Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no...

Preview:

Citation preview

Principles of Systems Dynamics

Modeling and Analysis

Principles of Systems Dynamics

Modeling and Analysis

Pål I. Davidsenpal.davidsen@geog.uib.noDepartment of Geography,

University of Bergen,N-5020 Bergen,

fax. 55 584107 tel. 55 584134

Pål I. Davidsenpal.davidsen@geog.uib.noDepartment of Geography,

University of Bergen,N-5020 Bergen,

fax. 55 584107 tel. 55 584134

Knowledge elicitation

Knowledge elicitation

Problem identification

Problem identification

Problem solving

Problem solving

ManagementManagement

Knowledgedissemination

Knowledgedissemination

System DynamicsSystem Dynamics

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

Backlog

Backlog Management

ExpOrdRate 1RepairRate2DesRepairRate3OrderRate4

0 50 1001.000

1.050

1.100

1.150

1.200

1 2 3 4

1

2

3

4 12

3

4

a.

ExpOrdRate 1RepairRate2DesRepairRate3OrderRate4

0 50 1001.000

1.050

1.100

1.150

1.200

1 2 3 4

1

2

3

4 12

3

4

Backlog1DesBacklog2

0 50 1004.000

4.500

5.000

5.500

1 2

1

2

1

2

b.

StructureStructure

EventsEvents

BehaviorBehavior

Structure(underlying causes)

Structure(underlying causes)

Events(symptoms)Events

(symptoms)

Behavior(dynamics)

Behavior(dynamics)

Structure(underlying causes)

Structure(underlying causes)

Events(symptoms)Events

(symptoms)

Behavior(dynamics)

Behavior(dynamics)

Dec

isio

n

Dec

isio

n Making

Making

Structure(underlying causes)

Structure(underlying causes)

Events(symptoms)Events

(symptoms)

Behavior(dynamics)

Behavior(dynamics)

Dec

isio

n

Dec

isio

n Making

Making

Polic

yPo

licy D

esign

Design

Structure(underlying causes)

Structure(underlying causes)

Events(symptoms)Events

(symptoms)

Behavior(dynamics)

Behavior(dynamics)

Polic

yPo

licy D

esign

Design

StructureStructure

BehaviorBehavior

Polic

yPo

licy D

esign

Design

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

Stra

tegy

Stra

tegy

Developm

ent

Developm

ent

Point of Departure:

Problem behavior

Point of Departure:

Problem behavior

t

t

Identify:

Underlying Problem Structure

Identify:

Underlying Problem Structure

t

Identify:

NewSolution Structure

Identify:

NewSolution Structure

t

t

t

Goal:Desired behavior

t t

t t

NewSolution Structure

NewSolution Structure

Underlying Problem Structure

Underlying Problem Structure

Desired behaviorProblem behaviorProblem behavior

HypothesisDevelopment & Testing

Stra

tegy

Stra

tegy

Developm

ent

Developm

ent

=>

System dynamicsa

problem-orientedmultidisciplinary

approach

=>

System dynamicsa

problem-orientedmultidisciplinary

approach

t

Underlying Problem Structure

Underlying Problem Structure

Problem behaviorProblem behavior

The model shouldgenerate

the original behavior

for the right reasons

The model shouldgenerate

the original behavior

for the right reasons

t

NewSolution Structure

NewSolution Structure

Desired behavior=>

The model willgenerate

the desired behavior

for the right reasons

=>The model will

generate

the desired behavior

for the right reasons

t

The model shouldexplain

not “just”predict

The model shouldexplain

not “just”predict

t

tt

The model must constitute a

causal feedback theory

The model must constitute a

causal feedback theory

Stra

tegy

Stra

tegy

Developm

ent

Developm

ent

BehaviorBehavior

StructureStructure

BehaviorBehavior

StructureStructure

BehaviorBehavior

StructureStructure

BehaviorBehavior

StructureStructure

BehaviorBehavior

StructureStructure

StructureStructure

BehaviorBehavior

System Dynamics:Identify, understand, and utilize

the relationship:

System Dynamics:Identify, understand, and utilize

the relationship:

StructureStructure

BehaviorBehavior

System Dynamics:Identify, understand, and utilize

the relationship:

System Dynamics:Identify, understand, and utilize

the relationship:

incomplex, dynamic systems

SS DD

ComplexityComplexity

SimplicitySimplicity

SS DD

RealismRealism

AbstractionAbstraction

RealismRealism

AbstractionAbstraction

It is better to find …It is better to find …

thanthan

… a satisfying solution to a problem that exists …… a satisfying solution to a problem that exists …

… an optimal solution toa non-existing problem

… an optimal solution toa non-existing problem

MaintainingRealism

MaintainingRealism

We must not onlymodel explicitly

“the plumbing of the system”

We must not onlymodel explicitly

“the plumbing of the system”

Make observations Form expectations

Establish attitudes

Act on incentives (decide)

We need to describe how we;We need to describe how we;

Actual Observed Confirmed Projected Desired Expected magnitudes

We need to differentiate between;

We need to differentiate between;

