Cap Sim Quiz Online PDF

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CapSim Quiz
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Capsim T Tutorials utorials Introductory Les Lesson son Quiz

1.

Products are invented and revised by which department? Marketing Production Research and Dev Development elopment Finance

2.

What is the industry newsletter called? Founda Foundation tion FastT FastTrack rack ((report that shows you how your company performs against competitors) Foundation Quarterly Foundation Formula

3.

Which of these investments is not a function of the Production department? Increasing Automation Wage Increases Creating new production lines

4.

What are your company’s options for raising money? Borrowing Long-term debt Borrowing Short-term debt Issuing Stock A and C only A, B and C

5.

Prices are established by the: Finance Department Marketing Department

Production Department R&D Department

6.

The Proformas are dynamic financial statements that recalculate based on your decisions. True False

Rehearsal T Tutorial utorial

R&D Department 1. Repositioning an existing product: To reposition a product: Research current customer buying criteria in the Courier report. Display the R&D worksheet. Adjust Performance, Size, and MTBF. Observe impacts upon age, material costs, and R&D completion dates. Save the decisions. Marketing To Market your product: Research the competitive environment in FastTrack. Display the Marketing worksheet. Enter decisions for Price, Promotion and Sales Budgets. Observe the decision impact upon the benchmark forecast. Develop a worst case estimate for demand. Enter your worst case estimate for in the sales forecast. Save the decisions. Production Things to remember ● Your company’s A/P policy will determine the size of the adjustment. The longer you make your supplier's wait for payment, the greater this adjustment will become. ● Inventory on hand plus Production after adjustment = The maximum number of units you can sell for a product this year. ● Contribution margin is the percentage of what is left over for the company after making the sale. In general, you need a 30% contribution margin or higher in order to make a nice profit. Remember to keep an eye on your contribution margins as you change your prices in marketing. ● To schedule production for your product: 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. Production and HR ● There are two forms of production equipment in the simulation: Capacity (Determines quantity) and Automation (labour costs) → It takes one year to add

more capacity or automation to a product line. ● To modify plant and equipment for this 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. Finance Department ● Remember to keep an eye on your projected end of the year cash position when working on the actual simulation. Ending the year with a negative cash position will result in a high interest emergency loan being issued to bring your cash back up to zero. ● Proformas are essentially if-then statements: If your decisions came true then this is what everything will look like at the end of the year. ● Be sure to keep an eye on how your finance decisions are impacting your proforma balance sheet, income statement, cash flow statement, ratios, and balanced scorecard. ● To raise money and pay 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. INP and R&D ● To invent 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.

Situation Analysis

Perceptual Map ● Segment Centers and Drifts ● Ideal Spot (Performance+ Offset= Ideal Spot, Size+ Offset= Ideal Spot) Industry Demand Analysis ● (1 + Next Year’s Segment Growth Rate %) x Total Industry Unit Demand ● For worst case, assume, say, half the growth rate. ● For best case assume, say, 1.5 times the growth rate

Capacity Analysis

Margin Analysis Determining Current Margin: ● Contribution Margin($) = Price - (Material Cost + Labor Cost) ● Margin Percentage (%) = Contribution Margin/Price Determining Margin Potential ● Margin Potential = Maximum Price possible - Minimum Unit Costs possible Minimal Material Cost ● Minimum Material Cost = [(Lowest Acceptable MTBF * 0.30) / 1000] + Trailing Edge Position Cost Minimal Labour Cost ● Minimum Labor Cost = [$Base Labour Cost - (1.12 * Automation Ratings Below)] + 1.12 Minimum Base Labour Cost- $11.20

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