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Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen [email protected]...

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Page 1: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,
Page 2: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Principles of Systems Dynamics

Modeling and Analysis

Principles of Systems Dynamics

Modeling and Analysis

Pål I. [email protected] of Geography,

University of Bergen,N-5020 Bergen,

fax. 55 584107 tel. 55 584134

Pål I. [email protected] of Geography,

University of Bergen,N-5020 Bergen,

fax. 55 584107 tel. 55 584134

Page 3: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Knowledge elicitation

Knowledge elicitation

Problem identification

Problem identification

Problem solving

Problem solving

ManagementManagement

Knowledgedissemination

Knowledgedissemination

System DynamicsSystem Dynamics

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

Backlog

Backlog Management

ExpOrdRate 1RepairRate2DesRepairRate3OrderRate4

0 50 1001.000

1.050

1.100

1.150

1.200

1 2 3 4

1

2

3

4 12

3

4

a.

ExpOrdRate 1RepairRate2DesRepairRate3OrderRate4

0 50 1001.000

1.050

1.100

1.150

1.200

1 2 3 4

1

2

3

4 12

3

4

Backlog1DesBacklog2

0 50 1004.000

4.500

5.000

5.500

1 2

1

2

1

2

b.

Page 4: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

StructureStructure

EventsEvents

BehaviorBehavior

Page 5: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Structure(underlying causes)

Structure(underlying causes)

Events(symptoms)Events

(symptoms)

Behavior(dynamics)

Behavior(dynamics)

Page 6: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Structure(underlying causes)

Structure(underlying causes)

Events(symptoms)Events

(symptoms)

Behavior(dynamics)

Behavior(dynamics)

Dec

isio

n

Dec

isio

n Making

Making

Page 7: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Structure(underlying causes)

Structure(underlying causes)

Events(symptoms)Events

(symptoms)

Behavior(dynamics)

Behavior(dynamics)

Dec

isio

n

Dec

isio

n Making

Making

Polic

yPo

licy D

esign

Design

Page 8: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Structure(underlying causes)

Structure(underlying causes)

Events(symptoms)Events

(symptoms)

Behavior(dynamics)

Behavior(dynamics)

Polic

yPo

licy D

esign

Design

Page 9: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

StructureStructure

BehaviorBehavior

Polic

yPo

licy D

esign

Design

Page 10: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

Page 11: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

Page 12: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

Page 13: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

StructureStructureBehaviorBehavior

Polic

y

Polic

y Design

Design

Stra

tegy

Stra

tegy

Developm

ent

Developm

ent

Page 14: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Point of Departure:

Problem behavior

Point of Departure:

Problem behavior

Page 15: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

t

Page 16: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

t

Identify:

Underlying Problem Structure

Identify:

Underlying Problem Structure

Page 17: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

t

Page 18: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Identify:

NewSolution Structure

Identify:

NewSolution Structure

t

Page 19: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

t

Page 20: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

t

Goal:Desired behavior

Page 21: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

t t

Page 22: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

t t

NewSolution Structure

NewSolution Structure

Underlying Problem Structure

Underlying Problem Structure

Desired behaviorProblem behaviorProblem behavior

HypothesisDevelopment & Testing

Page 23: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Stra

tegy

Stra

tegy

Developm

ent

Developm

ent

=>

System dynamicsa

problem-orientedmultidisciplinary

approach

=>

System dynamicsa

problem-orientedmultidisciplinary

approach

Page 24: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

t

Underlying Problem Structure

Underlying Problem Structure

Problem behaviorProblem behavior

The model shouldgenerate

the original behavior

for the right reasons

The model shouldgenerate

the original behavior

for the right reasons

Page 25: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

t

NewSolution Structure

NewSolution Structure

Desired behavior=>

The model willgenerate

the desired behavior

for the right reasons

=>The model will

generate

the desired behavior

for the right reasons

Page 26: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

t

The model shouldexplain

not “just”predict

The model shouldexplain

not “just”predict

t

Page 27: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

tt

The model must constitute a

causal feedback theory

The model must constitute a

causal feedback theory

Page 28: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Stra

tegy

Stra

tegy

Developm

ent

Developm

ent

BehaviorBehavior

StructureStructure

Page 29: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

BehaviorBehavior

StructureStructure

Page 30: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

BehaviorBehavior

StructureStructure

Page 31: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

BehaviorBehavior

StructureStructure

Page 32: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

BehaviorBehavior

StructureStructure

Page 33: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

StructureStructure

BehaviorBehavior

System Dynamics:Identify, understand, and utilize

the relationship:

System Dynamics:Identify, understand, and utilize

the relationship:

Page 34: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

StructureStructure

BehaviorBehavior

System Dynamics:Identify, understand, and utilize

the relationship:

System Dynamics:Identify, understand, and utilize

the relationship:

incomplex, dynamic systems

Page 35: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

SS DD

ComplexityComplexity

SimplicitySimplicity

Page 36: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

SS DD

RealismRealism

AbstractionAbstraction

Page 37: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

RealismRealism

AbstractionAbstraction

It is better to find …It is better to find …

Page 38: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

thanthan

… a satisfying solution to a problem that exists …… a satisfying solution to a problem that exists …

… an optimal solution toa non-existing problem

… an optimal solution toa non-existing problem

Page 39: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

MaintainingRealism

MaintainingRealism

Page 40: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

We must not onlymodel explicitly

“the plumbing of the system”

We must not onlymodel explicitly

“the plumbing of the system”

Page 41: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Make observations Form expectations

Establish attitudes

Act on incentives (decide)

We need to describe how we;We need to describe how we;

Page 42: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Actual Observed Confirmed Projected Desired Expected magnitudes

We need to differentiate between;

We need to differentiate between;

Page 43: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Petroleum Exploration

Perceived Perceived

ProductivityProductivity

ReportedReported

ProductivityProductivity

Estimated Estimated

ProductivityProductivity

ActualActual

ProductivityProductivity

Exploration EffortsExploration Efforts

DesiredDesired

DiscoveriesDiscoveries

Estimated Estimated

DiscoveriesDiscoveries

IdealIdeal

DiscoveriesDiscoveries

Page 44: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Petroleum Exploration

