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A system dynamics approach to the efficiency thoroughness tradeoff

Kontogiannis Thomas, Malakis, Stathis

Πλήρης Εγγραφή

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Περίληψη

In human factors and safety, the principle of Efficiency-Thoroughness-Tradeoff (ETTO book of Hollnagel, 2009) has stimulated a new perspective on how safety events may arise when organizations increase pressures at work to produce more, faster but with less resources. Several studies have provided evidence of the ETTO principle in healthcare, manufacturing, maintenance, maritime, aviation and air traffic control. This paper seeks to look deeper into the mechanisms and dynamics of ETTO by using a system dynamics approach of similar exploitation-exploration tradeoffs as applied in the context of management science. The model has looked into the dynamics of two variants of thoroughness, that is, compensation tactics and explorative strategies. Simulation trials with a system dynamics model have identified ‘tipping points’ where production challenges cannot be met by continuing to do more by exploiting existing resources. Results also indicate that exploration can become a source of organizational slack that can be traded in to increase capabilities and hence, productivity up to a certain point. ETTO situations have also been examined in conditions of environmental dynamism (e.g., information uncertainty, fluctuations of demands and borderline conditions) that affect the effectiveness of operations and long-term capabilities. Finally, the system dynamics model has looked into ways that exploration could be enhanced by means of articulation and learning. By using a simulation model, this article shows how quantitative modeling can provide additional insights into the ETTO principle.

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