1.
SYSTEM DYNAMICS A POWERFUL
TOOL FOR INFLUENCING PROJECT
DYNAMICS
PRESENTED AT THE PMI CON2005 NEW DELHI, 11TH
November 2005, New Frontiers in Project Management
By Himadri Banerji
Reliance Energy.
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PROJECT MANAGEMENT

2.
INTRODUCTION TO SYSTEM DYNAMICS
• EVENTS HAPPEN AS A CONSEQUENCE OF
PATTERNS OF BEHAVIOUR OF A SYSTEM
• BEHAVIOUR OVER TIME (DYNAMICS) IS OFTEN
COUNTER INTUTIVE AND A RESULT OF
• STRUCTURE OF THE SYSTEM WITH THE
INTERCONNECTED INFLUENCES AND FEEDBACKS
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3.
EVENT…BEHAVIOUR… STRUCTURE…
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4.
EXAMPLES OF BEHAVIOUR
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5.
EVENT…BEHAVIOUR… STRUCTURE…
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6.
THE BASIC ELEMENT OF STRUCTURE IS FEEDBACK LOOP
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7.
FEEDBACK LOOPS IN STRUCTURES INTERACT WITH
EACH OTHER GIVING PATTERNS OF BEHAVIOUR
SYSTEM DYNAMICS AND PROJECT
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8.
EVENT…BEHAVIOUR… STRUCTURE…
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9.
TYPICAL MAIN ELEMENTS IN FEEDBACK LOOPS AND
BEHAVIOUR
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10.
INTRODUCTION TO SYSTEM DYNAMICS
SYSTEM DYNAMICS IS THE STUDY OF
• PATTERNS OF BEHAVIOUR
• ARISING OUT OF THE INFLUENCE
• OF INTERRELATIONSHIPS OF VARIOUS ELEMENTS
COMPRISING SYSTEM STRUCTURES
• THROUGH MODELLING AND SIMULATION.
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11.
INTRODUCTION TO SYSTEM DYNAMICS
SYSTEM DYNAMICS HELPS IN
• DESIGNING THE INTERCONNECTIONS AND THE
STRUCTURE
• TO GIVE MORE CONFIDENCE AND PREDICTABILITY
IN BEHAVIOUR OF SYSTEMS.
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12.
SYSTEM DYNAMICS CONCEPTS
FOCUSES ON DYNAMIC BEHAVIOUR
SYSTEM STRUCTURE AND FEEDBACK AS
CAUSE OF DYNAMICS IN BEHAVIOUR
EMPHASIS ON INTERNAL BEHAVIOUR AND
HOW ONE HAS TO CHANGE STRUCTURE.
A MODEL IS AN INTEGRAL PART OF
ORGANIZATIONAL LEARNING
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13.
SYSTEM DYNAMICS TOOLS
SOFT TOOLS HARD TOOLS
BEHAVIOUR OVER COMPUTER
TIME GRAPHS MODELLING
CAUSAL- LOOP COMPUTER
DIAGRAMMING SIMULATION
SYSTEM ARCHETYPES CALIBRATION TO DATA
MENTAL SIMULATION SENSITIVITY WHAT IF
ANALYSIS
SYSTEM THINKING
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14.
SYSTEM DYNAMICS BASICS
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HOW ARE SYSTEM DYNAMICS MODELS CREATED
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16.
SYSTEM DYNAMICS AND PROJECT
MANAGEMENT 16
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17.
LINK AND LOOP POLARITY
BASIC CONCEPTS
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COMPUTER SIMULATION EQUATIONS
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REINFORCING LOOP COMPLICATING CONTROL
RESPONSE
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DOMINANT PROJECT CONTROLLING
LOOP…EXAMPLE
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23.
FURTHER COMPLEXITY
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24.
SYSTEM THINKING AND PROJECT MANAGEMENT
TRADITIONAL APPROACHES VS SYSTEMS
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25.
DYNAMICS ???
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TRADITIONAL APPROACHES…PROJECT ANALYSIS
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DYNAMICS ???
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BENEFITS OF A SYSTEM DYNAMICS APPROACH
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29.
SYSTEM DYNAMICS SAVES HALF OF THE ORIGINAL
TIME FOR PRODUCT DEVELOPMENT
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TRADITIONAL APPROACHES FAIL TO CONSIDER
SOFT FACTORS…FOR EXAMPLE REWORK
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OR UNDISCOVERED REWORK…
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32.
SYSTEM DYNAMICS MODEL STOCKS AND FLOWS,
CONSTANTS, AUXILIARIES(COMPONETS FOR RATES) AND
EXTERNAL VARIABLES
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33.
FEEDBACKS…OTHER SOFT FACTORS IGNORED IN
TRADITIONAL APPROACHES
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34.
DESIGN OVERLAP..FEEDBACK
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35.
CONSTRUCTION OVERLAPS..FEEDBACK
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36.
FEEDBACK LOOPS CAUSING PROJECT DYNAMICS….
IMPACT ON PRODUCTIVITY/QUALITY
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37.
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38.
BEHAVIOUR OF DESIGN PROCESS
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UNDISCOVERED REWORK SHOWS UP AS REVISIONS
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STAFFING EXPERIENCES…….FROM PROJECTS
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41.
CAUSED BY
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STAFFING EXPERIENCES..ACTUAL PROJECT
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AGAIN CAUSED BY NEED TO EXECUTE REWORK
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44.
PRODUCTIVITY AND QUALITY VARY OVER TIME
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46.
SYSTEM DYNAMICS
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WORSENING FACTORS
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CONCLUSION….INDUSTRY EXPERIENCES
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ACKNOWLEDGEMENTS
MIT OPEN COURSE STUDY IN SYSTEM DYNAMICS
A free and open educational resource for faculty, students, and
self-learners around the world. OCW supports MIT's
mission to advance knowledge and education, and serve
the world in the 21st century. It is true to MIT's values of
excellence, innovation, and leadership.
http://ocw.mit.edu
SYSTEM DYNAMICS SOCIETY : www.systemdynamics.org
CONCEPTS FROM THE ORIGINAL PAPER OF Dr. J.W FORRESTER
PROFESSOR EMERITUS MIT FOUNDER ON “ SYSTEM DYNAMICS”:
System dynamics in education project: http://sysdyn.clexchange.org
PROBLEM DIAGNOSTICS AND PROJECT DYNAMICS BY
NATHANIEL OSGOOD…
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MANAGEMENT 50
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