“System dynamics

perspective and
modeling
opportunities for
research in
operations
management”

7/19/2018

Presented by: Artemio B.

Castillejos

I. Introduction V. Conclusion
III. Findings
II. Methodology VI. References
IV. Limitation of the
Study
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I. INTRODUCTION

The paper has been conducted as an analysis of operations management that is

related to system dynamics which is not only simplistic but rather significant perspective

that the passage author seeks to scrutinize the supply chain and project management

which is related to system dynamics and its effect or impact on the decisive behavior of

managers by using the fundamental ideas from a several range of research work and their

findings. With the significant importance of operations management interdependency and

system dynamics to area of research toward obtaining and stating precise and scholar

theoretical findings and explanations for human behavior’s effect and the relationship to

system dynamics on the context of operations management. Developing an unorthodox

substance of explaining the operations management theories is what the paper

predominantly focuses. The synthesis of different perspectives and related approach taken

by researchers has been done to address the operations management domain and system

dynamics whenever they bisect each other to further provide explanation to the behavioral

and decisive system of management. The author of the passage further attains information

from practices of both domains which is defined by the overall result of the research works

that was discussed in the issue from a more collaborative approach, instead of just relying

on the exclusively empirical deductions.

The author of the article asserts that in relation to operations management, none of

the changes or enhancement is linear in nature howbeit established modules of operations

management theory that is enhanced and updated recently. The problems therefore lie

within how the approached from the core perspectives of operations management and

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system dynamics intersection which requires review and rectification. This include the

result from studies and on field which has the goal at elaborative describing the context of

operations management in behavioral operations and exclusive experimentations.

II. METHODOLOGY
An approach which was based on the context of dynamic modeling is considered to

early researches and its development use to understand the same study. By means of

referring to the critical feedback appraisal perspective, the article then undergoes to grasp

the dynamics of operation management perspective. Regardless of whether in supply chain

management or in production, feedback evaluation appreciation is critical as it is indulged

in any type of organization and is significantly important as explain by the works of these

innovators. It further highlights by the author of the article to the areas of coalition or

interdependency of critical feedback assessment aspects in the operations management

context which are includes and are not limited to nonlinear dynamics, time delays, the

distortion of data and the dynamic behavioral system which are then leads to decrease the

process effectiveness of operations management.

The idea which was initiate by Forrester’s approach was merely based on the

feedback controls which was developed by the Greeks on this context. Based on

Forrester’s model, the author of the article affirms a preliminary justification in normal

operations and production protocols discrepancies. This justification is defined by the

fluctuation in the supply chain management figures. Attributed on this context is the system

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dynamics aspects which was leads to the lack of efficiencies in the data transition process

between the aspects of specific functional organizations. Thus, setting a forward integration

for the tenacious fluctuation in production and sales with a unique justification due mainly to

lack of data transition efficiency may be related easily to each aspect in a specific patterns

or order. This may be means the delay in the decision making and/or erroneous in the

decision-making process and inadequacy of effective strategy for implementation. The

author conceivably relates this approach context to mainly rationalize the decision making

subprime of the supply chain management by managers which has inadequate a vigorous

data interpretation of consumer behavior and incorporation into the modules. Rather than

selectively addressing a specific issue, a comprehensive dynamic modeling spectrum has

been address developed by innovators and in fact considered a profound information.

Eradication of the restricted implementation process that led to the evolution of the entire

Industrial dynamics field to System Dynamics is resulted to the publication of innovative

approach for the industry. The author initiate to scrutinize the ultimate significant

methodological approach of System dynamics that may interfere with the operations

management processes of any organization having a well addressed background of

elaborating this coalition of the two domain.

