SYSTEMS

THEORIES

Systems theories 1
 Content

Systems theory

Hierarchical systems theory

Organizations theory

Systems dynamics

New theories

Systems theories 2
 1
Systems theories
Systems
theory

3
 Definition

The systems theory aims at the representation (modelling) of

what a system is, from a concrete or abstract point of view,
highlighting the global nature of the representation of the
system studied.

Systems theories 4
 The four precepts of the new discours de
la mthode (the talk about method)
(according to J. L. Le Moigne)
Descartes New talk

Well lead his reason : no Pertinence: On the basis of

doubt some explicit realities, question
what we want

Reductionism: consider the Globalism: The object to be

part as a whole understood is inserted,
immersed and active in a big
whole (environment)

Systems theories 5
 The four precepts of the new discours de
la mthode (the talk about method)
(according to J. L. Le Moigne)
Descartes New talk

Causalism: leading my Teleologism: The same causes

thought in order, beginning do not lead to the same effects
with the most simple objects
towards the most composed
pieces of knowledge

Exhaustivity Aggregativity

Systems theories 6
 The various contributions to the systems theory
BIOLOGISTS
VON BERTALANFY
Entropy of open systems

INGENEERS, MATHEMATICIANS
WIENER
Cybernetics
Feedback
VON NEUMAN
Automatons general theory and logic
FORESTER
Industrial dynamics

Systems theories 7
 The various contributions to the systems theory
PHYSICIANS
PRIGOGINE
Entropy
ASHBY
Law of the requested variety

ECONOMISTS
SIMON
Architecture of the complexity
Concepts arborescence
BOULDING

Systems theories 8
 Concept of system

A system is a set that constitutes an organic whole, i.e. a limited

set of elements with attributes and owning relationships.

An artificial system has finalities and objectives

A system has an environment

The interest of systems theory is to explicitly underline the

various relationships existing between the elements of the
whole, i.e. between the components of the system but between
the system and its environment as well.

Systems theories 9
 Example: types of relationships
within an organization

Technical relationships For more detail, see

Authority relationships
Human relationships
Economic relationships
Social relationships
Information relationships
Control relationships
Organization theory
chapter
Practically speaking, all
relationships cannot be
studied but all of them
must be taken into account

Systems theories 10
 Concept of system

A system has boundaries, that define its limits

The environment of the system is the set of elements that do not
belong to the system but that are able to affect its properties or
its evolution towards its objectives
A modification of the boundaries is able to modify the various
states that the system can state

Systems theories 11
 Other concepts

Variety of a system: number of different states that the system

can stand
Concrete system: system whose elements are physical (ex.:
hardware)
Abstract system: system whose elements are concepts (ex.:
software)
Dynamic system: system whose state evolves over time
Adaptative system: system able to maintain its evolution
towards its objectives

Systems theories 12
 Systems theory

To understand a system, it is necessary to define:

Its finalities and objectives

Its components: elements which compose the system and the
relationships between them
Its limits: identification of elements which do not belong to the system
Its interactions with its environment: types of relationships and
influences able to lead to modifications of the system
The functions that is provides
Its dynamics of evolution

Systems theories 13
 Systems theory
Some recommendations
Pertinence: In relation to some evidences, to get a questioning
behaviour : to question what we see
Globalism: The system is a part inserted, immersed and active in a
big whole (environment)
Teleologic (study of finality): The decomposition of a system begins
from the global
Agregativity: Understanding a system needs to be able to build a
synthetic representation of it
It is not possible to understand a system on a detailed model basis

Systems theories 14
 Evolution of thinking
towards systems theory

STRUCTURE

FONCTION

Paradigm of rational mechanics

Systems theories 15
 Evolution of thinking
towards systems theory

EVOLUTION

STRUCTURE

Paradigm of statistical mechanics

Systems theories 16
 Evolution of thinking
towards systems theory

EVOLUTION

STRUCTURE

FONCTION

Paradigm of structuralism

Systems theories 17
 Evolution of thinking
towards systems theory
E
N
V EVOLUTION F
I I
R N
O A
N STRUCTURE L
N I
E T
M E
E FONCTION S
N
T
System paradigm

Systems theories 18
 Typology

Processed Process Processed

Processor
Transformation:
Example in production: of form
Processed: product in space (transport)
Processor: machine in time (storage)
Process: production

activity

Systems theories 19
 BOULDINGs levels
K.E. Boulding (American economist while 60s) has proposed to
model complexity of systems thanks to a 9 level model.

