Simulation Games based Technology and Management Innovation Centre (SGTMIC)

Grant Proposal1 by Dr. A. K. Mittal, Dr. B. V. Phani, Dr. Deepu Philip, Dr. Peeyush Mehta
September 20, 2011

Department of Industrial & Management Engineering

This is a collaborative proposal

Synopsis
Simulation Games based Technology and Management Innovation Centre (SGTMIC) is aimed at supporting learning and research activities on various complex systems of systems through simulation based games. When fully functional, SGTMIL will support interdisciplinary activities between various functional areas of engineering and management departments of IIT Kanpur; where complex systems will be simulated using advanced simulation and modeling technologies to create a game based learning and research environment. This setup will then allow for interactive and real time learning through competitive and cooperative gaming interactions between and within the group involved in the activity. This lab will promote activities of students and researchers alike, where creating a simulation based gaming application to study any complex engineering, technology, and management systems is necessary to better understand the system. Similarly, for better teaching and learning of different functional areas of engineering and technology concepts; especially for complex systems that have multiple interacting sub-systems; an interactive game based environment will make the teaching learning process much more involved and interesting.

Table of Contents
............................................................................................................................1 Department of Industrial & Management Engineering........................................1 Synopsis..............................................................................................................2 1.0 Proposal Details.............................................................................................4 2.0 Introduction...................................................................................................5 3.0 Current Activities...........................................................................................6 3.1 Virtual Entrepreneurship ...........................................................................6 3.2 Virtual Production Shop..............................................................................8 3.3 The Loan Bank............................................................................................8 3.4 Product Ideation Game...............................................................................9 3.5 Other Systems............................................................................................9 4.0 Operational Statement................................................................................10 4.1 Student Participation................................................................................10 4.2 Governing Structure.................................................................................10 4.3 Requirements...........................................................................................11 5.0 Timeline.......................................................................................................11 6.0 Deliverables.................................................................................................11 7.0 Project Budget.............................................................................................12

1.0 Proposal Details

Proposal type: Funding Agency based Grant Proposers' details:

Dr. A K Mittal, Professor, Industrial and Management Engineering (IME) Department, Indian Institute of Technology Kanpur Kanpur- 208016

Dr. B V Phani, Associate Professor, Industrial and Management Engineering (IME) Department, Indian Institute of Technology Kanpur Kanpur- 208016

Dr. Deepu Philip, Assistant Professor, Industrial and Management Engineering (IME) Department, Indian Institute of Technology Kanpur Kanpur- 208016

Dr. Peeyush Mehta, Associate Professor, Industrial and Management Engineering (IME) Department, Indian Institute of Technology Kanpur Kanpur- 208016

2.0 Introduction
Many functional engineering and management systems today are complex and thus hard to understand and as well as teach on a daily basis through classroom lectures, cases, videos, etc. In fact, many complex systems have both engineering and management concepts so strongly interleaved such that it has become quite critical for an engineering student to understand the underlying management aspects of such systems to really come in to terms with the system. Especially, people who are prospective entrepreneurs, bankers, innovation scientists, supply chain managers, process engineers, manufacturing technologists, etc; in-depth and clear functional understanding of systems is a must; as many a times their decisions are influenced by the level of understanding on the behavior of the system. Recently, complex systems are being studied using the sophisticated tool called computer simulation, where a model of the system is simulated under specific conditions to mimic the real time behavior of the system; thus evaluating the systems numerically. Specific computer applications are necessary to create such system models. These models can be designed in such a way that they become interactive and collaborative, which along with the real time mimicking of the system allows for a virtual hands-on experience of the reality. Simulation Games based Technology and Management Innovation Centre (SGTMIC) is aimed at developing holistic simulation models along with innovative solutions and tools for different systems that can be studied using games. SGTMIC will support research activities in design, modeling, monitoring, control of complex systems (systems of systems), and its operations and management to create game based scenarios that are dynamic in nature. The dynamic simulation games are designed in such a way that the games are played in a learning group environment. The learning group can be students of a course, corporate managers trying for better hands-on training, a group of prospective entrepreneurs eying to gain experience before actually starting a company, and so on. If simulation games are designed such that the behavior of the learning group automatically decide the course of game (game scenario), then the burden of generating multiple scenarios for modeling system behavior is removed. Thus, the gaming engine plays the role of a neutral facilitator of collaborative intragroup and competitive inter-group setting and as well as impartial evaluator of the participants. The interface and the database management system ensure the other gaming conditions. Through various on-going researches, we were able to create such an engine, or at least a very robust prototype of such an

