Simulation as a tool for teaching business

Learning Innovation Lunchtime Seminar Series25th May 2011

Malcolm BradyDCU Business School

Initiatives

• Airline

• Beer game and the bullwhip effect

• System dynamics: Powersim

• Discrete event simulation: Simul8

• Spreadsheet: Excel

Airline

• 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

4

Fares Decisions

Click Fares

Select fare structure and

enter fare price (cents per mile).

Select type of cabin/food

service.

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

advertising

change_in_sales

decay_rate

saturation_sales

sales_response_to_advertising_rate

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)

Time

sale

s

0 50 100 150 200

500,000

1,000,000

1,500,0002,000,000

2,500,000

3,000,000

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

Beaumont Hospital- Physiotherapy Department(Orthopedics Service) : Process Map

Pat

ient

s A

rriv

alC

NA

/DN

A p

olic

y P

roce

ssT

reat

me

nt P

roce

ssT

riage

Pro

cess

I. Referral Card/Appointment

Slip2. Entry of Patient

Details to Electronic wait list

H. Patient Responded?

B. Fracture?

J. Patient wants

treatment?

C. Immediate?

A. Return Patient?

11. Therapist Calls to Patient

5b. Appointment is given to patient in 2-4 weeks by

Admin Staff(ROUTINE CASE)

1. Referral Card/ Appointment Slip verified

by Admin Staff

3. Referral Card is placed in Triage

Box 12. Appointment given for Next

Available Slot by Admin Staff

Start

5a. Appointment is given to patient in 0-2 weeks by

Admin Staff (IMMEDIATE CASE)

D. Person calls for Appointment Cancel( Cannot attend Policy)

4. Senior Physiotherapist Triages Waiting

List cards

8. Admin Staff gives Appointment

as per Patients comfortable date

I. Patient Responds?

10. Referral Card placed in Triage Box waiting for

Patients call

II. Appointment Slip

G. First time DNA?

F. Patient Turn Up

6. Check Appointment Slip

E. Need Next Check Up?

7.Therapist treats Patient

9. Admin Staff gives

appointment for next visit

Cards Discharged

Yes

No

YesNo

Yes

No

Yes

Yes

No

Yes

No No

No

Yes

No

No

No

Yes

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