Qualitative Analysis

Mapping the structure

Qualitative Analysis
 First step in SD modeling
 Involves system conceptualization
 Establishes the components and boundary of the
system
 Foundation step of the structure of the system
 Identifies the relevant causal variables
 Establishes the direct relationships between variables
 Provides the insight and rationale to the variables
and their relationships
 Develops the feedback loops
Variables

 Quantities that rise and fall

– Population, inventory, blood pressure, stress,
effort, ideas, delay
– NOT: planning, culture, ergonomics, feelings
 Quantities that are measured or are
theoretically measurable
– Savings, profit, temperature, distance
– Satisfaction, reputation, love
 Variables
 Quantities with units or dimensions
– Population (persons)
– Inventory (units)
– Blood pressure (millimeters of mercury (mmHg)
– Ideas (number of ideas)
– Effort (intensity of effort or hours worked)
– Stress(Social Readjustment Rating Scale, heart rate,
relative intensity of the feeling)
– Try: counts such as number of attempts
– In general: invent units for intangible factors
Causal relationships
 Influence: major factor
 Affect: minor factor
 Dictate: only factor
 Govern: programmed reaction based on
selected factors
 Represented by an arrow:
– Cause: tail of the arrow
– Effect: head of the arrow
Causal variables of the problem

 Identify the relevant variables affecting

or governing the problem variable
based on
– Empirical evidence: interviews or literature
– Theoretical evidence: research theories
– Logical evidence:
– Mathematical evidence:
Performance: empirical
Motivation: theoretical
Fear: Logical
Expected no. of people to be laid off

Fear to be laid off

Risks taken in the job

Total crime: Mathematical

Crimes against persons

Crimes against property Total crimes

Crimes against state

Guidelines for setting up
relationships
 Refer to the variables in the loop as
quantities that can rise or fall, grow or
decline, up or down. There is no need to
know how they can be quantified.
+
R&D technology
Vs
R&D researchers + new products
R&D researches processing time
-
Guidelines for setting up
relationships
Use nouns or noun phrases and not
verbs. The actions are represented in
the arrows.
Satisfied buy products
Vs
Satisfaction amount purchased
Satisfaction frequency of purchase
Guidelines for setting up
relationships
 Be sure that it is clear what it means to
say, “ a variable increases (decreases)
….”
Policy tourists
 If a link needs explanation,
disaggregate it and make it a series of
links.
No. of police security tourists
 No. of police sense security by
current tourists  perceived security by
potential tourists tourists
 News of kidnapping
 number of potential tourists
 News and publicity 
social media posts
Guidelines for setting up
relationships
Identify the units of the variables as much
as possible. If necessary, invent it.
 Technology = processing time (min.);
quality (% reject); accuracy (errors)
 Economy = GNP; employment rate;
risk rating, % satisfaction
 Satisfaction = no. of satisfied people;
satisfaction units
Guidelines for setting up
relationships
Phrase the variables positively.
 Low morale + low productivity

 Carelessness reject rate

 Misunderstanding Irresponsibility
Guidelines for setting up
relationships
 Do not interpret open loops as feedback
loops.
 The sign indicates whether the
succeeding variables increase (positive)
or decrease (negative), when the
previous variable increases.
 Keep diagrams simple to start with.
Guidelines for setting up
relationships
 Watch out for unintended effects.

Stocks customer satisfaction

storage costs

Incentives motivation
financial resources
Guidelines for setting up
relationships
Distinguish carefully between actual
values and perceived values.
Actual quality customer
Perceived quality loyalty

Actual waiting time Irritation/anxiety

Perceived waiting
time
Guidelines for setting up
relationships
When using a variable such as “actual
values”, look for corresponding “desired
values”.
 Actual price demand
acceptable price