Level 1: Level 2:
the passive object the active object

Systems theories 20
 BOULDINGs levels

Level 3: the active and Level 4:

regulated object the inquiring object

Information

Systems theories 21
 BOULDINGs levels

Level 5: the object decides Level 6: the object

about its activities has a memory

decisional
decisional processes
processes

memorization
processes

Systems theories 22
 BOULDINGs levels

Level 7: the object Level 8: the object imagines,

co-ordinates then self-organizes

Symbolic
information
generator

Decisional Imagination-
system design system

Decision-selection
system
Informational
system Information
system

Operating
Operating
system system

Systems theories 23
 BOULDINGs levels

Level 9: the object self-finalizes

Influence of
the environment Finalization
system

Intelligence-design
system

Decision-selection system

Information
system

Operating
system

Systems theories 24
 Notion of control
External Objectives
information
Control
system
Feed-back
Commands

Operating
Input Output
system

The control system gathers the decision and information systems

Notion of command
Notion of feed-back

Systems theories 25
 Example:
production system

Production
management
system
Manufacturing Feed-
order back

Physical Final
Raw materials
system products

Systems theories 26
 Application: Conceptual model
of a production system = GRAI model
Bouldings typology leads to a conceptual model of production systems
which decomposes any production system into three sub-systems:
physical system,
decisional system,
information system.

Infor Decisional
mation system
system Manufacturing order

Final
Raw materials Physical system
products

Systems theories 27
 Decision model
IMC model (Simon): Intelligence, Modelling, Choice

One model
Reality Manager (one image
of the reality)

Detected difference
(intelligence phase)

Planned actions,
estimated consequences To envisage other
To act on (choice phase)
actions or to
reality change models

Systems theories 28
 Application: AMS

The modular systems analysis (Analyse Modulaire des Systmes)

is a methodology (structured approach, language) for organizations
description: it enables to formulate and understand problems
(management, computerization, etc.)
AMS language and rules enables to describe an organism as a
system by crossing two dimensions
within the analysis: INPUT

- the first one oriented to Routes

Tools
Raw product
the organization of the system,
- the second one to control
Machining
and regulation relationships
Waste product Good part
OUTPUT

Systems theories 29
 Application: AMS
Second sketch of Representation of the
a technological module technological module -
control module couple
The shop receives programmes and
objectives, it exists measure criteria
of its performance
Information
INPUT about forge INPUT Raw
Tools and assembly Routes Tools product
ESSENTIAL ESSENTIAL
Routes Raw product
VARIABLES VARIABLES
Staff
Monthly Production assign.
Activity Tool
programme volume Activity
choice
Objectives Monthly

Variation
Machining Cost Tools
Workers
programme
Objectives Work Plan Machining Cost
Efficiency Quality shop
limits Efficiency
Lead-times Variation manager Lead
% waste limits times
Waste product Good part Information Good part
Information
about machines Waste product
OUTPUT about activity
breakdowns
OUTPUT

Systems theories 30
 Limits of the systems theory

To want to apply a general theory to a set of domains having

their own theory leads to a simplified, and even oversimplify,
vision of the reality

The strength of the theory is based on the assumption that a

system may be considered as a understandable whole. However,
the understanding of a complex system cannot be limited to
global vision of the reality through a macro-model

Systems theories 31
 Limits of the systems theory

The circular relationships between the whole and the parts

must be understood as an active path constituting the
description and the explanation

WHOLE PARTS

A complex system stays complex and the model is only a

simplification of the reality which do not solve the problem

Systems theories 32
 2
Hierarchical
systems
(and hierarchical
control)

Systems theories 33
 Classical vision of hierarchy

Command Feed-back

PHYSICAL SYSTEM

Systems theories 34
 The hierarchy: not a new concept:
automatic control
Self-organization

