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