A Simulation Game Approach for Efficient Education in Enterprise Resource Planning Systems

Heimo H. Adelsberger, Markus H. Bick, Uwe F. Kraus, Jan M. Pawlowski Information Systems for Production and Operations Management University of Essen D-45141 Essen Germany {H.Adelsberger|Bick|UKraus|Jan.Pawlowski}@wi-inf.uni-essen.de

KEYWORDS
Simulation Game, Enterprise Resource Planning System, SAP R/3, Learning Environment

1 INTRODUCTION
In the last few years a rapidly increasing number of enterprises have implemented Enterprise Resource Planning (ERP) systems. This class of systems provides a software architecture, applications, and databases supporting business functions like production, logistics, finance, and human resources. An ERP system consists of a companywide data repository interacting with specific applications in order to represent, process, and store business transactions. The universal usability of ERP systems leads to their enormous complexity. This results in specific requirements for corresponding educational processes. Traditional teaching methods, such as Drill & Practice, are not suitable for efficiently learning the handling of ERP systems. Newer didactical methods for complex learning contents focus on practiceoriented, situated, and co-operative learning [Rohn 1992]. We will present an approach using Simulation Games

ABSTRACT
Enterprise Resource Planning Systems like SAP R/3 provide a software architecture, databases, and applications to support business functions. The universal usability of ERP systems leads to an enormous complexity. This results in specific requirements for corresponding educational processes. This paper shows an integrated approach of combining traditional learning methods with newer practice-oriented methods, especially Simulation Games. The presented approach will bridge the traditional gaps between education concerning managementoriented and manufacturing-oriented software.

for learning the handling of ERP systems. This approach focuses on a practice-oriented education which will significantly improve the quality of basic as well as advanced education compared to traditional methods. In the first part of this paper we present basic concepts of computer based Simulation Games. We will demonstrate the suitability of this method for a practice-oriented education in ERP systems. Secondly, we introduce the basics of ERP systems, especially the SAP R/3 system. We describe the model factory MURSH-Bikes developed in our department for practice-oriented training. Furthermore, we present a concept of a Simulation Game applied for educating business students at the University of Essen. We aim at the education in production planning based on a model bicycle company. The business processes of this company are implemented in SAP R/3 whereas the actual manufacturing processes are modeled using ARENA. Combining those components we operate a realistic company. The instructor uses the simulation component as a tool for generating problem cases for the Simulation Game. These problems are analyzed, processed, and the results are evaluated by students using the SAP system. The presented implementation is applicable to education on both, user level and the more complex customizing level. We emphasize the improvement of quality in education caused by the connection of ERP systems and simulation. We conclude with a summary of the relevant research results and an overview of further opportunities in this field of research.

2 BASIC CONCEPTS
In this section we introduce the basic concepts used in the presented educational approach. We show how the didactical method of Simulation Games can improve university education in the field of Enterprise Resource Planning Systems. Furthermore, we describe the model factory MURSH Bikes which is used as a training environment.

2.1

Simulation Games

In this section we will explain the concepts of Simulation Games from a didactical perspective. A Simulation Game is an active teaching/learning method for processing and solving practical problems by one or more teams. It allows experimental, competitive learning (action learning). Simulation Games consist of two components, a description and a simulation model. The description is an introduction to the game, i.e., to the situation, basic rules, team structure, and various options. The introduction might be realized by means of multimedia, e.g., a video sequence, based on the Anchored Instruction concept. The second component is the simulation model. Finally, an evaluation component determines the performance of each team. The success of the teams is measured by this evaluation component, leading to a competition among the teams, increasing the students motivation to carefully work on their tasks. The Simulation Game might be performed manually or computer supported. A moderator leads the Simulation Game, co-ordinating team building, and the problem oriented coaching for the participants. Furthermore, he presents the environment and its changes during the game. His essential

didactical task is to adequately combine the Simulation Game and other teaching contents, e.g,. an existing lecture [GIMA 1999]. The essential pedagogical goal of the Simulation Game method is to increase the students thinking flexibility [Geuting 1989]. The participants of a Simulation Game work on realistic problems and tasks in a training environment. This leads to experiences and insights of complex realistic problems. Referring to Kolbs Experiential Learning Model [Riis et al. 1995] which describes the human learning process, experiences in Simulation Games resemble experiences in real life. The main advantage is that time between certain events can be controlled and adapted, accelerating the learning process. Simulation Games are not limited to teaching cognitive learning goals. Moreover, skills like decision making, communication, and networking are implicitly promoted [Geuting 1989]. As a conclusion, we would like to summarize the important design issues of a Simulation Game: the realistic simulation model, the competition amongst the participants, planning and carrying out decisions, the role of computer support, and the moderators role.

