Graf, K.-R.; Augustin; S.; Terzidis, K.:
New Approach for Global Education – Simulating Supply Chains by Applying World Wide Web.
In: Integrating Human Aspects In Production Management.
Hrsg. Zülch,G.; Jagdev, H.S.; Stock, P..
Berlin: Springer, 2004, S. 295-306.

 

New Approach for Global Education - Simulating Supply Chains by   Applying World Wide Web -
Karl-Robert Graf Siegfried Augustin Konstantinos Terzidis
KAP

Abstract:    For a long time simulation tools have been used for implementing logistic functions and connec­tions in teaching and vocational training (Augustin, Graf 1995; Riis 1995; Wiendahl 1996; Lang, Jung 2001). In recent years, considerable progress has been made with regard to the following different ways and means used in logistics and computer science:

·         Transformation of the logistics management into a fundamentally enlarged supply chain management,

·         Establishment of communication, set-up of business tools like B2B (Business to Business), B2C (Business to Customer), the Internet, e-commerce (Electronic Commerce), etc. for the efficient func­tioning of a supply chain,

·         Development of new programming software for the open and dis­tributed implementation of training modules in local and global networks.

As part of a project, traditional aspects are going to be enhanced by current methods and concepts so that new interdiscipli­nary work methods can be applied in business networks. For this purpose the training medium "business simulation" is going to be brought to the state-of-the-art in computer, communication and network technology.

Within the scope of a joint project of private industry partners (Siemens AG) and different universitie­s (Montanuniver­sität Leoben, Austria; Technological Educational Institute of Kavala, Greece) a training concept is being developed, completing traditional logistics aspects (planning and control of intra-company material, purchase orders and information flow) by the previously mentioned new requirements.

Key words:      Logistics, Supply Chain Management, Simulation, Blended Learning, E-Learning, Personal Development, Web Based Training

 

 

1.                                Introduction

For a long time simulation tools have been used for implementing logistic functions and connec­tions in teaching and vocational training (Augustin, Graf 1995; Riis 1995; Wiendahl 1996; Lang, Jung 2001). In recent years, considerable progress has been made with regard to the following different ways and means used in logistics and computer science (see Fig. 1):

·                Transformation of the logistics management into a fundamentally enlarged supply chain management,

·                Establishment of communication, set-up of business tools like B2B (Business to Business), B2C (Business to Customer), the Internet, e-commerce (Electronic Commerce), etc. for the efficient func­tioning of a supply chain,

·                Development of new programming software for the open and dis­tributed implementation of training modules in local and global networks.

 

Fig. 1   New Aspects vs. Traditional Aspects

 

As part of a project, traditional aspects are going to be enhanced by current methods and concepts so that new interdiscipli­nary work methods can be applied in business networks. For this purpose the training medium "business simulation" is going to be brought to the state-of-the-art in computer, communication and network technology.

Within the scope of a joint project of private industry partners (Siemens AG) and different universitie­s (Montanuniver­sität Leoben, Austria; Technological Educational Institute of Kavala, Greece) a training concept is being developed, completing traditional logistics aspects (planning and control of intra-company material, purchase orders and information flow) by the previously mentioned new requirements.

The goal of this project is the establishment of a simulated model system in which several value-added partners (located in various geo­graphical areas) of a supply chain are involved (Thaler 1999). The exchange of merchandise between those partners is going to be implemented via B2B, B2C, e-commerce, or similar solutions on a virtual market-place. The virtual market place and its conditions need to be set up in a simulation model that allows the value-added partners to plan and reorganize their businesses leading and interactions to the creation of an operating supply chain.

2.                                Description of the Simulation Model

The value-added partners shown in the simulated model system are planned by one training group each, so they can act and cooperate on a common virtual market, independent of their geographical location. This enables various training groups from different fields and univer­sities to participate in the business simulation at the same time.

All groups are starting with an identical model company in which three products are manufactured. The in-house manufactured products consist of parts and components, and the purchased parts. The participating groups plan the production system simulated in the model (see Fig. 2).

 

The planning comprises
                        - the release of purchase orders,
                        - pro­duction orders,
                        - production capacities for the working units and
                        - control methods.

 

Fig. 2   Elements of the Production System

 

At the starting point the participating groups work in an isolated model world. Parts to be purchased are obtained from an anonymous source of supply under various conditions. At the other side there is an anonymous sales-market with its primary and supplementary requirements. So the production units and planning groups design their system for markets that are almost nearly independent of each other (see Fig. 3).

 

Fig. 3   Isolated Model Structure

In the following, the groups have the chance to carry out suc­cessively their exchange of goods on a newly installed central market. The production units and planning groups design their systems on a common open market (see Fig. 5).

In accordance with principles of Supply Chain Management, the procurement and distribution market is transparent and allows for flexibility new customer and supplier relations. Each group can act on the common market as a customer, or supplier for parts, semi-finished products, and final products (see Fig. 4).

Fig. 4   Advanced Model Structure

Various characteristics within the newly established, Internet-based business relations are possible for the creation of customer-supplier relations (business relations). A concept for three characteris­tic stages has been set up (see Fig. 5).

 

• stage 1      Business Relations 1 (Market Place) for Parts, Semi-finished and Finished Products

Open to all suppliers and customers. Suppliers and customers alike determine the condi­tions according to their company situa­tion and market observations.

 

• stage 2      Business Relations 2 (B2C, B2B, A2A (Application to Application) for Parts, Semi-
finished and Finished Products

The production units coordinate exclusive supply strategies. The conditions result from their company situation and the holistic formation of the supply chain to the advantage of all participants.

