CAUSAL LOOP DIAGRAMMING: A REVIEW

Case 2

This case presents simple situations to review the causal loop diagramming guidelines
learned in System Dynamics. It also provides a venue to analyze the case and identify
important variables that interact to cause the problem. Finally, it is intended to exercise
the mental simulation of feedback loops as explicitly connected to reference modes.

Instructions:

1. Read the case and identify the problem variable. Draw the reference mode
that you think the case will result to.
2. Propose which type/s of feedback loops (positive or negative) and
archetypes can more likely explain the above reference mode.
3. Identify other relevant variables (including exogenous variables) that are
more likely to affect the problem variable. Do an Internet research to identify and
support additional variables.
4. Connect and explain the variables, marking them as positive or negative,
until feedback loops are created. Also mark the feedback loops as positive or
negative.
5. Relate your causal loop diagram to the reference mode.

Cases:

1. A production manager, who cannot handle the pressures of the work and demand for
increased efficiency, resorts to drinking alcohol to relieve stress. However, the drinking
affects his decision-making and makes more wrong decisions, which lead to further
efficiency problems and issues. The observed behavior pattern of his drinking and
problems is increasing.

2. The company launched a quality circles program and offered free merienda for every
meeting they hold to encourage maximum participation. Pancit, sandwiches and Coke
were provided. At the start, only few held meetings. As others saw the benefits of free
snacks, more and more circles were organized and more meetings were held. To
accommodate all meetings, the budget now could afford only to provide Skyflakes and
Zesto. Soon, some quality circles stopped meeting.

3. A production IE set time standards in a plant from his time studies. From his
observations, he realized that the workers were lax and inefficient so he gave low rating
factors. However, he found himself confronted by workers who demanded that his quotas
were high, unachievable and ridiculous. They were threatening to hold a strike if he did
not adjust them. Efficiency is going down.
4. A presidential candidate had a number of advisers who formed two camps. Whenever
one camp gets their recommendation adopted by the candidate, the other camp holds
meetings to get over the other camp. In the end, their rivalry continued to increase.

5. A bus company required additional buses for its fleet because a number of its buses are
under repair. It buys second hand buses from Korea. What it does not realize is that these
used have shorter lives and breakdown in less than a year. The number of breakdowns
kept increasing in the long term.

6. A new church was becoming popular in the city. Its priest was known to personally
know each member of his parish, providing advice and help to each. This attracted new
members. Soon the parish grew. As it grew, the priest had less time with each parishioner.
Members began dissatisfied and soon left the church.

Discussion questions:

1. Discuss and justify your problem variable. Discuss why you think the
reference mode will have that pattern. Justify from literature as much as possible.
2. Identify, discuss and explain the feedback loops and archetypes that you
think apply to this case. What are the components of the archetype that more
likely explains the reference mode? Justify.
3. Explain each of the variables that you think are relevant to the case.
4. Explain how you develop your causal loop diagram (one loop at a time)
and justify each arrow. Cite references as much as possible.
5. Explain how the variables and loops interact to explain each of the trends
in the reference mode. Be as detailed as possible.
6. What are your learnings from this case?