linard_1999-quality assurance in system dynamics modeling

Upload: keith-linard

Post on 30-May-2018

227 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    1/16

    1

    Quality Assurance in System Dynamics Modelling

    Keith LinardSenior Lecturer, School of Civil Engineering

    University College UNSW (Australian defence Force Academy)

    Email: keithlinard#@#yahoo.co.uk(Remove hashes to email)

    SUMMARY

    This paper addresses the practical issue of achieving quality assurance in system dynamicsmodelling projects. It first provides a brief overview of system dynamics, then suggests criteria

    for determining contexts where system dynamics modelling solutions might be appropriate. The

    main focus of the paper is the development of a structured methodology for a system dynamics

    project. It summarises the key validation tests that should be undertaken in a typical project and

    outlines how a consultant (external or in-house) team might be constituted.

    IntroductionWhat is System Dynamics

    System dynamics as a management discipline developed in the 1950s with its origins in

    engineering control theory (servo-mechanisms and cybernetics), although underlying systems

    concepts have been applied rigorously for the past century across most disciplines.

    In a nutshell, System Dynamics is the rigorous study of organisational problems, from a holistic or

    systemic perspective, using the principles of feedback, dynamics and simulation.

    System Dynamics is a methodology for understanding complex problems where there is dynamic

    behaviour (quantities changing over time) and where feedback impacts significantly on system

    behaviour. It provides a framework and rules for qualitative description, exploration and analysisof systems in terms of their processes, information, boundaries and strategies, facilitating

    quantitative simulation modelling and analysis for the design of system structure and control.

    Computer simulation is central to the system dynamics discipline. Until 1987 the key software tool

    available (Dynamo, a Fortran like language) required skilled programmers and was difficult for line

    managers to use without significant support. This inhibited acceptance of the approach.

    Powerful graphics software is now available for Macintosh and PC, which allows the modeller to

    construct visual and symbolic representation of the system, facilitating both communication of

    findings to management and knowledge capture from subject area experts.

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    2/16

    Quality Assurance in System Dynamics Modelling

    2

    Figure 1: Logical Relationships Developed Graphically

    Obviously, models of complex problems require complex mathematics. Models of problems

    involving change over time and feedback require the solving of multiple differential equations.

    This new generation of graphically oriented software (e.g. the Powersim software used in these

    simulations) automatically generates the structure of the nth

    order differential equations necessary

    for solving complex feedback problems, cutting development time dramatically and reducing the

    likelihood of errors. Mathematical knowledge is still critical in fleshing out the interrelationships

    between parameters, and it is still possible to build erroneous equations.

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    3/16

    Quality Assurance in System Dynamics Modelling

    3

    Figure 2: Structure of Equations Automatically Generated from Logic Map

    System Behaviour

    The essence of systems thinking is that structure influences behaviour or, put another way, when

    placed in the same system, different people tend to produce similar results. Indeed, the fundamental

    assumption of the federal public service reforms of the 1980s, the Financial Management

    Improvement Program (FMIP), was predicated on the assumption that organisational breakdowns

    and sub-optimal behaviour do not occur because of management stupidity, but rather are products

    of the system. The FMIP reforms focused on modifying those aspects of the system, illustrated

    in Figure 3, which encouraged, rewarded or enforced sub-optimal behaviour.

    Figure 3: Systems in the public sector with potential to 'teach dysfunctional behaviour

    Some Terminology

    The fundamental concept in systems thinking is feedback. In systems thinking every influence is

    both cause and effect and the key to seeing reality systemically is to see circles of influence

    (dynamic thinking) instead of straight lines (linear thinking). By tracing these flows of influence

    we often see patterns which repeat themselves, making situations better or worse.

    Feedback Loops: The two main building blocks of all system representations are reinforcing andbalancing feedback loops. Reinforcing loops generate exponential growth (positive reinforcement)

    and collapse (negative reinforcement) and, as a result, are often represented in systems diagrams by

    the snowball effect. Balancing processes generate resistance, maintain stability and help achieve

    equilibrium. A reinforcing loop will always, sooner or later, come up against a limiting or

    balancing effect.

    Delays: A delay is an interruption between an action and its consequences. Delayed feedback is

    the key cause of the dynamic behaviour in systems.

