Advanced Search
MyIDEAS: Login to save this paper or follow this series

What is Business Entropy

Contents:

Author Info

  • Michael Louis George

    ()
    (Institute of Business Entropy)

Abstract

Entropy was first glimpsed in 1824 when Sadi Carnot, son of the Prime Minister of France, observed that steam engines wasted 97% of their heat energy, and wondered how efficient they could be. An engine works by drawing in heat energy Hi from gasoline and exploding it at high temperature Ti, that energy in the gas then pushes on a piston to turn a crankshaft and do useful work, but an amount of the heat energy Hw is wasted to the environment at temperature Tw , which is about 70F (25C) In 1850 Rudolph Clausius found a mathematical expression for Carnot’s ideas. Clausius found that the ratio of heat to temperature could at best be constant, and he called this constant Entropy. Businesses purchase material and labor, apply them in a manufacturing or service process to create useful products and services. Inevitably business processes must waste some money on effort not really of benefit to customers such as warehouses, quality defects, obsolescence, etc. Is there some minimum amount of waste in a business process? Can we find an equation for this waste similar to that of Clausius that may tell us how to reduce the waste? A practical procedure for necessary data collection is defined which will allow management to predict cost reduction due to process improvement. Additional case studies will test the validity of this Equation of Cost Reduction in which academics are invited to participate.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: ftp://ibe.hostedftp.com/~ibe/econ/RePEc/PDF/What_is_Business_Entropy.pdf
File Function: First version, 2008
Download Restriction: no

Bibliographic Info

Paper provided by Institute of Business Entropy in its series Working Papers with number 0604.

as in new window
Length: 26 pages
Date of creation: Aug 2008
Date of revision:
Handle: RePEc:geg:wpaper:0604

Contact details of provider:
Web page: http://www.entropy2718.com

Related research

Keywords: Equation of Projected Cost Reduction; Process Entropy; Information; Complexity; Waste; Little’s Law; Shannon; Boltzmann; Carnot;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:geg:wpaper:0604. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael L. George).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.