Capstone Excel WOrksheet

Welcome!This message should disappear in a moment…

Thank you, and good luck in the simulation!

If you continue to see this message you need to enable content from Capsim Management Simulations, Inc.®Office/Excel 2007/2010 Users: 1. Locate the "Security Warning" above the formula bar. 2. Click on the "Options" button. When the Security window opens select "Enable this content." 3. After logging in remember to click the Add-Ins tab to see the simulation menus.

Office/Excel 2008 Users: We apologize but Microsoft has removed the ability to run 3rd party content from Excel 2008 for Mac. Please use the Web Spreadsheet version, available from website's Downloads area.

Other Office/Excel versions: 1. Exit Excel. 2. Open this workbook again. Excel will display a warning message that says the workbook contains macros. 3. Click the Enable Macros button. Depending on your security settings, you may have to check a box that says, "Always trust macros from this source" before you can click the Enable button.

SimulationName Capstone Color CodesSpecialEdition/Language English Black - a formula or label - example Current Cash positionProgramTitle 0 Red - a formula that should NOT be copied because some element of it is unique.EditionTitle 0 Pink - reference to the StartingConditions.txt fileEditionNumber 2 Blue - a constantSpreadsheetVersion 2009v22 _105 Green - something calculated by a VB routine.Copyright Copyright 1986-20011 Capsim Management Simulations, Inc.SimID 0ProfessorNameSchoolNameHistoryNumber 0TeamNameTeamNumber 0NumberTeams 0BaseYear 0ThisRound 0ThisYear 0 0 < StudentName for EXAMCompXMRoundOffset 0ReportDate Round -1, 12/31/-1SimulationType ForceDecisionType NoneSimulationPath \\psf\Home\DocumentsSaveFlag 0 ExitSaveFlag 0Zero 0WebsiteURL https://www.capsim.com

http://www.msicourses.comhttp://www.capsim.com

RehearsalSimulationSlideID RehearsalCoached 0ExcelVersion 11CoachOn 1IDFreeRDProduct #VALUE!PARAMETERSStrikeRounds 0 0 0TQM_Rounds 0 0 0MKTG_Rounds 0 0 0RD_Rounds 0 0 0HR_Rounds 0 0 1MarketUnitSize 32691SegmentUnitPercentage 29.4% 38.2% 12.3%SegmentInnerRadius 2.5SegmentOuterRadius 4RdCostPerYear 1000OvertimeRate 1.5Buy/Sell Capac 6 0.65AutomationPrice 4Carry Inven. 0.12DepreciationPeriod 15InventoryLiquidationRate 0.5AdminOverheadRate 0.007TaxRate 0.35SharesOutstanding 2848

B1

Daniel Smith: Must contain exactly "Capstone" or "Foundation" or "CompXM". Used by VBA as both a character string and to distinguish between the two simulations. Similarly, the DecisionsOutgoing range checks for the value "Foundation" to select the appropriate entry sheet. The Simulation name is set in Auto_Open by looking at the workbook name. If the name contains "Found" or "CompXM", it sets SimulationName to Foundation or CompXM, otherwise Capstone.

C2

Language setting for the spreadsheet. Currently Available: English Portuguese

A20

Contains REHEARSAL, COMPETITION, or EXAM

A22

Daniel Smith: Used by PackageSpreadsheet and Workbook_BeforeSave. If zero, the student has clicked Excel's Save, and would normally save the workbook. We intervene, saving the decisions instead. If one, PackageSpreadsheet is trying to save. We go ahead and save the workbook, not the spreadsheet.

A30

Used in tutorials to identify first product that is free in R&D.

StockPriceJan1 2.95EPSlastYear -2.71AdjDividendlyr 0.00CurrDebtDueThisYear 53040CurrDebtInterestRate 0.112BondInterestRate 0.126CashJan1 0A/R 7138A/P 7748Common Stock 46599Retained E. 22888WeightTablePositioning 0.21 0.16 0.43Price 0.23 0.53 0.09Age 0.47 0.24 0.29Quality 0.09 0.07 0.19MidYear Segment Centers Trad Low High Xcoord 6.75 3.75 9.75Ycoord 13.25 16.25 10.25EndYearSegCenters Trad Low High Xcoord 7.1 4 10.2Ycoord 12.9 16 9.8BiasX 0 -0.8 1.4BiasY 0 0.8 -1.4ExpectedPrices 23.5 18.5 33.5PriceSpread 5 5 5AgeIdeal 2 7 0AgeStdDev 0.9 2.5 1.3MTBFLow 14000 12000 20000MTBFHigh 19000 17000 25000MTBFboundary 5000 5000 5000Awareness 0.61 0.54 0.47AwareDeprRate 0.33AwareBudgMin 0.00AwareBudgMax 3000000AwareGainMin 0.00AwareGainMax 0.50AwareShape 2.00Access 0.43 0.31 0.33AccessDeprRate 0.33AccessBudgMin 0.00AccessBudgMax 4500000AccessGainMin 0.00AccessGainMax 0.35AccessShape 2.00SalesBudgLimit 3000000OverTime Rate 1.5ManHrPerAutomPt 0.05LAST YEAR'S VALUESOldProductName Able Acre AdamOldXcoordinate 5.1 2 7.5

OldXcoordinateRD 5.1 2 7.5OldYcoordinate 14.7 16.8 11.9OldYcoordinateRD 14.7 16.8 11.9OldMTBFspec 17500 14000 23000OldMTBFrdSpec 17500 14000 23000OldRDCost 0 0 0OldPrice 28 21 38OldPromoBudget 1000 900 800OldSalesBudget 1000 900 800OldUnitSalesForecast 0 0 0OldProductionSchedule 2376 1337 495OldCapacityNextRound 2500 2000 1100OldAutomationNextRound 4.0 5.0 3.0OldRvsnDate 2013.211 2013.298 2013.157OldRDstartDate 2013 2013 2013OldAgingDate 2011.8776 2011.6509 2012.1984OldInventoryUnits 2108 645 262OldInventoryValue 39164 8719 6139OldPlantValue 55000 52000 19800OldAccumDepreciation -20240 -18720 -7920OldAR 30OldAP 30LABOR 0 0 0OldTechWage 0 0 0OldAsmbWage 0 0 0OldBenefits 0 0 0OldProfit 0 0 0OldAnnualRaise 0 0 0OldContractExpiration 0 0 0OldPrimarySegment 0 0 0OldPrintMedia 0 0 0OldDirectMail 0 0 0OldWebMedia 0 0 0OldEmail 0 0 0OldTradeShows 0 0 0OldSalesPriorities 0 0 0OldOutsideSales 0 0 0OldInsideSales 0 0 0OldDistributors 0 0 0OldMktgReports 0 0

TQM_IMPACTSCarryInven. 0.12 Was B240*B865AdminOverheadRate #VALUE!ManHrPerAutomPtTQM #VALUE!

PRODUCT_DECISIONSProduct Name Able Acre AdamPerformance 5.1 2.0 7.5Size 14.7 16.8 11.9MTBF 17500 14000 23000

B130

The year the current contract will expire.

C130

The year the current contract will expire.

D130

Necessary because wage escalator does not apply in a contract negotiation year.

Price 28.00 21.00 38.00Promo Budget 1000 900 800Sales Budget 1000 900 800YourSalesForecast 0 0 0Sched Production 2400 1350 500Capacity Change 0 0 0Automation Rating 4.0 5.0 3.0StockIssueRetireDividend 0 0 0.00ShortDebt/BondRetire/BondIssue 0 0 0AR_AP_Lag 30 30R&DDidCoordinatesChange 0 0 0DidMTBFChange 0 0 0WasOldProduct 1 1 1ProjectExists 0 0 0ProjectExistsFactor 0 0 0ProjectFactor 1.00MTBFchngOnly 0 0 0MTBFtime #VALUE! #VALUE! #VALUE!MTBFrevisionDate 0.00 0.00 0.00MTBFnewAgingDate 0 0 0MTBFageAtCompletion 0 0 0MovedOldProduct 0 0 0MovedDistance 0.00 0.00 0.00MovedRevisionDate 0.00 0.00 0.00MovedNewAgingDate 0.00 0.00 0.00MovedAgeAtCompletion 0.00 0.00 0.00NewProduct 0 0 0DistanceToNewProductTable

Able Acre AdamAble #VALUE! #VALUE! #VALUE!Acre #VALUE! #VALUE! #VALUE!

Adam #VALUE! #VALUE! #VALUE!Aft #VALUE! #VALUE! #VALUE!

Agape #VALUE! #VALUE! #VALUE!NA #VALUE! #VALUE! #VALUE!NA #VALUE! #VALUE! #VALUE!NA #VALUE! #VALUE! #VALUE!

NewDistance 0.00 0.00 0.00NewProductTime 0.00 0.00 0.00NewRevisionDate 0.00 0.00 0.00NewAgingDate 0.00 0.00 0.00NewAgeAtCompletion 0.00 0.00 0.00RdRevisionDate 2013.21 2013.30 2013.16RdProjectCost $0 $0 $0RdAgeAtStartOfYear 0.00 0.00 0.00RdTimeThisYear 0.00 0.00 0.00RdTimeWithStartDesign 1.00 1.00 1.00RdTimeWithNewDesign 0.00 0.00 0.00RdAgeAtRevision 0.67 0.82 0.48RdAgeAtEndOfYear 0.00 0.00 0.00

MaterialCost MidYear StartYearMatCoordPfmn 0.95 0.7MatCoordSize 19.05 19.3MatCoordScalarMidYear #VALUE!MatDesignExistedLastYr 1 1 1MatStartPmap #VALUE! #VALUE! #VALUE!MatStartMTBF 5.25 4.20 6.90MatStartTotal #VALUE! #VALUE! #VALUE!MatFuturePmap #VALUE! #VALUE! #VALUE!MatFutureMTBF 5.25 4.20 6.90MatFutureTotal #VALUE! #VALUE! #VALUE!

MARKETINGWorkingAttributesMktgPerformance 5.1 2 7.5MktgSize 14.7 16.8 11.9MktgMTBF 17500 14000 23000MktgAge 0.5 0.5 0.5MktgPrice 28.00 21.00 38.00MktgIsProducable 1 1 1MktgTimeInMarket 0 0 0DistanceToSegmentCenterTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!DistanceToSweetSpotTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!PositioningRoughCutTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!PositioningScoreTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!PriceRoughCutTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!

A209

Estimates cost based upon the midyear Material Coordinate.

A212

Estimates costs based upon the start of year material cost coordinate adjusted for when the product will emerge from R&D.

PriceScoreTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!ReliabilityRoughCutTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!ReliabilityScoreTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!AgeScoreTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!CombinedRoughCutsTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!ChannelBudgetsTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!Accessiblity StartGoodwill NewGoodWillTrad 0.43 #VALUE!Low 0.31 #VALUE!High 0.33 #VALUE!Pfmn 0.24 #VALUE!Size 0.27 #VALUE!AwarenessStart 0.61 0.54 0.47New #VALUE! #VALUE! #VALUE!Awareness #VALUE! #VALUE! #VALUE!SalesWeighted #VALUE! #VALUE! #VALUE!StdAwarenessFactor #VALUE! #VALUE! #VALUE!AwarenessFactorTrad #VALUE! #VALUE! #VALUE!AwarenessFactorLow #VALUE! #VALUE! #VALUE!AwarenessFactorHigh #VALUE! #VALUE! #VALUE!

AwarenessFactorPfmn #VALUE! #VALUE! #VALUE!AwarenessFactorSize #VALUE! #VALUE! #VALUE!StdSalesFactor #VALUE! #VALUE! #VALUE!SalesFactor #VALUE! #VALUE! #VALUE!Arpolicy #VALUE!FactorsTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!ProductRawScoresTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!FinalProductScoresTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!MarketShareUnitsTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!UnitDemandTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!Total #VALUE! #VALUE! #VALUE!EstSalesTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!Total #VALUE! #VALUE! #VALUE!EstMktShrTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!WtgCustBuyTrad #VALUE! #VALUE! #VALUE!

Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!WtgCustSurvTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!SegmentSales Trad Low High

0 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 0

EstIndustrySales Total 0Trad 0 0Low 0 0High 0 0Pfmn 0 0Size 0 0Total 0 0MktgUnitFcastAdjMktTime #VALUE! #VALUE! #VALUE!MktgUnitSales #VALUE! #VALUE! #VALUE!MktgGrossRevenue #VALUE! #VALUE! #VALUE!MktgCOG #VALUE! #VALUE! #VALUE!MktgGrossMargin #VALUE! #VALUE! #VALUE!MktgLessPromoAndSales #VALUE! #VALUE! #VALUE!

PRODUCTION/HRHRround 0 0 0OldComplement 0 0 0OldNeededComplement 0OldNewEmployees 0OldSeparatedEmployees 0OvertimeComplementPercent 0.0%OldTurnoverRate 0.0%OldRecruitingSpend 0OldTrainingHours 0WorkForceCaliberThisYr 0.00TrainingIndexThisYr 0.00ProductivityThisYr 0.00Complement #VALUE!

RecruitingSpend 800TrainingHours 30ManYearAdjTraining 2050APfactor 0.99ManHrsPerUnit #VALUE! #VALUE! #VALUE!CapacityThisYear 2500 2000 1100CapacityAdjR&Dintro 0 0 0ProductionAdjForCapacity 0 0 0ProductionAdjForAP 0.00000 0.00000 0.00000FirstShiftUnits 0 0 0SecondShiftUnits 0 0 0ManHours #VALUE! #VALUE! #VALUE!NeededComplement #VALUE! #VALUE! #VALUE!ExpectedFirstShiftComplement #VALUE! #VALUE! #VALUE!ExpectedSecondShiftComplement #VALUE! #VALUE! #VALUE!ActualFirstShiftComplement #VALUE! #VALUE! #VALUE!ActualSecondShiftComplement #VALUE! #VALUE! #VALUE!ActualFirstShiftOTComplement #VALUE! #VALUE! #VALUE!SecondShiftOrOvertimePercent #VALUE! #VALUE! #VALUE!ProductionAdjForComplement #VALUE! #VALUE! #VALUE!FirstShiftPayroll #VALUE! #VALUE! #VALUE!SecondOTPayroll #VALUE! #VALUE! #VALUE!OvertimeComplementPercent #VALUE!PlantUtilization #DIV/0!TurnoverRateThisYear #VALUE!EmployeeTurnoverThisYr #VALUE!NewRecruitsThisYear #VALUE!WorkForceCaliberNextYr #VALUE!TrainingIndexNextYr #VALUE!SeparatedEmployees #VALUE!ProductivityNextYr #VALUE!RecruitingCost #VALUE!SeparationCost #VALUE!TrainingCost #VALUE!TotalHRCost #VALUE!

AverageWageUnitCost #VALUE! #VALUE! #VALUE!BenefitCostPerUnit #VALUE! #VALUE! #VALUE!ProdLaborCostPerUnit #VALUE! #VALUE! #VALUE!ProdMaterialCost #VALUE! #VALUE! #VALUE!ProdUnitCost #VALUE! #VALUE! #VALUE!VariableMargin #VALUE! #VALUE! #VALUE!

NewInventoryValue #VALUE! #VALUE! #VALUE!

SELL_CAPACITYCapacitySold 0 0 0CapacityReduction% 0.0% 0.0% 0.0%PlantEquipmentChange 0 0 0WriteOff 0 0 0CashAdustment 0 0 0PlantAdjustment 0 0 0AccDeprAdjustment 0 0 0AdjustedPlantValue 55000 52000 19800AdjustedAccDepr -20240 -18720 -7920BUY_CAPACITYCapacityPurchased 0 0 0PlantEquipmentChange 0 0 0CashAdjustment 0 0 0AdjustedPlantValue 55000 52000 19800CapacityNextRound 2500 2000 1100BUY_AUTOMATIONChangedAutomation? 0 0 0PlantEquipmentChange 0 0 0CashAdjustment 0 0 0AdjustedPlantValue 55000 52000 19800TotalPlantEquipChng 0 0 0TotalCashAdjustment 0 0 0TotalPlantAdjustment 0 0 0TotalAccDeprAdjustment 0 0 0TotalAssetAdjustment 0 0 0DEPRECIATIONNewPlantFaceValue 55000 52000 19800PlantToDepreciate 55000 52000 19800NewDepreciation 3667 3467 1320INVENTORY_LIQUIDATIONProductKilled? 0 0 0UnitsLiquidated 0 0 0ValueLiquidation 0 0 0InventoryWriteoff 0 0 0InventoryRemaining 2108 645 262InventoryValue 39164 8719 6139FINANCETotalPlantInvestment 0SalesPlantEquipment 0MaxStockIssueThisYear 1680MaxStockRetireThisYear 420MaxCurrentDebtThisYear 6424BondSeriesNumber FaceValue Yield Close

0 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 0

0 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 0

Sums 0MaturingLTDebt 0RemainingLTDebt 0StartMaxBondIssue 78336MaxBondIssueThisYear 78336

PROFORMASTotalUnitsOnHand #VALUE! #VALUE! #VALUE!TotalInventoryValue #VALUE! #VALUE! #VALUE!Avg Unit Cost #VALUE! #VALUE! #VALUE!Units Sold #VALUE! #VALUE! #VALUE!InvenSold$ #VALUE! #VALUE! #VALUE!InvenUnitsRemaining #VALUE! #VALUE! #VALUE!InvenUnitsRemaining$ #VALUE! #VALUE! #VALUE!StockOut$ #VALUE! #VALUE! #VALUE!PROFORMA_INCOME_STATEMENT

Able Acre AdamSales #VALUE! #VALUE! #VALUE!Labor #VALUE! #VALUE! #VALUE!Material #VALUE! #VALUE! #VALUE!InventoryCarry #VALUE! #VALUE! #VALUE!TotalVariableCosts #VALUE! #VALUE! #VALUE!ContributionMargin #VALUE! #VALUE! #VALUE!Depreciation 3667 3467 1320R&D 0 0 0Promo 1000 900 800Sales 1000 900 800Admin/Other #VALUE! #VALUE! #VALUE!TotalPeriodCosts #VALUE! #VALUE! #VALUE!NetMargin #VALUE! #VALUE! #VALUE!BrokerageFeesWriteoffsTotalFees&WriteoffsEBITShortTermInterestLongInterestTaxesProfitSharingNetProfitPROFORMA_BALANCE_SHEETCash #VALUE! #VALUE!AR #VALUE! #VALUE!Inventory #VALUE! #VALUE!TotalCurrentAssets #VALUE! #VALUE!Plant&Equip 155600 #VALUE!

AccDepr -68053 #VALUE!TotalFixedAssets 87547 #VALUE!TotalAssets #VALUE! #VALUE!AP #VALUE! #VALUE!CurrentDebt #VALUE! #VALUE!LongTermDebt 0 #VALUE!TotalLiab #VALUE! #VALUE!CommonStock 46599 #VALUE!RetainedEarnings #VALUE! #VALUE!TotalEquity #VALUE! #VALUE!TotalLiab+Equity #VALUE! #VALUE!PROFORMA_CASHFLOWCash Flows from operations Profits/Employee Net Income (Loss) #VALUE! #VALUE! Depreciation&Writeoffs 10373 Chng current Assets/Liab Accounts Payable #VALUE! Inventory #VALUE! Accounts Receivable #VALUE!Net Cash From Operations #VALUE!NetPlantImprovements 0 #VALUE! <Free Cash FlowCash Flows from financial actions Dividends Paid 0 Sales of common stock 0 Purchase of common stock 0 Increase long term debt 0 Retire long term debt 0 Change current debt (net) #VALUE!Net cash from fin. actions #VALUE!NetChngInCash #VALUE!PROFORMA_RATIOSROS #VALUE!AssetTurnover #VALUE!ROA #VALUE! Debt/Equity Debt/AssetsLeverage #VALUE! #VALUE! #VALUE!ROE #VALUE!PriceEarnings #VALUE!Mkt/Book #VALUE!PROFORMA_STOCK_CALCULATIONNewSharesOutstanding 2848.0ProformaBookValue #VALUE!ProformaEPS #VALUE!EffectiveDividendPerShare #VALUE!AvgDividendPerShare #VALUE!CalculatedStockPrice #VALUE! #VALUE!ProformaStockPrice #VALUE!DividendYield #VALUE!DividendPayoutRatio #VALUE!ProformaMarketCap #VALUE! #VALUE! %TotalMarketMKT_SEGMENT_RPTS 5 0

0 2012 Size

Total Available Unit Sales 2347Actual Industry Unit Sales 2347Segment % of Total Industry 0.0914Growth Rate 0.183 0.183 Acc

0.00 0.350.00 0.360.00 0.390.00 0.440.00 0.350.00 0.420.00 Pfmn 4.7 Size 9.6 0.430.00 Ideal Age = 1.5 0.290.00 MTBF 16000-21000 0.190.00 $24.50 - 34.50 0.09

Perceptual Map TablePerformance Center 3.70Size Center 11.00

0.00 4.90 9.800.00 5.10 11.200.00 4.90 9.700.00 4.70 9.600.00 4.00 11.000.00 4.00 11.000.00 5.40 14.500.00 6.10 14.000.00 5.60 14.500.00 5.70 14.300.00 5.60 14.500.00 5.50 14.50

Potential Actual0.00 0.13 0.130.00 0.19 0.190.00 0.17 0.170.00 0.20 0.200.00 0.14 0.140.00 0.17 0.17

Name MShr UnSoldtoSeg RvDate0.00 0.19 443 2012.850.00 0.18 414 2012.600.00 0.16 371 2012.970.00 0.16 365 2012.950.00 0.13 294 2013.990.00 0.13 293 2009.400.00 0.02 40 2012.190.00 0.01 33 2012.450.00 0.01 28 2012.170.00 0.01 28 2012.310.00 0.01 25 2012.210.00 0.01 13 2008.90

Name Market Share Units Sold to Seg Revision Date

Able 0.1359 1030 1997.9

TQM MODULE 0 0 0TQMyear 1 2 3TQMround 0 0 0DecisionsCPIsystems 0Vendor/JIT 0QIT 0ChannelSupport 0ConcurrentEng 0Benchmarking 0QualityDeployment 0CCE/6SigmaTraining 0UNEPGreen 0GEMISustain 0TotalTQMExpenditures 0

OIdGoodwill OldValueTQMmaterialCost 0.00 0.00%TQMlaborCost 0.00 0.00%TQMcycleTime 0.00 0.00%TQMadmin 0.00 0.00%TQMDemand 0.00 0.00%MaterialCostReduction WorstCase BestCaseCPIsystems 0.00%Vendor/JIT 0.00%QIT 0.00%ChannelSupport 0.00%ConcurrentEng 0.00%Benchmarking 0.00%QualityDeployment 0.00%CCE/6SigmaTraining 0.00%UNEPGreen 0.00%GEMISustain 0.00%CombinedImpact #VALUE!ExpectedImprovement 0.0% 0.00%LaborCostReductionCPIsystems 0.00%Vendor/JIT 0.00%QIT 0.00%ChannelSupport 0.00%ConcurrentEng 0.00%Benchmarking 0.00%QualityDeployment 0.00%CCE/6SigmaTraining 0.00%UNEPGreen 0.00%GEMISustain 0.00%CombinedImpact #VALUE!ExpectedImprovement 0.0% 0.00%ReductionR&DCycleTime

CPIsystems 0.00%Vendor/JIT 0.00%QIT 0.00%ChannelSupport 0.00%ConcurrentEng 0.00%Benchmarking 0.00%QualityDeployment 0.00%CCE/6SigmaTraining 0.00%UNEPGreen 0.00%GEMISustain 0.00%CombinedImpact #VALUE!ExpectedImprovement 0.0% 0.00%ReductionAdminCostsCPIsystems 0.00%Vendor/JIT 0.00%QIT 0.00%ChannelSupport 0.00%ConcurrentEng 0.00%Benchmarking 0.00%QualityDeployment 0.00%CCE/6SigmaTraining 0.00%UNEPGreen 0.00%GEMISustain 0.00%CombinedImpact #VALUE!ExpectedImprovement 0.0% 0.00%DemandIncreaseCPIsystems 0.00%Vendor/JIT 0.00%QIT 0.00%ChannelSupport 0.00%ConcurrentEng 0.00%Benchmarking 0.00%QualityDeployment 0.00%CCE/6SigmaTraining 0.00%UNEPGreen 0.00%GEMISustain 0.00%CombinedImpact #VALUE!ExpectedImprovement 0.0% 0.00%TQMimpactTQMmaterialCost #VALUE!TQMlaborCost #VALUE!TQMcycleTime #VALUE!TQMadmin #VALUE!TQMDemand #VALUE!

MKTG_MODULE 0 0 0MktgYear 1 2 3MktgRound 0 0 0

MediaImpact Traditional Low End High EndPrintMedia 0.00 0.00 0.00

DirectMail 0.00 0.00 0.00WebMedia 0.00 0.00 0.00Email 0.00 0.00 0.00TradeShows 0.00 0.00 0.00Total 0.00 0.00 0.00

PromoDecisions Able Acre AdamPrimarySegment 1 2 3 PrintMedia 200 180 160DirectMail 200 180 160WebMedia 200 180 160Email 200 180 160TradeShows 200 180 160Total 1000 900 800

PromoParameters Rates Impressions XminPrintMedia 0 0 0DirectMail 0 0 0WebMedia 0 0 0Email 0 0 0TradeShows 0 0 0CostPerTradeShow 0CostPerReport 0

ImpressionsPrintMedia #DIV/0! #DIV/0! #DIV/0!DirectMail #DIV/0! #DIV/0! #DIV/0!WebMedia #DIV/0! #DIV/0! #DIV/0!Email #DIV/0! #DIV/0! #DIV/0!TradeShows #DIV/0! #DIV/0! #DIV/0!

ReachPrintMedia 0.00 0.00 0.00DirectMail 0.00 0.00 0.00WebMedia 0.00 0.00 0.00Email 0.00 0.00 0.00TradeShows 0.00 0.00 0.00AwarenessCreatedPrint Media #VALUE! #VALUE! #VALUE!Direct Mail #VALUE! #VALUE! #VALUE!Web Media #VALUE! #VALUE! #VALUE!Email #VALUE! #VALUE! #VALUE!Trade Shows #VALUE! #VALUE! #VALUE!Total #VALUE! #VALUE! #VALUE!MaxCategory #VALUE! #VALUE! #VALUE!Remainder #VALUE! #VALUE! #VALUE!DiscountedRemainder #VALUE! #VALUE! #VALUE!NewAwarenessCreated #VALUE! #VALUE! #VALUE!OldAwareness:Trad 0.000 0.000 0.000Low 0.000 0.000 0.000High 0.000 0.000 0.000

Pfmn 0.000 0.000 0.000Size 0.000 0.000 0.000OldAwarenessAfterDecay 0.000 0.000 0.000NewPrimaryAwareness #VALUE! #VALUE! #VALUE!AwarenessThisYear Able Acre AdamTrad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!AwarenessFactorTrad #VALUE! #VALUE! #VALUE!AwarenessFactorLow #VALUE! #VALUE! #VALUE!AwarenessFactorHigh #VALUE! #VALUE! #VALUE!AwarenessFactorPfmn #VALUE! #VALUE! #VALUE!AwarenessFactorSize #VALUE! #VALUE! #VALUE!

SALESMANSHIPSalesPriorities 24% 22% 20%SalesPrioritiesPositive 24% 22% 20%SalesPrioritiesDec 24% 22% 20%SalesBudget 0 0 0SalesFactor #VALUE! #VALUE! #VALUE!

SALES_PARAMETERS Costs Each Annual Contacts XminOutsideSales $0 0 0InsideSales $0 0 0Distributors $0 0 0

Ymax Trad Low HighOutsideSales 0% 0% 0%InsideSales 0% 0% 0%Distributors 0% 0% 0%

SalesDecisions Resources Trad LowOutsideSalesDec 2.00 2.00InsideSalesDec 6.00 6.00DistributorsDec 2.00 2.00MktgReports 0 0IncomingMktgReports 0 0

Budget Trad LowOutsideSales $0 $0 InsideSales $0 $0 Distributors $0 $0 MktgReport $0 $0 Total $0 $0

OutsideSalesGain #VALUE! #VALUE!InsideSalesGain #VALUE! #VALUE!DistributorsGain #VALUE! #VALUE!Total Gain #VALUE! #VALUE!

A818

In primary segment.

Accessibility Trad LowOld Old 42.8% 30.5%New New #VALUE! #VALUE!

MktgXBudgetFormulas PromoFormulas SalesFormulasAble 1000 0Acre 900 0Adam 800 0Aft 700 0Agape 700 0NA 0 0NA 0 0NA 0 0

MKTG_REPORT 1.00

CHART DATA

Perceptual Map Aging ChartAgeAtStartOfYear 0.00 0.00 0.00AgeBeforeRevision 0.00 0.00 0.00AgeAtRevision 0.00 0.00 0.00AgeAtEndOfYear 0.00 0.00 0.00AGING_CHART Able Acre Adam

1.00 0.002.00 0.002.00 0.002.00 0.002.00 0.003.00 0.003.00 0.003.00 0.003.00 0.004.00 0.004.00 0.004.00 0.004.005.005.005.005.006.006.006.006.006.006.007.007.007.007.00

8.008.008.008.009.00

MaterialCostChart Able Acre AdamOld #VALUE! #VALUE! #VALUE!New #VALUE! #VALUE! #VALUE!

Marketing Revenue ForecastName Margin After marketing Marketing Variable costsAble #VALUE! $2,000 #VALUE!Acre #VALUE! $1,800 #VALUE!Adam #VALUE! $1,600 #VALUE!Aft #VALUE! $1,400 #VALUE!Agape #VALUE! $1,400 #VALUE!NA #VALUE! $0 #VALUE!NA #VALUE! $0 #VALUE!NA #VALUE! $0 #VALUE!

Marketing Unit Sales ForecastAble Acre Adam

Trad #VALUE! #VALUE! #VALUE!Low #VALUE! #VALUE! #VALUE!High #VALUE! #VALUE! #VALUE!Pfmn #VALUE! #VALUE! #VALUE!Size #VALUE! #VALUE! #VALUE!Total #VALUE! #VALUE! #VALUE!

Capacity vs ProductionAble Acre Adam

Both Shifts 5000 4000 2200Base Capacity 2500 2000 1100Production #VALUE! #VALUE! #VALUE!

Unit Cost Breakdown Material Labor OvertimeEat $11.02 $7.84 $0.00 Ebb $7.37 $6.72 $0.66 Echo $15.27 $8.96 $0.00 Edge $15.21 $8.96 $0.00 Egg $12.99 $8.96 $0.00 NA $0.00 $0.00 $0.00 NA $0.00 $0.00 $0.00 NA $0.00 $0.00 $0.00 Unit Cost Breakdown

Able Acre AdamMaterial #VALUE! #VALUE! #VALUE!

Labor #VALUE! #VALUE! #VALUE!Margin #VALUE! #VALUE! #VALUE!

Balance Sheet AssetsCash #VALUE!Accounts Receivable #VALUE!Inventories #VALUE!Fixed $87,547 LiabilitiesAccounts Payable #VALUE!Current Debt #VALUE!Long Term Debt $0 Common Stock $46,599 Retained Earnings #VALUE!

Income Statement Able Acre AdamNet Margin #VALUE! #VALUE! #VALUE!Administrative / Other #VALUE! #VALUE! #VALUE!Marketing $1,000 $900 $800 Research & Development $0 $0 $0 Depreciation $3,667 $3,467 $1,320 Inventory Carrying costs #VALUE! #VALUE! #VALUE!Material #VALUE! #VALUE! #VALUE!Labor #VALUE! #VALUE! #VALUE!

Cash Flows From OperationsNet cash flow #VALUE!Accounts Receivable #VALUE!Inventories #VALUE!Accounts Payable #VALUE!Depreciation $10,373 Net income (loss) #VALUE!Net cash flow $0 Plant improvements $0 Net cash flow #VALUE!Change current debt #VALUE!Retire long term debt $0 New long term debt $0 Purchase of stock $0 Sales of stock $0 Dividends $0 Cash flow from Operations #VALUE!

Cash flow from Investing $0 Cash flow from Financial actions #VALUE!Net change in cash position #VALUE!

ROS #VALUE!Asset Turnover #VALUE!Leverage #VALUE!ROE #VALUE!

TQMcharts

Material 0.0% 0.0% 0.0%Labor 0.0% 0.0% 0.0%

R&D Cycle Time 0.0% 0.0% 0.0%

Admin 0.0% 0.0% 0.0%

Demand 0.0% 0.0% 0.0%

MktgXRpt0 0 0

Awareness 0 0 00 0 0

Accessibility 0 0 0

R&D Perceptual Map as a Chart

Series DataLabel X YTraditional Traditional 7.1 12.9Low End Low End 4.0 16.0High End High End 10.2 9.8Performance Performance 11.0 14.9Size Size 5.1 9.0Traditional Rough Traditional Rough 7.1 12.9Low End Rough Low End Rough 4.0 16.0High End Rough High End Rough 10.2 9.8Performance Rough Performance Rough 11.0 14.9Size Rough Size Rough 5.1 9.0P1 Able 5.1 14.7P2 Acre 2.0 16.8P3 Adam 7.5 11.9P4 Aft 8.9 15.2P5 Agape 4.0 11.0P6 0.0 0.0P7 0.0 0.0P8 0.0 0.0R1 5.1 14.7R2 2.0 16.8R3 7.5 11.9

R4 8.9 15.2R5 4.0 11.0R6 0.0 0.0R7 0.0 0.0R8 0.0 0.0

Courier Perceptual MapSeries DataLabel X YTraditional Traditional 0 0Low End Low End 0 0High End High End 0 0Performance Performance 0 0Size Size 0 0Traditional Rough Traditional Rough 0 0Low End Rough Low End Rough 0 0High End Rough High End Rough 0 0Performance Rough Performance Rough 0 0Size Rough Size Rough 0 0A1 0 0 0A2 0 0 0A3 0 0 0A4 0 0 0A5 0 0 0A6 0 0 0A7 0 0 0A8 0 0 0B1 0 0 0B2 0 0 0B3 0 0 0B4 0 0 0B5 0 0 0B6 0 0 0B7 0 0 0B8 0 0 0C1 0 0 0C2 0 0 0C3 0 0 0C4 0 0 0C5 0 0 0C6 0 0 0C7 0 0 0C8 0 0 0D1 0 0 0D2 0 0 0D3 0 0 0D4 0 0 0D5 0 0 0D6 0 0 0D7 0 0 0D8 0 0 0E1 0 0 0

E2 0 0 0E3 0 0 0E4 0 0 0E5 0 0 0E6 0 0 0E7 0 0 0E8 0 0 0F1 0 0 0F2 0 0 0F3 0 0 0F4 0 0 0F5 0 0 0F6 0 0 0F7 0 0 0F8 0 0 0

Courier Segment Perceptual MapSeries DataLabel X YInnerSegment 0 3.7 11OuterSegment 3.7 11P1 0.00 4.9 9.8P2 0.00 5.1 11.2P3 0.00 4.9 9.7P4 0.00 4.7 9.6P5 0.00 4 11P6 0.00 4 11P7 0.00 5.4 14.5P8 0.00 6.1 14P9 0.00 5.6 14.5P10 0.00 5.7 14.3P11 0.00 5.6 14.5P12 0.00 5.5 14.5

TimesOnlineGraphicScreens Xcoord Ycoord1124 RandD 0 0

18 RandD_F 0 0Mktg 0 0Mktg_F 0 0MktgX 0 0Production 0 0Production_F 0 0Labor 0 0TQM 0 0

Finance 0 0BalanceSheet 0 0IncomeStatement 0 0IncomeStatement_F 0 0CashFlow 0 0ProformaScorecard 0 0Ratios 0 0DecSummary 0 0DecSummary_F 0 0

EXCEL DEFAULTS.StandardFont Arial Button Faces.StandardFontSize 10.DisplayFormulaBar 1.TransitionNavigKeys 0.EditDirectlyInCell 1.CellDragAndDrop 1.MoveAfterReturn 0.FixedDecimal 0.FixedDecimalPlaces 2.Calculation -4105.ShowToolTips 1.LargeButtons 0.ColorButtons 1.DisplayFullScreen 0.DisplayStatusBar 1.DisplayCommentIndicator -1

ProtectedEntrySheetsListLogoMktgMktgXRandDLaborProductionFinanceTQMBalanceSheetIncomeStatementCashFlowRatiosDecSummaryCourier1Courier2Courier3Courier4

CourierSegCourier10Courier12Courier11AnnRpt1AnnRpt2RandD_FMktg_FDecSummary_FProduction_FIncomeStatement_FAnnRpt2_FProformaScorecard

CommandBarNames CommandBarsFullScrCommandBarsFullScreenOnWorksheet Menu Bar 1 0Chart Menu Bar 0 0Standard 0 0Formatting 0 0PivotTable 0 0Chart 0 0Reviewing 0 0Forms 0 0Stop Recording 0 0External Data 0 0Formula Auditing 0 0Full Screen 0 0Circular Reference 0 0Visual Basic 0 0Web 0 0Control Toolbox 0 0Exit Design Mode 0 0Refresh 0 0Watch Window 0 0PivotTable Field List 0 0Borders 0 0Protection 0 0Text To Speech 0 0List 0 0Compare Side by Side 0 0Drawing 0 0WordArt 0 0Picture 0 0Drawing Canvas 0 0Organization Chart 0 0Diagram 0 0Ink Drawing and Writing 0 0Ink Annotations 0 0PivotChart Menu 0 0

Workbook tabs 0 0Cell 0 0Column 0 0Row 0 0Cell 0 0Column 0 0Row 0 0Ply 0 0XLM Cell 0 0Document 0 0Desktop 0 0Nondefault Drag and Drop 0 0AutoFill 0 0Button 0 0Dialog 0 0Series 0 0Plot Area 0 0Floor and Walls 0 0Trendline 0 0Chart 0 0Format Data Series 0 0Format Axis 0 0Format Legend Entry 0 0Formula Bar 0 0PivotTable Context Menu 0 0Query 0 0Query Layout 0 0AutoCalculate 0 0Object/Plot 0 0Title Bar (Charting) 0 0Layout 0 0Pivot Chart Popup 0 0Phonetic Information 0 0Auto Sum 0 0Paste Special Dropdown 0 0Find Format 0 0Replace Format 0 0List Range Popup 0 0List Range Layout Popup 0 0XML Range Popup 0 0List Range Layout Popup 0 0Shadow Settings 0 03-D Settings 0 0Borders 0 0Borders 0 0Draw Border 0 0Chart Type 0 0Pattern 0 0Font Color 0 0Fill Color 0 0Line Color 0 0

Drawing and Writing Pens 0 0Annotation Pens 0 0Drawing and Writing Pens 0 0Annotation Pens 0 0Order 0 0Nudge 0 0Align or Distribute 0 0Rotate or Flip 0 0Lines 0 0Connectors 0 0AutoShapes 0 0Callouts 0 0Flowchart 0 0Block Arrows 0 0Stars & Banners 0 0Basic Shapes 0 0Insert Shape 0 0Shapes 0 0Inactive Chart 0 0Excel Control 0 0Curve 0 0Curve Node 0 0Curve Segment 0 0Pictures Context Menu 0 0OLE Object 0 0ActiveX Control 0 0WordArt Context Menu 0 0Rotate Mode 0 0Connector 0 0Script Anchor Popup 0 0Canvas Popup 0 0Organization Chart Popup 0 0Diagram 0 0Layout 0 0Select 0 0Task Pane 0 0 0 0Add Command 0 0Built-in Menus 0 0Clipboard 0 0Envelope 0 0Online Meeting 0 0CapstoneMenu 1 0CapstoneToolbar 0 0XML Source 0 0Research 0 0XML Document 0 0Signatures 0 0Document Actions 0 0Clip Art 0 0Selection and Visibility 0 0

Document Management 0 0Document Updates 0 0Mail Merge Panes 0 0Fax Service 0 0Meeting Workspace 0 0Attachment Options 0 0Ribbon Adapter 0 0Add Command 0 0Built-in Menus 0 0Clipboard 0 0Envelope 0 0Online Meeting 0 0 0 0CapstoneMenu 1 0CapstoneToolbar 1 0Status Bar 1 0Ribbon 1 0

Courier Legends TranslatedCourier1Variable costsDepreciationSG&AOtherProfit

Courier4CapacityProduction

Courier10Unit salesUnit demandTrad TraditionalLow Low EndHigh High EndPfmn PerformanceSize Size

AnnRpt1OperationsInvestmentsFinancingChange

CourierSegActualPotential

Black - a formula or label - example Current Cash positionRed - a formula that should NOT be copied because some element of it is unique.Pink - reference to the StartingConditions.txt file

Green - something calculated by a VB routine.

