Since the delay and lag are not noticeable in the step response, we use a first-order model for the process.
$$ G(s) = \frac{K}{1+\tau s} $$
Combine with PI controller
$$ C(s) = K_P + \frac{K_I}{s} $$
The open-loop transfer function becomes:
$$
L(s) = C(s) \cdot G(s) = \left(K_P + \frac{K_I}{s}\right) \cdot \frac{K}{1 + \tau s} = \frac{K (K_P s + K_I)}{s(1 + \tau s)}
$$
The closed-loop transfer function is:
$$
T(s) = \frac{L(s)}{1 + L(s)} = \frac{K (K_P s + K_I)}{\tau s^2 + (1 + K K_P) s + K K_I}
$$
This is a second-order system, where:
Critical damping is the desired response for a heater system because it can only provide positive control input (active heating but not active cooling).
To achieve a critically damped response with desired speed $\omega_n$, we match the closed-loop denominator to:
$$ s^2 + 2\omega_n s + \omega_n^2 = (s+\omega_n)^2 $$
which gave 2 real poles at $-\omega_n$
Matching terms gives:
$$ T(s) = \frac{K (K_P s + K_I)/ \tau}{ s^2 + (1 + K K_P) s/\tau + K K_I/\tau} $$