Papers Data-driven Design
Approaches
MSc Supply Chain Management, Tilburg University
Educational year: 2023-2024
Table of Contents
(1993) Akkermans – Participative business modeling for strategic
operations management...........................................................2
(2001) Sterman – System Dynamics Modeling tools for learning in
a complex world.......................................................................5
(2010) Sterman – Business dynamics chapter 5...........................6
(1992) Kim – System Archetypes 1...........................................13
(2014) Akkermans – Supply Chain Dynamics chapter 2 –
Introducing the language of system dynamics..........................18
(2003) Bezemer – Not with a bang, but with a whimper ............20
(2010) Sterman – Business dynamics chapter 21 – Truth and
beauty, validation and model testing.......................................21
(2018) Walrave – Why, when and how to combine system
dynamics with other methods towards an evidence based
framework.............................................................................. 25
(2023) Van Oorschot – Organizing the permanent Beta..............26
(2002) Repenning, Stermann – Capability traps in the dynamic
process improvement..............................................................28
(2002) Akkermans & van Helden – CSFs for ERP........................30
(2024) Fang et al., - Down the drain.........................................32
(2014) Akkermans – Supply chain dynamics chapter 4 – The curse
of cyclicality...........................................................................34
(2014) Akkermans – Sypply chain dynamics chapter 9 – The
service quality cascade: Managing ramp-ups in service supply
chains....................................................................................38
(1999) Meadows – Leverage points to intervene in a system......41
,(1993) Akkermans – Participative business
modeling for strategic operations
management
(1993) Akkermans - Participative Business modeling for Strategic Operations Management
Introduction:
Reasons of why simulation modelling should be a standard element of any strategic decision-making
activity:
1. Excellence in operations and logistics performance has become os such crucial importance for
business success that a thorough analysis of any strategic operations issue nowadays seems esssntial
2. Operations issues tend to be very complex and demanding from a technical point of view.
Complexity is such that formal models are required to analyse effectively the effects of any decision
in strategic operations issues.
3. There is a wide array of mathematical models developed within the fiels of operations
research/management science precisely for operations issues.
--> in reality in the majority of strategic operations decisions the use of modelling and simulation is
absent and for the remainder its use is rather limited.
(in reality, use of modelling and simulation is absent)
Research setting:
The LogSim research project focuses on developing a consultancy method called Participative
Business Modelling (PBM) to support strategic decision-making in operations. The project consists of
two parts: 1) the initial development of the consultancy method based on literature reviews, 2)
testing and refining the method through case studies conducted by the author.
After each case study, "boil down sessions" are held to extract general insights for method
refinement.
The Client Company:
The client company involved in the project is a time-critical business acquired by a major magazine
publisher and distributor in Holland, specializing in importing and distributing foreign newspapers
throughout the country.
The client company was facing challenges in its internal distribution process, which was scheduled to
move to a new building. They had implemented strategic decisions to improve delivery speed by
setting up a new distribution facility with a new crew, combining personnel from different
distribution companies.
,The problem:
Implementation Challenges: The client company faced difficulties in smoothly implementing
measures to improve delivery speed due to a tight schedule and crew inexperience, leading to
increased costs.
Financial Losses: Despite efforts to enhance the distribution system, the company continued to incur
losses with no visible increase in sales, prompting the need for a simulation project to address
ongoing financial challenges.
The Modelling/Consultancy Approach
Project Scope: The simulation project focused on the internal distribution process of the client
company due to an upcoming relocation and its complexity.
Project Set-up: An informal project team was formed, including the internal operations manager, an
external consultant, and regular involvement of the client company in the model building exercise.
Project Phasing: The project involved a quick scan, problem definition, qualitative model
development, and facilitation by the external consultant, leading to the translation of the conceptual
model into a computer model.
Project Findings
Model overview: The model developed for the project is simple and straightforward, focusing on the
production process with minimal feedback and co-flows. It involves a sequence of production phases
closely related to the distribution process, with newspapers arriving nightly and being sorted to
specific outlets. The model consists of a basic flow process for newspaper production. Newspapers
arrive nightly and are presorted to various sorting stations. Once outlets receive all newspapers, they
are considered "complete" and sorted for sealing and further distribution.
Arrival patterns: Attention was initially given to late-night newspaper arrivals, crucial for completing
sorting and packaging processes. An unexpected "early dip" in arrivals between half past twelve and
half past one highlighted opportunities for reducing working hours during low workload periods.
Late-night newspaper arrivals impacted sorting and packaging completion. Identification of an "early
dip" in arrivals led to potential cost reductions by adjusting workforce hours. Management focus
shifted towards optimizing workload distribution based on arrival patterns.
Sorting Methods: The project aimed to evaluate the most effective sorting method under different
conditions. Each method had its advocates and opponents within the client organization, with
qualitative arguments aligning with quantitative analysis to determine key performance factors.