Saving the workbookSet SimulationName to "Capstone", "Foundation", or "CompXM"Set SpecialEdition to Empty or "Harvard" (or some other special edition)Set SpreadsheetVersion to match "xlWebQueryVersionInfo.cfm" on websiteIf saving to a new name (example, from Capstone_01.xls to Capstone_02.xls, set SaveFlag to 1 and save manually.Do Ctrl-Shift-P to package workbook. This removes all SimID specifics.

< StudentName for EXAM

CompOrPrac Practice

0

0 0 0 0 01 1 1 1 10 0 0 0 00 0 0 0 01 1 1 1 1

10.1% 10.0%

0.29 0.430.19 0.090.09 0.290.43 0.19

Pfmn Size 10.5 4.75

15.25 9.5Pfmn Size

11 5.114.9 9

1.4 1-1 -1.4

28.5 28.55 51 1.5

1.1 1.122000 1600027000 21000

5000 50000.41 0.41 0.00 0.00 0.00

0.24 0.27

Aft Agape NA NA NA8.9 4 0 0 0

8.9 4 0 0 015.2 11 0 0 015.2 11 0 0 0

25000 19000 0 0 025000 19000 0 0 0

0 0 0 0 033 33 0 0 0

700 700 0 0 0700 700 0 0 0

0 0 0 0 0416 545 0 0 0800 800 0 0 03.0 3.0 0.0 0.0 0.0

2013.200 2013.151 0.000 0.000 0.0002013 2013 0 0 0

2012.0201 2011.9636 0 0 011 265 0 0 0

258 5688 0 0 014400 14400 0 0 0-5400 -5400 0 0 0

0 00 00 00 00 00 0

0 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 00 0 00 0 00 0 0

Aft Agape NA NA NA8.9 4.0 0.0 0.0 0.0

15.2 11.0 0.0 0.0 0.025000 19000 0 0 0

33.00 33.00 0.00 0.00 0.00700 700 0 0 0700 700 0 0 0

0 0 0 0 0420 550 0 0 0

0 0 0 0 03.0 3.0 0.0 0.0 0.0

0 0 0 0 00 0 0 0 01 1 0 0 00 0 0 0 00 0 0 0 0

0 0 0 0 0#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

0.00 0.00 0.00 0.00 0.000 0 0 0 00 0 0 0 00 0 0 0 0

0.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00

0 0 0 0 0

Aft Agape NA NA NA#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

0.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00

2013.20 2013.15 0.00 0.00 0.00$0 $0 $0 $0 $0

0.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.001.00 1.00 0.00 0.00 0.000.00 0.00 1.00 1.00 1.000.59 0.59 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00

1 1 0 0 0#VALUE! #VALUE! 0.00 0.00 0.00

7.50 5.70 0.00 0.00 0.00#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! 0.00 0.00 0.00

7.50 5.70 0.00 0.00 0.00#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

8.9 4 0 0 015.2 11 0 0 0

25000 19000 0 0 00.5 0.5 0.5 0.5 0.5

33.00 33.00 0.00 0.00 0.001 1 0 0 00 0 0 0 0

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!











StdAccessFactor Mktg2AccessFactor AccessFactor SalesWeighted#VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE!

#VALUE!0.41 0.41 0.00 0.00 0.00

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!





#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!



#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!


Perf Size0 00 00 00 00 00 00 00 00 00 00 00 0


0 0 0 0 0

#VALUE! #VALUE! 0.00 0.00 0.00800 800 0 0 0

0 0 0 0 00 0 0 0 0

0.00000 0.00000 0.00000 0.00000 0.000000 0 0 0 00 0 0 0 0

#VALUE! #VALUE! 0 0 0#VALUE! #VALUE! 0 0 0#VALUE! #VALUE! 0 0 0#VALUE! #VALUE! 0 0 0#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! 0.00 0.00 0.00


0 0 0 0 00.0% 0.0% 0.0% 0.0% 0.0%

0 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 0

14400 14400 0 0 0-5400 -5400 0 0 0

0 0 0 0 00 0 0 0 00 0 0 0 0

14400 14400 0 0 0800 800 0 0 0

0 0 0 0 00 0 0 0 00 0 0 0 0

14400 14400 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 0

14400 14400 0 0 014400 14400 0 0 0

960 960 0 0 0

0 0 1 1 10 0 0 0 00 0 0 0 00 0 0 0 0

11 265 0 0 0258 5688 0 0 0

IntRate MktValue Balance AdjFace LongTermInterest0 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 0

0 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 00 0 0 0 0

0 0 0 0

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Aft Agape NA NA NA#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

960 960 0 0 00 0 0 0 0

700 700 0 0 0700 700 0 0 0

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

ending cash e-loan#VALUE! #VALUE! #VALUE!

Assets/Employee#VALUE!

#VALUE! WorkingCapital#VALUE! Sales/Day#VALUE! DaysOfWrkCap

OLD0

#VALUE!

New Stock Calc=BV|RE per share #VALUE! #VALUE!+ 3|5* EPS #VALUE! #VALUE!+ 2|3* old EPS, >=0 #VALUE! 0+ Avg Dividend, >=0 #VALUE! #VALUE!0.1 times if eloan MinELoanImpact #VALUE! #VALUE!Book Value / 2 ImpactFloor #VALUE! #VALUE!Eloan per share #VALUE! #VALUE!Impact Temp #VALUE! #VALUE!Impact Floor #VALUE! #VALUE!End Price, >=1 #VALUE! #VALUE!

StockOut Pfmn Size Price MTBF 4.9 9.8 34.50 19000 5.1 11.2 34.50 19000 4.9 9.7 32.50 18000 4.7 9.6 34.50 19000 4.0 11.0 34.50 19000 4.0 11.0 33.00 19000 5.4 14.5 29.50 17000 6.1 14.0 29.50 17800 5.6 14.5 29.50 17500 5.7 14.3 27.50 15000 5.6 14.5 27.50 16500 5.5 14.5 28.00 17500

Stock Out Pfmn Coord Size Coord List Price MTBF

5.5 14.5 28 17500

0 0 0 0 04 5 6 7 80 0 0 0 0

NOTES:Material Cost Savings in 2 years = $3 million Material Cost/Year is about $40 million.

Therefore, savings per year is $1.5 million, or about 3.75%

LaborCostSavings in 2 years = $4 millionLaborCost/Year is about $31 millionTherefore, savings per year is $2 million or about 6.4%

Cycle Time Reduction

Assume average 5 projects or $5M/yearSavings is $1.5 million/year, or 30% reduction in cycle time per year.

2000 100% ConcurrentEng

1000 50% QualityDep3000 Total

Reduction Admin CostsAssume Inv Carry and Admin total $3 million Per year

Savings is $1.5 million/year, or 50% reduction in OH.2000 100% Benchmarking1000 50% Vendor JIT3000 Total

Demand Increase

Profit gain must be $1.6M/yr. Gross Margin is about 30%.Therefore, Demand must increase about $1.6/30% = $5.3 million.

2000 100% Channel Support1000 50% Quality Deployment200 10% CCE/6Sigma

3200 Total

0 0 0 0 04 5 6 7 80 0 0 0 0

Performance Size0.00 0.00 0.00 Traditional

0.00 0.00 0.00 Low End0.00 0.00 0.00 High End0.00 0.00 0.00 Performance0.00 0.00 0.00 Size0.00 0.00

Aft Agape NA NA NA4 5 0 0 0

140 140 0 0 0140 140 0 0 0140 140 0 0 0140 140 0 0 0140 140 0 0 0700 700 0 0 0

Xmax Ymin Ymax Shape0 0 0 00 0 0 00 0 0 00 0 0 00 0 0 0

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

0.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

0.000 0.000 0.000 0.000 0.0000.000 0.000 0.000 0.000 0.0000.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.0000.000 0.000 0.000 0.000 0.0000.000 0.000 0.000 0.000 0.000

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Aft Agape NA NA NA

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

17% 17% 0% 0% 0%17% 17% 0% 0% 0%17% 17% 0% 0% 0%

0 0 0 0 0#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Xmax Ymin Ymax Shape$0 0 0.0% 0$0 0 0.0% 0$0 0 0.0% 0

Pfmn Size0% 0%0% 0%0% 0%

High Pfmn Size Total2.00 2.00 2.00 10.005.00 5.00 5.00 27.003.00 3.00 3.00 13.00

0 0 00 0 0

High Pfmn Size Total (000)$0 $0 $0 $0$0 $0 $0 $0$0 $0 $0 $0$0 $0 $0 $0$0 $0 $0 $0

#VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE!

High Pfmn Size32.5% 23.5% 27.2%

#VALUE! #VALUE! #VALUE!

0.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00

Aft Agape NA NA NA

0.000.000.000.00

0.000.000.000.00

0.000.000.000.00

0.000.000.00

0.000.000.000.000.00

Aft Agape NA NA NA#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Aft Agape NA NA NA#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Aft Agape NA NA NA1600 1600 0 0 0800 800 0 0 0


Margin$9.14 $6.25

$13.78 $8.83

$11.06 $0.00 $0.00 $0.00

Aft Agape NA NA NA#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! $0.00 $0.00 $0.00

Aft Agape NA NA NA#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

$700 $700 $0 $0 $0 $0 $0 $0 $0 $0

$960 $960 $0 $0 $0 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

0.0% 0.0% 0.0%0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

0 0 0 0 00 0 0 0 00 0 00 0 0

RelativeDiameter555558888844444444444

44444


444444444444444


Xcoord Ycoord590 1590 1460 1460 1560 1545 1615 1515 1675 1

395 1575 1575 1400 1550 1595 1415 1470 1300 1

Cells for Border changingAllRandDdecisionsAllRandDdecisions_FAllMktgDecisionsAllMktgDecisions_FAllMktgXDecisionsAllProductionDecisionsAllProductionDecisions_FAllLaborDecisionsAllTQMDecisionsAllFinanceDecisions

If saving to a new name (example, from Capstone_01.xls to Capstone_02.xls, set SaveFlag to 1 and save manually.

01001

329159968

-57680

0

0

$0

OldMktgMTBF1750014000230002500019000

000

Total#VALUE!#VALUE!#VALUE!#VALUE!#VALUE!

WtgAccess

rawAwareness#VALUE!

Competitors-20.00 #VALUE!-20.00 #VALUE!-20.00 #VALUE!-20.00 #VALUE!-20.00 #VALUE!

SegmentUnitDemand9611

12488402133023269

#VALUE!Total Segment

#VALUE! 0#VALUE! 0#VALUE! 0#VALUE! 0#VALUE! 0#VALUE! #VALUE! MktShr

0 ProductCount

#VALUE!

#VALUE!#VALUE!#VALUE!#VALUE!#VALUE! CustomerBuyingCriteria#VALUE!#VALUE!#VALUE!#VALUE!#VALUE!#VALUE! WtgCustSurvey

#VALUE!#VALUE!#VALUE!#VALUE!#VALUE!

720000

0.0000000

#VALUE!#VALUE!#VALUE!#VALUE!#VALUE!#VALUE!#VALUE!

#VALUE!#VALUE!#VALUE!

#VALUE!

00000

155600-57680

0

0

00

0

155600

10373

000

329159968

#VALUE!

#VALUE!#VALUE!

Total $Sales Sales/Employee#VALUE! #VALUE! #VALUE! #VALUE!#VALUE! #VALUE!#VALUE! #VALUE!#VALUE! #VALUE!#VALUE! #VALUE!#VALUE! #VALUE!

10373 #VALUE!0 #VALUE!

4100 #VALUE!4100 #VALUE! SG&A%ofSales

#VALUE! #VALUE! #VALUE!#VALUE! #VALUE!#VALUE! #VALUE!

0 #VALUE!0 #VALUE!0 #VALUE!

#VALUE! #VALUE!0 #VALUE!0 #VALUE!

#VALUE! #VALUE!#VALUE! #VALUE!#VALUE! #VALUE!#VALUE! rawProfits#VALUE! operatingProfit

#VALUE!#VALUE!

AgeDec.31 Promo Sales Aware1.9 1100 1263 0.5512.0 1300 708 0.6121.8 1000 1016 0.5201.8 1000 1175 0.5203.6 900 725 0.4873.6 700 700 0.4252.5 1300 1362 0.6752.3 1100 1330 0.6152.5 1100 1175 0.6152.4 1100 1070 0.6152.4 1050 1015 0.5994.1 1000 1000 0.583

Age Dec.31 Promo Budget Sales Budget Customer Awareness

3.1 1009 979 0.6103

Total

820820820820820

4100

100%

0

0 0 0 00 0 0 0

DecSurv Access37 0.43615 0.355934 0.391137 0.4181

6 0.34866 0.3451 0.35591 0.43610 0.41811 0.39110 0.34860 0.345

Customer AccessDecember Customer Survey

DECISIONS Andrews 1 0 2000 MEDIUMProductName Able Acre Adam Aft Agape NA NaRetireProduct 0 0 0 0 0 0 0XcoordinateRD 5.7 3 7.5 8.9 4.5 0 0YcoordinateRD 14.3 17 11.9 15.2 10.1 0 0MTBFrdSpec 17500 14000 23000 25000 19500 0 0Price 29 21.5 39 34.5 34.5 0 0PromoBudget 1250 1200 950 950 1000 0 0SalesBudget 1400 1300 1200 1000 1300 0 0UnitSalesForecast 1400 2100 400 400 400 0 0ProductionOrdered 1320 2200 400 400 350 0 0CapacityChange 0 0 0 0 0 400 0AutomationNextRound 5 6 4 4 4 4 0FinanceFunction StIssue StRetire Dividend ShortDebt BondRetir BondIssue ARFinanceDecisions 1300 0 1 0 0 12000 30LaborNegotiation TechWageAsmbWage Benefits ProfitShr AnnRaiseComplmentRecrSpendOffer1 20 0 2500 0.02 0.05 721.2428 0Offer2 22 0 2750 0.022 0.055 0 0TQMfunction CPI VendorJIT QIT Channels CCEBenchMark QFDETQMbudgets 0 0 0 0 0 0 0MKTGPrimarySeg 1 2 3 4 5 0 0MKTGPrintMedia 200 180 160 140 140 0 0MKTGDirectMail 200 180 160 140 140 0 0MKTGWebMedia 200 180 160 140 140 0 0MKTGEmail 200 180 160 140 140 0 0MKTGTradeShows 200 180 160 140 140 0 0MKTGSalesPriorities 0.24 0.22 0.2 0.17 0.17 0 0MKTGOutsideSales 11 0.2 0.2 0.2 0.2 0.2MKTGInsideSales 27 0.2 0.2 0.2 0.2 0.2MKTGDistributors 14 0.2 0.2 0.2 0.2 0.2MKTGReports 0 0 0 0 0 0FeesAndNewCapital 0 0Capstone Rehearsal Round 2 DecisionsDECISIONS Andrews 1 2 2006 C10016ProductName Able Acre Adam Aft Agape NA NaRetireProduct 0 0 0 0 0 0 0XcoordinateRD 6.5 3 7.5 8.9 5.1 0 0YcoordinateRD 13.5 17 11.9 15.2 9.2 0 0MTBFrdSpec 17500 14000 23000 25000 19500 0 0Price 28.5 21.5 38.00 33.00 34 0.00 0PromoBudget 1475 1500 800 700 1320 0 0SalesBudget 1600 1475 800 700 1500 0 0UnitSalesForecast 1600 2100 0 0 575 0 0ProductionOrdered 1800 2100 600 650 675 450 0CapacityChange 0 0 0 40 45 0 0AutomationNextRound 6 7 4 4 4.5 4 0FinanceFunction StIssue StRetire Dividend ShortDebt BondRetir BondIssue ARFinanceDecisions 6000 0 1.35 6000 0 6000 30LaborNegotiation TechWageAsmbWage Benefits ProfitShr AnnRaiseComplmentRecrSpend

A1

Daniel Smith: These are the teammate decisions for Tutorial Round 1. After the decisions arrive in the DECISIONSINCOMING area, they are copied to the student entry worksheets. All decisions pass through the DecisionsIncoming block on their way to the entry sheets. Therefore, for the tutorial, we use the decisions in the TutorialDecisions worksheet to update those in DecisionsIncoming. There an automatic check in routine CopyDecisionsIncomingToEntrySheets that looks for a Tutorial Simulation, and if it finds one, calls one of the following routines:' TutorialTeammatesFoundationRound1 TutorialTeammatesFoundationRound2 TutorialTeammatesFoundationRound3 or their equivalent Capstone tutorial routines. These routines update the DecisionsIncoming just before they are plugged into the workbook.

G16

Daniel Smith: If the student decides to invest in Able plant, it borrows the money. Teammate decisions were funded entirely with equity.

G49


B50

Daniel Smith: Range TutorialCapstoneR2c teammates decisions.

Offer1 21 0 2500 0.02 0.05 814 0Offer2 23.1 0 2750 0.022 0.055 0 0TQMfunction CPI VendorJIT QIT Channels CCEBenchMark QFDETQMbudgets 0 0 0 0 0 0 0MKTGPrimarySeg 1 2 3 4 5 0 0MKTGPrintMedia 400 240 180 160 160 0 0MKTGDirectMail 400 240 180 160 160 0 0MKTGWebMedia 400 240 180 160 160 0 0MKTGEmail 400 240 180 160 160 0 0MKTGTradeShows 400 240 180 160 160 0 0MKTGSalesPriorities 0.24 0.22 0.2 0.17 0.17 0 0MKTGOutsideSales 18 0.2 0.2 0.2 0.2 0.2MKTGInsideSales 43 0.2 0.2 0.2 0.2 0.2MKTGDistributors 21 0.2 0.2 0.2 0.2 0.2MKTGReports 0 0 0 0 0 0FeesAndNewCapital 0 0Capstone Rehearsal Round 3 DecisionsDECISIONS Andrews 1 2 2006 C10016ProductName Able Acre Adam Aft Agape NA NaRetireProduct 0 0 0 0 0 0 0XcoordinateRD 7.2 3 7.5 8.9 5.7 0 0YcoordinateRD 12.9 17 11.9 15.2 8.3 0 0MTBFrdSpec 17500 14000 23,000 25,000 19500 0 0Price 28 19.99 38 33 33.5 0 0PromoBudget 1700 1775 800 700 1550 0 0SalesBudget 1800 1775 800 700 1650 0 0UnitSalesForecast 1650 2300 0 0 600 0 0ProductionOrdered 1600 2400 500 420 615 0 0CapacityChange 0 0 0 0 45 0 0AutomationNextRound 7 7.8 3 3 5 0 0FinanceFunction StIssue StRetire Dividend ShortDebt BondRetir BondIssue ARFinanceDecisions 0 0 2.1 0 0 4500 30LaborNegotiation TechWageAsmbWage Benefits ProfitShr AnnRaiseComplmentRecrSpendOffer1 21 0 2500 0.02 0.05 814 0Offer2 23.1 0 2750 0.022 0.055 0 0TQMfunction CPI VendorJIT QIT Channels CCEBenchMark QFDETQMbudgets 0 0 0 0 0 0 0MKTGPrimarySeg 1 2 3 4 5 0 0MKTGPrintMedia 400 240 180 160 160 0 0MKTGDirectMail 400 240 180 160 160 0 0MKTGWebMedia 400 240 180 160 160 0 0MKTGEmail 400 240 180 160 160 0 0MKTGTradeShows 400 240 180 160 160 0 0MKTGSalesPriorities 0.24 0.22 0.2 0.17 0.17 0 0MKTGOutsideSales 18 0.2 0.2 0.2 0.2 0.2MKTGInsideSales 43 0.2 0.2 0.2 0.2 0.2MKTGDistributors 21 0.2 0.2 0.2 0.2 0.2MKTGReports 0 0 0 0 0 0FeesAndNewCapital 0 0Capstone Rehearsal Round 4 Decisions

G82


B83


DECISIONS Andrews 1 2 2006 C10016ProductName Able Acre Adam Aft Agape NA NaRetireProduct 0 0 0 0 0 0 0XcoordinateRD 7.8 4.3 7.5 8.9 6.3 0 0YcoordinateRD 12.1 15.7 11.9 15.2 7.2 0 0MTBFrdSpec 17500 14000 23,000 25,000 19500 0 0Price 27.5 19.5 38 33 33 0 0PromoBudget 1900 1935 800 700 1775 0 0SalesBudget 2000 1950 800 700 1850 0 0UnitSalesForecast 1900 2500 0 0 800 0 0ProductionOrdered 2050 2675 500 420 930 0 0CapacityChange 50 230 0 0 125 0 0AutomationNextRound 7 7.8 3 3 5 0 0FinanceFunction StIssue StRetire Dividend ShortDebt BondRetir BondIssue ARFinanceDecisions 0 0 0 0 0 0 30LaborNegotiation TechWageAsmbWage Benefits ProfitShr AnnRaiseComplmentRecrSpendOffer1 21 0 2500 0.02 0.05 814 0Offer2 23.1 0 2750 0.022 0.055 0 0TQMfunction CPI VendorJIT QIT Channels CCEBenchMark QFDETQMbudgets 0 0 0 0 0 0 0MKTGPrimarySeg 1 2 3 4 5 0 0MKTGPrintMedia 400 240 180 160 160 0 0MKTGDirectMail 400 240 180 160 160 0 0MKTGWebMedia 400 240 180 160 160 0 0MKTGEmail 400 240 180 160 160 0 0MKTGTradeShows 400 240 180 160 160 0 0MKTGSalesPriorities 0.24 0.22 0.2 0.17 0.17 0 0MKTGOutsideSales 18 0.2 0.2 0.2 0.2 0.2MKTGInsideSales 43 0.2 0.2 0.2 0.2 0.2MKTGDistributors 21 0.2 0.2 0.2 0.2 0.2MKTGReports 0 0 0 0 0 0FeesAndNewCapital 0 0

Foundation Rehearsal Round 1 DecisionsDECISIONS Andrews 1 0 2000 MEDIUMProductName Able Acre Na Na Na NA NARetireProduct 0 0 0 0 0 0 0XcoordinateRD 5.1 2 0 0 0 0 0YcoordinateRD 14.7 16.8 0 0 0 0 0MTBFrdSpec 17500 14000 0 0 0 0 0Price 35 0 0 0 0 0 0PromoBudget 1200 0 0 0 0 0 0SalesBudget 1300 0 0 0 0 0 0UnitSalesForecast 1300 0 0 0 0 0 0ProductionOrdered 1326 0 0 0 0 0 0CapacityChange 0 300 0 0 0 0 0AutomationNextRound 4 3 0 0 0 0 0

B116


A137

Daniel Smith: These are the teammate decisions for Tutorial Round 1. After the decisions arrive in the DECISIONSINCOMING area, they are copied to the student entry worksheets. All decisions pass through the DecisionsIncoming block on their way to the entry sheets. Therefore, for the tutorial, we use the decisions in the TutorialDecisions worksheet to update those in DecisionsIncoming. There an automatic check in routine CopyDecisionsIncomingToEntrySheets that looks for a Tutorial Simulation, and if it finds one, calls one of the following routines:' TutorialTeammatesFoundationRound1 TutorialTeammatesFoundationRound2 TutorialTeammatesFoundationRound3 or their equivalent Capstone tutorial routines. These routines update the DecisionsIncoming just before they are plugged into the workbook.

FinanceFunction StIssue StRetire Dividend ShortDebt BondRetir BondIssue ARFinanceDecisions $2,000 0 0.75 1000 0 $4,000 30LaborNegotiation TechWageAsmbWage Benefits ProfitShr AnnRaiseComplmentRecrSpendOffer1 20 0 2500 0.02 0 250 0Offer2 22 0 2750 0.022 0 0 0TQMfunction CPI VendorJIT QIT Channels CCEBenchMark QFDETQMbudgets 0 0 0 0 0 0 0MKTGPrimarySeg 0 0 0 0 0 0 0MKTGPrintMedia 200 0 0 0 0 0 0MKTGDirectMail 200 0 0 0 0 0 0MKTGWebMedia 200 0 0 0 0 0 0MKTGEmail 200 0 0 0 0 0 0MKTGTradeShows 200 0 0 0 0 0 0MKTGSalesPriorities 0 0 0 0 0 0 0MKTGOutsideSales 2 0.2 0.2 0.2 0.2 0.2MKTGInsideSales 6 0.2 0.2 0.2 0.2 0.2MKTGDistributors 3 0.2 0.2 0.2 0.2 0.2MKTGReports 0 0 0 0 0 0FeesAndNewCapital 0 0Foundation Rehearsal Round 2 DecisionsDECISIONS Andrews 1 2 2006 C10016ProductName Able Acre NA NA NA NA NARetireProduct 0 0 0 0 0 0 0XcoordinateRD 5.1 2 0 0 0 0 0YcoordinateRD 14.7 16.8 0 0 0 0 0MTBFrdSpec 17500 14000 0 0 0 0 0Price 28.00 21.00 0 0 0 0 0PromoBudget 1000 900 0 0 0 0 0SalesBudget 1000 900 0 0 0 0 0UnitSalesForecast 0 0 0 0 0 0 0ProductionOrdered 1600 300 0 0 0 0 0CapacityChange 100 100 0 0 0 0 0AutomationNextRound 5 4 0 0 0 0 0FinanceFunction StIssue StRetire Dividend ShortDebt BondRetir BondIssue ARFinanceDecisions $3,000 0 0.75 3000 0 $3,500 30LaborNegotiation TechWageAsmbWage Benefits ProfitShr AnnRaiseComplmentRecrSpendOffer1 20 0 2500 0.02 0 257 0Offer2 22 0 2750 0.022 0 0 0TQMfunction CPI VendorJIT QIT Channels CCEBenchMark QFDETQMbudgets 0 0 0 0 0 0 0MKTGPrimarySeg 2 0 0 0 0 0 0MKTGPrintMedia 300 0 0 0 0 0 0MKTGDirectMail 300 0 0 0 0 0 0MKTGWebMedia 300 0 0 0 0 0 0MKTGEmail 300 0 0 0 0 0 0MKTGTradeShows 300 0 0 0 0 0 0MKTGSalesPriorities 0 0 0 0 0 0 0MKTGOutsideSales 4 0.2 0.2 0.2 0.2 0.2MKTGInsideSales 10 0.2 0.2 0.2 0.2 0.2MKTGDistributors 5 0.2 0.2 0.2 0.2 0.2

G152


B186


MKTGReports 0 0 0 0 0 0FeesAndNewCapital 0 0Foundation Rehearsal Round 3 DecisionsDECISIONS Andrews 1 3 2006 C10016ProductName Able Acre NA NA NA NA NARetireProduct 0 0 0 0 0 0 0XcoordinateRD 5.1 2 0 0 0 0 0YcoordinateRD 14.7 16.8 0 0 0 0 0MTBFrdSpec 17500 14000 0 0 0 0 0Price 28.00 21.00 0 0 0 0 0PromoBudget 1000 900 0 0 0 0 0SalesBudget 1000 900 0 0 0 0 0UnitSalesForecast 0 0 0 0 0 0 0ProductionOrdered 2400 1350 0 0 0 0 0CapacityChange 0 0 0 0 0 0 0AutomationNextRound 4 5 0 0 0 0 0FinanceFunction StIssue StRetire Dividend ShortDebt BondRetir BondIssue ARFinanceDecisions $3,000 0 0.85 0 0 $3,000 30LaborNegotiation TechWageAsmbWage Benefits ProfitShr AnnRaiseComplmentRecrSpendOffer1 20 0 2500 0.02 0 257 0Offer2 22 0 2750 0.022 0 0 0TQMfunction CPI VendorJIT QIT Channels CCEBenchMark QFDETQMbudgets 0 0 0 0 0 0 0MKTGPrimarySeg 2 0 0 0 0 0 0MKTGPrintMedia 300 0 0 0 0 0 0MKTGDirectMail 300 0 0 0 0 0 0MKTGWebMedia 300 0 0 0 0 0 0MKTGEmail 300 0 0 0 0 0 0MKTGTradeShows 300 0 0 0 0 0 0MKTGSalesPriorities 0 0 0 0 0 0 0MKTGOutsideSales 4 0.2 0.2 0.2 0.2 0.2MKTGInsideSales 10 0.2 0.2 0.2 0.2 0.2MKTGDistributors 5 0.2 0.2 0.2 0.2 0.2MKTGReports 0 0 0 0 0 0FeesAndNewCapital 0 0Foundation Rehearsal Round 4 DecisionsDECISIONS Andrews 1 4 2006 C10016ProductName Able Acre NA NA NA NA NARetireProduct 0 0 0 0 0 0 0XcoordinateRD 5 2 0 0 0 0 0YcoordinateRD 15 17 0 0 0 0 0MTBFrdSpec 17,500 14,000 0 0 0 0 0Price 28 21 0 0 0 0 0PromoBudget 1,000 900 0 0 0 0 0SalesBudget 1,000 900 0 0 0 0 0UnitSalesForecast 0 0 0 0 0 0 0ProductionOrdered 2,400 1,350 0 0 0 0 0CapacityChange 0 0 0 0 0 0 0AutomationNextRound 4 5 0 0 0 0 0FinanceFunction StIssue StRetire Dividend ShortDebt BondRetir BondIssue AR

FinanceDecisions 0 0 0 0 0 0 30 LaborNegotiation TechWageAsmbWage Benefits ProfitShr AnnRaiseComplmentRecrSpendOffer1 20 0 2500 0.02 0 257 0Offer2 22 0 2750 0.022 0 0 0TQMfunction CPI VendorJIT QIT Channels CCEBenchMark QFDETQMbudgets 0 0 0 0 0 0 0MKTGPrimarySeg 2 0 0 0 0 0 0MKTGPrintMedia 300 0 0 0 0 0 0MKTGDirectMail 300 0 0 0 0 0 0MKTGWebMedia 300 0 0 0 0 0 0MKTGEmail 300 0 0 0 0 0 0MKTGTradeShows 300 0 0 0 0 0 0MKTGSalesPriorities 0 0 0 0 0 0 0MKTGOutsideSales 4 0.2 0.2 0.2 0.2 0.2MKTGInsideSales 10 0.2 0.2 0.2 0.2 0.2MKTGDistributors 5 0.2 0.2 0.2 0.2 0.2MKTGReports 0 0 0 0 0 0FeesAndNewCapital 0 0

Na00 We handle tutorial decisions as follows:0 1. At startup, the latest tutorial decisions are retrieved from the website.0 2. The student modifies them. This puts the student's decisions into DecisionsOutgoing0 3. The student could also mess with "teammate" decisions. Therefore, at Save we must restore "teammate" Decisions.0 4. The Tutorial decisions at left are constructed at Design Time.0 Yellow areas are decisions being made by the student, taken from DecisionsOutgoing.0 Blue areas are decisions by Tutorial "teammates" created by the designer. Some are constants. Some are formulas.0 5. At Save, the decisions at left are copied to DecisionsIncoming, then posted into the worksheets. Much like an UndoToLastSave. Then Saved.0 6. The student is then given an option to continue working on this round or advance.0

AP30

TrainHrs0 ProductName RandD!C40 RetireProduct

CCE6sigma UNEPGreenGEMISustain XcoordinateRD RandD!D40 0 0 YcoordinateRD RandD!E40 MTBFrdSpec RandD!F40 Price Mktg!C40 PromoBudget Mktg!D40 SalesBudget Mktg!E40 UnitSalesForecast Mktg!G40 ProductionOrdered Production!C60 CapacityChange Production!C16

AutomationNextRound Production!C18FinanceFunctionFinanceDecisions Finance!C11LaborNegotiationOffer1 Labor!J6Offer2TQMfunction

Na TQMbudgets TQM!D50 MKTGPrimarySeg0 MKTGPrintMedia0 MKTGDirectMail0 MKTGWebMedia0 MKTGEmail0 MKTGTradeShows0 MKTGSalesPriorities0 MKTGOutsideSales0 MKTGInsideSales0 MKTGDistributors0 MKTGReports

AP FeesAndNewCapital30

TrainHrs

00

CCE6sigma UNEPGreenGEMISustain0 0 00000000

Na00000000000

AP30

TrainHrs00


Na00000000000

AP30

TrainHrs00


NA0000 ProductName RandD_F!C40 RetireProduct0 XcoordinateRD RandD_F!D40 YcoordinateRD RandD_F!E40 MTBFrdSpec RandD_F!F40 Price Mktg_F!C40 PromoBudget Mktg_F!D40 SalesBudget Mktg_F!E4

AP UnitSalesForecast Mktg_F!G430 ProductionOrdered Production_F!C6

TrainHrs CapacityChange Production_F!C160 AutomationNextRound Production_F!C180 FinanceFunction

CCE6sigma UNEPGreenGEMISustain FinanceDecisions Finance!C110 0 0 LaborNegotiation0 Offer10 Offer20 TQMfunction0 TQMbudgets TQM!D50 MKTGPrimarySeg0 MKTGPrintMedia1 MKTGDirectMail

MKTGWebMediaMKTGEmailMKTGTradeShowsMKTGSalesPrioritiesMKTGOutsideSalesMKTGInsideSalesMKTGDistributors

NA MKTGReports0 FeesAndNewCapital0000000000

AP30

TrainHrs00


NA00000000000

AP30

TrainHrs00


NA00000000000

AP

30 TrainHrs

00


1. At startup, the latest tutorial decisions are retrieved from the website.2. The student modifies them. This puts the student's decisions into DecisionsOutgoing3. The student could also mess with "teammate" decisions. Therefore, at Save we must restore "teammate" Decisions.4. The Tutorial decisions at left are constructed at Design Time.

Yellow areas are decisions being made by the student, taken from DecisionsOutgoing.Blue areas are decisions by Tutorial "teammates" created by the designer. Some are constants. Some are formulas.

5. At Save, the decisions at left are copied to DecisionsIncoming, then posted into the worksheets. Much like an UndoToLastSave. Then Saved.6. The student is then given an option to continue working on this round or advance.

RandD!C5 RandD!C6 RandD!C7 RandD!C8

RandD!D5 RandD!D6 RandD!D7 RandD!D8RandD!E5 RandD!E6 RandD!E7 RandD!E8RandD!F5 RandD!F6 RandD!F7 RandD!F8

Mktg!C5 Mktg!C6 Mktg!C7 Mktg!C8Mktg!D5 Mktg!D6 Mktg!D7 Mktg!D8Mktg!E5 Mktg!E6 Mktg!E7 Mktg!E8Mktg!G5 Mktg!G6 Mktg!G7 Mktg!G8

Production!D6 Production!E6 Production!F6 Production!G6Production!D16 Production!E16 Production!F16 Production!G16Production!D18 Production!E18 Production!F18 Production!G18

Finance!C13 Finance!C14 Finance!C18 Finance!J17

Labor!J7 Labor!J8 Labor!J9

TQM!D6 TQM!D7 TQM!D8 TQM!D9

ARRange APRange

NewAR ProdAPMktgAR NewAP

MktgAP

RandD_F!C5 RandD_F!C6 RandD_F!C7 RandD_F!C8

RandD_F!D5 RandD_F!D6 RandD_F!D7 RandD_F!D8RandD_F!E5 RandD_F!E6 RandD_F!E7 RandD_F!E8RandD_F!F5 RandD_F!F6 RandD_F!F7 RandD_F!F8

Mktg_F!C5 Mktg_F!C6 Mktg_F!C7 Mktg_F!C8Mktg_F!D5 Mktg_F!D6 Mktg_F!D7 Mktg_F!D8Mktg_F!E5 Mktg_F!E6 Mktg_F!E7 Mktg_F!E8

Mktg_F!G5 Mktg_F!G6 Mktg_F!G7 Mktg_F!G8Production_F!D6 Production_F!E6 Production_F!F6 Production_F!G6

Production_F!D16 Production_F!E16 Production_F!F16 Production_F!G16Production_F!D18 Production_F!E18 Production_F!F18 Production_F!G18

Finance!C13 Finance!C14 Finance!C18 Finance!J17


ARRange APRangeNewAR Prod_FAP

Mktg_FAR NewAPMktg_FAP

5. At Save, the decisions at left are copied to DecisionsIncoming, then posted into the worksheets. Much like an UndoToLastSave. Then Saved.