Perceived Perceived

ProductivityProductivity

NominalNominal

ProductivityProductivity

ReportedReported

ProductivityProductivity

Estimated Estimated

ProductivityProductivity

ActualActual

ProductivityProductivity

DesiredDesired

ProductivityProductivity

ProductivityProductivity

IncentivesIncentivesExploration EffortsExploration Efforts

DesiredDesired

DiscoveriesDiscoveries

Estimated Estimated

DiscoveriesDiscoveries

IdealIdeal

DiscoveriesDiscoveries

Page 45: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Petroleum Exploration

Perceived Perceived

ProductivityProductivity

NominalNominal

ProductivityProductivity

ReportedReported

ProductivityProductivity

Estimated Estimated

ProductivityProductivity

ActualActual

ProductivityProductivity

DesiredDesired

ProductivityProductivity

ProductivityProductivity

IncentivesIncentivesExploration EffortsExploration Efforts

DesiredDesired

DiscoveriesDiscoveries

Estimated Estimated

DiscoveriesDiscoveries

IdealIdeal

DiscoveriesDiscoveries

Page 46: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

StructureStructure

BehaviorBehavior

System Dynamics:Identify, understand, and utilize

the relationship:

System Dynamics:Identify, understand, and utilize

the relationship:

incomplex, dynamic systems

Page 47: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

ComplexityComplexity

Accumulation Accumulation FeedbackFeedback

Non-linearityNon-linearity

Page 48: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Complexitya synergy of

Complexitya synergy of

FeedbacksFeedbacks

Non-linearitiesNon-linearities

Accumulations ≡ Latencies / Delays

Accumulations ≡ Latencies / Delays

Page 49: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Accumulations ≡ Latencies/ Delays

Accumulations ≡ Latencies/ Delays

ComplexityComplexity

… the origin of dynamics… the origin of dynamics

Page 50: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Instantaneous causality

Causalityplaying out over time

Page 51: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

0

t0 1

t0 1

In a causality thatspans time

nothing happens instantaneously

In a causality thatspans time

nothing happens instantaneously

Page 52: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

0

t0 1

t0 1

Effects unfoldover time

Effects unfoldover time

900

Page 53: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Accumulations

distribute and form the effects of a change

across a system(in space)over time

Accumulations

distribute and form the effects of a change

across a system(in space)over time

Page 54: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

InventoryProduction

RateShipment

Rate

A first order accumulation process (building up distance)

Page 55: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Manpower

Inventory

Hiring &Training Rate

ProductionRate

ShipmentRate

AttritionRate

A second order accumulation process (building up speed)

Page 56: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Manpower

Inventory

Trainers

Hiring &Training Rate

ProductionRate

ShipmentRate

AttritionRate

Training Cap.Building Rate

Training Cap.Decay Rate

A third order accumulation process (building up accell.)

Page 57: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Manpower

Inventory

Trainers

Hiring &Training Rate

ProductionRate

ShipmentRate

AttritionRate

Training Cap.Building Rate

Training Cap.Decay Rate

Page 58: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Manpower

Inventory

Trainers

Hiring &Training Rate

ProductionRate

ShipmentRate

AttritionRate

Training Cap.Building Rate

Training Cap.Decay Rate

Page 59: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Manpower

Inventory

Trainers

Hiring &Training Rate

ProductionRate

ShipmentRate

AttritionRate

Training Cap.Building Rate

Training Cap.Decay Rate

Page 60: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Manpower

Inventory

Trainers

Hiring &Training Rate

ProductionRate

ShipmentRate

AttritionRate

Training Cap.Building Rate

Training Cap.Decay Rate

Page 61: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Manpower

Inventory

Trainers

Hiring &Training Rate

ProductionRate

ShipmentRate

AttritionRate

Training Cap.Building Rate

Training Cap.Decay Rate

Page 62: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Multiple accumulations

introduceintransparency that leads us to

focus on short-term problems while ignoring

long-term benefits

Multiple accumulations

introduceintransparency that leads us to

focus on short-term problems while ignoring

long-term benefits

Page 63: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Multiple accumulations

introduceintransparency that leads us to

focus on short-term benefits while ignoring

long-term problems

Multiple accumulations

introduceintransparency that leads us to

focus on short-term benefits while ignoring

long-term problems

Page 64: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

GainGain

Additional ComplexityAdditional Complexity

ReputationReputation

LossLoss

Page 65: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

GainGain

Indicated Rep. > ReputationIndicated Rep. > Reputation

ReputationReputation

LossLoss

IndicatedReputationIndicated

Reputation

Time to GainReputation

Time to GainReputation

Page 66: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

GainGain

Indicated Rep. < ReputationIndicated Rep. < Reputation

ReputationReputation

LossLoss

IndicatedReputationIndicated

Reputation

Time to LooseReputation

Time to LooseReputation

Page 67: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

GainGain

Additional ComplexityAdditional Complexity

ReputationReputation

LossLoss

IndicatedReputationIndicated

Reputation

Time to LooseReputation

Time to LooseReputation

Time to GainReputation

Time to GainReputation

Page 68: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Latenciesand

the time over whichthe effects play out

are often misperceivedmore often

underestimated than overestimated

Latenciesand

the time over whichthe effects play out

are often misperceivedmore often

underestimated than overestimated

Page 69: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Stocks+

Flows

Stocks+

Flows

Page 70: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Backlog

OrderPlacement

Rate

OrderExecution

Rate

Page 71: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Inventory

ProductionRate

DeliveryRate

Page 72: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Cash

RevenueRate

PaymentRate

Page 73: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Personnel

HiringRate

AttritionRate

Page 74: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Capital

AcquisitionRate

DiscardRate

Page 75: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

PaymentRate

DepreciationRate

BookValue

Capital

AcquisitionRate

DiscardRate

Page 76: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

PaymentRate

DepreciationRate

BookValue

Capital

AcquisitionRate

DiscardRatePrice

Page 77: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

PaymentRate

DepreciationRate

BookValue

Capital

AcquisitionRate

DiscardRatePrice

Annual Fraction Depreciated

Annual Fraction Discarded

Page 78: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

IdentifiedReserves

DiscoveryRate

ProductionRate

Page 79: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Depreciation

Rate

BookValue

IdentifiedReserves

DiscoveryRate

ProductionRate

ExplorationExpenditures

Page 80: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Depreciation

Rate

BookValue

IdentifiedReserves

DiscoveryRate

ProductionRate

ExplorationExpenditures

Cum Production

Recovery Technology

Total Recoverable Resource Remaining(CumulativeProduction + IdentifiedReserves)*FractionRecoverable

