263 Copyright © 2011, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 16 DOI: 10.4018/978-1-60960-569-8.ch016 INTRODUCTION Today’s manufacturing is marked by trends towards globalization and rapid technological advances. This results in manufactured products being increasingly customized and complex with shorter life-cycle times, which increases the mar- ginal cost per product (Scheer, 2002). Therefore, organizations are confronted with the challenge of continuously adjusting their capacities and machines, necessitating a high degree of flexibility in dynamic environments. Johann C.K.H. Riedel Nottingham University Business School, UK Jannicke Baalsrud Hauge University of Bremen, Germany Evaluation of Simulation Games for Teaching Production (Engineering) ABSTRACT This chapter reports on the evaluation methods and findings from serious games for teaching production/ engineering. Two serious games are considered: Cosiga, a new product development simulation game and Beware, a risk management simulation game. These two games cover the front and middle parts of the engineering process – from design to manufacture to sale. For the Cosiga simulation evaluations of the communication, cognitive change and situational awareness were performed. For the Beware game evaluation of communication, risk awareness and improvement of risk management skills were performed The findings from the evaluations showed that serious games deliver learning outcomes. However, there are drawbacks to their use that need to be taken into account. Principally the high cost of development and the need for expert facilitators for running game sessions.