Operations Management using System Dynamics.ppt

Operations Management using System Dynamics Part I Learning Objective After this class the students should be able to: Understanding how System Dynamics can be used to understanding the dynamic of operation Drawing a simple model using the basic elements of System Dynamics Time management The expected time to deliver this module is 50 minutes. 20 minutes are reserved for team practices and exercises, 30 minutes for lecture. System Dynamics an approach developed to understand how the interaction between policies and structure of a organization determine its behavior. It is used to show how interaction between structures of the systems and the policies used to control them can explain their behaviors. Dynamic models are those that try to reflect changes in real or simulated time and take into account that the model components are constantly evolving as a result of previous actions. Basic elements This methodology use five basics elements: Stock Variable; Flow Variable; Information Flow; Material Flow; and Time Delay Stock Flow Stock variables are also called state variable. They indicate the status of our system through time. They represent stocks, that is, accumulations. They collect whatever flows into them, net of whatever flows out of them. Flow variables are also called control variables. They are the ones that directly change the stocks. They can increase or decrease the stocks through time. Birth (per time period) or water inflow (to a reservoir) or heat flow from a hot body are examples Delays and Converter Delays are Interruptions between actions and their consequences Transforming or converting variables are sources of information used to change the control variables. Such a variable might be the result of an equation based on still other transforming variables or parameters. The birth rate, the evaporation rate, or the heat loss coefficient are examples of transforming variables. Graphical Representation Interdependent stocks We can unders