Successful corporate action requires a comprehensive recognition of the relevant cause-effect relationships. In combination with the mental models of decision-makers, and as a complement to static instruments for business management, system dynamics simulation models provide valuable support. However, due to the usually experienced big effort and the demand of specific modelling knowledge the use of such models is not yet widespread within management. In order to give medium-sized companies in particular access to such simulation models, a practice-oriented concept was developed, enabling the design and implementation of system dynamics models as to support decision-making within strategic management. Within the framework of an empirical case-study, simulation models were developed for and implemented in four production companies. In order to make the modelling process as simple, efficient, effective and relevant as possible, a practical procedure was derived out of the case studies. This procedure describes the entire modelling process encompassing the initial process of structuring the mental models, the development of quantitative simulation models, as well as the analysis of various scenarios. The concept is based on generic model components, assembled to form a fundamental model structure (backbone) in order to facilitate and to accelerate the modelling process.
One of the excellence enablers is KM . In order to evaluate the KM processes, a comprehensive model is required, which should be able to capture all aspects of KM. One of such models is KMAT . This research exploits system dynamics in order to measure the effects of KM on business excellence with a combination of KMAT and EFQM .Relationships between KM and EFQM are analyzed and demonstrated by means of the literature reviews, expert interviews and system dynamics .The results of this study could be useful for knowledge management planners and managers in organizations.
The Brazilian program for sugarcane ethanol has been greatly successful since its inception about 40 years ago. But the road has been bumpy and today there are still major problems with price, supply and demand stability. This paper describes a research with the objective to propose policies by the government to stabilise and foster the Ethanol market in Brazil. The policies are tested by simulation. For that purpose a system dynamics model was built and calibrated to mimic the industry. Once the model is considered robust, it is used to test several proposed policies under different macroeconomic scenario forecasts. Historical evidence and the simulations suggest that the dynamics in the system are highly important in defining prices and other important variables. As one example, periods of high growth tend to negatively influence productivity after five to six years via a decreased investment in crops renovation which may create long term cycles. The effects of long term dynamics are mixed with several short and long term cycles typical of commodities markets and the combination increases complexity exponentially. Simulation can be a crucial tool for understanding causality and planning sound policies for the medium to long terms.
This paper is about the shortage of water resources in the central part of Iran -Isfahan while the region faces rapidly growth of the population. The study utilizes the system dynamics approach. The model consists of the following three main parts: water consumption, water resources and population. We will account for the current policies and the current population growth rate in hope of preventing a catastrophic failure in less than two decades from now. So, emigration, birth control policies and major changes in the consumption style are evaluated.