-CumulativeProduction)

Page 81: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Depreciation

Rate

BookValue

IdentifiedReserves

DiscoveryRate

ProductionRate

Unit Exploration Expenditures

ExplorationExpenditures

Total Recoverable Resource Remaining

Recovery Technology Cum

Production

Page 82: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Depreciation

Rate

BookValue

IdentifiedReserves

DiscoveryRate

ProductionRate

Unit Exploration Expenditures

ExplorationExpenditures

Total Recoverable Resource Remaining

Recovery Technology Cum

Production

Page 83: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

No stocks,no state

No stocks,no state

Page 84: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

No stocks,no state

No stocks,no state

No flows,no dynamics

No flows,no dynamics

Page 85: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Stocksact asbuffers

they de-couple flows

Stocksact asbuffers

they de-couple flows

Page 86: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Stocksintegrate

flows

Stocksintegrate

flows

Page 87: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Debt

Import Rate Export Rate

Stocksintegrate

flows

Stocksintegrate

flows

Page 88: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Debt

Import Rate Export Rate

Page 89: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Debt

-Export Rate

Net Import Rate=

Import Rate

The Debt Model

Page 90: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Debt

0

t0 1

t0 1

-Export Rate

Import Rate

Page 91: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Debt

0

t0 1

t0 1

-Export Rate

Import Rate

Page 92: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Debt

0

t0 1

t0 1

Stocksconstitute

delays

Stocksconstitute

delays

-Export Rate

Import Rate

Page 93: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Just like driving a car .......Capital

Personnel

Shipments

Inventory

Exp. Demand

AttritionRecruitment

Acquisitions Phase-outs

Production

Adj. Exp.Demand

Market Demand

Page 94: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

ComplexityComplexity

Dynamics Dynamics

DelayDelay FeedbackFeedback

Non-linearityNon-linearity

Page 95: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Delay

Distributes the effectof our efforts

through the system over time

Delay

Distributes the effectof our efforts

through the system over time

Page 96: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Price-+

DemandSupply

Perceived Shortages

+-

Delaydistributes the effect

of our effortsthrough the system over time

Delaydistributes the effect

of our effortsthrough the system over time

Page 97: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Price-+

DemandSupply

Perceived Shortages

+-

Delayobscures

the relationship betweencause and effect

Delayobscures

the relationship betweencause and effect

Page 98: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Price-+

DemandSupply

Perceived Shortages

+-

=>It is difficult to …

=>It is difficult to …

Page 99: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Price+

+

Perceived Shortages

Demand-

Supply

identify problems(what are their causes)

identify problems(what are their causes)

-

Page 100: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Price+

+

Perceived Shortages

Demand-

Supply

take effective actions(what do they cause)take effective actions(what do they cause)

-

Page 101: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Price-+

+

Perceived Shortages

Demand-

Supply

… and feedback ...

… and feedback ...

+… does not make it

less difficult… does not make it

less difficult

Page 102: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Price-+

+

Perceived Shortages

Demand-

Supply

A note on ...A note on ...

+… econometrics… econometrics

Page 103: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Price-+

+

Perceived Shortages

Demand-

Supply

A note on ...A note on ...

+

… the significance of

the time horizon

… the significance of

the time horizon

Page 104: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,
Page 105: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

ComplexityComplexity

FeedbackFeedback

Non-linearityNon-linearity

Accumulation Accumulation

Page 106: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Accumulations ≡ Latencies/ Delays

Accumulations ≡ Latencies/ Delays

ComplexityComplexity

From the origin of dynamics to… From the origin of dynamics to…

Page 107: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

FeedbackFeedback

ComplexityComplexity

Accumulations ≡ Latency/ DelayAccumulations ≡ Latency/ Delay

… circular causality … circular causality

Page 108: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Circular causality

leadus to reason in circles:

Cause becomes effectand

effect becomes cause

Circular causality

leadus to reason in circles:

Cause becomes effectand

effect becomes cause

Page 109: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

This is why we need to say

Some change in Bleads to a change in A …

which over a period of time

leads to a change in B

This is why we need to say

Some change in Bleads to a change in A …

which over a period of time

leads to a change in B

A BA B

Page 110: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Price-+

+

Perceived Shortages

Demand-

Supply

SpeculativeDemand

+

+

SpeculativeSupply

-

-

- -

+++

Page 111: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Price-+

+

Perceived Shortages

Demand-

Supply +

SpeculativeDemand

+

+

SpeculativeSupply

-

-

- -

Page 112: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Price-+

Perceived Shortages

DemandSupply +

SpeculativeDemand

+

+

SpeculativeSupply

-

-

- -

+-

Page 113: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

MoreFeedback

(FblExmpls)

Page 114: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Managementfrom a

System Dynamicsperspective

Managementfrom a

System Dynamicsperspective

Page 115: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Managementfrom a

System Dynamicsperspective

Strengthenfavorable loops

Managementfrom a

System Dynamicsperspective

Strengthenfavorable loops

Page 116: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Managementfrom a

System Dynamicsperspective

Strengthenfavorable loops

Weakenunfavorable loops

Managementfrom a

System Dynamicsperspective

Strengthenfavorable loops

Weakenunfavorable loops

Page 117: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Price-+

+

Perceived Shortages

Demand-

Supply

+

SpeculativeDemand

+

+

SpeculativeSupply

-

-

- -

++

Page 118: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Challenge:

What loops arefavorable or unfavorable

variesfrom one point in time

to the nextbecause …

Challenge:

What loops arefavorable or unfavorable

variesfrom one point in time

to the nextbecause …

Page 119: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Effects take timeEffects take time

Effects feed backEffects feed back

... not only do... not only do

Page 120: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Effects take timeEffects take time

Effects feed backEffects feed back

Effects also synergizeEffects also synergize

Page 121: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

FeedbacksFeedbacks

Non-linearitiesNon-linearities

Complexitya composite of

Complexitya composite of

Accumulations ≡ Latency/ DelayAccumulations ≡ Latency/ Delay

Page 122: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

ComplexityComplexity

FeedbackFeedback

Non-linearityNon-linearity

Accumulation Accumulation

Page 123: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Non-linearity

causes

the response to a change in a variable

to be conditioned bythe state

of the system…

Non-linearity

causes

the response to a change in a variable

to be conditioned bythe state

of the system…

Page 124: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Efficiency in Exploration

50

25

0 0.5 1Fract. Total Resource

Remaining Undiscovered

0

...(1) by the value of the variable itself.. ...(1) by the value of the variable itself..