engine and a very scalable framework of how to develop and deploy such games over a gaming engine. Thus, we envision a collaborative space where students, researchers, and interns can all come together and work towards developing simulation based games to study complex concepts of technology and management. Some specific case-and-points of interest are virtual entrepreneurship, virtual banking, virtual stock market, virtual supply chain, virtual process reengineering, virtual production systems, etc. Thus the primary activities; creating and disseminating knowledge will be the primary goals of the activities of the centre. We expect the next path-breaking contribution in technology and management education: called as evolutionary simulation game based teaching and learning as the replacement or augmentation of the present models of teaching and learning; and we IIT Kanpur to be the leader in this field. Hence, such a centre will allow for the formalization of activities that are currently carried-out independently. Also, it will promote new ventures coming out of it, where the commercial potential of any such game can be tapped by promoting an entrepreneurial venture; thus converting knowledge to wealth.

3.0 Current Activities

Many such applications are presently developed using open source software and technologies. Developing such complicated systems using proprietary software and technologies pose large financial requirement in the form of initial investment as well as recurring licensing fees. For example, automating a manufacturing system requires complex scheduling, planning and measuring applications. The same applications, if developed in a modular and reusable format, can be applied to manage a surgical facility in a hospital with minimal additional expenses. We present couple of ongoing projects that could support our claim.

3.1 Virtual Entrepreneurship

For example, one of the hardest concepts to teach is Entrepreneurship. In fact, people argue that it can be only experienced, not be taught. How could someone experience entrepreneurship for learning without a huge financial investment? As a specific example, consider a virtual setup that allows multiple live groups playing as different companies of the same type in a simulated economy setting; where every team is competing for the same market share with limited start-up funds. Each group is running a virtual start-up company where they have to make decisions on Production, Quality, Marketing, Finance,

Human Resource, Investment, Sales and Promotion, and Advertisement; just like in a normal start-up organization. Such a setting, where groups in the same scenario are competing for harnessing maximum market share such that their profit can be maximized warrants a smart and powerful enough computer system that can play the role of facilitator-cum-evaluator so that the game can progress for multiple periods. Here, periods imply financial years; thus providing the participants with a realistic exposure towards running an organization over a longer period of time. Also, the system would evaluate decisions of each group and provide them feedback in terms of financial reports like market share, investment reports, cash flow statement, balance sheet, competitor analysis, profit and loss statements, etc. so that each participant is exposed to the impact of his/her decisions immediately. As a way to demonstrate our technological competency in this regard, we have exactly developed such a game that can be played over the internet. Unlike, other software where different applications need to be installed on machines, this game requires only a web browser. Completely developed using open source software, the system is presently called as Strategic Innovation Game (SIG). This is truly an interdisciplinary research as our partners in this development have been three faculty members from Rensselaer Polytechnic Institute, USA; viz. Dr. William Tracy, Dr. Dmitri Markovitch, and Dr. Lois Peters. The game URL is: http://ssol.iitk.ac.in/rpi We tested the game across different institutions in India and USA. Some of them are IIM Lucknow, IMI New Delhi, Lancaster New Delhi, IIT Bombay, SP Jain Bombay, K G Somaiyya Bombay, RPI USA, and Fordham USA. About 2000 students who aim to become entrepreneurs someday have played this game so far, and the response we got is phenomenal; such that many institutions have already made it as part of their orientation process. Additionally, we also were awarded the most promising research paper by the Association of Management conference, where we presented this approach as a research paper. Finally, the most important part, which goes un-noticed otherwise, is the availability of huge amount of decision data and strategies people, especially novices, use when they have a start-up company to run. This data is so valuable as significant amount of research can be conducted using this data ranging from cultural influence in decision making to evaluating experiential learning from simulation games based system. But, to emphasize upon, this is not just what we propose. This is just one of the realistic systems that we propose. The major difference in design philosophy of

our systems is that no-one is playing against a computer. The computer, the Simulation Game Server (SGS), is a facilitator of real time interactions of multiple groups. This allows that each game that is played is completely governed by the dynamics of the group only and nothing else. By carefully choosing the groups, we can simulate closely the behavior of any real time scenario.

