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Introduction to
System Thinking &
System Approach
Introduction to Industrial &
System Engineering
Week 5
Odd Semester 2019/2020
Prof. Dr. Ir. Budisantoso Wirjodirdjo, M. Eng.
Nurhadi Siswanto, S.T., M.S.I.E., Ph.D.
SYSTEM
THINKING?
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System?
“System is defined as
a collection or set of
elements (things,
entities, people) that
relate to each other
and work in
cooperation to
achieve certain
goals or
performance.”
Donella H. Meadows,
Thinking in Systems: A
Primer (Chelsea Green
Publishing, 2008) 11
System
Identity
ELEMENTS
INTERRELATIONSHIP
GOAL
PERFORMANCE
ENVIRONMENT
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Examples
Social Community
Digestive System
Hydrology System
System
Integrity
• Cutting a cow into
two pieces does not
produce two smaller
cows.
• Splitting one big
system in two does
not make it two
smaller systems. In
fact, they are no
longer the same
system.
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Do we really need system thinking?


Real world problem can be seen from many perspectives
Conclusions and solutions will differ based on what perspective we
choose to look from, what kind of situation we perceive, and what
experienced we have had in the past.
System Thinking
Comprehensiveness
An approach to view
real-world problems as
a whole  holistic
view
Mutual
Interaction
Multidiscplinary
Behavior
Anasynthesis
Mindset
A collection of
mutual interactions
between one part
of another
Seeing the behavior of
the real world in a
broad & multidisciplinary context and
its implications
Combination of
ANALYSIS &
SYNTHESIS mindset
in understanding a
problem
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System Complexity & Boundary
What is Complexity?
W.R. Ashby defined complexity as the quantity of
information required to describe something.
Complexity is subjective depending on the eye of the
beholder  brain case  the most we know about
something, the more complex we see it.
Complexity is thus in the eye of the beholder.
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What is Complexity?
System complexity is a primary function of two factors:
 Interdependencies between elements so that each
element affects other elements.
 Variability in element behavior that produces
uncertainty.
System Boundary
The separation between the system and its environment
means that there is a boundary.
In fact, boundary selection is the most critical aspect of
systems thinking.
The purpose of viewing something as a system affects what
aspects should be included as part of the system and what
aspects are more appropriately placed into the relevant
environment; in other words, where to place the boundary
of the system.
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Hierarchy
In most cases, a
system is a part of a
larger system.
This nesting of
systems within
systems within
systems is referred
to as a hierarchy of
systems
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Complex
System
“GLOBAL
Carbon
Cycle
Program”
System Input & Output
Desirable
Controllable
Input
Observed System
Output
Undesirable
Uncontrollable
Control
Management
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Unplanned &
Counterintuitive Outcomes
Action A will cause the desired outcome B to be realized,
but in addition to B the decision also causes C, D, and E.
Some of these outcomes are unintended and unpredicted.
Counterintuitive  what happens appeared at first glance
to contradict what common sense and intuition tell us
should occur.
What do you want to
learn?
What you are studying
now:
Industrial
Engineering
SYSTEM
Why?
Is INDUSTRY defined
as a SYSTEM
?
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Industry is a System, Why?
1
2
3
Consists of many elements/variables
Let’s say in a manufacturing industry, there will be:
• Man
• Machinery
• Raw Materials
• ….....
• .......
Those will function together and have
interdependencies
If one of machines has breakdown time and no available materials being
processed, then there will be no operation in plant.
Wants to achieve a certain goal, which is ...
To maximize profit as much as possible
Industrial System Framework
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SYSTEM
APPROACH?
The context within which the problem
occurs. It is the sum or aggregate of all
aspects that can or may affect or shape
the problem or issue of concern.
Problem
Identification
Problem situation is not a system model.
A system model is a representation of all
essential parts of a system
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Six Elements of a Problem
The decision maker
The decision maker’s objectives
The associated decision criterion
The performance measure
The control inputs or alternative courses of
action
The context in which the problem occurs
Example
My version
of going to
campus
Six Elements of the problem:
1. The decision maker: Rani
2. The decision maker’s objectives: To choose the best way to get campus
3. The associated decision criterion: Fast and cheap
4. The performance measure: time required and cost in rupiah
5. The control inputs or alternative courses of action: combination of route, tools/vehicles, and
departure time.
6. The context in which the problem occurs: explained in the graph
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The Aids to depict a System
 Diagrammatic aids to depict a system:
 Mind maps
 Rich picture diagrams
 Cognitive maps
 Causal Loop Diagram
 Material/Information Flowchart
 Influence Diagram
 Fishbone Diagram
 Etc.
Mind Map & Rich Picture Diagram
Rich Picture Diagram
Mind Maps
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Causal Loop
Diagram
Influence
Diagram
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Material/Information Flowchart
Fishbone/Spray Diagram
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THANK YOU... 
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