Page 125: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Efficiency in Exploration

50

25

0 0.5 1Fract. Total Resource

Remaining Undiscovered

0

Page 126: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Non-linearity

causes

the response to a change in a variable

to be conditioned bythe state

of the system…

Non-linearity

causes

the response to a change in a variable

to be conditioned bythe state

of the system…

Page 127: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Z=

X * Yor

X / Yrather than

X + Y or X - Y

Z=

X * Yor

X / Yrather than

X + Y or X - Y

X Y

.. (2) by the value of other variables.. .. (2) by the value of other variables..

Subsystem I Subsystem II

Page 128: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Yield=

Investments * Productivity=

Investments*

Productivity From Technology*

Effect Of ExplorationOn Productivity

Yield=

Investments * Productivity=

Investments*

Productivity From Technology*

Effect Of ExplorationOn Productivity

Technology

ExplorationFinance

Investments

Productivity

Eff. Of ExplorationOnProductivity

Page 129: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

To be continued ...

Page 130: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Cumulative

Identified Resource

Additions to

Total ResourceTotal Resource(TR)(TR)

UndiscoveredResource

(UR)

Page 131: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

UndiscoveredUndiscoveredResourceResource

(UR)(UR)

Total ResourceTotal Resource(TR)(TR)

Page 132: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

UndiscoveredUndiscoveredResourceResource

(UR)(UR)

Total ResourceTotal Resource(TR)(TR)

TechnologicalTechnologicalProgressProgress

Page 133: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

UndiscoveredUndiscoveredResourceResource

(UR)(UR)

Total ResourceTotal Resource(TR)(TR)

TechnologicalTechnologicalProgressProgress

ExplorationExplorationProgressProgress

Page 134: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

UndiscoveredUndiscoveredResourceResource

(UR)(UR)

Productivity From TechnologyProductivity From Technology==

Techn. DiscoverableTechn. DiscoverableResource Remaining (TDRR)Resource Remaining (TDRR)

//Undiscovered Resource (UR)Undiscovered Resource (UR)

Page 135: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

UndiscoveredUndiscoveredResourceResource

(UR)(UR)

Total ResourceTotal Resource(TR)(TR)

Productivity From TechnologyProductivity From Technology==

Techn. DiscoverableTechn. DiscoverableResource Remaining (TDRR)Resource Remaining (TDRR)

//Undiscovered Resource (UR)Undiscovered Resource (UR)

TechnologicalTechnologicalProgressProgress

Page 136: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

UndiscoveredUndiscoveredResourceResource

(UR)(UR)

Total ResourceTotal Resource(TR)(TR)

Effect of Exploration Effect of Exploration On ProductivityOn Productivity

==

Undiscovered Resource (UR) Undiscovered Resource (UR) //Total Resource (TR)Total Resource (TR)

Page 137: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

UndiscoveredUndiscoveredResourceResource

(UR)(UR)

Total ResourceTotal Resource(TR)(TR)

ExplorationExplorationProgressProgress

Effect of Exploration Effect of Exploration On ProductivityOn Productivity

==

Undiscovered Resource (UR) Undiscovered Resource (UR) //Total Resource (TR)Total Resource (TR)

Page 138: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Yield=

Investments * Productivity=

Investments*

Productivity From Technology*

Effect Of ExplorationOn Productivity

Yield=

Investments * Productivity=

Investments*

Productivity From Technology*

Effect Of ExplorationOn Productivity

Technology

ExplorationFinance

Investments

Productivity

Eff. Of ExplorationOnProductivity

Page 139: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Yield=

Investments * Productivity=

Investments*

Techn. DiscoverableTechn. DiscoverableResource Remaining (TDRR)Resource Remaining (TDRR) //Undiscovered Resource (UR)Undiscovered Resource (UR)

*

Undiscovered Resource (UR) Undiscovered Resource (UR) //Total Resource (TR)Total Resource (TR)

Yield=

Investments * Productivity=

Investments*

Techn. DiscoverableTechn. DiscoverableResource Remaining (TDRR)Resource Remaining (TDRR) //Undiscovered Resource (UR)Undiscovered Resource (UR)

*

Undiscovered Resource (UR) Undiscovered Resource (UR) //Total Resource (TR)Total Resource (TR)

Cumulative

Identified Resource

Additions to

TechnicallyUndiscoverable

Resource Remaining

TechnicallyDiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

Page 140: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Yield=

Investments * Productivity=

Investments*

Techn. DiscoverableTechn. DiscoverableResource Remaining (TDRR)Resource Remaining (TDRR) //

Total Resource (TR)Total Resource (TR)

Yield=

Investments * Productivity=

Investments*

Techn. DiscoverableTechn. DiscoverableResource Remaining (TDRR)Resource Remaining (TDRR) //

Total Resource (TR)Total Resource (TR)

TechnicallyDiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

Page 141: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

TechnicallyDiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

TechnologicalTechnologicalProgressProgress

ExplorationExplorationProgressProgress

Page 142: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

…so thatnon-linearity

causes

effects to becomeblended

…so thatnon-linearity

causes

effects to becomeblended

Page 143: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

=>=>Non-linearity

makes it difficult to

establish experiencewith respect to

underlying causes(diagnosis)

andleverage points, doses and timing

(treatment)

Non-linearitymakes it difficult to

establish experiencewith respect to

underlying causes(diagnosis)

andleverage points, doses and timing

(treatment)

Page 144: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Page 145: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Page 146: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Page 147: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Page 148: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Page 149: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Page 150: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Page 151: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Page 152: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Page 153: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Page 154: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Demand

-Investm. in Prod.

