The Approach Of Systems Thinking Commerce Essay

Table of contents

Over this century the attack of Systems Thinking has gained increasing attending in assorted social spheres, such as civilization, scientific discipline, general and human ecology, faith and economic sciences & A ; direction. System Thinking has taught us that it is non about faulting other people but to work together to happen a solution and to accomplish that there must be a good relationship, connectivity and interconnectivity. For any system to work efficaciously it is recommended that all parts be present and functional and must be connected to a proper manner.

System believing in an Organisation chiefly depends on accomplishing negative information through openness and feedback, system believing besides plays a major function in administrations and aid to acquire rid of disfucntional administration, Successful organisations develop features and execute procedures that allow them to accommodate to restraints, menaces, and chances. For any administration grow and better that administration must so go larning administration and for it to work efficaciously there should be an effectual leading which will convey effectual alteration and originative thoughts to the administration.

Learning organisation deter the outlook that it is merely senior direction who can and make all the thought for the full corporation and it hence encourages everyone ‘s thoughts are valued and amount that people can lend and it is non determined by place in the organisation.

The embedding procedure, The following scenario has been experienced from my company. This typical illustration is used to suit the ‘Why ‘ Question in the hereafter.

Buying a Generator Transformer for Majuba Unit 1

Why Generator Transformer?

  • Can transport high Voltage and high Amperes
  • Can defy higher Temperatures.
  • Can defy lower Temperatures
  • Can be used out-of-doorss and Indoors
  • Using natural air and oil for chilling
  • Can step up or down the Voltage
  • Excessively dearly-won
  • Available on shelves

Why non Unit transformer?

  • Carries less Voltage and Amperes
  • Easily acquire hot due to insufficient chilling
  • Low current capacity
  • Inadequate chilling system
  • Reasonable monetary value
  • Can merely step down the Voltage

Why non dry type Transformer?

  • Recommended for Indoors usage
  • Can non defy high temperatures
  • Can non stand really low temperatures
  • Very inexpensive
  • Can merely step down the Voltage.

Why non BFP ‘s Transformers?

  • Not design to transport out high tons
  • Can defy high and lower temporaries
  • Reasonable monetary value

Why non Pole mounted Transformer

  • Does non suit for the intent,
  • Can defy temperature alterations
  • Not available on shelf
  • Used FOR Domestic intent

The result of the analysis shows that Option figure 1 is the lone 1 that is applicable for the Majuba Power Station, this is due to the fact that option figure 1 meets all the specific demands and is ever available on shelves.

Plethora of Literature

Fig 1 above Tells about the Memory ability Factor: System believing illustrate that no affair how much work burden you might hold the encephalon power aid to execute you responsibilities and ensures that all work acquire don, it besides tells us that a proper planning plays a immense function on all state of affairs one could come across with, It hence of import for the individual to acquire sufficient cognition and preparation to accomplish the best consequences.

Fig 2 above Tells us on Project direction state of affairs planning besides plays a immense function and if planning is non done one will confront troubles when it comes to Project Execution, Project Management is worthless when the quality is compromised, Fig 2 Teach us the for the undertaking to executed, The strategic program is where we find the AIM of the system the ‘whole ‘ should be taken into consideration, intending that the must be a continues betterment and a strategic planning and Management should be pattern for a Undertaking to be a successful one.

Fig 3 above Tells us the information system in administration, Organisation should guarantee that its values are know by all employees and should populate by them, Trust within the administration leads to a good squad work with one end of accomplishing the best for the company.

Policies and process should organize portion of day-to-day activities and should be communicated to all employees in an administration,

Letter to the board of directors

Many companies have failed themselves and some resulted in shutting down, No one of all time take clip to understand why this happens, Research shows that system thought does non be and Management does thing the manner they think. Most administrations do non run as a ‘whole ‘ but instead as a ‘part ‘ of the system.