 

• stage 3      Business Relations 3 (Traditional Market) for Parts, Semi-fin­ished and Finished Products

Anonymous (traditional) market for suppliers and customers with somewhat limited influ­ence by the groups.

 

Business relations 1 and 3 have been technically implemented in the current system. Business Relations 2 are going to be realized in this time.

Fig. 5   E-Business Scenarios

 

The traditional implementation of the business simulation was as follows: Regionally separate business simulations at various univer­sities and locations showed a model design that was com­pletely inde­pendent of the others. In the same way the different groups within a business simulation acted as suppliers and customers on an anony­mous market and had very little exchange and contact with each  other (see Fig. 6).

 

Fig. 6   Proven Structure

 

In contrast to the traditional model, Web integration between differ­ent business simulations and their participating groups open up com­pletely new methods and possibilities. It allows the groups to act inde­pendently of their location - since the simulation of the model com­panies, as well as the exchange of products, take place via the Internet on a central server in a virtual environment
(see Fig. 7).

 

Fig. 7   Web Integration

Each group, regardless of their integration into a particular business simulation, has the chance to par­ticipate on the common market. The time frame and location of a simulation game thus become irrelevant, as each time the groups that are currently present interact with each other group present on the market.

3.                                Implementation and Project Status

The core of this logistics training concept is a computer simulation of various industrial companies (value partners) for which a new simulation model, adjusted to the previously mentioned conditions, has been developed based on a well-established simula­tion concept (TCP - Training Center Production (Jung 2000; www.logistikplanspiele.de). The simulation of the production system and marketplace resides on a central application-server that participants can access via the Internet, or an Intranet and an interposed web server. Accord­ing to the requirements in information technology, the imple­mentation is carried out via the programming languages and scripting languages Java, HTML, XML, and SVG (see Fig. 8).

 

 

Fig. 8   Simulated Model System

 

The simulation is run via web portal

 

The currently available portal functions are:

·         data transfer via XML file,

·         data input via Applet,

·         simulation,

·         user administration,

·         market-place activities,

·         result evaluation,

·         simulation manual and simulation documentation,

·         links.
(see Fig. 9)

Different language versions currently exist in English, German and Greek. All the information material necessary for the business simulation has been integrated into the web portal. The participants can access this material any time. The material includes: an electronic manual, all the forms necessary for the business simulation and field specific presentations.

 

Fig. 9   SCS Access

 

 

4.                                Conclusion

In summary one can say that the idea to implement a global teaching and training concept with this new simulation system has been realized. The concept allows simulation and training in the field of extensive logistics meth­ods and measures using new information technologies combined with new logistics concepts for supply chain management.

Modern media and especially the Internet, open and blend new opportunities for e-learning (see Fig. 10).

 

 

Fig. 10 Aspects of Web Integration

 

The applied server technology with its possibility of a central simulation of production plants, combined with standard methods of Internet communication, allow, for the first time, a geographi­cally independent exchange of purchased parts and components, semi-fin­ished products, final products and funds. This enables an international and extremely realistic business simulation. The design and imple­mentation of cash flow, the information logistics, as well as the con­tract condi­tions are based on the same methods and technologies used in "real life", whereas the manufacturing of semi-finished and finished products is simulated by the simulation system.

A continuous and global participation of educational institutions allows the creation of an interna­tional, simulated market. The multi-lingual versions of the concept and the cooperation of different universities in Germany, Austria and Greece brought this open concept to an international level for the first time. The first courses outside of the German-speaking countries were held at the Technological Educational Institute in Kavala (TEI), Greece.

However, not only universities all over the world might profit of such a concept. A LEARNTEC forum has shown particular interest in the problem of "Digital Divide", a program the UNESCO refers to as "Reach the Unreachables" with the goal to train people in less devel­oped countries using modern media, such as, the new information and communication technologies, especially the Internet (Kappel 2002). The existing training concept can contribute greatly to that program. Furthermore it can be combined with a new approach for recruiting project teams for supply chain projects (Wiendahl 1996; Augustin, Kern 2002).

5.                                References

Augustin, Siegfried; Graf, Karl-Robert:
Planspiele bei der Einführung kontinuierlicher Verbesserungsprozesse.
In: etz Elektrotechnik und Automation,
Düsseldorf, 124(1995)13-14, pp.12-17.

Augustin, Siegfried; Kern, Eva-Maria; Hornstein, Elisabeth von:
Management von Supply Chain Projekten – Einsatz von Planspielen zur Optimierung der Projektbesetzung.
In: Logistikplanung und –management, 8. Magdeburger Logistik-Tagung.
Hrsg.: Schenk, Michael; Ziems, Dietrich; InderfurtH, Karl.
Magdeburg, 2002, pp. 270-282.

Kappel, Hans Henning:
LEARNTEC 2002: Internationalität wächst.
In: Frankfurter Allgemeine Sonntagszeitung,
Frankfurt, 27.01.2002, p. 70.

Lang, Sabine; Jung, Klaus-Peter:
Planspiele für die Praxis.
In: Logistik heute,
München, 23(2001)3, pp. 50-52.

Riis, Jens O.:
Simulation Games in Production Environement – An Introduction.
In: Simulation Games and Learning in Production Management.
London: Chapman & Hall, 1995, pp. 3-12.

Thaler, Klaus:
Supply Chain Management.
Köln: Forbis, 1999.

Wiendahl, Hans-Peter:
Fähigkeit zum Wandel und kurze Reaktionszeiten bestimmen den Erfolg.
In: Industrie-Anzeiger,
Stuttgart, 118(1996)34/35, pp. 28-31.