System Dynamics principles

System perspective
• Broad perspective
– Bird’s eye view vs worm’s eye view
• Multi-disciplinary approach
– Narrow vs wider perspective
• Multi-stakeholder view
– Unitary vs multiple interest view
 System
• The system is the problem
• The problem is an undesirable behavior
pattern that persists over time.
• Includes all the components that participates
and affects the directly or indirectly the
problem
 Dynamic view
• Interactive interdependent parts
– Static vs reactive view
• Time perspective
– Short term vs long term goals and pressures
• Feedback and learning
System Change
 Behavior in SD problem
• IS NOT the actions that one observes
• IS NOT the attitudes of people
• IN System Dynamics, behavior is the shape of the
graph of the a particular variable.
• It involves slopes or rates of change and the
changes in the slopes and points of inflections,
maximum and minimum points.
• It becomes problem variable if it performs in an
undesirable way.
 Problem = System
• IN System Dynamics,
• The system is not only made up of components
that work together to achieve a goal.
• The system should work together to achieve the
goal but does not seem to achieve it.
• Thus, the system also includes the components
that prevent it from achieving its goals.
Why doesn’t the system achieve its goals?
• Its components cannot perform sufficiently to achieve the
goals.
– They have insufficient capacity.
• Its components or subsystems do not have the same goals.
– They have conflicting goals.
– They have competing goals.
• There is lack of coordination between the parts.
– This can be due to time delays.
– This can be due to inaccurate information.
– This could be due to different interpretation of information.
 Insufficient capacity
• Newly hired workers will not achieve the
expected target productivity levels and will
normally commit errors.
• Used buses and cars, as well as second hand
industrial equipment, will run inefficiently, have
more frequent breakdowns and will consume
more fuel.
• EDSA and C5 will always have traffic congestion.
Why?
 Conflicting goals
• Students want high grades, easy exams and few
assignments. Teachers aim for learning and more
evidences of real learning (not simple exams).
• Workers want little work and high salaries while
company owners minimize costs including labor
costs.
• Government simply wants vaccinated people
while people hesitate because they doubt
efficacy that may cause death.
 Competing goals
• All drivers want to reach their destinations ahead so
they tailgate and take all available space causing
swerving.
• Executives and politicians put down the others so they
can get the position.
• Students want to enjoy time with their friends and
sacrifice time for study. They can also spend their
money on nice shoes but not on books!
• Preventing success when there is only a single reward –
success of one means the failure of the other
 Time delays
• A lag time that may involve random events such
as accidents and long repair time  delay the
arrival of goods or information  missing a flight
• Natural time spent for processing such as long
cooking time or meetings and decisions  longer
waiting time for the customer and dissatisfaction
• Designed processes such as routine approvals or
consensual meetings for decisions  delayed
projects and the competitor gets ahead
 Inaccurate information
• Wrong samples or wrong data collection
process  wrong conclusions
• Fake news (intentional?) wrong decisions
 Interpretation
• Is globalization – lower tariffs and free trade –
good for local businesses?
• Is China a friend or a foe?
 System
• Components
• People/departments who do a task or an activity
• People who react and behave
• People who make decisions
• Machines that operate or become inoperative
• Materials and machines that are not available
• Information that leads to reactions and decisions and
behavior
• Time delays
• Policies and rules
• Costs and other consequences
 Dynamics and structure
• Information causes a decision and later action
• Action also creates information
• Interaction of subsystems or decision makers

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Dynamics causes the problem

Events

Behavior

 solution: prevention of
the events is by changing
Structure
the structure