Systems Economics Lexicon · Economic Physiology — Activity Architecture

Central Department Cycle

The Activity Cycle of the system responsible for producing that system’s own product.

StatusSupporting term
SectionEconomic Physiology — Activity Architecture

Understanding Central Department Cycle

In a firm’s Central Department Cycle, the 36 activities of the cycle are called departments, with different phases acting on distinguishable resource types: Phase 1 departments act on inputs and subject resources destined for 2.2.2, Phase 2 departments act on the product itself, Phase 3 departments act on the product and the compensation received for it, and Phase 4 departments act on all resources and processes present in the firm. The Ford Motor Company case study shows this concretely: Ford’s Central Department Cycle orients around 2.2.2 B4ii (cars), with each of its 36 activities defined relative to car production (e.g., 1.3 stores and maintains subject resources and inputs for car production). The reference-table diagram, the “fishbones model,” depicts the Central Department Cycle without its own subject resources, since those are instead represented by separate Subject Resource Production Cycles feeding into it, avoiding depicting the same resource twice.

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