Petroleum Exploration

Perceived Perceived

ProductivityProductivity

ReportedReported

ProductivityProductivity

Estimated Estimated

ProductivityProductivity

ActualActual

ProductivityProductivity

Exploration EffortsExploration Efforts

DesiredDesired

DiscoveriesDiscoveries

Estimated Estimated

DiscoveriesDiscoveries

IdealIdeal

DiscoveriesDiscoveries

Petroleum Exploration

Perceived Perceived

ProductivityProductivity

NominalNominal

ProductivityProductivity

ReportedReported

ProductivityProductivity

Estimated Estimated

ProductivityProductivity

ActualActual

ProductivityProductivity

DesiredDesired

ProductivityProductivity

ProductivityProductivity

IncentivesIncentivesExploration EffortsExploration Efforts

DesiredDesired

DiscoveriesDiscoveries

Estimated Estimated

DiscoveriesDiscoveries

IdealIdeal

DiscoveriesDiscoveries

Petroleum Exploration

Perceived Perceived

ProductivityProductivity

NominalNominal

ProductivityProductivity

ReportedReported

ProductivityProductivity

Estimated Estimated

ProductivityProductivity

ActualActual

ProductivityProductivity

DesiredDesired

ProductivityProductivity

ProductivityProductivity

IncentivesIncentivesExploration EffortsExploration Efforts

DesiredDesired

DiscoveriesDiscoveries

Estimated Estimated

DiscoveriesDiscoveries

IdealIdeal

DiscoveriesDiscoveries

StructureStructure

BehaviorBehavior

System Dynamics:Identify, understand, and utilize

the relationship:

System Dynamics:Identify, understand, and utilize

the relationship:

incomplex, dynamic systems

ComplexityComplexity

Accumulation Accumulation FeedbackFeedback

Non-linearityNon-linearity

Complexitya synergy of

Complexitya synergy of

FeedbacksFeedbacks

Non-linearitiesNon-linearities

Accumulations ≡ Latencies / Delays

Accumulations ≡ Latencies / Delays

Accumulations ≡ Latencies/ Delays

Accumulations ≡ Latencies/ Delays

ComplexityComplexity

… the origin of dynamics… the origin of dynamics

Instantaneous causality

Causalityplaying out over time

0

t0 1

t0 1

In a causality thatspans time

nothing happens instantaneously

In a causality thatspans time

nothing happens instantaneously

0

t0 1

t0 1

Effects unfoldover time

Effects unfoldover time

900

Accumulations

distribute and form the effects of a change

across a system(in space)over time

Accumulations

distribute and form the effects of a change

across a system(in space)over time

InventoryProduction

RateShipment

Rate

A first order accumulation process (building up distance)

Manpower

Inventory

Hiring &Training Rate

ProductionRate

ShipmentRate

AttritionRate

A second order accumulation process (building up speed)

Manpower

Inventory

Trainers

Hiring &Training Rate

ProductionRate

ShipmentRate

AttritionRate

Training Cap.Building Rate

Training Cap.Decay Rate

A third order accumulation process (building up accell.)

Manpower

Inventory

Trainers

Hiring &Training Rate

ProductionRate

ShipmentRate

AttritionRate

Training Cap.Building Rate

Training Cap.Decay Rate

Manpower

Inventory

Trainers

Hiring &Training Rate

ProductionRate

ShipmentRate

AttritionRate

Training Cap.Building Rate

Training Cap.Decay Rate

Manpower

Inventory

Trainers

Hiring &Training Rate

ProductionRate

ShipmentRate

AttritionRate

Training Cap.Building Rate

Training Cap.Decay Rate

Manpower

Inventory

Trainers

Hiring &Training Rate

ProductionRate

ShipmentRate

AttritionRate

Training Cap.Building Rate

Training Cap.Decay Rate

Manpower

Inventory

Trainers

Hiring &Training Rate

ProductionRate

ShipmentRate

AttritionRate

Training Cap.Building Rate

Training Cap.Decay Rate

Multiple accumulations

introduceintransparency that leads us to

focus on short-term problems while ignoring

long-term benefits

Multiple accumulations

introduceintransparency that leads us to

focus on short-term problems while ignoring

long-term benefits

Multiple accumulations

introduceintransparency that leads us to

focus on short-term benefits while ignoring

long-term problems

Multiple accumulations

introduceintransparency that leads us to

focus on short-term benefits while ignoring

long-term problems

GainGain

Additional ComplexityAdditional Complexity

ReputationReputation

LossLoss

GainGain

Indicated Rep. > ReputationIndicated Rep. > Reputation

ReputationReputation

LossLoss

IndicatedReputationIndicated

Reputation

Time to GainReputation

Time to GainReputation

GainGain

Indicated Rep. < ReputationIndicated Rep. < Reputation

ReputationReputation

LossLoss

IndicatedReputationIndicated

Reputation

Time to LooseReputation

Time to LooseReputation

GainGain

Additional ComplexityAdditional Complexity

ReputationReputation

LossLoss

IndicatedReputationIndicated

Reputation

Time to LooseReputation

Time to LooseReputation

Time to GainReputation

Time to GainReputation

Latenciesand

the time over whichthe effects play out

are often misperceivedmore often

underestimated than overestimated

Latenciesand

the time over whichthe effects play out

are often misperceivedmore often

underestimated than overestimated

Stocks+

Flows

Stocks+

Flows

Backlog

OrderPlacement

Rate

OrderExecution

Rate

Inventory

ProductionRate

DeliveryRate

Cash

RevenueRate

PaymentRate

Personnel

HiringRate

AttritionRate

Capital

AcquisitionRate

DiscardRate

PaymentRate

DepreciationRate

BookValue

Capital

AcquisitionRate

DiscardRate

PaymentRate

DepreciationRate

BookValue

Capital

AcquisitionRate

DiscardRatePrice

PaymentRate

DepreciationRate

BookValue

Capital

AcquisitionRate

DiscardRatePrice

Annual Fraction Depreciated

Annual Fraction Discarded

IdentifiedReserves

DiscoveryRate

ProductionRate

Depreciation

Rate

BookValue

IdentifiedReserves

DiscoveryRate

ProductionRate

ExplorationExpenditures

Depreciation

Rate

BookValue

IdentifiedReserves

DiscoveryRate

ProductionRate

ExplorationExpenditures

Cum Production

Recovery Technology

Total Recoverable Resource Remaining(CumulativeProduction + IdentifiedReserves)*FractionRecoverable