RandD!C9 RandD!C10 RandD!C11

RandD!D9 RandD!D10 RandD!D11RandD!E9 RandD!E10 RandD!E11RandD!F9 RandD!F10 RandD!F11

Mktg!C9 Mktg!C10 Mktg!C11Mktg!D9 Mktg!D10 Mktg!D11Mktg!E9 Mktg!E10 Mktg!E11Mktg!G9 Mktg!G10 Mktg!G11

Production!H6 Production!I6 Production!J6Production!H16 Production!I16 Production!J16Production!H18 Production!I18 Production!J18

Finance!J18 ARRange APRange

NewComplement NewRecruitSpend NewTrainHours


Finance!J18 AR_FRange AP_FRange

NewComplement_F NewRecruitSpend_F NewTrainHours_F


TQM!D16

TranslatedEntry ChngDate ChngDate ChngDate

Save Decisions?

YesNo

OK

Warning!8/3/2009 5/14/2010

Undo to Official Decisions 8/3/2009 5/14/2010Cancel

8/3/2009 5/14/2010

Undo to Last Saved Draft 8/3/2009 5/14/2010Website not found!

Be sure to log in at https://www.capsim.com to view your Comp-XM® exam status and final Board Query.

There are no more rounds in this simulation; no further company decisions can be made. The menu can be used to review simulation results.

Would you like to save your decisions before exiting?

There is a labor negotiation this round!Your labor contract will expire this year. Please remember to give your negotiators a bargaining position.

TQM Initiatives are not available.TQM Initiatives are not available this year. Please ignore this worksheet.

'Undo to Official Decisions' replaces all the decisions in your workbook with your teams current Official Decisions. All of your work since that point will be lost.

'Undo to Draft' replaces all the decisions in your workbook with your most recent save to Draft. All of your work since that point will be lost.

A test query to the Capsim website failed! Possible causes include:1. No connection to the Internet (most likely cause)

a. Confirm the problem by connecting to the website with a browser.b. Check cables. On wireless connection, check switches.c. If still not working, contact your local technical support people2. A firewall is blocking your access to the Internet or Capsim websitea. Confirm browser works and connects to Internet.b. Close workbook, Reopen Excel without a workbook.

c. In Excel menu, click Data | Import External Data | New Web Queryd. Navigate to any website. Click any yellow arrow pointing to a table.e. If no firewall, the workbook will import the table. If query fails, contact your local technical support people.

3. Excel is blocked from accessing the Interneta. Use the same steps as for firewall.b. If Excel cannot do the web query, reinstall Excel.Since CompXM® requires an open connection to the Internet, please correct the problem, then restart the workbook.

This Capstone Workbook is out of date. It's version number is 2009v22. The latest version on the website is version

the ratio of Assets to Equity.

. We recommend that you close this workbook and download a replacement.your company's annual net profits divided by sales.your company's annual net profits divided by assets.your company's annual net profits divided by equity.your company's annual sales divided by total assets.Earnings Before Interest and Taxes. The profits of your firm before tax and debt financing obligations.

your company's stock value (shares times price) as a proportion of the entire industry.

total assets minus total liabilities (=total equity), per share. This is the value of a share of your firm if all the assets were liquidated and your creditors repaid.

Earnings Per Share. This is the net income of your company divided by the number of shares outstanding.

the market value of a single share of your company.

the total assets of your company in dollars.the annual sales of your company in dollars.the annual net profits of your company in dollars.the cash flow from operations minus plant and equipment expenditures, in dollars.

the total debt of your company divided by the total equity (= Leverage - 1)

the total debt of your company divided by the total assets (=1 - 1/Leverage)

emergency loan as a proportion of assets. A visit to Big al is triggered when sales revenues and financing decisions do not cover annual expenses.

net profit in dollars, excluding extra-ordinary items like gain/loss on plant and equipment retirement, inventory liquidations, and early bond retirement.

proportion of sales revenues which contribute to overhead and profits. (Price - Labor - Material) / Price

the percentage of time your plant is being utilized. If underutilized you are paying depreciation and interest on unused assets. If overutilized, you have no room for opportunities.

your current assets minus current liabilities, are they appropriate to your level of sales?

lost sales due to stock outs as a percentage of overall sales.the costs of carrying unsold inventory as a percentage of overall saleshow closely your products meet customer criteria, sales weighted.the overall demand for your products, sales weighted. This is the net combination of Buying Criteria, Awareness and Accessibility.

the proportion of customers that know of your products, sales weighted. The strength of your promotion efforts.

how easy is it for customers to purchase your products, sales weighted. The strength of your distribution channels.

the number of viable products you have, i.e., any product with at least 6% of a segment's sales.

sales, general, and administrative expenses as a percentage of sales.the ratio of your annual sales to annual Industry sales.the percentage of your overworked and underpaid workforce you lose each year.

the efficiency of your workforce in production because of recruiting, training, quality, and 6 Sigma initiatives.

the dollar sales each employee generates.the ratio of total assets in dollars to workforce complement.the ratio of total profits in dollars to workforce complement.the effect of your investments in 'Continuous Process Improvement Systems,' 'Vendor/Just in Time' and '6 Sigma' initiatives.

the effect of your investments in 'Quality Function Deployment Effort' and '6 Sigma' initiatives.

ROSROAROEAsset TurnoverEBITMarket CapBook ValueEPSStock PriceAssetsSalesProfitsFree Cash FlowLeverageDebt/EquityDebt/AssetsEmergency LoanOperating ProfitContribution MarginPlant UtilizationDays of Working CapitalStock-out costsInventory Carrying costsCustomer Buying CriteriaWtg Avg Cust Survey Score

Customer AwarenessCustomer AccessibilityProduct CountSG&A expenseMarket ShareEmployee Turnover RateEmployee ProductivitySales/EmployeeAssets/EmployeeProfits/EmployeeTQM Material ReductionTQM Labor Reduction

the effect of your investments in 'Concurrent Engineering' and 'Quality Function Delployment Effort' initiatives.

the effect of your investments in 'Vendor/Just in Time' and 'Benchmarking' initiatives.

the effect of your investments in 'Channel Support Systems' initiatives.

TQM R&D ReductionTQM Admin Cost Reduction

TQM Demand IncreaseScore for RoundRecap Score

FinancialInternal Business ProcessCustomerLearning and GrowthResume Previous TutorialResume Rehearsal Tutorial

Choose Coach

RECAPITULATION INTERIM RESULTSRECAPITULATION PROJECTED RESULTSRecap criteria evaluate your company's overall performance. Scores will not be finalized until Round 4 is completed. Interim results.

Recap criteria evaluate your company's overall performance and are finalized when your simulation is completed. Interim results chart.

chart your progress towards those goals. The final Recap will be your score for Round 5.

your progress towards those ending goals. Your score only includes the Recap for the last completed round.

Could not find slide in database.Sorry, I have encountered a problem finding the next slide in the tutorial, SlideID. Could you please submit a support ticket about the problem the next time you visit the website? Thank you.

Do you want to use the Office Assistant for the Coach?

No Office Assistant found

We encountered a problem switching off your Office Assistant. Perhaps it is not installed.

Because the Coach requires the Office Assistance on Excel 97 systems, we have disabled the Coach, the coach tutorials, and the rehearsal simulation. All other features in the workbook are available. If you wish to use the disabled features, please use your Office 97 Setup program to install the Office Assistant.

If you would like to use the Office Assistant, please install it with Microsoft Office Setup.

No Office Assistant availableThe Office Assistant is not available on this computer.On Excel 97 systems, the Coaching system requires the Assistant to function. Although the Coach has been disabled, and with it the workbook tutorials and Rehearsal Simulation tutorials, all other features in the workbook will operate. If you would like to use the Coach on this computer, please use the Office 97 CD to install the Assistant.

The standard Coach interface will be used instead. If you would like to use the Office Assistant on this computer, please use the Office CD to install the Assistant.

You have two options:

Continue working on Round

Is this your Final Answer?

Saved By:Decisions For:Time Stamp:UPLOAD FAILED!

Save Decisions

You can not save decisions without at least one unit of production (After Adjustment) for the year. This requires one or more units of scheduled production, capacity, and labor complement.

Button 1: Continue making decisions for this round. If you continue working on the current round be sure to finalize your decisions prior to the deadline.

Button 2: Finalize your teams decisions for this round. Once you finalize your decisions you will no longer be able to make changes to them. You must commit to a Final Official Decision before the deadline otherwise you will automatically be disqualified from the Challenge and not allowed to continue.

Finalize my decisions for Round

You will no longer be able to make changes to your decisions for RoundYour decisions have been uploaded.

Excel has encountered a problem during the upload. We recommend that you try to save your decisions to a local disk file, then try uploading them manually.

Your decisions have been saved to:

Changed by:Changed:

Warning!

DEADLINE PASSEDOpen Capstone DatafileSelect Capstone DatafileSorry, but

Warning! Your decisions did NOT save successfully.

Your decisions have been committed. The next round startsThe web-site reports that your decision deadline has passed. Your decisions were due

Your decisions have been uploaded.Excel has encountered a problem during the upload. We cannot proceed without a solid Internet connection:

1. Try saving again, the problem may be intermittent.

2. If you are on a notebook try connecting from a different network.3. Try making your decisions from a different computer.4. If saving fails, please call Support at (847) 501-2888

A teammate has changed the Official Decisions since your session began.

We recommend that you Cancel and look at the new Official Decisions before proceeding. Click OK to proceed with Save. Click Cancel to abort.

The website reports that your decision deadline has passed since your session began.

Visual Basic Error #Generated byDescription

Unknown status:

is not a valid Capstone Decisions File. Would you like to try again?Invalid Capstone Decisions file.The file query request returned the following message:

Failed trying to read local Decision file. Trouble reading decision file.Sorry, the website reports that the deadline for your decisions has passed. They were due

Official Decisions not available.Sorry, the website reports that your Officla Decisions are not available at this time. They will be available after

This game is not a CompXM gameCompXM has not been selected for this simulation.

Sorry, the website reports that your Official Decisions are not available at this time. They will be available after

. If you believe this is in error and they should be available now, please contact Support. We will check to make sure there are no problems and the schedule matches your professor's intentions.

Are you sure that you want to close the workbook and exit?

The CoachResearch & DevelopmentMarketingProductionHR Labor NegotiationsFinanceTQM InitiativeBalance SheetIncome StatementCash Flow StatementFinancial RatiosSave decisionsOnline ResourcesPrint sheetPrint all proformasExit FoundationExit CapstoneFoundation Menu:Capstone Menu:CompXM Menu:Office AssistantFileSave DecisionsRestart RehearsalExit FoundationExit CapstoneExit CompXMViewFull ScreenNormalUndoUndo to DraftUndo to Official DecisionsDecisionsR&&DMarketingPricing && ForecastingPromotion && SalesTraditional ReportLow End ReportHigh End ReportPerformance Report

This version of the Capstone spreadsheet VersionN is not compatible with your simulation Version2008. Please login to the website www.capsim.com and download a new spreadsheet.

Size ReportPrint All Marketing ReportsProductionHuman ResourcesDecision SummaryProformasBalance SheetIncome StatementCash FlowRatiosBalanced ScorecardFront PageStock && Bond marketFinancial StatementsProduction AnalysisLow Tech SegmentHigh Tech SegmentMarket SharePerceptual MapHR/TQM report

Income StatementPrint CourierThrift segmentCore segmentNano segmentElite segmentMarket SharePerceptual MapPrint Annual ReportsAll Annual ReportsTraditional marketing report

Low End marketing reportHigh End marketing reportSize marketing report

Online HelpManager GuideSupportExam dashboardChallenge dashboardCompany dashboardOfficial Decision auditOfficial Balanced Scorecard

Capstone® Courier Audit

Balance Sheet && Cash Flow

Performance marketing report

Foundation® FastTrack Audit

StrategySuccess MeasuresEmailPeer EvaluationsAbout Capstone®About Foundation®Connection Failure

Visual Basic Error #Generated byDescription

No active courses available.

OK

Our apologies, but this application is offline for maintenance. Please try again later.

Additional diagnostics. The request returned the following message:

Trouble linking to the websiteMarketing report not available.Sorry, this report was not ordered last year.

Sorry, we could not find an active simulation for you. Since we have no decisions, we cannot open the workbook.

If you have not yet launched your course, please return to the website and launch a course. If you would like to use an inactive simulation, please reactivate the course and try again.

You have not yet started your simulation. The exam assumes you are familiar with the simulation. Please log in at https://www.capsim.com to join a company. Best of Luck!

You have not yet joined a company. Practice and Competition rounds are company activities. Please log in at www.capsim.com to join a company. Best of Luck!

Please be aware that you are logged into https://www.capsim.com with UserID

Welcome to the Rehearsal Simulation. As a professor you have the option to restart your Rehearsal Simulation whenever you wish, and you can play with or without a coached tour. Students will always start with the coached tour, during Round 1 managing the R&D department, while 'ghost' teammates make decisions for other areas of the company. In Round 2 the student takes over Marketing as well as R&D, with their 'teammates' continuing to make other decisions. In Round 3 they make R&D, Marketing and Production decisions. Finally, in round 4 they are responsible for Finance department decisions too. Rounds 5 through 8 are optional and the students are on their own.

Welcome Professor

The number of rounds each of your students has completed are stored for your review on the professor web site. Students can restart only after completing the four coached rounds. If students restart their rehearsal, rounds completed is maintained as a high water mark so you can assess whether they have completed basic training.

Restarting a Rehearsal Simulation destroys all reports for the current tutorial and returns you to Round 1. As a professor, restarting your rehearsal has no affect upon students.

Rehearsal Simulation not availableThe website reports that the Rehearsal Simulation is switched off. If you believe this is in error, please contact Support. We will make sure that everything is in order and that the Rehearsal Simulation should really be switched off.

You have reached the end of the Rehearsal Simulation and no more decisions can be made. By the way, your professor has enabled Rehearsal Simulation restarts. Restarting your rehearsal throws away all records of the rehearsal you just completed and starts over. Would you like to restart?

Maybe later. I just want to look at my reports.

End of Rehearsal Simulation

Saved By:Decisions For:Time Stamp:

Advance Round

Yes. Take me to a place where I can destroy my last rehearsal. I want to start over.

Congratulations, you have reached the end of the Rehearsal Simulation. Your professor has not allowed rehearsal restarts. Your reports summarize the results for the last round. Good luck in the live competition!

Your decisions have been merged with your 'teammates' decisions and uploaded. The proforma financial statements now reflect both your decisions and those of your teammates. We recommend that you look over your proformas before advancing to the next round.

I want to continue working on Round 0.I want to advance to Round 1.

Are you sure that you wish to advance to round 1?The Save failed and returned the following message:Perhaps something has happened to your Internet connection, or perhaps you are behind a firewall that prevents posting information to the website. We would like to help you find a solution. Please take the time to send us a support ticket from the website or give us a call.

Restart your rehearsal?

Connection Failure

When you restart your rehearsal simulation all reports of your current tutorial are destroyed and you return to round 1. Your professor will always see the highest round you have completed whether or not you have restarted. You have the option of another four round guided tour through the four functional areas: R&D, Marketing, Production and Finance. Or, you can play a Rehearsal entirely on your own, responsible for all of your decisions. Would you like to restart your rehearsal simulation?

Yes, restart the rehearsal at the beginning (you will asked to log in again)The rehearsal simulation failed to restart. It reported:

Excel has encountered a problem connecting to our website. This could be caused by an intermittent or no internet connection, or a firewall setting that prevents Excel from communicating over the internet.

If this problem persists you can manually download and upload company decisions via a file. For more information or for instructions for changing the required setting of popular firewall programs, log in at www.capsim.com and enter your simulation. Instructions are available from the Downloads area.

Age ProfilesPerceived Age in yearsMaterial CostOldNewSizePerformance

Revenue ForecastMargin After marketingMarketingVariable costsUnit sales forecastAwareness ForecastAccessibilityProduction Vs. CapacityBoth ShiftsBase CapacityProductionPrice vs. Unit CostMaterialLaborMarginAdmin Cost reductionsFor the year just endedReduction in Cost of Goods

R&D Cycle Time Reductions

Demand IncreaseLiabilities & Owner's Equity

Accounts PayableCurrent DebtLong Term DebtCommon Stock

Note the rehearsal simulation requires an excel connection to the internet, decisions can not be manually loaded. If this problem persists for the rehearsal we can only suggest trying another computer.

Additional diagnostics. The request returned the following message:Trouble querying the website.

Perceptual map (at the end of this year)

Retained EarningsAssetsCashAccounts ReceivableInventoriesFixedDepreciationMarketingAdministrative / OtherNet Margin

Net income (loss)Net cash flow

Plant improvements

DividendsSales of stockPurchase of stockNew long term debtRetire long term debtChange current debtNet cash flowCash flow summaryCash flow from OperationsCash flow from Investing

Net change in cash position

ROSAsset TurnoverLeverageROEPercent of SalesMarket ShareClosing Stock PriceCapacity vs. ProductionAccessibility

ActualPotential

Unit salesUnit demandMarket segment shares

Cash Flow fromoperations

Cash flow frominvesting

Cash flow fromfinance

Cash flow from Financial actions

Market Share Actual versus potential

Industry Unit Sales vs demand

Cash flow summaryContribution marginsProfitMarket shareROEROSROAAsset TurnoverPerformanceTraditionalSizeLow EndHigh EndSegmentDecemberBackNextCloseDONETradLowHighPfmnSizeCapacityOtherOperationsInvestmentsFinancingChangeRoundPageHelpContinue

Promo BudgetSales BudgetPractice RoundCompetition RoundPriceAgeIdeal Position

This Excel workbook cannot run directly from the website.

Please download the workbook to your computer. After downloading use Excel to open the workbook on your local computer.

ReliabilityIdeal Age =MTBF#VALUE!

less than one

ThriftCoreNanoEliteLowHighLow TechHigh Tech

Draft may be out of date!

Draft Unavailable

8/3/2009 5/14/2010Undo to Start of Round 8/3/2009 5/14/2010Save DraftUpdate Official DecisionsSave to a fileRehearsal 0

Your exam has not yet started therefore you can not begin making decisions. You can, however, still print out your industry reports. Other options have been disabled.

Official decisions have been uploaded since you started your current Draft. Do you want to load your Draft anyway?

You have not set saved information to your Draft to be retrieved!

'Undo to Start of Round' replaces all the decisions in your workbook with the decisions available when you started the current round. All of your work since that point will be lost.

Redirecting to RehearsalReportsCourierFastTrackInquirerAnnual ReportsIndustry Conditions ReportCompXMLite Menu:EthicsEthics ReportCompXM Basix Round

The Rehearsal tutorial is now completed online, your web browser should open shortly and take you to the Rehearsal tutorial.

Translated

Spreadsheet versionThe CoachCompXM ScheduleReports available after:Decisions and Quiz available after:

Present time on server:

Workbook is out of dateContinue anywayClose workbook and exitChoose a Simulation IDSimulation IDCompany NameChoose a TeamSave Decisions

Save to Official DecisionsTo a backup file on my computerHelpAdvance to Next Round?Choose DecisionsPlease make a selectionSelect a product to upload

OR select all decisions for upload

Research and Development

Production

Warning: This computer product is protected by copyright law. Unauthorized use, reproduction or distribution of this program, or any portion of, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. All rights reserved.

Deadline for the decisions and quiz:

All times are Eastern Standard Time. The official timekeeper is the server.

Where would you like to save your decisions?

OR select a functional area to upload

Marketing (Pricing, Promo & Sales Budgets, Your Sales Forecast)

Finance (includes Accounts Receivable/Accounts Payable)

B1

Date last Updated

C1

Date last Updated

Human ResourcesTotal Quality Management(TQM)All team decisionsContinueWebsite Login

User IDPasswordWelcome

Connect to the Capsim website

I want to run the Rehearsal

Save to Draft

Welcome!

Please enter your User ID and Password.

In both Practice Rounds and in Competition Rounds your company competes in an industry with the benefit of your decisions. This Excel spreadsheet can automatically communicate with the website or let you work offline on a set of decisions you have downloaded to a file.

The Rehearsal will introduce you to the simulation. In the Rehearsal, you play against the computer while a Coach guides your decision entries. The Rehearsal requires an Internet connection and permission for the spreadsheet to communicate with the capsim® website.

If a firewall prevents you from using the "Connect to the Capsim website" button, please open a browser, login at www.capsim.com and select your simulation. Next, click the Download menu item. You will find complete instructions for manually downloading and uploading your decision file. Once it has downloaded, click the button below to load the file. You can also use the button to load decisions previously saved to your local computer.

Load decisions saved on this computer

1/22/2009 5/14/2010

1/22/2009 5/14/2010

9/11/2009 5/14/2010

1/22/2009 5/14/2010

BackNextCloseDONELanguagePortuguesePageOKCancelAbout the simulation

This message should disappear in a moment…If you continue to see this message you need to enable content from Capsim Management Simulations, Inc.®

Office/Excel 2007 Users: 1. Locate the "Security Warning" above the formula bar. 2. Click on the "Options" button. When the Security window opens select "Enable this content." 3. After logging in remember to click the Add-Ins tab to see the simulation menus.

Office/Excel 2008 Users: We apologize but Microsoft has removed the ability to run 3rd party content from Excel 2008 for Mac. Please use the Web Spreadsheet version, available from website's Downloads area.

Other Office/Excel versions: 1. Exit Excel. 2. Open this workbook again. Excel will display a warning message that says the workbook contains macros. 3. Click the Enable Macros button. Depending on your security settings, you may have to check a box that says, "Always trust macros from this source" before you can click the Enable button.

Thank you, and good luck in the simulation!

Copyright 1986-2011Save

All decisions are ready. (Optional)

User Validation FailedDraft SelectionStart working on Round 3

Your Draft last saved NullContinue Draft Decisions

7/28/2011

After selecting which decisions to save push the Save button below, your decisions will be saved to the website. You can continue working now or come back later.

If you check the box below to let your instructor know your decisions are ready you can change your mind and Save again up to the Round deadline.

Your instructor will see your decisions are ready.Your instructor will see your decisions are in progress.

Sorry, but your User Name and Password were not recognized by the web site. Please try again.

Start new Draft based on updated Official Decisions

Official Decisions updated Oct 10, 2011 @ 12:40 PM EDT by C46932a C46932a

Your Draft may be out of date because Official Decisions were updated after you began your Draft.

Draft out of dateChoose Draft or OfficialNo Official DecisionsStart of Round

As you work through your company’s decisions you can save them either as Official Decisions or as a Draft. The simulation will use your Official Decisions when the round's results are calculated. You can update Official Decisions as often as needed prior to the round deadline.

Draft decisions allow you to perform “what ifs” in a personal workspace separate from your company’s Official Decisions. Draft decisions are not recorded in the Audit Trail.

Periodically in your decision process, and when you have completed or are ready to share your decisions, be sure to use File > Update Official Decisions. All Official Decisions are recorded in the Audit Trail.

As you work through your company's decisions you can save them either as Rehearsal Decisions or as a Draft. The simulation will use your Rehearsal Decisions when the round's results are calculated. You can update Rehearsal Decisions as often as needed.

Draft Decisions become more important when the competition begins. Draft decisions will allow you to perform “what ifs” in a personal workspace separate from your company’s Rehearsal Decisions.

Periodically and when you have completed your decisions be sure to use File > Update Rehearsal Decisions.

SlideID Comment Sheet msoBalloonType msoButtonSet

OPEN Logo Buttons Cancel

TLIST_1 Top slide in Tutorial List Logo NA Cancel

MRD_1 Menu R&D RandD Buttons Cancel

MRD_2 RandD NextCancel

MMKTG_1 Menu Mktg Mktg Buttons Cancel

MMKTG_2 Mktg NextCancel

MPROD_1 Menu Production Production Buttons Cancel

MPROD_2 Production NextCancel

MFIN_1 Menu Finance Finance Buttons Cancel

The slide that appears when the workbook opens.

http://www.capsim.com/permanent_links/capstonelinks.cfm?loc=xlsRD

http://www.capsim.com/permanent_links/capstonelinks.cfm?loc=xlsMarketing

http://www.capsim.com/permanent_links/capstonelinks.cfm?loc=xlsProduction

A2

SlideID SlideID is the alphanumeric database key used to uniquely identify the slide. Use strings, not integers or reals. SlideID can contain spaces and special characters. It is case sensitive. Suggested nomenclature. Use the first few characters to identify the Tutorial. Then use a number to identify the top slide in "group". A "group" would include a top slide and any related exception slides -- for example, a slide that handled CheckCell below the expected range, or a slide triggered from a radio button list. RDa_3 -- Tutorial RDa. Slide 3. RDa_3low -- an exception slide to Slide 3. RDa_3high -- another exception slide to 3. RDa_3.1 -- clicked radio button1 RDa_3.2 -- clicked radio button2 RDa_4 -- Slide 4.

B2

Comment Anything that you would like to say about this slide. It has no affect upon processing.

C2

Sheet The name of the worksheet that is displayed in the background of this slide. For example, in a Marketing tutorial you might leave the Marketing worksheet to visit a Capstone Courier page. On the next slide you might go to still another Courier page, but eventually return to the Marketing worksheet.

D2

msoBalloonType Valid entries are: Buttons Bullets Numbers If empty, the default is Buttons. Entries are not case sensitive, but the spelling must be exact. The msoBalloonType indicates how the OptionText (if any) is displayed. There are five OptionText fields in the Tutorial Database (scroll right to see them). The OptionText is the text for a list of radio buttons, bullets, or a numbered list of steps. For example, msoBalloonTypeButtons will display the OptionText as radio buttons. msoBalloonTypeBullets displays as bullets, and msoBalloonTypeNumbers displays as a numbered list. In the database we enter "Buttons", "Bullets", or "Numbers". In all cases the Balloon accepts and probably uses buttons (meaning real buttons as opposed to radio buttons) as indicated in the msoButtonType. For example, you could have a set of radio buttons and the BackNextClose button set at the bottom of the slide.

E2

msoButtonSet Valid entries are: BackNextClose (default) Close Ok OkCancel Cancel BackClose NextClose YesNo YesNoCancel None You must spell the value exactly as shown, but entries are not case sensitive. When Back or No are clicked, then NextSlideID = JumpBackNo. When Next, Yes, or OK are clicked, then NextSlideID = JumpNextYesOK. When None, no buttons are available, and the user is forced to select an OptionText radio button. Close or Cancel stop the slide show. (The next time the Coach button is clicked, it offers a "Resume".) OptionText "Button" clicks are linked to Jump1..Jump5.

MFIN_2 Finance BackCancel

MFIN_3 Finance NA Cancel

MHR_1 Menu HR Labor Buttons Cancel

MHR_2 Labor NextCancel

MHR_3 Labor NextCancel

MTQM_1 Manu TQM TQM Buttons Cancel

MTQM_2 TQM NextCancel

MAMK_1 MktgX Buttons Cancel

MAMK_2 MktgX NextCancel

CONSTR Under Construction Logo Buttons Cancel

ERROR_1 In maintenance Logo NA Cancel

LOST Cannot find next slide NA BackClose

http://www.capsim.com/permanent_links/capstonelinks.cfm?loc=xlsFinance

http://www.capsim.com/permanent_links/capstonelinks.cfm?loc=xlsHRhttp://www.capsim.com/permanent_links/capstonelinks.cfm?loc=xlsLabor

http://www.capsim.com/permanent_links/capstonelinks.cfm?loc=xlsTQM

Menu Advanced Marketinghttp://www.capsim.com/permanent_links/capstonelinks.cfm?loc=xlsAdvancedMarketi

HRD_1 Launch How to … R&D RandD NA BackNextClose

HRD_2 RandD Bullets BackNextClose

HRD_3 RandD NA BackNextClose




HRD_6a RandD Bullets BackNextClose


HRD_7a RandD NA BackNextClose









HRD_13b RandD Bullets BackNextClose













HRD_23a TutorialSim Exit RandD NA BackClose

MUFIN_1 IncomeStatemeNA NextClose

UFIN_2 IncomeStatemeNA BackNextClose








UFIN_16 CashFlow NA BackNextClose




UFIN_20 BalanceSheet NA BackNextClose



UFIN_23 BalanceSheet NA BackClose

HHR_1 Launch How to … HR Labor NA BackNextClose

HHR_2 Labor Bullets BackNextClose

HHR_3 Labor NA BackNextClose

HHR_4 Production Bullets BackNextClose

HHR_5 Production NA BackNextClose



HHR_13 Labor Bullets BackNextClose

HHR_14 Production Buttons BackClose

HLAB_1 Launch How to … Labor Labor NA BackNextClose

HLAB_2 Labor NA BackNextClose



HLAB_5 Labor Bullets BackNextClose


HLAB_7 Labor Buttons None

HLAB_7a Labor NA BackNextClose

HLAB_7b Labor NA BackNextClose

HLAB_7c Labor NA BackNextClose






HLAB_13 Labor Buttons BackClose

HMKTG_1 Launch How to … Mktg Mktg Bullets BackNextClose

HMKTG_2 Capstone Slide Mktg NA BackNextClose

HMKTG_2a Foundation Slide Mktg NA BackNextClose

HMKTG_3 Mktg Bullets BackNextClose

HMKTG_3a Mktg Bullets BackNextClose


HMKTG_5 Mktg NA BackNextClose


HMKTG_6a Mktg NA BackNextClose

HMKTG_7 Mktg NA BackClose

HMKTG_7a Mktg NA BackClose




HMKTG_15a Mktg BackNextClose








HFIN_1 Finance NA BackNextClose


HFIN_3 Finance Bullets BackNextClose

Launch How to … Finance








HFIN_10Low Finance NA BackNextClose

HFIN_10High Finance NA BackNextClose



HAMK_1 Launch …Adv. Mktg MktgX NA BackNextClose

HAMK_2 MktgX NA BackNextClose



HAMK_5 MktgX Bullets BackNextClose



HAMK_8 MktgX Buttons None

HAMK_9 MktgX NA BackClose



HAMK_12 MktgX Buttons None








HAMK_20 MktgX Bullets BackNextClose






HAMK_26 MktgX Buttons BackClose

HTQM_1 Launch How To … TQM TQM NA BackNextClose

HTQM_2 TQM NA BackNextClose

HTQM_3 TQM Bullets BackNextClose



HTQM_6 TQM Buttons BackClose

HTQM_6a TQM NA BackNextClose

HTQM_6b TQM NA BackNextClose





HTQM_11 TQM Buttons BackClose

HPROD_1 Production Bullets BackNextClose


HPROD_3 Production #VALUE! BackNextClose


Launch How to … Production

HPROD_5 Production NA BackNextClose










WKLD_1 Logo NA BackNextClose


WKLD_3 Logo Bullets BackNextClose










WKLD_13 Logo Buttons BackClose

TDB_1 Initial TutorialDB Slide TutorialDB NA NextClose

TDB_2 TutorialDB NA BackNextClose


TDB_4 $9.00 TutorialDB NA BackNextClose

TDB_4Low TutorialDB NA BackNextClose

TDB_4High TutorialDB Bullets BackNextClose

TDB_5 Using formulas TutorialDB NA BackNextClose

TDB_11 TutorialDB Buttons None

TDB_11a TutorialDB NA BackNextClose

TDB_11b TutorialDB NA BackNextClose

TDB_11c TutorialDB NA BackNextClose

TDB_12 TutorialDB Bullets BackNextClose

TDB_13 TutorialDB Bullets BackNextClose



TDB_16 TutorialDB NA BackClose

OFFL_1 Logo NA BackNextClose


OFFL_6 Logo Bullets BackNextClose


OFFL_8 Logo Buttons BackNextClose

OFFL_8a Logo NA BackNextClose

OFFL_8b Logo NA BackNextClose

OFFL_8c Logo NA BackNextClose









OFFL_17 Logo Buttons BackClose

TXLS_1 TutorialDB NA BackNextClose





TCOU_1 TutorialDB NA BackNextClose





MXLS_F1 Logo Bullets BackNextClose

MXLS_F2 Logo NA BackNextClose

Foundation Workbook Tour begins here.

MXLS_F3 Logo Bullets BackNextClose

MXLS_F4 Logo NA BackNextClose

MXLS_F5 RandD_F Bullets BackNextClose

MXLS_F6 RandD_F Bullets BackNextClose

MXLS_F7 RandD_F NA BackNextClose

MXLS_F8 Mktg_F Bullets BackNextClose

MXLS_F9 Mktg_F NA BackNextClose

MXLS_F10 Mktg_F NA BackNextClose

MXLS_F11 Production_F Bullets BackNextClose

MXLS_F12 Production_F NA BackNextClose

MXLS_F13 Production_F NA BackNextClose

MXLS_F14 Finance NA BackNextClose




MXLS_F18 BalanceSheet NA BackNextClose

MXLS_F19 BalanceSheet NA BackNextClose

MXLS_F20 IncomeStatemeNA BackNextClose

MXLS_F21 IncomeStatemeNA BackNextClose

MXLS_F22 CashFlow NA BackNextClose

MXLS_F23 CashFlow NA BackNextClose

MXLS_F24 Ratios NA BackNextClose

MXLS_F25 Logo Buttons BackNextClose

Capstone® Rehearsal

RSIMC1_1 Logo NA NextClose

RSIMC1_1a Logo NA BackClose

RSIMC1_1b Logo NA BackClose

Rehearsal Simulation Round 1

RSIMC1_2 RandD NA BackNextClose

RSIMC1_3 RandD BackNextClose


RSIMC1_5 RandD Bullets BackNextClose



RSIMC1_8 RandD NA BackClose





RSIMC1_13 RandD BackClose







RSIMC2_1 Start Round 2 Logo Buttons BackNextClose


RSIMC2_3 Mktg Bullets BackNextClose



RSIMC2_6 Logo NA BackNextClose

RSIMC2_7 Logo NA BackClose

RSIMC2_100 Tour Courier Logo NA BackNextClose

RSIMC2_101 Courier1 Bullets BackNextClose

RSIMC2_102 Courier1 NA BackNextClose



RSIMC2_112 CourierSeg Bullets BackNextClose

RSIMC2_113 CourierSeg NA BackNextClose









RSIMC2_122 AnnRpt1 NA BackNextClose

RSIMC2_123 AnnRpt2 NA BackNextClose

RSIMC2_124 Logo NA BackNextClose

RSIMC3_1 Start Round 3 Logo Buttons NextClose



RSIMC3_4 Production Bullets BackNextClose

RSIMC3_5 Logo NA BackClose

RSIMC4_1 Start Round 4 Logo NextClose


RSIMC4_3 Logo BackClose

RSIMC5_1 Start Round 5 Logo Buttons Close

RSIMC5_2 Rehearsal Restart Logo Buttons BackClose

RSIMC6_1 Logo NA Cancel



RSIMC9_1 Logo NA CancelUncoached Rehearsal:

RSIMU1_1 Logo Buttons None





RSIMU6_1 Logo NA Ok

RSIMU7_1 Logo NA Ok

RSIMU8_1 Logo NA Ok

RSIMU9_1 Logo NA Ok

RSIMU Logo Buttons None

Foundation® Rehearsal NA

RSIMF1_1 Logo NA NextClose

RSIMF1_2 RandD_F NA BackNextClose


Start Foundation Rehearsal Simulation, Round 1


RSIMF1_5 RandD_F Bullets BackNextClose



RSIMF1_8 RandD_F NA BackClose





RSIMF1_13 RandD_F BackClose

RSIMF1_14 RandD_F BackNextClose






RSIMF2_1 Start Round 2 Logo Buttons NextClose

RSIMF2_2 Suggestions for Able RandD_F Bullets BackNextClose

RSIMF2_3 Mktg Bullets BackNextClose

RSIMF2_4 Logo BackClose

RSIMF2_100 Tour FastTrack Logo NA BackNextClose

RSIMF2_101 Courier1 Bullets BackNextClose

RSIMF2_102 Courier1 NA BackNextClose










RSIMF2_112 CourierSeg Bullets BackNextClose

RSIMF2_113 CourierSeg NA BackNextClose






RSIMF2_119 AnnRpt1 NA BackNextClose

RSIMF2_120 AnnRpt2 NA BackNextClose

RSIMF2_121 Logo NA BackNextClose


RSIMF3_2 Suggestions for Able RandD_F Bullets BackClose


RSIMF4_2 Suggestions for Able Logo Bullets BackClose

RSIMF5_1 Start Round 5 Logo Buttons Close

RSIMF6_1 Start Round 6 Logo NA Cancel




FORMTEST Logo Bullets Cancel

The slide that appears when the workbook opens.

Comp-XM® Begins Here

Comp1_1 Logo Bullets NextClose

Comp1_2

Comp1_3

Comp1_4

The slide that appears when Comp-XM® opens workbook opens.

Comp1_5

Comp1_6

Comp1_7

Comp1_8

Comp1_9

Comp1_10

Comp1_12

Comp1_13

Comp1_14 BackClose

Header Text JumpBackNo

Greetings!

Which Tutorial? Please select a category.

R&D Department

R&D Department MRD_1

MMKTG_1

MPROD_1

Office 2007 Users, Please Note: To see the Capstone/Foundation/Comp-XM menu selections, click the Add-Ins tab above. If you do not see the Add-Ins tab, please resize the spreadsheet by double clicking the blue bar at the top of the window. I am your coach. You can enable me at any time by clicking CAPSTONE MENU in the menu at the top of the display, or by clicking the Coach button at the top of the toolbar. To begin, review last year's results (which are this year's starting conditions) from the Courier menu. To access the R&D, Marketing, Production and Finance areas, select the Decisions menu. As you finalize your decisions, guage your projected results for the upcoming year from the Proformas

Welcome to the R&D department. Please have a browser opened, i.e. Internet Explorer, before launching the website tutorial.

Your tutorial should be loading. If it is not visible check your task bar. Please feel free to view other tutorials and demonstrations found in your welcome page.

Marketing Department

Welcome to the Marketing department. Please have a browser opened, i.e. Internet Explorer, before launching the website tutorial.

Marketing Department


Production Department

Welcome to the Production department. Please have a browser opened, i.e. Internet Explorer, before launching the website tutorial.

Production Department


Finance Department

Welcome to the Finance department. Please have a browser opened, i.e. Internet Explorer, before launching the website tutorial.

F2

Header This text appears at the top of the balloon in boldface. Normally used to identify the tutorial. You could, however, tailor each header to say something about the slide.

