Introduction & Overview

Paulus Tangkere
Systems Thinking
Session 1
 Course Goals pt

This course is designed to develop a basic

knowledge of concepts important in systems
thinking, facility with Vensim dynamic
simulation software, and basic evaluation of
dynamic simulation models.
 Course Objectives pt
• To develop understanding on the basic philosophy
(values, beliefs) of modeling using systems thinking.
• To improve skills in applying tools to better
understand systems behaviors and facilitate their
mathematical modeling.
• To gain experience in developing both the decision
making models and generating solution alternatives
using Vensim software to fulfill the needs of decision
makers.
 Industrial Engineering pt
• What is? (IIE official definition)
Industrial engineering is concerned with the design,
improvement and installation of integrated systems
of people, materials, information, equipment and
energy. It draws upon specialized knowledge and skill
in the mathematical, physical, and social sciences
together with the principles and methods of
engineering analysis and design, to specify, predict,
and evaluate the results to be obtained from such
systems.
 System pt
“… is a group of people, things and/or ideas
connected by some common reason or
purpose, that is clearly differentiated from its
surroundings, and which has attributes or
properties that are different from those its
members have individually, and the belonging
to which alters those members in some
way…..as perceived or conceived by an
individual human being.”
(Hicks, 1991)
 Systems Thinking pt
A way of viewing the world, which
• Realizes the realities of a system, which is
– An entity that maintains it existence through the
mutual interaction of its parts, and requires
• Anasynthesis, an integration of analysis and
synthesis, and demands
• Seeing and acting in a manner which considers
the trees, the forest, the intentioned actions,
and their implications – helicopter view
• Using Iceberg Model
 Iceberg Diagram pt

Impact of
Change
Observable
Events

Hidden
Behavior

Structure
 Iceberg Diagram pt

Impact of
Change

React Events

Anticipate Trends & Patterns

Design Structure
 Case – Pro Tech pt

Overall Performance of Protech

Case – Pro Tech pt
Typical View
Case – Pro Tech pt
System View
Case – Pro Tech pt
System View
Case – Pro Tech pt
System View
 Case – Pro Tech
Differences
Typical
• Focus on symptoms, parts,
and department (silo)
• Problems viewed as an
independent
• Short-term focus
• Fix symptom and
perception in problem
solving
pt
System View
• Focus on root causes,
holistic, cross functional
• See cause and effect
relationships
• Balanced short and long-
term views
• Enables to work on higher
leverage solution –
redesigning the system
 Systems Thinking Road Map pt
• General Systems Theory – Ludwig von Bertalanffy (1937),
• General Systems Approach – Kenneth E. Boulding (1956),
• System Dynamics – Jay Forrester (1961),
• Viable System Model – Stafford Beer (1989),
• Systems Thinking as The Fifth Discipline – Peter Senge
(1990),
• Systems Thinking in Managing Chaos and Complexity
– Jamshid Gharajedaghi (1999),
• The Nature of Systems to Redesigning Society –
Russell Ackoff (2000).

15
 Syllabus pt
1. Introduction and Overview
2. Dealing with Real World
3. System Thinking Tools
4. Model Construction and Formulation
5. Generic Structures
6. Dynamic Modeling
7. Time and Dynamics
 Syllabus-cont pt
8. Common Behaviors and Structures in Systems
Thinking
9. System Leverage
10. Model Testing
11. Dynamic Model Presentation I
12. Dynamic Model Presentation II
13. Dynamic Model Presentation III
14. Review
 References pt
1. Sterman, John, Business Dynamics: Systems
Thinking and Modeling for a Complex World.
McGraw-Hill, 2000.
2. Senge, Peter M., The Fifth Discipline: The Art
and Practice of the Learning Organization.
Currency Doubleday, 1990.
3. Warren, Kim, Competitive Strategy
Dynamics. John Wiley & Sons, 2002.
4. Other relevant references.
 Vensim® pt
1. http://vensim.com/resources/ PLE Quick
Reference and Tutorial
2. www.youtube.com
3. www.slideshare.net
 Methodology pt
• Lectures
• Readings
• Case Studies
• Assignments
 Grading pt
• Midterm : 35%
• Final : 35%
• Others : 30%
– Assignments – individual and group
– Class Participation
– (Course) Session Summary
– Quiz – pretests and posttests
 Group pt
• Consists of max. 5 students
• Responsibilities
– Distributed
– Team
– Personal/Individual
• Internal communications
 Communication pt
ptforbu@yahoo.com

Format: kmk-nim/kel-tgs
kmk = kode mata kuliah
nim = nomor induk mahasiswa atau
kel = kelompok
tgs = nama tugas