Case 3

  1. Statement of the Problem – The Company incurred an oscillation with regards to the quality circles being organized.
    1. Behavior Pattern – Oscillating Pattern
    2. Variables:
i. Number of Quality Circles
  1. Process/es – From what was observed, the process is related to an adjustment process, this is due to that the quality circles being organized adjusts to the type of food being served, when low quality foods are served, the quality circles begin to decrease its numbers.
  2. Definition of Variables
    1. Level
i. Number of Quality Circles- This is number of quality circles that are made each time the number of people increase. As the rate of the number of people increase the number of quality circles also increases.
ii. Budget- The amount of money needed to buy the food for the people attending the quality circles.
    1. Rates
i. Rate of Increase- The rate at which the people attending the quality circles are attending. If this increases the number of quality circles also increases.
ii. Rate of Decrease- The rate of decrease at which people are attending the quality circles.
iii. Savings- The amount of money saved from the previous quality circles. This goes straight to the budget needed to buy food for the quality circles.
    1. Auxiliary
i. Funds Saved- The amount of money saved from a previous quality circle.
ii. Quality of Food- The food given to the participants in the quality circles. This is dependent to the Budget of the company and the number quality circles.


  1. Stock Flow Diagram
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Feedback Loops


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The first loop shows that as the rate of increase goes higher the more number of quality circles are made. It also shows that as the rate of decrease increases the rate of increase lowers.


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This feed back loop shows how the rate of increase and decrease effects the funds saved. If there is an increase in the rate of increase less funds are made, when there is an increase in the rate of decrease more funds are saved. The funds then effect the saving of the company. The company then adds up to the budget of the company. The budget then decided the quality of food. The quality of food then affects the rate of increase and decrease of the number of quality circles.
  1. Simulation Results
After doing the simulation, the following graph shows the behavior pattern of the quality circles being organized. It is seen that there is an oscillation in the graph.

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The oscillation is due to the food quality being served as shown in the graph below. It is seen that the graph starts at high food quality and as the quality circles begin to increase, the quality of food decreases.
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The next situation is the reason why food quality increases and decreases as shown in the table below. This is with the assumption that the company has no limit with respect to budget and budget comes from the savings when quality circles decrease. Seen in the figure that when the budget rises, the food quality increases.

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  1. Policies Made
    1. Increase/Decrease Rate of Incoming Quality Circles
Even though the proponents changed the values of the variables, there was no change in the behavior of the graph.
    1. Increase/Decrease Rate of Savings
Rate of the savings seems to not have an effect with the behavior of the graph with regards to the quality circles being organized.
    1. Increase/Decrease Rate of Outgoing Quality Circles
Even limiting the quality circles didn’t affect the oscillating pattern that the quality circle follows.
  1. Learning
Without given data, it is hard to create the exact behavior that you want to see. Most likely is that you will get a discrete line if no data is given. Also it is hard to compare the relationships being assumed without given data.