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In: Operations Management

Question 1(25 Marks) A steady stream of philosophers, scientists, and management gurus have since echoed Adams,...

Question 1 A steady stream of philosophers, scientists, and management gurus have since echoed Adams, lamenting the acceleration and calling for similar leaps to fundamental new ways of thinking and acting. Many advocate the development of systems thinking the ability to see the world as a complex system, in which we understand that “you can’t just do one thing” and that “everything is connected to everything else.”

a-Explain what is meant by system dynamic and show how System dynamics is fundamentally interdisciplinary. (750 Words 15 Marks)

Please i need it to be exactly 750 words!!!

Solutions

Expert Solution

SYSTEM DYNAMIC METHODOLOGY

The word ‘system dynamic’ is derived from the fact that everything existing in this world falls under a unique system of its own with different parameters, elements and environments. In order to understand the complex issues in social & economic perspective, the methodology adopted is called system dynamic.   

The study of system dynamics is performed normally using computer simulation. A simple system has an input (information about the problem), process (action taken) and the output (result), which is an open loop process and is linear in nature without any scope of feedback (feedback to rectify the mistake and taking corrective measures). In a closed loop, system, there is a scope of correction where the problem leads to action giving rise to result that creates further problems and actions. Here, it is non-linear and there is no starting and end point as it is a closed loop complex system.

In order to understand the wide range of complex dynamic problems faced by the world, system dynamics attempts to resolve these problems. For example, developing countries face the complex problems of hunger, unemployment, poor GDP growth rate, rising costs and inflation. Using the computer aided programs; we can address these problem areas using system dynamics. The word dynamic means ‘changing with time’. Therefore, dynamic problems lead to continuous managerial action which must be monitored regularly. The dynamic problems are referred by the variables that encompass significant changes in time.

The term system refers to a bundle of several interrelated elements to form a meaningful whole. That means there is interdependence in between various elements of a system which is referred as interdisciplinary. Therefore, we have understood that a dynamic system comprises of various interrelated elements in a meaningful way so as to serve the purpose of forming a system with a definite purpose.

The problems are a result of interactions between the system variables and also the systematic feedback between the actions taken and system reactions. System dynamics study the cause of dynamic problems and then look for the solutions in the form of policies so that these issues can be eliminated from the system. The systematic feedback in a way integrates the system theory with critical emphasis on dynamic feedback nature of the problems.

The dynamic systems are normally complex. Dynamic problems are tough and complicated as compared to a static problem. In dynamic problem, the variables change with time during the interaction process. Such changes are not easy to predict and there is a gap between cause (cause of the problem) and effect (change in behaviour of the system variables). Such system dynamics are non-linear which means these are not straightforward, i.e., the cause and effect relationship between the variables are not proportional to each other. That means this cause effect relations are separated from time and space.

We can understand this phenomenon by giving an example of a baby touching a gas stove with his fingers and his finger gets injured. Baby here learns immediately that his touching fingers to the stove will burn his fingers and he will never repeat this in future. His burning of finger is a casualty the cause of which is immediately known. Here the cause and effect are closed in time and space. But, if we assume that nothing happens to baby even after touching the burning stove and many weeks later, his nose starts bleeding. Now here, it will be impossible for the baby to link his nose bleeding with his finger touching the stove because the cause and effect here are detached in time and space. In fact, on the contrary, baby might link this effect to any wrong causes as during this period; he must have done a lot of other activities. The organisations are unfortunately doing the same mistakes. A decision taken in one area can seriously impact some other areas after a passage of time. So, this time and space constrained incident of casualty leads to wrong inferences about the effectiveness of decisions made.

Therefore, we understood the concept of system dynamics being fundamentally interdisciplinary. This system dynamics is meant for multidisciplinary problems since it can incorporate quantitative as well as qualitative data.


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