Fig 1, 2 and 3 above illustrate Different application of the system thought, each and every figure will lend to the turning and development of the administration, Employees and Management will derive a batch of trust and apprehension of each other, to better our methods of alteration, hence, we need to understand more about what really governs people ‘s behavior. When no alteration occurs, it is the form of behavior that remains unchanged. Making the right thing means we have to larn how to see an administration as a system and understand the deductions of that position for what it means to pull off.

System believing when applied decently can alter the mentality of employees and it is recommended that all employees to be exposed to system thought and the construction should be such that employees must experience that they are portion of the administration, It is recommended that preparation should be provided to the employees to acquire the good consequences of system thought, Good communicating construction to be in topographic point and all informed of it,

A learning administration produces a good consequences and increases working public presentation which leads to an addition in production.

It is the Board determination to accept the application of System believing in this administration taking into history the benefit and the impact the system believing will hold in the administration.

What is Fractal – a fractal is any object or something or signifier created from repeated forms apparent at many degrees of graduated table.

In my administration, I have noticed that a fractal quality take topographic point when we do the pre occupation brief [ where safety and occupation planning is discussed before the occupation can really get down ] and the Safety of people is ever emphasised and repeated, this is done to accomplish one end which is to hold zero first assistance and zero Loss clip hurts.

Another Changes that I need to Implement is to accomplish Fractal quality is Cardinal regulations, These regulations are the regulations that can non be broken by anyone and should anyone interrupt anyone of the regulations, there will be a formal disciplinary for that person which might consequences to a serious misconduct

These five cardinal regulations are as follows:

  • Open, Isolates, Earth and/or bond and safety trial before touch
  • Hook up at highs
  • Be sober
  • Have Permit to work
  • I therefore see it necessary to warn co-workers each twenty-four hours about these five cardinal regulations.

Undertaking Name: Renovation of Turbine Valves

This is a undertaking that is presently busy with at my work topographic point Majuba Power Station Unit 4.


In 2009 it was suspected that unit 4 Turbine Valve are damaged, this came after the machine was in a procedure of closing down after flushing extremum, The Operator who was in charge of the machine did non follow the shut down process and he was erroneously unfastened the control valve and allow H2O to travel through the Turbine, Water should non at any point go to the turbine as this could caused Quenching [ allow H2O to the turbine valves ] .

The effects of Turbine extinction is a categorized as a catastrophe which cause the Rotors on the Turbine to flex and finally do the Turbine to vibrate, and since last twelvemonth therefore far the quiver has been so high,

The ground for non making the fixs last when the incident take topographic point was the fact the system could non let Majuba to take the machine out for Outage due to the system constrains. The machine have been running at a lower burden since last twelvemonth and the hazard to run the machine with amendss was identified and all extenuation was put in topographic point to avoid farther amendss to the Turbine.

Scope of work:

Shut down the Machine

Force cool the machine for 36hrs

Erect Scaffolding [ Sub contract ]

Remove lagging and cladding [ Sub contract ]

Remove Turbine 4 Turbine valves

Remove Turbine Two Rotors

Send both Valves and Rotors for fixs at Alstom [ Sub contract ]

Inspect and replace bearing no 1 and 10 if found damaged

Collect both Valves and Rotors from Alstom

Put back Turbine rotors

Put back Turbine Valves

Replace lagging and facing

Dismantle Scaffolding [ Sub contract ]

Perform Turbine tests, take reading and analyse [ Sub contract ]

Start up the Machine

The chief Contractor is Rotek Engineering

Sub contractor no 1 Kaefer [ Scaffolding ]

Sub contractor no 2 Alstom Power Services

Entire costs for this Undertaking is R 13,000,000.00

Chaos Theory application

This Undertaking was scheduled to get down on the 16th September and complete on the 29th October 2010,

The chief Contractor is Rotek Engineering

Sub contractor no 1 Kaefer [ Scaffolding ]

Sub contractor no 2 Alstom Power Services

After go toing The Da Vinci Institute classes on System Management, the tool used on the stuff was checked against my current undertakings as follows:

So far Alstom has indicated that will be little alteration on the undertaking continuance as the range on the Valves and Rotors has increased after they have stripped and inspected the Vales and Rotors and that has a direct influence on the entire budget allocated, Rotek contractor together with Alstom revised the saloon chart every bit good as the WBS [ Non additive paradigm adopted ] which so showed a late completion day of the month of the 5th November 2010, as Eskom we do non desire to lose clip on the undertaking we so called up a particular meeting with the chief Contractor [ Rotek ] , The contractor was requested to direct a citation for an extra range submitted after the review was done and Eskom besides instructed the Rotek to acquire more resources and besides cite on that extra resources ( we applied control ) , The entire costs now has been increased to R 13A 850,000.00 which was non approved budget ab initio.

