The System Approach: Understanding Systems Thinking

The System Approach
Dr. K. (Subbu) Subramanian

STIMS Institute (Science Based Technology Innovation and Management Solutions) 1
SubbuKDG@gmail.com
What is a “System”?
A system is a collection of parts, which interact with
each other to function as a whole. --- Draper Kauffman, “Systems Thinking”
A system is a perceived whole,

whose elements “hang together” because they continually
affect each other over time and operate toward a common purpose.
--- Peter Senge, “Fifth Discipline”
A system is a network of interdependent components

that work together to try to accomplish the aim of the
system. A system must have an aim (goal). Without aim there is no system. ---
W. Edwards Deming, “The New Economics”
INPUT OUTPUT
TRANSFORMATION
System: Input/Transformation/output scheme
SubbuKDG@gmail.com
What is a Solution?
“input/transformation/output” system leading
to added value to those who are willing to
pay for such value addition! INPUT OUTPUT
What is the Need ?

 Create and implement New Solutions TRANSFORMATION
 Replicate known solutions in larger

quantities
Now we know
Perceived Needs: the why and
More Innovation what?
More Entrepreneurship
Work Smarter and Work Harder
But HOW?
Keep Jumping From Job to Job
Become Global
Become Transformational
Get Higher College Degrees
Get More Skills
Interdisciplinary
What is a Solution? What is the Need?

STIMS Institute (Science Based Technology Innovation and Management Solutions)
SubbuKDG@gmail.com
What is a Solution?
Solution:
“input/transformation/output” System,
leading to added value with reward for such value addition!
INPUT OUTPUT
TRANSFORMATION = KNOWLEDGE
Solution: KNOWLEDGE and its USE!

SYSTEM THINKING.
SubbuKDG@gmail.com
Manufacturing: A collection of
Physical Processes and Service Processes.
Input Transformation Output
??? Physical
Processes Product
Service Processes
Service Processes: Anything to do with Information and logistics

That collect process, analyze and disseminate
information and decision making
Physical Processes: Where physical change happens on the work material
(e.g.): Cutting, grinding, EDM, ECM, Welding, Forming, Forging, …..

SubbuKDG@gmail.com
Physical and Service Processes
- Features
Process Category Description Characteristic Features
• Physical sciences intensive

Domain specific activities; • Physical goods and inventory
directly impacted by • Relatively low end-user contact
Physical Processes technical professionals and • Capital/investment intensive
their academic/sector specific • Long development and
skills implementation cycle
• IT applications intensive
Domain neutral • Information and database
Information and logistics • Active end user contact
Service Processes activities; impacted by • Network and connectivity
IT applications solutions • Relatively short development
and shorter implementation cycle

SubbuKDG@gmail.com
Quantum Improvement in Service Processes
are Already Taking Place
Traditional vs. World Class
Today ? World Class
Traditional
(10 tears ago)
Set-up Time < 10 minutes 2- 4 hours
Down to 1 minute 20 - 30 minutes
Quality 1,500 ppm, 0.15% 3 - 5% inside the Co.-
300 ppm, 0.3% 2 - 5% warranty cost
15 - 25% of sales
(true cost of quality)
Plant or Space Utilization > 50% 25 - 30%
Work as a Function of Touch Time

25 - 30% 2 - 4%
Value added Time/Total Time
Material Velocity (Turns) > 100 (3 days) 2 - 4 (3 months)
Flexibility Number of SKUs 270 parts/machine 25 parts/machine tool

tool
Manufactured/Setup
Distance a Part Travel through the Plant 300 feet > 1 mile (up to 2 or 3
miles)
(From Receiving to Shipping Deck)
Reliability of the System or Equipment 90 - 95% 65 - 75%
Tools: Lean, Six Sigma, ERP, BPOs, Outsourcing, ………

SubbuKDG@gmail.com
Manufacturing Processes
What is the Need?
95
100
75
Total Cost
(Per Unit of
Value or Benefit)
Present Requirement to Meet

Situation Global Competitive Need:
• New Materials
• New Applications
• New Processes
Incremental Improvement “Better Mouse Trap”
is not enough
Quantum (Large Scale) Improvement “Different Mouse Trap”
is the real need