Adaptation

Optimization

Co-ordination

Regulation Regulation Regulation

Local Local Local
control control control

PHYSICAL SYSTEM

Systems theories 35
 The hierarchy: not a new concept:
discrete systems

Systems theories 36
 The hierarchy: not a new concept
discrete systems

Systems theories 37
 The hierarchy: not a new concept
discrete systems
Chariot A Synchronisation Chariot B

General structure

Systems theories 38
 Types of hierarchies
(Mesarovic)

Echelons: hierarchy based on the decomposition of the

controlled system

Layers: hierarchy based on the logical sequence of

treatment of control

Strata: hierarchy based on the various points of view

about the studied system

Systems theories 39
 The multi-echelons hierarchy

Echelon
Echelon = level of i+3
decomposition

Better understanding of the system

Echelon
The decomposition is

Higher level of detail

i+2

processed according to the

same point of view at all Echelon
i+1
levels

Echelon
i

Systems theories 40
 Decomposition based on the
organisation of resources

Factory

Higher
level of Section
detail

Load centre

Systems theories 41
 Decomposition based on the
organisation of resources (ex.: NBS model)
Broadcast network
Facility Facility

Machine Assembly Communications nodes 1

Shop
shop shop

Virtual Virtual 2
Cell
cell 1 cell N
3
Milling Inspection Work
Work station
work station work station station N

Milling Part Inspect. Part Robot Con-

Equipment Robot Robot Robot voyor
machine buffer machine buffer cart

4 5 6

Systems theories 42
 Decomposition based on the process
Technical Manufacturing
data order Follow-up

Raw material MANUFAC

TURE PART Manufactured part

Workers Machines

Technical Manufacturing Technical Manufacturing

data order # data Order ##
Follow-up
Follow-up

Raw material DRILL Part to MILL Manufactured part

manufacture

Operator Tool Operator Tool

diam. x diam. y
Drilling machine Milling machine

Systems theories 43
 Decomposition and structure
of the control system
Decomposition Control

Factory

Section

Load Centre

Systems theories 44
 A way to limit the volume
of handled information

Detail of the handled information (D)

Volume of the information: V

1
Limit V D.S

3
Space covered by the handled information (S)
(decision space )

Systems theories 45
 A way to limit the volume
of handled information

Example

Global
system D

s S

Systems theories 46
 A way to limit the volume
of handled information

Global Example
system
a
S/sys- S/sys- D
tem 1 tem 2
b

d
b

a
e S

Systems theories 47
 Co-ordination

To co-ordinate sub-systems is to influence them in a way

that they run and act harmoniously within the organization

Complex
system

Decom-
position

Co-ordination

Systems theories 48
 Co-ordination

Decisional
hierarchy

Level 3

Decisional unit Level 2

Co-ordination
Follow-up information

Level 1

Commands Follow-up

PHYSICAL SYSTEM

Systems theories 49
 Co-ordination

The co-ordination enables:

that each decisional unit works with a quantity of information

which be handled,

that each decisional unit solve its local problems

(decentralisation),

that local running is realized consistently with global

objectives.

Systems theories 50
 Recursiveness

Physical system
Global activity DC
Decision
Activity 1 Activity 2 system
DC1 DC2

DC

Physical
Recursive DC1 DC2 and
global
Activity 1 Activity 2 decision
vision
systems

Systems theories 51
 Levels characterisation

Product Activity Product

Minimal model of a
production activity
Resource

The decision space can be described according to:

products,
resources,
activities,
time

Systems theories 52
 Pyramid of the production data aggregation
[GALLOIS, CAP SESA TIME
INDUSTRIE, AIP project, 1989]

PRODUCTS FAMILY ACTIVITY

LT
FINAL PRODUCT (macro-bill of materials)PRODUCTION UNITPHASE (macro-route)
or MAIN ARTICLE MT
ARTICLE (bill of materials) LOAD CENTRE SUB-PHASE (route)

ALLOCATED ARTICLE (kit) ST OPERATION (detailed route)

LOAD STATION
PART (real bill of materials) VST GESTURE (operation mode)
DETAILED LOAD STATION

P
R RT P
O WORK STATION R
D O
U C
C E
T S
S RESOURCES S
Systems theories 53
 The multi-layers hierarchy

Decisional system
Each level controls all the Dn
elements which are situated on
Xn-1
lower layers
X2
D2
Each level receives from upper
X1
layers information which must be
D1
used (logic of processing)