% of Investmentsin Production

Investm. in R&D

Qlt

+

+

R&DEfficiency

Price

Price/QLT Sales

Revenue

ProductionCapacity

ProductionRate

InventoryLevel

++

+

--

+

+

+

+

-

-

+

+ ++

+

+-

Page 155: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Non-linearitymakes it difficult to

utilize formal analysis

Non-linearitymakes it difficult to

utilize formal analysis

Page 156: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

SS DD

RealismRealism

AbstractionAbstraction

Page 157: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

It is better to be almost right(ca. 7.5) …It is better to be almost right(ca. 7.5) …

…precisely wrong(3.85564923557)

…precisely wrong(3.85564923557)

thanthan

Page 158: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Non-linearity

=>Endogenous

shifts in structural dominance

Non-linearity

=>Endogenous

shifts in structural dominance

Page 159: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Interdisciplinary analogies

Reality checks

Defining loops that serve a purpose

Interdisciplinary analogies

Reality checks

Defining loops that serve a purpose

Page 160: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Population

Page 161: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Population

Birth Rate

Page 162: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Birth Rate Death Rate

Population

Page 163: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

RGF

Reference Growth Fraction

Birth Rate Death Rate

Population

Page 164: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

RGF

Reference Growth Fraction

Birth Rate Death Rate

RGF*P

Population

Page 165: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

RGF

Reference Growth Fraction

Birth Rate Death Rate

RGF*PRGF*P

Population

Page 166: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

RGF

Reference Growth Fraction

Birth Rate Death Rate

C

RGF*PRGF*P

Carrying Capacity

Population

Page 167: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

RGF

Reference Growth Fraction

Birth Rate Death Rate

P/C

Stress

C

RGF*PRGF*P

Carrying Capacity

Population

Page 168: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

RGF

Reference Growth Fraction

Birth Rate Death Rate

P/C

Stress

C

RGF*S*PRGF*P

Carrying Capacity

Population

Page 169: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

RGF

Reference Growth Fraction

Birth Rate Death Rate

P/C

Stress

C

RGF*P*P/CRGF*P

Carrying Capacity

Population

Page 170: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

RGF

Reference Growth Fraction

Birth Rate Death Rate

RGF*P2/CRGF*P

Population

Page 171: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

RGF

Reference Growth Fraction

Birth Rate Death Rate

RGF*P

+ -

Population

RGF*P2/C

Page 172: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

5 000-

0

10 000-

0 10

+ -

5

Months

Population

+

Page 173: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

NetGrowthRate

Pop

ulat

ion

0 50 100 150 200 2500

200

400

600

800

1,000

Page 174: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

5 000-

0

10 000-

0 10

+ -

5

Months+

Population

Page 175: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

5 000-

0

10 000-

0 10

+ -

5

Months

Infectious

+

Population

Page 176: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

5 000-

0

10 000-

0 10

+ -

5

Months

Susceptible

Infectious

+

Population

Page 177: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Infectious

c * i * S/N * I

Susceptible

Net Recruitment Rate

- +

Prob Of Mtg. Susc. Hot Contacts Per Week

S/N c * I

Contact Frequency

c

Infectivity

i

Page 178: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

RGF

Reference Growth Fraction

Population

Birth Rate Death Rate

P/C

Stress

C

RGF*P*SRGF*P

Carrying Capacity

-+

-

Page 179: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate

c * i * I

Note:If the entire population

was susceptible,then all meetings with aninfections is potentially

a recruitment:

-+

-

Page 180: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate

I/N

Growth Resistance

N

c * i * I

Total PopulationNote:

No more thanthe total population

Nmay become

infectiousi.e. the total populationis the carrying capacity

-+

-

Page 181: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate Failed Recruitment Rate

I/N

Growth Resistance

N

c*i*I*GRc * i * I

Total PopulationNote:

The fractionI/N

of the populationhas already been infectedand a meeting between

such a personand

another infected does NOT contribute to

recruitment

-+

-

Page 182: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c*i*I*I/Nc * i * I

N

-+

-

Page 183: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c * i * I

Recruitmentunder the assumption that

the total population is susceptible

c*i*I*I/N-+

Page 184: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c * i * I

Recruitmentunder the assumption that

the total population is susceptible

Recruitmentfailing because a fraction (I/N) of

the total population is not susceptible

c*i*I*I/N-+

Page 185: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c*i*I2/Nc * i * I-+

Page 186: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c*i*I2/Nc * i * I

Net Recruitment Rate

c * i * I - c*i*I2/N

-+

Page 187: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

c*i

Reference Growth Fraction

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c*i*I2/Nc * i * I

Net Recruitment Rate

c * i * I * (1 - I/N)

Recruitmentsucceeding because a fraction (1 - I/N)

of the total population is still susceptible

-+

Page 188: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c*i*I2/Nc * i * I

Net Recruitment Rate

-+

c * i * I * (1 - I/N)

Page 189: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Infectious

Potential Recruitment Rate Failed Recruitment Rate

c*i*I2/Nc * i * I

Net Recruitment Rate

-+

c * i * I * (1 - I/N)

Page 190: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Infectious

c*i*I2/N

Net Recruitment Rate

c * i * I -+

c * i * I * (1 - I/N)

Page 191: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Infectious

c*i*I2/N

c * i * I

Net Recruitment Rate

-

+

c * i * I * (1 - I/N)

Page 192: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Infectious

c * i * (1 - I/N) * I

Net Recruitment Rate

Page 193: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Infectious

c * i * (1 - I/N) * I

Net Recruitment Rate

Page 194: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

InfectiousSusceptible

c * i * (1 – (N-S)/N) * I

Net Recruitment Rate

- +

Page 195: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

InfectiousSusceptible

c * i * ((N – (N-S))/N) * I

Net Recruitment Rate

- +

Page 196: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Infectious

c * i * S/N * I

Susceptible

Net Recruitment Rate

- +

Infectious

c * i * S/N * I

Susceptible

Net Recruitment Rate

- +

Prob Of Mtg. Susc. Hot Contacts Per Week

S/N c * I

Contact Frequency

c

Infectivity

i

Page 197: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Infectious

c * i * I/N * S

Susceptible

Net Recruitment Rate

- +

Infectious

c * i * I/N * S

Susceptible

Net Recruitment Rate

- +

Prob Of Mtg. Susc. Hot Contacts Per Week

S/N c * I

Contact Frequency

c

Infectivity

i

Page 198: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Infectious

Net Recruitment Rate

c * i * I *S/N

Susceptible

Infectious

Potential Recruitment Rate Failed Recruitment Rate

(c * i) * I (c*i*I/N)*I

NOTE:Although the models are equivalent,

the positive and negative loops in these two models are not the same!They ”tell the story” in two very different ways

