,Inhoud
BAfRO HC1..........................................................................................................................................3
Chapter 1 The basics .......................................................................................................................4
BAfRO HC2..........................................................................................................................................5
Chapter 2 One stock systems ..........................................................................................................6
BAfRO HC3..........................................................................................................................................7
Chapter 2 Two stock systems ........................................................................................................ 10
BAfRO HC4........................................................................................................................................ 11
Chapter 3 + 4 Why systems work so well and suprise us ................................................................ 12
BAfRO HC5........................................................................................................................................ 14
Chapter 5 System traps… and opportunities .................................................................................. 15
BAfRO HC6........................................................................................................................................ 18
Chapter 6 Leverage points – places to intervene a system ............................................................. 18
BAfRO HC7........................................................................................................................................ 21
Chapter 7 Living in a world of systems........................................................................................... 21
BAfRO HC8........................................................................................................................................ 22
HC 8 – EXTRA .................................................................................................................................... 23
Glossary of key terms .................................................................................................................... 24
,BAfRO HC1
People in business are working in different functions. “functional areas”.
“System lens: How can business have a better performance?”
Coporate social responsibility.
Not just thinking about the shareholders, but something else (social, staff etc.). Making positive
changes.
People – Planet – Profit Examination:
Multiple objective create additional management challenges. 50% written exam
ISO: Objectieve standaarden, om iets te halen als bedrijf.
50% Group work (2x25% -> Ass. 3 &
The tools (Scorecard, certification) are cool, but are static. 4 are graded, 1 and 2 is a pass).
Goal of the course: Understand systems, to change them.
Three: Good job, Work in teams, Communicate effectivily to others and the higher level.
What is a system?
System: A system is a interconnected set of elements organized in a way that achieves something.
Elements: Not necessary physical things
Interconnections: Connects elements
Function: What is the goal/outcome
The function or purpose is hard to identify.
Stock
What is the difference between words and visual systems?
Words and sentences are linear, Systems happen all at once.
Stocks are the foundation of the system: Stocks can be seen or measured at any give time.
Flow can change the stock: Flow can be observerd over time. Stocks changes trough inflow and
outflow.
Flow
,Chapter 1 The basics
System = Interconnected set of elements that is coherently organized in a way that it achieves
something.
Interconnections = The relationships that hold the elements together. (Most of the time through
information.
When you want to change a system, change the interconnections, or the goal.
Stock = The elements of the system that you can see, feel, count or measure at any given time.
Stock changes through the action of the flow.
Some important principles:
1. As long as the sum of all inflows exceeds the sum of all outflows the level of the stock will
rise.
2. As long as the sum of outflows exceeds the sum of all inflows the level of the stock will fall.
3. If the sum of all outflows equals the sum of all inflows, the stockc level will not change. We
call this dynamic equilibrium.
Stocks act as delays of buffers or shock absorbers in the systems. People monitor stocks constantly
and make decisions and take actions designed to raise or lower stock or to keep them within
acceptable ranges.
Feedback loop = A consistent behaviour pattern over a long period of time.
Balancing feedback loop = The stocklevel remain completely fixed. They are either goal seeking or
stability seeking. A balancing feedback loop opposes hatever direction of change is imposed in the
system.
Reinforcing feedback loop = A vicious circle thatt can cause healthy growth, or a runaway
destruction. It generate more from what is already there. They are found whenever a stock has the
capacity to reinforce or reproducte itself.
, BAfRO HC2
Positive: Reinforcing - - or + +
Negative: Balancing - +
Difference between explain and describe.
Describe: What is the nature of the behavior?
Explain: Why, Why do we observe this behavior. (connection between inflow, outflow and the stock).
You can see what a system is doing over time, it is important for management decisions.
System thinkers see the world as a collection of stocks along with the mechanism for regulating the
levels in the stocks by manipulating flows.
Normally you see that exponential growth, doesn’t go on for ever.
Shifting feedback dominance = The dominant changes for example from a dominant fertility to
mortality change.
If the factors change (affected by other factors) more complex behaivors are possible.
Policy can influence productivity, investment fraction and depreciation with important implications
for the economy.
Inventory challegences are one of the most difficult processe to manage.
Inventory Management Model = A stock with both reinforcing and balancing loops.
Challenges: Demand on any given day is uncertain.
We have 3 kinds of delays:
1. Shipment (time between order and delivery)
2. How quickly he react (use current sales data)
3. How quickly to close the gap (How many days of sales, forecast, how quickly the discrepancy
want to close).
Oscillates = Up & Down.
What can we do to reduce the oscillates?
Systems with balancing loops and delays create oscillations.
