CAPSIM 2022 &#8211; QUICK WINNING GUIDES AND TIPS

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DECISIONS REGARDING HUMAN RESOURCES (TIP 10)

It is critical to invest in human resources because productivity is measured by the Balanced Score Card, and this investment will also save money on labor.

HR usually offers a few options to choose from: Spending on Recruiting and Training

Every round, aim for a maximum of $5.000 in recruitment costs and 80 hours of training.

If you’re on a budget, try $2.000 and 40 hours of training.

We can employ a half-way, win-win strategy between the required and current contract if labor discussions are available. You want to spend as much money as possible on human capital, thus you want to put as much money into hiring and training as feasible.

Recruiting Budget: $5000
Training Time: 80 Hrs.

R&D

Increase the MTBF for all of our goods to the highest extent possible.

Traditional to a maximum of 19000 or 17000
Low End: 17000 or 14000 dollars (need 7 years to sell best)
Top-of-the-line to $25,000 or $23,000
Achieved 27000 in performance (Should be 27000 to sell best)
Expand to a size of 21000 or 20000

On each segment, modify each product according to the spreadsheet.

You want to improve performance while reducing size as much as possible before the revision deadline in July. (The optimum time to introduce products is on June 26th.)

MARKETING PRICE

For conventional, you want to start with a price that is as near to your competitors as feasible, if not lower.
For low end, you must have the lowest price you can pay while maintaining a contribution margin of at least 40%. And it’s all done without sacrificing demand.
Set your pricing as high as feasible in the high-end, performance, and size divisions.

Traditional: $29.5; Low End: $21 or 20.5; High End: $39.50; Performance and Size: $34.50

(For each category, prices, and customer choice, consult the Courier Report.)

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BUDGET FOR PROMOTION AND SALES

Never spend more than $2000 on promotion in any given year for any product. (Returns begin to dwindle at $2000)
You want to spend $2000 on Traditional and Low End for the first year.
Spend between $1000 and $1500 for high-end, performance, and size.
Never spend more than $2000 on promotion in any given year for any product. (Returns begin to dwindle at $2000)
You want to spend $1500 on Traditional and Low End for the first year.
Spend roughly $1000 – $1500 for high-end, performance, and size.

Note: If you want to profit from rounds 1, 2, and 3, you can use 2.000 for the Low End, and then 1.200, 1.400, and 1.600 for the High End.

For all products after Round 4, use 2.000.

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FORECASTING

Take your previous year’s market share from the Capstone Courier’s Market Share page and multiply it by the next year’s demand for each sector.
To calculate Next Year Demand, multiply current demand by the rate of growth.
Multiply your market share by the demand for the following year.

Note: – The most straightforward method is to examine the courier report, locate the Production page, locate the Units Sold, and locate the Inventory.

– Forecasted sales Equals last round’s sold units multiplied by segment growth

– Production = Forecasted Sales – Inventory

You can multiply each by 10-12 percent to get a reservation and avoid running out of supplies.

PRODUCTION

We want to keep some inventory on hand in case we sell more units than expected.

RATING OF AUTOMATION

Traditional: each round, increase the automation by 2 points until you reach 8. (Or 10)
On the low end, you want to get to 10 as quickly as possible (first round you can move to 8 or 9, and make sure you have 10 by the 2nd round) • High End, increase by 0.5 or 1 point each round, but don’t go over 6. • Low End, increase by 0.5 or 1 point each round, but don’t go over 6.
Each round, increase your performance by 1 or 1.5 points until you reach 7.
Each round, raise your size by 0.5 or 1 point until you reach 7.

Increase Low End to 10 as a starting point.

Increase the number of traditional products to eight and the number of other three products to three (HE, PE, SZ from round 4, to 4-5-6 in rounds 4-5-6)

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COMPLEMENTING THE WORKFORCE

Always at 100%

BUY/SELL CAPACITY

You want to keep 2nd Shift Production percent between 20% and 50% • If you have fewer than 20%, you must sell capacity; if you have more than 50%, you must buy capacity Note: Using 150 percent is the most effective.

Simply sell TR and HE capacity in round 1, as you will not require such a large amount of capacity. Increase LE capacity. Then, starting with round 4, increase capacity for HE, PE, and SZ when sales are high. Check your capital investment once you’ve made your production decisions; • If you have any capital investment left over, try to invest it in Automation or Capacity.

If you’re spending more than you should, consider selling capacity or reducing your investment.
I strongly advise you to sell some capacity in the first round in order to fund Automation and sell traditional, high-end, performance, and size items.

NOTE: In Round 1, sell TR and HE capacity to invest in LE and new capacity for new LE2.

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FINANCE

To avoid taking out an emergency loan, you should have at least $10,000 in December Cash Position.

In the first year, we will source money in the following order until we attain this $100,000 cash position:

Collect as much “Issue Stock” as you can
Collect as much “Issue Long-Term Debt” as possible.
Take anything you need from the “Borrow” section.

Retire stock is for when you have a healthy cash position and enough money to repurchase shares from the market.
Dividends per share are paid to shareholders when there is money left over from a capital investment.
Retire Long-Term Debt is for when you wish to pay off your debt sooner rather than later (This usually decreases your interests’ expense)

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