3.2 Virtual Production Shop

Studying the operations of various production shops is quite hard, as lots of mental visualizations of various aspects of such a system are necessary. For example, one has to mentally visualize queues, machines, material handling equipments, parts arriving, parts processing, parts leaving, rework, scrap, productivity, work-in-process, etc. As the system becomes more complex like a flow shop or job shop like systems, it is quite hard to grasp the concept. For this purpose, a simulation based production shop simulation laboratory was created to promote interactive learning and understanding of the system. The system provides different game options where the participating members can use the tools to design the best system for different performance measures like maximum throughput, maximum machine utilization, maximum robustness etc. Additionally, the complex concepts of various production shops like flow shop, job shop, open shop, facility layout, etc. can be easily taught using the simple virtual experimentation setup available in the online simulation setup. Also different competitive gaming scenario can be realized where participating students are trying to find the optimal setting for various factors to obtain the best result in certain performance measure, thereby exposing them to the concepts of experimentation like simple comparative experiments, factorial experiments, replications, blocking, etc. By doing so, the concepts of optimization, sequencing and scheduling in the production shop environment gets clarified in their mind sets. The virtual production shop is now operational and various national level experts have commented on it to be a very promising step in the direction of teaching operations research/management concepts pertaining to production shops. The functioning application is available at: http://gssl.iitk.ac.in/pssl

3.3 The Loan Bank

A major concept that is been converted to a simulation game scenario is the loan process of the banks. The system is designed such a way that the participants can play as loan applicants and as well as loan managers. The loan applications are straight forward; where the loan details are stored in the

database by filling the information in a prescribed web-based form. When the participants play the role of managers, they have a prescribed amount of money that needs to be allocated across different loan applications that are selected from the database by the system using certain pre-conditions. How the money gets spread across different loans is the decision of the participant playing the manager, for which he/she can use different models. This way they get to virtually implement the risk assessment theories, expected returns, maximizing profits, etc. Additionally, different constraints can also be put like percentage of loans to be sanctioned as per societal obligations. The gaming scenario is stochastic in the sense that random events can happen which will affect the progress of the game. This forces the participants to adopt dynamic and robust strategies. Playing the game multiple times enforces the learning and allows them to test different mental models and validate the output. The game is played over a simulated period of five years, represented by five rounds, and the winners are chosen at the end of the round. The system is undergoing development and should be operational soon. The test system is available at: http://ssol.iitk.ac.in/vbank

3.4 Product Ideation Game

Many a times, lot of students have great ideas. But, they are reluctant to pursue it, mainly because of the lack of confidence in the idea and the uncertainty about its viability. Having a system, where such ideas can be virtually tried and tested, and as well as evaluated by peers playing the game; provides a first level of feedback and thus confidence in them to pursue the idea further. We are working on developing a simulation based game, where participating teams have the freedom to virtually try out the product related business idea in their mind. Once the ideas are submitted, then each idea gets evaluated by the other teams where they have complex engineering tools to evaluate the feasibility of the product. Then each idea is rated and the computer server that facilitates the game normalizes these ratings and ranks the ideas. The process gets repeated where the teams have the freedom to revise and better their ideas. After repeating the process, the concepts of product redesign, revisions, etc. get clarified.

3.5 Other Systems

Additionally, there are systems that are designed for addressing various engineering and management problems. There is a virtual ideation system,

supply chain based beer game, team building games, transportation scenario games, space optimization, etc. Additionally as and when need arises, new games will be added to the developmental process and made available.

