System Thinking: Holistic Approach.
Lecture: Emilia Sari, ST., MT., Ph.D.
Agus Ruhimat (263022300012) DTI University Trisakti, 10/31/2023 Topic 1: Product Design Holistic approach.
Product design should consider anything from raw material to manufacturing, from usage until end-of-life product. By covering all the aspects of economical, environmental, and social purpose. So that, the product will contribute to sustainable.
Design should also start with the purpose of circular economics, where end-of-life products can go for recycling or reuse. Raw material should be bio materials that will minimum waste. Manufacture must be easy to process using less energy and high yield, so that less waste. Besides all technical factors, the product should be beautiful and good-looking esthetics and has strong function and value to consumer.
The elements:
1. Raw Material: Considering raw materials that are environmentally friendly or easily available at low prices.
2. Manufacturing process: Low budget, simple, lean, parts can be used or substituted with various products.
3. Usage: user friendly, can be used for all ages, environmentally friendly, can be used in any condition, durable, has a long shelf-life, good economic value.
4. End of life: easy replacement, can be recycled quickly, does not cost money for disposal.
Topic 2: Housing bubble.
Housing bubble can track down from causal and loop from (each variable is equal contribution to the problem, so will show in Bullets rather than Numbering):
Federal reserves provide low interest that generate sub prime loans.
The bipartisan coalition has closed to community development act, generate subprime loan. Companies like GSE, Fannie Mae, Freddy Mae had issued insurance of mortgages, securitization of mortgage.
Provider subprime loans / high risk loans that have high potential for default.
Investment banking has faulted its model & reward system to create an explosive derivative trading game.
Miscalculation risk, that generate hiding risk in highly leverage and unregulated hedge fund. Involved credit rating company mortgage provider.
Real estate motivates people to buy homes, impacting the provision of loans that are intensified continuously
Credit rating agencies provide incorrect assessments related to investment institutions, so many investors invest but operations in financing institutions are not good, NPLs are high, and liquidity is low
The real estate broker.
All the elements of the housing bubble are interactive with each other togethers which are real estate brokers, federal low interest, international derivatives, credit rating agency, investment banking, and home ownership.
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