-CumulativeProduction)

Depreciation

Rate

BookValue

IdentifiedReserves

DiscoveryRate

ProductionRate

Unit Exploration Expenditures

ExplorationExpenditures

Total Recoverable Resource Remaining

Recovery Technology Cum

Production

Depreciation

Rate

BookValue

IdentifiedReserves

DiscoveryRate

ProductionRate

Unit Exploration Expenditures

ExplorationExpenditures

Total Recoverable Resource Remaining

Recovery Technology Cum

Production

No stocks,no state

No stocks,no state

No stocks,no state

No stocks,no state

No flows,no dynamics

No flows,no dynamics

Stocksact asbuffers

they de-couple flows

Stocksact asbuffers

they de-couple flows

Stocksintegrate

flows

Stocksintegrate

flows

Debt

Import Rate Export Rate

Stocksintegrate

flows

Stocksintegrate

flows

Debt

Import Rate Export Rate

Debt

-Export Rate

Net Import Rate=

Import Rate

The Debt Model

Debt

0

t0 1

t0 1

-Export Rate

Import Rate

Debt

0

t0 1

t0 1

-Export Rate

Import Rate

Debt

0

t0 1

t0 1

Stocksconstitute

delays

Stocksconstitute

delays

-Export Rate

Import Rate

Just like driving a car .......Capital

Personnel

Shipments

Inventory

Exp. Demand

AttritionRecruitment

Acquisitions Phase-outs

Production

Adj. Exp.Demand

Market Demand

ComplexityComplexity

Dynamics Dynamics

DelayDelay FeedbackFeedback

Non-linearityNon-linearity

Delay

Distributes the effectof our efforts

through the system over time

Delay

Distributes the effectof our efforts

through the system over time

Price-+

DemandSupply

Perceived Shortages

+-

Delaydistributes the effect

of our effortsthrough the system over time

Delaydistributes the effect

of our effortsthrough the system over time

Price-+

DemandSupply

Perceived Shortages

+-

Delayobscures

the relationship betweencause and effect

Delayobscures

the relationship betweencause and effect

Price-+

DemandSupply

Perceived Shortages

+-

=>It is difficult to …

=>It is difficult to …

Price+

+

Perceived Shortages

Demand-

Supply

identify problems(what are their causes)

identify problems(what are their causes)

-

Price+

+

Perceived Shortages

Demand-

Supply

take effective actions(what do they cause)take effective actions(what do they cause)

-

Price-+

+

Perceived Shortages

Demand-

Supply

… and feedback ...

… and feedback ...

+… does not make it

less difficult… does not make it

less difficult

Price-+

+

Perceived Shortages

Demand-

Supply

A note on ...A note on ...

+… econometrics… econometrics

Price-+

+

Perceived Shortages

Demand-

Supply

A note on ...A note on ...

+

… the significance of

the time horizon

… the significance of

the time horizon

ComplexityComplexity

FeedbackFeedback

Non-linearityNon-linearity

Accumulation Accumulation

Accumulations ≡ Latencies/ Delays

Accumulations ≡ Latencies/ Delays

ComplexityComplexity

From the origin of dynamics to… From the origin of dynamics to…

FeedbackFeedback

ComplexityComplexity

Accumulations ≡ Latency/ DelayAccumulations ≡ Latency/ Delay

… circular causality … circular causality

Circular causality

leadus to reason in circles:

Cause becomes effectand

effect becomes cause

Circular causality

leadus to reason in circles:

Cause becomes effectand

effect becomes cause

This is why we need to say

Some change in Bleads to a change in A …

which over a period of time

leads to a change in B

This is why we need to say

Some change in Bleads to a change in A …

which over a period of time

leads to a change in B

A BA B

Price-+

+

Perceived Shortages

Demand-

Supply

SpeculativeDemand

+

+

SpeculativeSupply

-

-

- -

+++

Price-+

+

Perceived Shortages

Demand-

Supply +

SpeculativeDemand

+

+

SpeculativeSupply

-

-

- -

Price-+

Perceived Shortages

DemandSupply +

SpeculativeDemand

+

+

SpeculativeSupply

-

-

- -

+-

MoreFeedback

(FblExmpls)

Managementfrom a

System Dynamicsperspective

Managementfrom a

System Dynamicsperspective

Managementfrom a

System Dynamicsperspective

Strengthenfavorable loops

Managementfrom a

System Dynamicsperspective

Strengthenfavorable loops

Managementfrom a

System Dynamicsperspective

Strengthenfavorable loops

Weakenunfavorable loops

Managementfrom a

System Dynamicsperspective

Strengthenfavorable loops

Weakenunfavorable loops

Price-+

+

Perceived Shortages

Demand-

Supply

+

SpeculativeDemand

+

+

SpeculativeSupply

-

-

- -

++

Challenge:

