benchmark values rather than drawn from a single instrumented plant, so it demonstrates the machinery and its diagnostic reading but is not an empirical validation; full single-plant instantiation with direct measurement is the subject of the next paper in this program. The paper positions itself explicitly against five bordering literatures, the OEE literature, process-physics dimensional analysis, the dimensional analysis tradition inside operations management, data envelopment analysis and index numbers, and Factory Physics, and states its priority claim as scoped to that survey, with correction from the community invited.
This study seeks to fill a gap in the understanding of how blockchain smart contracts may improve logistics service quality and investigate the drivers of blockchain smart contracts.Semistructured interviews were carried out with ten logistics professionals to collect data.According to the findings, the drivers of using blockchain smart contracts in the logistics industry comprised the strongest predictor amongst security, traceability, decentralization, transparency, efficient information sharing, and automation factors.The identified drivers of blockchain smart contracts could be used by logistics practitioners as a "road map" for the development of appropriate solutions to successfully strengthen logistics service quality within the logistics industry.The results indicate that blockchain smart contracts enhance payment transaction security, increase end-to-end visibility, and improve delivery timeliness.Moreover, this technology optimizes routing, advances fleet management, and reduces logistics costs.The existing literature focuses on the approaches to applying theoretical, technical, or operational benefits of blockchain smart contracts, but fails to propose a deep dive into logistics service quality.This research appraises blockchain smart contracts by assessing and suggesting how they can enhance logistics service quality.
У статті проаналізовано ключові недоліки централізованих афілійованих платформ, зокрема брак прозорості, складність виплат і надмірні витрати на інтеграцію. Запропоновано інтеграцію Web3-технологій (блокчейну, смарт- контрактів) як ефективну альтернативу для підвищення довіри та оптимізації процесів, що підтверджується попередніми дослідженнями. Робота наголошує на відсутності детальних методів та моделей інтеграції Web3-технологій в системи афілійованого маркетингу і формулює низку дослідницьких питань, які охоплюють криптографію, розробку смарт-контрактів, графовий аналіз взаємодій та OO-моделювання децентра- лізованих застосунків. Представлено методологічний підхід, що складається з аналізу існуючих моделей, огляду літератури, розробки Web3-базованої системи та формаль- ного тестування прототипів. Бібл. 8, іл. 2, табл. 1
Much of the attention on bitcoin relates to its ability to store value over time or whether you will one day by able to buy a cup of coffee with it. Much less attention is given to bitcoin’s potential role as a unit of account. This opinion piece proposes that bitcoin has potential to provide a consistent unit of account for organisations to adopt, but also to assist them in making and measuring meaningful business developments. The paper draws from the business improvement philosophy of Theory of Constraints to propose that unit of account, particularly within high inflation environments, is critical to consider. An illustrative case of a well-known publicly traded company, Microstrategy, provides an example and logic for a company choosing to integrate bitcoin into a business. The paper also gives attention to how the adoption of bitcoin can promote the development of renewable energy infrastructure and provide staff with opportunities for personal development to support their well-being. Opportunities for further research are identified to explore the integration of bitcoin within a business as well as with Theory of Constraints.
For businesses specializing in ameliorating goods, such as seasoned cheese, traditional financing models pose unique challenges. Inventory financing relies heavily on past performance, often overlooking the inherent value increase associated with proper aging. This can lead to limited access to capital, hindering growth and operational stability. Warehouse financing emerges as a specialized solution specifically designed for businesses with maturing inventory. Lenders recognize the future value potential of these goods, offering secured loans based on anticipated market appreciation. This approach unlocks immediate cash flow, empowering businesses to cover operational costs, invest in expansion, or manage cash flow fluctuations. This study develops and discusses inventory problems for the specific class of "ameliorating" products, integrated with the warehouse financing technique, to combine the two topics and highlight their main features but above all their scientific and practical importance. The models proposed are focused on a decentralized scenario (single actor perspective) and a centralized scenario (supply chain perspective) to compare the optimal solution in terms of the aging period while maximizing the annual profit. Furthermore, from the supply chain perspective, a multi-supplier single-manufacturer supply chain is proposed with a deteriorating raw material (i.e., fresh milk). While cheese is a prime example, warehouse financing can benefit a diverse range of businesses dealing with ameliorating goods (such as wines, coffee, and aged spirits).
T his thesis explores the impact of financial decisions and contract design on operational performance in a decentralized supply chain.Specifically, the study focuses on two financial aspects: debt financing and option contracts.Debt financing increases operational risk, while option contracts are examined as a means of managing profit-risk.This study finds that option contracts are a valuable tool for mitigating the adverse effects of supply chain decentralization, especially under financial constraints.By transferring a portion of the demand risk between supply chain members, option contracts can improve whole system performance by reducing the inventory and bankruptcy risk.This study considers that option contracts are offered alongside traditional wholesale price contracts to improve overall and each member of supply chain performance.These contracts do not need to replace existing agreements, as they are already established and priced in the market.Rather, offering option contracts as an additional tool can be more advantageous.Retailers can utilize option contracts to manage their risk and increase their own profits by increasing inventory level, while suppliers can use them to absorb demand risk which allows them to enhance their profits.This thesis presents a comprehensive analysis of a simple decentralized supply chain that operates under an uncertain demand.Chapter 1 provides an overview of the essential components of this supply chain structure, followed by a critical review of the relevant literature on contracts that aim to enhance supply chain performance.This chapter also addresses the financial constraints problem associated with managing supply chains.Chapter 2 presents a published paper that scrutinizes the decision-making process of a newsvendor-style retailer, who determines inventory levels and selling prices of his products.The retailer is the key partner in this model who is facing the demand directly.This chapter specifically examines the impact of demand uncertainty and return policies on the retailer's profit maximizing behavior.Chapter 3 broadens the study's scope to whole supply chain and explore scenarios where the supplier offers additional option contracts to reduce the retailer's inventory risk and increase her own profitability.These models are examined in the context of financial limitation, including situations where the bank serves as a creditor to both supply chain partners or where the supplier offers trade credit to the retailer.In this structure, because of absence of bankruptcy cost, tax and perfect market assumption, bank financing does not affect the operational decisions.Thus, chapter 4 concentrates on put option contracts and incorporates bankruptcy costs into the model.At the end of this chapter, numerical experiments are presented and compatible with analytical results.i Overall, this thesis offers an in-depth examination of the complexities of managing decentralized supply chains with uncertain demand, while offering novel insights into the effectiveness of contract-based approaches in enhancing supply chain performance and reducing financial and operational risks.Conclusion discuss the results of this work and management insights that derives from this analysis.
Current infrastructure construction is the key of the national policy, along with the expansion of business areas, branch subsidiary is more, the traditional enterprise management system more difficult to adapt to the subsidiary, branch, distribution is more decentralized management needs of enterprise, the management of construction enterprises difficult to ascend, mainly reflected in operation of separation of goods. Financial sharing center is one of the methods to promote the integration of industry and finance and improve the efficiency of enterprise management. The cost accounting process is an important business process in the construction process. This paper optimizes the cost accounting business process of construction enterprises based on the financial sharing center, so as to improve the informatization and standardization level of construction enterprises, enhance the integration level of industry and finance, and improve the efficiency of cost management.