SubbuKDG@gmail.com
Service
Physical Processes
Processes Known Information (IT)
Transformation
-- Process
Solution Logistics (LT)
-- USE
Generic or
Unique or Industry/Sector
Industry/Sector Neutral
Specific
Model for end of 20th Century manufacturing

SubbuKDG@gmail.com
Physical
Service Processes
Transformation
Processes -- Product
New -- Process
Information (IT) -- USE
Solution Logistics (LT)
Unique or
Generic or
Industry/Sector
Industry/Sector
Specific
Neutral
Model for Advanced Manufacturing

for the 21st Century.

SubbuKDG@gmail.com
System Thinking
Manufacturing Process
- It is not a “Black Box”
Input
Transformation
Output

SubbuKDG@gmail.com
System Thinking
- It is not just a Statistical Process
Machine Tool
Work Material
Input Processing Tool
Operational Factors
Process Measures Statistical

Transformation or Process
Macroscopic Variables Control
Output Technical/Economic Out put

SubbuKDG@gmail.com
The “System Approach”
Machine Consumables
Tools /
Tool Software
Technical System
Microscopic Output Output
Interactions What is the Why are we
process interested in
Work/ Process producing? the process?
Parameters/
Component
Constraints
Process
Economics
Measurement
during the
process
Measurement
and Analysis
Diagnostic
Tools &
Methods

SubbuKDG@gmail.com
Manufacturing Process: It is a “System”
Input Transformation Output
Work / Microscopic Interactions
Components
Technical Output
Mechanical Electrical
Tools/
Consumables
Thermal Chemical
Economic/
System Output
Macroscopic Variables/Measures

SubbuKDG@gmail.com
Why do we need The System Approach ?
Consumables
Machine Tools /
Tool Software Technical System
Work/ Process
producing? the process?
Component Parameters/
Constraints
Process
Jigsaw puzzle Measurement
Economics
during the
process
Measurement
and Analysis
Diagnostic
Tools &
Methods
Process Solution is a puzzle and requires Use the System Approach

either...
• Every person has the same information
> One person with many years of experience • Everyone’s knowledge is integrated into
with many companies, products and
applications. a common framework
There are few people like this. • Awareness: Fill all the boxes as much as
> Or, many people, each with a little we can. Then ask questions where the
knowledge, to fit together and solve the box is empty
“puzzle” – the problem. This is very • Analysis: Which question to be asked
difficult and inefficient. and in what order?
>STIMS
So what do we
Institute do? Based Technology Innovation and Management Solutions)
(Science 15
SubbuKDG@gmail.com
The System Approach: Integrating the Knowledge End User
of every one involved in the Process
(e.g): Grinding Process
Industry:
-- Transportation/Energy/
Supplier – Application/USE
Housing/High tech./DYI/ ….
Transformation Use:
Tools/ --- Raw Materials/ S.F. Goods/
Consumables Components/Sub Assembly/
Assembly/Repair/ Maintenance
Geography
Process Application:
--- Rough/Precision/U. Precision
Raw Materials Grinding - Process Product
Metal
Machine Tool Materials / Parts --- Ferrous/Non Ferrous/Alloys
Non – Metals
--- Ceramics/Glass/Carbides
--- Wood/Concrete/Minerals
Dr. K. (Subbu) Subramanian --- Composites/Crystals
SubbuKDG@gmail.com
Sources of “Knowledge”
20st Century End of 20th
Paradigm: Century
Skills
for
Transformation Academic
(Recognized Education
by chance)
Industry/ Sector Industry/ Sector

Specific Specific
Knowledge Knowledge
Transformational Skills
Academic Education (to Identify, Create and
(Primary Source of Knowledge) Implement “New” Solutions).
20th Century Paradigm End of 20th Century
Sources of Knowledge and their order – 20th Century

SubbuKDG@gmail.com
Ordering of “Knowledge” required
for success in the 21st Century
Skills for
Transformation
Industry / Sector
Specific Knowledge
Academic
Education
• Building blocks to be used in an inter-dependent manner;

• Knowledge Integration in all three building blocks as needed.
• Use resources available from any where
• Generate impact across the globe.