- +

Page 199: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

5 000-

0

10 000-

0 10

+ -

5

Months

Susceptible

Infectious

+

Page 200: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

-

Infectious

NetRecruitmentRate

Infectious

Susceptible

NetRecruitmentRate

Susceptible

+

SummarySummary

Page 201: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Endogenous Shiftsin

Structural Significance

Diffusion and DepletionProcesses

Masking anegative loop

by apositive loop

Endogenous Shiftsin

Structural Significance

Diffusion and DepletionProcesses

Masking anegative loop

by apositive loop

Page 202: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Exploration Rate

Exploration Potential

-

Exploration Potential

Exploration Rate

Page 203: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Expl. / Exploit. Pot

Exploration Rate

-

Exploration Potential

Exploration Rate

+

Expl. / Exploit. Pot

Exploration Potential

Page 204: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Exploitation Rate

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Exploration Potential

Exploration Rate

Expl. / Exploit. Pot Expl. / Exploit. Pot

Page 205: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Exploration Rate

Exploited

Exploitation Rate

Expl. / Exploit. Pot Expl. / Exploit. Pot

Exploited

Exploration Potential

Page 206: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Exploited

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Exploration Rate

Exploitation Rate

Expl. / Exploit. Pot Expl. / Exploit. Pot

Exploited

Exploration Potential

Page 207: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Expl. / Exploit. Pot

Exploited

Page 208: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Investments inExploration

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Expl. / Exploit. Pot

Revenues Exploited

Page 209: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Investments inExploration

Productivityin Exploration

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Expl. / Exploit. Pot

Revenues Exploited

Page 210: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Investments inExploration

Effect of Exploration on Investment Productivity

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Expl. / Exploit. Pot

Revenues Exploited

Productivity of Investmentsin Exploration

Page 211: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

-

Exploration Potential

Exploration Rate

+

-

Exploitation RateInvestments inExploration

Productivity of Investmentsin Exploration

Investments inExploration Technology

Exploration Technology

+Expl. / Exploit. Pot

Effect of Exploration on Investment Productivity

Revenues Exploited

Page 212: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Productivity of Investmentsin Technology

Investments inExploration Technology

-

Exploration Potential

Exploration Rate

+

-

Exploitation RateInvestments inExploration

Revenues

Productivity of Investmentsin Exploration

Investments inExploration Technology

Exploration Technology

+Expl. / Exploit. Pot

Effect of Exploration on Investment Productivity

Investments inTechnology

Exploited

Exploration Technology

Exploration Technology

Exploration Technology

Exploration Technology

Exploration Technology

Page 213: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Investments inTechnology

Productivity of Investmentsin Technology

-

Exploration Potential

Exploration Rate

+

-

Exploitation Rate

Revenues

Expl. / Exploit. Pot

Effect of Exploration on Investment Productivity

Exploited

Exploration Technology

Exploration Technology

Exploration Technology

Exploration Technology

Exploration Technology

Page 214: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Investments inTechnology

Productivity of Investmentsin Technology

-

Exploration Potential

Exploration Rate

+

Revenues

Effect of Exploration on Investment Productivity

Exploited

Exploration Technology

Exploration Technology

Exploration Technology

Page 215: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Investments in Technology

Productivity of Investments

-

Exploration Potential

Exploration Rate

+Revenues

Effect of Exploration on Investment Productivity

Exploited

Exploration Technology

Exploration Technology

Exploration Technology

Page 216: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

-

Exploration Potential

Exploration Rate

+Exploited

Exploration Technology

Exploration Technology

Exploration Technology

+ -+

ExploitedExploration Technology

Page 217: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

-

Exploration Potential

Exploration Rate

+

-

Exploitation RateInvestments inExploration

Productivity of Investmentsin Exploration

Investments inExploration Technology

Exploration Technology

+Expl. / Exploit. Pot

Effect of Exploration on Investment Productivity

Revenues Exploited

Page 218: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

-

Exploration Potential

Exploration Rate

+

-

Exploitation RateInvestments inExploration

Productivity of Investmentsin Exploration

Investments inExploration Technology

Exploration Technology

+Expl. / Exploit. Pot

Effect of Exploration on Investment Productivity

Revenues Exploited

Page 219: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

-

Exploration Potential

Exploration Rate

+

-

Exploitation RateInvestments inExploration

Productivity of Investmentsin Exploration

Expl. / Exploit. Pot

Effect of Exploration on Investment Productivity

Revenues Exploited

Exploration Technology

Page 220: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

-

Exploration Potential

Exploration Rate

+

Exploitation RateInvestments inExploration

Productivity of Investmentsin Exploration

Expl. / Exploit. Pot

Effect of Exploration on Investment Productivity

Revenues

Page 221: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Investments in Exploration

Productivity of Investments

-

Exploration Potential

Exploration Rate

+Revenues

Effect of Exploration on Investment Productivity

ExploitationRate Expl. / Exploit. Pot

Page 222: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

-

Exploration Potential

Exploration Rate

+

Expl. / Exploit. Pot

+ -+

Explored / Exploit. Pot

Page 223: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

-

Undiscovered

Discovery Rate

+

Discovered

+ -+

Discovered

Page 224: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

CAIR

TUdRR

Technically DiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

TechnologicalTechnologicalProgressProgress

ExplorationExplorationProgressProgress

Investment and technology loop dominance

Investment and technology loop dominance

5 000-

0

10 000-

0 100

+

50 Years

+

UndiscoveredDiscovered

Discovered

Discovery Rate

+

Page 225: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

CAIR

TUdRR

Technically DiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

TechnologicalTechnologicalProgressProgress

ExplorationExplorationProgressProgress

-

Undiscovered

Depletion loop dominanceDepletion loop dominance

Discovered

Discovery Rate

+

5 000-

0

10 000-

0 100

+ -

50 Years

UndiscoveredDiscovered

+

Page 226: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

TUdRR

Technically DiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

DTPDTP

EPEP

-

Undiscovered

Depletion loop dominanceDepletion loop dominance

Discovered

Discovery Rate

+

5 000-

0

10 000-

0 100

+ -

50 Years

UndiscoveredDiscovered

+

CAIR

Page 227: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

TUrRR

Technically RecoverableResource Remaining

(TRRR)

