Capsim S Rules

1. Per calcolare l’ideal spot considerando di avere il centro del segmento e la distanza dal centro dell’ideal spot:

Center
Offset
Ideal Spot
Pfmn :
3.0
– 0.8
= 2.2
Size :
17.0
0.8
= 17.8

2. Per calcolare la domanda dell’anno successivo:

domanda corrente x (1+tasso di crescita)

First Shift Capacity
First and Second Shift Capacity
Automation Level
Company
Found under “Capacity Next Round”
Capacity Next Round x 2 (shifts)
Found under “Automation Next Round”
Industry
Total the capacity of each product in that segment
Total capacity of each product in that segment X 2

3. Production costs Activity

Cost to double capacity
Cost to raise automation to 10
Increasing capacity is $6 per unit with an adjustment for automation.
Increasing automation is per unit of capacity
Formula is:
First Shift Capacity x [$6 + ($4 x automation level)] Example Input: 500 Formula is:
First Shift Capacity x [$4 x (10 – automation level)] Example Input: 700

4. Calculating margins Activity

Useful formulas:

Contribution Margin($) = Price -_ (Material Cost + Labor Cost)

Margin Percentage (%) = Contribution Margin/Price

5. Determining Margin Potential

Finding the maximum amount of profit you can get from one unit of a product is called Margin Potential. It’s useful for a company when making a decision about whether to go into production or not. In it’s simplest form, it is calculated as:

Margin Potential = Maximum Price possible – Minimum Unit Costs possible

Minimum Material Cost = [(Lowest Acceptable MTBF * 0.30) / 1000] + Trailing Edge Position Cost
Minimum Labor Cost = [$11.20 – (1.12 * Automation Ratings Below)] + 1.12

RAISING MONEY AND PAYING DEBT
Examine the proforma Income Statement
Examine the proforma Balance Sheet
Display the Finance worksheet
Issue or repurchase stock as required
Issue or repay bonds as required
Issue short term debt as required
Issue a dividend as required
Save the decisions

INVENTING A NEW PRODUCT
Research the opportunity in the segment in the Courier
Select appropriate product attributes – Performance, Size, MTBF
 Display the R&D worksheet.
Enter the product attributes
Note the R&D completion date
Display the Production worksheet
Order capacity and automation (optionally, wait a year)
Display the Finance worksheet
Fund the plant with stock and bond issues
Save the decisions

MARKETING A PRODUCT
Research the competitive environment in the Courier
Display the Marketing worksheet
Enter decisions for Price, Promotion and Sales Budgets
Observe the decision impact upon the computer’s forecast
 Develop a worst case estimate for demand
Enter your worst case estimate for in the sales forecast
Save the decisions

SCHEDULING PRODUCTION:
Estimate peak demand for each product for this year and next year
 Examine unit costs and margins
Display the Production worksheet
Increase or decrease capacity as required
 Increase automation as required
Observe the net cost of the investment
Display the Finance worksheet
Fund the investment with a mix of stock issues, bond issues, and depreciation
 Save the decisions

REPOSITION A PRODUCT
Research current customer buying criteria in the Courier
Display the R&D worksheet
Adjust Performance, Size, MTBF
Observe impacts upon Age, material cost, and completion dates
 Save the decisions

MODIFYING PLANT AND EQUIPMENT

Estimate a best case for demand for each product this year
 Display the Production worksheet
Observe existing inventory
Schedule production to meet best case demand less existing inventory
 Save the decisions