Using Computer Simulation as an Educational Alternative to Hands-On Application Dana M. Johnson School of Business and Economics Michigan Technological University, Houghton, Michigan, USA Email:
[email protected]; Phone: 906-487-2803; Fax: 906-487-2944
Mark A. Johnson School of Technology Michigan Technological University, Houghton, Michigan, USA Email:
[email protected]; Phone: 906-487-1662 Abstract: Internships and cooperative educational opportunities serve as a tool to apply concepts learned in the classroom to on-the-job experiences provided by companies. When universities are “geographically challenged” and do not have an abundance of local or regional companies for hands-on experiential learning avenues, an alternative is to use computer-based simulation. In the operations management field some of the software programs available include Arena, Virtual U, Capstone, and SimCity 4.0 Deluxe with Rush Hour Traffic. These programs were selected because they provide a broad and diverse range of skill sets for the students. The focus of the paper is to identify the differing educational objectives of each simulation, advantage and disadvantages, potential courses, and level of student. Keywords: Computer based simulations, Arena, Virtual U, Capstone, SimCity 4.0, experiential learning
Introduction Experiential learning models are permeating higher education at a rapid rate. The hands-on opportunities sought by students often go beyond the classroom. Some students are able to work part-time with an employer in their chosen career while attending school full-time. However, in some regions of the country and world, especially in rural-based settings, there are limited numbers of employment opportunities available. In lieu of employment opportunities, computer-based simulations offer another venue for providing hands-on experience for students. This dimension of education is an important tool to
preparing students for the workforce. Because many of today’s students have grown up in the MTV and Internet age, it provides them with the stimulus that attracts them to this type of educational experience. The discussion will focus on those computer-based simulations with an operations management focus or flavor. This informational piece is designed to allow potential instructors the ability to be able to differentiate between different learning tools and objectives and better match their course needs and provide an alternative to internships and career related employment opportunities.
Simulations The selection of computer-based simulations was based on the applicability to operations management or related courses. The discussion will focus on providing overview information about each of the four programs: Arena, Virtual U, Capstone, and SimCity 4.0 Deluxe with Rush Hour Traffic. Along with an overview, educational objectives, advantages and disadvantages, potential OM related courses, and academic standing (i.e., junior, senior, etc.) will be discussed.
Arena Overview – Arena Arena is a Microsoft Windows operating system program that has the look and feel that is familiar to most users. The Arena modeling environment provides the basic building blocks to develop, view and execute simulations.
The software is marketed for academics with a
companion text “Simulation with Arena” (Kelton, et al 2004). This text is available and includes a limited student software version that will perform most of the functions required.
Arena provides the user with models that are dynamic using discrete time steps, both stochastic and deterministic input models are available. Arena modeling system is based on the SIMAN/Cinema software packages developed in 1990. The windows interface can still provide the users of SIMAN with the ability to revert to source code in the analysis of problems. Arena has become a very powerful simulation tool allowing the user to interface with most databases to record and analyze both input and output. The graphical interface allows DXF AutoCAD and VSD Visio drawing formats to be imported and used as backdrops. A full suit of pictures can be located in the picture libraries. Arena has several products that complement the basic package which include Factory Analyzer and Scheduler. Both editions allow you to use your developed model to predict performance based on throughput, utilization, profitability and many other key performance indicators. Another addition is Arena’s contact center. This lets you model how your customer interacts via call centers. The more advanced modules allow for integrated decisions taking into consideration cost and financial considerations as well as some of the latest OM applications like lean manufacturing practices, supply chain, and logistics/distribution decisions. Educational Objectives – Arena Using Arena provides the student with the basic building blocks to: •
Understand how to develop a computer simulation using actual or proposed initial conditions.
•
Verify the validity of their simulation
•
Use results of simulation to modify a current or proposed system to deliver the outcomes that are desired.
•
Apply the simulation tool to real-life problems and generate new ideas and methods to
improve current situation actions. •
Understand the importance of accurate modeling, data collection and analysis and how it impacts the organization.
•
Develop a graphic model that can demonstrate both current and future situation and is easily understood by those not involved in the simulation code.
