During a hands-on simulation, first-year MBA students work in teams to design and implement a complex process to produce electronic circuit boards.

During a hands-on simulation, first-year MBA students work in teams to design and implement a complex process to produce electronic circuit boards.

Don’t let the fact that first-year MBA students immerse themselves in the beer industry fool you—they are learning about product development by participating in an online simulation. In fact, the use and complexity of simulations in the MBA program has grown in the past decade.

“Simulations complement the case method by giving students the opportunity to take action and see the consequences,” says Vicky Keirnan, who oversees the creation of these and other learning tools at HBS. Keirnan and her staff work with a software development team and faculty members to create simulations that enhance learning on campus and—by partnering with Harvard Business Publishing—in business classrooms around the world.

The required Strategy course, for example, includes the “Strategic Brew” simulation, which puts all 900 first-year MBA students through an intensive, real-time exercise in decision making. The students work in small teams to develop a product (beer) and bring it to market. By analyzing data and collaborating on design, pricing, packaging, manufacturing, and marketing, teams compete as they test their ideas and iterate their strategy over a two-day period.

First-year students also participate in two simulations in the required Technology and Operations Management (TOM) course. The “Shad Exercise” provides a sense of the challenges of managing a complex process. In teams of 12, students design and implement a process to produce electronic circuit boards. Teams manage procurement, prepare materials by cutting and stripping wires, and assemble the circuit boards. They test their products to ensure that the lights blink and the buzzers buzz before delivering finished goods to their customer. Each team then attempts to improve their process in a second round.

“This simulation is when we see a lot of light bulbs go on as students put into practice the technical and managerial concepts they’ve been learning in case discussions,” explains Michael Toffel, the Senator John Heinz Professor of Environmental Management and TOM course head. “They try out process configurations and discover how to balance productivity, quality, job satisfaction, and cash flows.” For some, he adds, “It’s the first time they’ve had to engage in high-pressure manual work that requires a lot of dexterity, and they gain an appreciation for how difficult that kind of work can be.”

Dan Cooper (MBA 2019) found the exercise to be particularly effective at helping him understand the complexities of team dynamics. “The simulation made clear the importance of every detail of a production line, from the positioning of the various workstations to the actual tasks being performed by operators,” says Cooper. “It helped me see the value of getting direct input from those on the line in order to put successful process improvements into effect.”

First-year MBA students currently participate in eight simulations, and there are more than a dozen in the second-year elective curriculum. The School monitors student engagement and learning, and is constantly using that information to strengthen and evolve the use of simulations and technology in its educational programs.

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