What loops arefavorable or unfavorable

variesfrom one point in time

to the nextbecause …

Challenge:

What loops arefavorable or unfavorable

variesfrom one point in time

to the nextbecause …

Effects take timeEffects take time

Effects feed backEffects feed back

... not only do... not only do

Effects take timeEffects take time

Effects feed backEffects feed back

Effects also synergizeEffects also synergize

FeedbacksFeedbacks

Non-linearitiesNon-linearities

Complexitya composite of

Complexitya composite of

Accumulations ≡ Latency/ DelayAccumulations ≡ Latency/ Delay

ComplexityComplexity

FeedbackFeedback

Non-linearityNon-linearity

Accumulation Accumulation

Non-linearity

causes

the response to a change in a variable

to be conditioned bythe state

of the system…

Non-linearity

causes

the response to a change in a variable

to be conditioned bythe state

of the system…

Efficiency in Exploration

50

25

0 0.5 1Fract. Total Resource

Remaining Undiscovered

0

...(1) by the value of the variable itself.. ...(1) by the value of the variable itself..

Efficiency in Exploration

50

25

0 0.5 1Fract. Total Resource

Remaining Undiscovered

0

Non-linearity

causes

the response to a change in a variable

to be conditioned bythe state

of the system…

Non-linearity

causes

the response to a change in a variable

to be conditioned bythe state

of the system…

Z=

X * Yor

X / Yrather than

X + Y or X - Y

Z=

X * Yor

X / Yrather than

X + Y or X - Y

X Y

.. (2) by the value of other variables.. .. (2) by the value of other variables..

Subsystem I Subsystem II

Yield=

Investments * Productivity=

Investments*

Productivity From Technology*

Effect Of ExplorationOn Productivity

Yield=

Investments * Productivity=

Investments*

Productivity From Technology*

Effect Of ExplorationOn Productivity

Technology

ExplorationFinance

Investments

Productivity

Eff. Of ExplorationOnProductivity

To be continued ...

Cumulative

Identified Resource

Additions to

Total ResourceTotal Resource(TR)(TR)

UndiscoveredResource

(UR)

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

UndiscoveredUndiscoveredResourceResource

(UR)(UR)

Total ResourceTotal Resource(TR)(TR)

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

UndiscoveredUndiscoveredResourceResource

(UR)(UR)

Total ResourceTotal Resource(TR)(TR)

TechnologicalTechnologicalProgressProgress

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

UndiscoveredUndiscoveredResourceResource

(UR)(UR)

Total ResourceTotal Resource(TR)(TR)

TechnologicalTechnologicalProgressProgress

ExplorationExplorationProgressProgress

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

UndiscoveredUndiscoveredResourceResource

(UR)(UR)

Productivity From TechnologyProductivity From Technology==

Techn. DiscoverableTechn. DiscoverableResource Remaining (TDRR)Resource Remaining (TDRR)

//Undiscovered Resource (UR)Undiscovered Resource (UR)

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

UndiscoveredUndiscoveredResourceResource

(UR)(UR)

Total ResourceTotal Resource(TR)(TR)

Productivity From TechnologyProductivity From Technology==

Techn. DiscoverableTechn. DiscoverableResource Remaining (TDRR)Resource Remaining (TDRR)

//Undiscovered Resource (UR)Undiscovered Resource (UR)

TechnologicalTechnologicalProgressProgress

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

UndiscoveredUndiscoveredResourceResource

(UR)(UR)

Total ResourceTotal Resource(TR)(TR)

Effect of Exploration Effect of Exploration On ProductivityOn Productivity

==

Undiscovered Resource (UR) Undiscovered Resource (UR) //Total Resource (TR)Total Resource (TR)

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

UndiscoveredUndiscoveredResourceResource

(UR)(UR)

Total ResourceTotal Resource(TR)(TR)

ExplorationExplorationProgressProgress

Effect of Exploration Effect of Exploration On ProductivityOn Productivity

==

Undiscovered Resource (UR) Undiscovered Resource (UR) //Total Resource (TR)Total Resource (TR)

Yield=

Investments * Productivity=

Investments*

Productivity From Technology*

Effect Of ExplorationOn Productivity

Yield=

Investments * Productivity=

Investments*

Productivity From Technology*

Effect Of ExplorationOn Productivity

Technology

ExplorationFinance

Investments

Productivity

Eff. Of ExplorationOnProductivity

Yield=

Investments * Productivity=

Investments*

Techn. DiscoverableTechn. DiscoverableResource Remaining (TDRR)Resource Remaining (TDRR) //Undiscovered Resource (UR)Undiscovered Resource (UR)

*

Undiscovered Resource (UR) Undiscovered Resource (UR) //Total Resource (TR)Total Resource (TR)

Yield=

Investments * Productivity=

Investments*

Techn. DiscoverableTechn. DiscoverableResource Remaining (TDRR)Resource Remaining (TDRR) //Undiscovered Resource (UR)Undiscovered Resource (UR)

*

Undiscovered Resource (UR) Undiscovered Resource (UR) //Total Resource (TR)Total Resource (TR)

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

Yield=

Investments * Productivity=

Investments*

Techn. DiscoverableTechn. DiscoverableResource Remaining (TDRR)Resource Remaining (TDRR) //

Total Resource (TR)Total Resource (TR)

Yield=

Investments * Productivity=

Investments*

Techn. DiscoverableTechn. DiscoverableResource Remaining (TDRR)Resource Remaining (TDRR) //