, Evaluation of sorting methods under varying conditions. Qualitative and quantitative analysis
revealed decisive performance factors. Implementation of the best-performing sorting method
based on simulation results.
The Packaging Bottleneck: The simulation project identified and addressed bottlenecks in the
internal distribution process, particularly in sorting and packaging. A "touring car problem" analogy
highlighted inefficiencies in packaging processes, leading to solutions for optimizing package sealing
and eliminating bottlenecks. Sequential bottlenecks in sorting and packaging processes were
identified. Inefficiencies in package sealing due to delayed arrivals were addressed. Implementation
of a new sorting system aimed to eliminate the packaging bottleneck and improve overall efficiency
Workforce Reductions: The highest cost factor in the department was labour. The proposed sorting
method reduced the workforce, and the labour costs, by 25%.
Business Results:
Technical Results: The project involved the design and transfer to a new layout, which was
successfully accomplished without any unexpected issues. Implementation of a new sorting method
that required a significant investment but was deemed necessary for improved efficiency. The new
sorting system eliminated the packaging bottleneck, allowing for immediate sealing of packages and
reducing the need for a recently acquired sealing machine.
Organizational Results: The project led to a strong belief in the findings and commitment to their
implementation, reducing time spent on discussing alternatives. Management appreciated the
problem-solving approach and the increased status of the operations manager and his team. There
was a higher quality of systems thinking among team members, leading to improved reasoning and
broader perspectives in problem-solving discussions.
Discussion:
After each case study "boil-down" sessions are held. Discussing 3 questions with the aim of gaining
more insights. 1. How well did the consultancy/modelling method work in this case? 2. What needs
to be improved in the method and how? 3. What other insights gained may be of interest?
-->
Operations Strategy Insight: The client company's survival was directly tied to the delivery speed of
newspapers to outlets, a critical "order winning criterion." The operations strategy process was
unique, focusing on setting a clear goal first and then realigning efforts towards its achievement,
resulting in improved performance over time.
Consultancy Insights: The modelling and consultancy approach were intertwined, combining a
system dynamics modelling tradition with consultancy techniques like brainstorming and causal
diagramming. The project approach involved a straightforward modelling approach and a standard
consultancy approach for operations issues simultaneously.
Modelling Insights: The Participative Business Modelling (PBM) approach was seen as both sound
modelling in the system dynamics tradition and a consultancy approach for operations issues. The
model development process involved phases like data collection, analysis, formulation of a
quantitative model, and conducting experiments, with a switch from a facilitator role to an expert
role by the external consultant.
Approaches
MSc Supply Chain Management, Tilburg University
Educational year: 2023-2024
Table of Contents
(1993) Akkermans – Participative business modeling for strategic
operations management...........................................................2
(2001) Sterman – System Dynamics Modeling tools for learning in
a complex world.......................................................................5
(2010) Sterman – Business dynamics chapter 5...........................6
(1992) Kim – System Archetypes 1...........................................13
(2014) Akkermans – Supply Chain Dynamics chapter 2 –
Introducing the language of system dynamics..........................18
(2003) Bezemer – Not with a bang, but with a whimper ............20
(2010) Sterman – Business dynamics chapter 21 – Truth and
beauty, validation and model testing.......................................21
(2018) Walrave – Why, when and how to combine system
dynamics with other methods towards an evidence based
framework.............................................................................. 25
(2023) Van Oorschot – Organizing the permanent Beta..............26
(2002) Repenning, Stermann – Capability traps in the dynamic
process improvement..............................................................28
(2002) Akkermans & van Helden – CSFs for ERP........................30
(2024) Fang et al., - Down the drain.........................................32
(2014) Akkermans – Supply chain dynamics chapter 4 – The curse
of cyclicality...........................................................................34
(2014) Akkermans – Sypply chain dynamics chapter 9 – The
service quality cascade: Managing ramp-ups in service supply
chains....................................................................................38
(1999) Meadows – Leverage points to intervene in a system......41
,(1993) Akkermans – Participative business
modeling for strategic operations
management
(1993) Akkermans - Participative Business modeling for Strategic Operations Management
Introduction:
Reasons of why simulation modelling should be a standard element of any strategic decision-making
activity:
1. Excellence in operations and logistics performance has become os such crucial importance for
business success that a thorough analysis of any strategic operations issue nowadays seems esssntial
2. Operations issues tend to be very complex and demanding from a technical point of view.
Complexity is such that formal models are required to analyse effectively the effects of any decision
in strategic operations issues.
3. There is a wide array of mathematical models developed within the fiels of operations
research/management science precisely for operations issues.
--> in reality in the majority of strategic operations decisions the use of modelling and simulation is
absent and for the remainder its use is rather limited.
(in reality, use of modelling and simulation is absent)
Research setting:
The LogSim research project focuses on developing a consultancy method called Participative
Business Modelling (PBM) to support strategic decision-making in operations. The project consists of
two parts: 1) the initial development of the consultancy method based on literature reviews, 2)
testing and refining the method through case studies conducted by the author.
