Information Technology Reference
In-Depth Information
within each operational unit (sales, cost, productivity, employee levels,
and others). The figures can be analyzed for important trends and early
warning indicators. Having knowledge about essential parameters that
have changed away from the “norm” is more important that having data
and information about everything in the organization. If everything is
going as “usual,” it is not necessary to spend time on it. These alerts are
called
in VSM.
This form of information gathering (based on alerts or exception) was
probably the root of the “management by exception” mantra popular in
the 1980s. This is a leadership style wherein managers intervene only
when those they are managing have failed to meet their performance
standards (e.g., a sales target). If personnel are performing as expected,
the manager will take no action.
Management by exception is an efficient way to manage multiple large
or complex projects. Instead of managing everything, one looks for items
in the project that are not performing as planned and investigates these
items. Before the project starts, one sets thresholds to define acceptable
tolerances for vital parameters based on customer goals and what the
customer feels is “critical for success.” One can then focus on exceptions
and opportunities that would probably have been missed because one
was drowned in reams of nonessential detailed information.
The most important factor for success in this approach is the ability
to identify an actual exception. Furthermore, at what level of detailed
information should exceptions be detected, and how frequently should
they be detected and transmitted? There are various tools and methodol-
ogies that organizations can deploy to identify exceptions.
algedonics
Types of Systems
Systems can be classified in many ways. Those who build software should
understand some of those types, including the following.
Open systems
are those influenced by stimuli outside their known
boundaries. A
, on the other hand, is one that can function
by itself and is not influenced by external stimuli. Mechanistic systems
can be open or closed. An automobile engine is an example of a closed
system; many animals have circulatory systems that are open. Similarly,
all social systems are examples of open systems.
Then there are
closed system
. As the name implies,
the latter have components or characteristics that change over time. Most
dynamic systems will settle into a state of dynamic equilibrium. Due to a
malfunction of their parts, they may, however, become static. A running
automobile engine is a dynamic system until it runs out of fuel.
static systems
and
dynamic systems