Advantages – Arena There are several advantages to using Arena: •
Provides Windows based functions and fairly easy to use, on the surface may seem intuitive.
•
Provides many canned functions that fit most data distributions.
•
Drop and drag function and templates allow the user to build and understand models quickly
•
Provides graphic interface allowing use of DXF and VSD drawings as interactive backdrops.
•
Includes companion text with examples and broad range of application ideas and methods
•
Offered at minimal cost for students, cost of text (software included).
•
Applies to both an individual or team-based user(s).
Disadvantages - Arena There are several disadvantages using Arena: •
Student version limited to queue lengths of 100 and many of the companion options not available.
•
Some functions are difficult to understand, written with programmer mentality.
•
Run time errors difficult to diagnose or require substantial experience.
•
Software bugs require patches.
•
Requires excessive preparation and has a steep learning curve for the instructor.
•
Must be taught in a computer lab.
•
Help available through E-mail, normally solution found before company responds.
Potential Courses – Arena This program has potential to be used in courses covering the manufacturing process and service sectors operations. Arena provides enough material that an entire semester can be utilized to deliver the basics. The companion text provides a fair method using a straightforward, tutorial approach. Academic Standing - Arena This could be used as both an entry level course as well integrated into graduate work to model process analysis and improvement.
Virtual U Overview – Virtual U Virtual U computer-based simulation was developed through a funding grant provided by the Alfred P. Sloan Foundation and developed by Jackson Hole Higher Education Group, Digitalmill, and Enlight Software. Many of the computer-based simulations available today are based on manufacturing. Some of the other simulations are process-based and are not industry restricted.
There are more manufacturing than service related applications. Virtual U is a
dynamic simulation focused on running a college or university. It takes into consideration a multitude of stakeholders including faculty, administrators, students, governing boards, and parents.
“Virtual U is a powerful, user-friendly computer simulation that introduces users to the complexities of running a college or university and promotes thinking about colleges and universities as systems. Virtual U is a computer game that simulates the university environment while simultaneously guiding users through problem-solving scenarios. Virtual U targets both the institutional professional and the interested layperson to participate in leadership challenges in a college or university setting (Rainwater and Salkind, 2000, p. 1).”
The simulation decisions can be made by a team or individual students. This simulation offers students the ability to see how a college or university is run, along with key decisions made by a university. The focus can be placed on university and/or departmental decisions. Priorities can be set regarding research and teaching requirements for the faculty. Key operations management issues that are addressed include operations strategy, resource allocation, enrollment management (capacity management), product/service offerings, educational
quality,
and
facilities
management.
Other
decisions
address
fiscal
management/budgeting, hiring and firing decisions, investment/endowment management, and library/information technology, to name a few. Virtual U models the attitudes and behaviors of the academic community in five major areas of higher education management: • Spending and income decisions such as operating budget, new hires, incoming donations, and management of the endowment; • Faculty, course, and student scheduling issues; • Admissions standards, university prestige, and student enrollment; • Student housing, classrooms, and all other facilities; and • Performance indicators. (Virtual U 2004)
Educational Objectives – Virtual U Using the simulation as a part of a course requirement or as the sole basis for the course, will allow students to: •
Understand the applications of operations strategy and how it is integrated with other disciplines.
•
Run a college/university and make all decisions.
•
Understand the interrelationship between operations management decisions and other areas of business with emphasis on fiscal responsibility.
•
Operate within budget constraints established by administration and governing boards.
•
Using problem-solving skills to best manage different scenarios.
•
Utilize analytical skills to aid in conducting informed business decisions
Advantages – Virtual U There are several advantages to using Virtual U. The advantages are to: •
Provide hands-on experience using common scenarios and problems experienced by college and university administrators.
•
Provide statistical information that can be used for more advanced operations management applications like multivariate analysis.
•
Allow for individual or team users.
•
Provide an educational experience using a similar model to the SimCity game.
•
Allow users to gain broad understanding of managing an institution of higher education.
•
Make available a set of non-financial performance indicators to manage the operations and judge overall success.
•
Provide updates at the website.
•
Download software from the development website for free and can purchase documentation at a minimal cost, if you want a physical copy.
