CapSim Round 1 tips.docx - Round 1 tips: Invest to 10...

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Round 1 tips:Invest to 10 automation for low-end immediately ($28 million) paying for it with the maximumbondStock at 5%$3.425 millionAP Lag to 60MTBFoTraditional – 14000 (next best)oLow-End – 12000 (best segment)oPerformance – 27000oSize – 16000 lowest at first few rounds and then bump up as simulation goesPromo/Sales Budgeto$2000 each (at least Traditional, Low-End and High End) – Accessibility plays a huge rolein simulation. Get it up as quickly as possibleFinance page should be close to $0 profit with good forecasting as possible (not negative)Round 2:Human Resources should be invested in heavily - $5,000oTraining hours – 80 (increases productivity index)Promo/Sales Budget – every segment at $2,000 (once you get to 100%, cut back to $1,400)Max bond investment and increase low-end capacity as much as possible and 100% overtimeo$0.75-$1 less price than competitors is idealRound 4TQMoInvest heavily in TQMDon’t invest in benchmarkingInvest $1,500 in all other categories (Round 4 & 5) then $1,000 in Round 6Don’t take out bond moneyForecastingFormulao(Last Round's Total Industry Unit Demand) * (Segment Growth Rate) * (Potential MarketShare)oIs my product better than everyone else? Is it last? Will affect forecastingoDid I set myself up for next round well? Or are the numbers deceiving?R&DLow-End – don’t do it round 1oCome out in 2 years when automation of 10 is finishedHigh End – December every yearTraditional – focus on age above all. Lower it to 1.5 and then let it age to 2.5 before adjustingagainPerformance/Size – straightforwardNew ProductsNot recommended

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Term
Spring
Professor
N/A
Tags
Finance, Capital accumulation, low end

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