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The omnipotent nature of problems
Think about a problem that keeps you up at night, one that
really eats at you
Too easy, right?
You’ve got countless, I’m sure
Work/home/life, etc. all present numerous problems at any
given time
3
What makes problems hard? (1/2)
Significant uncertainty
Both“known unknowns” and “unknown
unknowns”
Competition
Between individuals, objectives, resources
Unpredictability
They exhibit emergent behavior
4
What makes problems hard? (2/2)
Humans-in-the-loop
Designing a mechanical system is straightforward,
although still complicated
Designing the same system while accounting for
ergonomics, fatigue, and operator error prevention is
exponentially more complex
5
What should we do?
Avoid all problems exhibiting one or more of these criteria
Boring and unrealistic
Our suggestion is adopting a novel way to reason about these
persistent, complex problems
As engineers, we tend to think we have all the answers
In reality, truly complex problems require a discipline-agnostic
approach
i.e., a purely systems engineering approach may be good for an engineering problem,
but the real, interesting problems aren’t engineering problems only
They require us to embrace concepts of many disciplines that may be advantageous
to our effort
Simply, they require us to think systemically about our problem
You should think and reason about complex problems using insight
from engineering, psychology, mathematics, biology, management,
and many other fields
6
Outline
Introduction
Systems Errors
The Systems Age
Current State in Systems Engineering
Systemic Thinking
Decision Analysis
A Way Ahead
7
Our postulation
Most complex problems can be characterized as having:
(1) significant uncertainty, (2) competition, (3)
unpredictability, (4) potential for loss, (5) bias for action
among stakeholders, and (6) humans-in-the-loop
The way in which a problem is thought about, acted on,
and observed is a major determinant of the effect of these
factors.
Independent of the construct or rigor used to address a
complex problem is the opportunity to commit a number of
errors.
There is no agreed-upon taxonomy of these errors; thus,
we’ve developed one.
8
Error typology
9
Error tree and probability
Problem to Solve
No Type IV or No Type IV or
Type IV Error Type IV Error Acting
Type V Error (P(e)) Type V Error Type V Error (P(e)) Type V Error
(P(d)) (P(d))
(1-[P(d)+P(e)]) (1-[P(d)+P(e)])
Type I Error (P(a)) Type I Error (P(a)) Type I Error (P(a)) Type I Error (P(a)) Type I Error (P(a)) Type I Error (P(a))
Type II Error (P(b)) Type II Error (P(b)) Type II Error (P(b)) Type II Error (P(b)) Type II Error (P(b)) Type II Error (P(b))
Observing
Type VI Error Type VI Error Type VI Error Type VI Error Type VI Error Type VI Error
(P(q)) (P(q)) (P(q)) (P(q)) (P(q)) (P(q))
No Type I, Type II, No Type I, Type II, No Type I, Type II, No Type I, Type II, No Type I, Type II, No Type I, Type II,
or Type VI Error or Type VI Error or Type VI Error or Type VI Error or Type VI Error or Type VI Error
(1- (1- (1- (1- (1- (1-
[P(a)+P(b)+P(q)]) [P(a)+P(b)+P(q)]) [P(a)+P(b)+P(q)]) [P(a)+P(b)+P(q)]) [P(a)+P(b)+P(q)]) [P(a)+P(b)+P(q)])
10
Adapted from Adams and Hester (2013)
Outline
Introduction
Systems Errors
The Systems Age
Current State in Systems Engineering
Systemic Thinking
Decision Analysis
A Way Ahead
11
Historical background for complex
problems (1/2)
Complexity of ill-structured, wicked, or messy problems has led
to a need for more sophisticated methods
Problem solvers have been approaching complex problems
using usually a predominantly technical perspective since the
advent of large-scale telecommunications systems in the United
States during the 1930s
Studies of these systems were interrupted by WWII, when many
scientists and engineers worked with the US military to help
solve complex logistical and strategic bombing problems
Many of these efforts made significant contributions to the
philosophy and techniques of what was then called Operations
Research
12
Historical background for complex
problems (2/2)
At the same time, the need for many novel types of electronic gear for
airborne use gave rise to a wide variety of component devices,
popularly known as black boxes
“These were ingenious devices, but their application in terms of the entire system of
which they were merely parts was a matter of improvisation” (Engstrom, 1957, p. 113)
Those working on these systems were required to think about the
system of which they were a part
After WWII, many companies (notably the RAND Corporation, the Bell
Telephone Laboratories, and RCA) hired many of these scientists and
engineers to provide services to both the government and the
telecommunications industry
Much early work in modern telecommunications system development
spurned systems approaches (Goode & Machol, 1957; Hall, 1962)
In many ways, this was the beginning of the systems age
13
Systems and complexity
Russell Ackoff (1974) used the terms machine-age and
systems-age to refer to eras that were concerned with two
different types of systems. The machine-age was concerned
with simple systems, and the systems-age was concerned
with complex systems.
