PROJECT MANAGEMENT 641

ASSIGNMENT TOPIC
PROJECTS & SYSTEMS THEORY

HISTORY:
Any phenomena can be understood using two different approaches Reductionism and Systems theory. These techniques have been in conflict for quite some time, especially since many philosophers started to question the Reductionism approach to understand the world. Now over the years the Systems theory approach is being increasingly applied.
The Reductionism method implies that the best way to understand a phenomenon is to break it down into small components and individually examining each component. On the other hand, Systems theory is an interdisciplinary and holistic approach to evaluating the relationships and characteristics of different components within a ‘system’ and the effects of these interrelations on the whole organization (Hamilton 1997,32-46). A system can be defined as smaller entities and mechanisms that are interdependent and form an integrated whole.
SYSTEMS THEORY:
The concept of General systems theory was first introduced by the German philosopher Georg Wilhelm Friedrich Hegel who used notion in relation to organic biology (Hamilton 1997,32-46). The General systems theory proposed that “The whole is not just the sum of parts” (Kast and Rosenzweig 1972, 450) rather the interrelation of the individual parts determines the characteristics and functions of the whole body. This holistic approach suggested that characteristics of the complete system cannot be fully appreciated by individually examining its components (Kast and Rosenzweig 1972, 450). Although, it was initially used for explaining interactions in the biological systems, Systems theory being a wide framework encompasses and overlaps many other disciplines. It provides a common frame-work to analyze problems across various fields due to which it has gained popularity in due course (Hamilton 1997,32-46). Using the concept of systems theory for problem solving is known as the “systems approach” (Hamilton 1997,32-46).
SYSTEMS APPROACH:
The systems approach combines a number of tenets, starting with a basic structure for a system. A system is primarily considered as having two parts, “elements”, components that need not be further divided, and “sub-systems”, units that possess the qualities of a system and can similarly be further split into elements and sub-systems themselves (Hamilton 1997,32-46). Systems have arbitrary boundaries and can thus have elements external to them which are a part of the environment (Hamilton 1997,32-46). Systems theory, therefore, primarily categorizes an organism in two broad groups; closed systems and open systems. Closed systems are ones that have no interactions with the environment in which they exist (Hamilton 1997,32-46). Conversely, Open systems have permeable boundaries which allow inflows and outflows to and from the system which maybe in the form of information, materials, etc. Such systems are capable of growth and development.
Moreover, another characteristic that the General systems theory recognizes as common to all systems is the input-transformation-output process (Kast and Rosenzweig 1972, 450). According to this principle the open systems may have organization-like qualities comprising of elements such as inputs, processors, outputs and management. The system takes the outputs from the environment, transforms them, through a process known as the transformation system, into the desired outputs and exports these outputs back into the environment (F. Heylighen 1998). The management component of this process is known as feedback. Feedback is a control tool that allows a system to achieve its desired position as information from the system is reentered into the system to allow for corrective measures when necessary (Hamilton 1997,32-46). There are two types of feedback, positive and negative. Negative feedback suggests that mistakes are being made in the system and reentry of this information allows the system to make required adjustments to achieve the desired results. Positive feedback reinforces the same process by feeding back the information.
Another fundamental concept of Systems theory is the Homeostasis. As the individual components with in a system are inter linked, each component which maybe an element or a sub-system carries out its functions and interacts with the other components to attain an objective desired by the system. All the individual components work in a fashion that would maintain the homeostasis- a state of equilibrium (Kast and Rosenzweig 1972, 450). Such a state of stability within the system is crucial to the existence and survival of the system as a whole.
The systems theory approach also takes into consideration the ability of a system to achieve its desired goals employing varied combinations of inputs and transformation processes. This principle of systems theory is known as Equifinality of open systems (Kast and Rosenzweig 1972, 450). This process of reaching a similar end state from different initial positions is a key feature of organized systems.
SYSTEMS TYPOLOGY:
Now that the basic characteristics and key variables in the study of systems theory have been highlighted, it is essential to state the type of systems that exist. Philosophers mainly classify systems in four broad categories these are natural systems, designed physical systems, designed abstract systems and human activity systems. Each of these have traits the differentiate them from one another. Natural systems exist naturally and their origins are found in the universe (Hamilton 1997,32-46). Such systems adapt to their changing environments and evolve overtime. Designed physical system is a man-made product. Such systems are designed by humans to fulfill some purpose or to achieve some objective (Hamilton 1997,32-46). Designed Abstract systems are also man-made but they are typically the work of the human mind (Hamilton 1997,32-46). Last but not the least are human activity systems. These systems may not exist physically, rather they are collections or sets of humans or human actions attempting to fulfill some underlying purpose (Hamilton 1997,32-46).
