Graf, K.-R., Terzidis, K., Ipsilandis P.:
Simulation Training in Logistic Processes Just-in-Time:
An International Experience.
In: New Horizons in Industry, Business and Education
Proceedings of the 4th International Conference
Hrsg: George M. Papadourakis
Heraklion: Technological Educational Institute of Crete 2005, S. 254-262.
Simulation
Training in Logistic Processes Just-in-Time:
An International Experience
Karl-Robert Graf
Dept. of Business Informatics, Karlsruhe University of Applied Sciences
Moltkestr. 30, 76133 Karlsruhe, Germany
robert.graf@hs-karlsruhe.de
Kostas Terzidis
Dept. of Information Management, Technological Education Institute of Kavala
65404 Kavala, Greece,
Pandelis Ipsilandis
Dept of Project Management, Technological Education Institute of Larissa,
41110 Larissa, Greece
Abstract: Various business games, many of them computer based, have been proposed and introduced in the last years. This paper describes a manual game simulating the interactions among the various management functions of a production system where participants are confronted with the main problems of implementing logistics to achieve lean production. The aim of the game is the intensification and practical application of knowledge previously gained on the topics of logistics, just-in-time, continuous improvement processes, reengineering, process integration and lean management. At the same time students experience project management concepts and team dynamics. Working in competitive groups participants acquire experience in role identification, communication skills, time, scope and information management. The paper also includes a discussion regarding experiences with groups of different ethnic and educational backgrounds.
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Keywords: Simulation Training, Production Management, Logistics, LOGTIME
1. INTRODUCTION
Simulation training is a learning by doing educational approach that involves the presentation to the trainees (students, employees, managers) of a working reprentation of a real situation in the form of an abstract, physical or computer model [8] that has a relevant behavioral similarity to the original system [9]. Trainees, in teams or individually, are asked to make decisions and implement actions according to a set of rules which drive the model and produce results in an effort to achieve given objectives [10]. The results are judged either on their own merit or relative to those achieved by other teams. This competitive training environment has the characteristics of a “game”. Simulation games have been suggested for their visibility, reproductibility, safety, and economy [3]. Simulation games are also used used when there are no possibilities for the students to get experience of the system or situations in the real life; simulation games allow the learners to explore systems where reality is too expensive, complex, dangerous, fast or slow [8]. In education their main purpose is to present complex abstract models of reality in experientally rich and concrete forms. A novel application area for simulation games, is to use them so students get insight about implementation of organizational changes, new processes, and realize the benefits, difficulties, people management and information system needs that come as a consequence of changes.
In the last years various new methodologies and philosophies emerged all of which aim in improving the process management. Just in time (JIT) begun as an a ‘philosophy of continuous and forced inventory supplies driven by the ‘pull’ of the customer’s order’ [4] and extended to a lean production concept for eliminating waste and improving efficiency [2]. Quality improvements are sought by implementing approaches and methodologies like Total Quality Management (TQM) and Six Sigma. The Balanced Scorecard methodology focuses in defining process objectives and the measurement of both tangible and intangible assets such as the knowledge, effectiveness.
All these methodologies have a common characteristic. They introduce to managers at all levels the philosophy of the need for continuous improvement (CI) a west-world translation [5] of what Japanese management experience calls ‘kaizen’. Bessant et al. [1] look at CI as a particular bundle of routines which can help an organisation to improve what it currently does.
However, possession of the knowledge and information merely, cannot lead to achievement of a high level of process improvements. New training methods are required for diffusing this knowledge to manager by putting them into situations where they must article positions, ideas, arguments and facts they previously learned so that they are convinced about the effect of new organizational schemes or methodologies, realize the complications and sensitivity of potential changes, define skills and team roles, and are finally prepared for real life conditions.
2. AIMS
The aim of the training method is the intensification and practical application of knowledge previously gained on the study topics of logistics, just-in-time, continuous improvement processes, total quality management, reengineering, process integration and lean management.
For this purpose a simple production model is used, in which participants perform the various management functions of the model production themselves (sales, manufacturing, assembly, quality control etc.). Due to the simplicity of the production model, the individual participant obtains an overview of the main functions and interactions of operations within the firm, and is already able to pinpoint weaknesses after a short time.
Based on the knowledge they have acquired, participants put into practise, step by step, the realisation of logistics measures for lean production in the sense of the KAIZEN philosophy. They recognise the impacts of the measures they have initiated, and gain an impression of meaningful procedures for selection and sequence of realisation. This dismantles their own inhibitions about implementing measures introduced into the reality of management in their own work situation.
Participants are required to work in teams and produce work plans that the whole team understands, and supports creating a corporate like vision of the team. Interpersonal and project management skills are being developed through the sharing of knowledge, the matching of team member’s skills to jobs and functions to be performed and the need to create plans with specific deliverables under time-constraints.
3. BRIEF OVERVIEW OF THE SIMULATION TRAINING MODEL
The initial "status quo" represents a function-oriented, traditionally organised manufacturing organisation. The "simulation training" takes place over two to four periods, with groups of 7-12 participants. Each group member represents a business function.
The task of the group is to reorganise the given manufacturing organisation, by applying measures or combinations of measures appropriate to the situation in order to achieve, with minimum use of resources, an improved logistic performance with its delivery characteristics of reliability, short lead times, ability to deliver, consistent quality and high rate of flow. Possible measures are listed in an "action catalogue".
After each planning period the logistics performance for that period is discussed and compared with the results of the previous period and with those of competing groups.
4. DESCRIPTION OF THE MANUFACTURING ORGANISATION
Two products are manufactured in six different variants.
There are 6 production departments. In the initial situation the Prefabrication 1 (P1), the Prefabrication 2 (P2), the Assembly, the Run-in and, Quality control and the Reworking.
Initially manufacturing is according to the job shop production principle and is function-oriented (5 or 6 employees - one in each department).
A worker carrying out a process supplies his or her own capacity unit with raw materials, parts and modules from the warehouse. On completion of the process each worker transfers the processed parts, modules or products in batches to the warehouse.
At the beginning of the initial period there are sufficient purchased parts in stock for the planned production programme. Altogether 10 purchased parts, 21 intermediate products and modules, as well as 6 products are dealt with in the warehouse
Initially, production takes place according to a predetermined production programme, which is the same for all groups to begin with.
Incoming orders are called by the sales department, representing the market, in a predetermined sequence and at predetermined time intervals.
Figure 1:
Initial production layout
The sequence of orders placed within a period is, however, random. They are passed on by the market in a randomly predetermined sequence (which however is not known to the other participants). The sequence and number of orders, and the overall proportions are the same for all participating groups and periods.
5. PARAMETERS AND GOAL ATTAINMENT CRITERIA
After each simulation period, various goal attainment criteria can be measured. The indicators should be determined and evaluated beforehand, and discussed jointly with the group (or groups).
When training time is limited, the following parameters and success indicators can be measured: