03.system concept

Management Science
Decision Making Trough System Thinking
Chapter 03 System Concepts
From Book “Management Science
Decision Making Trough System Thinking”
Daellenbach, Hans, Donald McNickle, and Shane Dye. Management
science: decision-making through systems thinking. Palgrave
Macmillan, 2012.
Presented By:
Rio Aurachman, MT

CHAPTER 3
System Concept
1.Pervasiveness of systems
2. Out-there and inside-us view of systems
3. Subjectivity of system description
4. Formal definition of the concept ‘system’
5. System boundary and relevant environment
6. Some examples of system descriptions
7. Systems as ‘black boxes
8. Hierarchy of systems
9. System behaviour
10. Different kinds of system
11. Feedback loops
12. Control of systems

1.PERVASIVENESS OF SYSTEMS
CHAPTER 3
System Concept
9. System behaviour
11. Feedback loops

About System
• solar system
• social systems
• political systems
• telephone system
• communication system
• number systems
• information systems
• legal system
• digestive system
• central nervous system
Picture Resources:: www.dailymail.co.uk, www.bioteams.com, www.uhasselt.be
natural systems
human activity systems
abstract systems

Excerpt from Webster’s 9th New
Collegiate Dictionary
Picture Resources::

Kata Kunci
• Interacting
• Interdependent
• forming a unified whole
Picture Resources:: zhanglab.ccmb.med.umich.edu
Rhodopseudomonas palustris protein-protein interaction network

2. OUT-THERE AND INSIDE-US VIEW
OF SYSTEMS
CHAPTER 3
System Concept
9. System behaviour
11. Feedback loops

Confusion (Out there vs Inside Us)
Picture Resources:: www.dailymail.co.uk, www.tutorialsarea.com www.uhasselt.be
is seen (out there)
The system is no longer seen as existing inde-
pendently of the observer; it is not out there;
it has become a mental construct,
personal to the observer! This is the inside-us
view of systems
So, when we say
‘something is a system’,
what we really mean is
that we ‘ view something
as a system ’

Systems as a human conceptualization
Picture Resources:: www.dreamstime.com

3. SUBJECTIVITY OF SYSTEM
DESCRIPTION
CHAPTER 3
System Concept
9. System behaviour
11. Feedback loops

World View of Observer
Picture Resources:: profalbrecht.wordpress.com

Effect of previous knowledge
Picture Resources::

Picture Resources:: kinderbooks.net

Subjectivity of system description
Picture Resources:: en.wikipedia.org
Objectivity is: the social product of the open
interaction of a wide variety of individual
subjectivities’ (R.L.Ackoff [1974])
Subjective vs objective?
Albert Einstein: ‘The only justification for our
concepts is that they serve to represent the
complex of our experiences; beyond this, they
have no legitimacy

Picture Resources:: www.itpro.co.uk , science.nasa.gov

4. FORMAL DEFINITION OF THE
CONCEPT ‘SYSTEM’
CHAPTER 3
System Concept
9. System behaviour
11. Feedback loops

Definition of System
• 1. A system is an organized assembly of components. ‘Organized’ means that
there exist special relationships between the components.
• 2. The system does something, i.e. it exhibits behaviours that are unique to the
system.
• 3. Each component contributes towards the behaviour of the system and its
own behaviour is affected by being in the system. No component has an
independent effect on the system. (A part that has an independent effect and
is not affected by the system is an input. See (5) below.) The behaviour of the
system is changed if any component is removed or leaves.
• 4. Groups of components within the system may by themselves have
properties (1),(2), and (3), i.e. they may form subsystems .
• 5. The system has an outside — an environment — which provides inputs into
the system and receives outputs from the system.
• 6. The system has been identified by someone to be of special interest for a
givenpurpose
• not a chaotic aggregate
Picture Resources::
System Ingredient
-Components
-the relation-ships between the components
-the behaviour or the activities of the system
-its relevant environment
-the inputs from the environment,
-The outputs to the environ-ment
-the special interest of the observer

System Ingredient
• The system behaviour
consists of a
transformation
process
• Many of the inputs
are uncontrollable
• Decision maker has
control are
controllable inputs
• Outputs are things
the system ‘releases’
or gives to the
environment
• measures of
performance
• person studying a
system has a purpose
Picture Resources:: www.toyota-global.com