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The Machine Age and the Systems Age (1/2)
Ackoff (1979) coined the concept of a mess and messes:
Because messes are systems of problems, the sum of the optimal
solutions to each component problem taken separately is not an
optimal solution to the mess. The behavior of the mess depends
more on how the solutions to its parts interact than on how they
interact independently of each other. But the unit in OR is a problem,
not a mess. Managers do not solve problems, they manage messes.
(p. 100)
Presence of human activity necessitated more than a
purely technical perspective (Ackoff, 1979)
Humans must be accounted for (and cannot be using a
machine age paradigm)
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The Machine Age and the Systems Age (2/2)
Burrell & Morgan (1979) support Ackoff’s assessment,
stating:
Mechanical models of social systems, therefore, tend to be
characterized by a number of theoretical considerations and are thus
of very limited value as methods of analysis in situations where the
environment of the subject is of any real significance. (p. 61)
In short, the methods and techniques of traditional
operations research are “ . . . mathematically sophisticated
but contextually naïve and value free” (Hughes & Hughes,
2000, p. 10)
16
Messes at the intersection between hard and soft
systems
Soft
Perspective
Hard
(organizational,
Perspective
Messes managerial,
(technical
policy, political,
factors)
and human
factors)
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System type versus system treatment
Complex
Mismatch MATCH
System is
Simple Complex
System Treated as
18
Outline
Introduction
Systems Errors
The Systems Age
Current State in Systems Engineering
Systemic Thinking
Decision Analysis
A Way Ahead
19
Current state in systems engineering (1/2)
Systems engineering has moved toward a more
processed-focused, acquisition-based discipline; it
became procedularized problem solving
Popular current SE texts include Blanchard and Fabrycky;
Kossiakoff, Sweet, Seymour and Biemer; and Sage and
Armstrong
Each of these texts expends substantial intellectual
resources discussing the process of systems engineering
Indeed, SE had lost its roots; it became systematic
engineering, where systematic connotes the methodical,
process-based nature of standards for systems
engineering
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Current state in systems engineering (2/2)
Practiced by many organizations such as the DoD and
NASA
SE, as currently practiced, is by and large the practical
application of procedural problem solving (most
traditionally problems concerning acquisition)
Their thought process may be described as systematic
thinking
Of course, many other systems approaches exist
21
Systems-based approaches to complex problem
solving (1/2)
Systems Major Theme Primary Author(s)
Approach
Viable System Diagnosis of structural system functions, relationships, and (Beer, 1979, 1981, 1985)
Model communications channels necessary for any system to maintain
existence.
Sociotechnical Work system analysis and redesign based on joint optimization of the (Cherns, 1976; Pasmore, 1988;
Systems social and technical subsystems for performing work. Taylor & Felten, 1993)
Systems Structured formulation, analysis and interpretation of the technical, (Blanchard & Fabrycky, 2011;
Engineering human, and organizational aspects of complex systems to address Sage, 1992)
needs or resolve problems subject to cost, schedule, and operational
performance constraints.
System Computer modeling and simulation approach to understand the (Forrester, 1961, 1969, 1971;
Dynamics relationships and underlying behavior of complex systems. Maani & Cavana, 2000)
Soft Systems A process of inquiry focused on formulation of ill-structured problems (Checkland, 1993)
Methodology appreciative of multiple perspectives.
