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               play to their capabilities  from  each and  every perspective  with  full  sense  of fulfilment  and  satisfaction
               (Yamada, 2002).
               In  the  PSIM  project  (Van  Eijnatten,  Ed.,  2002)  both  a procedure  and  dedicated  software  were  devel-
               oped  and tested in five companies  in Europe, Japan and the US. The PSIM participative simulation pro-
               totype  (Little  et  al.,  2001; Bovenkamp  et  al.,  2002)  supports  companies  in  developing  new  organiza-
               tional  structures  in  which  humans  can  perform  healthier  and  better.  The  participating  companies
               evaluated PSIM positively as a 'breakthrough'  innovation in the field of business and work.

               A virtual plant environment (Goossenaerts et al., 2002; Matsuo & Matsuoka, 2004; Shin et al., 2004) is
               an advanced  information  environment that supports operations, decision-making and transformations  in
               the  factory.  The  drivers  for  the  decision-making  increasingly  stem  from  the  public  domain  and  are
               characterized  by  a  growing  range  of  concerns  such  as  quality,  safety  and  health,  environment friend-
               liness, security, etc.  In the ideal case, the objectives  or functional  requirements that govern the  factory's
               evolution  are  aligned  with  economic  and  sustainability  objectives  for  capital  assets  in  the  ecosystem.
               The  integral  effect  of this  alignment  activity  on the  factory  is  mediated  by  the reflective  activities  of
               governance, management,  and design & analysis.
               Factory  governance  systems  that  adhere  to  the  principles  of  Socio-Technical  Systems  Design  -  pre-
               dominantly  autonomy  and  self-regulation  -  are  better  harnessed  to  align  factory  operations  with  the
               evolving  development  goals  articulated  in the ecosystem.  It is a challenge  to  find  a proper balance be-
               tween  self-regulation  by  human  agents  and  control  by  enacted  systems.  In this paper  the  relationship
               between  ecosystem  development  goals  and  reflective  activities  in  the  factory  are  explored.  On  both
               sides,  interesting  insights  are  gained.  Factory  Governance  requires  an  intensive  collaboration  among
               agents at the scales of human, business and the public domain. A comprehensive methodology to derive
               human  profiles  that  can  support human  operations with  shifting  objectives  in advanced  factory  govern-
               ance  systems  draws  on  three  bodies  of knowledge:  (i)  Institutional  Analysis  and  Development  (IAD)
               Framework  (Ostrom,  1990/1994);  (ii)  A  Decomposition  Approach  for  Manufacturing  System  Design
               (Cochran et al., 2001); and (iii) A Decisional Reference  Model.

               It  is assumed that  a management  activity  derives new objectives  for governing  activity  systems  (in the
               factory) that it can influence  by choices for certain decision variables.


               ECOSYSTEM, CAPITAL, AND INDICATOR   SYSTEMS

               The  firm  exists  in  an ecosystem. The economic behavior  of firms  and other agents and the  distribution
               of assets  among  them  involve  mechanisms  that  allocate  society's resources  among their many  alterna-
               tive uses. Whereas the ecosystem  is not  as designable  as the firm, approaches  exist to make  it intelligi-
               ble, as regards  its links to resources  and capital,  and to influence  the ways in which  capital  is  affected
               by it. An example of such an approach is the Institutional Analysis  and Development  (IAD)  framework
               (Ostrom,  1990). IAD  is a framework  for  designing  policy  experiments,  empirically  tested  theories  and
               models  linking  institutions  and  the  sustainability  of  common-pool  resource  systems  (Ostrom  et  al.,
               1994). The IAD framework  has a systematic theoretical focus  on the impact of rules and norms on indi-
               vidual  incentives  in  complex  ecological-economic  systems  and  accounts  for  dynamic  system  interac-
               tions  at  multiple  tiers  of  analysis.  In  the  variant  of this  framework  that  Rudd  (2004)  developed,  five
               types  of capital assets  are  specifically  included: Natural  Capital,  Manufactured  Capital,  Human  Capi-
               tal, Social Capital, and Financial  Capital.

               Each capital asset is composed  of a 'stock'  that provides a 'flow'  of value, goods  and services that peo-
               ple  can use to help  them  meet  objectives  and  achieve  their  aspirations.  The flow characteristics  of the
               different  kinds of capital vary strongly. Financial Capital  for  instance represents obligations, and is liq-
               uidated  as money  for trade, and owned by legal entities. Capital assets are the primary referent  for indi-
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