SYSTEMS THEORY AND PROJECT MANAGEMENT:
Being a diverse subject matter and with applications in numerous disciplines, Systems theory tends to provide us with a well-established framework to apply to the study of project management. The world in general comprises of dynamic and complex systems. Businesses and organizations are a part of such complex structures and are therefore called “social organizations”. Examples of these can include hospitals, schools and banks (Deshpande 2011). General systems theory can also be used an approach to understand the workings and mechanisms of such organizations and the projects undertaken by these organizations (Kerzner 2013 ). General systems theory has been a major contributor to the development of management techniques used in organization which allows managements to carry out their functions while simultaneously taking into consideration other organizational factors (Kerzner 2013). One of these approaches is Project management.
PART II- PRACTICAL APPLICATION:
PROJECT:
The Formula One racing is the most famous motor sports. The technologies used in Formula One Cars have brought breakthroughs in the car industry. A Formula One car is all about performance and making the most out of every little bit of the sub systems of the car. Every sub system of a Formula One car is redesigned from time to time in order to achieve the maximum performance out of that sub system. Following are the major sub systems of a Formula One car. * Engine * Fuel * Transmission * Suspension * Aerodynamics * Braking * Steering wheel * KERS (Kinetic Energy Recovery System) * ECU (Engine Control Unit) * Cooling system
System 1-KERS (Kinetic Energy Recovery System): KERS is one of the most innovative technologies used in Formula One cars. KERS uses the waste heat energy released during breaking and stores it in a battery (electrical) or flywheel (mechanical) to use it later for acceleration. Most of the Formula One car manufacturers have opted for the electrical option. The Electrical system uses a motor-generator installed in the car’s transmission which utilizes waste mechanical energy and converts it into electrical energy and stores it in a battery. Later on when required the stored electrical energy is then used as mechanical output for maximum acceleration while on a straighter path or while over taking or escaping and overtaking driver.
System 2-Aerodynamics: The aerodynamics of a Formula One car is the most critical issue while designing the car. Every little component of the car is designed and installed in a manner to contribute to the down-force of the car. There are two wings on a Formula One car the one in the rear is supposed to create as much down-force and as little drag as possible in order to achieve maximum speed and grip while the one in front helps the driver in corners allowing him to quickly go through a corner. The rest of the body is so designed to contribute to the airflow over these wings. Even the helmet of the driver is specifically designed to contribute to the aerodynamics of the car. Focusing on every little bit is important in Formula One because even the hundredth of a second matters. But the car also needs enough airflow over the body to dissipate the huge amount of heat generated by a modern Formula One engine. So the aerodynamics of a car plays a very critical role and fine adjustments are needed all along the development of the car design.
EXAMPLES SHOWING INTERDEPENDENCE AND INTERRELATIONS:
Example 1-KERS:
The KERS is dependent on other systems in a car. Those systems are the ECU, brake and transmission mainly. During braking the KERS system is charged restoring the kinetic energy electrically then later on it is used with help of a boost button on the steering wheel this boost is controlled and monitored by an Engine Control Unit (ECU).
A recent example of KERS failure and its interdependence can be seen at the Formula 1 Rolex Australian Grand Prix held on March 17th 2013 when Mark Webber of team Red Bull lost 6 places from 2nd to 7th on the start. The KERS system failed to work and the driver was unable to maintain his position as his fellow drivers’ KERS working perfectly fine gave them advantage over Webber. The problem was narrowed down to the ECU which malfunctioned and disabling the KERS system. The ECU was reset in the first pit stop talking a little longer but fixing the problem and enabling the driver to utilize his car fully. Mark Webber who started in the 2nd place lost 6 positions to come 7th at the 2013 Australian Grand Prix.
Example 2-Aerodynamics: The aerodynamics of a Formula One car and the other systems of this are all interdependent in one way or another as each and every component of the car, either big or small, if not well placed would affect the airflow of the car producing drag which is undesirable.
The tires of the car produce the most drag as they are not covered in order to reduce this drag the front wing is so designed to push the air away from the tires but letting in just enough to cool the brakes as they can get red hot and blow into pieces. The body over the engine is shaped to as much narrower behind the engine as possible to maximize air flow over the rear wing this idea was first implemented by Ferrari and was followed by other car manufacturers. The body also incorporates for the air intake of the engine and also well designed to maintain proper airflow to dissipate the heat generated by the engine. The earlier designs of a Formula One car did not focus on such minor details as today an example is the suspension arms that used to be circular at a time but the modern Formula One car has wing like suspension arms. These suspension arms don’t really contribute to the down-force but produce ten times less drag than a circular arm which is a big difference at high speeds. These are just some of the analysis of how much the aerodynamics of the Formula One car matter and are interdependent on each other. The interrelation of all the systems contributes to the performance of the Formula One car producing major and minor affects.
