Utilization of free lean games in education and comparison of results in business and academic field

 
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Recent Researches in Applied Economics and Management - Volume I

Utilization of free lean games in education and comparison of results in
                       business and academic field
                                         MARTIN JANUSKA
                         Department of Business Administration and Management
                                      University of West Bohemia
                                      Univerzitni 8, 30614, Pilsen
                                         CZECH REPUBLIC
                                        mjanuska@kpm.zcu.cz

                                                JIRI KUDRNA
                              Department of Industrial Engineering and Management
                                          University of West Bohemia
                                          Univerzitni 8, 30614, Pilsen
                                              CZECH REPUBLIC
                                              kudrnaj@kpv.zcu.cz

Abstract: - This paper presents a comparison of achievements and benefits of the usage of management games
in teaching university students and employees. The paper describes the benefits of playing managerial games
and the result is demonstrated on the Frog Factory game which serves as a simulation of the production line.
Frog Factory game should simulate lean strategies and principles, optimizing of the layout and benefits of staff
training.

Key-Words: - Lean games, managerial games, Frog Factory, lean principles training, training games.

1 Introduction
Management simulation games are a means by
which is possible to simulate any business                         2 Evolution of managerial games
environment. Games includes the interaction of                     Most authors think that modern management games
multiple people. This makes playing management                     evolved from war games. Their ancient predecessors
games very close to reality. Players can test their                were for example chess. The basis of the war games
decisions in "dry runs". This practice helps to                    were originally viewing of maneuvering exercises
develop all types of managerial skills both soft skills            with progressive decision making of participants
and learning itself. Management games supports                     playing according to predetermined rules. At the
faster learning because players can compare their                  beginning of the 20th century extended knowledge
own theory and experience gained during the game                   of war games was around the world. Over time the
[1].                                                               measures simulated by game were formulated still
As an example of the current practical usage of                    more in detail and in addition to military factors
games can serve the usage of managerial games in                   economic, financial and psychological factors were
the staff coaching. Also there is a big influence of               included. The major development of advanced
teambuilding activities (games) at the formation of                simulation games began after the Second World
high-quality team or workgroup. Management                         War. Simultaneously with the development of
games are an important active method for teaching                  mathematical methods in economics, development
management skills. Their main task is to develop the               of operational research, game theory, systems theory
capacity for strategic thinking and decision making                and other new disciplines emphasizing analytical,
in tense situations, encourage teamwork and                        quantitative and experimental site of simulation
communication between individuals.                                 games.
Management games can be referred to as business                    Under these conditions managerial games were
simulators, business games, interactive learning                   developed from the war games. Top Management
environment, management flight simulators, micro-                  Decision Simulation developed in the USA in 1957
world or serious games [1].                                        is considered as a first managerial game.

