Simulation as a tool for teaching
business
Learning Innovation Lunchtime Seminar Series
25th May 2011
Malcolm Brady
DCU Business School
Initiatives
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Airline
Beer game and the bullwhip effect
System dynamics: Powersim
Discrete event simulation: Simul8
Spreadsheet: Excel
Airline
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Interactive, experiential, team-based
Accomodates large or small class size
Onsite or remote
Range of student cohorts
– Undergraduates,
– Postgraduates,
– Executives
• Works well for block mode student cohorts
• There is a cost
• www.interpretive.com
Fares Decisions
Click Fares
Select fare
structure and
enter fare
price (cents
per mile).
Select type of
cabin/food
service.
4
Beer game and Bullwhip effect
• Executive classes
• Experiential
• Demonstrates how difficult it is to control a
dynamical system
– Phase lag
– Oscillation
– Amplification
• Requires 2 hour time slot for simulation
and debrief
Beer Game Layout
Beer Game Layout
Sterman, J. 1989. Modeling managerial behavior: misperceptions of feedback
in a dynamic decision making experiment, Management Science 35(3):321-339
Powersim
• Continuous time simulation
• System dynamics
• Variety of applications
• Economic models
• Industrial models
• Tragedy of commons eg. fisheries
• Used to demonstrate examples
• But takes time to learn
• Site licence
Vidale-Wolfe
sales
sales
change_in_sales
saturation_sales
sales_response_to_adverti sing_rate
decay_rate
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
50
100
150
200
Time
advertising
dS/dt = ρA(1-S/m) – λS
Rate of change of sales = sales response to advertising x advertising
x (1-sales(t) /saturation sales)
– sales decay constant x sales(t)
Simul8
• Discrete event simulation
– Service, manufacturing, public sector process
• call centre, high-tech manufacturing, A&E
• Software tool
• Demonstration
– But takes time to develop modeling skill
• Site licence
Patients Arrival
Beaumont Hospital- Physiotherapy Department(Orthopedics Service) : Process Map
I. Referral Card/
Appointment
Slip
1. Referral Card/
Appointment Slip verified
by Admin Staff
Start
A. Return
Patient?
No
2. Entry of Patient
Details to
Electronic wait list
B. Fracture?
Triage Process
Yes
No
4. Senior
Physiotherapist
Triages Waiting
List cards
Yes
3. Referral Card is
placed in Triage
Box
12. Appointment
given for Next
Available Slot by
Admin Staff
C. Immediate?
Yes
No
5a. Appointment is given to
patient in 0-2 weeks by
Admin Staff
(IMMEDIATE CASE)
5b. Appointment is given to
patient in 2-4 weeks by
Admin Staff
(ROUTINE CASE)
8. Admin Staff
gives Appointment
as per Patients
comfortable date
Yes
II. Appointment Slip
Treatment Process
CNA/DNA policy Process
Yes
J. Patient wants
D. Person calls for
Appointment Cancel(
Cannot attend Policy)
treatment?
11. Therapist Calls to
Patient
No
Yes
10. Referral Card
placed in Triage
Box waiting for
Patients call
I. Patient
Responds?
No
Yes
No
9. Admin Staff
gives
appointment for
next visit
F. Patient Turn
Up
No
G. First time
DNA?
No
H. Patient
Responded?
No
Yes
6. Check
Appointment Slip
7.Therapist treats
Patient
E. Need Next
Check Up?
Cards Discharged
No
Conclusion
• Simulation is an effective way to stimulate
student learning
• Several approaches exist
– Suit different needs/ timeslots/ student cohorts
• There can be a cost, but usually no more
than a textbook
• Many strategy texts bundle in simulations
• Test it before you use it, especially for a
large class