Total Resource (TR)Total Resource (TR)

TechnicallyDiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

TechnicallyDiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

TechnologicalTechnologicalProgressProgress

ExplorationExplorationProgressProgress

…so thatnon-linearity

causes

effects to becomeblended

…so thatnon-linearity

causes

effects to becomeblended

=>=>Non-linearity

makes it difficult to

establish experiencewith respect to

underlying causes(diagnosis)

andleverage points, doses and timing

(treatment)

Non-linearitymakes it difficult to

establish experiencewith respect to

underlying causes(diagnosis)

andleverage points, doses and timing

(treatment)

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Non-linearitymakes it difficult to

utilize formal analysis

Non-linearitymakes it difficult to

utilize formal analysis

SS DD

RealismRealism

AbstractionAbstraction

It is better to be almost right(ca. 7.5) …It is better to be almost right(ca. 7.5) …

…precisely wrong(3.85564923557)

…precisely wrong(3.85564923557)

thanthan

Non-linearity

=>Endogenous

shifts in structural dominance

Non-linearity

=>Endogenous

shifts in structural dominance

Interdisciplinary analogies

Reality checks

Defining loops that serve a purpose

Interdisciplinary analogies

Reality checks

Defining loops that serve a purpose

Population

Population

Birth Rate

Birth Rate Death Rate

Population

RGF

Reference Growth Fraction

Birth Rate Death Rate

Population

RGF

Reference Growth Fraction

Birth Rate Death Rate

RGF*P

Population

RGF

Reference Growth Fraction

Birth Rate Death Rate

RGF*PRGF*P

Population

RGF

Reference Growth Fraction

Birth Rate Death Rate

C

RGF*PRGF*P

Carrying Capacity

Population

RGF

Reference Growth Fraction

Birth Rate Death Rate

P/C

Stress

C

RGF*PRGF*P

Carrying Capacity

Population

RGF

Reference Growth Fraction

Birth Rate Death Rate

P/C

Stress

C

RGF*S*PRGF*P

Carrying Capacity

Population

RGF

Reference Growth Fraction

Birth Rate Death Rate

P/C

Stress

C

RGF*P*P/CRGF*P

Carrying Capacity

Population

RGF

Reference Growth Fraction

Birth Rate Death Rate

RGF*P2/CRGF*P

Population

RGF

Reference Growth Fraction

Birth Rate Death Rate

RGF*P

+ -

Population

RGF*P2/C

5 000-

0

10 000-

0 10

+ -

5

Months

Population

+

NetGrowthRate

Pop

ulat

ion

0 50 100 150 200 2500

200

400

600

800

1,000

5 000-

0

10 000-

0 10

+ -

5

Months+

Population

5 000-

0

10 000-

0 10

+ -

5

Months

Infectious

+

Population

5 000-

0

10 000-

0 10

+ -

5

Months

Susceptible

Infectious

+

Population

Infectious

c * i * S/N * I

Susceptible

Net Recruitment Rate

- +

Prob Of Mtg. Susc. Hot Contacts Per Week

S/N c * I

Contact Frequency

c

Infectivity

i

RGF

Reference Growth Fraction

Population

Birth Rate Death Rate

P/C

Stress

C

RGF*P*SRGF*P

Carrying Capacity

-+

-

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate

c * i * I

Note:If the entire population

was susceptible,then all meetings with aninfections is potentially

a recruitment:

-+

-

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate

I/N

Growth Resistance

N

c * i * I

Total PopulationNote:

No more thanthe total population

Nmay become

infectiousi.e. the total populationis the carrying capacity

-+

-

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate Failed Recruitment Rate

I/N

Growth Resistance

N

c*i*I*GRc * i * I

Total PopulationNote:

The fractionI/N

of the populationhas already been infectedand a meeting between

such a personand

another infected does NOT contribute to

recruitment

-+

-

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c*i*I*I/Nc * i * I

N

-+

-

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c * i * I

Recruitmentunder the assumption that

the total population is susceptible

c*i*I*I/N-+

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c * i * I

Recruitmentunder the assumption that

the total population is susceptible

Recruitmentfailing because a fraction (I/N) of

the total population is not susceptible

c*i*I*I/N-+

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c*i*I2/Nc * i * I-+

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c*i*I2/Nc * i * I

Net Recruitment Rate

c * i * I - c*i*I2/N

-+

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c*i*I2/Nc * i * I

Net Recruitment Rate

c * i * I * (1 - I/N)

Recruitmentsucceeding because a fraction (1 - I/N)

of the total population is still susceptible

-+

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c*i*I2/Nc * i * I

Net Recruitment Rate

-+

c * i * I * (1 - I/N)

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c*i*I2/Nc * i * I

Net Recruitment Rate

-+

c * i * I * (1 - I/N)

Infectious

c*i*I2/N

Net Recruitment Rate

c * i * I -+

c * i * I * (1 - I/N)

Infectious

c*i*I2/N

c * i * I

Net Recruitment Rate

-

+

c * i * I * (1 - I/N)