4.0 Operational Statement

The purpose of the centre would be to make different simulation based games that will be used for education, research, and training purposes for students, prospective entrepreneurs, future bankers, etc. The system will be based on open source technology, available for academia either free or at a very minimal usage fee. The developments of the simulation games in this centre will be student driven providing them valuable experience towards creating such complex systems. Additionally, we expect the system to scale up both in usage and as well as availability for different activities. The data collected from playing these games will be made available to researchers such that various behavioral studies can be conducted. Some of the ongoing studies are cultural influence on decision making, entrepreneurial intent and educational exposure, effect of experiential learning, etc.

4.1 Student Participation

In SGTMIC, the students get a chance to participate and develop different games that are relevant to their fields of interest. This is applicable for students across different departments. Some students might be interested in developing simulation games that are pertaining to their field of study. For example, developing an electrical circuit simulation game, where a given circuit can be manipulated within the given conditions to obtain a desired output. In this case, the components of the virtual circuit can be changed around to realize the goal. The winning parameters can be minimum number of changes within which the desired objective is realized. Through this intensive participation from the students, we aim at them bringing forth the concepts that they find hard to visualize or understand as a part of their academic endeavor. Hence, developing such systems allow them to understand the phenomena in depth and as well as create a platform for the fellow students to understand the same by using the interactive simulation system that is been developed.

4.2 Governing Structure

We propose the centre to have the following governing structure.

1. Core committee - will be responsible overseeing the activities of SGTMIC. We propose this committee to consist of Dean Research & Development of IIT Kanpur, Dean of Resource Planning and Generation of IIT Kanpur, Coordinator of SIIC, SSOL Lab in-charge, and the proposers of this centre. 2. Centre In-Charge - The Centre In-Charge will be one among the proposers of the Centre, on a rotational basis, until the centre becomes self sustainable. The term of the Centre In-Charge will be for five years. 3. (SGTMIC) Team 8 staff members as project employees, who will be responsible for conducting the activities of the centre based on the guidance and directions of the centre in-charge and the other PIs. The details and salaries, etc. are summarized in the budget.

4.3 Requirements
For the successful functioning of the centre, the following conditions are needed/assumed. 1. Space having state of the art classrooms, office space, conference facilities, discussion rooms, video conferencing facilities, libraries, and computer laboratories. 2. A seed fund that will generate interest to provide the initial operating funds for the centre. Major expenses will be in the form of paying faculty honorariums, working expenses, conducting programs, operations and maintenance of the facility, etc. Fees can be charged from the participants to augment the seed fund interest income to make it self-sustainable in the long run. Details are summarized in the budget.

5.0 Timeline
This section of the report summarizes the proposed timeline. The expected completion time is two years (730 days), from the day the funds are allocated. This is upon the assumption that space will be made available.

6.0 Deliverables
1. A fully functional, 24x7 operational simulation games center of IIT Kanpur, which will be accessed by institutions across the world for augmenting the technology and management endeavors.

2. A fully operational facility for students and researchers for learning, developing, and using simulation games. 3. Working collaborations, both within the institutions and with other partner institutions, resulting in significant creation of knowledge wealth. 4. Round the clock accessible facility for students who wants to work/learn in the area of simulation, games, technology and management innovation, complex system analysis, etc.

7.0 Project Budget

This section summarizes the projected cost of the Simulation Games based Technology and Management Innovation Centre (SGTMIC).
Table 1: Summary of capital/one time expenditure

Description SGTMIC Global gaming hardware Development machines and other systems Interactive Gaming Room SGTMIC media systems SGTMIC Digital Interactive Library Total One Time Amount

Item Cost (Rs.) 48,00,000 9,70,000 15,00,000 3,55,000 2,90,000 79,15,000

Table 2: Summary of annual running expenses

Description Salaries, wages, honorariums, etc. Databases, software licenses, etc. Maintenance, parts replacements, upgrades, etc. Travel to different institutes for system demonstration and popularization and bringing of experts as well Consumables & contingencies Total One Time Amount

Item Cost (Rs.) 25,80,000 18,00,000 3,00,000 20,00,000 7,00,000 73,80,000

Hence, based on our calculations at a return rate of 7% per annum, we request an corpus or seed funding for Rs. 10,00,00,000 (10 Crores only), which will generate interest and support the activities during the growth phase. Once the system is in place, we will be obtaining revenue through usage of the games by different institutes, and as well as through training programs, which will augment the corpus.