Introduction to System

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System
Definition
A set of elements or components that interact to accomplish goals A combination of components working together. Or A system is a collection of people, machines, and methods organized to accomplish a set of specific tasks.
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Elements (Components) of a System

Inputs Processor(s) Outputs Control Feedback Environment Boundaries and Interface.

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System Example
Elements System Inputs Actors, director, staff, sets, equipment Processing elements Goal Outputs Entertaining movie, film awards, profits

Movie

Filming, Finished film editing, delivered to special effects, movie studio distribution

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Characteristics of a System
Organization Interaction Interdependence Integration Central objective

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Types of Systems
System boundary
Defines the system and distinguishes it from everything else

System types
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Conceptual vs. Empirical Natural vs. Manufactured Open vs. closed Stable vs. dynamic Adaptive vs. non-adaptive Permanent vs. temporary Stationary vs. Non-Stationary Subsystems vs.. Supersystems Social, People-Machine and Machine

Conceptual and Empirical

Conceptual
Concerned with theoretical structures May or may not have any counterpart in the real world. Eg: Economic theory, Organization theory etc.

Empirical
Concrete operational systems made up of people, machines, energy, materials and other physical things, Thermal, electrical, chemical, information and other such systems involving intangibles also fall in this category. May be derived from or based upon conceptual systems. Represent the conversion of concepts into practice.

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Natural and Manufactured

Natural
Abound in nature. Entire ecology of life is a natural system.

Manufactured
Formed when people first gathered in groups to live and hunt together. Appear in infinite variety.

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Social, People-Machine and Machine

Social
Made up of people E.g.: business organizations, political parties etc.

People-Machine
Mostly empirical systems fall into this category. System composed of people who utilize certain equipments to achieve their objectives.

Machine
Machine giving their own inputs and maintain themselves. MC 201
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Open and Closed systems

Open system
A system that interacts freely with its environment, taking input and returning output

Closed system
A system that is cut off from its environment and does not interact with it

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Adaptive and Non-Adaptive

Adaptive
System that has the ability to change itself or its environment in order to survive.

Non-Adaptive
System which do not change or modify itself.

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Deterministic or Probabilistic Systems

A deterministic system is one in which the occurrence of all events is perfectly predictable. If we get the description of the system state at a particular time, the next state can be easily predicted. Probabilistic system is one in which the occurrence of events cannot be perfectly predicted. An example of such a system is a warehouse and its contents.

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Permanent and Temporary

Permanent
Systems enduring for a time-span that is long relative to the operations of humans . Policies of a business organization

Temporary
Designed to last for a specified time period After that they are dissolved.

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Stationary /Non-Stationary
Stationary
Whose properties and operations either do not vary significantly or Else vary only in repetitive cycles.

Non-Stationary
Which varies a lot.

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Subsystems/Supersystems
Subsystems
Smaller systems within the system

Supersystems
Opposite to subsystems Larger system of which subsystem is a part. Denotes extremely large and complex system

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System Approach
The notion was one of synergism-the sum of the parts is greater than the whole. An information system ought to be designed based on synergy of subsystems viz. human resource, production, marketing, sales, logistics, inventory control, manufacturing, legal, finance, accounting, customer care and service with interrelation amongst one another in order to achieve a net unified cohesive system which can: 1. Optimize the net results of the operations of an organization. 2. Monitor the operational business plans and strategies in right earnest. MC 201
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3. Re-structure, re-orient, re-design and re-engineer the business processes if need arises.

Relevance of System approach

The Increased Complexity of Business The Increased Complexity of Management

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The Increased Complexity of Business

The technology revolution Research & development Product changes The information explosion

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The Technological Revolution

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Research & Development

Order of the day. Every firm is spending a lot for research and development. It should provide for better planning, better management, and better information to accommodate the effects.

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Product Changes
Return in shorter time. Grown from growing customer needs for sophistication.

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The Information Explosion

The manager is essentially a processor of information. Using right information with the right person at the right place at right time in the right format.

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The Increased Complexity of Management

The theory of information feedback systems A better understanding of the decisionmaking process Operations research or management science techniques that permit an experimental or simulation approach to complex problems The electronic computer
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Information Feedback Systems

It explains the goal-seeking, self-correcting interplay between the parts of a system, whether the system is business, mechanical, or otherwise. Related with control.

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Decision Making
Automating or programming decisions. Management and information systems design is a basic consideration.

Management Science
Linear programming, probability etc. Simulation
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Using The System Approach In Problem Solving

Define the problem Gather data describing the problem Identify alternative solutions Evaluate these alternatives Select and implement the best alternative Follow up to determine whether the solution is working

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Define the Problem

Identifying the problem. Distinguish between symptoms and real problems.

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Gather Data
Study the environment,
current standards: determining the validity according to competitive environments. input resources Internal procedures

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Identify Alternatives
To identify various alternatives present and list them out. Each alternative should support a different strategy.

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Evaluate Alternatives
The extent to which each alternative enables to achieve organizational objectives.

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Implementation
Selection of best available alternative. Implement the best alternative.

Follow Up
Follow up to see whether the system is meeting its goals. If not, suggest changes to be made.
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The Business Organization as a System

CONTROL
PLANS PROGRAMS POLICIES STRATEGIES STANDARDS OF PERFORMANCE EXTERNAL CONTROLS

INPUT MANPOWER MONEY MATERIALS MACHINES INFORMATION

PROCESSING MANAGEMENT INFORMATION SYSTEM

OUTPUT OBJECTIVES
PROBABILITY PRODUCTIVITY GROWTH INNOVATION EMPLOYEE DEVELOPMENT

Measure performance against plan

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