Operations Management Simulation: Balancing Process Capacity

A simulation illustrates a fundamental concept in Operations Management and can be used to reinforce key learning objectives in case studies and readings. In this single-player simulation, students explore core concepts of process analysis while acting in the role of a car wash manager. They must allocate a budget for performance improvements across vacuum, machine wash, and hand-dry stations with the goal of maximizing utilization and improving profitability. The simulation includes two challenges. The first challenge assumes the customer arrival rate, representing demand, is constant and helps students validate the principles of Little's Law. The second challenge adds both demand and process variability to illustrate more complex and realistic challenges in running an operation and achieving profitability. This simulation can be used for introductory courses in Operations Management for both MBA and undergraduate students. It is delivered entirely online and requires less than one class meeting for students to run the simulation and discuss the results.