    Leverage: Sometimes small, well focused actions can produce significant, enduring improvements

    - if they are carried out in the right place. This is referred to as leverage. The problem with

    leverage is that it is often difficult to find. This is because it is usually not close in space and timeto the symptoms of the problem. As a result, in order to find high-leverage changes it is necessary

    Legal, regulatory &budgetary environment

    Management systems &

    organisational architecture

    Perceived standards& practices ('culture')

    ACTIONS

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    4/16

    Quality Assurance in System Dynamics Modelling

    4

    to identify underlying structures in the system. Computer simulation is a key to identification of

    leverage points.

    As noted above, these concepts formed the foundation of the FMIP management reforms of the

    1980s. Figure 4 illustrates, using very simplified causal loop diagrams, the rationale for moving to

    user pays for inter-departmental services.

    Figure 4: Causal Loop Diagram of 'User Pays' Dynamics

    The left hand loop depicts the generic situation then extant across the public service in relation both

    to the internal provision of free management services, such as typing, statistical services etc, and

    to inter-departmental free services such as commonwealth cars, Foreign Affairs international

    communication system, building services etc. The left-hand loop shows self-reinforcing behaviourin relation to these free services. Being free, more of the service is demanded than is really

    warranted. This leads to congestion, creating an argument on the part of the supply organisation for

    more resources. The increase in resources leads to temporary over capacity, so the agency markets

    its improved level of service, leading to increased demand . . . and so on. A second dimension to

    this loop, not shown, is that the service provider, being in a monopoly position, could largely

    dictate the level and quality of service given.

    An understanding of the feedback interrelationships pointed to possible leverage points. First,

    sheeting home to the consumer the fact that services cost would (arguably) lead to better

    assessment of the quantum of such services really required. Secondly, allowing the recipient to

    retain the revenue from user charges would permit more appropriate determination of investment

    priorities.

    The user pays solution, right hand loop, introduced price as the lever which leads to two balancing

    loops.

    Contexts Where System Dynamics Modelling Solutions Might Be Appropriate

    System dynamic is not appropriate to every problem context. System dynamics may be appropriate

    if the problem has the following broad characteristics:

    1. The issue is important to organisational objectives.

    2. The problem is of an on-going nature rather than a one-time event.

    3. The problem has a known history which can be described, both qualitatively and quantitatively.

    SurplusCapacity

    Demand

    Price

    CashreservesMaintenance &

    expansion capacityDemand

    'Congestion'

    Pressure forBudget $

    DELAY

    Marketing ofsurplus capacity"free" of charge

    $ forAdditionalcapacity

    o

    o

    os

    s

    s

    s

    s

    s

    s

    "User pays" gives genuine marketsignals for demand and provides

    reserves for expansion

    s

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    5/16

    Quality Assurance in System Dynamics Modelling

    5

    4. The problem exhibits time dynamics (e.g., time delay between some external trigger and theimpact on system demand, between changes in demand patterns and policy response or between

    policy response and policy impact.)

    5. Previous attempts have been made to address this problem, but results have been less effective

    than desired.

    But Why System Dynamics - What About Other Approaches

    In some quarters there has been a tendency to set system dynamics modelling in opposition to other

    forms of modelling (e.g., econometric modelling). This is a fruitless exercise.

    What is important is that the appropriate paradigm, whether it be econometrics, operations research

    or system dynamics, is used for a given problem. System dynamics can be misused as easily as

    econometrics or any other modelling approach.

    The circumstances where system dynamics may be appropriate were noted above. Using it outside

    these criteria may be a costly mistake. On the other hand, many dynamic problem situations will

    call for a combination of paradigms or time series analysis might be used to identify mathematicalrelationships between some parameters, whilst system dynamics modelling might be implemented

    simply for the critical feedback relationships.

    In respect of preparedness modelling, the lack of convincing progress by other methodologies, the

    fact that all the criteria for use of system dynamics are met and the evidence of the prototypes

    developed at ADFA provides a sound case for its application. A further important reason for the

    use of the system dynamics modelling tools is their value in communication with stakeholders. In a

    complex area such as this, user confidence is critical.

    The work at ADFA, however, combines where appropriate supporting operations research and

    statistical tools.

