This paper outlines the development of a working model of a manufacturing e
nterprise, consisting of a manufacturing system, a warehouse and a customer
. A model train is used to ship the goods between the three stages, The mod
el can be viewed and controlled interactively on the Internet. This means t
hat the user can explore different operating strategies to optimise the per
formance of individual components or the manufacturing enterprise as a whol
e, in terms of delivery time and total cost. The manufacturing enterprise m
odel is built using LEGO and controlled by Lab VIEW The complete model and
its controlling software was developed by a group of engineering students a
s an undergraduate project. The paper also discusses the educational advant
ages of developing and using such a system.