After each case study, "boil down sessions" are held to extract general insights for method
refinement.
The Client Company:
The client company involved in the project is a time-critical business acquired by a major magazine
publisher and distributor in Holland, specializing in importing and distributing foreign newspapers
throughout the country.
The client company was facing challenges in its internal distribution process, which was scheduled to
move to a new building. They had implemented strategic decisions to improve delivery speed by
setting up a new distribution facility with a new crew, combining personnel from different
distribution companies.
,The problem:
Implementation Challenges: The client company faced difficulties in smoothly implementing
measures to improve delivery speed due to a tight schedule and crew inexperience, leading to
increased costs.
Financial Losses: Despite efforts to enhance the distribution system, the company continued to incur
losses with no visible increase in sales, prompting the need for a simulation project to address
ongoing financial challenges.
The Modelling/Consultancy Approach
Project Scope: The simulation project focused on the internal distribution process of the client
company due to an upcoming relocation and its complexity.
Project Set-up: An informal project team was formed, including the internal operations manager, an
external consultant, and regular involvement of the client company in the model building exercise.
Project Phasing: The project involved a quick scan, problem definition, qualitative model
development, and facilitation by the external consultant, leading to the translation of the conceptual
model into a computer model.
Project Findings
Model overview: The model developed for the project is simple and straightforward, focusing on the
production process with minimal feedback and co-flows. It involves a sequence of production phases
closely related to the distribution process, with newspapers arriving nightly and being sorted to
specific outlets. The model consists of a basic flow process for newspaper production. Newspapers
arrive nightly and are presorted to various sorting stations. Once outlets receive all newspapers, they
are considered "complete" and sorted for sealing and further distribution.
Arrival patterns: Attention was initially given to late-night newspaper arrivals, crucial for completing
sorting and packaging processes. An unexpected "early dip" in arrivals between half past twelve and
half past one highlighted opportunities for reducing working hours during low workload periods.
Late-night newspaper arrivals impacted sorting and packaging completion. Identification of an "early
dip" in arrivals led to potential cost reductions by adjusting workforce hours. Management focus
shifted towards optimizing workload distribution based on arrival patterns.
Sorting Methods: The project aimed to evaluate the most effective sorting method under different
conditions. Each method had its advocates and opponents within the client organization, with
qualitative arguments aligning with quantitative analysis to determine key performance factors.
, Evaluation of sorting methods under varying conditions. Qualitative and quantitative analysis
revealed decisive performance factors. Implementation of the best-performing sorting method
based on simulation results.
The Packaging Bottleneck: The simulation project identified and addressed bottlenecks in the
internal distribution process, particularly in sorting and packaging. A "touring car problem" analogy
highlighted inefficiencies in packaging processes, leading to solutions for optimizing package sealing
and eliminating bottlenecks. Sequential bottlenecks in sorting and packaging processes were
identified. Inefficiencies in package sealing due to delayed arrivals were addressed. Implementation
of a new sorting system aimed to eliminate the packaging bottleneck and improve overall efficiency
Workforce Reductions: The highest cost factor in the department was labour. The proposed sorting
method reduced the workforce, and the labour costs, by 25%.
Business Results:
Technical Results: The project involved the design and transfer to a new layout, which was
successfully accomplished without any unexpected issues. Implementation of a new sorting method
that required a significant investment but was deemed necessary for improved efficiency. The new
sorting system eliminated the packaging bottleneck, allowing for immediate sealing of packages and
reducing the need for a recently acquired sealing machine.
Organizational Results: The project led to a strong belief in the findings and commitment to their
implementation, reducing time spent on discussing alternatives. Management appreciated the
problem-solving approach and the increased status of the operations manager and his team. There
was a higher quality of systems thinking among team members, leading to improved reasoning and
broader perspectives in problem-solving discussions.
Discussion:
After each case study "boil-down" sessions are held. Discussing 3 questions with the aim of gaining
more insights. 1. How well did the consultancy/modelling method work in this case? 2. What needs
to be improved in the method and how? 3. What other insights gained may be of interest?
-->
Operations Strategy Insight: The client company's survival was directly tied to the delivery speed of
newspapers to outlets, a critical "order winning criterion." The operations strategy process was
unique, focusing on setting a clear goal first and then realigning efforts towards its achievement,
resulting in improved performance over time.
Consultancy Insights: The modelling and consultancy approach were intertwined, combining a
system dynamics modelling tradition with consultancy techniques like brainstorming and causal
diagramming. The project approach involved a straightforward modelling approach and a standard
consultancy approach for operations issues simultaneously.
Modelling Insights: The Participative Business Modelling (PBM) approach was seen as both sound
modelling in the system dynamics tradition and a consultancy approach for operations issues. The
model development process involved phases like data collection, analysis, formulation of a
quantitative model, and conducting experiments, with a switch from a facilitator role to an expert
role by the external consultant.