G2

Text The text of the balloon. Formatting Options: The routine scans for in the string text and converts it to a Carriage Return Line Feed. Use {ul 1} to turn underlining on. {ul 0} to turn underlining off. Use {cf #} to express a color in the Text. 0 Black For example, {cf 249} toggles the text color to Red, {cf 0} to black. 1 Dark Red 2 Dark Green 3 Dark Yellow 4 Dark Blue 5 Dark Magenta 6 Dark Cyan 7 Light Gray 248 Medium Gray 249 Red 250 Green 251 Yellow 252 Blue 253 Magenta 254 Cyan 255 White

H2

JumpBackNo Jump to this SlideID if the Back or No buttons are clicked. The SlideID targetted must match exactly. Case sensitive. Tip: Use a formula to target the next slide. For example, instead of entering a SlideID like "TDB_3", enter a formula pointing to that slide like "=A5".

MFIN_1

Good luck in running your company! MFIN_1

HR Department

HR Module MHR_1

Labor Negotiations MHR_1

MTQM_1

MAMK_1

Our apologies ERROR_1

Finance Department


Message to Managers

Welcome to the Human Resources deparment. Please have a browser opened, i.e. Internet Explorer, before launching the website tutorial.



Total Quality Management

Welcome to the Quality department. Please have a browser opened, i.e. Internet Explorer, before launching the website tutorial.

Total Quality Management


Advanced Marketing Module

Welcome to the Advanced Marketing Module. Please have a browser opened, i.e. Internet Explorer, before launching the website tutorial.

Advanced Marketing Module


Down for maintenance

We are sorry, but that tutorial is temporarily down for maintenance. Please accept our apologies.

We are sorry, but this option is temporarily down for maintenance. Please accept our apologies.

Could not find slide in database

MRD_1

Getting To Know the R&D Department

Welcome to the R&D department. Please Save your decisions before doing this tour. Later you can use Undo to Last Save to restore your decisions. In general, planning begins in R&D, then proceeds through Marketing, Production, and Finance. The marketplace evolves continuously. As the years pass, customers expect smaller, more powerful products. Your R&D department updates existing product designs and invents new products.

HRD_1

HRD_2

HRD_3

HRD_4

#VALUE! HRD_5

#VALUE!

HRD_6


Customers look for four things in a product's design (the customer buying criteria can be found in each segment analyses of the Courier report); three of which are determined in the R&D department:


Positioning. The Perceptual Map at the lower left is a marketing tool used to show how well your products meet customer expectations. Your customers are primarily concerned with two characteristics, the product's Performance and Size. Over time they expect products to become smaller and more powerful.


Let's look at Positioning first. The Perceptual Map at the lower left is a marketing tool used to show how well your products meet customer expectations. Your customers are primarily concerned with two characteristics, the product's Performance and Size. Over time they expect products to become smaller and more powerful.


Try entering different coordinates for each of your products. Notice the Black and Pink labels on the perceptual map. The Black label tells you where Able is today, January 1st. The Pink label tells you where it will be when it emerges from R&D and the Revision Date tells you when it completes from the R&D department.




You control the product age by moving the product on the perceptual map. When a product is moved, customers perceive it as younger. Its age is cut in half on the day it emerges from R&D. It becomes the "new-and-improved" product, with half its former age. The "Age at Revision" tells you what the new perceived age will be on the day the project completes.

HRD_7

HRD_7

HRD_9

HRD_9

HRD_12




Reliability is the third factor of importance in a customer's buying criteria. We measure reliability in hours, MTBF or Mean Time Before Failure. For instance, High tech customers help make a buying decision based on an industry range. Ranges are found in the customer buying criteria in each of the segment analyses. Outside a range of a segment may result in a loss of demand (if less) or no additional demand (if more).


Customers feel torn about reliability. On the one hand, they want your sensor to last forever. On the other hand, they know that the higher the MTBF specification, the higher the material costs. As a result, you may pass those costs on to them. You can see this in the Material Cost chart. Try increasing and decreasing the MTBF specifications for your products.


In the end customers require a minimum Reliability, and they reward you with increased demand as you increase MTBF above the minimum up to a point where they do not care. Here are the ranges:




Of course, you are keenly concerned with both MTBF and Positioning because both form your products' material costs. Keep in mind, the better the technology, the higher the material costs. Try this experiment. Move one of your products to the leading edge of segment's circle and increase the MTBF. Notice the effect in the Material Cost chart.


Management can expand the company by inventing new products. In total, your company can manufacture up to 8 products.

HRD_12a

HRD_13

HRD_13a

HRD_13b

HRD_13b

HRD_13

HRD_14

#VALUE! HRD_15


Let's invent a new product. Give your product a name in a row that begins with "Na". By convention, the first letter should match the first letter of your company. Next, position the product with a Performance and Size coordinate. Lastly, give your product a reliability that would satisfy a particular segment's buying criteria (remember to verify the acceptable MTBF range found in pages 5-9 of the Courier).


Let's invent a new product. Give your product a name in a row that begins with "Na". By convention, the first letter should match the first letter of your company. Next, position the product with a Performance and Size coordinate. Lastly, give your product a reliability that would satisfy a particular segment's buying criteria (remember to verify the acceptable MTBF range found in pages 5 and 6 of the FastTrack).


This brings us to the last, and most strategic concerns in R&D -- scope and focus.



"Age at Revision" addresses the customer's next important concern, the age of the product design. Some customers want old, proven designs, while others want new designs.




Revisions can affect your product's demand during the year. A product could start out the year too old to satisfy customers, then emerge in mid-year at a new location with a younger age. This is captured in the Age Profile chart. When a product is revised in mid-year, its age profile looks like a saw tooth.

HRD_16

HRD_17

HRD_18

HRD_18

HRD_19

Let's invent a new product. HRD_20

HRD_21

HRD_22


That's two of the things customer's care about in the design, Positioning and Age. Reliability is the third. It is driven by MTBF, or Mean Time Before Failure.


Customers feel torn about reliability. On the one hand, they want your sensor to last forever. On the other, they know that the higher the MTBF specification, the higher the material costs. Chances are, you will pass those costs on to them. You can see this in the Material Cost chart. Try increasing and decreasing the MTBF specifications for your products.






Of course, you are keenly concerned with your material costs. While MTBF is a major factor, material costs are also driven by the product's Positioning. In general, the higher the technology, the higher the material costs. Try this experiment. Move your products, making them more high tech by increasing the performance and reducing the size. Watch the effect upon the Material Cost chart.



This brings us to the last, and most strategic concerns in R&D -- scope and focus.


This completes the R&D tutorial. If you saved your decisions when this tutorial began, please do an Undo To Last Save in the Undo Menu above. This will throw away any changes you made during the tutorial and restore your decisions.

MUFIN_1

UFIN_2

UFIN_3

UFIN_4

UFIN_5

UFIN_6

UFIN_7

Understanding Financial Statements- Income Statement

Income Statements, sometimes referred to as Profit & Loss or P&L Statements, provide a record of earnings (or losses) by comparing sales revenues vs. expenses over a specific period of time - in this case, annually. Earnings (or profits) are a fundamental success indicator.


Investors use Income Statements as part of their assessment of a firm’s value. Creditors use Income Statements as part of the determination on a firm’s credit worthiness. Managers use the Income Statement to try and improve “the bottom line” – profits.


Sales -- sometimes referred to as the “top line” -- are reported in $ terms (rather than units) for the previous two years on the Income Statement. The Financial Analysis -- page 3 of Last Year's Reports -- provides a comparison between your firm and competing teams, via the Income Statement Survey.


Are you above or below average for your industry? Consider your Sales from the Round 0 reports, and factor in the annual overall growth rate in customer demand. Are your current Sales above or below market expectations?


Subtracting Variable Costs from Sales determines your Contribution Margin. The Contribution Margin is also reported on Page 1 of Last Year's Reports for comparison with competing teams. A general minimum benchmark for success is a 30% Contribution Margin. The “Round Analysis” and “Analyst Report” on the website provide coaching and troubleshooting suggestions.


Inventory Carry costs are driven by the number of units in the warehouse X 12% of their production costs (material & labor). If you have $0 Inventory Carry costs, you stocked out of the product and missed sales. If you have excessive inventory, your carry costs will be high; a drain on resources.


Sound sales forecasts matched to reasonable production schedules will result in a modest Inventory Carry cost for each product line – meaning no stock outs or excessive production. The “Round Analysis” (Inventory) and “Analyst Report” (Forecasting) on the website provide coaching and troubleshooting suggestions.


Period Costs are subtracted from the Contribution Margin to drive the Net Margin. Look at your Round 0 report Net Margin as a mediocre benchmark.

UFIN_8

UFIN_9

UFIN_10

UFIN_11

UFIN_12

UFIN_13


Depreciation is an accounting principle that allows companies to devalue the portion of equipment that is “used up” during a given period. It decreases the firm’s tax liability by reducing net profits, and provides a truer picture of a company’s value. Older plants are generally worth less than brand new plants. Depreciation is reflected as a gain on the Cash Flow statement, but is expensed on the Income Statement -- even though you never actually write a check for it -- in order to reconcile.


SG&A is also reported on Page 1 of the Capstone Courier or Foundation FastTrack report for comparison with competing teams. The Round 0 figure serves as an additional benchmark. SG&A reflects the rate of return you are generating from your R&D and Marketing expenses. Higher percentages mean you should review your tactics, as you are either spending too much, too little, or not targeting your spending wisely.


Short-term and Long-term interest payments can be compared with competing teams on the Income Statement Survey (page 3 of the Capstone Courier or Foundation FastTrack report), and against the Round 0 benchmark. Excessive interest -- especially on high interest rate Emergency Loans -- can negate an otherwise profitable year in some instances. Proper debt management is discussed in detail in the “Analyst Report” on the website (Financial Structure).


Net Profit impacts many of the financial measures associated with business success: EPS (which drives stock prices and Market Capitalization, to a large extent), ROE, ROS, and ROA are all affected by net profits.

Understanding Financial Statements- Cash Flow Statement

The Cash Flow Statement provides a visual reference for the movement of cash through the organization during a specific period of time – in this case, annually. It shows how much cash is on hand, and reconciles net profit back to cash. Emergency Loans are diagnosed via the Cash Flow Statement. Associate numbers in parenthesis with a sucking sound, as cash is being sucked out of the cash account.


Net Income is the same as net profit from the Income Statement. Parenthesis means a loss rather than a profit.

UFIN_14

UFIN_15

UFIN_16

UFIN_17

UFIN_18

UFIN_19

UFIN_20

UFIN_21

UFIN_22


Depreciation is expensed on the Income Statement even though you never actually write a check for it, and is added back to the cash account on the Cash Flow Statement in order to reconcile. The “Analyst Report” (Wealth Creation) on the website provides additional details on the link between depreciation and Free Cash Flow analysis.


Excessive Inventory is one of the primary causes of an Emergency Loan. Page 4 of the Capstone Courier or Foundation FastTrack report will help you identify specific product lines with excessive inventories.


Plant Improvements are considered long-term investments, and are usually matched with bond and/or stock issues. Failure to raise enough capital to cover Plant Improvements is another common cause of Emergency Loans.


If Net Change in Cash Position shows $0, and Closing Cash Position also shows $0, it means you had an Emergency Loan last year and another one this year.


Closing Cash Position tells you how much cash you have on hand. Between 3-5% of Sales (see Income Statement) is a good benchmark for cash. That provides just enough to keep the business running and stave off “Big Al’ and his high-interest Emergency Loan.

Understanding Financial Statements- Balance Sheet

The Balance Sheet identifies what is owned by the company, and by whom, on a specific date. The “Analyst Report” (Financial Structure) on the website provides detailed coverage of the relationships represented by various stakeholders on the Balance Sheet.


Assets are the company, or what is owned. Assets always equal Liabilities plus Owners Equity.


Liabilities & Owner’s Equity represent by whom - in terms of ownership of the assets. Creditors have claim to the Accounts Payable (suppliers), Current (short term) Debt (bankers), and Long Term debt (bond-holders). Stockholders have claim to the common stock. And Management has claim on Retained Earnings, as that represents the value of re-investments into the firm (as opposed to dividend payouts).


This completes the "Understanding Financial Statements" tutorial.

TLIST_2

HHR_1

HHR_2

HHR_3

HHR_4

HHR_5

How To Use the HR Module

Welcome to the HR Module tutorial. This module only applies if turned on by your professor.

How To Use the HR Module.

When the HR module is enabled, you make three decisions:


In general, recruiting and training improve productivity and reduce turnover. This leads to a smaller, more stable workforce. Let's begin with complement. Because headcounts drive overtime, the complement decision is on the Production worksheet. In the menu, click Strategy, then Production. Then click Next.


Workforce Complement appears at the bottom of the table.


Labor costs are driven in part by overtime and second shift work. As an experiment, try reducing your complement to drive up overtime. Watch the effect on labor cost per unit.


Similarly, if you change the production schedule, your needed complement will change. Try this experiment. Dramatically reduce your production schedule, leaving complement alone. Watch your labor cost per unit skyrocket as idle workers are paid to do nothing. It never makes sense to have more workers than you need.

HHR_6

HHR_7

HHR_8

HHR_9

HHR_10


As a rule of thumb, avoid overtime and overstaffing. However, second shift is usually desirable, especially at high automation levels. TIP. Try this experiment. Set your marketing sales forecast to 5000 on each product, thereby forcing a stock out on your proforma Income Statement. Next, ask the question, "Which shift is more profitable? First shift or second shift?" The answer will surprise you. To find it, set your Production Schedule to match first shift capacity, set the Complement, and look at the Proforma Income Statement. It will show profits on first shift. Now double the Production Schedule, adjust the Complement, and look at the Income Statement again. (Hint. Does second shift pay for fixed costs?)


Now let's return to the HR worksheet to examine recruiting and training. In the menu, click Strategy / Human Resources , then click Next.


Recruiting Spend is the "extra" amount you budget per worker to recruit high caliber workers. The higher the budget, the better the worker, resulting in a higher productivity index and lower turnover. Your decision amount is added to the base amount of $1000 per new employee. "$0" means no extraordinary effort is spent recruiting new people. Diminishing returns apply after $5000 per worker.


Training Hours. The number hours each year that workers are taken off-line for training and development. Workers can spend up to 80 hours (two weeks) in training each year. When a worker is in training, another worker fills their position. Therefore, your Complement requirements increase. For example, if you send workers to 80 hours of training, you would need to increase workforce complement by an additional 2/52 or 3.8% to cover workers in training class. Training produces a higher productivity index and lower turnover rate. Each training hour costs $20 per worker in additional training costs.


Although it may take several years to see a significant impact from recruiting and training, the effect is cumulative. For example, normal turnover is 10%. If you replace 10% of the workforce each round with high caliber people, in a few years you would replace most of your original workforce. Turnover would fall towards 5%, and with it your need to spend money on recruiting.

HHR_11

HHR_12

HHR_13

TLIST_2

HLAB_1

HLAB_2

HLAB_3

HLAB_4

HLAB_5

HLAB_6

HLAB_7

HLAB_7

Good job! See this isn't so hard. HLAB_7


Your biggest payoff from recruiting and training derives from improved productivity. For example, last year your Income Statement's Direct Labor costs were $0. A 10% productivity improvement would save about $0, and a 20% improvement would save about $0 each year.


To summarize, when the HR module is switched on:


This completes the How To Use the HR Module. tutorial.

How To Use the Labor Negotiation Module

Welcome to the How To Use the Labor Negotiation Module tutorial.

How To Use the Labor Negotiation Module.

Your contract with Labor expires on October 1st of this year. This is when Management and the Labor Union must renegotiate wages and benefits for next year.


The new wage and benefits will be implemented on January 1st of the following year.


There is a chance that if the negotiation does not go well, Labor may strike for days, weeks, or months, during the remaining part of this year .


The areas of negotiation are noted in the green cells:


Four points to remember before you make your decisions:


Point 1. Negotiation Ceiling is calculated for you. It is always at 10% more than your Starting Position (which is the decision you entered). Go ahead and type in a starting wage position of $22. What is the Ceiling?


Nice try but the right answer is noted in the yellow cell, The correct answer is $24.20 (10% more than $22).


Nice try but the right answer is noted in the yellow cell. The correct answer is $24.20 (10% more than $22).

HLAB_7

HLAB_8

STEP 2: It's now time to Negotiate. HLAB_9

OR HLAB_10

HLAB_11

HLAB_12

RSIMC2_1

HMKTG_1


Point 2 - Maximum length of a strike is 12 weeks. Point 3 - Strikes occur at the last part of the year. For example, a one week strike will be the last week of the year. Point 4 - The other departments are not part of the union. Only production workers.


What will happen during the Negotiation period? STEP 1: What will Labor be demanding? Labor develops a set of demands based upon its knowledge of all the opening offers.


How To Use the Labor Negotiation Module.How To Use the Labor Negotiation Module.

What will cause a strike? Strikes last 1 week for every:


My last bit of advice. Remember to analyze the Human Resource Summary on the Capstone Courier prior to making decisions. Good Luck!

Getting To Know the Marketing Department

Welcome to the Marketing department. The Marketing screen drives 3 of the 4 Ps:


Pricing. Each segment expects price to fall within a range. At the start of the simulation, for example, Traditional Customers expect a price between $20 and $30. When you price within the range, demand follows a classic price-demand curve. Pricing high lowers demand for the product, but whatever you do sell offers high margins. Pricing low increases demand, but with reduced margins you might produce little or no profit. Fortunately, the worksheet makes it easy to test the trade-off between demand and profit.

HMKTG_1

Let's try a few prices for Adam. HMKTG_2

Let's try a few prices for Able. HMKTG_2

HMKTG_3

HMKTG_4

#VALUE! HMKTG_5

#VALUE! HMKTG_4

HMKTG_6

HMKTG_6a


Pricing. Each segment expects price to fall within a range. At the start of the simulation, for example, Low Tech Customers expect a price between $15 and $35. When you price within the range, demand follows a classic price-demand curve. Pricing high lowers demand for the product, but whatever you do sell offers high margins. Pricing low increases demand, but with reduced margins you might produce little or no profit. Fortunately, the worksheet makes it easy to test the trade-off between demand and profit.




Outside the expected price range demand falls quickly to zero.


As the years pass there is a downward pressure on price. The price range falls by $.50 each year. For example, at the start of the simulation, High tech Customers expect a price between $30 and $40. In round 1, the High tech segment's price range fell to $29.50 to $39.50.


Getting To Know the Marketing DepartmentGetting To Know the Marketing Department

Oops. We really need a price between $29.00 and $39.00.


Oops. We really need a price between $15.00 and $35.00.

HMKTG_6

HMKTG_8

HMKTG_9

HMKTG_9

HMKTG_10

HMKTG_11


Promotion. The Promotion Budget creates awareness about your product. You would like 100% of customers to know about your product before they start shopping. Awareness makes it more likely that a customer will seriously consider your product.


The Promotion Budget creates awareness. The more you spend, the more awareness you create. At $1.5 million, you create an additional 36% awareness. A $3 million budget would add 50% awareness. Above $3 million diminishing returns apply. But there is a catch. Customers forget. Each year you lose 1/3rd of last year's awareness. You can replace the third lost by giving a $1.4 million promotion budget.


You can see the impact upon Adam's demand. Starting at $0, try increasing Promotion Budget in steps of $500 (000). (Budgets are entered in thousands, so $500 means $500 thousand.) Watch the Computer Prediction as you increase the budget.


You can see the impact upon Able's demand. Starting at $0, try increasing Promotion Budget in steps of $500 (000). (Budgets are entered in thousands, so $500 means $500 thousand.) Watch the Computer Prediction as you increase the budget.


Awareness is compared across all products competing in a segment. If all competitors have 0% awareness, the results will be the same as if all competitors have 100%. At 0% customers are equally ignorant. At 100% they are equally aware of the products. But if your competitor has 100% awareness, and you have 0%, your demand will be about half the competitor's. For our purposes in this tour, enter a Promotion Budget between $1,000 (000) and $2,000 (000).


Place. The Sales Budget drives "Place". If Promotion occurs before the sale, Place considers everything during and after the sale. Showrooms, distribution channels, and customer support centers are all Place considerations. The Sales Budget addresses two issues:

HMKTG_12

In some ways Accessibility works like Awareness. HMKTG_13

HMKTG_14

HMKTG_14

HMKTG_15

HMKTG_16


Accessibility is a segment characteristic. When you build accessibility, the showrooms, distribution channels, etc. become "owned" by the segment, even though your product is paying for it. Since accessibility belongs to the segment, any product in the segment benefits from it. If your product leaves the segment, it leaves the accessibility behind. If it enters a new segment, it inherits the accessibility already there.



Let's see the impact upon Adam's demand. Starting at $0, try increasing Sales Budget in steps of $500 (000). Watch the Computer Prediction as you increase the budget. When finished, set a Sales Budget between $900 (000) and $2,000 (000).


Let's see the impact upon Able's demand. Starting at $0, try increasing Sales Budget in steps of $500 (000). Watch the Computer Prediction as you increase the budget. When finished, set a Sales Budget between $900 (000) and $2,000 (000).


We have been using the Computer Prediction as a benchmarking tool, and that is appropriate. However, you cannot trust the Computer Prediction. It has no idea what your competitors are doing. To form its estimate, it assumes that each competitor offers a mediocre product in each segment.


You override the Computer Prediction by entering your own forecast in the Your Sales Forecast column. If Your Sales Forecast is zero, the remaining worksheets use the Computer Prediction (better than nothing) to arrive at your Proforma financial statements. Always override the Computer Prediction with one of your own. (For more about developing forecasts, see the Manager Guide on your Help menu.)

HMKTG_17

HMKTG_17

HMKTG_18

HMKTG_19

HMKTG_20

Welcome to the Finance department. RSIMC4_1

HFIN_1

HFIN_2


Try it now. Starting at 100, increase the forecast for Adam's demand by 100 until you reach 2,000. Watch the impact upon Gross Revenue Forecast and your margins in the Less Promo and Sales. When finished, pick an appropriate forecast for Adam. You can enter a forecast for your other products as well.


Try it now. Starting at 100, increase the forecast for Able's demand by 100 until you reach 2,000. Watch the impact upon Gross Revenue Forecast and your margins in the Less Promo and Sales. When finished, pick an appropriate forecast for Able. You can enter a forecast for your other products as well.


Your Accounts Receivable and Accounts Payables policy also appear on the Marketing department even though these are Finance decisions.


Note the computer's prediction for one of your products then try changing your Accounts Receivable Lag on the Finance Decision screen. Starting at 0 days, watch the effect upon the computer's Computer Prediction as you increase to 120 days. Of course, as you effectively loan money to customers, your cash is tied up in Receivables. Similarly, try modifying your Payables terms on the Finance Decision screen. You can see the effect upon your Variable Costs as unit costs climb. On the other hand, extending your Payables policy is like forcing your vendors to give you a loan.


This completes the Marketing department tour. We will now return to the Rehearsal Simulation.

Getting To Know the Finance Department


Now that you've gotten the chance to spend money in the other areas, it's time to pay the piper! This department is the place you go to fund the activities of the company.


Funding investments requires capital. To raise the necessary funds, you can choose from three sources:

HFIN_3

HFIN_4

HFIN_5

HFIN_6

HFIN_7

HFIN_8

HFIN_9

#VALUE! HFIN_10

#VALUE! HFIN_10


Bonds and current debt have different purposes. Bonds fund long term assets like plant and equipment. Current debt funds current assets like Accounts Receivable and Inventory. The interest rate on bonds is 1.4% higher than the current debt interest rate. You pay for the privilege of "locking in" the long term rate. Bonds mature 10 years after issue. Current debt is due at the beginning of each year, although you can always choose to borrow it over again.


The interest rate on current debt is not "locked in" and will vary (up and down) from year to year. The rate is a function of the prime rate (which increases annually) and your debt to assets ratio. The smaller the debt to assets ratio, the closer your interest rate is to prime.


Both bonds and stock issues have limits. Stock has an additional limit if you want to retire shares. These limits are given to you each round. Additionally, you can issue a dividend. Dividends are given to shareholders quarterly.


There is a fee to issue and retire (or buy back) both bonds and stock. Brokers charge a 5% fee, taken from this year's income, when issuing bonds and stock. The fee to retire bonds and buy back stock is 1.5%.


Long-term investments such as plant and equipment are generally funded through bonds, although some stock may be issued too. Current debt is generally used to cover A/R and A/P changes or expected increases in inventory.


Cash is the life-blood of a company. Corporations can't operate without it; yet, managers prefer not to accumulate too much of it because cash is a lazy asset. It doesn't make them money. Perhaps the most important cell in the Finance spreadsheet is the ending cash position cell. Make sure that this number is positive before you save your decisions.


A simple rule to remember is black is good, red is bad. Let's look at your ending cash as of now.

Getting To Know the Finance DepartmentGetting To Know the Finance Department

HFIN_10

HFIN_11

TLIST_2

HAMK_1

HAMK_2

HAMK_3

The five media types are: HAMK_4

HAMK_5

HAMK_6

HAMK_7

HAMK_8

HAMK_8


Even if your ending cash position is positive, it still may not be enough to cushion against receiving an emergency loan. The reason being that the ending cash position is based on the proformas which are forecasts! If your sales are below expectations, for example, you could run out of cash buying inventory.


At this point, you have the basics of how to use the Finance department. We will now return to this year's objectives.

How To Use the Advanced Marketing Module

Welcome to the How To Use the Advanced Marketing Module tutorial.

How To Use the Advanced Marketing Module.

The Advanced Marketing spreadsheet allows for detailed decisions regarding the Promotion and Sales budgets. To access the spreadsheet, click on one of the grey cells labeled Promo Budget and Sales Budget.


This spreadsheet allows you to allocate resources, making better use of dollars spent on marketing. You make decisions regarding what type of media you want to target and the number of sales people/distributors you wish to hire.


The Promo budget allows you to decide where your marketing dollars will be spent. Five different media types are available and, depending on the segment, some reach more customers than others.



You know how well a type of media is for a segment by reading the help balloon (little red triangles). Each is rated Good, Fair, or Poor. A rating of Good means that the ad will reach most of the customers.


The more money you spend, the more frequently your ad will appear. Each media category has a diminishing returns limit; spending more than the limit is a waste of resources. Additionally, choosing a target segment tells the marketing departments where to place the promotion.


Pop Quiz: What media types get a "Good" rating for the Traditional Market Segment?


Oops! Sorry, Email and Web Media is not the correct answer. Please try again.


Oops! Sorry, Print Media and Web Media is not the correct answer. Please try again.

HAMK_8

HAMK_8

HAMK_12

Correct! You've been paying attention! HAMK_12

HAMK_12

HAMK_12

HAMK_16

HAMK_17

HAMK_18

There are 3 types of sales people you can hire: HAMK_19

HAMK_20

HAMK_21

HAMK_22


Correct! You really know what customers respond to best in the Traditional segment!


Pop Quiz 2: What is the diminishing returns limit for Direct Mail?


Oops! Sorry, $300 thousand isn't the correct answer. Try again!

How To Use the Advanced Marketing Module.How To Use the Advanced Marketing Module.

Oops! Sorry, $700 thousand isn't the correct answer. Try again!


The Sales Budget allows you to decide how to allocate resources among your sales force and distributors.


You can also allocate more of your sales force's time to certain products. For instance, let's say you have a new product coming out in the High End segment. It's going to be a spectacular product that you know customers are going to love. You might allocate a higher percentage of the sales force time to create more demand.


Notice what happens when you put in a big number, something that pushes total time above 100%. The SIZE cells turn red . This happens because sales people can only devote up to 100% of their time. The SIZE cells are programmed to consume all the time left over from the other segments.


Reduce the cells in the TRADITIONAL segment to 5%. Notice now that the SIZE cells are yellow with a positive percentage (5%). Now increase the TRADITIONAL segment cells to 10%. The SIZE cells are now zero.



There are differences regarding the activities they perform and their salaries, but all are needed to create accessibility. As with the promotion budget, there are diminishing returns after a certain number of people are hired.


The other two areas associated with Sales Budget resources are Product Allocations and Competitive Intelligence Reports.


For accounting purposes, you must choose how much of the total sales budget is assigned to a particular product on the income statement. This is done in the Product Allocation table.

HAMK_23

HAMK_24

HAMK_25

TLIST_2

HTQM_1

There are eight initiatives. HTQM_2

HTQM_3

HTQM_4

HTQM_5

HTQM_6

HTQM_6

HTQM_6


The Competitive Intelligence Reports are expensive reports that give detailed information on all the products in a particular segment. You buy the reports in the current round and then they become available in the next round. The reports are found in the marketing menu inside the workbook.


Finally, notice the graphs on the lower part of the spreadsheet. They update immediately once you begin making decisions. They show you exactly how much awareness and accessibility you will have in the current round, based on your marketing expenditures.


That wraps up the Advanced Marketing Tutorial. Thank you for taking the time to review me!

How To Use the TQM Module

Welcome to the How To Use the TQM Module tutorial.

How To Use the TQM Module.

Investing in TQM initiatives can increase the efficiency and profitability of your company.



Each one works to reduce costs, improve R&D, or increase demand for products. You can find out what individual initiatives do by resting your curser on their names. A note will appear explaining what kind of benefits it will give you.


Depending on your strategy, you may only want or need to invest in select initiatives. For example, if your strategy is to be a Cost Leader, you may focus only on CPI Systems, Vendor/JIT, QIT, and CCE/6 Sigma Training which drive unit costs.


Pop Quiz: Which initiative(s) reduce(s) R&D cycle times?


Correct! Don't let people think you are just a pretty face.


Sorry, this isn't the correct answer. While Quality Function Deployment Effort does help to reduce R&D cycle times, Channel Support Systems works to increase demand.


Investment in the initiatives is independent of one another. In order to see any benefit, you must spend at least $500 thousand on a single initiative. Diminishing returns occur once you spend over $2 million on a single initiative.

HTQM_7

HTQM_8

HTQM_9

HTQM_10

RSIMC3_1

In Production: HPROD_1

HPROD_2

HPROD_3


Diminishing returns also occur after spending $5 million on an initiative over several years. So for instance, an aggressive investment in Benchmarking would be $2 million in the first year, $2 million in the second year, $1 million in the third year.


Benefits are seen immediately upon investment. The proformas and spreadsheets will update as soon as an amount is entered. However, it may take anywhere from 18 to 24 months to recoup the investment.


The Cumulative Impact Table provides a range of the percent benefit you will receive from your investment. To demonstrate, enter $500 thousand in Benchmarking. Then enter $1 million and finally, $2 million. Notice how the percent return diminishes above $2 million.


This wraps up the tutorial on the TQM module. Good luck and have fun with the simulation!

Getting To Know the Production Department

Welcome to the Production department. In Production you are concerned with three issues.



The Schedule block examines your inventories. You want to produce enough inventory to meet your best-case scenario for demand. Consider Adam.


As a generalization, you forecast for your worst case, but you produce for your best case. You face two risks:

HPROD_4

HPROD_5

HPROD_6

Material costs per unit are driven by: HPROD_7

HPROD_8

HPROD_9

HPROD_10

HPROD_11


The Margins block examines your contribution towards profit. TIP. Try to keep your Contribution Margin above 30%. If it falls below 30%, chances are there is not enough left over to cover your fixed costs.


You have two shifts. Your labor costs are 50% higher on second shift than on first.


Labor costs per unit are averaged across both shifts. They are driven by:

Getting To Know the Production DepartmentGetting To Know the Production Department

The Physical Plant block examines your current facilities (the yellow cells) and next year's facilities (the green cells).


1st Shift Capacity is the number of units the equipment could produce on one shift, assuming it is fully staffed. For example, you could make 1,100 units of Adam on first shift, and another 1,100 on second shift.


Automation Rating looks at the trade-off between workers and robots. At 1.0 you have many workers and few robots. At 10.0 you have the opposite, few workers and lots of robots. Automation has no affect on the number of units you can produce. The trade-offs:


Your plant is fixed for this year, but you can buy or sell capacity and add/subtract automation for next year. The new equipment is installed on December 31st. The cost of the new equipment is calculated for you on the Investment line. Try these experiments:

HPROD_12

HPROD_13

TLIST_5

WKLD_1

When forming a team, keep in mind these factors: WKLD_2

WKLD_3

WKLD_4

WKLD_5

WKLD_6

WKLD_7

WKLD_8


Although the Workforce section appears in this department, it is actually part of HR. Feel free to view the website tutorials for more information on the HR department.


This completes the Production department tour. We will now return to the Rehearsal Simulation.

How to distribute your team's workload

Welcome to the How to distribute your team's workload tutorial.


Organizing your team is one of the critical steps to overall success with the simulation. Clearly defined organization aids in making efficient, effective tactical maneuvers that support the business strategy.



We suggest teams of 4-6 people. Any smaller or larger than that and teams find themselves overwhelmed by the number of decisions (too small) or indecisive because of too many opinions (too large).


Teams usually meet both online or in person. If meetings are mostly outside of class, you might want to consider geography so that meetings face-to-face are easier to schedule.


Finally, you may want teammates with a variety of backgrounds because the more diverse the skills, the richer the simulation experience.


Once a team has been formed, responsibilities should be assigned to individuals. We offer some suggestions regarding assigning managerial roles, but these are by no means a definitive list.


The first in the list is the Product Manager. Each member of the team would be responsible for all decisions relating to R&D, Marketing, and Production for a product. The team as a whole could make decisions in Finance, HR, and TQM.


Another option similar to Product Manager is a Segment Manager. Segment Managers control the decisions regarding R&D, Marketing, and Production for all products in their segment. Again, the team as a whole could make decisions for Finance, HR, and TQM.

WKLD_9

WKLD_10

WKLD_11

WKLD_12

TDB_1

TDB_2


Functional managers are in charge of an area (R&D, Marketing, Production, Finance, HR, & TQM). They make the decisions for all the products in their assigned area. In small teams, individuals may have to double up functional responsibilities.


No matter how your team is organized, it is always a good idea to have one member be the Competitive Intelligence Officer. This person is in charge of identifying and analyzing the other teams' strategies and tactics.


To recap, there are several ways to organize your team. We offer suggestions that have worked for participants in the past but don't feel obligated to use any of them.


REMEMBER: it is essential to organize, but don't dwell on how you're organized.

How To Design Tutorials

Welcome to the How To Design Tutorials tutorial. In this tutorial I will show you how to use the Tutorial Database to design tutorials using the Office Assistant.


This tutorial is actually running from the database. It began with SlideID TDB_1. You can follow along by comparing the database entries with the contents of the balloons. Each row in the database is a slide in the tutorial. Glide your cursor over the column names to see comments about each of the attributes in the slide.


Let's demonstrate your options. (You might want to look at this slide in TDB_3.) In this slide, note that we are inserting white space between sentences using an HTML break tag (The tag, , cannot be displayed here without triggering a break, so we inserted a space before "br>".) The break tag MUST BE left bracket, lower case "br", right bracket. " " is ignored.

TDB_3

TDB_4

TDB_4

TDB_4


In this next example we check a cell for a valid entry. We call the target cell the "CheckCell". You will find this particular CheckCell at SlideID TDB_4, in the Comment column. We have set the comment up as a dollar entry cell, comparable to a price students might enter. However, it could be any cell in the spreadsheet, even one that is not visible to the user, and it does not have to be an entry cell at all. The tutorial checks whatever cell you name to see if it lies within an expected range. We have named our CheckCell "DB_TutorialCommentEntry", an Excel "Range Name". You will also find that name in the CheckCell column, which tells the tutorial the CheckCell's name or location. Generally speaking, you should give all CheckCell's their own name, even though the tutorial will use an address like "TutorialDB!G14". You never know when a column or row might be inserted on the CheckCell's worksheet, and that would change the CheckCell's address. A Range Name always stays with the cell. Anytime you indicate a CheckCell, the tutorial will use the BackNextClose button set. The slide examines the CheckCell when the student clicks the Next button to see if it falls


You entered $0.00 a value below the Range $8.00 to $15.00. Notice we used your price and the range in the statement above. How?


You entered $0.00 a value above the Range $8.00 to $15.00. Notice we used your price and the range in the statement above. How?


Any cell can contain formulas or data, and Excel formulas offer many tools to manipulate strings. If you look at the slide TDB_4Low Text cell in the formula bar (try it now), you will see the cell actually contains a formula. The implications? Your tutorial can use IF statements and string manipulation to tailor itself. For example, you could say, "No, no, no, you dummy, $20 is not a price between $25 and $27." But the implications go beyond text manipulation. Even CheckCells, Low boundaries, High boundries, and Jump locations can be constructed with a formula. For example, I never enter an address into a Jump column. Instead I put in an "=" and click on the target SlideID. That creates a formula pointing at that slide. If I change the SlideID at some future date, my links are intact. If I delete the target slide, any reference to it now stands out with a #REF. There is a small catch with Text formulas that is worth mentioning. A formula cannot exceed 256 characters, so if you use it to build a Text entry, you have to keep your comments short.

TDB_5

TDB_6

TDB_7

TDB_8

TDB_9


Now let's do something you might not expect. I want to you add some text to this slide, slide TDB_7, without leaving the tutorial. Just click on this slide's Text cell. Add some text to the end. (Be sure to hit Enter to finish the edit.) Then click the Back button and the Next button to refresh my balloon. 


Cool, yes? By implication, you can design your tutorial on the fly. The tutorial balloon is of a type called "Modeless". That means it just sits on top of the display doing nothing until the user clicks something in the balloon. While it sits there you can enter values, copy rows, delete rows, etc. For example, when I design tutorials I begin by creating a "template" row. It contains the SlideID (which ends in a number), sheetname, "Buttons", "BackNextClose", the name of my tutorial, blank Text, and then formulas that set JumpBackNo to the previous row and JumpNextYesOK to the next row. Then I copy the template through 20 or so rows. Excel automatically increments my SlideID. All I have to do is fill in the Text.


Now I want to show you how to use Bullets and numbers, but I have a small problem. Those columns are far to the right of the display. You may be familiar with "frames", an Excel feature that splits the display horizontally or vertically. But instead of asking you to split the display, let me do it for you. When you click "Next", the tutorials will run an "OnEntry" subroutine that has been specially designed for the next slide. Click Next.


There, the OnEntry routine called "TDB_9_OnEntry" ran and split the display into four frames. Of course, you can split the display manually at any time. When not in use, the splitters are located in the scroll bars. Any slide can have an OnEntry subroutine and OnExit subroutine. Of course, you must get a programmer to write the code. Although this feature is rarely used, it does give you control over virtually any operation. For example, you could demonstrate a few changes, then perform an UndoToStartOfRound.