P
Physical

Systems theories 54
 Example of multi-layers hierarchy

SELF-ORGANIZATION
In automatic
control: ADAPTATION

OPTIMIZATION

CO-ORDINATION

REGULATION

PROCESS

Systems theories 55
 Example of multi-layers hierarchy

MASTER PRODUCTION SCHEDULE

In production
management: REQUIREMENT PLANNING

LOAD PLANNING

SCHEDULING

DISPATCHING

PHYSICAL SYSTEM

Systems theories 56
 Combination of the two types of hierarchies
Strat. plan
Example: Whole production system

MPS 1 MPS 2 MPS 3

Workshop 1 Workshop 2 Workshop 3

Requirement Planning
Workshop

Scheduling 1 Scheduling 2
Cell 1 Cell 2

DNC 1 DNC 2
Machine-tool Machine-tool

Systems theories 57
 The multi-strata hierarchy

Stratum: specific view of the object

All strata represent the same object but with different points of
view

Systems theories 58
 Example of multi-strata hierarchy

Example:
COMPOSITION
Text
generator
machine
SENTENCES

WORDS

SOUNDS

Systems theories 59
 Example of multi-strata hierarchy
Application level
Example: OSI
Architecture Presentation level
(Open System
Information) Session level

Transport level

Network level

Connection level

Physical level

INTERCONNECTION
PHYSICAL SUPPORT
Systems theories 60
 Hierarchical systems theory
The ten Mesarovics decomposition rules
Rule 1: the decomposition of system at a given level, depends on the observer,
of his knowledge and of his interest in the system

Rule 2: the context within which a system operates at a given level of

decomposition, is generally independent of the context of the other levels:
principles and rules that rule the considered level are not linked to ones of the
other levels

Rule 3: it exists an asymmetric dependence between the inter-levels running

relationships

Rule 4: each decomposition level has its own set of concepts, elements and
principles (see rule 1)

Rule 5: the understanding of a system increases when going towards the

highest levels of decomposition; when going downwards, more and more
detail is obtained by decomposition

Systems theories 61
 Hierarchical systems theory
The ten Mesarovics decomposition rules
Rule 6: it is essential for a multi-levels hierarchical system to run that each
decision centre has its own decision domain (see rule 4).

Rule 7: the decision centre at the highest level is concerned by a larger part
and the widest aspects of the behaviour of all the system. This shows that the
decision centres at a higher level take into account a longer time horizon than
lower levels.

Rule 8: the period of decision making of a centre of a higher level is longer

than the one of decision centres of a lower level in order to co-ordinate the set
of dependent centres.

Systems theories 62
 Hierarchical systems theory
The ten Mesarovics decomposition rules

Rule 9: a decision centre of a upper level is concerned by the slowest aspects

of the behaviour of the system. This is a consequence of the fact that a upper
level is concerned by the behaviour of the whole system, at a longer decision
making horizon. The upper level cannot react to variations quicker than the
lower level. Then that means that reactions have to be adapted to the
considered level.

Rule 10: Problems are less structured at higher levels with a larger degree of
uncertainty

Systems theories 63
 Hierarchical systems theory
A decision unit controls lower Co-ordination links
Upper
decision
levels by giving them local unit

objectives which sometimes

may be in conflict. Two cases:
Lower Lower Lower
absence of interactions: no decision decision decision
unit unit unit
problem
interaction: need to reduce
conflicts Controlled Controlled Controlled
sub process sub process sub process

To do so, three co-ordination principles:

model-driven co-ordination
criterion-driven co-ordination mixed co-ordination
Systems theories 64
 Model-driven co-ordination

i: interaction calculated by the 1 = 1(1,2)

D0
2 = 2(1,2)
co-ordinator 1 2

m(): sub-system control calculated +

- -
+

from i
D1 D2
ui: real interactions
m1 m2
u1
The optimum is obtained P1 P2
when i = ui, i u2

i is searched in order to get i = i ui = 0, i

The model-driven co-ordination is adapted to sub-systems the

model of them are enough to interpret interactions. Then, the co-
ordinator can solve the conflicts.
Systems theories 65
 Criterion-driven co-ordination

i: interaction necessary to sub- 1 = 1(1,2)

D0
2 = 2(1,2)
systems to obtain local
optimums. Calculated from
1 2
ui: real interactions 1 2
D1 + + D2
- -
is searched in order to get m1 m2
u1
i = i ui = 0, i P1 P2
u2

The criterion-driven co-ordination is adapted when models of co-

ordinated sub-systems are not enough to interpret interactions.
Then, it is necessary to compare the results obtained with ones
foreseen by the controlled sub-systems.