We so as a squad called up a meeting with everyone involved, all were encouraged to work safe and put focal point on the work, the coverage / communicating construction and organogram besides discussed with the squad and all understood the set up. Team members were motivated and were promised a braai every bit good as Game gift verifiers of R 150, 00 each should the undertaking be completed on clip. Everybody was asked to experience free on the occupation and to describe any insecure act and the suggestion box was placed on the floor for anyone with jobs on the undertaking itself including HR and Salary issues. In this undertaking non much alteration was applied to the solutions of mending the Valves and the Rotors as the recommendation was given by the industry and no other determination could be made as this constituents are non manufactured locally and no 1 knows much within South Africa.

Presently the squad and everybody involved are happy and this is conformed by the committedness and dedication noted on the squad, this has led to a decrease in continuance of the undertaking by two yearss. The decrease in continuance has helped in costs decrease on the undertaking.

Therefore Chaos theory in Project Management has taught us the followers:

If a good planning and Execution is non done decently, that undertaking is a

If there is no proper communicating in a squad, that is a formula for a catastrophe in a undertaking [ D channel plays a immense function ]

The undertaking environment should be contributing for the squad to larn in order to maximize the usage of alteration.

Analyse element from stakeholder ‘s viewpont

This is an component that I will be discoursing and analysing, besides to place Operating, Transaction every bit good as Contextual Environment.

A Operating Environment

Structure: It is good defined and all employees and employer understand and follow the agreed construction.

Culture: Like any other organisation, Culture diverseness is still a challenge as people do things otherwise and besides think otherwise.

Competences: Competent people are largely on Majuba side although there is still some work to be done and less competent people are more on Contractors working under Majuba.

Resources: In footings of resources, most of the work is outsourced and that is where the most resources are in employed compared to the resources Majuba.

B Transactional Environment

Communities: Not applicable.

Regulators: Eskom is regulated by NERSA in footings of Electricity and in footings Gender equity it is for regulated by authorities Act and ain internal process.

Stockholders: Government and World Bank

Customers: Eskom clients are chiefly all house clasp, Municipalities, Mines, and Hospitals every bit good outside states like Zimbabwe.

Suppliers: Eskom providers are chiefly the coal mines, section of H2O personal businesss, gas Industries, letter paper companies every bit good Computer companies.

Rivals: Presently Eskom does non hold rivals in footings of Electrical power coevals, but other companies generate their ain Electricity for ain usage e.g. Sasol.

Trade association: Not applicable

Unions / employees: Eskom employees have three brotherhoods stand foring them and they are NUM, NUMSA every bit good Solidarity.

Political Forces: Political engagement does be but chiefly take portion in higher Management degree, The ground being that the Eskom Chief Executive Officer is appointed by the Minister of Public Enterprise and Energy.

Economic Forces: Economic forces has negatively impacted Eskom in the past two old ages and that was due to the universe recession and the factor is the new physique Eskom Power Stations which requires a batch of one million millions to be completed and that has besides put Eskom into fiscal crisis at this phase.

Ecological Forces: Not applicable and have no impact on Eskom concern and operation.

Technological Forces, Technology keeps on turning and coming each and every twelvemonth and Eskom is ever out at that place seeking for new thoughts and information of running the concern efficaciously and expeditiously without compromising its nucleus concern.

Socio-cultural Forces: Peoples have different attitude, beliefs, imposts and life style every bit good as civilization, Eskom does hold these different people but they are no influence or whatsoever towards Eskom employees as they have established a wont of working as a squad.