SubbuKDG@gmail.com
Transformational Skills for 21st century Technical Professionals.
Emotional Intelligence
Deploy for “New Solutions”.
End to End Innovation
Build Eco-system for

Core technology Platforms
Develop Emphasis on Science

and “Mobile Diagnostics”
System Approach
(Knowledge Integration)
3 D View of
Core Capabilities
Discover Develop
Common
Language

SubbuKDG@gmail.com
Transformational Skills required
for success in the 21st Century
• Identify “New” Solutions :

• Develop a “Common Language”
• 3D View of Core Capabilities
• Develop “New “ Solutions - Knowledge Integration:
• The System Approach
– relentlessly ask the question “Why?” and also find the answers.
(the next wave after Lean and Six Sigma)
• Scientific reasoning and use of Mobile Diagnostic Tools
• Integration of knowledge from all sources from across the globe
• Implement “New Solutions”:

• Innovation Culture : End to End Innovation
• Emotional Intelligence of Leadership, Innovation and Entrepreneurship.

SubbuKDG@gmail.com
Solution: with a nucleus composed of “Physical Processes”
integrally linked with a collection of service processes
Service
Processes
Physical
Physical
Physical
Processes
Processes
Processes
Product Product Product
Process
Professional Company
Department/Function
SubbuKDG@gmail.com
The System Approach:
Alignment of core capabilities at each level.
Digital Finance/Mkt.
Technology Drivers
Engineering
Technology
Physical
Management
Breadth or Scope
“Zoom out”
Science
Experience
Service
Uniqueness
“Zoom in”
Knowledge
Depth or
Professional Process Solution Industry Sector

/ Company
SubbuKDG@gmail.com
Why not ?
(Synthesis)
Depth / Unique
Breadth or Scope
How and Why?
(Analysis)
What?
(Awareness)
Three levels of System Skills.
SubbuKDG@gmail.com
23
Traditional:
Cause Fish Bone Diagram
Effect
Need
Investment
Technical System
Output Output
Transformation Value or
Expenses Effect
(Physics) Benefit
Constraints
Science
Engineering
Strategy
The System Approach
SubbuKDG@gmail.com
The System Approach: There are four input categories
leading to the transformation and the outputs.
Capital,
Equipment /
Product /
Fixed Assets Unmet need
INPUT OUTPUT
Transformation Product
$$$$$$
Expenses /
Resources/ Constraints Value or Benefits
V. Cost
Sales, Profits, Business Performance

SubbuKDG@gmail.com
Technology = Knowledge and its Integration !
= “Science” + “Engineering” + “Management” (Operations + Strategy)
Consumables
Engineering Management
Machine
Tool
Tools / Technical System
Software
What is the Why are we
Process Interactions process interested in
Work/
Parameters/ producing? the process?
Component Constraints
Science
Process
Measurement Economics
Measurement
and Analysis
Diagnostic
Tools &
Methods

SubbuKDG@gmail.com
Solution
Technology
Technology: integration of Engineering

Science, Engineering and Management,
leading to new solution.

SubbuKDG@gmail.com
Science: Understanding the “Transformation”
•What really happens during the “Process”?
•Microscopic Interactions:
• The represent the “Physical Science”
• They can not be “seen”
• They can be measured, analyzed and inferred
SubbuKDG@gmail.com
Engineering: Application of the “Transformation”

SubbuKDG@gmail.com
What is “management” ?
Strategy
PLAN
What ? ORGANIZE
Why ? COORDINATE
CONTROL
Management
PLAN
ORGANIZE How ?
COORDINATE When ?
CONTROL
Operations
SubbuKDG@gmail.com
Your Education:
The system Approach for Grinding Processes;
Can be used in every aspect of the job in the company
Technology Technology
Application
/ USE
Technology
Product
Technology
SubbuKDG@gmail.com
1. Establish the System
Management Outputs: Why?
(Strategy) Identify the stakeholders, their
benefits, and priorities
+ 6. Document the New 2. Document the process as