•
Understand the mechanisms of running a college or university and provide an interesting forum for students who hear about it from faculty and staff.
Disadvantages - Virtual U There are several disadvantages to using Virtual U. A list is provided below. •
May require some knowledge of an educational institution.
•
Limited to using on a personal computer; it is not a web-based simulation.
•
More complex than some of the manufacturing computer-based simulation programs and a greater learning curve for the instructor.
•
May be more logistically challenging to use on a single personal computer as opposed to a web-based or network based simulation.
Potential Courses - Virtual U It would be useful in both an operations management program or as an operational course in a public administration program of study. It could be used as a supplement to a course but not as a standalone offering. This could be used as a segment of the course. It would be a great tool to use for a service operations course at the upper level undergraduate or graduate level. It could be used as a part of a mixed operations management that visits both manufacturing and service applications. This is an outstanding tool that should be a part of a seminar series for higher education administrators so they gain a systemic view of the operations of a college or university. Colleges and universities may not experience some of their problems if the administrators better understood what was going on and used a common set of performance measures. Academic Standing - Virtual U This is should not be used at an entry level course. It would work well beyond the second year of higher education as it requires some fundamental understanding of business concepts.
Capstone Overview - Capstone Capstone business simulation is an Internet-based dynamic simulation that was developed by Management Simulations Inc. The computer based simulation has been in existence since 1986. This is the team-based version of the simulation. There are four key areas student teams make decisions: Production, Research and Development, Marketing, and Finance. There are four advanced modules: Labor Negotiations, Total Quality Management/Process Management, Advanced Human Resources, and Advanced Marketing. Although it focuses on multiple business decisions, the emphasis can be placed on the operations management aspects of running a business. Even with emphasis on OM, students gain an appreciation and understanding for the interdisciplinary nature of running a manufacturing business. Often students become isolated in their particular major (i.e., accounting, OM, etc.) without fully gaining an understanding of the other key business or functional areas of an organization. Providing exposure to management decision making allows students to appreciate the impact their decisions have on other areas of the business. The holistic and systemic approach to decision making provides experiential learning and hands-on application. “At the beginning of each simulation, each company generates $100 million in sales. There are no outside competitors or product substitutes. The products are sensors, devices that sense the environment. The emerging sensor industries include security applications, biometrics, and genetic testing. The customers put the sensors into the products they manufacture. The customer desires small sensors (i.e., nanotechnology) and higher performance (i.e., increased sensitivity and speed). Over time, the customer expects smaller, more powerful products (Capstone, 2004).”
There are several areas of operations management that are addressed by the simulation. These include decisions related to product design and development, process improvement, total
quality management, operations strategy, inventory management, productivity, capacity planning/management, and automation levels. Educational Objectives – Capstone Using the simulation as a part of a course requirement or as the sole basis for the course, will allow students to: •
Understand the practical applications of operations strategy/management and how it is integrated with other business disciplines.
•
Run a manufacturing business and make all decisions.
•
Understand the interrelationship between operations management decisions (i.e., production, research & development, and TQM/Process Management) and other areas of business.
•
Operate in a competitive environment competing for the same customers.
•
Meet the customer’s buying criteria by making investments in products and processes.
•
Utilize analytical skills to aid in conducting informed business decisions
•
Apply your problem solving, team building, and communication skills.
Advantages – Capstone There are several advantages to using Capstone. The advantage allows users to: •
Access through Internet connection. It does not require installation on a personal computer. Students can access from home, work, library, or any other location.
•
Apply to distance learning models. Work in a virtual environment is supported.
•
Integrate with other functional areas of a business.
•
Apply concepts learned in core business courses.
•
Use a team-based approach to decision making. The human element is an important
aspect. •
Simulate closely to the real world competitive environment.
•
Provide students with competitive data and a wealth of information to make well informed business decisions.
Disadvantages – Capstone There are several disadvantages to using Capstone. These include: •
Applies fundamental concepts of operations management and other functional areas but does not directly provide advanced application of operations management techniques.
•
Requires that some students have a fundamental understanding of other areas besides operations management. In forming teams, it is important to have a mix of backgrounds to give the student teams the greatest opportunity for success.
