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Debriefing . . . How do you feel now? How did you feel while playing the game? Did you feel yourself controlled by forces in the system from time to time? Did you find yourself “blaming” the person next to you for your problems?

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debriefing
Debriefing . . .
  • How do you feel now? How did you feel while playing the game?
  • Did you feel yourself controlled by forces in the system from time to time?
  • Did you find yourself “blaming” the person next to you for your problems?
  • What is the total cost of your team? Why the large discrepancy between teams? What caused large inventories and backlogs?
  • Did you notice any patterns on your graphs?
slide3
Oscillations

Amplification

Phase

Lag

See?

slide5
The Beer Game . . .

In the Context of the U.S. Economy!

back to the beer game
Back to the Beer Game . . .
  • What or who do you think caused the supply chain dynamics that we observed?

Not uncommon to blame . . .

CUSTOMER!!!

slide9
How could such

a small perturbation in

one part of the system create

such havoc in the

rest of the system?

Over-React?

slide10
Boom & Bust

Phenomenon

YES!!!

reflection and knowledge capture
Reflection and Knowledge Capture
  • What can your team and organization learn from the exercise?
  • Take ten minutes to discuss with your team.
  • Capture 3 to 4 lessons learned.
beer game lessons i
Beer Game Lessons I
  • The structure of any system governs human behavior within the system.
    • Changing people without changing the system structure may not lead to desired or permanent improvement.
beer game lessons ii
Beer Game Lessons II
  • To effectively manage a system a “systems” perspective should be adopted:
    • Realize that . . .
      • Often, . . . a lag between what one observes and what caused that observation.
      • Ripple effects within and across organizational boundaries.
      • Volatility directly proportional to distance from market.
beer game lesson iii
Beer Game Lesson III
  • The amplification in the supply chain is called the “Bullwhip effect.”
  • Suggested Solutions?
    • Improved communication
    • Reduced lead-time
  • What does research and experience tell us?
beer game lesson iv
Beer Game Lesson IV

Characteristics of top Supply Chain performers?

  • Agile: able make quick adjustments in output in response to the market.
  • Adaptable: able to adapt supply chain structure and facilities to changing needs.
  • Alignment: Partners in the supply chain are aligned in their objectives & incentive structures.
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