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Getting Started

The following video was produced to help each student understand their role in this simulation and how to get started making decisions.  Initial analysis of the case data and planning the first year of operation are critical to successful decision making in this comprehensive simulation.  Excel spreadsheet planning tools are available to help in this process.

The KEY to doing well in this simulation is the coordination of the functions.  Good marketing without a corresponding production plan and the finances to implement your decisions will surely fail!  The Frequently Asked Questions (FAQ) shown below are important helps when determining how the simulation processes your decisions.  (See last FAQ.)

  View a Getting Started video of this simulation. (Requires High Speed Connection -- May take a few minutes to load.)

 

FAQ

How do I know how I am doing? -- 1) Compare your results to Industry Averages, or 2) Buy studies that show industry trends within an industry, or 3) Watch your performance rating.

What do my Raw Materials provide? -- One roll of fabric supplies 1,000 cut pieces.  One tube of aluminum provides one frame for the OutdoorPak.  One packet of hardware supplies all the hardware necessary for one product. One cut piece provides enough material to produce straps for any product.

How many Raw Materials are on order at the beginning of the simulation? -- There are currently 1,300 rolls of fabric, 160,000 tubes and 300,000 hardware packets due to arrive in quarter 1.

When do Raw Materials arrive? -- They arrive the period after ordering.  For example, material ordered in quarter 1 will be available in quarter 2.

What happens if I don't have enough of the right skill level workers? -- The number of stations available will be reduced if insufficient skills are available to operate the equipment.

How do I produce more units? -- Be sure you have enough incoming inventory, enough Fabricators and Assemblers with the appropriate skill level and find the bottlenecks!

Can I operate more than 32 assembly tables? -- Yes, but be sure you have enough assembly workers with the right skills to produce your products.

What is the maximum overtime I can schedule? -- One hundred and thirty hours per quarter per shop.  Normal scheduling is 520 hours per quarter while max overtime is 650 hours per quarter.

How do stock bonuses work? -- Executives receive bonuses equivalent to 4 times their rating times the current stock value.  Other managers/professionals receive 2 times their rating.

What happens when I try to hire a worker who is currently making more than we are paying? -- The worker will choose another team.  However, if you are willing to raise the base pay to include this worker's current pay, he/she will join your firm.  Beware of the consequences to other workers!!

Can I change a current manager's style? -- Yes.  Managers with ineffective styles can be changed with training, but this is not a certainty.

When I retire a worker, when do I lose the worker for scheduling? -- Right away and this worker may never return.

Why are so many employees leaving? -- They are unhappy (morale is low).  You can change morale through the decisions you make.  Don't 'break the bank', but do be concerned with employee satisfaction issues.

Can I retire the old computer system after I purchase the new one? -- Yes, the new system is considered to have all the features of the old system plus the new direct channel capabilities.

Do I need two IS specialists with the new computer system? -- Yes, the new computer system with it's direct channel capabilities requires the full attention of the new IS specialist.

What are the events that take place at the beginning and end of a simulation period? -- Events before the run include hiring/firing, pay changes and transfer of employees.  Events after the run include training, bonuses, morale, attrition, space addition, equipment addition and all financial calculations.

What is the cost of expansion? -- Production space costs $75 per sq ft and office space costs $150 per sq ft.

Why am I losing so much money? -- This simulation requires a lot of coordination between function responsibilities.  For example, revenue requires sales - sales requires marketing and production - production requires raw materials and workers with the right skills - workers of the right type must be provided with the right skills at the right time, and watch turnover.  Finally cash (inflow and outflow) must be managed effectively.  This all requires a balanced team effort.

 

 

   
 

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