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1 System Dynamics

The document discusses system dynamics methodology which uses feedback concepts to model complex dynamic systems. It explains key concepts of open and closed feedback systems using examples. The steps of system dynamics modeling include identifying the problem, proposing a dynamic hypothesis, building a simulation model, testing the model, and designing and evaluating policies.

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Shankar Lal Das
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Download as PDF, TXT or read online on Scribd
36 views

1 System Dynamics

The document discusses system dynamics methodology which uses feedback concepts to model complex dynamic systems. It explains key concepts of open and closed feedback systems using examples. The steps of system dynamics modeling include identifying the problem, proposing a dynamic hypothesis, building a simulation model, testing the model, and designing and evaluating policies.

Uploaded by

Shankar Lal Das
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Chapter 1: Introduction

➢ System dynamics is a methodology based on feedback concepts.


➢ It can handle easily non-linearity, time delay and multi-loop structures of the complex
and dynamic systems.
➢ Many software such as STELLA, VENSIM, POWERSIM are now a days available for
system dynamics modeling.

Open and feedback system

System: System means a grouping of parts that operate together for a common purpose.

➢ For example, a tractor is a system of components that work together for providing
cultivation.
➢ A system may include people as well as physical parts. A family is a system for living
and raising children.
➢ Crop irrigation system is an example of agricultural system. Price forecasting is an
example of economic system.

System may be classified as open system and feedback system.

Open system: In open system the output responds to input, but output has no influence on the
input.

➢ Also the input is not aware of its own performance.


➢ In open system past action does not affect the future action.
➢ For example, a watch is not aware of its inaccuracy and does not correct the time itself.
➢ Filling up a water tank without controlling the valve is an example of open loop system.

In an open system, the problem is perceived and action is taken, but the result does not influence
action (Fig. 1.1). Filling up a water tank without controlling the valve is an example of open loop
system (Fig. 1.2). When the hand valve is opened, water starts flowing in the tank and the water
level in the tank continues to increase until the hand valve is closed by the user who is not part of
the system.

Fig. 1.1: Open system concept


Fg.1.2: Filling up a water tank
without control of the valve

Feedback system: Feedback systems are closed loop systems and the inputs are changed on the
basis of output.

➢ A feedback system has a closed loop structure that brings back the results of the past
action to control the future action.
➢ In a closed system, the problem is perceived, action is taken and the result influences the
further action.
➢ Thus, the distinguishing feature of a closed loop system is a feedback path of
information, decision and action connecting the output to input.

In a closed system, the problem is perceived, action is taken and the result influences the further
action (Fig. 1.3). Thus, the distinguishing feature of a closed loop system is a feedback path of
information, decision and action connecting the output to input.

Fig. 1.3: Closed loop system concept

Feedback system may be classified as either positive feedback system or negative feedback
systems.

Positive feedback system: Positive feedback systems generate growth.


➢ For example, population growth system is an example of positive feedback system.
➢ Population multiplies to produce more population which increases the growth rate at
which the population is increased.

Fig. 1.4: Population growth system

Negative feedback system: Negative feedback systems are goal-seeking.

➢ When the room temperature is controlled by a thermostat or temperature controller, the


system tries to maintain the set temperature.
➢ When the heater is turned on, the temperature increases to set point and then heater is
turned off.
➢ The temperature reaches ultimately equilibrium and thus, the system is goal seeking and
an example of a negative feedback system.

Fig. 1.5: Temperature control system in a room

Chapter 2

System thinking: System dynamics


System thinking: System thinking is a method of studying the dynamic behavior of a complex
system considering the system approach, i.e. considering the entire system rather than in
isolation.

System dynamics: System dynamics is a tool or a field of knowledge for understanding the
change and complexity over time of a dynamic system.

System thinking methodology:

To enhance system thinking and system learning, the system must be modeled and simulated.
Basically, there are six important steps in building system dynamics model. Therefore the steps
needed for modeling and simulating or complex system based on systems thinking are discussed
below.

1. Identify the problem


2. Propose dynamic hypothesis
3. Build simulation model
4. Test simulation model
5. Design and evaluate policy

1 Identify the problem

➢ The first step in the model building is to indemnify the problem, set its boundary and
state the specific objectives.
➢ The problem should be clearly identified.
➢ The system boundary should encompass that portion of the whole system which
includes all the important and relevant variables to address the problem.
➢ Problem identification should include clear statement of the problem based on
different reports, historical and statistical records and previous studies.
➢ It should clearly describe the major factors influencing the dynamics of the system
behavior with facts and figures.
➢ It should include the purpose and clearly defined objectives.
➢ Major subsystems and their relationships within and between the subsystems of the
system as a whole should be clearly described.
➢ All the variables or factors relevant to the study objectives should be included.

2 Propose dynamic hypothesis

Following on from this initial stage, a dynamic hypothesis is proposed where the aim is to
identify the stock, flow and feedback structures can best explain the problematic behavior. The
problem is mapped using tools such as causal loop diagrams, stock and flow maps, and other
appropriate facilitation tools.

Build Simulation Model


3
With a mapping structure and feedbacks identified, the simulation model can be formulated, with
the stock and flow structure and decision rules.

4 Test Simulation Model.

The fourth stage is testing, where the model behavior is compared to the known reference
models, and its robustness is tested under extreme conditions. Sensitivity testing can also be used
to evaluate the impact of uncertainly in model parameters on overall outcomes.

5 Design and Evaluate Policy.


The fifth stage is policy design and evaluation, which requires that the model is robust and has
passed a suite of rigorous tests. In this activity, new decision rules, strategies and structures that
could be implemented in the real-world are evaluated. The simulation model is used to perform
what-if analysis to observe the potential impact of new policies. Following this, improvement
actions can be agreed with clients, and the implementation of system changes can follow.

Critical aspects of system thinking

The following aspects of system thinking are very important for studying the dynamic behavior
of the complex system:

1. Thinking in terms of cause-and –effect relationships.


2. Focusing on the feedback linkages among components of a system.
3. Determining the appropriate boundaries for defining what is to be included within a
system.

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