Infectious

c * i * (1 - I/N) * I

Net Recruitment Rate

Infectious

c * i * (1 - I/N) * I

Net Recruitment Rate

InfectiousSusceptible

c * i * (1 – (N-S)/N) * I

Net Recruitment Rate

- +

InfectiousSusceptible

c * i * ((N – (N-S))/N) * I

Net Recruitment Rate

- +

Infectious

c * i * S/N * I

Susceptible

Net Recruitment Rate

- +

Infectious

c * i * S/N * I

Susceptible

Net Recruitment Rate

- +

Prob Of Mtg. Susc. Hot Contacts Per Week

S/N c * I

Contact Frequency

c

Infectivity

i

Infectious

c * i * I/N * S

Susceptible

Net Recruitment Rate

- +

Infectious

c * i * I/N * S

Susceptible

Net Recruitment Rate

- +

Prob Of Mtg. Susc. Hot Contacts Per Week

S/N c * I

Contact Frequency

c

Infectivity

i

Infectious

Net Recruitment Rate

c * i * I *S/N

Susceptible

Infectious

Potential Recruitment Rate Failed Recruitment Rate

(c * i) * I (c*i*I/N)*I

NOTE:Although the models are equivalent,

the positive and negative loops in these two models are not the same!They ”tell the story” in two very different ways