Management Solution (How?) With Input/Transformation/
improvements in the technical
(Operations) and system outputs Output System: What?
and
Engineering 5. Implement the changes 3. Establish the Technical
(How?) Simultaneously Outputs: What do we want
needed in all four input groups
from the process?
+ to influence the transformation
Science 4. Diagnose and Interpret:

Obtain the “vital signs”; what do
they infer about the transformation
The System Approach (core capabilities): Why?
- Implementation Methodology
SubbuKDG@gmail.com
Five Steps in the Scientific Approach to Problem Solving:
—Diagnostics
—Problem Solving Equipment Component
—Process Improvement PROCESS
Transformation
Technical
Output
System
Output
-—Process Maintenance Tooling Operational
Parameters
—New Solution or Step Change
In-Process
Measurement
Process
Output Monitoring
>160% Diagnostic
Tools
Process Improvement
New Solution
120%
Base Line
100%
Problem resolution
80%
Why ???
Diagnostics
Progressive Impact of “Science”

Backed Up by Diagnostic Tools
SubbuKDG@gmail.com
Knowledge Integration (1) :
Sharing the power to gain new Knowledge.
You can’t get something for “nothing”!
$ $$$$$$$
Investment Consumables
Tools /
Machine /
Platform Software Technical System
Transformation Output Output
What is the Why are we
Need / process interested in
Process
producing? the process?
Application/ Parameters/
Component Constraints
Portable Diagnostic
Tools, Methods and
data analysis
Share Holders
Stake holders Benefits
(KNOWLEDGE) (POWER)
Dr. K. (Subbu) Subramanian 34

SubbuKDG@gmail.com
Knowledge Integration (2) :
Using the power together with new Knowledge.
• Higher Productivity
• Better Quality
(System Thinking) • New Solutions
• New Products
• New Markets
Knowledge
• Sales Increase
• Profit Growth
Power (Resources)
SubbuKDG@gmail.com
The System Approach – Summary
• Every process represents a Input/ Transformation /Output system.
• We need to define the “context” of the system to further develop solutions
based on that.
• The outputs of any system can be identified in two Categories:

• Technical Output: “What” is the Solution? What are the deliverables?
• System Output: “Why” are we interested in the solution?
Why these deliverables?
• The inputs to the system can be grouped under four distinct categories:
• Machine Tool, Abrasives, coolants and other consumables,
Work Material or components to be finished and Operational parameters
• All inputs to the system are channeled through these four input categories
• All those who contribute to the inputs:
• Also seek/gain their benefits through the “system outputs”!
• They are also the sources of knowledge pertaining to the system.
• Weakness in knowledge or contribution in any of these four input categories
ultimately affects the system / solution outputs.
• The system is configured or designed to transform/modify or change the input into
the outputs, to achieve the finished parts of required quality, productivity, cost and
performance.
SubbuKDG@gmail.com
Transformation or Microscopic Interactions
• Is not a black box or “statistical”
• It is the effect or interactions, which occur when the inputs are brought together.
• Represents the “Phenomena” of nature, which are “subtle” and intangible
• BUT, they can be inferred through:
• Changes in inputs and their effect
• Changes in outputs
• Measurements or data obtained in real time (when the transformation happens)
• Interpretation of the real time signals and inferences based on them
• They are useful to understand the effect of changes in inputs and their
result as seen in the outputs in a deterministic manner . This knowledge
on the cause and effect as influenced by the transformation is called “Science”.
• Application of the Transformation or microscopic interactions through proper integration
of the relevant inputs across the four input categories to obtain the required technical
outputs is called “Engineering”.
• Establishing which transformation to use and why (Strategy) and how to execute that
efficiently, economically and in a timely manner (Operations) is called “Management”.
• The System Approach is a frame work or methodology to integrate the Science,

