This article discusses the functions and effectiveness of games and simulations in the learning processes, in particular as an experiential learning methodology. The application of the game Lemonade Tycoon in the development of lean manufacturing concepts is described. This article addresses the use of the game to teach the principles of lean enterprise, including zero waiting time, zero inventory, scheduling, internal customer pull instead of push system, batch to flow, cut batch sizes, line balancing, and cut actual process times. Other outcomes of learning such as promoting communication and interaction, facilitating cooperative learning, encouraging peer learning and fostering teamwork are also discussed. Games and simulations are relevant in all of the four learning phases of experiential learning and have a very positive impact on the learning and future application of lean manufacturing principles. Games are especially relevant in the generalization and application phases by helping shift learner's personal paradigms. (Contains 6 figures.)