Let's look at using the OptionText to set up Radio Buttons. Take a look at SlideID TDB_11. When you click Next, it will set up a slide with three options as radio buttons.

TDB_10

You selected option 1, Apple TDB_11

You selected option 2, Orange TDB_11

You selected option 3, Banana TDB_11

TDB_11

TDB_12

TDB_13

TDB_14

TDB_15

Welcome to the Using Capstone.xls tutorial. TLIST_1

OFFL_1

OFFL_5


Here they are. Also note that I have changed the ButtonSet to "None". With no buttons available, the user must choose one of the Radio buttons. Of course, I could have just as easily used BackNextClose, or OK, or Close, or some other button set.

How To Design TutorialsHow To Design TutorialsHow To Design Tutorials


The Bullet option looks like this. It is the same basic structure, but msoBalloonType is set to Bullets and there are no associated Jumps.


The remaining Balloon type is Numbers. It presents a list, like a "To Do" list.


The office assistant only allows up to five "Option" entries, whether they are bullets, numbers, or buttons.


Finally, a word about launching the Tutorial. The design assumes that a programmer has placed a button on the worksheet (or the toolbar). The button is attached to a VBA routine that launches the tutorial options that are available on that worksheet. Since tutorials are launched from a VBA event you can attach tutorials to any event that calls VBA -- a button click, opening a spreadsheet, a menu item, etc.


That's it. This wrap-up slide uses one new button set, BackClose. You will find other button sets in the comment attached to msoButtonSet.

A quick tour of the Capstone.xls workbook


There is a main menu across the top of the screen. This houses 7 menu options with sub-menus under each category. There are also icons located down the right side of the screen. These icons will allow you to quickly jump to areas within the software.


After the tutorial, you will want to browse the top menu bar to see what the sub-menus offer. For now, let me tell you where the most used items are:

OFFL_6

Which icon will get you to the R&D department? OFFL_7

OFFL_8

OFFL_8

OFFL_8a

OFFL_8

OFFL_9

OFFL_10

OFFL_11

OFFL_12

OFFL_13

OFFL_14


If you put your cursor on the each icon, you will get an information box stating where this icon will bring you to.

A quick tour of the Capstone.xls workbookA quick tour of the Capstone.xls workbook

Correct! You could have gotten to this area by clicking on Strategy and R&D from the top menu. But the icons are a lot easier.


Wrong! This would have brought you to the Marketing department. The first icon would have taken you to the R&D department. You could have also clicked on Strategy and R&D from the top menu. But the icons are a lot easier.


Wrong! This would have brought you to the Production department. The first icon would have taken you to the R&D department. You could have also clicked on Strategy and R&D from the top menu. But the icons are a lot easier.


Make sure you are in the R&D page. Notice the green cells. These cells are the only areas where you can input your decisions. You will just type in your decision and click the enter key.


By entering your decisions, the yellow cells and the graphs will change, to provide you with input on how your decisions will effect the company.


You will also notice little red triangles on this page.


If you put your cursor on the wording just to the left of the triangle, it will open up an information box regarding an explanation for that row or column.


You may also encounter some decisions that you put in causes the green cell to turn RED . Although part of the learning experience is for you to make mistakes and learn from them. We will alert you with these red cells if you are about to make a typo or enter an unacceptable value.


As you go through the other departments and make decisions, remember that the only areas you can make decisions in are the green cells.


Don't forget to save your decisions (4th icon from the bottom) before exiting the software. Saving decisions to the Internet is the only way to make them official.

OFFL_15

Best of luck and remember to have fun. OFFL_16

TLIST_5

TXLS_1

TXLS_2

TXLS_3

TXLS_4

TLIST_5

TCOU_1

TCOU_2

TCOU_3

TCOU_4

TLIST_1

MXLS_F1


Now that you have had a quick overview on using Capstone.xls, you may want to go through the Worksheet tutorials to give you a better idea of how to manage each department of your company.



Welcome to the A quick tour of the Capstone.xls workbook tutorial.

A quick tour of the Capstone.xls workbookA quick tour of the Capstone.xls workbookA quick tour of the Capstone.xls workbookA quick tour of the Capstone.xls workbookA quick tour of the Capstone.xls workbookA quick tour of the Capstone.xls workbook

Welcome to the A quick tour of the Capstone Courier tutorial. Here are a few example slides to get you started designing the Tutorial.

A quick tour of the Capstone.xls workbookA quick tour of the Capstone.xls workbookA quick tour of the Capstone.xls workbookA quick tour of the Capstone.xls workbook

A quick tour of the Foundation Workbook

The Foundation workbook is your decision support package. You use it to:


You navigate the workbook with the FOUNDATION MENU at the top of display, or with the Toolbar shortcuts at the right of the display.

MXLS_F2

MXLS_F3

MXLS_F4

MXLS_F5

MXLS_F6

MXLS_F7

MXLS_F8

MXLS_F9


We will be focusing on the decision worksheets in this tutorial, but here are a few words about the other options:


Usually you begin with the Strategy menu. Click Strategy and select R&D.


All decision worksheets have a few things in common:


R&D decisions drive product design. You update old products and invent new ones. Usually you begin your decision making in R&D. Major issues include:


Typically you make R&D decisions and then move on to Marketing. Select Marketing from the Strategy menu or the toolbar.


Marketing decisions revolve around "the 4 P’s of Marketing".


Perhaps the most important decisions you make on the Marketing worksheet are under "Your Sales Forecast". The computer works up a "Computer Prediction", but it is not a good one. The computer knows nothing about your competitors, so it assumes that each competitor offers one "fair" product in each segment. In practice your competitors will do something different. However, all of the proforma financial reports depend upon a forecast. If you do not provide one, the proformas use the computer's.


Let's move on to Production. Select Production from the Strategy menu or the toolbar.

MXLS_F10

MXLS_F11

MXLS_F12

MXLS_F13

MXLS_F14

MXLS_F15

MXLS_F16


On the Production worksheet you make three types of decisions.


In the center of the page, the worksheet analyzes your margins. There are two shifts. First shift workers can also work overtime. Given your workforce and production schedule, the worksheet calculates your labor costs, material costs, and contribution margin.


Each product requires its own plant and equipment, and that can cost millions. Let's move on to Finance. Select Finance from the Strategy Menu or the toolbar.


Take a look at your cash position (lower left). It shows yesterday's position of $0, and it projects your cash position for the end of this year. All previous worksheets drive your projected cash position. If it is negative, you are projecting bankruptcy.


Bankruptcy is typically rooted in two issues. 1. A bad forecast, resulting in excess inventory. 2. Buying plant, but neglecting to fund it. You avoid bankruptcy by adjusting earlier decisions and raising the money you need.


Plant and equipment should be funded with stock issues and bond issues. Inventory expansions should be funded with current debt and working capital.


In the happy event that you have excess cash, you can retire stock, pay dividends, or retire bonds. You can see the effect of your finance decisions on the Proformas. In the menu or toolbar, select the Proforma Balance Sheet.

MXLS_F17

MXLS_F18

MXLS_F19

MXLS_F20

MXLS_F21

MXLS_F22

MXLS_F23

MXLS_F24


The Proforma Balance Sheet projects your end-of-year positions given the decisions and assumptions from all of your worksheets. It will not come true. When your decisions are put into play against your competitors, your actual sales will differ from your predictions, and this will cause different positions for inventory, cash, accounts receivable, etc. While you cannot predict the future exactly, you can use the Foundation workbook to develop best case and worst case scenarios. For example, in your worst case you would make fewer sales, even though you built enough inventory to satisfy your best case. Your proforma balance sheet would show lots of inventory and little cash. As long as you have cash in your worst case scenario, and your actual results turn out no worse than you expect, you cannot go bankrupt.


Let's see if we have a profit. Select the Proforma Income Statement from the menu or toolbar.


Strictly speaking, your Proforma Income Statement is organized in the "contribution format". It breaks costs down into two categories -- variable costs and period costs. It also breaks costs down by product so that you can see which products make or lose money.


Profits or losses are just one of the things that affect our cash account. Let's have a look at the cash flow. Select the Proforma Cash Flow Statement from the menu or toolbar.


The Cash Flow Statement summarizes what happens in the Cash account. Black numbers mean that money is flowing into cash from that source. Red numbers mean that cash is flowing out.


Different stakeholders have different expectations and concerns about the company. They monitor your performance with ratios and statistics. Select "Financial Ratios" from the menu or toolbar.


Your professor may use some of these ratios to measure your performance. The simulation pays special attention to: Return On Sales (ROS) Asset Turnover Return On Assets (ROA) Return On Equity (ROE) Cumulative Profits Market Share Stock Price Market Capitalization


This completes the tour of the entry sheets. If you are new to the workbook, we recommend two other tours:

RSIMC1_1

Office Assistant RSIMC1_1

Office Assistant RSIMC1_1

Rehearsal Simulation

Office 2007 Users, Please Note: To see the Capstone/Foundation/Comp-XM menu selections, click the Add-Ins tab above. If you do not see the Add-Ins tab, please resize the spreadsheet by double clicking the blue bar at the top of the window. Welcome to the Capstone® Rehearsal Simulation! I am your tour guide and I'll be giving you tours of each department you will head. During this training you will manage the Andrews Corporation against two programmed competitors. Do not be concerned if you have been assigned to some other team for the official simulation (Baldwin, Chester, Digby, Erie or Ferris). During the Rehearsal, everybody manages the Andrews company. There are 4 rounds to complete. You will begin the first round by managing 3 products in the R&D department and after each round you will manage more departments. After completing the fourth round your professor has given you the opportunity to run the company on your own or to start a new rehearsal. If you restart and choose to run your company on your own the coach will be disabled. You can only restart your rehearsal once every 24 hours. Making an analogy of the business simulation to a flight simulator, the uncoached rehearsal will enable you to practice various techniques flying the plane. Keep in mind though that your competitors in the rehearsal are not as tough as those in your competition. (You can choose whether to use the Office Assistant for the Coach from the CAPSTONE® MENU.)The Office Assistant is now disabled. The Coach will use a plain textbox.

The Office Assistant is now enabled. You can select features for the office assistant, including other characters, by right-clicking the character icon.

RSIMC1_1

RSIMC1_2

RSIMC1_3

RSIMC1_4

RSIMC1_5


Welcome to the R&D department! Notice the 5 existing products that you inherit. You will manage Adam and Aft and invent 1 new product. Meanwhile, your "ghost teammates" will manage the other 3 existing products. Further, your ghost teammates will be running the company using a broad differentiation strategy (quality products in all markets). Because infighting teammates may sabotage a company’s performance, your rehearsal will go better if you make broad differentiator decisions, even if you want to use a different strategy in the official simulation. If your professor allows, after you finish the coached rounds you may restart the rehearsal and try out a different strategy on your own.


In general, planning begins in R&D, then proceeds through Marketing, Production, and Finance. Further, since this is the first rehearsal round, you will only be responsible for a limited number of products in R&D. Additionally, do not be concerned about the other departments because your "ghost teammates" will manage them.


The marketplace evolves continuously. As the years pass, customers expect smaller, more powerful products. Your R&D department updates existing product designs and can invent new products.


Customers look for four things in a product's design (the customer buying criteria can be found in each segment of the Courier report); three of which are determined in the R&D department: (Feel free to examine pages 5-9 of the Courier found in the toolbar above, to view the customer buying criteria for each segment.)


Positioning. The Perceptual Map at the lower left is a marketing tool used to show how well your products meet positioning expectations. Your customers are primarily concerned with two characteristics, the product's Performance and Size. Over time they expect products to become smaller and more powerful.

#VALUE! RSIMC1_6

RSIMC1_7

#VALUE! RSIMC1_7

RSIMC1_9

RSIMC1_9

RSIMC1_11

RSIMC1_12

RSIMC1_12

Rehearsal SimulationRehearsal Simulation

Oops. We really need a Performance of 9.8. Please click Back and try again.


Oops. We really need a Size of 10.2. Please click Back and try again.


Good, now notice that there are now two Adam’s on the map. The Black label on the perceptual map tells you where Adam is today, January 1st. The Pink label tells you where it will be when it emerges from R&D and the Revision Date tells you when it completes from the R&D department. If the Revision Date exceeds 1 year the project for that product will continue the following year. As a result, the product falls behind because it's still trying to finish last year's project. Additionally, the decision cells will lock, turn yellow and prevent new projects from beginning until the following round. The cells will turn green after the Revision Date.


Check the revision date. Since the current project is showing a revision date of next year, you'll be producing and selling Adam's old specs. Keeping these specs will trigger a pause from beginning a new project next year because R&D is still trying to complete this year's project. All projects should finish within the year unless planned. Try moving the product by entering new Size and Performance values so that the revision date falls somewhere between September and December of this year.


Oops. We really need a revision that finishes in 0. Please click Back and try again.


As you're repositioning you will find that other projects may take longer, therefore, extending revision will cost more money. When you're making decisions it is important to keep an eye on this.

#VALUE! RSIMC1_14

RSIMC1_15

RSIMC1_16

RSIMC1_17

RSIMC1_18

RSIMC1_19

RSIMC1_20



A product's age is maintained by repositioning products on the perceptual map. When a product is moved, customers perceive it as younger. Its age is cut in half on the day it emerges from R&D. It becomes the "new-and-improved" product, with half its former age. The "Age at Revision" tells you what the new perceived age will be on the day the project completes. If you decide not to reposition a product, "Age at Revision" will display a dash (-).


Reliability is the third factor of importance in a customer's buying criteria. We measure reliability in hours, MTBF or Mean Time Before Failure. For instance, High tech customers help make a buying decision based on an industry range. The range is 20,000-25,000. Outside this range may result in a loss of demand (if less) or no additional demand (if more).




In the end, customers require a minimum Reliability, and they reward you with increased demand as you increase MTBF above the minimum up to a point where they do not care. Here are the ranges:


Make an adjustment to Adam's MTBF if you like. Remember, the range is between 20,000-25,000 hours.


Management can expand the company by inventing new products. In total, your company can manufacture up to 8 products.

RSIMC1_21

RSIMC1_22

RSIMC1_23

Next, NA a Size between 9.0 and 10.0. RSIMC1_23

RSIMC1_25

RSIMC1_25

RSIMC1_27

RSIMC1_27

Give Aft a Performance between 9.5 and 9.8. RSIMC1_29

RSIMC1_30

Next, give Aft a Size between 15.0 and 15.4. RSIMC1_30

RSIMC1_32


Let's invent a new product. We will create it in the first green row, just below Agape. Give the product a name (currently NA) beginning with the letter 'A'. For example, 'Ace' or 'Allan' or 'Apt'. (Do not be concerned with buying plant capacity and automation; your ghost teammates will make the purchase. You will only have to do this when you're making official decisions.)


Next, give NA a Performance between 10.0 and 11.0.


Oops. We really need a Performance between 10.0 and 11.0. Please click Back and try again.


Oops. We really need a Size between 9.0 and 10.0. Please click Back and try again.


Give NA an MTBF specification of something between 20,000 and 23,000.


Oops. We really need a MTBF between 20,000 and 23,000. Please click Back and try again.


By adding a new product your company is showing signs of expansion. Therefore, consider the R&D cost as an investment. Let's reposition Aft similar to Adam's move. You will want to target the leading edge of the segment because Performance customers are position sensitive (Check page 8 of the Courier for the customer buying criteria).



Oops. We really need a Performance between 9.5 and 9.8. Please click Back and try again.

RSIMC1_32

RSIMC1_34

RSIMC1_34

RSIMC1_36

RSIMC1_37

RSIMC2_1

HMKTG_21

RSIMC2_2


Give Aft an MTBF specification of something between 25,500 and 27,000.


Oops. We really need a MTBF between 25,500 and 27,000. Please click Back and try again.


Notice the revision dates and the R&D costs. This information is important when you begin running the company. This brings us to the last, and most strategic concerns in R&D -- scope and focus.


You are free to rework Adam, Aft, and NA. Remember to keep an eye on R&D costs, material costs, and revision dates when making changes.


When done Save your decisions from the File menu on the Capstone® menubar and advance to the next round. Good luck in the 2nd round!


Welcome to Round 2 of the Rehearsal Simulation. Objectives. During Round 2 your responsibilities have increased. You now manage Adam, Aft, and NA in R&D and you will market them in the Marketing department. Your 'ghost teammates' are making decisions for Production and Finance. Take a moment to examine the results of round 1 and then proceed to tour the Marketing department.


Great! You're almost done with round 2. Try making some decisions in R&D and Marketing. Below are some recommendations:


In Marketing, consider creating higher awareness and easier accessibility for Adam, Aft, and NA by increasing the promotion and sales budget.

Next, give your 3 products a new price. RSIMC2_3

RSIMC2_4

RSIMC2_5

RSIMC2_6

RSIMC0_1

RSIMC2_100

RSIMC2_101

RSIMC2_102



Lastly, develop a forecast for your 3 products. (For details about developing forecasts, see the Manager Guide on your Help menu.)


You can click on the Proformas and examine your projected results. Are you projecting better results this year?


If you are done making your decisions Save them from the File menu and advance to the next round. Good luck in round 3!


Let's look at the results for Round -1. In the menu click Courier and select 1. Front Page. Then click Next.


To scroll up and down the page, please use the scroll bar. Three numbers stand out in the Selected Financial Statistics.


Six of the eight performance measures used to evaluate the simulation can be found on the Front Page. They include ROS, Turnover, ROA, ROE, Cumulative Profits, and Market Share. In the menu, select Courier | 2. Stock and Bond Market.


The Stocks & Bonds page summarizes activity in the stock market and compares your bond portfolio with competitors. At $2.95, your stock price fell by -$28.60. Your credit rating is CC.

Stock price is driven by: RSIMC2_103

RSIMC2_104

RSIMC2_105

RSIMC2_106

RSIMC2_107

In the menu click Courier and Production Analysis. RSIMC2_108

RSIMC2_109



The bond market summary lists your outstanding bonds and your credit rating. Bonds are 10 year coupon notes. You will pay 10 equal interest payments annually. The principal is due as a lump sum in the 10th year.


In the menu click Courier and Financial Statements.


The Financial Statements surveys the competitor's annual reports.


Although there are many numbers of interest on this page, it's greatest value lies in comparing across competitors. You can ask questions like:



The Production Analysis looks at the companies through the eyes of the production manager.

RSIMC2_110

RSIMC2_111

RSIMC2_112

RSIMC2_113

RSIMC2_114

RSIMC2_115

RSIMC2_116

RSIMC2_117

RSIMC2_115

RSIMC2_119


In the menu click Courier and 5. Traditional Segment.


The market segment analysis tells you what customers want, who satisfied them best, and what to expect early next round.


Pay special attention to the December Customer Survey. This survey is run every month, and its results drive demand. The score is on a scale of 0 to 100. At zero, you have lost all demand, although you must have scored something earlier in the year to make this page at all. At 100, you have a perfect product in December. To estimate your demand in December, add up the scores. Your demand in December is your score divided by the sum of the scores.


In the menu click Courier and 6. Low End Segment.


The Low End Segment page is similar to the Traditional page, but focuses upon Low End customers. In the menu click Courier and 7. High End.


When you have finished looking over this page, in the menu click Courier and 8. Performance Segment.


When you have finished looking over this page, in the menu click Courier and 9. Size Segment.


When you have finished looking over this page, in the menu click Courier and 10. Market Share.


The Market Share page breaks sales down by segment and product. The charts at the top of the page merit special attention. If the bars in the Industry Unit Sales vs. Demand are not of identical height, the entire segment stocked out, suggesting possible capacity shortages. The segment shares can tell you at a glance where a competitor is focusing their resources. In the menu click Courier and Perceptual Map.


The Perceptual Map is especially useful for exposing competing strategies and market opportunities. New products appear as soon as they are promoted or acquire a production facility. In the menu click Courier and HR/TQM Report.

RSIMC2_120

RSIMC2_121

RSIMC2_122

RSIMC2_123

HPROD_14

RSIMC3_2

RSIMC3_3


The HR/TQM report is a specialty page. If your professor enables the HR or TQM Module, this page highlights the outcomes of your decision making. In the menu click Courier and Annual Report Page 1.


The Annual Report focuses upon your company. Page 1 offers the Balance Sheet and Cash Flow Statement in detail. In the menu click Courier and Annual Report Page 2.


Page 2 breaks down your Income Statement by product. The graphs at the bottom of the page summarize your historical results across the performance measures.


This completes the Capstone Courier overview. To make decisions, in the menu click Decisions and select a functional area. Click Next for the Rehearsal Simulation Round 0 Objectives.


Welcome to Round 3 of the Rehearsal Simulation. Your responsibilities have increased in round 3. You will continue to manage Adam, Aft, and NA in R&D, Marketing, and Production. Your ghost teammates are making decisions for Finance. Take a moment to examine the results of round 2 and then proceed to tour the Production department.


Let's go to R&D and make some decisions. Below are some recommendations:


In Marketing, modify prices and increase your marketing budgets for Adam, Aft, and NA. Next, develop a sales forecast for those 3 products. Below are some notes to consider.


In Production, enter in a production schedule for Adam, Aft, and NA. As discussed in the Production department tour, produce a little more than the forecast and if necessary, account for the inventory before entering a production schedule. Additionally:

RSIMC3_4

HFIN_12

RSIMC4_2

The coached rehearsal is over. RSIMC5_1

Rehearsal Finished


Now take a moment to examine your decisions. When done, save and advance to Round 4. Good luck!


Welcome to Round 4 of the Rehearsal Simulation. Your responsibilities have increased. Continue managing Adam, Aft, and NA in R&D, Marketing, Production, and Finance. Take a moment to examine the results of round 3 and then proceed to tour the Finance department.


This round you have complete freedom to manage Adam, Aft, and NA. Make some decisions in R&D, Marketing, Production, and Finance. We suggest the following.


This is the last round of the rehearsal. Review your decisions and examine the proforma reports before advancing to Round 5. Good luck!


Congratulations, you have completed basic training. Your professor has given you the option of restarting the Rehearsal with or without the coach guiding you, or you can continue through Round 8.



Welcome to uncoached Round 6 of the Rehearsal Simulation. You are responsible for all company decisions. Good luck!")


Welcome to uncoached Round 7 of the Rehearsal Simulation. You are responsible for all company decisions. Good luck!")


Welcome to uncoached Round 8 of the Rehearsal Simulation. You are responsible for all company decisions. Good luck!")Congratulations! This completes the Rehearsal Simulation The last round reports are available for your inspection.

Rehearsal Finished

Good Luck!

Welcome to Rehearsal Round 1

As a basic training graduate your professor has given you the option to play the rehearsal without the tour guide and make all decisions yourself. Or you can choose to continue the rehearsal with the guided tour and ghost teammates making any uncoached decisions. If you go it alone, without the tour, you will be responsible for all decisions in every department of the company. You can practice how your decisions play out your company's strategy. Note however, your competitors in the rehearsal may not be as sharp as those in your competition.


As a basic training graduate your professor has given you the option to play the rehearsal without the tour guide and make all decisions yourself. Or you can choose to continue the rehearsal with the






As a basic training graduate your professor has given you the option to play the rehearsal without the tour guide and make all decisions yourself. Or you can choose to restart the rehearsal. If you


Welcome to uncoached Round 6 of the Rehearsal Simulation. (You can restart your Rehearsal at any time from the File menu.")


Welcome to uncoached Round 7 of the Rehearsal Simulation. (You can restart your Rehearsal at any time from the File menu.")


Welcome to uncoached Round 8 of the Rehearsal Simulation. (You can restart your Rehearsal at any time from the File menu.")Congratulations! This completes the Rehearsal Simulation The last round reports are available for your inspection.Remember, you are responsible for making all decisions for your company this round.

RSIMF1_1

RSIMF1_1

RSIMF1_2


Office 2007 Users, Please Note: To see the Capstone/Foundation/Comp-XM menu selections, click the Add-Ins tab above. If you do not see the Add-Ins tab, please resize the spreadsheet by double clicking the blue bar at the top of the window. Welcome to the Foundation® Rehearsal Simulation! I am your tour guide and I'll be giving you tours of each department you will head. During this training you will manage the Andrews Corporation against two programmed competitors. Do not be concerned if you have been assigned to some other team for the official simulation (Baldwin, Chester, Digby, Erie or Ferris). During the Rehearsal, everybody manages the Andrews company. There are 4 rounds to complete. You will begin the first round by managing 2 products in the R&D department and after each round you will manage more departments. After completing the fourth round your professor has given you the opportunity to run the company on your own or to start a new rehearsal. If you restart and choose to run your company on your own the coach will be disabled. You can only restart your rehearsal once every 24 hours. Making an analogy of the business simulation to a flight simulator, the uncoached rehearsal will enable you to practice various techniques flying the plane. Keep in mind though that your competitors in the rehearsal are not as tough as those in your competition. (You can choose to whether use the Office Assistant for the Coach from the FOUNDATION® MENU.)


Welcome to the R&D department! Notice the existing product, Able, that you inherit. You will manage Able and invent 1 new product. Meanwhile, your "ghost teammates" will manage the other departments. Further, your ghost teammates will be running the company using a broad differentiation strategy (quality products in all markets). Because infighting teammates may sabotage a company’s performance, your rehearsal will go better if you make broad differentiator decisions, even if you want to use a different strategy in the official simulation.


In general, planning begins in R&D, then proceeds through Marketing, Production, and Finance. Further, since this is the first rehearsal round, you will only be responsible for 2 products in R&D.

RSIMF1_3

RSIMF1_4

RSIMF1_5

#VALUE! RSIMF1_6

RSIMF1_7

RSIMF1_7

RSIMF1_9

RSIMF1_9


The marketplace evolves continuously. As the years pass, customers expect smaller, more powerful products. Your R&D department updates existing product designs and can invent new products.


Customers look for four things in a product's design (the customer buying criteria can be found in each segment of the FastTrack report); three of which are determined in the R&D department: (Feel free to examine pages 5-6 of the FastTrack found in the toolbar above, to view the customer buying criteria for each segment.)


Positioning. The Perceptual Map at the lower left is a marketing tool used to show how well your products meet customer expectations. Your customers are primarily concerned with two characteristics, the product's Performance and Size. Over time they expect products to become smaller and more powerful.


Oops. We really need a Performance of 5.8. Please click Back and try again.


Next change Able's Size, top left of the R&D screen. Click on Able's Size cell and enter a value at 14.3.


Oops. We really need a Size at 14.3. Please click Back and try again.


Good. Notice that there are now two Able's on the map. The Black label on the perceptual map tells you where Able is today, January 1st. The Pink label tells you where it will be when it emerges from R&D and the Revision Date tells you when it completes from the R&D department. If the Revision Date exceeds 1 year the project for that product will continue the following year. As a result, the product falls behind because it's still trying to finish last year's project. Additionally, the decision cells will lock, turn yellow and prevent new projects from beginning until the following round. The cells will turn green after the Revision Date.

RSIMF1_11

RSIMF1_12

RSIMF1_12

#VALUE! RSIMF1_14

RSIMF1_15

RSIMF1_16

RSIMF1_17


When you're making decisions always check the revision date. If the current project is showing a revision date of next year, you'll be producing and selling Able's old specs. Keeping these specs will trigger a pause from beginning a new project next year because R&D is still trying to complete this year's project. All projects should finish within the year unless planned.


Oops. We really need a revision that finishes in 0. Please click Back and try again.


As you're repositioning you will find that other projects may take longer, therefore, extending revision dates and costing a little more money. When you're making decisions it is important to keep an eye on this.



A product's age is maintained by repositioning products on the perceptual map. When a product is moved, customers perceive it as younger. Its age is cut in half on the day it emerges from R&D. It becomes the "new-and-improved" product, with half its former age. The "Age at Revision" tells you what the new perceived age will be on the day the project completes. If you decide not to reposition a product, "Age at Revision" will display a dash (-).


Reliability is the third factor of importance in a customer's buying criteria. We measure reliability in hours, MTBF or Mean Time Before Failure. For instance, Low End customers help make a buying decision based on an industry range. The range is 14,000-20,000. Outside this range may result in a loss of demand (if less) or no additional demand (if more).

RSIMF1_18

RSIMF1_19

RSIMF1_20

RSIMF1_21

RSIMF1_22

RSIMF1_23

Next, give Acre a Size between 11.0 and 12.0 RSIMF1_23

RSIMF1_25

RSIMF1_25

RSIMF1_27

RSIMF1_27

RSIMF1_29




Of course, you are keenly concerned with both MTBF and Positioning because both form your products' material costs. Keep in mind, the better the technology, the higher the material costs. Try this experiment. Move one of your products to the leading edge of segment's circle and increase the MTBF. Notice the effect in the Material Cost chart.


Lastly, management can invent new products. Here are instructions for new inventions:


As an experiment, let's invent a new product. We will create it in the first green row, just below Able. Give the product a name (currently Acre) beginning with the letter 'A'. For example, 'Ace' or 'Acre' or 'Apt'. (Do not be concerned with buying plant capacity and automation; your ghost teammates will make the purchase. You will only have to do this when you're making official decisions.)


Next, give Acre a performance between 8.0 and 9.0


Oops. We really need a size between 8.0 and 9.0. Please click Back and try again.




Give Acre an MTBF specification of something between 20,000 and 23,000


Oops. We really need a size between 20,000 and 23,000. Please click Back and try again.


Adding products increases your company’s revenue streams. Therefore, R&D costs associated with product invention can be seen as an investment in the future. (Please Note: You


Notice both the revision date and the R&D cost. This information is important when you begin running the company. This brings us to the last, and most strategic concerns in R&D -- scope and focus.

RSIMF1_30

RSIMF2_1

HMKTG_21

RSIMF2_2

RSIMF2_3

RSIMF0_1


This completes the R&D tour. You are free to rework Able and Adam. Remember to keep an eye on R&D costs, material costs, and revision dates when making changes. When done save your decisions and advance to the next round by clicking the File menu on the Foundation® menubar.


Welcome to Round 2 of the Rehearsal Simulation. During Round 2 your responsibilities have increased. Continue managing Able and Acre in R&D and the Marketing function. Your 'ghost teammates' are making decisions for Production and Finance. Take a moment to examine the results of round 1 and then proceed to tour the Marketing department.


Great! You're almost done with round 2. Make some decisions in R&D and Marketing. Below are some recommendations:


Now make some Marketing decisions. Below are some recommendations:


Take a moment to examine your decisions and your Proforma worksheets. When done, save and advance to Round 3. Good luck!


Let's look at the results for Round -1. In the menu click FastTrack and select 1. Front Page. Then click Next.

RSIMF2_100

RSIMF2_101

RSIMF2_102

Stock price is driven by: RSIMF2_103

RSIMF2_104

RSIMF2_105

RSIMF2_106


To scroll up and down the page, please use the scroll bar. Three numbers stand out in the Selected Financial Statistics.


Six of the eight performance measures used to evaluate the simulation can be found on the Front Page. They include ROS, Turnover, ROA, ROE, Cumulative Profits, and Market Share. In the menu, select FastTrack | 2. Stock and Bond Market


The Stocks & Bonds page summarizes activity in the stock market and compares your bond portfolio with competitors. At $2.95, your stock price fell by -$28.60. Your credit rating is CC.



The bond market summary lists your outstanding bonds and your credit rating. Your bonds are 10 year coupon notes. You pay 10 equal interest payments each year. The principal is due as a lump sum in the 10th year.


In the menu click FastTrack and Financial Statements.


The Financial Statements surveys the competitor's annual reports.

RSIMF2_107

RSIMF2_108

RSIMF2_109

RSIMF2_110

RSIMF2_111

RSIMF2_112

RSIMF2_113

RSIMF2_114


Although there are many numbers of interest on this page, it's greatest value lies in comparing across competitors. You can ask questions like:


In the menu click FastTrack and Production Analysis.


The Production Analysis looks at the companies through the eyes of the production manager.


In the menu click FastTrack and 5. Low Tech Segment.


The market segment analysis tells you what customers want, who satisfied them best, and what to expect early next round.


Pay special attention to the December Customer Survey. This survey is run every month, and its results drive demand. The score is on a scale of 0 to 100. At zero, you have lost all demand, although you must have scored something earlier in the year. At 100, you have a perfect product in December. To estimate your demand in December, add up the scores. Your demand in December is your score divided by the sum of the scores.


In the menu click FastTrack and 6. High Tech Segment.


The High Tech Segment page is similar to the previous page, but focuses upon High Tech customers. In the menu click FastTrack and 7. Market Share.

RSIMF2_115

RSIMF2_116

RSIMF2_117

RSIMF2_118

RSIMF2_119

RSIMF2_120


The Market Share page breaks sales down by segment and product. The charts at the top of the page merit special attention. If the bars in the Industry Unit Sales vs. Demand are not of identical height, the entire segment stocked out, suggesting possible capacity shortages. The segment shares can tell you at a glance where a competitor is focusing their resources. In the menu click FastTrack and Perceptual Map.


The Perceptual Map is especially useful for exposing competing strategies and market opportunities. New products appear as soon as they are promoted or acquire a production facility. In the menu click FastTrack and HR/TQM Report.


The HR/TQM report is a specialty page. If your professor enables the HR or TQM Module, this page highlights the outcomes of your decision making. In the menu click FastTrack and Annual Report Page 1.


The Annual Report focuses upon your company. Page 1 offers the Balance Sheet and Cash Flow Statement in detail. In the menu click FastTrack and Annual Report Page 2.


Page 2 breaks down your Income Statement by product. The graphs at the bottom of the page summarize your historical results across the performance measures.


This completes the Foundation FastTrack overview. To make decisions, in the menu click Decisions and select a functional area. Click Next for the Rehearsal Simulation Round 0 Objectives.


Welcome to Round 3 of the Rehearsal Simulation. Your responsibilities have increased. Continue managing Able and Acre in R&D, Marketing, and Production. Your 'ghost teammates' are making decisions for Finance. Take a moment to examine the results of round 2 and then proceed to tour the Production department.

HPROD_14

HFIN_12

Welcome to Round 6 of the Rehearsal Simulation. RSIMF6_1

Welcome to Round 7 of the Rehearsal Simulation. RSIMF7_1


Great! You're almost done with round 3. Make some decisions in R&D, Marketing, and Production. Below are some recommendations:


Welcome to Round 4 of the Rehearsal Simulation. Your responsibilities have increased. You now manage all of the departments including Finance. Take a moment to examine the results of round 3 and then proceed to tour the Finance department.


This round you have complete freedom to move around the spreadsheet. Make some decisions in R&D, Marketing, Production, and Finance. We suggest the following.


Congratulations, you have completed basic training. Your professor has given you the option of restarting the Rehearsal with or without the coach guiding you, or you can continue through Round 8.

RSIMF8_1

RSIMF9_1

Greetings!


Welcome to Round 8 of the Rehearsal Simulation, the last round.


Congratulations! This completes the Rehearsal Simulation The last round reports are available for your inspection.

In R&D consider updating established products like Able. Have your projects complete before December 31st so that you can update them again next year. If you wish, you can launch new product designs, too.In R&D consider updating established products like Able. Have your projects complete before December 31st so that you can update them again next year. If you wish, you can launch new product designs, too. In R&D consider updating established products like Able. Have your projects complete before December 31st so that you can update them again next year. If you wish, you can launch new product designs, too.In R&D consider updating established products like Able. Have your projects complete before December 31st so that you can update them again next year. If you wish, you can launch new product designs, too.In R&D consider updating established products like Able. Have your projects complete before December 31st so that you can update them again next year. If you wish, you can launch new product designs, too.In R&D consider updating established products like Able. Have your projects complete before December 31st so that you can update them again next year. If you wish, you can launch new product designs, too.In R&D consider updating established products like Able. Have your projects complete

Greetings!

Administration Comp1_1

Comp1_2

Thrift Comp1_3

I am your coach. You can enable me at any time by clicking CAPSTONE MENU in the menu at the top of the display, or by clicking the Coach button at the top of the toolbar. To begin using the workbook, select a worksheet from the Strategy menu at the top of the display, or click a button from the toolbar.

Congratulations! You are about to take complete control of the Andrews Bio Sensor company. All company success is attributable to your actions. The good news, careful study of the marketplace will help you make your company a winner.

The company hired you because you are familiar with the sensor market. Administrative functions are almost identical to your previous company. In addition to the four main functional areas, R&D, Marketing, Production and Finance, you will need to make decisions in TQM and Human Resources. Let's briefly review the differences in this simulation from your previous effort. The Comp-XM® Inquirer is similar to the Capstone® Courier or Foundation® FastTrack that you used in your previous simulation. It contains year-end information about your Industry every round.

The New Segments

The Comp-XM® market has four segments, Thrift, Core, Nano and Elite. Just like your previous simulation the segments drift on the perceptual map. The price ranges remain constant every round, and if a product is priced $6 or more outside of a segment's range it will have no sales in that segment.

Thrift customers want proven products, are indifferent to technological sophistication and are price motivated: Price, $14.00-$26.00- 55% of decision; Reliability (MTBF), 14,000-20,000- 20% of decision; Positioning, performance 6.5 size 13.5- 15% of decision; Age, 3 years- 10% of decision.

Core Comp1_4

Nano Comp1_5

Elite Comp1_6

Strategy Comp1_7

TQM Comp1_8

Core customers want proven products using current technology: Price, $20.00-$32.00- 46% of decision; Age, 2 years- 20% of decision; Reliability (MTBF), 16,000-22,000- 18% of decision; Positioning, performance 8.6 size 11.4- 16% of decision.

Nano customers want cutting-edge technology that is smaller in size: Positioning, performance 10.5 size 7.5- 35% of decision; Price, $28.00-$40.00- 27% of decision; Age, 1 year- 20% of decision; Reliability (MTBF), 18,000-24,000- 18% of decision.

Elite customers want high reliability and cutting edge performance: Age, 0 years- 34% of decision; Price, $30.00-$42.00- 24% of decision; Positioning, performance 12.5 size 9.5- 22% of decision; Reliability (MTBF), 20,000-26,000- 20% of decision.

The Comp-XM® market will require you to formulate new tactics to implement your strategy. You can use the same strategy you used before or pick a new one. Since you have only four decision rounds, you may want to determine what strategy your new company has already been pursuing and continue to develop it. The segments in this market are less distinct than the segments in your former business. Straddling two segments with a "sofa-bed" product is viable, though this will become more difficult as the segments drift apart.

You may or may not have used TQM (Total Quality Management) in your previous simulation. Each TQM initiative that you invest in returns different benefits. For example, some initiatives reduce labor and material costs while others reduce R&D cycle time. Refer to the flags on the TQM Initiative worksheet for a complete discussion of TQM entries.