Formulate the mess & Describe the current reality

Structure: The histrions involved here are the Employees, Trade brotherhoods, Employer, clients and providers, their involvement is to guarantee Generate Electricity and administer it to its clients. Eskom has a immense influence and impact on Electricity supply to its clients and besides has influence on its employees

Members: Eskom Executive Committee Board members and employees on all Eskom divisions. Major constituents are all the electricity bring for thing works and Coal and Gasses. Their relationship is that bring for thing works requires Coal and Gasses to bring forth Electrical energy.

Eskom has a dedicated staff that ensures there is continues supply of Electrical energy to Eskom clients, Currently Eskom stockholders are its employees every bit good as the Government, There are three trade brotherhoods viz. NUM, NUMSA every bit good as SOLIDARITY, Eskom chief clients are all Electricity users [ domestic usage ] , Mines, Hospitals and other neighbouring states, Current providers are Coal mines, gasses provider, Government appoints Eskom CEO and ensures that all authorities act are obeyed and followed by all Employers and Eskom is presently regulates by NERSA.

Function: Eskom produced Electrical Energy for all its clients including neighbouring states like Zimbabwe, Electrical energy is produced for all family and domestic usage, Hospitals and companies every bit good as the mines that requires electrical energy to run their concerns, Daily meeting are held where the production demands are discussed and actions are taken by relevant persons.

The chief merchandises is Electrical energy and the markets all Eskom clients, Presently Eskom does non hold major rivals, Eskom has entered the markets in a immense manner that its is registered with JSE every bit good as universe market,

Eskom is presently making good in the Market as there are one other company that compete with Eskom and non much challenge is experience by Eskom, As antecedently discussed, Eskom has no rivals and hence no strength exist

PROCESS ( Knowledge ) : Electrical energy is produced where by the Boiler filled with Tubes is heated through the Boiler Tubes and the steam is formed which the converted to a dry steam and transported at a high force per unit area which so turn the Turbine which in bend turned the Generator. The initiation processes takes topographic point in the generator and the magnetic field are produced and Electrical energy generated.

Then the generated power transferred to the Generator transformer which the measure up the Voltage from 22A 000Volts to 400kv, this 400kv is the sent to the grid and so national control controls the power distribution to all system webs and Eskom clients

Eskom seeks new engineering each and every twenty-four hours for its nucleus concern of bring forthing Electricity at sensible monetary value and that is ever available, although Eskom do hold competent people and accomplishments but there is spread that needs to be closed due to the fact that people with so right accomplishments are go for thing the administration and there is skill keeping or development program in topographic point,

Throughput procedure: Eskom produces a capacity of 4100 MW of Electricity per twenty-four hours, provided the full machines are on burden bring for thing electricity.

Organizational procedure: Eskom have process and Policies in topographic point which aid to run the concern efficaciously e.g. finance, engineering, quality, human resources, and selling are of import procedure considerations.

Minimum demand – To be able to bring forth Electrical energy that is ever available at a sensible monetary value, Benchmaker: The best participants in the administration are all the Eskom employees and the employer who makes it possible produces this Electricity, Cost of selling is 150 Per Megawatt, Cost of Production is about R38m per Megawatt,

Cost of developing about R12m, Cost of rank ( operating expenses ) is about R50m.


Everyone is clear and knows precisely of what needs to be done as all are allocated with work for that peculiar twenty-four hours.

All employees are measured utilizing the in agreement cardinal public presentation Indexs and the wages being the Performance Appraisal Bonuses.

The system is in topographic point for all the divergence and control in conformity with NEC, feedback is required on specific agreed day of the months.


In footings of Market viability, Eskom is still safe as the Market response rather good since there are no rivals ; The demand increases at a fast rate.

Eskom beginning of money is on both Eskom ego net income every bit good as World bank where most of the loans are granted to Eskom.

Although some the Generating Machines are acquiring old, The Machines still operates efficaciously and the demand is forecast 48 hrs upfront at the control Centre situated in Germiston and planned consequently.