consistent database enables the execution of all business processes. The SAP R/3 system is the worldwide most installed ERP system. It consequently pursues the concepts of distributed, enterprise-wide information processing. 2.3 MURSH-Bikes

Our department designed and implemented the model factory MURSH-Bikes. The information processing of the factory is realized in the SAP R/3 system whereas the production processes are modeled in the simulation system ARENA. Combining these components we simulate a realistic factory to provide a practice-oriented training for graduate students. The model factory for the SAP system covers the whole chain of logistics. It contains business functions like order-entry, billing, financial accounting, and financial analysis of a mid-sized enterprise. The model factory consists of the following departments: sales/distribution, production planning, production control, purchasing, and financial accounting. The model company produces various types of bicycles differing in the combination of several standard components. The layout and the production processes of the model factory MURSH-Bikes are derived from a real bicycle manufacturer. The factory is divided in several subsections and storages. Each subsection consist of various workstations. Figure 1 shows the layout of the production process. The subsections of MURSH-Bikes are: Receiving, Frame Welding, Paint Shop, Spoke Fitting, Intermediate Storage, Assembly, and Shipping.

2.2

Enterprise Resource Planning Systems

Enterprise Resource Planning (ERP) Systems can be defined as: [...] a client/server application that is designed to co-ordinate and act as an information resource to an entire organization or enterprise [Clewett et al. 1998]. ERP systems are implemented in a distributed environment. An enterprise-wide

3.1

Concept

In the following we will present the didactical concept and the role of the Simulation Game. During the SAP course for graduate students, the following objectives are pursued in the order below:
Fig. 1: Layout of MURSH Bikes

understanding and evaluating basic concepts of the ERP and SAP R/3, handling of the SAP system at the user level, understanding and applying the customizing process, ability to take management decisions and understanding their consequences for the manufacturing process.

The simulation model is implemented in ARENA, a simulation system based on the simulation language SIMAN. ARENA provides a graphical user interface to vividly visualizing manufacturing oriented processes. In order to enable the developer to generate new cases for the Simulation Game, an easy adaptability is vital for such a system. ARENA allows the modeler to easily adapt existing models to new or changed production situations like capacity/staff changes. Different production strategies can also be implemented by minor changes to existing models.

To achieve the above mentioned goals we developed a didactical concept, combining traditional and recent didactical methods: Introduction: The SAP course starts with an introduction into the system, explaining the architecture and design concepts by several presentations. Afterwards, the application of those concepts, the workbench, and system tools of the SAP system are demonstrated. This phase concludes with a discussion, analyzing and evaluating the ERP concept. Case studies: After the general introduction, several teams work on case studies for specific departments, i.e., Production Planning, Materials Management, Sales, and Finance & Controlling. These departments correspond to the SAP specific modules. In this phase, simple isolated tasks have to be solved to become familiar with the system and its structure. The handling of the workbench and tools is trained. In this way we use a learning-by-doing

3 A SIMULATION GAME FOR ERP SYSTEMS

In this section we explain the Simulation Game approach for the student education in the area of ERP systems. First of all we present the didactical framework, in which the Simulation Game is used. Then we describe two stages of the Simulation Game, using the model bicycle factory MURSH-Bikes in order to train students on realistic complex problems.

approach to experiences.

gain

first

practical

Depending on the available time frame, results of the introductory case studies are either presented from each group to the other participants, following a modified Jigsaw concept [Paulsen 1995]. The Jigsaw concept is a group learning method, aiming to efficiently exchanging knowledge or experiences between several teams. Another option is to repeat the case studies with changed roles. Simulation Game: The conception and implementation of the business game for the ERP system SAP R/3 currently cover two systems for business processes and manufacturing processes. The business processes are based on the model bicycle factory MURSH-Bikes, implemented in the R/3-system. The manufacturing processes are performed in an external simulation model, implemented in a simulation system. The two systems are connected using standard interfaces of the SAP-system. The intention of combining the model factory MURSH-Bikes with an external simulation model is to minimize the divergence between a real factory/enterprise and a model factory/enterprise. The simulation substitutes the real production process and thus takes over the function of the plants data control. Within the Simulation Game, two levels are implemented. The user level focuses on the basic handling of the SAP system. The customizing level covers different operational and conceptual decisions, and furthermore, applying, analyzing, and evaluating production planning concepts and manufacturing methods. On the user level, students are trained on general tasks of every module to avoid specialization and to present a