- +

5 000-

0

10 000-

0 10

+ -

5

Months

Susceptible

Infectious

+

-

Infectious

NetRecruitmentRate

Infectious

Susceptible

NetRecruitmentRate

Susceptible

+

SummarySummary

Endogenous Shiftsin

Structural Significance

Diffusion and DepletionProcesses

Masking anegative loop

by apositive loop

Endogenous Shiftsin

Structural Significance

Diffusion and DepletionProcesses

Masking anegative loop

by apositive loop

Exploration Rate

Exploration Potential

-

Exploration Potential

Exploration Rate

Expl. / Exploit. Pot

Exploration Rate

-

Exploration Potential

Exploration Rate

+

Expl. / Exploit. Pot

Exploration Potential

Exploitation Rate

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Exploration Potential

Exploration Rate

Expl. / Exploit. Pot Expl. / Exploit. Pot

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Exploration Rate

Exploited

Exploitation Rate

Expl. / Exploit. Pot Expl. / Exploit. Pot

Exploited

Exploration Potential

Exploited

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Exploration Rate

Exploitation Rate

Expl. / Exploit. Pot Expl. / Exploit. Pot

Exploited

Exploration Potential

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Expl. / Exploit. Pot

Exploited

Investments inExploration

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Expl. / Exploit. Pot

Revenues Exploited

Investments inExploration

Productivityin Exploration

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Expl. / Exploit. Pot

Revenues Exploited

Investments inExploration

Effect of Exploration on Investment Productivity

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Expl. / Exploit. Pot

Revenues Exploited

Productivity of Investmentsin Exploration

-

Exploration Potential

Exploration Rate

+

-

Exploitation RateInvestments inExploration

Productivity of Investmentsin Exploration

Investments inExploration Technology

Exploration Technology

+Expl. / Exploit. Pot

Effect of Exploration on Investment Productivity

Revenues Exploited

Productivity of Investmentsin Technology

Investments inExploration Technology

-

Exploration Potential

Exploration Rate

+

-

Exploitation RateInvestments inExploration

Revenues

Productivity of Investmentsin Exploration

Investments inExploration Technology

Exploration Technology

+Expl. / Exploit. Pot

Effect of Exploration on Investment Productivity

Investments inTechnology

Exploited

Exploration Technology

Exploration Technology

Exploration Technology

Exploration Technology

Exploration Technology

Investments inTechnology

Productivity of Investmentsin Technology

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Revenues

Expl. / Exploit. Pot

Effect of Exploration on Investment Productivity

Exploited

Exploration Technology

Exploration Technology

Exploration Technology

Exploration Technology

Exploration Technology

Investments inTechnology

Productivity of Investmentsin Technology

-

Exploration Potential

Exploration Rate

+

Revenues

Effect of Exploration on Investment Productivity

Exploited

Exploration Technology

Exploration Technology

Exploration Technology

Investments in Technology

Productivity of Investments

-

Exploration Potential

Exploration Rate

+Revenues

Effect of Exploration on Investment Productivity

Exploited

Exploration Technology

Exploration Technology

Exploration Technology

-

Exploration Potential

Exploration Rate

+Exploited

Exploration Technology

Exploration Technology

Exploration Technology

+ -+

ExploitedExploration Technology

-

Exploration Potential

Exploration Rate

+

-

Exploitation RateInvestments inExploration

Productivity of Investmentsin Exploration

Investments inExploration Technology

Exploration Technology

+Expl. / Exploit. Pot

Effect of Exploration on Investment Productivity

Revenues Exploited

-

Exploration Potential

Exploration Rate

+

-

Exploitation RateInvestments inExploration

Productivity of Investmentsin Exploration

Investments inExploration Technology

Exploration Technology

+Expl. / Exploit. Pot

Effect of Exploration on Investment Productivity

Revenues Exploited

-

Exploration Potential

Exploration Rate

+

-

Exploitation RateInvestments inExploration

Productivity of Investmentsin Exploration

Expl. / Exploit. Pot

Effect of Exploration on Investment Productivity

Revenues Exploited

Exploration Technology

-

Exploration Potential

Exploration Rate

+

Exploitation RateInvestments inExploration

Productivity of Investmentsin Exploration

Expl. / Exploit. Pot

Effect of Exploration on Investment Productivity

Revenues

Investments in Exploration

Productivity of Investments

-

Exploration Potential

Exploration Rate

+Revenues

Effect of Exploration on Investment Productivity

ExploitationRate Expl. / Exploit. Pot

-

Exploration Potential

Exploration Rate

+

Expl. / Exploit. Pot

+ -+

Explored / Exploit. Pot

-

Undiscovered

Discovery Rate

+

Discovered

+ -+

Discovered

CAIR

TUdRR

Technically DiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

TechnologicalTechnologicalProgressProgress

ExplorationExplorationProgressProgress

Investment and technology loop dominance

Investment and technology loop dominance

5 000-

0

10 000-

0 100

+

50 Years

+

UndiscoveredDiscovered

Discovered

Discovery Rate

+

CAIR

TUdRR

Technically DiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

TechnologicalTechnologicalProgressProgress

ExplorationExplorationProgressProgress

-

Undiscovered

Depletion loop dominanceDepletion loop dominance

Discovered

Discovery Rate

+

5 000-

0

10 000-

0 100

+ -

50 Years

UndiscoveredDiscovered

+

TUdRR

Technically DiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

DTPDTP

EPEP

-

Undiscovered

Depletion loop dominanceDepletion loop dominance

Discovered

Discovery Rate

+

5 000-

0

10 000-

0 100

+ -

50 Years

UndiscoveredDiscovered

+

CAIR

TUrRR

Technically RecoverableResource Remaining

(TRRR)

TUdRR

Technically DiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

DTPDTP

EPEP

-

Undiscovered

Depletion loop dominanceDepletion loop dominance

Discovered

Discovery Rate

+

5 000-

0

10 000-

0 100

+ -

50 Years

UndiscoveredDiscovered

+

CAIR

RTPRTP

PPPP

TUrRR

Technically RecoverableResource Remaining

(TRRR)

TUdRR

Technically DiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

DTPDTP

EPEP

Recovered

Production Rate

+

5 000-

0

10 000-

0 100

+

50 Years

UndiscoveredDiscovered

CAIR

RTPRTP

PPPP

+

Investment and technology loop dominance

Investment and technology loop dominance

TUrRR

Technically RecoverableResource Remaining

(TRRR)

TUdRR

Technically DiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

DTPDTP

EPEP

-

Unrecovered

Depletion loop dominanceDepletion loop dominance

Recovered

Production Rate

+

5 000-

0

10 000-

0 100

+

50 Years

UndiscoveredDiscovered

CAIR

RTPRTP

PPPP

-+

Could this modelbe applied in the

health sector?

Patients who, techno-logically considered,

cannot be treated

Patients who, techno-logically considered,

may be treated

Alle PasienterAlle Pasienter

TechnologicalTechnologicalprogressprogress

Progress in Progress in utilizationutilization

-

Untreated

Shift in loop-dominanceShift in loop-dominance

Treated

Progress

+

Patients

treated

A diffusion model

Managementfrom a

System Dynamicsperspective

Strengthenfavorable loops

Weakenunfavorable loops

Managementfrom a

System Dynamicsperspective

Strengthenfavorable loops

Weakenunfavorable loops

What loops arefavorable or unfavorable

variesfrom one point in time

to the next!

What loops arefavorable or unfavorable

variesfrom one point in time

to the next!

NoteNote

Managementfrom a

System Dynamicsperspective

Managementfrom a

System Dynamicsperspective

In developing robust policies,management must establish a

surveillance ofloop dominance

In developing robust policies,management must establish a

surveillance ofloop dominance

Managementfrom a

System Dynamicsperspective

Managementfrom a

System Dynamicsperspective

so as to decide onwhich to weaken

andwhich to strengthenat any point in time

so as to decide onwhich to weaken

andwhich to strengthenat any point in time

In developing robust policies,management must establish a

surveillance ofloop dominance

In developing robust policies,management must establish a

surveillance ofloop dominance

BehaviorBehavior

StructureStructure

SPREADSHEET

Multimedia databasesMultimedia databases

Modern Problem Statement Format:Modern Problem Statement Format:

Point of departurePoint of departure

Source Material

FormalizationFormalization

Source Material

SD-model

DocumentationDocumentation

Source Material

SD-model

Design and ControlDesign and Control

Source Material

SD-model

ILE

Source Material

SD-model

ILE

IllustrationIllustration

Source Material

SD-model

ILE

TransparencyTransparency

The Modeling Process

The Modeling Process

Problem articulation

Formulation of dynamic hypothesis

Formulation of simulation model

Testing

Policy design & evaluation

Problem articulation

Formulation of dynamic hypothesis

Formulation of simulation model

Testing

Policy design & evaluation

A predator prey model

HLstart

HL5

HL6

Peter M. Senge:

The Fifth Discipline

From Archetypesto

Generic Structures & Behaviorand back again.....

Peter M. Senge:

The Fifth Discipline

From Archetypesto

Generic Structures & Behaviorand back again.....

Limits to GrowthLimits to Growth

Eroding GoalsEroding Goals Escalation => Success to the SucessfulEscalation => Success to the Sucessful

Tragedy of the CommonsTragedy of the Commons Fixes that FailFixes that Fail Shifting the Burden to the IntervenerShifting the Burden to the Intervener => =>

Dependency & AddictionDependency & Addiction

Archetypes

Class of Challenges

ProblemSymptom

Own solution-

Class of Solutions:Shifting the burden to an intervener

Intervention

Own solution

-

-Problem

Symptom

Class I of Side Effects:Dependence

Intervention

Own solution

Ability tosolve+

-

-Problem

Symptom

+

Class II of Side Effects:Addiction

Intervention

Own solution

Ability tosolve

-

-

Quality ofIntervention

ProblemSymptom +

A Dynamic Story Problem Behavior

ExpOrdRate 1RepairRate2DesRepairRate3OrderRate4

0 50 1001.000

1.050

1.100

1.150

1.200

1234

1

2

3

4 12

3

4

a.

