MODELING TOTAL QUALITY INTO BUSINESS SIMULATIONS-A DEMONSTRATION- Development In Business Simulation & Experiential Exercises, Volume 18, 1991 158 Modeling Total Quality Into Business Simulations -A Demonstration- Thomas Pray, Rochester Institute of Technology Erhan Mergen, Rochester Institute of Technology ABSTRACT This one and a half-hour session will focus on incorporating Total Quality Management and (TQM) elements into manufacturing-oriented strategy-based business simulations. This session will be composed of five components: (i) an overview of Total Quality Management (TQM), (ii) a framework for modeling TQM into Business Policy Simulations, (iii) summary results of an eight period simulation, (iv) a “live” demonstration of TQM in DECIDE II - A Total Enterprise Simulation with Total Quality Elements, and (v) Summary and open discussion. (i) INTRODUCTION TO TOTAL QUALITY MANAGEMENT (TQM) (15 minutes) Total Quality Management (TQM) is a driving force in industry today. Both profit and non-profit, service- and manufacturing- oriented organizations are striving to improve quality and customer satisfaction. In this portion of the demonstration, the evolution and the key of elements of total quality management will be explored. The need for modeling TQM into strategy simulations will be discussed. (ii) A FRAMEWORK FOR MODELING TQM INTO STRATEGY-ORIENTED SIMULATIONS (30 minutes) In this portion, a framework for modeling TQM into a manufacturing-oriented total enterprise simulation will be explored. The framework involves: o The Demand and the Cost Sides of the Algorithm. o Emphasis on Total Quality Costs - Prevention Cost - Appraisal Cost - Failure - External & Internal. o Two Levels of Play. Level I - Emphasis on Prevention Level II - Emphasis on Prevention & Statistical Process Control (SPC) o Modeling SPC and Acceptance Sampling. o Stable Continuous Improvement Functions. (iii) SUMMARY RESULTS OF AN EIGHT PERIOD SIMULATION (15 minutes) The results of actual game play will be presented in summary form. During the game play the teams were required to make a variety of decisions including: pricing, promotion, product development, customer service, production and labor scheduled, total quality budgets, statistical process control, acceptance sampling, market and economic research, capital investment, material purchase, dividend policy. The analysis shows that a well-thought out and implemented TQM strategy, tied to the overall over strategic plan, will give a firm a competitive advantage. Teams with either overzealous or inadequate TQM strategies failed to remain competitive for the entire eight period horizon. (iv) A DEMONSTRATION OF DECIDE II WITH TQM (15 minutes) The audience, as a group, will have the opportunity to use the decision support package for DECIDE II and make a set of TQM decisions. A computer run will be made, results presented (with a Data Show/ PC Viewer projector), and discussed. (v) SUMMARY AND OPEN DISCUSSION (15 Minutes) During the summary and open discussion further enhancements, as well as the shortcomings, of the model will be discussed. MAJOR REFERENCES Draper, J. & Klingman J., Mathematical Analysis, 1967, Harper and Row: NY. Garvin, D. Managing quality, 1988 The Free Press: NY. Grant, E & Leavenworth R., Statistical quality Control, 1972, McGraw Hill: NY. Table of Contents Volume 18, 1991 Personality Types and Total Enterprise Simulation Performance Using DIS 'n DAT as a Decision Support System for a Marketing Simulation Game Theoretical Derivation of a Market Demand Function for Business Simulators The Ethnographic Case Study: An Experiential Approach to Teaching Retail Management Electronic Bulletin Board Systems (BBS): Support Software for Computer Simulations The New Budget Game Negame: A Cross-Cultural Role-Play to Introduce Students to the Familiarization Stage of Negotiations Modeling Short-Run Cost and Production Functions Using Sheppard's Lemma in Computerized Business Simulations Increasing Simulation Realism through the Modeling of Step Costs Predicting Simulation Performance: Differences Between Groups and Individuals A Facility Location Case to Stimulate Classroom Interaction Educational Effectiveness of Business Simulation Gaming: A Comparative Study of Students and Practitioner Perspective Ethical Dilemmas in Experiential Learning: Issues and Strategies A Critical Review and Assessment of ABSEL's Award-Winning Procedures and Protocols Political Risk: A Simulation for Business Practitioners Upside Down: A Cross-Cultural Game in Experiential Learning Gorby's Dilemma: From Communism to Free Enterprise in Two Hours Strategic Market: Planning with the COMPLETE Product Portfolio Analysis Package: A Marketing Decision Support System Career Concepts and Total Enterprise Simulation Performance Experiential Learning in Human Resources: A Performance Appraisal Application Managerial Motivation and Realism Among MBA Student as Viewed through The Looking Glass, Inc. Simulation An Experiential Approach to Teaching Data Analysis Using MYSTAT: Rationale, Procedures and Results Practicing What Was Preached: A Sequential Learning Model put to the Test Student Attitudes about Policy Course Simulations An Investigation of the Relationship Between Simulation Play, Performance Level and Recency of Play on Exam Scores The Effect of Leadership and Cognitive Processing Styles upon Peer Performance Evaluation: Implication for the Utilization of Simulations in Business Pedagogy On the Transfer of Market Oriented Business Games to Socialist Cultures An Application of Financial Analysis of the Business Firm in a Simulated Competitive Environment Collective Bargaining Simulation: An Exercise based on a Familiar Theme Making Business Policy a Strategic Management Experience A Student Exercise for Intergrating the Concepts of Power and Motivation The Boundaries Extended: An Experiment Comparing Dialectical Inquiry, Devil's Advocacy and Consensus Using the Executive Game Using a Simulation Package to Develop a Simulation Exercise in Cost Accounting Success Factors in Experiential Training for Creative Problem-Solving Teams An Experiential Approach for teaching Quality management Critical Success Ratios: A Comparison of Two Business Simulations in a Multi-Year Environment Stocklogs: A Classroom Exercise for Teaching the Logistical Relationship of Location and Inventory The Organizational Leadership Program Simulating Business Decision-Making: Using Statistical Cases for Classroom Exercises Scripting for the Classroom Upgrading the Business Strategy and Policy Game Developing Student Team-Building and Leadership Skills Using Computer-Aided Experiential learning Strategies Organizing and Outward Bound Field Trip An Architecture for Extensible Simulation Games Performance in the Capstone Business Course: What is the effect of Pedagogy, Learning Styles, and Student Motivation? Operational Strategy with Participant-Modifiable Parameters An Example of a Personal Selling Case Transformed into a Role Play Scenario Instructional Software: It's Evolution and Current State of the Art in the Business Curriculum Ascertaining Performance Variables for use in Determining Student's Grades in Courses Employing a Business Simulation Designing Management Seminars Using Business Simulations The Accounting Information Systems Course: Bridging the Gap between the Classroom and the Real World The Good Cooks Guide to Training Excellence: Working with Passion A Demonstration on Multiple Data Collection Methods: Seeing Strategic Issues Through the Looking Glass Simulation Systems Analysis and Design: Why Undergraduate Education gets a Failing Grade Accommodating Organizational Culture: An Evaluation of Management Development Delivery Modes in Varying Organizational Cultures Modeling Total Quality into Business Simulations The Political Futures Game Meeting Meeting Objectives