    Choice of Simulation Software

    There are four key graphically oriented system dynamics software packages available in the

    marketplace, all of which are in use at ADFA:

    Powersim (Norway)

    Ithink / STELLA (US)

    Vensim (US)

    Cosmos /Cosmic (UK).

    The Directorate of Army Research & Analysis evaluated the first three of these packages in 1993

    and found that Powersim was significantly more useful, recommending that Army standardise on its

    use. Developments since that time reinforce this conclusion.

    The different packages have advantages and disadvantages reflecting the particular niches they aim

    at. The following brief comments relate to their applicability to the Federal budget policy

    environment. For a more detailed review reference to the DARA evaluation is suggested.

    Cosmos / Cosmic and Vensim are much more geared to background technical use. The fact that

    Armys powerful MRU (manpower required in uniform) model, built in Vensim, has fallen into

    total disuse within 2 years of its creator leaving is a reflection of its lack of user friendliness.

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    6/16

    Quality Assurance in System Dynamics Modelling

    6

    Ithink / STELLA, whilst probably the most popular package in the educational context, suffers from

    two fatal disadvantages. First, it is not fully networkable in a PC environment; secondly, its array

    capability is very limited, leading to excessive complexity in modelling and model presentation.

    Powersim has demonstrated its ability to handle the complex modelling. Associated software now

    permits publishing of models directly on intranets or the internet.

    Figure 5: "Spreadsheet" versus System Dynamics Models

    Traditional computer models, whether built in spreadsheets or high level computer languages,tend to focus on the mathematical correlation, hiding the underlying conceptual framework. This

    creates problems in validating the model logic with subject area experts and in communicating to

    decision makers the reason for behavioural patterns. Statistical correlation, of course, is notsynonymous with causality

    100 0.3 30

    10000.25 250

    500 0.4 200

    75 0.4 30

    1675

    A1 0.3 A1*B2

    A2 0.25 A2*B2

    5*A1 0.4 A3*B3A1-25 0.4 A4*B4

    Sum(x) Sum(y)

    Sum(z)100 0.3 30

    1000 0.25 250

    500 0.4 200

    75 0.4 30

    1675 510

    2185

    ?

    Spreadsheet models:assume uni-directional linear causality

    emphasise numerical inputs and outputs

    logical relationships between numbersare hidden and difficult to follow

    conceptual framework is obscureNumbers

    Relationships

    Conceptual framework

    System Dynamics Modelling starts with the conceptual framework, particularly the feedback

    relationships. The logic is mapped diagrammatically, facilitating communication with both

    subject area expert and decision makers. The logic map automatically generates the structure of

    the underlying mathematics. The tools facilitate deeper level learning.

    System Dynamic models:address delayed feedback causality

    emphasise meaning and relationships

    conceptual framework is 'mapped'

    logic is developed & displayeddiagramatically

    numbers are kept in background &

    are readily called upon

    Numbers

    Relationships

    ConceptualFramework

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    7/16

    Quality Assurance in System Dynamics Modelling

    7

    System Dynamics is More than Software Simulation

    Over the past three decades System Dynamics has been applied to such areas as project

    management, business development, government policy analysis, environmental change, economic

    development, military strategic and tactical analysis. They have been applied in multi-million andmulti-billion dollar court cases, where they have been developed to withstand scrutiny from

    hostile expert witnesses. Especially since the mid 1980s there has been a corresponding growth

    in the sophistication of tools and methodologies being developed and applied including computer

    simulation tools, soft systems methodology, causal loop diagramming, chaos theory, statistical

    analysis and interactive learning environments.

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    8/16

    Quality Assurance in System Dynamics Modelling

    8

    The diagram below illustrates the tools typically used in the discipline as one moves from

    qualitative conceptualisation of the problem to development of rigorous forensic models and

    management decision tools.

    Figure 6: A palette of systems thinking tools

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    9/16

    Quality Assurance in System Dynamics Modelling

    9

    System Dynamics Modelling Development Methodology

    System Dynamics and Traditional IT Methodologies

    System dynamics modelling differs dramatically from traditional computer application

    development, and hence the diverse computer business systems frameworks (including standardssuch as AS 3563 (Software Quality Management System) and proprietary methodologies such as

    SSADM, JSD, IBM Business Systems Planning, James Martin Information Engineering etc) are

    not directly applicable, although elements of these certainly have application.