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Development of the management games starts based                  student's their socioeconomic status and other
on the success of this game by number of                          factors.
institutions in USA and later in world especially
universities and companies manufacturing desktop                      • teamwork
computers. Number of other management                             There are teammates and opponents in the
simulation games was developed. Some games with                   managerial games as indeed in every other game.
use of a computer model and some without it.                      When we collaborate with teammates to win and
Games have been applied in different fields of                    beat the opponent we share a common goal. At this
economy. For probably the most famous game                        time a group of players become a team.
which relates to simulation modeling is considered a
Beer Game - "Production and distribution of beer."                    • managerial decision making
The game originated in the early sixties years at                 By playing management games is possible to
MIT. Game is designed for teams of at least four                  examine the consequences of our decisions. In the
players and the theme of the game is the production               event that we do not know which solution is correct
and distribution of a single brand of beer. Goal of               is possible to seek a solution by trial and error. By
the game is to get highest profit. Popularity of this             playing the management games is possible to get
game is currently very big and it is offered by many              plenty of experience by working with modeling
companies and it is also part of the teaching                     tools. Thanks to them is possible to model the
program in many business schools.                                 specific situation and modeling tools are an ideal
                                                                  decision support tools.
2.1 Goals of the games
The usual goal of every game is to be the winner but
even that would not be satisfying if we did not have
                                                                  3 Division of games
good time during the game. The aim of management                  Considering the complexity of the concept of
games is rather test the behavior of the players                  "management game" is also possible to divide these
during the game. Individual players can verify the                games by many criteria.
consequences of their decisions on the outcome of                 According to Biggs [2] is possible to classify
the game. By playing they gaining experience that                 managerial games by following criteria:
otherwise would be difficult to acquire in the real                   •   according the subject of game focus
conditions or their decision could have fatal                     One group is relatively narrowly focused on only
consequences for running real businesses. In some                 one aspect of decision-making within the company
cases of management games players learn to look at                and on the other side games dealing with the whole
problems differently thanks to the understanding of               company including the possible interactions
the processes within the system. Players can try the              between different functional areas within the
systems thinking rather than reactive behavior.                   company.
Rules are the basis of management games same as                       • according the nature of competition -
in other games. More complex they are the harder                           competitive and noncompetitive.
playing is. The game even with complex rules can                  Competitive games allows interaction model to
often provide lots of space to search for new novel               affect the results of one company by decisions of
results which enhances the attractiveness of a game               other companies. In other words firms compete with
experience and develops creative approach of                      each other. In games that can be described as non-
players [1].                                                      competitive, firms play "against the computer" and
                                                                  decisions do not affect each other.
2.2 Advantages of utilization of managerial                           • according to the level of interactivity
games                                                             That means how participants communicate with the
There are many advantages of management games                     management game respectively with the model or
described in literature.                                          how the data about participants decisions are
                                                                  transferred to the game model and vice versa. Also
    • learning by doing                                           depends is what form is the output of management
This is the method in which students are educated                 game for participants.
by their own experience. Students in regular classes                  • according to the generality of game focus
receive only 10% of their capabilities at the school.             This relates to the intention of the drafters either
The remaining 90% is by the natural ability of the                model the game as a simulation of a particular
                                                                  industry (eg production and development of
                                                                  computer processors) and therefore their efforts to

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Recent Researches in Applied Economics and Management - Volume I

capture the specifics of the industry in the model in                     information is processed manually using a
the game or to completely avoid this dilemma and                          variety of forms, reports, papers
does not specify the type of products produced by                       o computer economic games
the company.                                                            o economic games based on solid
    • according to the nature of participants                             mathematical methods and rules -
         involvement                                                      economic situations that are more
Games can be divided into individual and those in                         quantitative
which participants create teams. Each team then                       • Economics games based on free models –
represents one company.                                                  decision is based on actual situation which
    • according to the level randomness of                               is developing during the game
         events in the game
The level of randomness means the way the game                    4 Lean games
goes from one state to another. If there is only result           Following part of the paper shows the practical
of participants decisions and the clear rules or if               application of managerial games. Specifically games
there is also an element of luck in the scenarios.                that deal with practicing lean approaches (Kanban,
    • according the way of technical                              5S, Kaizen, etc.).
         implementation                                           Here are the reasons why games are better than the
    • according to the overall complexity                         traditional way of teaching, such as using Power
    • according the way of dealing with game                      Point presentation. Following chapter (4.1) is taken
         time                                                     from portal www.leansimulations.org [4]:

Another division is from economic point of view                   4.1 Seven Benefits of Teaching Lean with
[3].                                                              Simulations
     • Business games simulates decision making
        on the top management level                               Why should to use games and simulations to teach
     • Functional games simulate functions and                    Lean material? What’s wrong with Power Point?
        decision      making      on    operational               Why waste time with a simulation, when you can
        management level. For example: traffic                    take your team right out to the shop floor?
        management, material and finished goods                   Learning through games has many benefits.
        handling, supplies, sales, human resources
        management,…                                              Seven Benefits of Teaching Lean with Simulations:
     • Economic games difficult, complex and                      1. Simulations demonstrate Lean principles in
        related to the economic situation,                        action.
        individually and collectively assessed,                   Demonstrating Lean concepts is one of the main
        developing stages in dynamic contexts,                    reasons to use a simulation as a teaching tool.
        often based on model procedures.                          During a Lean workshop, the key material can be
       o the functional business game - consider                  taught, and then illustrated with a simulation or
         the various views on the economic                        game.
         situation, expressing complex character of
         the situation                                            2. Games involve your audience!
       o the general economic game - similar to                   Maintaining your audience’s interest is one of the
         the functional economic game but is                      hardest things to do during training sessions.
         focused on causal relationships and                      Especially when they don't want to be there!
         simulating economic practice
       o isolated economic games - are the                        3. Games are perfect team building activities.
         opposite of the previous modifications, the              Training sessions done at your workplace will
         decision of one group is focused only on a               typically involve people of different departments
         particular area of the economy that are not              and management levels.
         related to other areas
       o integration economic games – mutual                      4. Simulations are small and flexible.
         interaction of economic subjects decisions               Manufacturing and business processes are large and
         with the external environment                            complex. Providing real-world improvement
       o manual economic games - solution does                    solutions within the current business is difficult
         not require technical resources, data and

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within a two-day training session. If it was that easy,           game forces the students to effectively divide the
you would have done it!                                           different manufacturing processes and make the
Simulations are small and compact. They fit into a                appropriate layout. The simulation of manufacturing
room. They can be performed in a quiet training                   processes is done here by folding paper frog model.
room environment, rather than a noisy shop floor.                 Students must divide among themselves the various
They don’t interrupt normal business. They are                    tasks.
short. They are expandable.                                       At the beginning of the game participants are
                                                                  divided to professional workers and inexperienced
5. Games are confidence builders.                                 workers. Inexperienced workers can send their
Your audience consists of many types of people.                   product to next working site every 90s.
Shy, introverted thinkers mix it up with overbearing              Professionals can send over the product every 30
loudmouths.                                                       seconds.
By placing people in roles they are not familiar                  The first round of games is just about building an
with, you can empower them. A shop floor                          effective layout and production testing.
employee can shine while directing the divisional                 The second round simulates the benefits of staff
manager, who’s struggling with the bottleneck                     training.
process. When roles are switched in such a way,                   In the second round of game teams can use profit
managers can see what it’s like to be in the trenches,            from the first round for training of inexperienced
while others can become confident with their new                  employees and thus shorten the time. Training can
responsibilities, even if their factory is just making            be ordered between all rounds of the game.
paper airplanes.                                                  In the third round the variability of demand is
                                                                  simulated.
6. Test real processes with simulations first.                    Teams have 5 colors of paper for folding frogs.
Sometimes simulations are used exactly to simulate                Organizer of the game randomly draw one color
actual processes in your business.                                every 2 minutes that is now preferred on the market.
                                                                  Delivering the preferred color earns double points.
Kanban sizing is a good example. Kanban card                      However the actual production cycle of one frog is
calculations can become pretty confusing once all                 longer than 2 minutes. So before the next round
the factors such as lead times and signal stagnation              tams will have to adopt a strategy. Team can
are considered. Simulating this with pieces of paper              produce to stock and sell only preferred color goods
or on a spread sheet will make things a lot clearer               or not and sell all colors for normal price.
and highlight potential issues before implementing                In the fourth round all of the previous rules apply
into the real world.                                              and there will be a random event for each team.
                                                                  Random events include:
Another example of this would be designing new                         • failure of a key supplier
work cell layouts with papers representing work                        • loss of trained personnel
equipment.                                                             • theft of finished goods from the previous
                                                                            round
7. Give yourself a break!                                              • fire in stock and loss of unfinished
A simulation allows you to break away from                                  products from the previous round
teacher-mode and interact with individuals one on                      • inability training in this round
one. You can relax, joke around, answer questions                      • nothing happened
and have a breather while the teams are interacting
with each other.                                                  There is no new rule in fifth round. This round if for
                                                                  the final competition and the points are doubled in
4.2 Frog Factory game                                             this round to prove which strategy was most
In order to revitalize and improve the attractiveness             effective.
of teaching subject Operational Management the                    After each round there should be at least 5 minutes
authors decided to use game called Frog Factory                   free time for discussion and optimization in team.
taken from portal www.leansimulations.org [5].
This game is intended to simulate the production                  4.3 Benefits of the Frog Factory game
line. A group of students is divided into several                 Based on the evaluation of results and feedback
teams. Each team simulates a factory production                   from trainees is possible to draw the following
line. Individual teams compete against each other                 conclusions and recommendations:
and the goal is to achieve maximum profits. The