TUdRR

Technically DiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

DTPDTP

EPEP

-

Undiscovered

Depletion loop dominanceDepletion loop dominance

Discovered

Discovery Rate

+

5 000-

0

10 000-

0 100

+ -

50 Years

UndiscoveredDiscovered

+

CAIR

RTPRTP

PPPP

Page 228: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

TUrRR

Technically RecoverableResource Remaining

(TRRR)

TUdRR

Technically DiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

DTPDTP

EPEP

Recovered

Production Rate

+

5 000-

0

10 000-

0 100

+

50 Years

UndiscoveredDiscovered

CAIR

RTPRTP

PPPP

+

Investment and technology loop dominance

Investment and technology loop dominance

Page 229: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

TUrRR

Technically RecoverableResource Remaining

(TRRR)

TUdRR

Technically DiscoverableResource Remaining

(TDRR)

Total ResourceTotal Resource(TR)(TR)

DTPDTP

EPEP

-

Unrecovered

Depletion loop dominanceDepletion loop dominance

Recovered

Production Rate

+

5 000-

0

10 000-

0 100

+

50 Years

UndiscoveredDiscovered

CAIR

RTPRTP

PPPP

-+

Page 230: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Could this modelbe applied in the

health sector?

Page 231: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Patients who, techno-logically considered,

cannot be treated

Patients who, techno-logically considered,

may be treated

Alle PasienterAlle Pasienter

TechnologicalTechnologicalprogressprogress

Progress in Progress in utilizationutilization

-

Untreated

Shift in loop-dominanceShift in loop-dominance

Treated

Progress

+

Patients

treated

Page 232: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

A diffusion model

Page 233: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Managementfrom a

System Dynamicsperspective

Strengthenfavorable loops

Weakenunfavorable loops

Managementfrom a

System Dynamicsperspective

Strengthenfavorable loops

Weakenunfavorable loops

Page 234: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

What loops arefavorable or unfavorable

variesfrom one point in time

to the next!

What loops arefavorable or unfavorable

variesfrom one point in time

to the next!

NoteNote

Page 235: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Managementfrom a

System Dynamicsperspective

Managementfrom a

System Dynamicsperspective

In developing robust policies,management must establish a

surveillance ofloop dominance

In developing robust policies,management must establish a

surveillance ofloop dominance

Page 236: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Managementfrom a

System Dynamicsperspective

Managementfrom a

System Dynamicsperspective

so as to decide onwhich to weaken

andwhich to strengthenat any point in time

so as to decide onwhich to weaken

andwhich to strengthenat any point in time

In developing robust policies,management must establish a

surveillance ofloop dominance

In developing robust policies,management must establish a

surveillance ofloop dominance

Page 237: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

BehaviorBehavior

StructureStructure

Page 238: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

SPREADSHEET

Multimedia databasesMultimedia databases

Modern Problem Statement Format:Modern Problem Statement Format:

Page 239: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Point of departurePoint of departure

Source Material

Page 240: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

FormalizationFormalization

Source Material

SD-model

Page 241: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

DocumentationDocumentation

Source Material

SD-model

Page 242: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Design and ControlDesign and Control

Source Material

SD-model

ILE

Page 243: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Source Material

SD-model

ILE

IllustrationIllustration

Page 244: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Source Material

SD-model

ILE

TransparencyTransparency

Page 245: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

The Modeling Process

The Modeling Process

Page 246: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Problem articulation

Formulation of dynamic hypothesis

Formulation of simulation model

Testing

Policy design & evaluation

Problem articulation

Formulation of dynamic hypothesis

Formulation of simulation model

Testing

Policy design & evaluation

Page 247: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

A predator prey model

HLstart

HL5

HL6

Page 248: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Peter M. Senge:

The Fifth Discipline

From Archetypesto

Generic Structures & Behaviorand back again.....

Peter M. Senge:

The Fifth Discipline

From Archetypesto

Generic Structures & Behaviorand back again.....

Page 249: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Limits to GrowthLimits to Growth

Eroding GoalsEroding Goals Escalation => Success to the SucessfulEscalation => Success to the Sucessful

Tragedy of the CommonsTragedy of the Commons Fixes that FailFixes that Fail Shifting the Burden to the IntervenerShifting the Burden to the Intervener => =>

Dependency & AddictionDependency & Addiction

Archetypes

Page 250: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Class of Challenges

ProblemSymptom

Own solution-

Page 251: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Class of Solutions:Shifting the burden to an intervener

Intervention

Own solution

-

-Problem

Symptom

Page 252: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Class I of Side Effects:Dependence

Intervention

Own solution

Ability tosolve+

-

-Problem

Symptom

Page 253: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

+

Class II of Side Effects:Addiction

Intervention

Own solution

Ability tosolve

-

-

Quality ofIntervention

ProblemSymptom +

Page 254: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

A Dynamic Story Problem Behavior

Page 255: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

ExpOrdRate 1RepairRate2DesRepairRate3OrderRate4

0 50 1001.000

1.050

1.100

1.150

1.200

1234

1

2

3

4 12

3

4

a.

ExpOrdRate 1RepairRate2DesRepairRate3OrderRate4

0 50 1001.000

1.050

1.100

1.150

1.200

1234

1

2

3

4 12

3

4

Backlog1DesBacklog2

0 50 1004.000

4.500

5.000

5.500

12

1

2

1

2

b.