    System dynamics modelling generally takes place in a consulting environment where the client

    recognises that there is a problem and the purpose of the modelling is to assist development of an

    understanding of the problem context. Accordingly, scope definition, model specification and

    model building tend to be an iterative or cyclical process, with mutual learning between the

    modeller and the client.

    As yet no SDM development methodology has gained widespread acceptance. The following are

    the key texts which address the area to some extent:Checkland, P. and J. Scholes: Soft Systems Methodology in Action. Wiley, Chichester,

    1990.

    Wolstenholme, E: System Enquiry - A System Dynamics Approach. Wiley, Chichester,

    1990.

    Wolstenholme, E., S. Henderson & A. Gavine: The Evaluation of Management

    Information Systems - A Dynamic and Holistic Approach. Wiles, Chichester, 1993.

    Richardson, G. and A. Pugh: Introduction to System Dynamics Modelling. Productivity

    Press, Portland, 1981.

    Roberts, N. et al: Introduction to Computer Simulation - A System Dynamics Modelling

    Approach. Productivity Press, Portland, 1994.

    In the absence of any formal methodology, the following framework has been developed through

    the writers experience as an amalgam of traditional IS planning methodologies, the Lotus

    Accelerated Value Method, the Soft Systems Methodology and approaches suggested by the

    system dynamics community. It is consistent with the corporate IS strategic planning guidelines

    developed by the Federal Department of Finance. The process iterates through 7 broad stages

    Figure 7: Seven Step System Dynamics Modelling Methodology

    Stage Model Focus Client Focus

    Stage 1:

    Project Planning

    Tools include:

    text & flow charts CPM & GANTT charts budget templates risk templates

    Outcome objectives for the

    modelling project

    Project scoping

    deliverables timeframe budget skills required risk assessment team specification

    Confirm scope and deliverables with

    client

    clarify clients understanding ofsystem dynamics

    seek realistic expectations frommodelling

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    10/16

    Quality Assurance in System Dynamics Modelling

    10

    Stage 2:

    Problem Conceptualisation

    Tools include:

    text & graphs wire diagrams causal loop diagrams influence diagrams concept mapping SSM rich pictures hexagons cognitive mapping social surveys statistical data

    past review reports

    State problem contexts, symptoms

    and patterns of behaviour over time,

    and past solutions

    Identify basic organisation structures core business processes optimisation objective functions

    (outcome performance measures)

    patterns of resource behaviourover time

    system boundaries time horizon of study

    Identify feedback relationships

    key resource states key resource flows

    key delays key interrelation-ships

    Restate problem, e.g. using SSM

    VOCATE framework (Vision,

    Owners, Clients, Actors, Transform-

    ation processes, Environment)

    Confirm understanding of business

    with client

    Confirm understanding of the

    problem with the client

    Confirm organisation performance

    measures with the client

    Stage 3:

    Model Formulation

    Tools include:

    System dynamics software

    Output graphs & tables from

    the SYSTEM DYNAMICS

    model(s)

    Initial Prototype(s)

    MAP - MODEL - SIMULATE -

    VALIDATE - REITERATE

    High level system map: Basic

    single dimension stock-flow model

    of key business processes

    20 - 40 variables key stocks (resources) & flows key delays key auxiliaries key targets / goals / performance

    indicator(s)

    key information or materialfeedbacks

    key delaysRun simulation - validate

    Where there are a variety of core

    processes operating in the

    organisation, each of these may need

    to be developed as independent sub-

    models

    Confirm basic logical structure and

    model functioning with client

    Confirm key variables

    Confirm business rules

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    11/16

    Quality Assurance in System Dynamics Modelling

    11

    Stage 4:

    Model Development

    Tools include:

    System dynamics software

    Detailed Prototype

    MAP - MODEL - SIMULATE -

    VALIDATE -REITERATE

    Iteratively elaborate model,challenging

    system boundaries stocks, flows, converters complexity / simplicity in

    representing business rules

    Introduce multi-dimensionalarrays where applicable

    Identify & build key policy levers& reports

    variables under control of

    decision makers output reports of relevance to

    decision makers

    Confirm basic structure and logic

    with subject area experts

    Confirm key variables with subject

    area experts

    Confirm business rules with subject

    area experts

    Stage 5:

    Model Validation Quality Assurance

    Undertake validation and verification

    tests outlined in Figure 8.