Engineering and Management aspects of any Input/Transformation/Output system.
• Hence the System Approach enables the engineer to span wide (zoom out) to address
the engineering and management aspects and also dive deep (zoom in) on the scientific
aspects of the problem or solution as required.
SubbuKDG@gmail.com
• When all input groups are changed simultaneously for the same effect on the
“transformation,” – the science - the output is always “quantum” or large scale in
nature, (i.e.), the whole is larger than the mere sum of its parts.
• When the input groups are changed or altered individually (one at a time and over
a period of time), even for the same effect on the transformation, the output is
generally incremental in nature.
• In this case, the conflicting effects of the input groups and their variability
over time, sometimes cancel each other, resulting in minimal net gain.
• This is the serious underlying risk in all our efforts toward continuous
improvement.
• Signals pertaining to the “Transformation” represent the vital signs of the system /
process or the solution. They are collected as in-process data. Digital Tools are
very useful to collect and process such in-process data.
• Power of Digital data: Mine, Model, Experiment, Decide, Predict
• Data and analysis of signals pertaining to the Transformation can be used for:
— Diagnostics
— Problem Solving
— Process Improvement
-— Process Maintenance
— New Solution or Step Change
SubbuKDG@gmail.com
Data and analysis of signals pertaining to the Transformation
can be used for:
• Collect and compare base line information
Feature recognition
• Resolve Process problems.
• Estimation of the capability of the equipment and other
inputs to the system:
Stiffness, Accuracy, Precision, Process capability,…
• Analysis / Performance comparison:

Over time
Across machines or across systems.
Across plants or locations
Analytics
Data Science
• Development of New Products (R&D)

• Implementing “New “ Products and Processes
• Complaint Investigations
Reduce learning time
Reduce credits or warranty costs
Reduce set up and debugging efforts.

SubbuKDG@gmail.com
The “System Approach”
Machine Consumables
Tools /
Tool Software
Technical System
Work/ Process producing? the process?
Parameters/
Component
Constraints
Process
Economics
Measurement
during the
process
Measurement
and Analysis
Diagnostic
Tools &
Methods

SubbuKDG@gmail.com
Thank You!

SubbuKDG@gmail.com

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The System Approach

Dr. K. (Subbu) Subramanian

A system is a perceived whole,

A system is a network of interdependent components

What is the Need ?

 Replicate known solutions in larger

What is a Solution? What is the Need?

Solution: KNOWLEDGE and its USE!

Service Processes: Anything to do with Information and logistics

Dr. K. (Subbu) Subramanian

Process Category Description Characteristic Features

• Physical sciences intensive

Dr. K. (Subbu) Subramanian

Work as a Function of Touch Time

Flexibility Number of SKUs 270 parts/machine 25 parts/machine tool

Tools: Lean, Six Sigma, ERP, BPOs, Outsourcing, ………

Present Requirement to Meet

Dr. K. (Subbu) Subramanian

Model for end of 20th Century manufacturing

Model for Advanced Manufacturing

Dr. K. (Subbu) Subramanian

Dr. K. (Subbu) Subramanian

Process Measures Statistical

Output Technical/Economic Out put

Dr. K. (Subbu) Subramanian

Dr. K. (Subbu) Subramanian

Process Solution is a puzzle and requires Use the System Approach

Raw Materials Grinding - Process Product

Industry/ Sector Industry/ Sector

20th Century Paradigm End of 20th Century

Sources of Knowledge and their order – 20th Century

• Building blocks to be used in an inter-dependent manner;

Dr. K. (Subbu) Subramanian

End to End Innovation

Build Eco-system for

Develop Emphasis on Science

Dr. K. (Subbu) Subramanian

• Identify “New” Solutions :

• Implement “New Solutions”:

Dr. K. (Subbu) Subramanian

Product Product Product

Professional Process Solution Industry Sector

Dr. K. (Subbu) Subramanian

Dr. K. (Subbu) Subramanian

Technology: integration of Engineering

Dr. K. (Subbu) Subramanian

Dr. K. (Subbu) Subramanian

+ 6. Document the New 2. Document the process as

Science 4. Diagnose and Interpret:

Progressive Impact of “Science”

Dr. K. (Subbu) Subramanian 34

• The outputs of any system can be identified in two Categories:

• The System Approach is a frame work or methodology to integrate the Science,

• Analysis / Performance comparison:

• Development of New Products (R&D)

Dr. K. (Subbu) Subramanian

Dr. K. (Subbu) Subramanian

Dr. K. (Subbu) Subramanian

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