5. SYSTEM BOUNDARY AND
RELEVANT ENVIRONMENT
CHAPTER 3
System Concept
9. System behaviour
11. Feedback loops

System boundary and relevant
environment
Picture Resources:: commons.wikimedia.org , www.processdeliverysystems.com, www.naturalnews.com ,
www.marketing91.com
boundary
selection is the
most critical
aspect of
systems
thinking
Example: productivity of a system
relevant environment and what is ignored as
irrelevant
lookout for implicit assump-tions

6.SOME EXAMPLES OF SYSTEM
DESCRIPTIONS
CHAPTER 3
System Concept
9. System behaviour
11. Feedback loops

A traffic system
Picture Resources:: www.gearthblog.com

A motor vehicle
Picture Resources:: www.autocarpro.in

Sawmill
Picture Resources:: www.motherearthnews.com

Level of resolution in system
description
Picture Resources::

Arbitrariness of system description
• This discussion drives home the point that
there is considerable arbitrariness in how a
system is defined,
– where its boundary is placed,
– and its level of detail or resolution.
• As a rule, the choice should be the smallest
system needed for achieving the purpose
for which the system is defined
Picture Resources::

7. SYSTEMS AS ‘BLACK BOXES
CHAPTER 3
System Concept
9. System behaviour
11. Feedback loops

Should we Know Everything?
• not have to know the details of its inner workings
• it may be adequate to view the inner working as a black box
Picture Resources:: www.jsg.utexas.edu , www.ilocis.org

8. HIERARCHY OF SYSTEMS
CHAPTER 3
System Concept
9. System behaviour
11. Feedback loops

Hierarchy
• where to
place the
boundary of
the system
• Two System
– wider system
of interest
– narrow
system of
interest.
Picture Resources::

9. SYSTEM BEHAVIOUR
CHAPTER 3
System Concept
9. System behaviour
11. Feedback loops

System State
• state variables
• state of the system
• Their values change in
either of two ways
– The change in a state
variable is the result of an
input
– The change in a state
variable of a component
is a consequence of the
activity of the component
itself or of the
relationship with other
components
Picture Resources:: bikeeastbay.org

Variety of system behaviour
Picture Resources:: www.dreamstime.com , transact.org
Our concern is rather with the aggregate or
average system behaviour

Emergent properties
• Emergent properties: the system
exhibits behaviours or properties that
none of its components individually
may exhibit
• created or formed in order to
produce desired emergent properties
Picture Resources:: www.shutterstock.com , kmdrivinginstitute.com

some emergent properties are not
desirable or even planned
Picture Resources:: www.123rf.com

Construction of the Aswan High Dam
in Egypt
Picture Resources: en.wikipedia.org

Deterioration of urban transport
Picture Resources:: www.volvogroup.com

Assessment of unit production costs
Picture Resources: www.gray.com

10. DIFFERENT KINDS OF SYSTEM
CHAPTER 3
System Concept
9. System behaviour
11. Feedback loops

Discrete systems
• A discrete system changes its state at discrete points
in time. Between these times, the state of the
system remains unchanged
Picture Resources:: www.express.co.uk, www.express.co.uk, czjyjc.en.made-in-china.comPicture Resources:: www.express.co.uk, www.express.co.uk, czjyjc.en.made-in-china.com

Continuous systems
• change continuously over time
• the number of possible states is infinitely large
Picture Resources:: www.themanufacturer.com , coolcosmos.ipac.caltech.edu

Deterministic and stochastic systems
• deterministic : If the behaviour of a system is predictable in
every detail the system
• stochastic systems : they are generally not completely
predictable. Some behaviour may be affected by random or
stochastic inputs. Such systems are called.
• Stochastic’ derives from the Greek stochos , meaning ‘guess’.
Picture Resources:: www.opentrack.ch , en.wikipedia.org

Closed and open systems
• The father of General Systems Theory, Ludwig von Bertalanffy,
introduced the con-cepts of closed and open systems .
• A closed system has no interactions with any environment. No
inputs, no output. In fact, it has no environment.
• In contrast, open systems interact with the environment, by
receiving inputs from it and providing outputs to it
Picture Resources:: www.medicalexpo.com