Systems theories 66
 Conclusion

Hierarchical systems theory facilitates complex problems

solving by decomposing them into sub-problems

The definition of sub-systems and of associated sub-

objectives is important. Higher is the number of sub-systems,
greater is the complexity of co-ordination

Systems theories 67
 3
Systems theories
Organizations
theory

68
 Henry Mintzbergs contribution
(American sociologist)

H. Mintzberg lists the set of relationships that may exist within an

organization:

Technical relationships: decomposition of work into

elementary tasks, workers specialization
Authority relationships: command unit, direct supervision
Human relationships: a person is not considered as a machine
anymore, orders are not commands anymore but the result of
negotiations

Systems theories 69
 Henry Mintzbergs contribution
(American sociologist)

Economic relationships: units regrouped into economic poles

Social and power relationships: conflicts meant by each actors
interests
Information relationships: communication network, formalized
or non formalized information
Control and regulation relationships: flows regulation,
response to an event

Systems theories 70
 Co-ordination

H. Mintzberg defines six co-ordination principles to be

applicable in relation with the complexity of the work to be
co-ordinated:

1. Mutual adjustment: informal communication between

operators. It realises work co-ordination by a simple
informal communication. Because of its simplicity, mutual
adjustment is naturally utilised in the most simple
organizations

O O
Operator Operator

Systems theories 71
 Co-ordination

2. Direct supervision: command transmission by the upper

unit. It is the co-ordination mechanism by which somebody
has the responsibility of the others work.
C

O O

3. Work process standardization: transmission of a work

method to realize the commands. Work processes are
standardized when the contain of the task is specified or
programmed

Systems theories 72
 Co-ordination

4. Results standardization: transmission of results expected by

the upper unit. Within the result standardization (or product
standardization), the operator can choose the method of work
5. Qualifications and knowledge standardization: transmission
by the upper part of the knowledge that enables the lower part
to know which results are expected and which process must be
followed to provide them. Qualification and knowledge are
standardized when the operators training is specified
6. Specifications standardization: transmission of action limits
within which the lower part may act to realize the commands
of the upper part

Systems theories 73
 4
Systems theories
Systems
dynamics

74
 Generalities
Objective: build a dynamic model of the studied system in
order to simulate its evolution

History: Invented during 60s by J.W. Forrester (MIT), systems

dynamics was used to model the evolution of urban systems,
the American economical system, etc.

Approach: The modeller builds first a causal diagram

(qualitative) that is detailed and quantified afterwards
(Forresters diagram). Secondly, initial value and evolution
equation are defined for each variable of the model. The
Dynamo language enables then to make the model evolve.

Systems theories 75
 Open / closed systems
The boundary insulates the elements belonging to the system
from the environment within which the system is plunged.

The components of the environment may act on the

components of the system and vice-versa (open system).
These actions are: - cause-effect relationships,
- linear,
- unidirectional.

The relationships between components of the system are

specific because of the existence of feed-back loops.

Systems theories 76
 Feed-back loop
In any feed-back loop, the results of an action or a
transformation are sent back as inputs of the system in the
shape of data (feed-back information).

Feed-back

Input System Output

POSITIVE NEGATIVE
FEED-BACK FEED-BACK

Systems theories 77
 System modelling

The modeller must choose the elements of the system that he

wishes to keep and the relationships between them.

This choice is related to the modeller and his objectives.

In the model, the elements that are kept appear in the shape of
variables.

