The system dynamics model for engineering services Available to Purchase

Service industry is recognized as being an important industry in Hong Kong and continues to support manufacturing bases in China and other low cost manufacturing countries. However, there is a lack of research on the modelling and analysis of service industry appropriate to Hong Kong’s environment. In this paper, the workflow of a service support department is illustrated using system dynamics modelling approach. The fundamental purpose of system dynamics (SD) is to analyze the information‐feedback of system behaviour as well as to develop mathematical models of dynamic interrelationships. A computer simulation system is used to explore the interactions making experimental system design possible. A model is proposed to simulate the behaviour of this department and to increase the efficiency. The analysis indicates that in order to decrease the turnover time of providing engineering service, it is necessary to make a strategic change to develop new culture and operation structure. The experience demonstrates that system dynamics is a practical approach to identify the relationship between the different service processes and improve the operation efficiency.