BAfRO HC1..........................................................................................................................................3
Chapter 1 The basics .......................................................................................................................4
BAfRO HC2..........................................................................................................................................5
Chapter 2 One stock systems ..........................................................................................................6
BAfRO HC3..........................................................................................................................................7
Chapter 2 Two stock systems ........................................................................................................ 10
BAfRO HC4........................................................................................................................................ 11
Chapter 3 + 4 Why systems work so well and suprise us ................................................................ 12
BAfRO HC5........................................................................................................................................ 14
Chapter 5 System traps… and opportunities .................................................................................. 15
BAfRO HC6........................................................................................................................................ 18
Chapter 6 Leverage points – places to intervene a system ............................................................. 18
BAfRO HC7........................................................................................................................................ 21
Chapter 7 Living in a world of systems........................................................................................... 21
BAfRO HC8........................................................................................................................................ 22
HC 8 – EXTRA .................................................................................................................................... 23
Glossary of key terms .................................................................................................................... 24
,BAfRO HC1
People in business are working in different functions. “functional areas”.
“System lens: How can business have a better performance?”
Coporate social responsibility.
Not just thinking about the shareholders, but something else (social, staff etc.). Making positive
changes.
People – Planet – Profit Examination:
Multiple objective create additional management challenges. 50% written exam
ISO: Objectieve standaarden, om iets te halen als bedrijf.
50% Group work (2x25% -> Ass. 3 &
The tools (Scorecard, certification) are cool, but are static. 4 are graded, 1 and 2 is a pass).
Goal of the course: Understand systems, to change them.
Three: Good job, Work in teams, Communicate effectivily to others and the higher level.
What is a system?
System: A system is a interconnected set of elements organized in a way that achieves something.
Elements: Not necessary physical things
Interconnections: Connects elements
Function: What is the goal/outcome
The function or purpose is hard to identify.
Stock
What is the difference between words and visual systems?
Words and sentences are linear, Systems happen all at once.
Stocks are the foundation of the system: Stocks can be seen or measured at any give time.
Flow can change the stock: Flow can be observerd over time. Stocks changes trough inflow and
outflow.
Flow
,Chapter 1 The basics
System = Interconnected set of elements that is coherently organized in a way that it achieves
something.
Interconnections = The relationships that hold the elements together. (Most of the time through
information.
When you want to change a system, change the interconnections, or the goal.
Stock = The elements of the system that you can see, feel, count or measure at any given time.
Stock changes through the action of the flow.
Some important principles:
1. As long as the sum of all inflows exceeds the sum of all outflows the level of the stock will
rise.
2. As long as the sum of outflows exceeds the sum of all inflows the level of the stock will fall.
3. If the sum of all outflows equals the sum of all inflows, the stockc level will not change. We
call this dynamic equilibrium.
Stocks act as delays of buffers or shock absorbers in the systems. People monitor stocks constantly
and make decisions and take actions designed to raise or lower stock or to keep them within
acceptable ranges.
Feedback loop = A consistent behaviour pattern over a long period of time.
Balancing feedback loop = The stocklevel remain completely fixed. They are either goal seeking or
stability seeking. A balancing feedback loop opposes hatever direction of change is imposed in the
system.
Reinforcing feedback loop = A vicious circle thatt can cause healthy growth, or a runaway
destruction. It generate more from what is already there. They are found whenever a stock has the
capacity to reinforce or reproducte itself.
, BAfRO HC2
Positive: Reinforcing - - or + +
Negative: Balancing - +
Difference between explain and describe.
Describe: What is the nature of the behavior?
Explain: Why, Why do we observe this behavior. (connection between inflow, outflow and the stock).
You can see what a system is doing over time, it is important for management decisions.
System thinkers see the world as a collection of stocks along with the mechanism for regulating the
levels in the stocks by manipulating flows.
Normally you see that exponential growth, doesn’t go on for ever.
Shifting feedback dominance = The dominant changes for example from a dominant fertility to
mortality change.
If the factors change (affected by other factors) more complex behaivors are possible.
Policy can influence productivity, investment fraction and depreciation with important implications
for the economy.
Inventory challegences are one of the most difficult processe to manage.
Inventory Management Model = A stock with both reinforcing and balancing loops.
Challenges: Demand on any given day is uncertain.
We have 3 kinds of delays:
1. Shipment (time between order and delivery)
2. How quickly he react (use current sales data)
3. How quickly to close the gap (How many days of sales, forecast, how quickly the discrepancy
want to close).
Oscillates = Up & Down.
What can we do to reduce the oscillates?
Systems with balancing loops and delays create oscillations.
