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15.760B | Spring 2004 | Graduate

# Introduction to Operations Management

### Simulation Exercise

Teams of three students will manage a virtual factory in a Web-based simulation exercise for about one week. The goal of this assignment is to let them adapt and apply concepts from the class in a managerial situation; it will also give them a chance to formalize their own decision models and test their relevance and effectiveness. After the simulation is over, each team will turn in a written report of at most four pages containing:

1. Description of the strategy that was followed, with a detailed explanation of its underlying rationale (description of all quantitative models or reasoning used to come up with this strategy);
2. Assessment of its performance;
3. A posteriori suggestions for improving your performance in this simulation;
4. Description of the most important lessons you learned or insights you gained.

This team exercise is worth 30% of a student’s grade: 20% for the report, and 10% for the simulation performance. Experience demonstrates that advance planning and sound use of quantitative models provide key competitive advantages in this game.

Littlefield Technology Simulation Exercise: Assignment Description

#### Questions

Answers to these questions should be included in the group’s simulation write-up:

1. Describe the strategy that you followed and provide a detailed explanation of its underlying rationale (in particular, description of all quantitative models used to come up with this strategy).
2. Assess your team’s performance throughout the simulation.
3. A posteriori, what could you have done differently to improve your performance in this simulation?
4. (Provide supporting quantitative models and explain your reasoning/rational as appropriate).
5. Describe any lessons you learned or insights you gained in this exercise.

#### Readings

Kumar, Sunil, and Samuel C. Wood. “Littlefield Technologies: Overview.” Stanford University Graduate School of Business.

———. “Managing Capacity and Lead-time at Littlefield Technologies.” Stanford University Graduate School of Business. (Only available to students of the class.)

For more information about these two documents and the related simulation, see the Littlefield Technology simulation Web site.

#### Schedule

A timeline of the exercise is provided in the table below. The actual simulation is conducted over the course of one week.

LEC # | TOPICS | TYPES | KEY DATES
--- | --- | --- | ---

1 | Course Introduction | Lecture |

2 | Burger King and McDonald’s | Case |

3 | Capacity | Lecture |

4 | National Cranberry | Case |

5 | Webvan | Case |

6 | Inventory | Lecture |

7 | Barilla | Case |

8 | Sport Obermeyer | Case |

9 | Production Control | Lecture | In anticipation of the simulation exercise, students must have formed their teams and registered them in the simulation Web page by the end of the day today.

10 | Hewlett-Packard | Case |

11 | The Goal | Book |

12 | Quality | Lecture | In order to familiarize themselves with the simulation game interface and analyze early demand data, students can access your factory online as early as today. Teams will then receive additional customer orders and gain the ability to manage your factory during the actual simulation exercise.

13 | Toyota | Case |

14 | Process Design | Lecture | Special tutorial and Q/A session on the Littlefield Technology simulation exercise Simulation Exercise begins at 6:00 p.m.

15 | Global Financial Corp. | Case |

16 | Supply Chain Design | Lecture |

17 | Product Design | Lecture | Simulation Exercise ends at 6:00 p.m.

18 | Sega Dreamcast | Case | Simulation Write-up for group, containing answers to the above questions, due day after lecture 18

19 | Simulation and Course Wrap-up | Lecture |

## Course Info

##### Instructor

- Prof. Jérémie Gallien

##### Departments

- Sloan School of Management

##### As Taught In

Spring 2004

##### Level

Graduate

##### Topics

- Business
  - Operations Management
  - Project Management
  - Supply Chain Management

##### Learning Resource Types

notes Lecture Notes

Browse Resources

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