HR Comp1_9

Board Queries Comp1_10

Comp1_12

Good Luck! Comp1_13

In Human Resources investing in Recruiting and Training increases productivity and decreases turnover, which reduces labor costs. Workforce Complement controls the number of workers on the production line. Matching the This Year Complement to the Needed Complement on the Production screen ensures the company will have enough workers.

Recruiting and Training decisions are made on the Human Resource screen. Workforce Complement decisions are entered at the bottom of the Production spreadsheet.

Refer to the flags on the Production and Human Resource spreadsheets for a thorough discussion of Human Resource entries.

Remember! The simulation is just one part of Comp-XM®; you will need to login at www.capsim.com and answer a series of Board Queries, which will quiz you on your company's status and the state of the marketplace.

Balanced Scorecards

Also on the website, if your professor has enabled it you will see the results of your simulation displayed in the Balanced Scorecard format. A Balanced Scorecard is a common analysis technique that allows companies to gauge their performance and formulate goals. Please see "What is a Balanced Scorecard?" in the Comp-XM® Help section.To begin, review the Inquirer, then go to the Decisions menu and start formulating your decisions. Best of luck!

JumpNextYesOK CheckCell Low High JumpLow JumpHigh

MMKTG_1

MPROD_1

MFIN_1

I2

JumpNextYesOK Jump to this SlideID if the Next, Yes or OK buttons are clicked. The SlideID targetted must match exactly. Case sensitive. Tip: Use a formula to target the next slide. For example, instead of entering a SlideID like "TDB_3", enter a formula pointing to that slide like "=A5".

J2

CheckCell CheckCell is the address or name of a cell that will be examined for exceptions. For example, suppose you say, "Change Able's Performance to 10.0." When the user clicks "Next", that cell would be examined to see if it was within the acceptable range, in this case from Low>=10 and High<=10, or exactly 10. Since worksheets can have rows and columns added after you complete your tutorial, you should apply a Range Name to the CheckCell whenever possible. Here are valid CheckCell examples: A10 -- will use cell A10 on the current sheet Marketing!A10 -- will use cell A10 on the Marketing sheet. Product1Price -- will use the cell named Product1Price

K2

Low The Low end of the CheckCell's acceptable range. Any numerical value less than Low causes the next slide to be JumpLow. For example, if Low = 10.0, then a value of 10.0 passes, but 9.99999 or below fails.

L2

High The High end of the CheckCell's acceptable range. Any numerical value greater than High causes the next slide to be JumpHigh. For example, if High = 10.0, then a value of 10.0 passes, but 10.000001 or above fails.

M2

JumpLow Jump to this SlideID if the CheckCell value is less than Low. The SlideID targetted must match exactly. Case sensitive. Tip: Use a formula to target the next slide. For example, instead of entering a SlideID like "TDB_3", enter a formula pointing to that slide like "=A5".

N2

JumpHigh Jump to this SlideID if the CheckCell value is greater than High. The SlideID targetted must match exactly. Case sensitive. Tip: Use a formula to target the next slide. For example, instead of entering a SlideID like "TDB_3", enter a formula pointing to that slide like "=A5".

MFIN_3

MHR_1

MHR_1

MTQM_1

MAMK_1

ERROR_1

HRD_3

HRD_4

HRD_5

HRD_6

HRD_7

HRD_9

HRD_11

HRD_12a

HRD_12

HRD_13a

HRD_13b

HRD_13

HRD_14

HRD_14

HRD_15

HRD_16

HRD_17

HRD_18

HRD_19

HRD_20

HRD_20

HRD_21

HRD_22

0

UFIN_2

UFIN_3

UFIN_4

UFIN_5

UFIN_6

UFIN_7

UFIN_8

UFIN_9

UFIN_10

UFIN_11

UFIN_12

UFIN_13

UFIN_14

UFIN_15

UFIN_16

UFIN_17

UFIN_18

UFIN_19

UFIN_20

UFIN_21

UFIN_22

UFIN_23

HHR_2

HHR_3

HHR_4

HHR_5

HHR_6

HHR_7

HHR_8

HHR_9

HHR_10

HHR_11

HHR_12

HHR_13

HHR_14

HLAB_2

HLAB_3

HLAB_4

HLAB_5

HLAB_6

HLAB_7

HLAB_8

HLAB_8

HLAB_8

HLAB_8

HLAB_9

HLAB_10

HLAB_11

HLAB_12

HLAB_13

HMKTG_2

HMKTG_3

HMKTG_3

HMKTG_4

HMKTG_4

HMKTG_5

HMKTG_6

HMKTG_8 Mktg!C6 29 39 HMKTG_7 HMKTG_7

HMKTG_8 Mktg!C6 15 35 HMKTG_7a HMKTG_7a

HMKTG_8

HMKTG_9

HMKTG_10

HMKTG_11

HMKTG_11

HMKTG_12

HMKTG_13

HMKTG_14

HMKTG_15

HMKTG_16

HMKTG_16

HMKTG_17

HMKTG_18

HMKTG_19

HMKTG_19

HMKTG_20

HMKTG_21

RSIMC0_2

HFIN_2

HFIN_3

HFIN_4

HFIN_5

HFIN_6

HFIN_7

HFIN_8

HFIN_9

HFIN_10

Finance!C21 -1 0 HFIN_10Low HFIN_10High

HFIN_11

HFIN_11

HFIN_12

RSIMC0_2

HAMK_2

HAMK_3

HAMK_4

HAMK_5

HAMK_6

HAMK_7

HAMK_8

HAMK_12

HAMK_16

HAMK_12

HAMK_16

HAMK_12

HAMK_17

HAMK_18

HAMK_19

HAMK_20

HAMK_21

HAMK_22

HAMK_23

HAMK_24

HAMK_25

HAMK_26

TLIST_1

HTQM_2

HTQM_3

HTQM_4

HTQM_5

HTQM_6

HTQM_7

HTQM_7

HTQM_7

HTQM_8

HTQM_9

HTQM_10

HTQM_11

TLIST_1

HPROD_2

HPROD_3

HPROD_4

HPROD_5

HPROD_6

HPROD_7

HPROD_8

HPROD_9

HPROD_10

HPROD_11

HPROD_12

HPROD_13

HPROD_14

RSIMC0_2

WKLD_2

WKLD_3

WKLD_4

WKLD_5

WKLD_6

WKLD_7

WKLD_8

WKLD_9

WKLD_10

WKLD_11

WKLD_12

WKLD_13

TLIST_1

TDB_2

TDB_3

TDB_4

TDB_5 DB_TutorialCo 8 15 TDB_4Low TDB_4High

TDB_5

TDB_5

TDB_6

TDB_7

TDB_8

TDB_9

TDB_10

TDB_11

TDB_12

TDB_12

TDB_12

TDB_12

TDB_13

TDB_14

TDB_15

TDB_16

OFFL_5

OFFL_6

OFFL_7

OFFL_8

OFFL_8a

OFFL_8b

OFFL_9

OFFL_9

OFFL_10

OFFL_11

OFFL_12

OFFL_13

OFFL_14

OFFL_15

OFFL_16

OFFL_17

TXLS_2

TXLS_3

TXLS_4

TXLS_5

0

TCOU_2

TCOU_3

TCOU_4

TCOU_5

0

MXLS_F2

MXLS_F3

MXLS_F4

MXLS_F5

MXLS_F6

MXLS_F7

MXLS_F8

MXLS_F9

MXLS_F10

MXLS_F11

MXLS_F12

MXLS_F13

MXLS_F14

MXLS_F15

MXLS_F16

MXLS_F17

MXLS_F18

MXLS_F19

MXLS_F20

MXLS_F21

MXLS_F22

MXLS_F23

MXLS_F24

MXLS_F25

TLIST_1

RSIMC1_2

RSIMC1_3

RSIMC1_4

RSIMC1_5

RSIMC1_6

RSIMC1_7

RSIMC1_9 RandD!D6 9.8 9.8 RSIMC1_8 RSIMC1_8

RSIMC1_11 RandD!E6 10.2 10.2 RSIMC1_10 RSIMC1_10

RSIMC1_12

RSIMC1_14 RandD!G6 1/1/2000 12/31/2000 RSIMC1_13 RSIMC1_13

RSIMC1_15

RSIMC1_16

RSIMC1_17

RSIMC1_18

RSIMC1_19

RSIMC1_20

RSIMC1_21

RSIMC1_22

RSIMC1_23

RSIMC1_25 RandD!D9 10 11 RSIMC1_24 RSIMC1_24

RSIMC1_27 RandD!E9 9 10 RSIMC1_26 RSIMC1_26

RSIMC1_29 RandD!F9 20,000 23,000 RSIMC1_28 RSIMC1_28

RSIMC1_30

RSIMC1_32 RandD!D7 9.5 9.8 RSIMC1_31 RSIMC1_31

RSIMC1_34 RandD!E7 15 15.4 RSIMC1_33 RSIMC1_33

RSIMC1_36 RandD!F7 25,500 27,000 RSIMC1_35 RSIMC1_35

RSIMC1_37

RSIMC1_38

RSIMC2_100

RSIMC2_3

RSIMC2_4

RSIMC2_5

RSIMC2_6

RSIMC2_7

RSIMC2_101

RSIMC2_102

RSIMC2_103

RSIMC2_104

RSIMC2_105

RSIMC2_106

RSIMC2_107

RSIMC2_108

RSIMC2_109

RSIMC2_110

RSIMC2_111

RSIMC2_112

RSIMC2_113

RSIMC2_114

RSIMC2_115

RSIMC2_116

RSIMC2_117

RSIMC2_118

RSIMC2_119

RSIMC2_120

RSIMC2_121

RSIMC2_122

RSIMC2_123

RSIMC2_124

RSIMC0_1

RSIMC2_100

RSIMC3_3

RSIMC3_4

RSIMC3_5

RSIMC2_100

RSIMC4_3

RSIMU

RSIMU

RSIMU

RSIMU

RSIMF1_2

RSIMF1_3

RSIMF1_4

RSIMF1_5

RSIMF1_6

RSIMF1_7

RSIMF1_9 RandD_F!D4 5.8 5.8 RSIMF1_8 RSIMF1_8

RSIMF1_11 RandD_F!E4 14.3 14.3 RSIMF1_10 RSIMF1_10

RSIMF1_12

RSIMF1_14 RandD_F!G4 1/1/2000 12/31/2000 RSIMF1_13 RSIMF1_13

RSIMF1_15

RSIMF1_16

RSIMF1_17

RSIMF1_18

RSIMF1_19

RSIMF1_20

RSIMF1_21

RSIMF1_22

RSIMF1_23

RSIMF1_25 RandD_F!D5 8 9 RSIMF1_24 RSIMF1_24

RSIMF1_27 RandD_F!E5 11 12 RSIMF1_26 RSIMF1_26

RSIMF1_29 RandD_F!F5 20,000 23,000 RSIMF1_28 RSIMF1_28

RSIMF1_30

RSIMF1_31

RSIMF2_100

RSIMF2_3

RSIMF2_4

RSIMF2_101

RSIMF2_102

RSIMF2_103

RSIMF2_104

RSIMF2_105

RSIMF2_106

RSIMF2_107

RSIMF2_108

RSIMF2_109

RSIMF2_110

RSIMF2_111

RSIMF2_112

RSIMF2_113

RSIMF2_114

RSIMF2_115

RSIMF2_116

RSIMF2_117

RSIMF2_118

RSIMF2_119

RSIMF2_120

RSIMF2_121

RSIMF0_1

RSIMF2_100

RSIMF2_100

Comp1_2

Comp1_3

Comp1_4

Comp1_5

Comp1_6

Comp1_7

Comp1_8

Comp1_9

Comp1_10

Comp1_12

Comp1_13

Comp1_14

OptionText1 OptionText2 OptionText3

Launch the R&D tutorial from the website

Launch the Marketing tutorial from the website

Launch the Production tutorial from the website

Launch the Finance tutorial from the website

O2

OptionText Depending on the Balloon Type, OptionText appears as a radio button, a bullet, or a numbered list. Formating Options: The routine scans for in the string text and converts it to a Carraige Return Line Feed. Use {ul 1} to turn underlining on. {ul 0} to turn underlining off. Use {cf #} to express a color in the Text. 0 Black For example, {cf 1} toggles the text color to Dark Red, {cf 0} to black. 1 Dark Red 2 Dark Green 3 Dark Yellow 4 Dark Blue 5 Dark Magenta 6 Dark Cyan 7 Light Gray 248 Medium Gray 249 Red 250 Green 251 Yellow 252 Blue 253 Magenta 254 Cyan 255 White

P2


Q2

List tutorials

Launch the HR tutorial from the website

Launch the Labor tutorial from the website

Launch the TQM tutorial from the website

Launch the Advanced Marketing tutorial from the website

Positioning - the product's placement on the Perceptual Map

Age - the perceived age of the design

Reliability - how long the product will last, measured in MTBF or Mean Time Before Failure

Note that the map presents the situation at the end of this round, a forecast for where segments and products will be on December 31st.

Traditional customers want a proven design. Their interest peaks when the design is 2.0 years old.

Low End customers interest peaks when the design is old, at 7.0 years

High End customers want a brand new design, age 0.0.

Low Tech customers want a proven design. Their interest peaks when the design is 3.0 years old.

High Tech customers want a brand new design, age 0.0.

Traditional - 14,000 to 19,000 hours

Low Tech - 12,000 to 17,000 hours

High Tech - 20,000 to 25,000 hours

Low Tech - 14000 to 20000 hours

High Tech - 17000 to 23000 hours

Pick a row that begins with "Na".

Give your product a name. By convention, the first letter should match the first letter of your company.

Position the product with a Performance and Size specification.

Scope - How many products will you put on the playing field? You can have as few as one and as many as eight.

Focus -- Where are your products? Are you in every segment or only a few? Do you have more than one product in a segment?

Traditional - 14000 to 19000

Low Tech - 14000 to 20000 h

Low End - 12000 to 17000 hours

High End - 20000 to 25000 hours

High Tech - 17000 to 23000 hours






Complement. The number of employees in your workforce complement. At full complement, every job is filled.

Recruiting Spend. The "extra" amount you budget per worker to recruit high caliber workers. For example, you might pay a recruiting agency up to $5,000 per worker to find better workers to fill your job openings.

Training Hours. The number of hours per year that you send each employee to training classes.

Last Year The complement at the end of last year.

Needed. The number of workers you need to fill the current production schedule without overtime. This number changes with the Production Schedule.

This Year. Your decision for complement this year. Typically, you make it equal to "Needed". However, if you know that your workforce will be shrinking (perhaps because of improvements in Automation), you might decide to ask workers to do overtime this year to avoid hiring new people this year only to discharge them next year.

List other tutorials

$22 $23.80 $24.20

You become responsible for Complement, Recruiting Spend, and Training Hours.

Your complement should avoid overtime and over staffing.

Recruiting Spend let's you spend up to $5000 per worker to get a higher caliber of worker. Training Hours lets you send each worker to training up to 80 hours per year.

Wages -> You can give labor 80% or up to 150% of their current wages.

Benefits -> 0% or up to 150% of current benefits.

Profit Sharing-> 0% - 150% of their current profit sharing.

$1 difference in wages


Price Promotion Place

Labor will be demanding 10% more than the "best" current contract, in each of the 4 areas.

UNLESS one of the companies puts down a better offer than the 10% increase. Then of course, Labor will take the best offer on the table and use that as their demand.

The company that offered this very attractive deal will shake hands with the Labor union and be on their way. The other companies will go to Step 2.

IF Labor’s Demand falls between the company’s Starting Position and Negotiation Ceiling

THEN both parties agree to meet in the middle. They split the difference between the Company's Starting Position and Labor's demand. There is no strike.

IF Labor's Demand is above the company's Negotiation Ceiling

THEN Management walks out, and Labor strikes. Both sides will finally reach a compromise but not without any injuries. The company and labor will meet in the middle between the Negotiation Ceiling offered by management and Labor's demand.

$300 difference in benefits package

1% point difference in Profit Sharing

Set the Your Sales Forecast to zero. This will cause the Gross Revenue calculation to use the Computer Prediction for its calculations.

Starting at $24.00, try raising price in steps of $5 to $44.00, watching the Computer Prediction, Gross Revenue, and Contribution Margin.

Set the Your Sales Forecast to zero. This will cause the Gross Revenue calculation to use the Computer Prediction for its calculations.

Starting at $10.00, try raising price in steps of $5 to $45.00, watching the Computer Prediction, Gross Revenue, and Contribution Margin.

Above the range, customers can find substitutes.

Below the range, they become suspicious, thinking, "What is wrong with this product?"

At $5.00 above or below the expected price range, demand falls to zero.

Accessibility. How easy is it for the customer to work with you? This is an infrastructure concern -- showrooms, distribution channels, customer support, etc. Accessibility is measured on a scale of 0% to 100%. At 0%, customers find it difficult to work with you. At 100% easy.

Salesmanship. Are sales people trying to persuade customers to buy your product? The more sales people, the greater the effect upon demand. But the effect is temporary. Next year it is forgotten. If you have lots of unsold inventory to push, cranking up the Sales Budget puts more sales people on the problem.

Decays over time. Each year you lose 1/3rd of your accessibility.

Diminishing returns apply. Products reach diminishing returns at $3 million. However, the segment’s overall diminishing return is not reached until budgets total $4.5 million (for example, two products with Sales Budgets of $2.25M each). Achieving 100% accessibility is difficult. You need two products inside the segment. Once you do reach 100% accessibility, you can scale back the segment’s total

Long-term Debt (Bonds) Short-term Debt (Current Debt) Stock Offering

AR Lag. Your credit terms are expressed in days - 30 days means you give customers 30 days to pay you. If you offer no credit terms, demand falls to about 65% of maximum. At 30 days, demand is 92%. At 60

AP Lag. The Accounts Payable Lag affects production and your ability to meet demand. Suppliers become concerned when they are not paid promptly. Eventually they withhold material for production. At 30 days, they withhold 1%.

HFIN_10High

Print Media Direct Mail Web Media

Email and Web Media Print Media and Web MediaPrint Meda and Direct Mail

$300 thousand $800 thousand $700 thousand

Outside Sales Inside Sales Distributors


CPI, Vendor JIT, QIT, Channel Support Systems,Concurrent Engineering, Benchmarking,

Concurrent Engineering and Quality Function Deployment Effort

Channel Support Systems and Quality Function Deployment Effort


What are your margins?

#VALUE! #VALUE!

How much inventory do you want on hand for sale this year?

What is your plant capable of producing?

The decision cells are green. The yellow cells are protected calculations and references.

Units are expressed in thousands. For example, Able's first shift capacity is 2,500. This represents 2,500,000 units.

Most labels feature explanations, comments, and tips in a pop-up comment. For example, glide your cursor over Production After Adj. for the constraints that limit production.

You have 262 units in the warehouse.

If your worst case comes true, you will have lots of inventory. This could consume all of your cash, resulting in an emergency loan (also known as bankruptcy.)

If your best case comes true, you risk running out of inventory. Missed sales are very painful. After all, at the moment you miss the sale, you have already paid all of the expenses with the units you did sell. That missed sale's margin would have been a straight contribution to profit.

The automation level. The higher the automation, the fewer the workers.

The hourly wage rate and benefits package in this year's labor contract. The standard contract gives workers a 5% raise each year, although this can change if your professor schedules a labor contract negotiation.

The number of units produced on second shift.

Positioning on the Perceptual Map. In general, the higher the technology, the more expensive the materials needed to build the product.

MTBF specification. The more reliable the product, the more expensive the materials.

TIP. Second shift production is not necessarily a bad thing, because you spread your fixed costs (depreciation and SG&A expenses) over two shifts instead of one.

At an automation rating of 1.0, it is easy to move a product across the Perceptual Map. At 10.0, it is difficult.

Automation is expensive - $4 per unit for each additional point. As an experiment, raise Able to 10.0.

At the start of the simulation, a product with an automation rating of 1.0 would have labor costs of about $11.20 per unit. A product with an automation rating of 10.0 would have first shift labor costs of $1.12 per unit.

Add 100 units of capacity to Adam.

Look at the 'Investment ($000)' line to see the cost of your plant improvements.

Try increasing Adam's Automation by .5 points.

team size meetings member skills

$O$272

Apple Orange Banana

Brazil Argentina Peru

Change Acre's MTBF to 12000.Move Adam to Performance 10.2, Size 9.5

Move Able to Performance 15.1 Size 5.3

File is where you will be able to save your decisions or exit Capstone.

Strategy houses the different areas of the company where you will be making decisions. You can go to these areas by clicking on the name of the department.

Proformas will provide you with a look at your financials that have been calculated based on your forecasted sales.

First Second Third

Select another tutorial

Make decisions Develop scenarios Forecast financial results

The Coach is found under FOUNDATION MENU or with the top button in the toolbar.

View expands the workbook to cover the entire display (best for team meetings) or presents the workbook in a normal window.

File offers options to save your work.

The green cells are decision cells. To make a decision, change the green cell to some other value.

The yellow cells are results. They are protected from change.

The results of your decisions ripple through the other worksheets.

Where to position your product. There are two segments - Low Tech and High Tech. They appear as circles on the Perceptual Map.

The perceived age of the product's design. Low Tech wants a proven design. High Tech wants cutting edge designs.

The product's reliability. Low Tech will sacrifice reliability for low price. High Tech expects products to last.

Price - Low Tech customers want low prices. High Tech customers pay more if you offer them excellent product designs.

Promotion - Your Promo Budget drives customer awareness. The higher the awareness, the more likely it is that customers will seek out your product.

Place - Your Sales Budget drives "accessibility", the ease with which customers can interact with you, find your product, work with sales people and customer service, etc.

Production Schedule. How many units (in thousands) will you produce this year?

Buy/Sell Capacity. Will you add production facilities or downsize?

Automation Rating. On a scale of 1 to 10, how automated is the production line? A 1.0 means lots of skilled workers produce the product. At 10.0 robots do the work with a few skilled humans supervising the process.

The Foundation Reports Saving your work




Note that the map presents the segment's and product's position at the end of this round, on December 31st.

Decisions are to be made only to the cells that are green.

Yellow cells are protected but data can change from decisions made to the green cells.

In Excel you must press Enter or Tab to complete typing a value in a cell.

Positioning affects material cost. The higher the technology, the higher the material cost. You could run experiments by moving Adam behind its current specs (black font) with less performance and larger size. Meanwhile, check the

Your company is pursuing a broad differentiation strategy in the rehearsal so you'll be offering premium products in R&D.

Traditional - 14,000 to 19,000 hours



Differentiators would like to offer an MTBF between 23,500-25,000 hours.

By modifying a product's MTBF it will cost you and it will extend the revision date.



Tour the results for Round 1 in the Capstone® Courier and Annual Report.

Learn the Marketing department.

In R&D consider repositioning Adam, Aft, and NA. Remember to finish your projects before December 31st so that you can update them again next year.

Remember customers are expecting better performance and smaller sized products over time.

As a broad differentiator your company will provide premium products in R&D.

New products are newsworthy events so all new products enter the marketplace with 25% awareness. You may add additional awareness through the promotion budget if you would like.

As a broad differentiator your company will create high awareness and easy accessibility in Marketing.

Be sure to use the correct segment pages of the Courier when checking for price ranges. Additionally, subtract $.50 from those ranges to account for the expected drop in price.

As a broad differentiator your company will price at or near the top of the price range.

Use the Courier's segment pages to find the Total Industry Unit Demand. You will need to do this for each segment that Adam, Aft, and NA fall in.

Multiply the Total Industry Unit Demand and the Growth Rate. For example, 1,952 * 1.162 = 2,268--> this year's demand for the High tech segment.

Take 2,268 and divide it by the number of products a segment. For example, 2,268 / 3 = 756. 756 units represents an average per product for the High tech segment.

Emergency Loan. We took an emergency loan for $46,090,447. Typically emergency loans result from inventory expansions or under-funded plant expansions.

Sales. At $86,843,321 your sales are below average. You began with a company doing about $100M in sales. With the market growing at roughly 14% per year, in Round 1 the average company could expect sales between $110M and $120M.

Profits. At -$7,723,815 our profits are terrible. We need to at least break even.

Book Value. Book value equals your total equity divided by the number of shares outstanding. It sets a base for your stock price.

EPS or Earnings Per Share. EPS reflects your profitability this round, and in some sense suggests your future earnings.

Dividends. From a stockholder's perspective, a dividend is similar to an interest payment. It suggests how much of future profits will wind up in stockholder hands.

Series#. The series number consists of the interest rate, the letter "S", and the year the bond is due. For example, 11.0S2006 says, "This bond pays 11.0% interest and is due in 2006."

Face. The Face amount is the remaining principal on the bond. It is due in full when the bond matures.

Yield. Yield compares the interest payment with today's closing price. When a bond is issued, the rate is "locked in". Yield tells an investor how their bond compares with today's rates.

Cash Flow. The Cash Flow statement summarizes activity in the Cash Account. Black numbers mean that over the course of the year, there was a net inflow of cash. Red numbers mean money flow out of Cash and into the category.

Balance Sheet. The Balance Sheet breaks down what is owned (the assets) by catorgies of people that funded the assets. It answers the question, "How much of the assets was paid for by vendors (A/P), bankers (Current Debt), bond holders, (Long Debt), stockholders (Common Stock), and management (Retained Earnings).

Income Statement. The Income Statement measures your ability to create new wealth (profits) by working our assets to produce Sales. Using your assets, you make sales. The expenses to make the sale are subtracted, leaving (hopefully) a gain or profit.

How much did my competitors spend on plant improvements? How did they finance it?

Are my competitors changing their credit policies? Are they offering better terms to customers? Vendors?

Who has the biggest asset base?

Units in Inventory. If the value is zero, the product stocked out. If it is a considerable portion of units sold, the product did not live up to the company's expectations.

Material Cost, Labor Cost, and Contribution Margin. What does it cost to make the product, and is it making any money?

2nd Shift & Overtime. Second shift is paid a 50% wage premium over first shift. (Not necessarily a bad thing, because you are also achieving high plant utilization.) Overtime means first shift workers must work second shift to fill the production schedule. Overtime pays a 50% premium.

Statistics. Look here for segment size and growth rate.

Customer Buying Criteria. Rank orders the buying criteria and lists the specific target values.

Market Share Actual Versus Potential. Often a competitor stocks out. This chart tells you how much market share was lost or gained as a consequence.

Review the results for Round 2 in the Capstone Courier and Annual Report.

Tour the Production department.

In R&D update your designs by repositioning Adam, Aft, and NA. Remember to finish your projects before December 31st so that you can update them again next year.



Use the Courier's segment pages to find the Total Industry Unit Demand. You will need to do this for each segment that Adam, Aft, and NA fall in.

Examine your competitors. Have they improved designs? Awareness? Accessibility? Prepare a sales forecast. Enter your worst-case into the forecast.

To forecast, multiply the Total Industry Unit Demand and the Growth Rate. For example, 2,268 * 1.162 = 2,635--> this year's demand for the High tech segment.

Consider whether to invest in capacity and automation. Build enough additional inventory to satisfy customers in your best-case scenario.

Consider selling some capacity if you find plants will be sitting idle.

Tour the Finance department.

I'm ready for more!

Review the results for Round 3 in the Capstone Courier and Annual Report.

In R&D update your designs just like you have in the first 3 rounds.

In Marketing, examine your competitors. Have they improved designs? Awareness? Accessibility? Prepare a sales forecast. Enter your worst-case into the forecast.

In Production, consider whether to invest in capacity and automation or selling off idle plants. Build enough additional inventory to satisfy customers in your best-case scenario.

Let's review the results of Round 4.

Take me to a place where I can start over.

I just want to look at my reports.

Play this round without coaching, I'll make all decisions.

Play this round with coaching and help from ghost teammates.Play this round without

coaching, I'll make all decisions.





Play this round with coaching and help from ghost teammates.Continue to Round 5 of this

Rehearsal competition. I'll make all decisions.





Decisions are to be made only to the cells that are green.

Yellow cells are protected but data can change from decisions made to the green cells.

In Excel you must press Enter or Tab to complete typing a value in a cell.

Note that the map presents the situation at the end of this round, a forecast for where segments and products will be on December 31st.

Try moving the product by entering new Size and Performance values. Notice the revision dates move farther as more changes are made.

Positioning affects material cost. The higher the technology, the higher the material cost. You could consider making Able more low tech, with less performance and larger size. This would reduce material cost, and you could pass the savings on to

You could reposition Able to another segment, probably the Low End segment. As we will see, Able has a large plant. It would be easier to utilize its capacity in the Low End segment.

You might just "tweak" Able. If you moved it a modest amount, you would cut the age in half without seriously affecting the positioning.

The Marketing Manager's job.

Tour the results for Round 1 in the Foundation FastTrack and Annual Report.

Consider updating all of your products' design. Remember to finish your projects before December 31st so that you can update them again next year.



Price both your products within their segment's range. Check pages 5 & 6 of the FastTrack for additional information.

Consider creating awareness and accessibility for your new product(s) by providing a promotion and sales budget. (In addition, new products are newsworthy events so all new products enter the marketplace with 25% awareness for on top of the original promotion budget.)

Develop a forecast by multiplying the Total Industry Unit Demand and the Growth Rate. For example, 2,898 * 1.10 = 3,188--> this year's demand for the Low Tech segment.

Emergency Loan. You took an emergency loan for $46,090,447. Typically emergency loans result from inventory expansions or under funded plant expansions.

Sales. At $86,843,321 your sales are above average. You began with a company doing about $41M in sales. The market grows at roughly 15% per year. In Round 1 the average company could expect sales between $44M and $49M.

Profits. At -$7,723,815 your profits are terrible. You need to at least break even.

Book Value. Book value equals your total equity divided by the number of shares outstanding. It sets a base for your stock price.

EPS or Earnings Per Share. EPS reflects your profitability this round, and in some sense suggests your future earnings.

Dividends. From a stockholder's perspective, a dividend is similar to an interest payment. It suggests how much of future profits will wind up in stockholder hands.

Series#. The series number consists of the interest rate, the letter "S", and the year the bond is due. For example, 11.0S2006 says, "This bond pays 11.0% interest and is due in 2006."

Face. The Face amount is the remaining principal on the bond. It will be due in full when the bond matures.

Yield. Yield compares the interest payment with today's closing price. When a bond is issued, the rate is "locked in". Yield tells an investor how their bond compares with today's rates.

Cash Flow The Cash Flow statement summarizes activity in the Cash Account. Black numbers mean that over the course of the year, there was a net inflow of cash. Red numbers mean money flow out of Cash and into the category.

Balance Sheet The Balance Sheet breaks down what is owned (the assets) by catorgies of people that funded the assets. It answers the question, "How much of the assets was paid for by vendors (A/P), bankers (Current Debt), bond holders, (Long Debt), stockholders (Common Stock), and management (Retained Earnings).

Income Statement The Income Statement measures your ability to create new wealth (profits) by working our assets to produce Sales. Using your assets, you make sales. The expenses to make the sale are subtracted, leaving (hopefully) a gain or profit.

How much did my competitors spend on plant improvements? How did they finance it?

Are my competitors changing their credit policies? Are they offering better terms to customers? Vendors?

Who has the biggest asset base?

Units in Inventory. If the value is zero, the product stocked out. If it is a considerable portion of units sold, the product did not live up to the company's expectations.

Material Cost, Labor Cost, and Contribution Margin. What does it cost to make the product, and is it making any money?

2nd Shift & Overtime. Second shift is paid a 50% wage premium over first shift. (Not necessarily a bad thing, because you are also achieving high plant utilization.) Overtime means first shift workers must work second shift to fill the production schedule. Overtime pays a 50% premium.

Statistics. Look here for segment size and growth rate.

Customer Buying Criteria. Rank orders the buuying criteria and lists the specific target values.

Market Share Actual Versus Potential. Often a competitor stocks out. This chart tells you how much market share was lost or gained as a consequence.

The Production department.


The Finance department.

In R&D consider updating established products like Able. Have your projects complete before December 31st so that you can update them again next year. If you wish, you can launch new product designs, but don't forget to puchase plant capacity and automation for those lines in the Production department.


In Production consider whether to invest in capacity and automation. Build enough additional inventory to satisfy customers in your best-case scenario.


In R&D update your designs.


In Production, consider whether to invest in capacity and automation or selling off idle plants. Build enough additional inventory to satisfy customers in your best-case scenario.

Let's review the results of Round 4.


New Users - If you are new to the workbook, click here for a list of tutorials that will help you get started.

In R&D consider updating established products like Able. Have your projects complete before December 31st so that you can update them again next year. If you wish, you can launch new product designs, too.


New Users - If you are new to the workbook, click here for a list of tutorials that will help you get started.

In R&D consider updating established products like Able. Have your projects complete before December 31st so that you can update them again next year. If you wish, you can launch new product designs, too.


(You can choose to use the Office Assistant for the Coach from the Comp-XM® MENU.)

OptionText4 OptionText5 Jump1 Jump2

MRD_2

MMKTG_2

MPROD_2

MFIN_2

R2


S2


T2

Jump1 Jump to this SlideID if the OptionText1, a radio button, is clicked. The SlideID targetted must match exactly. Case sensitive. Tip: Use a formula to target the next slide. For example, instead of entering a SlideID like "TDB_3", enter a formula pointing to that slide like "=A5".

U2


MHR_2 MHR_3

MTQM_2

MAMK_2

TLIST_1

Size customers want a recent design with an age of 1.5 years.

Performance customers want a young design of 1.0 years.

Performance - 22,000 to 27,000 hours

Size - 16,000 to 21,000 hours

Give your product a reliability that would satisfy customers.

Size - 16000 to 21000 hoursPerformance - 22000 to 27000 hours


1st and 2nd Shift. Your headcounts on first shift and second shift. Second shift worker wages are 150% of first shift worker wages.

Overtime. The percentage of first shift workers on overtime. 100% means that every first shift worker is working a double shift. 10% means that, on average, each 1st shift worker performs 10% overtime. Overtime increases turnover and drags down productivity.

TLIST_1

HLAB_7a HLAB_7b

Your goal is to improve productivity, which in turn leads to a smaller, more stable workforce.

The trade-off costs include higher recruiting expense, training expense, and a slightly larger complement to cover people already in training.

Annual Raise -> 0% - 150% of their current annual raise rate.

TLIST_1

1% point difference in Annual Raise

Within the expected range, demand follows a classic price demand curve.

Email Trade Shows

HAMK_9 HAMK_10

HAMK_13 HAMK_14

TLIST_1

HTQM_6a HTQM_6b

Quality Function Deployment Effort, and CCE/6 Sigma Training

TLIST_1

#VALUE!

This will force your proformas into a conservative position. They will show you the worst-case, where you have lots of unsold inventory. If you still have cash in this worst-case scenario, you can ride out a bad year without cash flow problems.

Next try selling 200 units. To sell capacity, enter a negative number, -200. The investment will turn red, indicating that you are getting money for the sale. Capacity is sold at 65% of its original value.

TIP. It never makes sense to sell automation. You are charged for the change in automation, up or down in rating, so you would actually pay money to reduce your plants' efficiency.

TLIST_1

Go back a slide TDB_11a TDB_11b

Chili Equador

Add a new product called "Axle" in the Size segment.

Last Year’s Report is where you can view and print the results from last year. Most important one being the Capstone Courier. Printing the Courier from this location provides you with a prefect printed copy.

OFFL_8a OFFL_8b

TLIST_1

Print last year's reportsAnalyze competitors and trends

Undo allows you to throw away recent work. You can Undo to the last time you saved, or throw away everything and start over.

Last Year's Reports summarize the results for the previous round.

The Coach offers a tutorial for all decision entry worksheets. To view the tutorial, select the entry sheet and click the Coach button.

The breadth of your product line. You start with one product, and you can invent up to four more.

The concentration of your products. You might spread them out along the product life cycle, or you might cluster them to appeal to segment preferences.

Product - Product was actually handled in R&D. It concerns the design of the product and how well it fits customer needs.

CONSTR CONSTR

Performance - 22,000 to 27,000 hours

Size - 16,000 to 21,000 hours

RSIMC2_100 HMKTG_1

You can think of the stock in terms of issues. How much wealth are you creating for stockholders? How much of the profits do you give to them, and how much do you need to keep to grow the company?

Close. The closing price is what other investors would pay for the bond today. For example, $99.28 means than another investor would pay $99.28 for every $100.00 of face amount.

Bond Rating. The credit rating of the company. "AAA" is best. Then AA, A, BBB, BB, … D. Bonds that are rated "BBB" and above are considered "investment grade". "BB" and below are considered "junk bonds". Your credit rating is a function of your debt/assets ratio.

Which competitors emphasize SG&A expenses to drive up demand?

Are there surprises in the Income Statement's "Other" line, which might indicate unusual fees or writeoffs?

Automation and Capacity. Automation, on a scale of 1.0 to 10.0, indicates the number of workers required to staff the line. At 1.0, many workers. At 10.0, few workers. Capacity is the number of units you can produce on first shift. You can run a second shift to double production.

Plant Utilization. Plant utilization of 100% means you are running a complete first shift. 200% means you are running two complete shifts.

Top Products in Segment. Compares products across the buying criteria value.

RSIMC2_100 HPROD_1

Take 2,635 and divide it by the number of products a segment. For example, 2,635 / 3 = 878. 878 units represents an average per product for the High tech segment.

Find whether your products sold more than 878 units last year from the Courier. If so, your product is considered above average and may sell more this year. Enter your prediction for each product.

RSIMC2_100 HFIN_1

RSIMC2_100 RSIMC5_2

RSIMC2_100 RSIMU

In Finance, be sure that you have a positive cash balance on December 31st. We encourage a cash position 3%-7% of sales in cash.

Finance all your investing activities appropriately.

RSIMU RSIMC0_1

RSIMU RSIMC0_1

RSIMU RSIMC0_1

RSIMU RSIMC0_1

RSIMU RSIMC5_2

RSIMF2_100 HMKTG_1

Take 3,188 and divide it by the number of products a segment. For example, 6,098 / 3 = 1,016. 1,016 units represents an average per product for the High tech segment.

For more details about developing a Sales Forecast see the Manager Guide on your Help menu. Enter your prediction for each product.

You can think of the stock in terms of issues. How much wealth are you creating for stockholders? How much of the profits do you give to them, and how much do you need to keep to grow the company?

Close. The closing price is what other investors would pay for the bond today. For example, $99.28 means than another investor would pay $99.28 for every $100.00 of face amount.