COORDINATION:
The key to maximum performance is dependent on the coordination of the systems of the car. In a Formula One car it’s all about precision which can be achieved through proper coordination of the subsystems in the car.
Analyzing coordination of the subsystems: Let’s analyze how coordination affects the engine. The engine is dependent on the fuel, air intake, piston, electrical systems, exhaust and the timing of intake and exhaust valves. The proper mixture of air and gas provides maximum power output but this output is only maximized when the spark is well coordinated to ignite the mixture under the maximum pressure of the piston and also if the exhaust valves are properly timed to release the burnt gases. Transmission is dependent on the coordination of clutch and gearbox. The clutch and gearbox are dependent on the control system of the steering wheel. The steering wheels coordination is maintained by electrical systems and so on.
Technique 1-Socialization of the team:
To manage the coordination of all these systems it’s important for the team to maintain coordination within themselves which can be achieved by socialization. To ensure maximum efficiency of the car the team needs to socialize more and more in order to explain each other their subsystems properly and what they need from the other member to maximize coordination between the subsystems. If the team is well coordinated they will be able to fine tune the coordination of the subsystems hence producing maximum performance out of the car.
Technique 2-Technological advancements:
Another important tool in the maintenance of coordination is the time to time technological advancement in the car. It is important that the team focuses on improving the technology used in the car using minimal resources and maximizing the output of the car. Using innovation to redesign each subsystem, focus on the coordination among them and fine tune the subsystems to achieve maximum performance.
EXTERNAL ENVIRONMENT FACTORS AFFECTING THE PROJECT:
Factor 1-Technology: The external factor affecting the performance of KERS is the third party equipment used in the car manufacturing specially brakes, engine or ECU if bought from a third party source. Most of the equipment is self-designed and manufactured to produce best results but some of the times standard equipment is bought from a third party source. As in the case of Mark Webber’s KERS disabling was due to an external factor that is the ECU which is standard among all cars and is supplied by a single third party manufacturer. The software of the ECU malfunctioned and had to be reset during the race with little expertise of the team as it was a third party device. If such a device is faulty the team has no control over it.
Factor 2-Weather:
The most important external factor affecting the aerodynamics of a car is the air. The air density and its flow is pretty much dependent on the weather how much humid or dry is the air or is it hot or cold. These factors are out of our control but the best we can do is to take into account all these factors and develop a design that’s balanced to tackle such situations.
Another major external factor is rain which completely disrupts airflow and there is not much we can do about it. The tires of the car are replaced to wet ones which are designed to push away as much water under the tires and maximize grip but that is also to a certain extent.
PART III:
REFLECTION:
The systems theory teaches us how to study any project as a whole. It helps us to look at the project with a broader view in mind. Its best practice to break down a project into subprojects but it is very important to keep in mind the following points. * How the subprojects affect each other. * How they are interrelated and interdependent. * How important is the coordination among them for a project to be efficient. * How external environmental factors need to be kept in mind.
For a project manager to deliver a successful project it is very important for him to keep in mind the systems theory and study the project from its aspects. It will give the project manager better command and confidence over the project. It will help the project manager to maintain a healthy teamwork by implementing coordination among them. It will make it easier for the project manager to keep the sponsors well communicated with the progress.
Systems theory will help a project manager to study the project as a whole compared to reductionism where isolating a subsystem could lose track of time, cost and quality. Keeping track of time, cost and quality is very difficult in a project so by keeping in mind the approach of systems theory the project manager will always keep track of all subprojects and their effects on each other and will maintain a strong coordination among the team members and staff utilizing systems theory to the fullest and achieve milestones with the help of it.

BIBLIOGRAPHY
Deshpande, Girish 2011. Can we apply system theory to project management?, http://www.blogs.mindtree.com/apply-systems-theory (accessed March 31, 2013)

Hamilton, Albert. 1997. Achieving success in a changing world In Management by projects, 32-46. London: Thomas Telford

Heylighen, F. 1998. Basic Concepts of systems approach, http://pespmc1.vub.ac.be/SYSAPPR.html (accessed March 31, 2013)

Kast and Rosenzweig, 1972. “General Systems Theory: Applications for Organization and Management”, Academy of management Journal, pp.447-464. http://www.academia.edu/1040164/General_systems_theory_Applications_for_organiza tion_and_management (accessed March 31, 2013)

Krezner, Harold, 2013. General Systems Management In Project Management, John Wiley & Sons. http://books.google.com.au/books?id=QgQQC5qRtzgC&source=gbs_navlinks_s (accessed March 31, 2013)