Capsim Capstone Guide 2021 - Winning Guides and Tips 9

MBA Simulation Games 2019 - Winning Guides and Tips
Winning Guides and Tips
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ALL DECISIONS

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Capsim Capstone Guide 2021 - Winning Guides and Tips 9

MBA Simulation Games 2019 - Winning Guides and Tips (2019 Update - 2021)

Winning Guides and Tips

Free Online Support - New Updates with step by step and round by round guides

ALL DECISIONS

MBA Simulations Games Support (2002-2018) - Updated 2019

Free Guides and Tips

Free Personal Support for 2 rounds

Videos Explanations for All decisions.

Free Downloads:

1. Free Excel file for Sales Forecast and Production Calculation - LINK 1

2. Free ALL New Winning Guides and Tips - LINK 2

Online Support for MBA Simulation Games 24/7

Email to: mbahelp2002@gmail.com

TIPS 11 – TQM/Sustainability RESOURCES DECISIONS

FREE EXCEL FILE FOR WINNING ALL 8 ROUNDS

FREE PERSONAL SUPPORT FOR ROUND 1 & ROUND 2

ALSO ONLINE TUTORIAL THROUGH SKYPE OR TEAM VIEWER (ONE HOUR FOR ALL DECISIONS)

In TQM focus on setting $1.500 to $2.000 per round for each item, select the most useful initiatives first. Continue this for three round and then stop spending money into that initiatives, because it will no longer make any significant changes. We can see this from graphs at the end of screen.

NOTE

$5.000 is the maximum budget for each initiative for the whole game.

Optimal way to add money is $2.000 – $2.000 and $1.000 or $1.500 – $1.500 and $1.000 depends on maximum allowed for each round.

Priority order for TQM initiative benefits:

Reduce material costs
Reduce labor costs
Reduce R&D costs
Increase demands
Reduce SG&A expense

There are generally the best initiatives to put money in first:

CCE/6 Sigma Training
GEMI TQEM Sustainability
CPI Systems
Vendor /JIT
QIT
QFDE

We can apply try with different initiatives to see which one will bring more effects or most effective. Then in later rounds, we spend money in less effective initiatives when we have more extra money.

We can see the suggestions in the following tables.

TIPS 10 – HUMAN RESOURCES DECISIONS

It is important to invest in HR because productivity is measured in the Balanced Score Card and also this investment will reduce labor costs.

Usually HR has a few options available are Recruiting Spending, Training Hours

Aim for the maximum of $5.000 recruitment spending and 80 hours training every round.

If you have limited funds, try $2.000 and 40 hours training.

If the Labor negotiations are available, we can use half way, win – win strategy, between demanded and current contract.

NOTE:

when input number here, double check to make sure correct numbers and avoid labor strikes.

We often use half way for negotiations, average of current contract and labor demands.

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TIPS 9 – PRODUCTION – 8 Round by Round Strategy

If we can not complete all suggestion, try to come as close as possible.

Try to use all the budget available in the first 3 rounds and more if possible

The KEY to win Capsim is to control Automation as early as possible. The more automation is better.

Round 1 – Production

Upgrade original Low End sensor from 5.0 to 6.7 automation
Upgrade original Traditional sensor from 4.0 to 5.0 automation
Create 500 capacity with automation 5.0 for the new Low End sensor
Add extra capacity for original Low End sensor

NOTE: check the bottom right corner to see if we use close to total available budget.

Round 2 – Production

Upgrade original Low End sensor from 6.7 to 8.4 automation
Upgrade original Traditional sensor from 5.0 to 6.0 automation
Create 500 capacity with automation 5.0 for the new Traditional sensor
Upgrade new Low End sensor from 5.0 to right 8.4 automation.
Add extra capacity for original Low End sensor

NOTE: check the bottom right corner to see if we use close to total available budget.

Round 3 – Production

Upgrade original Low End sensor from 8.4 to 10.0 automation
Upgrade new Low End sensor from 8.4 to 10.0 automation.
Upgrade original Traditional sensor from 6.0 to 7.0 automation
Upgrade new Traditional sensor from 5.0 right to 7.0 automation
Create 400 capacity with automation 3.0 for the new High End sensor
Add extra capacity for new Low End sensor
Add extra capacity for original Low End sensor

NOTE: check the bottom right corner to see if we use close to total available budget.

Round 4 – Production

Upgrade original Traditional sensor from 7.0 to 8.0 automation
Upgrade new Traditional sensor from 7.0 to 8.0 automation
(Optional) Reduce Capacity for segments that are being exited, such as Performance and Size
Upgrade original High End sensor from 3.0 to 4.0 automation
Upgrade new High End sensor from 3.0 to 4.0 automation
Add extra capacity for all needed sensors

NOTE: check the bottom right corner to see if we use close to total available budget.

