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?

Typical Beer Game ResultsTypical Beer Game Results

Typical Beer Game ResultsTypical Beer Game Results

Back to the Beer Back to the Beer Game . . .Game . . .• What or who do you think caused the

supply chain dynamics that we observed?

How could sucha small perturbation in

one part of the system createsuch havoc in the

rest of the system?

Reflection and Knowledge Reflection and Knowledge CaptureCapture

• What can your team and What can your team and organization learn from the exercise?organization learn from the exercise?

• Take ten minutes to discuss with Take ten minutes to discuss with your team.your team.

• Capture 3 to 4 lessons learned.Capture 3 to 4 lessons learned.

Beer Game Lessons IBeer 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 IIBeer 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 IIIBeer Game Lesson III• The amplification in the supply chain

is called the “Bullwhip effect.”“Bullwhip effect.”• Suggested Solutions?

Improved communicationImproved communicationReduced lead-timeReduced lead-time

• What does research and experience tell us?

Beer Game Lesson IVBeer Game Lesson IVCharacteristics of top Supply Chain

performers?Agile:Agile: able make quick adjustments in

output in response to the market.Adaptable:Adaptable: able to adapt supply chain

structure and facilities to changing needs.Alignment:Alignment: Partners in the supply chain

are aligned in their objectives & incentive structures.