Bond Rating The credit rating of the company. "AAA" is best. Then AA, A, BBB, BB, … D. Bonds that are rated "BBB" and above are considered "investment grade". "BB" and below are considered "junk bonds". Your credit rating is a function of your debt/assets ratio.

Which competitors emphasize SG&A expenses to drive up demand?

Are there surprises in the Income Statement's "Other" line, which might indicate unusual fees or writeoffs.

Automation and Capacity. Automation, on a scale of 1.0 to 10.0, indicates the number of workers required to staff the line. At 1.0, many workers. At 10.0, few workers. Capacity is the number of units you can produce on first shift. You can run a second shift to double production.

Plant Utilization. Plant utilization of 100% means you are running a complete first shift. 200% means you are running two complete shifts.

Top Products in Segment. Compares products across the buying criteria value.

RSIMF2_100 HPROD_1

RSIMF2_100 HFIN_1

RSIMF2_100 RSIMC5_2

Review your decisions and examine the proforma reports. Make any final changes to R&D, Marketing and Production.

When finished, save and advance to Round 4. Good luck!

In Finance, be sure that you have a positive cash balance on December 31st. We encourage a cash position 3%-7% of sales in cash.

When finished reviewing your decisions and examining the proforma reports, save and advance to Round 5. Good luck!

Really Short.

Really Short.

Save your decisions without advancing. Review your decisions, your teammates' decisions in Finance, and your proforma reports. Make any final changes to your R&D, Marketing and Production decisions.

Save your decisions without advancing. Review your decisions, your teammates' decisions in Finance, and your proforma reports. Make any final changes to your R&D, Marketing and Production decisions.

Jump3 Jump4 Jump5 OnEntry OnExit

FollowHyperlink

FollowHyperlink

FollowHyperlink

 (You can choose the Office Assistant for the coach from the CAPSTONE® MENU.)

V2


W2


X2


Y2

OnEntry Run the subroutine named here before the slide is presented. Obviously, a programmer had to write the routine. For example, you might want to process a set of Check boxes. Balloons can be configured with checkboxes instead of radio buttons. Or you might want to protect certain parts of the spreadsheet, or go to a particular place in the reports.

Z2

OnExit Run the subroutine named here after the slide has been exited. Obviously, a programmer had to write the routine. For example, you might want to process a set of Check boxes. Balloons can be configured with checkboxes instead of radio buttons. Or you might want to protect certain parts of the spreadsheet, or go to a particular place in the reports.

FollowHyperlink

FollowHyperlink

FollowHyperlink

FollowHyperlink

FollowHyperlink

DisplayCourier5DisplayCourier5

RandD

HLAB_7c

Marketing

Finance

HAMK_11

HAMK_15

Production

TDB_9_OnEntry

TDB_11c TDB_10

OFFL_8c

RehearsalSimulat

DoNotUseAssistant

UseAssistant

Welcome to the Capstone® Rehearsal Simulation! I am your tour guide and I'll be giving you tours of each department you will head. During this training you will manage the Andrews Corporation against two programmed competitors. Do not be concerned if you have been assigned to some other team for the official simulation (Baldwin, Chester, Digby, Erie or Ferris). During the Rehearsal, everybody manages the Andrews company. There are 4 rounds to complete. You will begin the first round by managing 3 products in the

RehearsalSimulationTeammates

DisplayCourier1

DisplayCourier2

DisplayCourier3

DisplayCourier4

DisplayCourier5

DisplayCourier6

DisplayCourier7

DisplayCourier8

DisplayCourier9

DisplayCourier10

DisplayCourier11

DisplayCourier12

DisplayAnnRpt1

DisplayAnnRpt2



RehearsalRestart

RehearsalUnCoached

RandD

Welcome to the Foundation® Rehearsal Simulation! I am your tour guide and I'll be giving you tours of each department you will head. During this training you will manage the Andrews Corporation against two programmed competitors. Do not be concerned if you have been assigned to some other team for the official simulation (Baldwin, Chester, Digby, Erie or Ferris). During the Rehearsal, everybody manages the Andrews company. There are 4 rounds to complete. You will begin the first round by managing 2 products in the

DisplayCourier1

DisplayCourier2

DisplayCourier3

DisplayCourier4

DisplayCourier6

DisplayCourier8

DisplayCourier10

DisplayCourier11

DisplayCourier12

DisplayAnnRpt1

DisplayAnnRpt2

ChngDate

Office 2007 Users, Please Note: To see the Capstone/Foundation/Comp-XM menu selections, click the Add-Ins tab above. If you do not see the Add-Ins tab, please resize the spreadsheet by double clicking the blue bar at the top of the window.

After completing the fourth round your professor has given you the opportunity to run the company on your own or to start a new rehearsal. If you restart and choose to run your company on your own the coach will be disabled. You can only restart your rehearsal once every 24 hours. Making an analogy of the business simulation to a flight simulator, the uncoached rehearsal will enable you to practice various techniques flying the plane. Keep in mind though that your competitors in the rehearsal are not as tough as those in your competition.

Office 2007 Users, Please Note: To see the Capstone/Foundation/Comp-XM menu selections, click the Add-Ins tab above. If you do not see the Add-Ins tab, please resize the spreadsheet by double clicking the blue bar at the top of the window.

Cell Location GameType TranslatedSize TranslatedCommentTQM!D3 Foundation 175|200

Mktg!C3 CompXM 175|200

On any particular initiative, spending more than $1 million this year pushes into diminishing returns. Furthermore, cumulative diminishing returns are reached at $2.5 million on any given initiative. For example, to reach the ultimate limits on CPI systems as quickly as possible, you would spend $1 million this year, $1M next year, and $0.5M in the third year.

There is also a threshold of $250K before an initiative shows a meaningful return. Put simply, if you budget for an initiative, the investment should be at least $250K, and not more than $1 million.

Customers expect prices to fall within a reasonable range. At the beginning of the simulation, price expectations ranged from a low of $14 in the Thrift Segment to a high of $42 in the Elite segment.

For this year's expected price ranges, visit the segment pages under "Last Year's Reports". For example, at the beginning of the simulation, the expected price range in the Thrift segment ranged from $14 to $26.

LOGIN WEB QUERYUserIDPassword

UserType INVALID

LoginSimIDRoundType 1

0 Andrews0 793430

DraftSaved Nu 1OLD 01/01/2000 at 12:00 AM EST

0 RoundsPlayed 2AUDIT_TRAIL_STAMPSavedBy C46932a C46932aSavedWhat AllSavedDate Oct 10, 2011SavedTime 12:40 PM EDTSimulationVersion 2012CC46932ClassRound 2RoundType PracticeRehearsalRestart 0

00

DraftSaved NullOLD

00

StudentLoginFullName

B7

Practice Round = 1 Competition Round = 2

VERSION WEB QUERYCapstone Web BuildFoundation Web Build

The 2007v21 update can only be used for courses that started before August 1, 2006. Thank you.

OFFICIAL_DEC_AVAILABLE W PROFESSOR SIMULATION LIST QUERY

SimulationVersion 2012CC46932ClassRound 2RoundType PracticeRehearsalRestart 0ReportsAvailable True05/16/2006 02:00PMQuizAvailable True05/16/2006 02:00PMBeforeDeadline True01/01/2009 12:00AMQueryTimeStamp05/16/2006 02:00PMC10450

STUDENT KEY QUERY BALANCED SCORECARD PROFORMA QUERYStudentKey 793430 C46932SimID 793430 Andrews

793430 Round

C38576 FinancialFinancialFinancialInternal Business ProcessInternal Business ProcessInternal Business ProcessInternal Business ProcessInternal Business ProcessCustomerCustomerCustomerCustomerCustomerLearning and GrowthLearning and Growth''''''''''''''''''''''''''''''''''''''''''''''''''''''''''

HarvardCookieEstablished

''''''''''''RecapFinancialFinancialFinancialInternal Business ProcessCustomerCustomerLearning and GrowthLearning and GrowthLearning and Growth

BALANCED SCORECARD PROFORMA QUERY

Criteria sumVal Points Value Shape a b c d

Stock Price 34.5048 8 Ending 3 3 37 0 0Profits -4758764.975 9 Ending 3 1000000 12000000 0 0Leverage 4.3441 8 Ending 1 1.3 1.8 2.8 4Contribution Margin 0.5526 5 Ending 3 0.27 0.36 0 0Plant Utilization 1.6882 5 Ending 1 0.9 1 1.8 2Days of Working Capital 66.3756 5 Ending 1 15 30 90 105Stock-out Costs 0.0182 5 Ending 4 0 0 0 0.05Inventory Carrying Costs 0.1078 5 Ending 4 0 0 0.01 0.05Customer Buying Criteria 71.3891 5 Ending 3 16 44 0 0Customer Awareness 1.0329 5 Ending 3 0.5 0.9 0 0Customer Accessibility 0.7539 5 Ending 3 0.5 0.9 0 0Product Count 10 5 Ending 3 1 8 0 0SG&A Expense 0.2173 5 Ending 1 0.05 0.07 0.18 0.25Employee Turnover Rate 0.1905 7 Ending 4 0 0 0.07 0.115Employee Productivity 2 7 Ending 3 1 1.04 0 0

Criteria sumVal Points Value Shape a b c dMarket Cap 0.166 20 Ending 3 0.01 0.3 0 0Sales 197230270.19 20 Average 3 15000000 181000000 0 0Emergency Loan 0.38 20 Average 4 0 0 0 0.01Operating Profit -4758764.975 60 Cumulative 3 2225000 135000000 0 0Wtg Avg Cust Survey Score 35.9832 20 Average 3 8 31 0 0Market Share 0.2658 40 Average 3 0.08 0.22 0 0Sales/Employee 236497.1759 20 Average 3 118000 271000 0 0Assets/Employee 343972.6399 20 Average 3 84000 253000 0 0Profits/Employee -5075.3737 20 Cumulative 3 0 237000 0 0

DECISIONSINCOMINGDECISIONS Andrews 1 3 2014 C46932ProductName Able Acre Adam Aft Agape NA NARetireProduct 0 0 0 0 0 0 0XcoordinateRD 5.1 2 7.5 8.9 4 0 0YcoordinateRD 14.7 16.8 11.9 15.2 11 0 0MTBFrdSpec 17500 14000 23000 25000 19000 0 0Price 28 21 38 33 33 0 0PromoBudget 1000 900 800 700 700 0 0SalesBudget 1000 900 800 700 700 0 0UnitSalesForecast 0 0 0 0 0 0 0ProductionOrdered 2400 1350 500 420 550 0 0CapacityChange 0 0 0 0 0 0 0AutomationNextRound 4 5 3 3 3 0 0FinanceFunction StIssue StRetire Dividend ShortDebt BondRetir BondIssue ARFinanceDecisions 0 0 0 0 0 0 30LaborNegotiation TechWage AsmbWage Benefits ProfitShr AnnRaise Complment RecrSpendOffer1 22.05 0 2500 0.020 0.050 880 800Offer2 24.26 0 2750 0.022 0.055 0 0TQMfunction CPI VendorJIT QIT Channels CCE BenchMark QFDETQMbudgets 0 0 0 0 0 0 0MKTGPrimarySeg 1 2 3 4 5 0 0MKTGPrintMedia 200 180 160 140 140 0 0MKTGDirectMail 200 180 160 140 140 0 0MKTGWebMedia 200 180 160 140 140 0 0MKTGEmail 200 180 160 140 140 0 0MKTGTradeShows 200 180 160 140 140 0 0MKTGSalesPriorities 0.24 0.22 0.2 0.17 0.17 0 0MKTGOutsideSales 10 2 2 2 2 2 0MKTGInsideSales 27 6 6 5 5 5 0MKTGDistributors 13 2 2 3 3 3 0MKTGReports 0 0 0 0 0 0 0FeesAndNewCapital 0 0

C1

Daniel Smith: DecisionsIncoming. These are the decisions that were last copied into the student entry sheets. They can be populated three ways: (1) When the workbook is first opened. The source is the DecisionsLandingArea. The first section of the DecisionsLandingArea contains the official decisions from the website, or if this file was read from disk, the decisions that were saved to disk. (2) Undo to Start of Round. The decisions are pulled from the DecisionsAtStartOfRound section in the DecisionsLandingArea. (3) Undo to Last Save. The decisions are pulled from the DecisionsLastSaved range. After the decisions arrive in this area, they are copied to the student entry worksheets. All decisions pass through the DecisionsIncoming block on their way to the entry sheets.

DECISIONSOUTGOINGDECISIONS 0 0

NA ProductName Able Acre Adam0 RetireProduct 0 0 00 XcoordinateRD 5.1 2.0 7.50 YcoordinateRD 14.7 16.8 11.90 MTBFrdSpec 17500 14000 230000 Price 28.00 21.00 38.000 PromoBudget 1000 900 8000 SalesBudget 1000 900 8000 UnitSalesForecast 0 0 00 ProductionOrdered 2400 1350 5000 CapacityChange 0 0 00 AutomationNextRound 4.0 5.0 3.0

AP FinanceFunction StIssue StRetire Dividend30 FinanceDecisions 0 0 0.00

TrainHrs LaborNegotiation TechWage AsmbWage Benefits30 Offer1 0.00 0.00 0

0 Offer2 0.00 0.00 0CCE6sigma UNEPGreen GEMISustain TQMfunction CPI VendorJIT QIT

0 0 0 TQMbudgets 0 0 00 MKTGPrimarySeg 1 2 3 0 MKTGPrintMedia 200 180 1600 MKTGDirectMail 200 180 1600 MKTGWebMedia 200 180 1600 MKTGEmail 200 180 1600 MKTGTradeShows 200 180 1600 MKTGSalesPriorities 0.240 0.220 0.2000 MKTGOutsideSales 10 2 20 MKTGInsideSales 27 6 60 MKTGDistributors 13 2 20 MKTGReports 0 0 0

FeesAndNewCapital 0 0

O1

Daniel Smith: DecisionsOutgoing. The outgoing decisions are the decisions that are currently on the student entry displays. Many validation checks are performed here to make sure students cannot enter unacceptable values like spaces. When saved, the rows are converted to strings and place in the DecisionsLastSaved area, then written to disk or the website. When writing to disk we also write the AuditTrail information.

0 C46932Aft Agape NA NA NA0 0 0 0 08.9 4.0 0.0 0.0 0.015.2 11.0 0.0 0.0 0.025000 19000 0 0 033.00 33.00 0.00 0.00 0.00700 700 0 0 0700 700 0 0 00 0 0 0 0420 550 0 0 00 0 0 0 03.0 3.0 0.0 0.0 0.0ShortDebt BondRetir BondIssue AR AP0 0 0 30 30ProfitShr AnnRaise Complment RecrSpend TrainHrs0.000 0.000 #VALUE! 800 300.000 0.000 0 0 0Channels CCE BenchMark QFDE CCE6sigma UNEPGreen GEMISustain0 0 0 0 0 0 04 5 0 0 0 140 140 0 0 0140 140 0 0 0140 140 0 0 0140 140 0 0 0140 140 0 0 00.170 0.170 0.000 0.000 0.0002 2 25 5 53 3 30 0 0

Z1

Daniel Smith: These are the decisions, as text strings, that were last saved. The also arrive here when the workbook is opened. An UndoToLastSave does a text to columns and places them in the Incoming Decisions.

DECISIONS LAST SAVEDDECISIONS Andrews 1 3 2014 C46932ProductName Able Acre Adam Aft Agape NA NA NARetireProduct 0 0 0 0 0 0 0 0XcoordinateRD 5.1 2.0 7.5 8.9 4.0 0.0 0.0 0.0YcoordinateRD 14.7 16.8 11.9 15.2 11.0 0.0 0.0 0.0MTBFrdSpec 17500 14000 23000 25000 19000 0 0 0Price 28.00 21.00 38.00 33.00 33.00 0.00 0.00 0.00PromoBudget 1000 900 800 700 700 0 0 0SalesBudget 1000 900 800 700 700 0 0 0UnitSalesForecast 0 0 0 0 0 0 0 0ProductionOrdered 2400 1350 500 420 550 0 0 0CapacityChange 0 0 0 0 0 0 0 0AutomationNextRound 4.0 5.0 3.0 3.0 3.0 0.0 0.0 0.0FinanceFunction StIssue StRetire Dividend ShortDebt BondRetir BondIssue AR APFinanceDecisions 0 0 0.00 0 0 0 30 30LaborNegotiation TechWage AsmbWage Benefits ProfitShr AnnRaise Complment RecrSpend TrainHrsOffer1 22.05 0.00 2500 0.020 0.050 880.000 800.000 30.000Offer2 24.26 0.00 2750 0.022 0.055 0 0 0TQMfunction CPI VendorJIT QIT Channels CCE BenchMark QFDE CCE6sigma UNEPGreen GEMISustainTQMbudgets 0 0 0 0 0 0 0 0 0 0MKTGPrimarySeg 1 2 3 4 5 0 0 0MKTGPrintMedia 200 180 160 140 140 0 0 0MKTGDirectMail 200 180 160 140 140 0 0 0MKTGWebMedia 200 180 160 140 140 0 0 0MKTGEmail 200 180 160 140 140 0 0 0MKTGTradeShows 200 180 160 140 140 0 0 0MKTGSalesPriorities 0.24 0.22 0.20 0.17 0.17 0.00 0.00 0.00MKTGOutsideSales 10.00 2.00 2.00 2.00 2.00 2.00 0.00 0.00MKTGInsideSales 27.00 6.00 6.00 5.00 5.00 5.00 0.00 0.00MKTGDistributors 13.00 2.00 2.00 3.00 3.00 3.00 0.00 0.00MKTGReports 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00FeesAndNewCapital 0 0SavedBy Ashley EarnshawSavedWhat AllSavedDate Oct 13, 2011SavedTime 11:42 AM EDTALL

C:\Documents and Settings\brian\My Documents\CapstoneDecisionsRound1C27385Andrews.prn

AA1

Daniel Smith: These are the decisions, as text strings, that were last saved. The also arrive here when the workbook is opened. An UndoToLastSave does a text to columns and places them in the Incoming Decisions.

ProductName Able Acre Adam Aft Agape NA NA NA

YcoordinateRD 14.7 16.8 11.9 15.2 11.0 0.0 0.0 0.0MTBFrdSpec 17500 14000 23000 25000 19000 0 0 0Price 28.00 21.00 38.00 33.00 33.00 0.00 0.00 0.00

AutomationNextRound 4.0 5.0 3.0 3.0 3.0 0.0 0.0 0.0FinanceFunction StIssue StRetire Dividend ShortDebt BondRetir BondIssue AR AP

LaborNegotiation TechWage AsmbWage Benefits ProfitShr AnnRaise Complment RecrSpend TrainHrsOffer1 22.05 0.00 2500 0.020 0.050 880.000 800.000 30.000

TQMfunction CPI VendorJIT QIT Channels CCE BenchMark QFDE CCE6sigma UNEPGreen GEMISustain

MKTGSalesPriorities 0.24 0.22 0.20 0.17 0.17 0.00 0.00 0.00MKTGOutsideSales 10.00 2.00 2.00 2.00 2.00 2.00 0.00 0.00MKTGInsideSales 27.00 6.00 6.00 5.00 5.00 5.00 0.00 0.00MKTGDistributors 13.00 2.00 2.00 3.00 3.00 3.00 0.00 0.00MKTGReports 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

RandD

0 Research & Development Round 0 - 0

Name New Pfmn New Size MTBF

Able 5.1 14.7 17,500 17-Mar-13 0.7 $0 ###Acre 2.0 16.8 14,000 18-Apr-13 0.8 $0 ###Adam 7.5 11.9 23,000 26-Feb-13 0.5 $0 ###Aft 8.9 15.2 25,000 14-Mar-13 0.6 $0 ###Agape 4.0 11.0 19,000 24-Feb-13 0.6 $0 ###NA 0.0 0.0 0 - $0 ###NA 0.0 0.0 0 - $0 ###NA 0.0 0.0 0 - $0 ###

Total $0

Revision Date

Age at Revision

R&D Cost ($000)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0 Age Profiles

Able

Acre

Adam

Aft

Agape

NA

NA

NA

Per

ceiv

ed A

ge in

yea

rs

Able

Acre

Adam

Aft

Agape

NA

NA

NA

$0 $5 $10 $15 $20Material Cost New Old

0 2 4 6 8 10 12 14 16 18 200

2

4

6

8

10

12

14

16

18

20

1

1

1

1

1

111

1

1

1

1

1

111Perceptual map (at the end of this year)Performance

Size

C3

Product name. For new products, change "NA" to a name with a max length of six characters. Product names should begin with the same letter as that of your team name.

D3

New performance coordinate on the Perceptual Map. Performance indicates how well your product performs (speed, sensitivity, etc.) The long term trend is towards higher performance. Enter the performance specification you want your product to have when the project finishes. For existing products, the farther the move, the longer the time and the higher the cost. For new products, project length depends upon proximity to your existing products.

E3

New Size coordinate on the Perceptual Map. Size indicates the physical dimensions of the product. The long-term trend is towards smaller products. Enter the size specification you want your product to have when the project finishes. For existing products, the farther the move, the longer the time and the higher the cost. For new products, project length depends upon proximity to your existing products.

F3

New Mean Time Between Failure specification. MTBF predicts reliability. It indicates the average number of hours your product will operate before it fails. Higher reliability implies higher material costs to build your product.

G3

The date the project will complete. Until this date, the product is produced with the original specifications. After this date, the product is produced with the new specifications. Any existing inventory at that time is reworked to the new specifications at no additional cost. Tip: Under the rules a new project cannot begin until the old project finishes. All projects begin on January 1st. Projects that finish in December are better than projects that finish in January because the December revision date will allow you to begin a new project almost immediately, while the January revision date will force you to wait until the next round. Products with incomplete R&D projects appear yellow in the spreadsheet, and they are protected from change.

H3

The new perceived age of the design when the product emerges from R&D. Moving a product on the Perceptual Map affects the age, but changing MTBF specifications does not. When the product moves, customers see the product as younger than the old design, but not entirely new. They cut the old age in half and behave as though the design is younger.

I3

The total cost of the project in thousands of dollars. The most you can spend in any year is $1 million. If the project costs more than $1 million, $1 million will be spent this year and the balance in future years.

K3

Material Cost estimates for your product. Material costs are driven by position on the perceptual map and by the MTBF specification. Because the segments are moving as your products stand still, material costs appear to drop throughout the year. When your product jumps to a new position, its material costs reflect the new position. The old material cost is estimated for mid-year. The future material cost is estimated for the day your product emerges from R&D.

B9

Product name. For new products, change "NA" to a name with a max length of six characters. Product names should begin with the same letter as that of your team name. Tip: Remember to buy production facilities for your new product. It takes one year to build a new production line.

F14

Perceptual Map forecast as of December 31st of this year. The perceptual map plots products and customer segments. Labels indicate products. Circles represent customer segments. Products in the upper left corner are big and slow. In the lower right corner products are small and fast. Similarly, the circle in the upper left represents "Low End" customers. They want big, slow products. The circle in the lower right represents "High End" customers. They want small fast products. The black circle marks the heart of the segment. The dashed circle is the absolute outer limit of what customers will buy. For your product to have any appeal, it must be inside the dashed circle, and it is not considered a good product until it is inside the black circle. The long-term trend is towards smaller, faster products. Customers are marching steadily towards the lower right corner of the map. High End customers will reach it by year 8. Your job is to offer products that meet customer expectations for smaller size and higher performance every year.

H14

Age profiles. The perceived age of your product during the year. If your product moves during this year, its age will be cut in half sometime during the year. If your product does not move this year, its age will increase by one year.

RandD_F

0 Research & Development Round 0 - 0

Name New Pfmn New Size MTBF ###

Able 5.1 14.7 17,500 17-Mar-13 0.7 $0 ###Acre 2.0 16.8 14,000 18-Apr-13 0.8 $0 ###Adam 7.5 11.9 23,000 26-Feb-13 0.5 $0 ###Aft 8.9 15.2 25,000 14-Mar-13 0.6 $0 ###Agape 4.0 11.0 19,000 24-Feb-13 0.6 $0 ###

Total $0 #########

Revision Date

Age at Revision

R&D Cost ($000)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0Age Profiles

Able

Acre

Adam

Aft

AgapePer

ceiv

ed A

ge in

yea

rs

Able

Acre

Adam

Aft

Agape

$0 $5 $10 $15 $20Material Cost New Old

0 2 4 6 8 10 12 14 16 18 200

2

4

6

8

10

12

14

16

18

20

1

1

1

1

1

111

1

1

1

1

1

111Perceptual map (at the end of this year)Performance

Size

C3

Product name. For new products, change "NA" to a name with a max length of six characters. Product names should begin with the same letter as that of your team name.

D3

New performance coordinate on the Perceptual Map. Performance indicates how well your product performs (speed, sensitivity, etc.) The long term trend is towards higher performance. Enter the performance specification you want your product to have when the project finishes. For existing products, the farther the move, the longer the time and the higher the cost. For new products, project length depends upon proximity to your existing products.

E3

New Size coordinate on the Perceptual Map. Size indicates the physical dimensions of the product. The long-term trend is towards smaller products. Enter the size specification you want your product to have when the project finishes. For existing products, the farther the move, the longer the time and the higher the cost. For new products, project length depends upon proximity to your existing products.

F3

New Mean Time Between Failure specification. MTBF predicts reliability. It indicates the average number of hours your product will operate before it fails. Higher reliability implies higher material costs to build your product.

G3

The date the project will complete. Until this date, the product is produced with the original specifications. After this date, the product is produced with the new specifications. Any existing inventory at that time is reworked to the new specifications at no additional cost. Tip: Under the rules a new project cannot begin until the old project finishes. All projects begin on January 1st. Projects that finish in December are better than projects that finish in January because the December revision date will allow you to begin a new project almost immediately, while the January revision date will force you to wait until the next round. Products with incomplete R&D projects appear yellow in the spreadsheet, and they are protected from change.

H3

The new perceived age of the design when the product emerges from R&D. Moving a product on the Perceptual Map affects the age, but changing MTBF specifications does not. When the product moves, customers see the product as younger than the old design, but not entirely new. They cut the old age in half and behave as though the design is younger.

I3

The total cost of the project in thousands of dollars. The most you can spend in any year is $1 million. If the project costs more than $1 million, $1 million will be spent this year and the balance in future years.

K3

Material Cost estimates for your product. Material costs are driven by position on the perceptual map and by the MTBF specification. Because the segments are moving as your products stand still, material costs appear to drop throughout the year. When your product jumps to a new position, its material costs reflect the new position. The old material cost is estimated for mid-year. The future material cost is estimated for the day your product emerges from R&D.

A12

Perceptual Map forecast as of December 31st of this year. The perceptual map plots products and customer segments. Labels indicate products. Circles represent customer segments. Products in the upper left corner are big and slow. In the lower right corner products are small and fast. Similarly, the circle in the upper left represents "Low Tech" customers. They want big, slow products. The circle in the lower right represents "High Tech" customers. They want small fast products. The black circle marks the heart of the segment. The dashed circle is the absolute outer limit of what customers will buy. For your product to have any appeal, it must be inside the dashed circle, and it is not considered a good product until it is inside the black circle. The long-term trend is towards smaller, faster products. Customers are marching steadily towards the lower right corner of the map. High Tech customers will reach it by year 8. Your job is to offer products that meet customer expectations for smaller size and higher performance every year.

H14

Age profiles. The perceived age of your product during the year. If your product moves during this year, its age will be cut in half sometime during the year. If your product does not move this year, its age will increase by one year.

Mktg

0 Marketing Round 0 - 0

Name Price###

Able $28.00 $1,000 $1,000 #VALUE! 0 #VALUE! #VALUE! #VALUE! #VALUE!Acre $21.00 $900 $900 #VALUE! 0 #VALUE! #VALUE! #VALUE! #VALUE!Adam $38.00 $800 $800 #VALUE! 0 #VALUE! #VALUE! #VALUE! #VALUE!Aft $33.00 $700 $700 #VALUE! 0 #VALUE! #VALUE! #VALUE! #VALUE!Agape $33.00 $700 $700 #VALUE! 0 #VALUE! #VALUE! #VALUE! #VALUE!NA $0.0 $0 $0 #VALUE! - #VALUE! #VALUE! #VALUE! #VALUE!NA $0.0 $0 $0 #VALUE! - #VALUE! #VALUE! #VALUE! #VALUE!NA $0.0 $0 $0 #VALUE! - #VALUE! #VALUE! #VALUE! #VALUE!Total $4,100 $4,100 #VALUE! 0 #VALUE! #VALUE! #VALUE! #VALUE!

A/R Lag (days) 30A/P Lag (days) 30

Promo Budget

Sales Budget

Computer Prediction

Your Sales

Forecast

Gross Revenue Forecast

Variable Costs

Contrib. Margin

Forecast

Less Promo & Sales

Note: The Computer Prediction is only useful as a benchmarking tool. The computer assumes that each competitor will offer one unremarkable product in every segment. It does not know what your competitors have actually offered. Therefore, you should always override the computer's forecast with your own.

Able Acre Adam Aft Agape NA NA NA$0)

$500)

$1,000)

$1,500)

$2,000)

$2,500)Revenue Forecast Variable costs Marketing Margin After marketing

Able Acre Adam Aft Agape NA NA NA0

2

4

6

8

10

12Unit sales forecast Size Pfmn High Low Trad

C3

The price of your product this year. Customers expect prices to fall within a reasonable range. At the beginning of the simulation, price expectations ranged from a low of $15 in the Low End Segment to a high of $40 in the High End segment. Customers expect prices to fall each year. For this year's expected price ranges, visit the segment pages under "Last Year's Reports". For example, at the beginning of the simulation, the expected price range in the Low End segment ranged from $15 to $25.

D3

Promotion budget this year (in thousands). Promotion drives customer Awareness. The more customers that are aware of your product, the more likely they will choose your product. You can think of Promotion as driving all interactions with customers before they begin to actively shop. Awareness decays over time. You lose about 1/3rd each year as customers forget the product. If your product had 60% Awareness last year, this year it would fall to 40% if you spent $0 to promote the product. Promotion efforts are subject to diminishing returns. Your first $1M increases awareness about 26%. The second million adds another 18%, and the third million only another 5%. Here are two examples. Suppose you had 60% Awareness last year. One third will be lost, leaving 40% of customers aware of your product. If you spent $1M, you would end the year with 66%. A $2M budget would yield 84% Awareness, and $3M would yield 89%. Suppose you attained 100% Awareness last year. This will decay by 33% to 67%. Replacing the loss would cost about $1.4M.

E3

Sales budget this year (in thousands). Sales budget drives “Accessibility”. Accessibility examines the question, “How easy is it for customers in the segment to interact with your company during and after the sale?” It measures distribution channels, sales force, shelf space, order entry systems, customer support, etc. The easier it is to interact with your company, the more likely it is customers will choose your products. A 60% Accessibility rating means that 60% of customers find it easy to work with you, and 40% do not. Put simply, if you and a competitor offer identical products, you are more likely to win the sale if your sales budget is bigger than your competitor's. Diminishing returns apply and are reached at $3M. Accessibility is a segment issue. If you have two or more products in a segment, they both contribute to the segment's Accessibility. The sales budgets of products in the Rough Cuts are pro-rated. Diminishing returns apply and are reached at $4.5M for the segment, but you must have two products in a segment to exceed $3M. For products which can be sold in multiple segments, the product's demand in each segment uses that segments Accessibility. Accessibility decays over time. You lose about 1/3rd each year. A $1M sales budget (combined across all products in the segment) adds 11%, $2M adds 25%, $3M adds 32%, and $4.5M adds 35%. For example, suppose you had 60% Accessibility in Traditional last year. One third will be lost, leaving 40% of customers happy with their interactions with you. You offer two products to Traditionals. If your combined Sales Budget is $1M (say $500K each), you would end the year with 51%. A combined $2M budget would attain 65%, $3M would attain 72%, and $4.5M would attain 75%.

F3

The computer's prediction for unit sales this year. The prediction is based upon a poor assumption -- every competitor will offer one mediocre product in every segment -- therefore, your team should not depend on this figure. It is provided only to guage the elasticity of the marketplace. For a more complete discussion, please see the animated tutorial on the website, "How to Develop a Sales Forecast". There is also a short discussion in the help files under "Spreadsheets", "Marketing".

G3

Enter the number of units (in thousands) that you believe you will actually sell. If you leave "Your Sales Forecast" at zero, the Proforma financial reports will use the computer's Unit Sales Forecast. Tip: It is important to develop a sales forecast for each product. Estimate your sales based upon current market conditions, then develop a best/worst case spread. For example, if you think demand will be about 1000, then a worst case might be 800 and a best case 1200. Enter 800 here. Produce enough new inventory on the Production spreadsheet to have 1200 on hand for sale. This will force the Proforma Balance Sheet and Income Statements into your worst case scenario – below expected sales with inventory consuming your cash. If you project even a tiny amount of cash in this nightmare world, you will not take an emergency loan from inventory expansion. Save your decisions, then enter your best case into the “Your Sales Forecast” column. Your Proforma financials will now project the best possible world – above expected sales with all of your inventory converted to cash. If your forecast is good, the actual results will fall somewhere between your worst and best cases.

H3

The revenue forecast for each product -- Price times Unit Sales. Assumes inventory will be available to meet demand. If "Your Sales Forecast" is zero, the calculation uses the computer's "Unit Sales Forecast".

I3

The variable cost forecast for each product -- (Material Cost plus Labor Cost plus Inventory Carry Costs) times Unit Sales. If "Your Sales Forecast" is zero, the calculation uses the computer's "Unit Sales Forecast". The calculation uses the Material Cost and Labor Cost it finds on the Production worksheet, and assumes there is no left-over inventory to carry.

J3

Gross Revenue Forecast less Variable Forecast.

K3

Contribution Margin less Promo less Sales budgets.

I16

Accounts Receivable lag period in days. "30 days" means that on average you allow customers 30 days before you expect payment. More generous terms produce higher demand.

I17

Accounts Payable lag period in days. "30 days" means that on average you wait 30 days before you pay your vendors. The longer the delay, the more likely it is that vendors will withhold parts deliveries.

Mktg_F

0 Marketing Round 0 - 0

NAME Price###

Able $28.00 $1,000 $1,000 #VALUE! 0 #VALUE! #VALUE! #VALUE! #VALUE!Acre $21.00 $900 $900 #VALUE! 0 #VALUE! #VALUE! #VALUE! #VALUE!Adam $38.00 $800 $800 #VALUE! 0 #VALUE! #VALUE! #VALUE! #VALUE!Aft $33.00 $700 $700 #VALUE! 0 #VALUE! #VALUE! #VALUE! #VALUE!Agape $33.00 $700 $700 #VALUE! 0 #VALUE! #VALUE! #VALUE! #VALUE!Total $4,100 $4,100 #VALUE! 0 #VALUE! #VALUE! #VALUE! #VALUE!


Promo Budget

Sales Budget

Computer Prediction

Your Sales

Forecast

Gross Revenue Forecast

Variable Costs

Contrib. Margin

Forecast

Less Promo & Sales

Note: The Computer Prediction is only useful as a benchmarking tool. The computer assumes that each competitor will offer one unremarkable product in each segment. It does not know what your competitors have actually offered. Therefore, you should always override the computer's forecast with your own.

Able Acre Adam Aft Agape$0)

$500)

$1,000)

$1,500)

$2,000)

$2,500)Revenue Forecast Variable costs Marketing Margin After marketing

Able Acre Adam Aft Agape0

2

4

6

8

10

12Unit sales forecast Size Pfmn High Low Trad

C3

The price of your product this year. Customers expect prices to fall within a reasonable range. At the beginning of the simulation, price expectations ranged from a low of $15 in the Low End Segment to a high of $45 in the High End segment. For this year's expected price ranges, visit the segment pages under "Last Year's Reports". For example, at the beginning of the simulation, the expected price range in the Low End segment ranged from $15 to $35.

D3

Promotion budget this year (in thousands). Promotion drives customer Awareness. The more customers that are aware of your product, the more likely they will choose your product. You can think of Promotion as driving all interactions with customers before they begin to actively shop. Awareness decays over time. You lose about 1/3rd each year as customers forget the product. If your product had 60% Awareness last year, this year it would fall to 40% if you spent $0 to promote the product. Promotion efforts are subject to diminishing returns. Your first $1M increases awareness about 26%. The second million adds another 18%, and the third million only another 5%. Here are two examples. Suppose you had 60% Awareness last year. One third will be lost, leaving 40% of customers aware of your product. If you spent $1M, you would end the year with 66%. A $2M budget would yield 84% Awareness, and $3M would yield 89%. Suppose you attained 100% Awareness last year. This will decay by 33% to 67%. Replacing the loss would cost about $1.4M.

E3

Sales budget this year (in thousands). Sales budget drives “Salesmanship” (short term) and “Accessibility” (long term). Salesmanship only applies to this year. Put simply, if you and a competitor offer identical products, you are more likely to win the sale if your sales budget is bigger than your competitor's. Diminishing returns apply and are reached at $3M. Accessibility examines the question, “How easy is it for customers in the segment to interact with your company during and after the sale?” It measures distribution channels, sales force, shelf space, order entry systems, customer support, etc. The easier it is to interact with your company, the more likely it is customers will choose your products. A 60% Accessibility rating means that 60% of customers find it easy to work with you, and 40% do not. Accessibility is a segment issue. If you have two or more products in a segment, they both contribute to the segment's Accessibility. If your product leaves a segment, it leaves the old Accessibility behind and inherits the Accessibility in the segment it enters. Accessibility decays over time. You lose about 1/3rd each year. A $1M sales budget (combined across all products in the segment) adds 11%, $2M adds 25%, $3M adds 32%, and $4.5M adds 35%. For example, suppose you had 60% Accessibility in Traditional last year. One third will be lost, leaving 40% of customers happy with their interactions with you. You offer two products to Traditionals. If your combined Sales Budget is $1M (say $500K each), you would end the year with 51%. A combined $2M budget would attain 65%, $3M would attain 72%, and $4.5M would attain 75%.

F3

The computer's prediction for unit sales this year. The prediction is based upon a poor assumption -- every competitor will offer one mediocre product in every segment. Your current product is then compared with this poor set of products. As the simulation evolves, the number of products and caliber of competition will change. For a more complete discussion, please see the animated tutorial on the website, "How to Develop a Sales Forecast". There is also a short discussion in the help files under "Spreadsheets", "Marketing".