•
Requires an instructor knowledgeable in the multiple disciplines addressed in the simulation. Based on experience, not all faculty can use this simulation.
Potential Courses – Capstone The potential courses would be advanced operations management and operations strategy. One of the authors has used the simulation in an operations strategy course. The simulation could be used as a basis of a course with supporting exercises, activities, and supplemental readings. Academic Standing - Capstone The simulation is best used in an upper division course (i.e., juniors, seniors) or at the graduate level. Although not required, it is helpful to have some fundamental business courses or business experience prior to taking a course using the simulation. The simulation can also be used in a non-academic environment for business practitioners as an educational tool for gaining a comprehensive and integrative understanding of the
management decisions made by a manufacturing company. The course would appeal to business and engineering students, specifically industrial, manufacturing, and mechanical.
SimCity 4.0 Deluxe with Rush Hour Traffic Overview – SimCity 4.0 Deluxe with Rush Hour Traffic Although many likely think of SimCity as a game played by teenagers, there are excellent educational opportunities associated with this software package. There are many versions of SimCity, and some that are definitely not appropriate for the classroom environment. SimCity 4.0 Deluxe can include the Rush Hour Traffic module. SimCity allows you to manage all aspects and operations of a city within limited budget constraints. There are a multitude of choices a student can choose from, and at times it can be a little overwhelming. The basic philosophy behind SimCity is to think locally. It is a game about building an entire city and being a good manager (Mayor). There are a multitude of tools which allow you to create a town, develop zones, offer basic services, expand the city, provide a better quality of life, develop businesses, and control density and efficiency. There are three kind of Sims: Residential, Commercial, and Industrial (Kramer 2003). There are numerous operations management decisions that need to be made. Capacity management involves managing the different type of Sims building development. Capacity management will also involve managing the workforce and business. Zone densities and zone balancing are important relate to facility layout and location decisions made in operations management. Another growth area in OM is environmental management (EM). EM decisions are impacted by the ordinances focused on reducing global pollution and are regulated by local,
state, and federal compliance such as the Clean Air Act. Such programs as paper waste reduction management and tire recycling program are important decisions.
Other issues are utility
planning, public safety, transportation, education, health, recreation, landmarks, and dealing with disasters. The simulation is unique in that it offers a broadened view of typical operations management decisions by focusing on construction and city planning, along with service offerings. There are budgetary and fiscal restrictions, along for a more integrated approach to operations management. The community considerations are important too. Although the tax base is likely to be stronger when there is industry and casinos, it may not necessary be appealing to the residential neighbors. Educational Objectives – SimCity 4.0 Deluxe Using the simulation as a part of a course requirement or as the sole basis for the course, will allow students to: •
Understand the OM decisions associated with designing, developing, and planning a city and relate the concepts to traditional OM product and service design and process development.
•
Learn the importance of fiscal and cost management associated with making OM decisions.
•
Balance the need to develop a tax base along with providing an environmental and community focus.
•
Integrate the OM decisions with other decisions made for planning a city and apply a more holistic approach to operations.
•
Apply the traditional components of OM to the planning, developing, and managing of a
city entity. Advantages – SimCity 4.0 Deluxe There are several advantages to using SimCity 4.0 Deluxe. The advantage allows users to: •
Provides an opportunity to apply OM concepts using a non-manufacturing based simulation.
•
Stimulates traditional students that have grown up in the MTV and Internet age with a dynamic and fun environment to learn about OM.
•
Gives students the opportunity to face tough decisions regarding OM management and ethical choices they may be faced with environmental management issues.
•
Provides a tool to allow students to make sure they are fiscally responsible when making OM decisions.
•
Allows for basic to complex development decisions, depending on whether the simulation is used as the focal point of the class or as a supplemental tool.
Disadvantages - SimCity 4.0 Deluxe There are several disadvantages to using SimCity 4.0 Deluxe. •
Perceived as a game instead of an educational tool for applying OM concepts. Because students are used to playing computer-based simulation games, it requires that a structured program of study is developed to avoid the pitfalls of being “just a game”.