III. FINDINGS
The system dynamics module characteristics in a more behavioral perspective are

structurally elaborative and approach the solution finely. This may be explained by the

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feature of behavioral perspective is governed by the module structural composition. This

conjointly support by the author (Forrester and Sterman) that pinpoint that most of the

modules are signalize by structural elements such as feedback loops and the non-linear

dynamics which unable to be studied in a pattern but must be approached from several of

specific of operations management and system dynamics domains. That said, it has then

accredited towards the assumed patterns of consumers behavior which was defined by a

specific situational analysis by the scholars’ point of view and analysis of the decision-

making process of supply chain management process by managers. The process

therefore, in decision-making with its implementation should be then performed in line with

the consumer behavior. The behavioral aspects thus then are defined by the manager’s

impression regarding inventory control, the demand analysis and its prediction, the

production processing and major/minor manufacturing process which is related to

operations management process.

The author describes the second model which is related to the decision-making

process that is governed by disequilibrium as a relative to the stock’s inflow-outflow

processes which was then justified by an innovative case of breadline at an emergency

department in a hospital. The services being provided to the consumers that develop much

lower as compare to the rate at which the queue develop is imperative. This has been

imputed as the precursors of undefined fluctuate sequence which created by disequilibrium

or the imbalances in feedback that is necessary to govern the operations management

process. The link therefore between the operations management and systems dynamics

interdependence may be finely conceptualize.

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The highlight on people’s inability to recognize the vitality of feedbacks that is govern

and produce system behavior is the third model of this paper. The idea then been

rationalized with a probability to simplify a situation that ignores the effect of a delayed

decision. The highlight therefore would be based on the diverse tools that is employed by

the system dynamics to make these unparalleled incidents at a minimum necessary.

IV. LIMITATION OF THE STUDY

The model that define the tenacious fluctuation in production figures by Forester in

his supply chain management model relates and incorporates to the impact of any

limitation, any prejudice present, delay in decision making process, the vital factors

ignorance. To scrutinize the situation better, the Sterman’s Beer Distribution Game was

then initiate as the experimentation process. The first experiment process has to do with

the exploring the hoarding causes in an approach serve as a defensive technique or

measure against a customer demands describe as unconventional that ca be ineffectively

met by any suppliers at all times and which adopt mostly by managers. Other experiments

of the same nature deals with focusing the understanding of issues that is related to

management of stock process. A mere theoretical framework apprehension was indeed

insufficient to understand properly the system dynamics of stock process management as a

result. This result further considered by the researchers to initiate alternative cognitive

resolutions for the challenges in management of stock process. In respond to this, the

researchers performed a cognitive psychological literature tests which allows the

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comparison of a patterns of a national and local analysis or idea which may affect the

process of stock management differently. Findings of other studies have conjointly been

compared in the same category. The author, however, highlight that system dynamics with

its impact to or on operations management from an approach of behaviorism is limited no

to the recognition of a bad decision-making process and its precursors.

V. CONCLUSION

The increasing cases of unsuccessfulness of projects which is described by an

imprecise decision-making process in cost management, time management, and

development of proper objectives and goals and lastly, any deliverables. These elements

contribute all to the restriction of successfulness of project howbeit several technique or

methods like Gantt chart for time management, PESTEL, TOWS or SWOT for market

analysis, and proper CPM approach are initiated in every project outlined. In terms of LEW

dynamics, however, the failure is initiated from the system dynamics approach and the its

impact on the criteria success for a specific project. Some of the major attributions to the

system dynamics processes is directed to some of the crucial aspects such as the delayed

customer demand changes, the delays in approval processes, and the labor/material

issues which are specifically discuss by a company’s operations manager for

manufacturing or construction process. The transition of information to authorities’ level

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from the operational level as considered to be one serious drawback and bottleneck of

system dynamic misinterpretation were identified in this paper.

Finally, the main aim of this paper deals with the approach to better understand the

interconnection of system dynamics and the impact of the factors which governed by the

operations management efficiency that are related to the system dynamics. The scope of

the study is broad and interdisciplinary which will indeed seek and provide opportunities for

further analysis, study, and research into the connectivity of the two elements.

VI. REFERENCES

None

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