Systems theories 78
 Causal diagram
If a variable A has an influence on a variable B, is written:
AB

If an increase in the variable A leads to an increase in the

variable B, is written:
A + B

If an increase in the variable A leads to a decrease in the

variable B, is written:
A - B

Systems theories 79
 Causal diagram
The causal diagram is constituted:
of the set of variables kept by the modeller,
of the relationships between these variables:
- cause to effect relationships
- correlation relationships (without cause to effect
relationship)

The causal diagram is a qualitative model

A A +
Simple B D D Complex
B
causal - causal
E -
structure C C structure

Systems theories 80
 Endogenous / exogenous variables
The behaviour of endogenous variables (or dependent or to be
explained variables) is defined by the system itself.
They cannot be modified directly from outside the system.

The exogenous variables (or independent or explicative

variables) can be modified directly from outside the system.

Environment
System

Exogenous variables
Endogenous variables

Systems theories 81
 Positive feed-back
Positive feed-back is talked about when the results sent back to
input facilitate and speed up the transformation in the same
way than previously.

The effects are then cumulated with the previous ones.

A positive feed-back leads the system to explode or to be blocked.

+ Life cost Explosion

+ Starting
Prices + Salaries situation
+
Production costs + Blocking time

Systems theories 82
 Negative feed-back
Negative feed-back is talked about when the results sent back to
input thwart the influence of the initial situation.

The system is led to stabilization.

A negative feed-back leads the system to a balance position that

may never be reached. It leads to an adaptative or finalized
behaviour.

+Population Starting situation

-
Birth - Food / person Balance
+
Birth rate Starting situation time
+
Systems theories 83
 Coexistence of feed-back loops
In every system, and then in any causal diagram, negative and
positive feed-back loops coexist, defining so the behaviour of
the system which depends on the dominant loop.

+
Population

+ Population
-
Birth Food / person
+ +
-
time
Birth rate +

Systems theories 84
 Forresters diagrams
(flows and levels diagrams)
Once the causal diagram is built (qualitative), the modeller builds
up a quantified model, called Forrester's diagram.
Variables are classified in level variables, flows variables and
auxiliary variables.

According to Forrester, by analogy with hydrodynamics systems,

every system may be compared to a set of tanks linked by
channels where flows (information, energy, matter, money)
circulate.

Gates control the run.

Systems theories 85
 Forresters diagrams: levels

Levels represent the accumulation of results of decisions made

beforehand (may be compared with level reached by a liquid
into a tank).

A level is symbolized by a rectangle

A level varies through the medium of flow variables (or rate

variables)

Input Flow (IF) Level Output Flow (OF)

Systems theories 86
 Forresters diagrams: levels

The state of a level may be represented by the following

equations:
t

NIV(t) = NIV(0) + (FE - FS)dt
0

Or:

NIV(t + t) = NIV(t) + t(FE(t) FS(t))

Systems theories 87
 Forresters diagrams: flows (or rates)

Flows (or rate) variables determine the variation of the levels of

the system.

They are represented as follow :

Systems theories 88
 Forresters diagrams: other concepts

Auxiliary variable: it represents a

step of a flow variable calculus

Source or well (emitter or receptor)

Information channel

Material channel

Constant

Information pick-up

Exogenous variable

Systems theories 89
 Forresters diagrams: example

Annual Births
production
Food / person
Population
Quantity of
available food
Deceases

Systems theories 90
 5
Systems theories
New
theories

91
 Fractal approach

The system is composed of elements called fractals

A fractal may correspond to a macroscopic or microscopic view

The fractal approach is integrated: all levels are concerned and
have a responsibility
The fractal approach is multi-directional: it concerns the
structure of the system, its objectives, etc.

Properties:
Self-similarity: the structure of the fractal is not the matter, if the
input and the objective are the same, then the output is the same
Self-organization: the hierarchy is not the matter, all problems may
be solved at all levels.

Systems theories 92
 Bionic approach

The system is considered as a autonomous distributed system

The system gathers a set of components hierarchically organized
(processing a function) that are composed of cells (activities)

The autonomous distributed system is compared to a human

being
Each component is considered as an organ
Each organ is composed by cells

As for the human body, the work of cells within the organs and by
organs within the system is processed and co-ordinated through
operations

Systems theories 93
 Holonic approach

A holon is a co-operative autonomous agent (ex.: assembly

holon)
A holon has a high level of autonomy and intelligence
The function of a holon is object transformation
Several holons co-operate within a holonic system of
production:
- information holon,
- manufacturing holon,
- assembly holon,
- transport holon

Systems theories 94