    Iteratively revise model

    Confirm model outputs with subject

    area experts

    Independent testing

    Stage 6:

    Model Handover Installation & Training Installation & Training

    Stage 7:

    Model in use Experience in use of model identifies

    need for fine-tuning.

    Significant iteration can be expected between stages 3 - 5. Periodically, issues settled in stage 2

    may need to be revisited, especially the key performance indicators.

    Details of the actions to be undertaken in stages 2 to 5 are addressed in some detail by Richardson

    and Pugh (1980), Wolstenholme et al (1993) and Roberts et al (1994).

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    12/16

    Quality Assurance in System Dynamics Modelling

    12

    Validation and Verification of System Dynamics Models

    Need for Validation

    All models are a simplification of the real world. To that extent all models are wrong. What is

    important is that the models are useful, that they capture the key elements of real worldbehaviour, so that the patterns of behaviour, the direction of change and the magnitude of change

    predicted by the model under specified conditions broadly mimic the expected real world

    behaviour. Achieving these, however, is not sufficient. There is an additional, critical, dimension

    to usefulness. The clients or users of the model must have confidence in the model.

    Validation and verification testing are designed to ascertain whether a model is useful or merely

    wrong. Procedures for testing or validating system dynamics models are discussed in a wide

    range of literature, including:

    Barlas, Y., 1989. Multiple Tests for Validation of System Dynamics Type of Simulation

    Models, European Journal of Operational Research, Vol. 42, No. 1, pp. 59-87.

    Barlas, Y., 1994. Model Validation in System Dynamics, Proceedings of the 1994International System Dynamics Conference, Methodological Issues Vol. 1, pp. 1-10,

    Stirling, Scotland.

    Barlas, Y., 1996. Formal aspects of model validity and validation in system dynamics.

    System Dynamics Review, Vol 12, No 3. pp. 183-210.

    Bell, J.A. and P.M. Senge. 1980. Methods for Enhancing Refutability in System

    Dynamics Modelling. TIMS Studies in the Management Sciences, 14 (1), 61-73.

    Forrester JW, Senge P, Tests for building confidence in system dynamics models, in A.

    Legasto et al. (eds.), TIMS Studies in the Management Sciences (System Dynamics),

    North-Holland, The Netherlands, 1980, pp. 209- 228

    Graham, A.K. 1980. Parameter Estimation in System Dynamics Modelling. In J. Randers

    (Ed.), Elements of the System Dynamic Method. (pp. 143-161). Cambridge, MA:

    Productivity Press.

    Grcic, B and Munitic, A., 1997. System Dynamics Approach to Validation, Proceedings of

    the 1997 International System Dynamics Conference, Istanbul, Turkey.

    Peterson, D and Eberline, R, 1994. Reality Check: a bridge between systems thinking and

    system dynamics. System Dynamics Review, Vol 10, Nos 2/3.

    Richardson GP, Pugh A, Introduction to System Dynamics Modelling with DYNAMO, MIT

    Press, Cambridge, MA, 1981

    Sargent, R.G., Verification and Validation of Simulation Models, in System Dynamics,

    North Holland Publishing Company, Amsterdam, 1980.

    Sterman, J.D., A Skeptic's Guide to Computer Models, in Grant, L. et al., Foresight and

    National Decisions, University Press of America, Boston, 1988.

    Tank-Nielsen, C., Sensitivity Analysis in System Dynamics, in Elements of the System

    Dynamics Method, J. Randers (ed), Productivity Press, Connecticut, 1980.

    Figure 8 summarises from the above literature the key tests which would seem to be relevant to

    assuring the client that the preparedness models are useful. These tests are elaborated below. Not

    all these tests are relevant to every situation. However, at least the first six tests should normally beapplied, and the others as appropriate to the particular situation.