Round 5 – Production

Upgrade original High End sensor from 4.0 to 5.0 automation
Upgrade new High End sensor from 4.0 to 5.0 automation
(Optional) Reduce Capacity for segments that are being exited, such as Performance and Size
Add extra capacity for new High End sensor
Add extra capacity for all needed sensors

NOTE: check the bottom right corner to see if we use close to total available budget.

Round 6 and 7 – Production

Add extra capacity for all needed sensors

Round 8 – Production

Last round of the game, do not add any capacity or automation !!

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TIPS 8 – PRODUCTION – 8 Round by Round Guide from Round 1 to Round 8

Note to check Workforce needed and Workforce complement, if the box is editable, make sure to match the needed with This Year to save money. Otherwise we waste money.

We will increase automation every round.

Traditional to 8.0 (4.0 – 5.0 – 6. 0 – 7.0 – 8.0)

Low End to 10.0 (5.0 – 6.7 – 8.4 – 10)

High End to 5.0

Performance to 6.0

Size to 6.0

SETTING PRODUCTION

Production amounts should always be 112% of Sales Forecast.

This allow some extra inventory to take advantage of competitors suffer from stock out. This often happens.

When we calculate production, we need to take in to account inventory from previous round.

We can use excel file to calculate PRODUCTION more conveniently – LINK

If we see that year we have Stock out, we can increase production more than 112% to 120% or even 125%. If we see some inventory, we can reduce for that segment back to 112%.

ADDING MORE CAPACITY

Our goal is to keep our plant production at 150% (full first shift and 50% second shift).

This allows more flexibility to deal with short term market changes.

Remember that added capacity isn’t available until next round. So if we add capacity in round 2, it will be available in round 3.

If we see any factory with more than 150% capacity, we can add more capacity to that, just simply multiple the excess over 150% with total capacity. For example 180% of 2.000 factory, we will add 30% surplus = 30% x 2.000 = 600

NOTE:

We do not sell factories, even we are not using 100% at the current round.

NOTE:

We only reduce the segments we want to exit to 1. By doing so, we can still sell the rest of inventories in that segment at full price, not 50% price.

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TIPS 7 – MARKETING – 8 Round by Round Guide from Round 1 to Round 8

MARKETING – Round by Round Decisions

Round 1 – Marketing

Leave A/R lag (Account Receivable) at 30 days, this will be increased later rounds to get higher demands when we have more profits and more cash available.
Leave A/P lag (Account Payable) at 30 days. This is always stay at 30 days for all 8 rounds
Set Promotion and Sales budgets both for $2.000 for Traditional and Low End sensors
Set Promotion and Sales budgets all for $1.500 for High End, Performance and Size
Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year
USE THE SALE FORMULA or EXCEL FILE to calculate sales forecast and production – LINK

(Note: This round we create a new Low End sensor in R&D)

Round 2 – Marketing

Expect the new Low End sensor to sell about 0.2 x original Low End sensor market share
Leave A/P lag (Account Payable) at 30 days. This is always stay at 30 days for all 8 rounds
Set Promotion and Sales budgets both for $2.000 for Traditional and Low End sensors
Set Promotion and Sales budgets all for $1.500 for High End, Performance and Size
Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year
USE THE SALE FORMULA or EXCEL FILE to calculate sales forecast and production – LINK

(Note: This round we create a new Traditional sensor in R&D)

Round 3 – Marketing

If we decide to exit a segment, such as Size or Performance, keep the Promotion and Sales budgets at $0.
What ever segments we decide to stay, increase Promotion and Sales to $2.000
Expect new Traditional sensor to sell about 0.3 x original Traditional sensor market share.
Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year
USE THE SALE FORMULA or EXCEL FILE to calculate sales forecast and production – LINK

(Note: This round we create a new High End sensor in R&D)

Round 4 – Marketing

Increase A/R Lag (Account Receivable) to 46 days, this helps to increase demands
Once 100% awareness is reached for a sensor, in any round, we can scale back to $1.400 but need to check if can that budget maintain 100% awareness.
Expect new High End sensor to sell about 0.75 x original High End sensor market share.
Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year
USE THE SALE FORMULA or EXCEL FILE to calculate sales forecast and production – LINK

(Note: This round we exit segments because we have reduced Promo and Sales budgets to $0 also we have reduce Production capacity to only 1)

Round 5 – Marketing

Increase A/R Lag (Account Receivable) to 61 days, this helps to increase demands
Note to add new market shares for new developed products, check in page 10 Capstone Courier.
Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year
USE THE SALE FORMULA or EXCEL FILE to calculate sales forecast and production – LINK

Round 6 to 8 – Marketing

Note to add new market shares for new developed products, check in page 10 Capstone Courier.
Once 100% accessibility is reached for a segment (in any round) we can scale back the Sales budget t $1.650 for each segment to maintain 100% accessibility. Note to adjust and then check the graphs at the end of the market table.
Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year
USE THE SALE FORMULA or EXCEL FILE to calculate sales forecast and production – LINK

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TIPS 6 – MARKETING – 8 Rounds guides – Round by Round Guide from Round 1 to Round 8

Apply $2.000 for promotion and sales budgets for Traditional and Low End, because above this level, diminishing returns are experienced.

