Assessing the Controllability of a Production and Raw Materials System

Some of the problems of amplification which are commonly found in comparatively simple production systems are described. A simulation model of such a system is formulated, first as a diagram and then as equations, making the point that the diagram can be constructed by means of a formal procedure based on the recognition of different kinds of mechanisms and processes in an industrial system. The question of policy redesign is addressed by considering the structural characteristics of the system, and it is argued that simulation can become much more effective if it is guided by some simple rules of thumb from control engineering. It is shown that to introduce a complex and costly management information system may be unnecessary. Alternative managerial attitudes such as an orientation towards production rather than marketing are examined and are shown to lead to surprising results. Finally, the quality and timeliness of information flows in the system is tested.