Eskom vision of the coveted hereafter province that ‘Together constructing the powerbase for sustainable growing and development and to supply Southern Africa with dependable cost effectual Power ‘

At the present minute Eskom does non hold any insecurities and disaffection, South Africa chiefly dependant on Eskom to provide Electricity and the support is continues.

There is a good Integration on Eskom ‘s stakeholders, The distinction exist when Government is loath to O.K. requested finances and when clients has to pay additions on Electricity


The Main hazards that Eskom faces are deficit of skilled forces, Insufficient power bring forthing machines to run into the increasing demand every bit good as support of the new undertakings

Eskom value its employees and handle everyone with regard they deserve, The Group consists of different people coming from different background and Culture and everyone respects other chap ‘s civilization.

Conflict Management processs are in topographic point to cover with any struggle arising. Depending on each instance virtue but largely a disciplinary commission plays a function.

Reference projection

There is a batch of a thing that could go on should at that place be no alteration the manner administration operates, the undermentioned explains:

The company will non turn and no invention. The company will non copy with new Technologies Skilled people will non acquire challenge and will stop up populating the administration

Organisation would destruct itself by non using alteration in the current manner they operates their concerns, Administration that do non guarantee its employees are acquiring developed and are given opportunity to research. Administration destroys itself if it non a learning administration and when power is on certain single merely Administration that does non hold Policies and process would be destructing its hereafter.

Here we discuss the Solutions that can assist to better the system by discoursing the followers:

Where system in an administration should be more opened?

In my administration I believe the system should be more opened on the followers:

  • Open in communicating construction from the high Management to a lower category people in the administration.
  • Open in Information sharing within the administration even to the people who do non hold entree to e-mail and GroupWise.
  • Open in people ‘s development
  • Open in giving people a platform for Innovation.
  • Open in Procedures and Policies.
  • Where the system in an administration should be closed?

Close in High degree Management determination Near in Individual wages.

Where the system in an administration should be connected?

  • Different sections working in silos should be connected
  • Different division should be connected.

Where Boundaries should be?

  • When people non following process.
  • When people are interrupting the jurisprudence and the regulations.
  • Applied when there is a no work a no wage should use.

Where is the form in an administration?

  • Time order, everybody to maintain on start working clip.
  • Follow process on all work.
  • Treat everybody with regard.

Casual Loop Diagram Key Findings

The undermentioned points indicate the chief country of concern on the above Casual cringle diagram in Fig 5:

It is noted that high population addition electricity demand which in bend reduces the Supply of electricity

The current procedure of bring for thing electricity has a negative impact on our environment as it causes pollution to the air.

The effects of fouling the may every bit good mine workers where Cola is supplied may consequences to human deaths.

It is an obvious instance that in winter season where there is no rainfall, the Eskom administration finds it hard to bring forth Electricity as there is immense deficit of H2O in the dikes and rivers.

The more human deaths are experience in the industries is the more our population acquire reduced.

It is true Eskom is lending to the Economy of this state because all concerns needs electricity to operates efficaciously

Eskom as an administration opens occupation chances and allow people to develop in their callings within Eskom.

It is besides noted that when the employees are given a opportunity to get cognition through surveies and research, they become more enlightening and increase that increases their accomplishments.

Recommendation from the Casual Loop Diagram

The safety of people is a precedence and no production loss or net income can warrant the safety of people, it is hence recommended that the Companies should be more watchful and put systems in topographic point to guarantee that workers come to work safe and unrecorded work safe.

It is recommended that administrations should hold a program in topographic point to develop its employees, this will convey good consequences in a long tally and will lend to the high net income of the administration as the employees will be more skilled and knowing which helps in increasing the company production.


In decision, whether we consider systems believing largely a new position and a set of tools, it has a power and a possible that one time we have been introduced, are difficult to defy. The more you learn about this challenging field, the more you will desire to cognize. In administrations, System Thinking has taught us that all sections should work together and incorporate to accomplish the best consequences, It has besides taught that although we need to cover with a alteration in our environment and learn to near as the ‘whole ‘ instead that as ‘parts ‘ of the system.

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