Total Systems A system problem solving approach based on creative thinking, (Flood & Jackson, 1991)
Intervention appropriate method selection, and implementation of method based
change proposals to resolve complex issues.
Gibson's Systems Provides six iterative phases to study complex systems problems, (Gibson, Scherer, & Gibson,
Analysis including System Goals, Ranking Criteria, Alternative Development, 2007)
Methodology Alternative Ranking, Iteration, and Action.
22
adapted from Keating (2012, p. 212)
Systems-based approaches to complex problem
solving (2/2)
23
Historical Roots of Systems Theory
Stream of Thought Major Contributor(s) with Selected References
1. General Systems Bertalanffy (1949, 1950, 1968), Boulding (1956)
Theory
2. Living Systems Theory Miller (1978)
3. Mathematical Systems Mesarovic (1967), Wymore (1967), Klir (1968)
Theory
4. Cybernetics Rosenblueth, Wiener & Bigelow (1943), Wiener
(1948), Ashby (1947a, 1952, 1956), Forrester
(1961, 1969, 1971)
5. Social Systems Theory Parsons (1970, 1979, 1991), Buckley (1967, 1998),
Luhmann (1995, 2012)
6. Philosophical Systems Laszlo (1972, 1973, 1996), Bunge (1979, 1997,
Theory 1999, 2004)
These six systems theory streams of thought do not provide a generally accepted
canon of general theory that applies to all systems (i.e., is discipline-agnostic).
24
Our View of Systems Theory
25
Outline
Introduction
Systems Errors
The Systems Age
Current State in Systems Engineering
Systemic Thinking
Decision Analysis
A Way Ahead
26
What is systemic thinking?
As a term, it has been gaining traction in recent literature
(e.g., Boardman & Sauser, 2013; Hester & Adams, 2013;
Hester & Adams, 2014; Midgley, 2012; Mingers, 2010)
Term has been used without specificity or universality
Goal is to articulate a unique perspective on systemic
thinking to differentiate it from traditional systems
approaches
Demonstrate utility in helping individuals to increase their
understanding about problems and messes of any size,
complexity, or discipline
Founded on systems theory
27
Systematic vs. Systemic Thinking
Systematic Thinking Systemic Thinking
Age Machine Systems
Unit of Analysis Problem Mess (System of problems)
Stopping
Optimization Satisficing
Criteria
Goal Problem Solution Increased Understanding
Underlying Constructivism and
Reductionism
Philosophy Reductionism
Epistemology Analysis Synthesis and Analysis
Multidisciplinary
Discipline Scope Transdisciplinary
and Interdisciplinary
Approach Prescriptive Exploratory
adapted from Hester and Adams (2013)
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A methodology for systemic thinking (1/3)
Key is consideration of the “5 W's and How?”
Who is relevant to understanding our mess?
Stakeholders
What are we trying to achieve in understanding our mess further?
Outputs, outcomes
Why are we interested in this mess?
Motivation
Where does our situation reside?
Context and boundaries
How do we achieve improved understanding of our mess?
Mechanisms for achieving understanding
When do we want to have increased mess understanding by?
Stability and maturity
29
A methodology for systemic thinking (2/3)
Who? What?
When? Where?
32
Decision Analysis
33
What is decision making?
A process where:
1) There is more than one possibility (a choice)
2) The decision maker can form expectations concerning
future events and outcomes associated with each choice
3) Consequences contingent on the choice can be
evaluated on a subjective scale with respect to the
decision maker’s values and goals
34
Sub-disciplines
35
Why does decision making matter?
As practitioners in engineering (and in life) we are
forced to make decisions every day
So, we must know how to make these decisions
and how to differentiate between alternatives
In some cases, we must be able to defend our
choices
36
Why is rigorous decision making important?
If we make the right decision, it’s not
Atleast, to a point
No one asks questions (unless they want to repeat our
successes)
If we make the wrong decision, there are huge
consequences
We must be able to answer for our decisions
• Hyatt Regency Walkway collapse
• Ford Pinto recall
• Tacoma Narrows Bridge
• Etc….
