Decision-Making System and Operational Risk Framework for Hierarchical Production Planning

Abstract

Business processes are designed to perform in an ideal environment where incidents that disturb regular working processes do not exist. However, this environment is fairly idealist, since business processes are affected by many different events, forcing changes in plans or solutions that allow for business continuity. In the context of hierarchical production planning, unexpected events, such as the lack of availability of materials, rush orders and faulty machines; have to be managed efficiently because they represent a risk for business continuity, depending on their impact and duration.  In this sense, operational risk management, supported by decision support systems, allow enterprises to have contingency plans that show the decision maker different ways to manage the specific event through rules that check the event’s impact and analyse provenance data stored in data warehouse. In the on-going research of inter-enterprise architecture, it has been labelled its main elements: framework, methodology and modelling languages. This paper proposes a decision-making and operational risk framework, looking for solutions that facilitate the decision-making process under the arrival of unexpected events that affect hierarchical production planning.