•
Cannot obtain a site license and must be installed on individual computers. It is not portable from one computer to another.
•
It is not Internet based, limiting usability to a single-user computer.
•
Geared more towards the individual user than team-based.
Potential Courses - SimCity 4.0 Deluxe The simulation could be used in a multitude of OM related courses, either in business or engineering. In business, it could serve as the focal point for a course in operations strategy or as a supplemental educational tool in an advanced operations management course. It could also be used
as
either
the
focal
point
or
educational
supplement
for
a
transportation
modeling/management/planning course in Civil Engineering. These are a few examples and there are unlimited possibilities with this package. Academic Standing - SimCity 4.0 Deluxe The simulation would work best for upper division and graduate students. It would appeal to a Transportation Planning and Management course offered as a complement to graduate level masters program in business. Although it has a strong operations management focus, it would be appealing to business majors as well as civil engineering. It has a strong interdisciplinary flavor without forgetting about cost and budgetary constraints. Discussion This informational paper provides some examples of computer-based simulations that will allow students to experience the real-world without working with a real company. The “risk free” environment allows students the opportunity to make mistakes while using “someone else’s” money. However, it also shows the students the importance of systemic thinking and decision making. There are a multitude of simulations available to enhance the experiential learning opportunities for students. Because most students possess computer skills, using more senses, enhances the learning experience. Students completing courses using computer-based simulation have commented on how they were able to make better informed business decisions because of
the wealth of information available. Because there is large amounts of data, students need to determine which data is most important and realize all data may not be necessary or available to make good business decisions. When exploring computer-based simulation packages, there are several questions that need to be considered prior to making the selection: Course Related Questions 1.
Will the simulation enhance the learning experience?
2.
Is it congruent with the course objectives?
3.
Can it serve as a standalone, focal point of the course or should it be used as a supplemental educational tool?
4.
What is the learning curve for the instructor?
5.
What is the learning curve for the students?
6.
Will the students perceive this as an extra and not take it seriously?
7.
Will it be perceived as a “game” and not viewed as an educational tool to apply concepts from the course or prior courses?
8.
What is the cost for implementing?
Systems Related Issues 9.
How frequently is the software updated?
10.
What other universities are using this software and for what courses?
11.
Are technical support resources available for the instructor and/or student? How responsive are they to requests?
12.
Is the software Internet-based, single-user, or multi-user?
13.
Does your department have systems administration assistance?
14.
Do you have the space available on stand-alone computers?
15.
Do students have access to the necessary information technology? Answering these basic questions will improve the chances of selecting a computer-based
simulation that fits the educational needs of your course along with providing a hands-on, experiential component in lieu of real life company experience. Conclusion The authors have successfully used a few of the packages and received rave reviews from students who have taken the courses. Because we are geographically challenged, the application orientation provides students with a much needed and desired experience. It allows the students to get off to a running start when they pursue their chosen careers. There is an initial time investment required of the instructor choosing to use computerbased simulation as a part of their courses. There is also a time commitment required during the course offering that some instructors may find unappealing. It definitely requires more time than traditional instructional methods. However, the authors have felt a sense of accomplishment when students “learn” the concepts and practices and continue to remember them well beyond the end of the course.
For those instructors dedicated to using the latest and greatest in
pedagogy, then computer-based simulation is for you.
References Arena Academic Version 7.01.00 for Simulation with Arena, 2003, 3rd edition, Sewickly, PA: Rockwell Software. Capstone (2004). Capstone® Team Member Guide 2005. Northfield, IL: Management Simulations, Inc.
Kelton, D. W., Sadowski, R.P. and Sturrock, D.T. (2004). Simulation with Arena. New York, NY: McGraw-Hill. Kramer, G. (2003). Prima’s Official Strategy Guide: SimCity 4 Deluxe Edition. Electronic Arts Inc. Rainwater, T.M. and Salkind, N. (2000). Virtual U: The Strategy and Technical Guide. The Alfred P. Sloan Foundation, JHHEG, and Enlight Software. Virtual U. (2004). New Virtual U Home, http://www.virtual-u.org/, accessed 2/18/05.