Page 256: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Backlog

Page 257: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

Backlog

Page 258: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

Backlog

Page 259: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

Backlog

Page 260: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

DesBacklog

Backlog

Backlog Management

Page 261: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

Backlog

Backlog Management

Page 262: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

- Backlog Adjustment

Backlog Order Rate

Ideal StructureIdeal Structure

Des Repair Rate

Repair Rate

Page 263: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Response of the Backlog model to a 10% step increase in orders in week 10

ExpOrdRate RepairRateDesRepairRate

0 50 100900

1,000

1,100

1,200

Response of the Backlog model to a 10% increase in orders in week 10

BacklogDesBacklog

0 50 100

3,000

4,000

5,000

Page 264: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

A Dynamic Story Additional Evidence

A Dynamic Story Additional Evidence

Page 265: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Backlog1DesBacklog2

0 50 1004.000

4.500

5.000

5.500

12

1

2

1

2

WorkForce1DesWorkForce2

0 50 10050

52

54

56

58

60

12

1

2

1

2

HireRate1QuitRate2

0 50 1001,0

1,1

1,2

1,3

12

1

2

1

2

c.

Page 266: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

Backlog

Backlog Management

Page 267: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

OrderRate

DesRepairRate

Backlog

Backlog Management

Page 268: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

-

Des Workforce

Workforce

Backlog Adjustment

Backlog Order Rate

Problem StructureProblem Structure

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

Page 269: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

ExpOrdRate 1RepairRate2DesRepairRate3OrderRate4

0 50 1001.000

1.050

1.100

1.150

1.200

1234

1

2

3

4 12

3

4

a.

ExpOrdRate 1RepairRate2DesRepairRate3OrderRate4

0 50 1001.000

1.050

1.100

1.150

1.200

1234

1

2

3

4 12

3

4

Backlog1DesBacklog2

0 50 1004.000

4.500

5.000

5.500

12

1

2

1

2

b.

Page 270: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

SolutionSolutionOvertimeOvertime

Page 271: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

OrderRate

DesRepairRate

Backlog

Backlog Management

Page 272: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Inventory model diagram

Orders

Expectations

ProductionPlanning

Inventory Management

Labor Management

ROR

ChghEOR

TAOR

ExpOrderRate

HireRateQuitRate

ADE

Productivity

SchedPressure

Backlog

RepairRate

DesBacklog

DesDelDelTCB

CorrBacklog

NormaRepairRate

ESPRR

DesWorkForce

CorrWorkForce

TCWF

WorkForce

DesRepairRate

OrderRate

Backlog

Backlog Management

Page 273: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

Order Rate

Long term solutionLong term solution

-

-

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

Page 274: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Schedule Pressure

Des Workforce

WorkforceNormal Repair Rate

Backlog Adjustment

Backlog

Hire Rate

Effect of Over-time On Repair Rate

Order Rate

Des Repair Rate

Repair Rate

Long term solutionLong term solution

--

+

Page 275: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

Order Rate

Expected Over-time

Trouble I: DependenceTrouble I: Dependence

+

--

+

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

Page 276: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

MTBF

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

Order Rate

Expected Over-time

Trouble II: AddictionTrouble II: Addiction

+

--

+

+

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

Page 277: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

MTBF

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

Order Rate

Expected Over-time

Trouble II: AddictionTrouble II: Addiction

+

--

+

+

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

Page 278: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

MTBFComplexityComplexity

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

Order Rate

Expected Over-time

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

Page 279: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

MTBFNeg. FeedbackNeg. Feedback

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

--

Order Rate

Expected Over-time

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

Page 280: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

MTBFPos. FeedbackPos. Feedback

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

+

--

+

+

Order Rate

Expected Over-time

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

Page 281: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

MTBFDelayDelay

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

+

--

+

Order Rate

Expected Over-time

+

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

Page 282: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

MTBFNon-linearityNon-linearity

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

+

--

+

Order Rate

Expected Over-time

+

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

Page 283: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Schedulepressure

1

1-

o.8-

1.25-

o.5 1.5

Overtime

Graph

Page 284: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

1

1-

o.5 1.5

MTBF

Graph

?

?

Schedulepressure

Page 285: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

MTBFNon-linearityNon-linearity

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

+

--

+

Order Rate

Expected Over-time

+

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

Page 286: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

MTBF

Schedule Pressure

Des Workforce

Workforce

Backlog Adjustment

Backlog

Effect of Over-time On Repair Rate

+

--

+

Order Rate

Expected Over-time

+

Normal Repair Rate Hire Rate

Des Repair Rate

Repair Rate

UncertaintyUncertainty

Page 287: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Class of Challenges

Own solution-

Problem

Page 288: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Instance of a Challenge

-Recruitment

Under-/Over-Capacity

Page 289: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Class of Solutions:Shifting the burden to an intervener

Intervention

Own solution

-

-Problem

Page 290: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Instance of a Solution:Shifting the burden to the workforce

-

-

Overtime

Recruitment

Under-/Over-Capacity

Page 291: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Class I of Side Effects:Dependence

Intervention

Own solution

Ability tosolve

-

-+Problem

Page 292: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Instance I of a Side Effect:Dependence on Overtime

Recruitment

Ability/willingn.to recruit

-

-

Overtime

Under-/Over-Capacity +

Page 293: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Class II of Side Effects:Addiction

Intervention

Own solution

Ability tosolve

-

-

Quality ofIntervention

+

+

Problem

Page 294: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Instance II of a Side Effect:Increasing load through decreased MTBF

Under-/Over-Capacity

Recruitment

+-

-

MTBF

Overtime

Ability/willingn.to recruit

+

Page 295: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,
Page 296: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

SPREADSHEET

Multimedia databasesMultimedia databases

Modern Problem Statement Format:Modern Problem Statement Format:

Page 297: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Point of departurePoint of departure

Source Material

Page 298: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

FormalizationFormalization

Source Material

SD-model

Page 299: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

DocumentationDocumentation

Source Material

SD-model

Page 300: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Design and ControlDesign and Control

Source Material

SD-model

ILE

Page 301: Principles of Systems Dynamics Modeling and Analysis Pål I. Davidsen pal.davidsen@geog.uib.no Department of Geography, University of Bergen, N-5020 Bergen,

Source Material

SD-model

ILE

IllustrationIllustration

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