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Definition: Closed System
A closed system as the name suggests does not have any interaction with the outside world. It does not exchange any material or information with the outside world. Thus it minimizes the undesired changes that the external factors can bring about on the system.
In manufacturing such a system is generally preferred as one looks to operate the manufacturing process continuously without any negative influence from customers, suppliers etc.
The inputs of the closed system if any are well defined and the outputs are known well in advance.
In contrast, an open system in the one in which there is a free flow of information between the system and the environment.
In today’s dynamic and complex world, it is very difficult to adopt the closed system because the nature and quantity of output is very dependent on the demand. Just in Time (JIT), which is one of the popular management techniques is an open system.
A classic example of a closed system will be a computer program, where the nature of inputs and outputs is well defined. It hardly interacts with the external world while performing its calculation.