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The game certainly enriched the theoretical teaching               have theoretical knowledge but often lack the more
of lean principles and was positively received by all              complex interconnection of such knowledge to real
participants.                                                      situations. The authors therefore recommend an
                                                                   emphasis on enriching the theoretical knowledge of
The authors have good results with letting                         company employees at the general superficial level.
participants to create their own teams and then to                 Trainees from companies are most interested in
reorganize them to force participants to work with                 general courses which demonstrate all available lean
strangers. If it is not a course where the participants            methods. They are interested to be inspired what is
are from one group (classmates, co-workers) is not                 used in other companies and which method can
essential. This was evaluated positively by                        bring benefit and be implemented in their own.
participants at the end of the course because they                 Than they are willing to study selected methods
were forced to work in the new organizational                      deeper.
structure that enabled excel other personalities than              Students on the other hand miss the link between
usual.                                                             theory and practice. This is not a surprising
                                                                   conclusion. The authors recommend greater
                                                                   involvement of students in teaching and recommend
After each round is necessary to leave time for                    an emphasis on teaching the application of the
discussion and subsequent optimization.                            theoretical knowledge. Management games are an
                                                                   ideal tool for students to test the application of rich
The tutor should not advice the participants during                theoretical knowledge obtained while studying at
the course and they should work completely                         the University.
independently even when they chose wrong                           The use of management games as a teaching tool
solution.                                                          was positively assessed by both groups (staff
                                                                   training and students)
After end of the game is necessary to analyze the                  For inspiration, the authors recommend portal
mistakes and successes of all teams in discussion.                 www.leansimulations.org where a number of games
The game simulates very nicely creation of                         for training lean principles is available.
inventories of unfinished products. Although
theories such as JIT says that inventories are wrong               References:
and waste. This is a frequent topic of discussion and              [1] Vožická, M., Využití systémových simulátorů.
is necessary for tutor to be prepared for this                         Jindřichův Hradec : Vysoká škola ekonomická
discussion.                                                            v Praze, 2011. Diplomová práce.
                                                                   [2] W., Biggs., Introduction to Computerized
Another topic for discussion is forecast of customer                   Business Management Simulations. Guide to
requirements (in-game simulated color paper) and                       Business Gaming and Experiential Learning.
therefore the importance of marketing research for                     1990. ISBN: 0-89397-369-6.X1.
manufacturing enterprises.                                         [3] LOKŠOVÁ, I., LOKŠA, J., Tvořivé vyučování.
                                                                       Praha: 2003.
Participants manage quite well the organization of                 [4] Seven benefits of teaching lean. Portal
production but many of them will not be willing to                     leansimulations.org (cited 1.2.2013)
invest in training in the early rounds even though it                  http://www.leansimulations.org/2011/01/seven-
is an effective solution. After they realize they                      benefits-of-teaching-lean-with.html
should invest in training in first round they will still           [5] List    of     free    lean    games.    Portal
refuse to invest to training because it's late and                     leansimulations.org (cited 1.1.2012)
payback period will decrease. It is appropriate to                     http://www.leansimulations.org/p/huge-list-of-
debate the decision-making traps.                                      free-lean-games.html

5 Conclusion
Authors use Frog Factory game for teaching at
University of West Bohemia but also at lean
management courses for private companies. It
turned out that company employees do not have the
theoretical knowledge of lean principles but are
willing and able to respond flexibly to the situation
and try new solutions. Students on the other hand

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