COMP XM SIMULATION TIPS
R&D
• Max out the MTBF
• Position the directly where the market wants it (using the perceptual map)
• Try to make it come out the same year. If not, position it correctly, complete all decisions, then come back and see where dates fall. It’s not terrible if it does not come out within the year, you just lose selling time
Marketing
• Price the products as high as you want. Most likely the market will accept it. For the promo and sales budgets, allocate more money to successful brands. If one brand sucks, don’t waste too much money on it.
• For your sales forecast, ignore what the computer tells you
o Go to the Inquirer and look up the Market Share portion
o Find
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If you double that number, and it is less than your scheduled production, you need to take the difference between those 2 numbers and buy that much capacity.
o Scheduled production—1200 units, 1st Shift Capacity—550 units, you should BUY 100 units of capacity …BECAUSE… (550)(2)= 1100 < 1200
• For your overtime people, just put what it says you need
• Automation rating max’s out at 10. The higher this is, the more efficient you produce—more work, less cost. You can increase it little by little (1 to 2 points per round) but it costs money, so budget wisely.
Finance
• If you have done everything and you have a TON of cash, retire some stock so that your stock price will go up. Buy bonds early in the simulation and pay them back toward the end. It grades you on how you deal with bonds, so even if you don’t need them, buy them.
• Pay dividends if you can afford it. It makes you do better
HR
• Always spend $5,000 and train for 80 hours
TQM
• The max you can spend on any of these is $5,000. After that, it does no benefit. So, in order to do this and still keep some money, spend $2,000 the first two rounds, then $1,000 after that. Then spend $0 for the rest of the rounds.
• Yes, $2,000 on each one. AAALLLLLLL the way down. If you don’t have enough money to do that, spend what you can. Just make sure that total, for each one, you get $5,000 before the simulation
When our group first started planning our strategy to win the second Littlefield simulation game, it was evident that the goal of the game was to maximize profits. We were competing against 18 other teams, but we knew with correct system capacity management and correct inventory management we could be the number one team. Even though we made correct decisions overall, we ended up in second place again with a cash balance of $2,660,393 and remaining inventory of 52 kits. Although we were a little disappointed again, we were very satisfied with what we have learned and the important operations management concepts we used such as capacity management and lead-time and inventory management throughout both of the Littlefield simulation games.
Establish guidelines for researching and gathering information and work with the staff to gather and evaluate the data.
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“How much to increase capacity depends on (1) the volume and certainty of anticipated demand; (2) strategic objectives in terms of growth, customer service, and competition; and (3) the costs of expansion and operation” (Russell & Taylor, 2011, p. 259).
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* Production capacity is 10,000 units a year however they hope to construct a $45 million facility with a capacity of
Capacity is a factories ability to produce items explained as follows, consider a factory that has a capacity of 10,000 " machine hours" in each 40 hour week. This factory should be capable of producing 10,000 "standard hours of work" during a 40-hour week. The actual volume of product that the factory can produce will depend on:
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