The application of systems dynamics to the re‐engineering of value processes

Value processes are those high‐level processes which are critical to achieving an organization′s objectives. Describes the re‐engineering of a value process which was not working efficiently and causing serious problems to an important new business operation. Conventional process engineering tools were initially used and, after these had failed to deliver significant improvement, the problem was readdressed using systems dynamics and the i‐THINK modelling tool. Reports, in detail, the authors′ experiences of using systems dynamics together with the results achieved. Describes the models produced, as well as how systems dynamics forced the authors to explore the processes beyond the boundaries identified by the conventional approach. It was in these new areas that the key to the problem and its solution lay. The problem was a case of process invasion by the customer into the supplier′s value process, and the solution identified by simulating the i‐THINK model lay in obliteration of the elements of the process. Comments on the relative merits of systems dynamics with conventional process engineering, and describes plans to continue investigation into other areas of the value process.