Applying Performance Measures And Process Improvements In The Classroom: The Loch Dots Company Simulation

The article describes a multi-phase, in-class simulation that employs problem-based learning to teach operations and process-improvement concepts as part of an undergraduate or graduate business course. The simulation is derived from a corporate Lean Six Sigma training activity and has been modified to introduce, demonstrate, and apply a wide range of business concepts relevant to operations and supply chain management, including the use of operational and financial performance measures in decision making. The activity is scalable for small- to medium-size classes with multiple student groups and may be deployed as a stand-alone, in-class exercise spread over several class meetings or incorporated into a larger, semester-long process-improvement project for multiple student groups. The simulation emphasizes problem-solving, teamwork, and intra-firm cooperation in addition to 20-30 other business concepts, tools, and measures that may be incorporated.