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Capsim Tips and Tricks

This document provides tips for each round of a Capsim simulation. It includes recommendations for automation levels, financing, research and development, human resources, marketing, and total quality management investments. Key suggestions are to increase low-end automation to 10% in round 1, maximize bonds early on but aim to be debt free by round 6, focus R&D on maintaining high mean time between failures for different product segments, and heavily invest in human resources and marketing in the early rounds. Later rounds should focus on total quality management investments and maintaining competitive costs for products like low-end. Accurate forecasting is also emphasized using formulas based on previous industry demand, growth rates, and own sales.

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1K views4 pages

Capsim Tips and Tricks

This document provides tips for each round of a Capsim simulation. It includes recommendations for automation levels, financing, research and development, human resources, marketing, and total quality management investments. Key suggestions are to increase low-end automation to 10% in round 1, maximize bonds early on but aim to be debt free by round 6, focus R&D on maintaining high mean time between failures for different product segments, and heavily invest in human resources and marketing in the early rounds. Later rounds should focus on total quality management investments and maintaining competitive costs for products like low-end. Accurate forecasting is also emphasized using formulas based on previous industry demand, growth rates, and own sales.

Uploaded by

Aly
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Capsim Tips and Tricks

https://www.youtube.com/watch?v=a243Uf9Fs5g
Round 1
 Low-end Automation bump up to 10
o Should be around $22mm
 Finance
o Max bonds
 Should be debt free by round 6
o $3.40025mm stocks
o AP lag to 60
o You want it to be close to zero with good forecasting
 R&D
o MTBF
 Traditional – 14 000 (all the way through)
 Low end – 12 000 (all the way through)
 Performance – 27 000
 Size – 16 000 (lowest range early round and highest in the later round)
o Marketing
 Promo and Sales budget $2 000 each (Traditional, Low end and high end)
 Performance and Size at least $1 000 each (try to keep as high as possible)
 Get up accessibility and awareness best you can

Round 2
 Human Resources
o Invest heavily
 Recruiting cost – 5 000 (all of them)
 Training hours – 80 hours
 Save millions this way later and kick in later
 Marketing
o Sales and Promo
 Promo and Sales budget $2 000 each (Traditional, Low end and high end)
 Try to get Promo and Size to $2 000 each too
 When you get close to 100% for awareness and accessibility (there are
formulas so make sure you don’t over spend)
 Cut to $1 400 in all when you reach 100%
 Finance
o Max bonds
 R&D
o Max capacity low end as much as you can (it will be the biggest segment in all
rounds)
 It will go 100% overtime
 CM will still be good
 Marketing
o $0.75-$1.00 less than competitors
Round 3
 Finance
o Bond might not be needed
 Marketing
o Low end CM should be good ~61%

Round 4
 TQM
o Invest a lot
o In everything except benchmarking
 Invest $1 500
 Should not need bonds

Round 5
 TQM
o Invest $1 500

Round 6
 TQM
o $1 000

--- - -- - -- - - - - ---- - - - - - -- - - - - - - -- - - - -
 R&D
o Low end
 No R&D Low end R1 do it R2
 Make it take two years to finish this will help with age
o High end
 December every year as best you can
o Traditional
 Focus on age, have it 1.5 so its ages to 2.5
o Performance
o Size

Don’t introduce new products, it’s hard


 There is an explanation

Traditional is the second money maker to low end

FORECASTING (Last Round's Total Industry Unit Demand) x (Segment Growth Rate) x (Last
Round's Sales)

ROUND 1 1. Low-End Automation → 10 2. Pay expenses: a. Max Bond: 18,994,000 b. Stock 5% =


3425 c. A/P → increase to 60 3. MTBF a. Traditional MTBF → 14,000 b. Low-End MTBF → 12,000
c. Performance MTBF → 27,000 d. Size MTBF → 16,000 4. Promo/Sales Budget a. $2,000 each b.
Excluding maybe Performance/Size ROUND 2 1. HR! a. Recruiting Cost: $5,000 b. Training Hours:
80 2. Promo/Sales Budget a. Every segment to $2,000 i. Once 100% reached, $1,400 3. Max
Investment a. Increase Capacity of Low-End 4. Max Bond again a. No Harm in this! 5. Low-End CM
= 58% ROUND 3 1. May need a bond, I didn't 2. Low-End CM: 61% ROUND 4 1. TQM a.
EVERYTHING at $1,500 b. EXCEPT Benchmarking 2. Shouldn't need a Bond at this point
FORECASTING (Last Round's Total Industry Unit Demand) x (Segment Growth Rate) x (Last
Round's Sales) = **Note: This Forecasting formula is outdated. It may not be 100% correct as my
teammate created it. Please tweak as necessary or let me know if there is something incorrect about
it.

https://www.youtube.com/watch?v=2q_z8QWrHtA

Forecasting

 Forecast Production
o Total Industry Unit Demand * Next Year Growth = How many units will be
needed
o How many units will be needed * Future Market Share = How many you should
make
o Problems can arise when new product is introduced

______________________________________________________________________________
https://www.youtube.com/watch?v=gxUUoJ3LpQg&list=PLTuBrQdscQQs_hH5JNrjqr26Ct_qc
PoqR&index=3

Performance & Size Ideal Positions


 Drift rates- customer wants shift

https://wincapsim2017.wordpress.com/

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