Tailored simulation game in developing supply chain performance

Abstract

The accelerating rate of change and the increasing uncertainty in the outcomes of change are evident across the whole business arena of today. This uncertainty is the result of the very complex and often inexplicable nature of our environment and the problems within it. Successful organisations are not trying to respond to this challenge by predicting the future, but are developing their ability to continuously lean and adapt to changes in their environment. This ability to adapt requires the organisational ability to learn. The process of developing and implementing games and simulations is one of the most effective approaches in enabling such organisational learning. Games and simulations help organisations develop symbolic thinking and understanding; help them create memories of the future; enable shared experiences and the building of shared intelligence; and, possibly most important, develop their members' motivation and confidence to act. The objective of this thesis is to create a tailored simulation game for a Finnish manufacturing company's needs. The game should work as a training and visualising toll and it should help the company to handle different kind of logistical problems by helping participants to realise the importance of short lead times, supply chain flexibility, on time deliveries and so on. The literature study begins by introducing basic simulation and gaming theory followed by logistics theory concentrating on different issues in supply chain management. This theoretical framework is then accompanied by a general example of development of a logistics simulation. Development of a logistics simulation for this company's needs required a proper understanding of the area it is acting in. After the theoretical part a proper situation analysis of the company's main business area was conducted. At this part issues that affect on supply chain planning and measuring were also discussed. In the case study part a development of a logistics simulation for company's needs was developed. This study is completed with a discussion of the study's reliability, future challenges and a short summary of the results. /Kir10