ExpOrdRate 1RepairRate2DesRepairRate3OrderRate4

0 50 1001.000

1.050

1.100

1.150

1.200

1234

1

2

3

4 12

3

4

Backlog1DesBacklog2

0 50 1004.000

4.500

5.000

5.500

12

1

2

1

2

b.

Backlog

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

Backlog

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

Backlog

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

Backlog

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

DesBacklog

Backlog

Backlog Management

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

Backlog

Backlog Management

- Backlog Adjustment

Backlog Order Rate

Ideal StructureIdeal Structure

Des Repair Rate

Repair Rate

Response of the Backlog model to a 10% step increase in orders in week 10

ExpOrdRate RepairRateDesRepairRate

0 50 100900

1,000

1,100

1,200

Response of the Backlog model to a 10% increase in orders in week 10

BacklogDesBacklog

0 50 100

3,000

4,000

5,000

A Dynamic Story Additional Evidence

A Dynamic Story Additional Evidence

Backlog1DesBacklog2

0 50 1004.000

4.500

5.000

5.500

12

1

2

1

2

WorkForce1DesWorkForce2

0 50 10050

52

54

56

58

60

12

1

2

1

2

HireRate1QuitRate2

0 50 1001,0

1,1

1,2

1,3

12

1

2

1

2

c.

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

Backlog

Backlog Management

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

OrderRate

DesRepairRate

Backlog

Backlog Management

-

Des Workforce

Workforce

Backlog Adjustment

Backlog Order Rate

Problem StructureProblem Structure

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

ExpOrdRate 1RepairRate2DesRepairRate3OrderRate4

0 50 1001.000

1.050

1.100

1.150

1.200

1234

1

2

3

4 12

3

4

a.

ExpOrdRate 1RepairRate2DesRepairRate3OrderRate4

0 50 1001.000

1.050

1.100

1.150

1.200

1234

1

2

3

4 12

3

4

Backlog1DesBacklog2

0 50 1004.000

4.500

5.000

5.500

12

1

2

1

2

b.

SolutionSolutionOvertimeOvertime

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

OrderRate

DesRepairRate

Backlog

Backlog Management

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

Backlog

Backlog Management

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

Order Rate

Long term solutionLong term solution

-

-

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

Schedule Pressure

Des Workforce

WorkforceNormal Repair Rate

Backlog Adjustment

Backlog

Hire Rate

Effect of Over-time On Repair Rate

Order Rate

Des Repair Rate

Repair Rate

Long term solutionLong term solution

--

+

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

Order Rate

Expected Over-time

Trouble I: DependenceTrouble I: Dependence

+

--

+

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

MTBF

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

Order Rate

Expected Over-time

Trouble II: AddictionTrouble II: Addiction

+

--

+

+

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

MTBF

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

Order Rate

Expected Over-time

Trouble II: AddictionTrouble II: Addiction

+

--

+

+

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

MTBFComplexityComplexity

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

Order Rate

Expected Over-time

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

MTBFNeg. FeedbackNeg. Feedback

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

--

Order Rate

Expected Over-time

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

MTBFPos. FeedbackPos. Feedback

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

+

--

+

+

Order Rate

Expected Over-time

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

MTBFDelayDelay

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

+

--

+

Order Rate

Expected Over-time

+

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

MTBFNon-linearityNon-linearity

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

+

--

+

Order Rate

Expected Over-time

+

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

Schedulepressure

1

1-

o.8-

1.25-

o.5 1.5

Overtime

Graph

1

1-

o.5 1.5

MTBF

Graph

?

?

Schedulepressure

MTBFNon-linearityNon-linearity

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

+

--

+

Order Rate

Expected Over-time

+

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

MTBF

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

+

--

+

Order Rate

Expected Over-time

+

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

UncertaintyUncertainty

Class of Challenges

Own solution-

Problem

Instance of a Challenge

-Recruitment

Under-/Over-Capacity

Class of Solutions:Shifting the burden to an intervener

Intervention

Own solution

-

-Problem

Instance of a Solution:Shifting the burden to the workforce

-

-

Overtime

Recruitment

Under-/Over-Capacity

Class I of Side Effects:Dependence

Intervention

Own solution

Ability tosolve

-

-+Problem

Instance I of a Side Effect:Dependence on Overtime

Recruitment

Ability/willingn.to recruit

-

-

Overtime

Under-/Over-Capacity +

Class II of Side Effects:Addiction

Intervention

Own solution

Ability tosolve

-

-

Quality ofIntervention

+

+

Problem

Instance II of a Side Effect:Increasing load through decreased MTBF

Under-/Over-Capacity

Recruitment

+-

-

MTBF

Overtime

Ability/willingn.to recruit

+

SPREADSHEET

Multimedia databasesMultimedia databases

Modern Problem Statement Format:Modern Problem Statement Format:

Point of departurePoint of departure

Source Material

FormalizationFormalization

Source Material

SD-model

DocumentationDocumentation

Source Material

SD-model

Design and ControlDesign and Control

Source Material

SD-model

ILE

Source Material

SD-model

ILE

IllustrationIllustration

Source Material

SD-model

ILE

TransparencyTransparency

Recommended