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    13/16

    Quality Assurance in System Dynamics Modelling

    13

    Figure 8: Validation and Verification Tests of Model Adequacy

    Structure verification the model structure is consistent with relevant descriptive

    knowledge of the system;

    Parameter verification the parameters are consistent with relevant descriptive (and,

    where available, numerical) knowledge of the system;

    Boundary adequacy all important concepts for addressing the policy problem are

    endogenous to (included in) the model;

    Extreme conditions each equation makes sense, even when inputs take on extreme

    values;

    Dimensional consistency all equations are dimensionally consistent;

    Behaviour reproduction the model generates behaviour modes, phasing, frequencies and

    other characteristics of the behaviour of the real system;

    Behaviour anomaly anomalous behaviour occurs under standard parameter values,

    or anomalous behaviour arises if a key assumption is deleted

    Behaviour sensitivity the model behaviour is appropriately sensitive to plausible

    variations in input parameters;

    Behaviour prediction the model plausibly describes the results of new policy.

    Extreme policy the model behaves properly when subjected to extreme policies

    or test inputs;

    Statistical character the model output has the same statistical character as the

    output of the real system;

    Structure Verification Tests: Because the foundation for model behavior is the model's structure,

    the first test in validating a model is whether the structure of the model matches the structure of the

    system being modelled. Every element of the model should have a real-world counterpart, and

    every important factor in the real system should be reflected in the model. Although this may seem

    like a simple, obvious test, it may not be so. For example, descriptions of how all of the structural

    parts of real systems are tied together rarely exist. More often than not, such descriptions must be

    based on the concepts, or mental models, of people familiar with the system. Further, important

    parts of some systems may lie unrecognized prior to modelling.

    Parameter Verification Tests: Parameter values in a model often may be tested in a straightforward

    manner, e.g., against historical data. However, even in technical defence systems, the available

    data may be suspect. For example, equipment maintenance logs may reflect the total time the

    equipment has been in the workshop, not the actual time it was being worked on. Also, in many

    instances, there may be variables that are not usually quantified, but that are perceived to be critical

    to the system being modelled. These elements must be included in the model. If productivity, for

    example, is an important element in assessing optimal workforce structure, it must be included in

    the model, and its relationship to other pertinent parts of the system must be specifiedquantitatively. Clearly if the model output is strongly sensitive to such qualitative inputs, further

    rigorous analysis of those inputs may be required.

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    14/16

    Quality Assurance in System Dynamics Modelling

    14

    Boundary Adequacy Test: Model boundaries must match the purpose for which the model is

    designed, if the model is to be used with confidence; that is, the model must include all of the

    important factors affecting the behavior of interest. In practice, boundaries tend to shift as the

    developers' and users' understanding of a problem evolves with the model's development. As model

    purpose shifts, changes in the model's boundaries may be required. In many problems, a simple

    model with limited boundaries may be expanded, or disaggregated, from time to time, as the modelis used to address problems in greater detail.

    Extreme Conditions Test: Tests under extreme conditions, that is applying very high or very low

    values to variables, often exposes structural faults or inadequacies and incomplete or erroneous

    parameter relationships. The criterion is whether the pattern of system behaviour or values of

    dependent variables remain valid (e.g. do not go negative if negativity is theoretically impossible)

    or remain plausible. The ability of a model to function properly under extreme conditions

    contributes to its utility as a policy evaluation tool as well as user confidence.

    Dimensional Consistency Tests of model equations is an important structural test which simply

    checks that the dimensions or units for the left hand side of an equation are identical with those on

    the right hand side. Errors in dimensional consistency can easily creep into model equations during

    model development and, subsequently, during revisions.

    Behavior Reproduction Test: The tests relating to model behavior are less technical and, for many

    users, more convincing than the structural tests. Foremost among these tests is the comparison of

    model behavior with the behavior of the system being modeled. A model whose behavior has little,

    or nothing, in common with that of the system of interest generates little, or no, confidence. Where

    historical time series data are available, the model must be capable of producing similar data. In

    this test, it is again important to keep in mind the purpose of the model -- including the time span of

    the areas of behavior that are of interest. Where historical data are very poor or nonexistent, the test

    may be one of reasonableness.

    Behavior Anomaly Test: When model behavior does not replicate the behavior of the real system,

    model structure, parameter values, boundaries, or similar factors must be considered suspect.