37
So what makes a good decision?
38
Methods for decision making
Utility
Theory
Keeney, 1974
Classical Probability
Decision & Statistics
Making (CDM) Helton & Burmaster, 1996
Oberkampf & Helton, 2005
Judgment &
Prospect
Decision
Theory
Making (JDM)
Kahneman & Tversky, 1979
39
Choosing a method
Recall our earlier graphic:
Complex
Mismatch MATCH
System is
Simple Complex
System Treated as
40
Identify the appropriate technique (1/2)
Method Advantages Disadvantages Areas of Application
Multi-Attribute Takes uncertainty into account; can Needs a lot of input; preferences need to Economics, finance, actuarial, water
Utility Theory incorporate preferences. be precise. management, energy management,
(MAUT) agriculture
Analytic Hierarchy Easy to use; scalable; hierarchy Problems due to interdependence Performance-type problems, resource
Process (AHP) structure can easily adjust to fit between criteria and alternatives; can lead management, corporate policy and strategy,
many sized problems; not data to inconsistencies between judgment and public policy, political strategy, and
intensive. ranking criteria; rank reversal. planning.
Case-Based Not data intensive; requires little Sensitive to inconsistent data; requires Businesses, vehicle insurance, medicine, and
Reasoning (CBR) maintenance; can improve over many cases. engineering design.
time; can adapt to changes in
environment.
Data Envelopment Capable of handling multiple inputs Does not deal with imprecise data; Economics, medicine, utilities, road safety,
Analysis (DEA) and outputs; efficiency can be assumes that all input and output are agriculture, retail, and business problems.
analyzed and quantified. exactly known.
Fuzzy Set Theory Allows for imprecise input; takes Difficult to develop; can require Engineering, economics, environmental,
into account insufficient numerous simulations before use. social, medical, and management.
information.
Simple Multi- Simple; allows for any type of Procedure may not be convenient Environmental, construction, transportation
Attribute Rating weight assignment technique; less considering the framework. and logistics, military, manufacturing and
Technique effort by decision makers. assembly problems.
(SMART)
Adapted from Velasquez and Hester (2013)
41
Identify the appropriate technique (2/2)
Method Advantages Disadvantages Areas of Application
Goal Capable of handling large-scale It’s ability to weight coefficients; typically Production planning, scheduling, health
Programming problems; can produce infinite needs to be used in combination with care, portfolio selection, distribution
(GP) alternatives. other MCDM methods to weight systems, energy planning, water reservoir
coefficients. management, scheduling, wildlife
management.
ELECTRE Takes uncertainty and vagueness Its process and outcome can be difficult Energy, economics, environmental, water
into account. to explain in layman’s terms; outranking management, and transportation problems.
causes the strengths and weaknesses of
the alternatives to not be directly
identified.
PROMETHEE Easy to use; does not require Does not provide a clear method by Environmental, hydrology, water
assumption that criteria are which to assign weights. management, business and finance,
proportionate. chemistry, logistics and transportation,
manufacturing and assembly, energy,
agriculture.
Simple Additive Ability to compensate among Estimates revealed do not always reflect Water management, business, and financial
Weighting (SAW) criteria; intuitive to decision makers; the real situation; result obtained may not management.
calculation is simple does not be logical.
require complex computer
programs.
Technique for Has a simple process; easy to use Its use of Euclidean Distance does not Supply chain management and logistics,
Order Preferences and program; the number of steps consider the correlation of attributes; engineering, manufacturing systems,
by Similarity to remains the same regardless of the difficult to weight and keep consistency business and marketing, environmental,
Ideal Solutions number of attributes. of judgment. human resources, and water resources
(TOPSIS) management.
42
Cynefin domains
Complex Complicated
Disorder
Chaotic Simple
43
Outline
Introduction
Systems Errors
The Systems Age
Current State in Systems Engineering
Systemic Thinking
Decision Analysis
A Way Ahead
44
A way ahead
45
Contact information
Patrick Hester
Old Dominion University
Department of Engineering Management and
Systems Engineering
Office: (757) 683-5205
Email: pthester@odu.edu
46
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