The steady state of a probabilistic
system
• state of equi-librium, also called a ‘steady state’
• It may become trapped in the same final state, if one exists, even if it
starts out from different initial conditions or initial states of the system.
• However, more commonly, stochastic systems in the long run tend to
approach a
• system’s long-run behaviour.
• Few stochastic systems ever reach their state of equilibrium
Picture Resources:: www.express.co.uk,

11. FEEDBACK LOOPS
CHAPTER 3
System Concept
9. System behaviour
11. Feedback loops

Feedback Loop
• the behaviour of system
components may exhibit
mutual causality
• Positive feedback
increases the discrep-
ancy between the future
state of the system and
some reference state
• negative feedback de-
creases the discrepancy
between the future state
and the reference state.
Picture Resources::

12. CONTROL OF SYSTEMS
CHAPTER 3
System Concept
9. System behaviour
11. Feedback loops

Why Controling System?
• Our main reason for viewing something as a human activity system is to
exercise effective control over its behaviour.
• Control is achieved by imposing something on the system in the form of
inputs — a set of decisions, or decision rules, or simply an initial state for
the system
• control inputs
• Three conditions are needed to exercise control over system behaviour:
– A target, objective, or goal for the system to reach. For a deterministic system
this may be a particular state of the system. For stochastic systems it may be a
desirable steady state.
– A system capable of reaching the target or goal. This is rather obvious! The
difficulty is that for stochastic systems there may be no way of guaranteeing
that this goal is ever reached.
– Some means of influencing system behaviour. These are the control inputs
(decisions, decision rules, or initial states). How these control inputs affect
system behaviour is an important aspect of studying systems.
• Systems theory have 3 type of control:
– open loop controls ,
– closed loop or feedback controls
– feed-forward controls
Picture Resources::

1.Open Loop Control
• Open loop controls are inputs
imposed on the system based
only on the prediction of how
the system behaviour responds
to them. No account is taken of
how the system actually
responds to the control inputs
• Example: recipe or a set of rules
to follow
• does not guarantee that you can
do it succesfully
Picture Resources:: www.caranddriver.com

2.Closed Loop Control / Feedback
Control
• Under this type of control,
information about the system
behaviour, possibly in
response to previous control
inputs, is fed back to the
controller for evaluation. This
may lead the controller to
adjust the control signals
• control the temperature of a
shower
Picture Resources:: www.aliexpress.com

2a.Feedback Control
Picture Resources:: qualityoftheconnection.wordpress.com

2b.Closed Loop(self regulation)
Picture Resources:: www.slideshare.net , www.conserve-energy-future.com
This feedback has nothing to do with control
Un-fortunately, many attempts at human control of natural systems have had disastrous results

2.Closed Loop Control : Feedback
Control and Self regulation
Picture Resources::
feedback control receives an extra input of
decision rules supplied by a human controller.
The rules governing self-regulation are internal
to the system

3.Feed-forward control
• Reacts
• predicts how
changes in inputs
• Example: This is
the type of
control used by
an experienced
driver of a car
• Example :firms
attempt to
forecast future
economic
Picture Resources::

Response lags in systems
• Example: temperature control of the
shower water
• The time delay between the moment
when the control signals are applied and
their effects have been fully realized is
called a lag
• transport lag
– An increase in the production level may
take considerable time before it results in
increased deliveries from the factory, and
even longer until it finally leads to an
increase in sales from the retail outlets
• exponential lag
– Here, the control signal has an immediate
effect, but it is gradual in terms of its size
Picture Resources:: www.aliexpress.com , www.datasciencecentral.com , www.steelman.com

Review and
Mindmap
System Concept
1.Pervasiveness of
systems
How to define system
2. Out-there and inside-
us view of systems
3. Subjectivity of system
description
4. Formal definition of
the concept ‘system’
5. System boundary and
relevant environment
6. Some examples of
system descriptions
7. Systems as ‘black
boxes
9. System behaviour
System State
Emergent Properties
10. Different kinds of
system
.
Discrete – continous
Deterministic –
Stochastic
Closed-open
Steady state
11. Feedback loops
Open
Closed
Self regulation
feedback
Feed forwardPicture Resources:

03.system concept

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