    Something may have been omitted, improperly specified, or assigned incorrect values. Whether

    due to faults in the model or in the real system, the resolution of the discrepancies found through

    the anomalous behavior test bolsters confidence and validity.

    Behavior Sensitivity Test: Most, but certainly not all, systems are stable. Small, reasonable

    changes in a model's parameter values, should normally not produce radical behavior changes.

    Typically these are introduced using the STEP, RAMP, PULSE or SINEWAVE functions of the

    software. If the model's behavior is not seriously affected by plausible parameter variations,

    confidence in the model is increased. On the other hand, dynamic simulation models are often used

    to search for parameters that can effect behavior changes. The criterion in the sensitivity test is that

    any sensitivity exhibited by the model should not only be plausible, but also consistent with

    observed, or likely, behavior in the real system.

    Behavior Prediction Test: A fundamental use of dynamic simulation models is predicting how a

    system would behave if various policies of interest were implemented. Dynamic simulation models

    offer significant advantages when used in this role; they provide a consistent basis for the

    predictions. This basis is a consolidation of judgment, experience, and intuition that has been tested

    against historical evidence. Confidence in the model is reinforced if the model not only replicates

    long-term historical behavior, but also replicates the behaviour in existing systems where policy

    changes have been implemented.

    Extreme Policy Test: Similar to extreme conditions test, these tests introduce radical policies into

    the model to see if the behavior of the model is consistent with what would be expected under these

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    15/16

    Quality Assurance in System Dynamics Modelling

    15

    conditions.. The criterion again is whether the pattern of system behaviour or values of dependent

    variables remain valid or plausible.

    Statistical Character Test: The behaviour reproduction test (q.v.) is somewhat qualitative. In some

    circumstances it may prove desirable to test rigorously behaviour reproduction. This may be done

    by modifying model structure to produce formal statistics on key model output variables which canbe compared with real data.

    Consultant Team Role/Function Descriptions

    How a consultant approaches and staffs a project will vary according to their particular mode of

    operation and the particular staff available, their mix of skills and their competing duties. The

    following is indicative only to assist in time / cost estimates.

    Figure 9: Role / Function Descriptions

    Role/Function Description of Responsibilities Skills/Experience/ Background

    Required

    Consultant

    Project Manager

    Responsible for contract administration

    Ensures in-budget, on-time, on-quality

    delivery of contracted items

    Plans the program, allocates and directs staff

    and other resources to accomplish tasks, and

    maintains control over the program

    Tracks project status and works to identify

    and resolve road blocks

    Ensures client satisfaction

    Owns and builds long-term client

    relationship

    Provides independent review and assessment

    to ensure that proper methods are followed:

    work conforms to contract risks are discussed and mitigations

    achieved

    Action plans and targets arecommunicated to team

    Results are communicated to client

    Proven project management

    expertise in defence contracts.

    Proven expertise in managing IS

    projects

    Basic understanding of system

    dynamics modelling.

    Basic understanding of the

    modelling domain (i.e.preparedness)

  • 8/9/2019 Linard_1999-Quality Assurance in System Dynamics Modeling

    16/16

    Quality Assurance in System Dynamics Modelling

    16

    Principal system

    dynamics analyst

    Implements the detailed system dynamics

    modelling methodology (steps 2 to 6 in

    Figure 6:

    problem conceptualisation model formulation model development model validation model handoverLiases directly with the clients subject area

    experts to confirm the various stages of the

    model development are valid

    Technical expert in the 5 stages of

    model development listed in Figure

    6.

    Technical expert in the use of the

    modelling software

    Technical expertise in the use of

    ancillary software (spreadsheets,

    statistical packages, database

    systems etc)

    Significant domain knowledge of

    the area being modelled

    Assistant system

    dynamics analyst

    Undertakes less complex aspects of the

    modelling, including

    background research

    documentation of all model parametersand equations development of user help screens development of program menu and

    navigation tools

    development of user documentation development of draft project report

    Intermediate level of expertise in the

    5 stages of model development

    listed in Figure 6.

    Intermediate level of expertise in the

    use of the modelling software

    Basic domain knowledge of the area

    being modelled

    _____________________