Apply $1.500 for High End, Performance and Size segments.

Keep this spending from Round 1 to Round 3, until we can decide which segments we will continue. Then, we increase all segments to $2.000 to compete.

For segments, we do not want to continue, for example Performance or Size, we reduce budgets for that segment to only $0.

For Promotion, we continue $ 2.000 until we reach 100% awareness. Then we can cut it back to $ 1.400 per round.

For Sales, we continue $ 2.000 until we reach 100% accessibility. Then we can scale back to $ 1.650 for each sensors.

TIPS:
We can increase much higher, or even max, to see how much awareness and accessibility we can get, just click CALCULATION button to see how much we get for that year. Then we can increase or decrease spending to get 100%.

NOTE:

Budget for sales, accessibility for multiple sensors in a segment, they are combine together.

See figures in followings:

PRICING

Each round we can lower all prices down at least $ 0.50 from maximum price of the segment to keep up with customer expectation (lower each year)

We can create in excel file a table for Prices to keep track of lowering prices every year – LINK

We need to check from Capstone Courier Prices (from page 5 to page 9) to see max prices for each segment, in the top product at the end of each page.

If competitors are cutting prices in Traditional and Low End segments, we need to lower prices to close to their levels.

However, when competitors lower their prices too much, they will not have enough capacity to sell, also they suffer stock out.

We can still keep prices higher and get market shares at higher profit level. This is why we need to calculate demands and plan production as precisely as we can.

NOTE

We DO NOT have to compete with prices in High End, Size and Performance, because buying criteria is low, only 9 – 19%

SALES FORECASTING

Do not trust computer suggestions, they always wrong.

We have a formula to calculate and forecast sales for next round

1. Get Market shares from Page 10 of Courier Report

2. Get Total Sales also from Page 10

3. Get Market potential growth for each segment from page 5 to 9

Sales forecast = Potential market share % x Segment size x (1 + Segment Growth Rate).

Note:

Page 10 gives us Potential Market share, we use this (do not use actual market share)

If we think we can sell more, we can just adjust the percentage.

Note:

We can use Excel file to calculate more conveniently. Use 8 sheets for 8 round, just copy and paste number from Courier Report Page 10, Page 4 and select market growth rate from page 5-9 into each sheet. We can get Sales Forecast and also Production.

Download the Excel file from here – LINK

If you need help, we can create a file for you for FREE – email: wincapstone2012@gmail.com

See figure

NOTE: Use potential market share (RIGHT Column) to calculate and forecast sales.

NOTE

You can copy and paste into excel file, then it can calculate automatically Sales and Productions. You can adjust the percentage if we think we can sell more or less.

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TIPS 5 – R&D 8 Rounds guides – Round by Round Guide from Round 1 to Round 8

Note:

In order to apply this Round to Round strategy for R&D, we need to create an excel file with your own data from Industry Condition Report and put data in Excel file to get more precise numbers.

Step 1. Download Industry Condition Report (from your game)

Step 2. Download Excel file for automatic calculation strategies and decisions

FREE DOWNLOAD – LINK

Back up link – LINK

Step 3. Very important

Open page 2 of Industry Condition Report and get the Table 2, first line for Round 0 and put that numbers in Round 0 in Excel file, then the file will automatically calculate all decisions for 8 rounds, with 4 different STRATEGIES.

DO NOT USE THE DEFAULT numbers in excel file, that is a little bit different from YOUR GAME (creator and administrator change the numbers when new industry is created for new class).

–> Get Round 0 number from Industry Condition Report

–> Put into Excel file, Round 0 (only 1 row) –> Then the file will automatically calculate all the decisions

(Check Drift and Ideal Offsets – 2 last rows of table 1 – they often do not change for all game)

We can use the Excel file to calculate Specifications for R&D more easily.

If you have come to this Step. We are half way win the Capsim Simulation !!

Again, this Round to Round guides can apply if we start from Round 1. DO NOT use this suggestions if you are already in the middle of the game, having completion several rounds without this guides. If so, your company may not have enough upgrades and automation to follow this suggested strategy, you can refer to other tips to Rescue Company or Mid Game Tips.

Now, if you are in Round 1, we can apply this Round to Round Strategy and Win the game.

The numbers are from my game, you need to use your Excel file, numbers will be a little different. If you can not create your file, email: wincapstone2012@gmail.com – I can create a file for you for FREE.

We use the following strategy for the guides and winning tips in Round to Round Strategy.