survey of the whole system and its complexity. Firstly teams are built which are assigned to two stations: production planning, and sales/distribution. These stations correspond to the modules of the SAP system. The tasks of the remaining stations (production control, purchasing, and financial accounting) are assigned to those two stations to avoid specialization and to increase the understanding of the whole process of value creation. The moderator takes the role of customers, suppliers, and directs the manufacturing processes. The simulation system provides actual data about the actual production processes. This information is transferred back to the SAP system. After finishing the game, students and moderator reflect the games experiences in a discussion, identifying problems during the game, and evaluating the participants performance. The advanced customizing level is far more complex: In each SAP module, up to 5000 parameters might be set. Hence we focus on the education of customizing the production planning module. Strategies for two main areas have to be determined by the participants: Firstly, students need to decide on strategies for the rough planning in marketing and production (SOP, Sales and Operations Planning). Secondly, a strategy for production program planning has to be determined. After a presentation of selected strategies, the participants have to implement those in the SAP system. Therefore, the simulation model has to be adapted to the corresponding strategy. Then a simulation run for the chosen strategy is executed, providing information about the effects to the factorys performance. This results serve as a base for evaluating each decision. The

teams discuss the results, supported by the moderator. The moderator supports the students concerning common problems and errors, and for the sensitivity towards critical decisions. Using the simulation, students can immediately comprehend and analyze the consequences of their decisions. Therefore, the complex parameter setting of the SAP system becomes more transparent, providing a direct relation between decision and result. Furthermore, the students gain a deep understanding of the relation between management decisions and actual manufacturing processes.

communication skills, and complex thinking are promoted implicitly. The presented approach will bridge the traditional gaps between education concerning management-oriented and manufacturing-oriented software, as well as between theoretical and practical knowledge. Therefore, it will improve the quality of education in industry as well as at universities. However, especially on the customizing level, we have realized only selected areas. Further research is needed to broaden the decision alternatives, implementing simulation models for other management strategies and concepts. Furthermore, a complete coupling of the systems can be implemented using the above mentioned interfaces. On the one hand, the simulation system could be derived from specifications from the SAP system. On the other hand, the simulation model could be utilized by the SAP system to faster implementing and evaluating new manufacturing concepts.

4 CONCLUSION AND FURTHER

RESEARCH

In this paper we focused on two main aspects. Firstly, we have demonstrated how the theoretical university education can be significantly improved by using Simulation Games for understanding strategies, concepts, and the handling of ERP systems. We presented how a Simulation Game can be embedded in a didactical framework, combining traditional and recent didactical methods. The central component of the Simulation Game is a simulation model, implemented in ARENA. Using this system we enable students to solve practical problems in a realistic training environment. The simulation focuses on production planning and manufacturing, the corresponding business functions are processed in the SAP system. To reduce the complexity of the Simulation Game, we divided the game into two parts, user level and customizing level. Therefore, students approach the complexity of the system incrementally. Furthermore, noncognitive skills like team work,

5 BIBLIOGRAPHY
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[Grob 1999] Grob, Hein L.: Ereignisorientierte Planspiele. http://www-wi.unimuenster.de/aw/plans/planspiel, download 1999-01-22. [Paulsen 1995] Paulsen, Morten F.: The Online Report on Pedagogical Techniques for Computer-Mediated Communication, NKI, Oslo, 1995. [Rohn 1992] Rohn, Walter F.: Simulation Praxis am Modell erlernen. In: Graf, J. (Ed.): Planspiele - simulierte Realitten fr den Chef von morgen. Gabal, Speyer, 1992, pg. 19-28. [Riis et al. 1995] Riis, Jens O., Johansen, John, Mikkelsen, Hans.: Simulation Games in Production Management - An Introduction. In: Riis, Jens O. (Ed.): Simulation Games and Learning in Production Management. Chapmann & Hall, London, 1995, S. 3-25.