G3

Enter the number of units (in thousands) that you believe you will actually sell. If you leave "Your Sales Forecast" at zero, the Proforma financial reports will use the computer's Unit Sales Forecast. Tip: It is important to develop a sales forecast for each product. Estimate your sales based upon current market conditions, then develop a best/worst case spread. For example, if you think demand will be about 1000, then a worst case might be 800 and a best case 1200. Enter 800 here. Produce enough new inventory on the Production spreadsheet to have 1200 on hand for sale. This will force the Proforma Balance Sheet and Income Statements into your worst case scenario – below expected sales with inventory consuming your cash. If you project even a tiny amount of cash in this nightmare world, you will not take an emergency loan from inventory expansion. Save your decisions, then enter your best case into the “Your Sales Forecast” column. Your Proforma financials will now project the best possible world – above expected sales with all of your inventory converted to cash. If your forecast is good, the actual results will fall somewhere between your worst and best cases.

H3

The revenue forecast for each product -- Price times Unit Sales. Assumes inventory will be available to meet demand. If "Your Sales Forecast" is zero, the calculation uses the computer's "Unit Sales Forecast".

I3

The variable cost forecast for each product -- (Material Cost plus Labor Cost plus Inventory Carry Costs) times Unit Sales. If "Your Sales Forecast" is zero, the calculation uses the computer's "Unit Sales Forecast". The calculation uses the Material Cost and Labor Cost it finds on the Production worksheet, and assumes there is no left-over inventory to carry.

J3

Contribution Margin equals Gross Revenue Forecast less Variable Forecast.

K3

Contribution Margin less Promo less Sales budgets.

I16


I17


0 Marketing Budget DetailPromo Budget Able Acre Adam Aft AgapeTarget SegmentPrint Media $200 $180 $160 $140 $140 Direct Mail $200 $180 $160 $140 $140 Web Media $200 $180 $160 $140 $140 Email $200 $180 $160 $140 $140 Trade Shows $200 $180 $160 $140 $140 Budget ($000) $1,000 $900 $800 $700 $700

Sales Budget Trad Low High Pfmn SizeOutside Sales 2 2 2 2 2Inside Sales 6 6 5 5 5Distributors 2 2 3 3 3

Budget ($000) $0 $0 $0 $0 $0

Able Acre Adam Aft Agape NA NA NA0%

10%20%30%40%50%60%70%80%90%

100%Awareness Forecast Trad Low High Pfmn Size

Trad

Low

High

Pfmn

Size

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Accessibility New Old

B3

Promotion Budgets are available in five media categories. Capstone makes implied assumptions about "reach" and "frequency". Reach is the percentage of customers who would see the ad if you saturated the media category. Reach is driven by the media type. Frequency is the number of times each customer sees the ad. Frequency is driven by the budget. Reach varies by segment and is categorized as "Good, Fair, and Poor". For example, "Good" means that most customers in this segment are exposed to this type of media. Even a "good" media type, however, does not reach all customers. To reach them all, you need to present a mix of media types. Frequency increases the chances that a customer will see and remember an ad. The more times the ad runs, the more likely it is a customer will see it. Diminishing returns apply and set pragmatic limits on frequency. Capstone assumes your staff will optimize reach and frequency for whatever budget you choose. For example, if your print media budget is $500 thousand, your staff would select a mix of magazines and trade journals, then repeat the ads at an optimal frequency for the budget.

B4

Indicate the primary segment where promotion activities will be aimed.

B5

Enter your budget in thousands for print media advertising -- magazines, trade journals, etc. Potential reach varies by segment. Traditional - Good Low End - Good High End - Poor Performance - Poor Size - Fair Diminishing returns apply. As the number of ads increases, each ad produces smaller gains in message retention and leads. Beyond $700 thousand, the cost to gain additional awareness becomes prohibitive.

B6

Enter your budget in thousands for direct mail campaigns. Campaigns send 1 piece of literature about your product to a purchased mailing list. Lists are selected on the basis of SIC code, job title, and similar factors which, hopefully, select for your customers. Potential reach varies by segment. Traditional - Good Low End - Good High End - Fair Performance - Poor Size - Poor Diminishing returns apply. As the number of mailings increases, each mailing produces smaller gains in message retention and leads. Beyond $800 thousand, the cost to gain additional awareness becomes prohibitive.

B7

Enter your budget in thousands for web media. Campaigns buy banner ads on industry related websites and on search engines. Potential reach varies by segment. Traditional - Poor Low End - Poor High End - Fair Performance - Good Size - Good Diminishing returns apply. As the number of ads increases, each ad produces smaller gains in message retention and leads. Beyond $500 thousand, the cost to gain additional awareness becomes prohibitive.

B8

Enter your budget in thousands for Email. Email promotion is similar to Direct Mail. You purchase a list from a marketing company, and they send an email on your behalf to a targeted list (job title, SIC code, etc.) Readers are invited to respond directly or to click a hyperlink to your website. Potential reach varies by segment. Traditional - Poor Low End - Poor High End - Fair Performance - Good Size - Good Response rates vary with the caliber of the list and the frequency. Diminishing returns apply. As the number of campaigns increases, each campaign produces smaller gains in message retention and leads. Beyond $600 thousand, the cost to gain additional awareness becomes prohibitive.

B9

Enter your budget in thousands for trade shows. Potential reach varies by segment. Traditional - Fair Low End - Fair High End - Good Performance - Fair Size - Poor Diminishing returns apply. As the number of shows increases, each show produces smaller gains in message retention and leads. Beyond $300 thousand, the cost to gain additional awareness becomes prohibitive.

C12

Allocate resources to the Traditional segment to build accessibility. For example, you might allocate 6 outside sales, 9 inside sales, and 12 distributors. The higher your accessiblity, the easier it is for customers to evaluate your products and take delivery. The effectiveness of each channel varies as follows for the Traditional segment: Outside sales: Low Inside sales: Medium Distributors: High

D12

Allocate resources to the Low segment to build accessibility. For example, you might allocate 6 outside sales, 9 inside sales, and 12 distributors. The higher your accessiblity, the easier it is for customers to evaluate your products and take delivery. The effectiveness of each channel varies as follows for the Low segment: Outside sales: Medium Inside sales: Low Distributors: High

E12

Allocate resources to the High End segment to build accessibility. For example, you might allocate 6 outside sales, 9 inside sales, and 12 distributors. The higher your accessiblity, the easier it is for customers to evaluate your products and take delivery. The effectiveness of each channel varies as follows for the High End segment: Outside sales: High Inside sales: Medium Distributors: Low

F12

Allocate resources to the Performance segment to build accessibility. For example, you might allocate 6 outside sales, 9 inside sales, and 12 distributors. The higher your accessiblity, the easier it is for customers to evaluate your products and take delivery. The effectiveness of each channel varies as follows for the Performance segment: Outside sales: Medium Inside sales: High Distributors: Low

G12

Allocate resources to the Size segment to build accessibility. For example, you might allocate 6 outside sales, 9 inside sales, and 12 distributors. The higher your accessiblity, the easier it is for customers to evaluate your products and take delivery. The effectiveness of each channel varies as follows for the Size segment: Outside sales: High Inside sales: Medium Distributors: Low

B13

Enter the number of outside sales people and manufacturers reps in your outside sales force for each market segment. Outside sales meets the customer in face-to-face sales calls. Each sales person costs you $125,000, which includes salary, commission, travel, and support. The more sales calls, the higher your demand. Diminishing returns apply to the overall effort. That is, the second meeting with a prospect has less impact than the first, and each additional meeting offers less and less benefit. If your prospect does not buy before the third sales call, the chances of making a sale on the fourth call are slim. Beyond 12 sales people in each segment you see little additional benefit. Furthermore, the overall effectiveness of your inside sales people varies by segment.

B14

Enter the number of inside sales people on staff for each market segment. Inside Sales works the existing customer list and the leads produced by the promotional campaigns. Inside sales also operates your website and customer support systems. Each inside sales person costs $50,000. Diminishing returns apply. Repeated contacts to customers offer less and less benefit. Beyond 30 inside sales people per segment you get little benefit. Furthermore, the overall effectiveness of your inside sales people varies by segment.

B15

Enter the number of distributors carrying your product for each market segment. Distributors offer customers an opportunity to see your product, compare it with other products, and take delivery. Each distributor relationship costs you $100,000 per year. Diminishing returns apply. As the number of distributors increases, each new distributor offers offer less and less benefit. Beyond 15 distributors per segment you get little benefit. Further, the overall effectiveness of your distributors varies by segment.

Marketing Budget Detail Round 0 - 0

NA NA NA Budget ###

$0 $0 $0 $820 $0 $0 $0 $820 $0 $0 $0 $820 $0 $0 $0 $820 $0 $0 $0 $820 $0 $0 $0 $4,100

Budget Time Allocations$0 Able 24% $0 $0 Acre 22% $0 $0 Adam 20% $0

Aft 17% $0 $0 Agape 17% $0

NA 0% $0 NA 0% $0 NA 0% $0

Total 100% $0

Trad

Low

High

Pfmn

Size

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Accessibility New Old

I12

Time Allocations say to your sales force, “Give each product this much of your time.” This has no affect on accessibility, but it can have a short term affect on a product’s demand. For example, if you want to push your Traditional product because it has too much inventory, you can increase the time the sales force gives to it. For accounting purposes, time allocations present a convenient method to split the sales budget across products. On the income statement, each product’s sales budget is Total Sales Budget times its Time Allocation.

I20

Note: this cell is calculated automatically to force the total to 100%. If you have no 8th product, the value in this cell should be zero.

Production

0 Production Round 0 - 0 Schedule Able Acre Adam Aft Agape NA NA NA TOTAL ###Unit Sales Forecast #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Inventory On Hand 2,108 645 262 11 265 - - - 3,291 Production Schedule 2,400 1,350 500 420 550 0 0 0 5,220 Production After Adj. #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Margins2nd Shift Production% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Labor Cost/Unit #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! ###Material Cost/Unit #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! ###Total Unit Cost #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! ###Contribution Margin #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 0.0% 0.0% 0.0% ###Physical Plant TOTAL ###1st Shift Capacity 2,500 2,000 1,100 800 800 - - - 7,200 ###Buy/Sell Capacity 0 0 0 0 0 0 0 0 - ###Automation Rating 4.0 5.0 3.0 3.0 3.0 - - - ###New Autom. Rating 4.0 5.0 3.0 3.0 3.0 0.0 0.0 0.0 Investment ($000) $0 $0 $0 $0 $0 $0 $0 $0 $0 ###Workforce Last Year Needed This Year 1st Shift 2nd Shift Overtime Max Invest. #VALUE!Complement 0 #VALUE! 98% #VALUE! #VALUE! #VALUE! A/P Lag 30 (days)

Able Acre Adam Aft Agape NA NA NA0

1,000

2,000

3,000

4,000

5,000

Production Vs. Capacity Both Shifts Base Capacity Production

Able Acre Adam Aft Agape NA NA NA$0

$1

$1Price vs. Unit Cost Margin Labor Material

B3

Scheduling is in thousands of units.

B4

The unit sales forecast brought forward from the Marketing spreadsheet.

B5

The number of units sitting in your warehouse at the beginning of the year. "Inventory On Hand" plus "Production After Adj." equals the number of units you could sell this year.

B6

The number of units you wish to build this year, in thousands. You cannot schedule more than twice your first shift capacity.

B7

Production after adjustments. Four constraints are taken into consideration: (1) Capacity. You cannot build more than twice your 1st Shift Capacity, because there are only two shifts. (2) Complement. If you do not have enough workers, then you may not be able to produce the production schedule even if your employees work 100% overtime. (3) Accounts Payable Lag policy from the Marketing Spreadsheet. As you extend your Payables policy, vendors increasingly withhold parts deliveries, making it impossible for you to meet your production schedule. (4) Time in market. New products introduced this year are further constrained by the time they will be in the market. For example, if a new product is introduced in October, you could only produce for three months.

B9

The percentage of units that are produced on second shift. Second shift work pays a 50% wage premium over first shift. If your professor has switched on the HR module, the system will automatically determine the mix of second shift workers and first shift workers doing overtime. Complement refers to your workforce size. At full complement, you work no overtime. Full complement means that you have enough workers to complete the production schedule. However, some of these workers might be on a second shift. If you are under complement, then some of your 1st shift workers must work overtime to meet the Production Schedule. For new products introduced this year, second shift considers the time that your product will be in the market. For example, if your product emerges in December, you have only one month or 1/12th your annual capacity available for production. Since you probably will schedule as many units as you can in the time available, chances are your second shift production will be 100%. NOTE: If you are so short handed that you cannot fill the complement for your first shift, it may not be possible to complete your production schedule even at 100% overtime. This is particularly true if some lines are scheduled for 100% overtime, while others are running partial or no overtime. Under the rules, all lines on your first shift are staffed, then second shift workers are added, and as a last resort, first shift workers are assigned overtime to supplement the second shift to its full complement.

B10

The estimated labor cost to produce each unit, including 2nd shift/Overtime production costs.

B11

The estimated material cost to produce each unit. The spreadsheet offers its best estimate for an average material cost this year. When the simulation runs on the Web site, your actual material costs vary by month as segments drift across the Perceptual Map and products emerge from R&D with new positions and MTBF (reliability) specifications. In general, material cost is driven by the position of the product on the Perceptual Map and its MTBF specification. The smaller the size, the higher the performance, and the higher the reliability, the more expensive the materials.

B12

Labor plus material cost.

B13

Contribution margin is defined as: (Price - Variable Costs) / Price or more completely: (Price - Unit Cost - InventoryCarryCost) / Price In short, it is the percentage of the price that is left over after covering variable costs. From this you pay for the remaining fixed expenses and eventually produce a profit. However, in the calculation for the Production spreadsheet, Inventory Carrying Costs have been set to zero because they are ambiguous at this point. The contribution margin shown here is simply (Price - Unit Cost)/Price. Tip: try to keep your contribution margin above 30%. From your contribution margin you must cover marketing expenses, R&D costs, interest payments, HR overheads, etc.

B15

The first shift capacity that is available for production this year in thousands of units. For example, if your capacity is 1200, you can produce 1.2 million units on first shift this year at the rate of 100 thousand units per month. You can produce up to twice this rated capacity by utilizing a second shift or, if necessary, asking the first shift to work overtime.

B16

The amount of capacity you wish to buy or sell this year in thousands of units. Decisions to buy capacity are entered as positive numbers. For example, 100 would order 100,000 units of capacity for delivery on December 31st of this year. The new capacity will not be available until next year. Decisions to sell capacity are entered as negative numbers. Capacity is sold on January 1st of this year. Tip: if you want to retire a product but still have inventory on hand that you think you can sell, keep 1 unit of capacity and sell the rest. If you sell all of the capacity the inventory will be liquidated at 50% of its value.

B17

The automation rating of the production line this year. Automation is on a scale of 1.0 to 10.0. At 1.0, you rely heavily on skilled workers to build your product. At 10.0, robots do most of the production. For example, at an automation level of only 1.0, a typical labor cost per unit would be $12.00. (The actual cost depends upon the current labor contract, which in turn depends upon the year in the simulation, but $12.00 is typical.) As automation increases, this would fall by about $1.20 per point until at an automation of 10.0 labor cost per unit would be about $1.20.

B18

The automation rating of the production line next year. Changes are ordered on January 1st of this year and arrive on December 31st. The new automation rating will be available next year.

B19

The amount of the investment in new plant and equipment. Negative numbers appear when plant is sold, but this is actually cash being paid to you for the sale. Capital expenditures are limited to the amount of money you can raise by issuing stock and bonds, plus last years excess working capital, minus any dividend you pay this year. If your total spending on capacity and automation is more than you can raise you will notice that any of the plant and equipment decisions you have made contributing to this problem will be struck through in red. If you enter those decisions anyway, the simulation will scale them back for you (probably not in the way you want them).

C20

The total number of workers you employed last year.

D20

The number of workers you need this year if you are to avoid overtime.

E20

Your staffing complement percentage (the percentage of the "Needed" complement you choose to employ this year). Entering 100% means that your complement will equal the Needed complement and no one will have overtime. Entering 90% means your complement will be 9/10 of your Needed complement and some workers will have overtime. Green - Your instructor has enabled the decision, and you control complement. Yellow - Complement is automatic and will always be 100%. Recruiting and separation costs are found on the HR display.

F20

The 1st shift complement. As you increase the workforce, the simulation completely fills the needed first shift complement before adding 2nd shift workers.

G20

The 2nd shift complement. 2nd shift workers are not added until 1st shift reaches its needed complement. 2nd shift workers are paid 50% more than 1st shift workers.

H20

The percentage of first shift workers on overtime. 100% means that every first shift worker is working a double shift. 10% means that, on average, each 1st shift worker performs 10% overtime. Overtime increases turnover and drags down productivity.

J20

Capital expenditures are limited to the amount of money that can be raised through Stock and Bond issues plus excess working capital, i.e., the sum of your max stock issue, max bond issue, and working capital minus 90 days of sales, less any dividend that is paid.

K20

If this cell turns red your production capacity and automation decisions will be scaled back due to lack of financing.

B21

The number of workers in your workforce. There are two shifts. As you add workers, the 1st shift is completely filled, then the second shift. Suppose that you do not have enough workers -- that is, your complement "This Year" is less than your "Needed" complement. 1st shift must then work overtime to complete the work schedule. Overtime drags down productivity and increases turnover. On the other hand, if you anticipate that complement will fall next year, you may prefer to work overtime this year rather than hire workers only to separate them next year. 2nd shift/Overtime workers cost you 50% more per hour than workers on 1st shift. The simulation schedules 2nd shift/Overtime workers as a last resort.

I21


Production_F

0 Production Round 0 - 0Schedule Able Acre Adam Aft Agape TOTAL STAFFING Last Year This YearUnit Sales Forecast #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Needed Complement 0 #VALUE!Inventory On Hand 2,108 645 262 11 265 3,291 Complement 0 98%Production Schedule 2,400 1,350 500 420 550 5,220 1st Shift Complement 0 #VALUE!Production After Adj. #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 2nd Shift Complement 0 #VALUE!Margins Overtime% 0.0% #VALUE!2nd shift/Overtime% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Turnover Rate 0.0% #VALUE!Labor Cost/Unit #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! New Employees 0 #VALUE!Material Cost/Unit #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Separated Employees 0 #VALUE!Total Unit Cost #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Recruiting Spend $0 $800 Contribution Margin #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Training Hours 0 30Physical Plant TOTAL Productivity Index 0.0% #VALUE!1st Shift Capacity 2,500 2,000 1,100 800 800 7,200 Buy/Sell Capacity 0 0 0 0 0 - Recruiting Cost #VALUE!Automation Rating 4.0 5.0 3.0 3.0 3.0 Separation Cost #VALUE!New Autom. Rating 4.0 5.0 3.0 3.0 3.0 Training Cost #VALUE!Investment ($000) $0 $0 $0 $0 $0 $0 Total HR Admin Costs #VALUE!A/P Lag (days) 30 Max Invest. #VALUE!

Able Acre Adam Aft Agape0

5001,0001,5002,0002,5003,0003,5004,0004,5005,0005,500Production Vs. Capacity Both Shifts Base Capacity Production

Able Acre Adam Aft Agape$0

$2

$4

$6

$8

$10

$12Price vs. Unit Cost Margin Labor Material

B3

Scheduling is in thousands of units.

B4

The unit sales forecast brought forward from the Marketing spreadsheet.

K4


B5

The number of units sitting in your warehouse at the beginning of the year. "Inventory On Hand" plus "Production After Adj." equals the number of units you could sell this year.

K5

Your staffing complement percentage (the percentage of the "Needed" complement you choose to employ this year). Entering 100% means that your complement will equal the Needed complement and no one will have overtime. Entering 90% means your complement will be 9/10 of your Needed complement and some workers will have overtime. Green - Your instructor has enabled the decision, and you control complement. Yellow - Complement is automatic and will always be 100%.

B6

The number of units you wish to build this year. You cannot schedule more than twice your first shift capacity.

K6


B7

Production after adjustments. Four constraints are taken into consideration: (1) Capacity. You cannot build more than twice your 1st Shift Capacity, because there are only two shifts. (2) Complement. If you do not have enough workers, then you may not be able to produce the production schedule even if your employees work 100% overtime. (3) Accounts Payable Lag policy from the Marketing Spreadsheet. As you extend your Payables policy, vendors increasingly withhold parts deliveries, making it impossible for you to meet your production schedule. (4) Time in market. New products introduced this year are further constrained by the time they will be in the market. For example, if a new product is introduced in October, you could only produce for three months.

K7

The number of workers on second shift. Workers are assigned to second shift only after the production schedule cannot be met on first shift. Second shift workers are paid 50% more per hour than first shift workers. Second shift scheduling has no impact upon the productivity index or turnover.

K8


B9

The percentage of complement on 2nd shift, or if necessary, of 1st shift complement on overtime, given capacity and complement constraints. Complement refers to your workforce size. At full complement, you work no overtime. Full complement means that you have enough workers to complete the production schedule. However, some of these workers might be on a second shift. If you are under complement, then some of your 1st shift workers must work overtime to meet the Production Schedule. You pay your workers a 50% wage premium for working overtime or for working on a second shift. For new products introduced this year, overtime considers the time that your product will be in the market. For example, if your product emerges in December, you have only one month or 1/12th your annual capacity available for production. "2nd shift/Overtime%" considers the time available for production. NOTE: If you are so short handed that you cannot fill the complement for your first shift, it may not be possible to complete your production schedule even at 100% overtime. This is particularly true if some lines are scheduled for 100% overtime, while others are running partial or no overtime. Under the rules, all lines on your first shift are staffed, then second shift workers are added, and as a last resort, first shift workers are assigned overtime to supplement the second shift to its full complement.

K9

The percentage of workers that left the company last year, excluding downsizing. About 5% is rooted in unavoidable factors like retirement, relocation, and weeding out poor workers. Remaining turnover is a function of employee dissatisfaction. Your best workers leave first. Turnover is driven down by Recruiting Spend and Training Days. Turnover goes up as a result of overtime and a substandard compensation package from the Labor Negotiation. Note: The turnover rate ignores downsizing factors. It reflects the turnover in the population of workers that you keep after downsizing.

B10

The estimated labor cost to produce each unit, including 2nd shift/Overtime production costs.

K10

Employees recruited this year. At a minimum, New Employees reflects replacements for workers lost during the course of the year to turnover. It also includes workers hired in January to increase the complement from last year. New employees incur a recruiting cost. Note: As a simplifying assumption, the simulation does not re-hire separated workers.

B11

The estimated material cost to produce each unit. The spreadsheet offers its best estimate for an average material cost this year. When the simulation runs on the Web site, your actual material costs vary by month as segments drift across the Perceptual Map and products emerge from R&D with new positions and MTBF (reliability) specifications. In general, material cost is driven by the position of the product on the Perceptual Map and its MTBF specification. The smaller the size, the higher the performance, and the higher the reliability, the more expensive the materials.

K11

Employees lost because of downsizing or increases in automation. Specifically, separated employees are Last Year's Complement minus This Year's Complement. All separations occur in January and incur a Separation Cost.

B12

Labor plus material cost.

K12

The "extra" amount you budget per worker to recruit high caliber workers. If this cell is green, your instructor has enabled the decision and you decide what to spend to recruit workers. If the cell is yellow, the decision is not available. The higher the budget, the better the worker, resulting in a higher productivity index and lower turnover. Your entry is added to the base amount of $1000 per new employee. "$0" means no extraordinary effort is spent recruiting new people. Diminishing returns apply after $5000 per worker. Tip: It may take several years to see a significant impact, but the effect is cumulative. Minimum turnover is 5%. If you replace 5% of the workforce each round with high caliber people, in 8 years you would replace a significant percentage of your workforce.

B13

Contribution margin is defined as: (Price - Variable Costs) / Price or more completely: (Price - Unit Cost - InventoryCarryCost) / Price In short, it is the percentage of the price that is left over after covering variable costs. From this you pay for the remaining fixed expenses and eventually produce a profit. However, in the calculation for the Production spreadsheet, Inventory Carrying Costs have been set to zero because they are ambiguous at this point. The contribution margin shown here is simply (Price - Unit Cost)/Price. Tip: try to keep your contribution margin above 30%. From your contribution margin you must cover marketing expenses, R&D costs, interest payments, HR overheads, etc.

K13

The number of hours each year that workers are taken off-line for training and development. If this cell is green, your instructor has enabled the decision and you set training policy. If the cell is yellow, the decision is not available. Workers can spend up to 80 hours (two weeks) in training each year. When a worker is in training, another worker fills that position. Therefore, your complement requirements increase. For example, if you send workers to 80 hours of training, you would need to increase workforce complement by an additional 2/52 or 3.8% to cover workers in training class. Training produces a higher productivity index and lower turnover rate. Each training hour costs $20 per worker in additional training costs.

K14

The Productivity Index indicates how the general workforce compares with new recruits. 100% means that new workers are just as good as experienced workers. 110% means that, on average, you only need 1/1.1 = 91% of the workforce complement to do the same work as a workforce comprised of new recruits. In short, higher productivity means fewer workers are required to do the work, and that drives down your labor cost per unit. Recruiting Spend and Training Days drive up the Productivity Index. Overtime and Turnover drag down the Productivity Index. "This Year" actually means "by the end of this year". "Last year's" productivity is the driver behind your complement requirements this year, because it indicates your productivity level on January 1st.

B15

The first shift capacity that is available for production this year in thousands of units. For example, if your capacity is 1200, you can produce 1.2 million units on first shift this year at the rate of 100 thousand units per month. You can produce up to twice this rated capacity by utilizing a second shift or, if necessary, asking the first shift to work overtime.

B16

The amount of capacity you wish to buy or sell this year in thousands of units. Decisions to buy capacity are entered as positive numbers. For example, 100 would order 100,000 units of capacity for delivery on December 31st of this year. The new capacity will not be available until next year. Decisions to sell capacity are entered as negative numbers. Capacity is sold on January 1st of this year. Tip: if you want to retire a product but still have inventory on hand that you think you can sell, keep 1 unit of capacity and sell the rest. If you sell all of the capacity the inventory will be liquidated at 50% of its value.

K16

The amount spent to recruit new workers. Equals the number of workers recruited times ($1000 + Recruiting Spend).

B17

The automation rating of the production line this year. Automation is on a scale of 1.0 to 10.0. At 1.0, you rely heavily on skilled workers to build your product. At 10.0, robots do most of the production. For example, at an automation level of only 1.0, a typical labor cost per unit would be $12.00. (The actual cost depends upon the current labor contract, which in turn depends upon the year in the simulation, but $12.00 is typical.) As automation increases, this would fall by about $1.20 per point until at an automation of 10.0 labor cost per unit would be about $1.20.

K17

The cost to separate (lay off, fire) workers. If you downsize your workforce, each worker is given a separation package worth $5000.

B18

The automation rating of the production line next year. Changes are ordered on January 1st of this year and arrive on December 31st. The new automation rating will be available next year.

K18

Training costs are driven by Training Hours. Each worker-training hour costs $20 and pays for such things as educational materials, instructors, etc. Training costs do not include time off the job.

B19

The amount of the investment in new plant and equipment. Negative numbers appear when plant is sold, but this is actually cash being paid to you for the sale. Capital expenditures are limited to the amount of money you can raise by issuing stock and bonds, plus last years excess working capital, minus any dividend you pay this year. If your total spending on capacity and automation is more than you can raise you will notice that any of the plant and equipment decisions you have made contributing to this problem will be struck through in red. If you enter those decisions anyway, the simulation will scale them back for you (probably not in the way you want them).

K19

Total HR Admin Costs are incorporated into the Income Statements "Admin" line item. Costs are allocated to products based upon their complement. (Note: TQM investments do not affect HR Admin Costs.)

B20


G20

Capital expenditures are limited to the amount of money that can be raised through Stock and Bond issues plus excess working capital, i.e., the sum of your max stock issue, max bond issue, and working capital minus 90 days of sales, less any dividend that is paid.

H20

If this cell turns red your production capacity and automation decisions will be scaled back due to lack of financing.

0 Human ResourcesSTAFFING Last Year This Year

Needed Complement 0 #VALUE!Complement 0 #VALUE!1st Shift Complement 0 #VALUE! Hourly Wage2nd Shift Complement 0 #VALUE! BenefitsOvertime% 0.0% #VALUE! Profit Sharing %Turnover Rate 0.0% #VALUE! Annual RaiseNew Employees 0 #VALUE!Separated Employees 0 #VALUE! Contract Expiration:Recruiting Spend $0 $800 Training Hours 0 30Productivity Index 0.0% #VALUE!

Recruiting Cost #VALUE!Separation Cost #VALUE!Training Cost #VALUE!Total HR Admin Costs #VALUE!

F3

Labor Negotiation Notes Periodically your labor contract with the union expires. Labor negotiates with all of the teams for a new contract. Possible consequences include a strike this year up to 12 weeks in length, and higher or lower labor costs in future years. Management provides its negotiators with a starting position and a negotiation ceiling 10% above the starting position. Labor looks at the starting positions from every company and constructs a set of demands based on either the best starting position offers or their own demands, whichever is greater. Strikes occur when Labor demands exceed your ceiling. All strikes occur in the last weeks of the year. There are several issues to consider. Low-cost producers (highly automated) have an opportunity to impose higher labor costs upon the rest of the industry. Companies wishing to lower labor costs might force a strike with a low offer. Other companies might build extra inventory to ride out the strike or to take advantage of shortages at other companies. A complete labor negotiation tutorial is available on the Web site under Tutorials.

G3

Instructions 1. If a labor negotiation occurs this year, the Negotiation Position cells will appear green, allowing your decisions. If they are yellow, no negotiation is scheduled this round, and you can ignore the Labor Negotiation. 2. Your starting position must offer wages between 80% and 150% of your current contract. For example, if your current wage rate is $20.00, you must give your negotiators a starting position between $16.00 and $30.00. Values outside the range will be rejected when the round is processed. 3. Your starting position can be zero for benefits, profit sharing, and annual wage increase. 4. Your negotiating ceiling is always 10% above your starting position. 5. For every $1 difference between your wage ceiling and Labor's demand, workers strike one week. Similarly, you take a one week strike for every $300 difference in benefits, and each percentage point in profit sharing and annual wage increase. The maximum length of a strike is 12 weeks when both sides accept binding arbitration. 6. You continue to sell inventory during a strike. Your R&D department continues to work during a strike.

B4


B5

The number of workers in your workforce. This Year's complement is entered on the Production spreadsheet. The phrase "at needed complement" means that every position required to meet the production schedule is filled. "At max complement" means that every position at every workstation is filled. Usually needed complement is less than max, because your production schedule does not max out your physical capacity. There are two shifts. As you add workers, the 1st shift is completely filled, then the second shift. Suppose that you do not have enough workers -- that is, your complement "This Year" is less than your "Needed" complement. 1st shift must then work overtime to complete the work schedule. Excessive overtime drags down productivity and increases turnover. 2nd shift/Overtime workers cost you 50% more per hour than workers on 1st shift. The simulation schedules 2nd shift/Overtime workers as a last resort.

B6


B7

The number of workers on second shift. Workers are assigned to second shift only after the production schedule cannot be met on first shift. Second shift workers are paid 50% more per hour than first shift workers. Second shift scheduling has no impact upon the productivity index or turnover.

B8


B9

The percentage of workers that left the company last year, excluding downsizing. About 5% is rooted in unavoidable factors like retirement, relocation, and weeding out poor workers. Remaining turnover is a function of employee dissatisfaction. Your best workers leave first. Turnover is driven down by Recruiting Spend and Training Days. Turnover goes up as a result of overtime and a substandard compensation package from the Labor Negotiation. Note: The turnover rate ignores downsizing factors. It reflects the turnover in the population of workers that you keep after downsizing.

B10

Employees recruited this year. At a minimum, New Employees reflects replacements for workers lost during the course of the year to turnover. It also includes workers hired in January to increase the complement from last year. New employees incur a recruiting cost. Note: As a simplifying assumption, the simulation does not re-hire separated workers.

B11

Employees lost because of downsizing or increases in automation. Specifically, separated employees are Last Year's Complement minus This Year's Complement. All separations occur in January and incur a Separation Cost.

B12

The "extra" amount you budget per worker to recruit high caliber workers. If this cell is green, your instructor has enabled the decision and you decide what to spend to recruit workers. If the cell is yellow, the decision is not available. The higher the budget, the better the worker, resulting in a higher productivity index and lower turnover. Your entry is added to the base amount of $1000 per new employee. "$0" means no extraordinary effort is spent recruiting new people. Diminishing returns apply after $5000 per worker. Tip: It may take several years to see a significant impact, but the effect is cumulative. Minimum turnover is 5%. If you replace 5% of the workforce each round with high caliber people, in 8 years you would replace a significant percentage of your workforce.

B13

The number of hours each year that workers are taken off-line for training and development. If this cell is green, your instructor has enabled the decision and you set training policy. If the cell is yellow, the decision is not available. Workers can spend up to 80 hours (two weeks) in training each year. When a worker is in training, another worker fills that position. Therefore, your complement requirements increase. For example, if you send workers to 80 hours of training, you would need to increase workforce complement by an additional 2/52 or 3.8% to cover workers in training class. Training produces a higher productivity index and lower turnover rate. Each training hour costs $20 per worker in additional training costs.

B14

The Productivity Index indicates how the general workforce compares with new recruits. 100% means that new workers are just as good as experienced workers. 110% means that, on average, you only need 1/1.1 = 91% of the workforce complement to do the same work as a workforce comprised of new recruits. In short, higher productivity means fewer workers are required to do the work, and that drives down your labor cost per unit. Recruiting Spend and Training Days drive up the Productivity Index. Overtime and Turnover drag down the Productivity Index. "This Year" actually means "by the end of this year". "Last year's" productivity is the driver behind your complement requirements this year, because it indicates your productivity level on January 1st.

B16

The amount spent to recruit new workers. Equals the number of workers recruited times ($1000 + Recruiting Spend).

B17

The cost to separate (lay off, fire) workers. If you downsize your workforce, each worker is given a separation package worth $5000.

B18

Training costs are driven by Training Hours. Each worker-training hour costs $20 and pays for such things as educational materials, instructors, etc. Training costs do not include time off the job.

B19

Total HR Admin Costs are incorporated into the Income Statements "Admin" line item. Costs are allocated to products based upon their complement. (Note: TQM investments do not affect HR Admin Costs.)

Human Resources Round 0 - 0

LABOR NEGOTIATIONCurrent Labor Negotiation Position

Contract Demands Starting Ceiling$0.00 $0.00 $23.15 $25.47

$0 $0 $2,500 $2,750 0.0% 0.0% 2.0% 2.2%0.0% 0.0% 5.0% 5.5%

Contract Expiration: 1-Oct-00

I4

The minimum labor demands, assuming no one bids higher. Labor will demand the greater of: 1. A 10% increase over the best contract in the industry. 2. Parity with the best offer as negotiations open. Labor opens all of the offers before negotiations begin. If a competitor's offer exceeds Labor's original demand, Labor accepts the competitor's offer as a new standard applied to you and the rest of the industry.

TQM

0 TQM Initiative Round 0 - 0

###

Process Management InitiativesCPI Systems $0 Vendor/JIT $0 Total Current Expenditures: $0 ($000)Quality Initiative Training $0 Channel Support Systems $0 Concurrent Engineering $0

UNEP Green Programs $0 Projected Cumulative Impacts

TQM Initiatives Material Cost Reduction 0.0% 0.0%Benchmarking $0 Labor Cost Reduction 0.0% 0.0%Quality Function Deployment Effort $0 Reduction R&D Cycle Time 0.0% 0.0%CCE/6 Sigma Training $0 Reduction in Admin Costs 0.0% 0.0%GEMI TQEM Sustainability Initiatives $0 Demand increase 0.0% 0.0%

Budget ($000)

Worst Case

Best Case

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Reduction in Cost of GoodsFor the year just ended

Labor Material

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

R&D Cycle Time ReductionsFor the year just ended

0% 10% 20%30% 40%

50%

60%70

%80% 90

%10

0%

Demand IncreaseFor the year just ended

0% 20% 40% 60% 80% 100%

Admin Cost reductionsFor the year just ended

D3

On any particular initiative, spending more than $2 million this year pushes into diminishing returns. Furthermore, cumulative diminishing returns are reached at $5 million on any given initiative. For example, to reach the ultimate limits on CPI systems as quickly as possible, you would spend $2 million this year, $2M next year, and $1M in the third year. There is also a threshold of $500K before an initiative shows a meaningful return. Put simply, if you budget for an initiative, the investment should be at least $500K, and not more than $2 million.

B5

Continuous process improvement systems. Drives reductions in material costs.

B6

Vendor relations and Just In Time inventory control systems. Investments produce reductions in material costs and administration costs.

B7

QIT produces reductions in labor costs.

B8

Channel support systems improve distribution channels and lead to increased demand for your product.

B9

Concurrent Engineering expenditures lead to reduced R&D cycle time. That is, it reduces the time that projects take to move products on the Perceptual Map.

B10

The United Nations Environmental Programme provides guidance to businesses, governments, and individuals on a Green Economy. These improvements reduce material costs and raise demand for your products because customers prefer companies that are environmentally friendly.

B13

Benchmarking initiatives reduce administration costs.

B14

QFDE initiatives reduce R&D cycle time, the time required to move a product on the Perceptual Map, and they increase demand for the product.

B15

Concurrent Engineering and 6 Sigma Training reduce labor and material costs.

C16

The Global Environment Management Initiative is a coalition of major corporations that share best practices on environment, health and safety issues. Adopting TQEM strategies reduces material costs and provides some reduction in labor costs.

Finance

0 Finance Round 0 - 0 Plant Improvements Outstanding Bonds

Total Investments ($000) $0 Series Face Amount Current -1Sales of Plant & Equipment $0 Number $0 Yield Close

Common StockShares Outstanding (000) 2,848 Price Per Share 1/1/0 $2.95 Earnings Per Share #VALUE!Max Stock Issue ($000) $1,680 Issue Stock ($000) $0 Max Stock Retire ($000) $420 Retire Stock ($000) $0 Dividend Per Share $0.00

Current DebtInterest Rate 11.2% Long Term Debt Due This Year $53,040 Retire Long Term Debt ($000) $0 Borrow ($000) $0 Issue Long Term Debt ($000) $0

Cash Positions 6424 Long term interest rate 12.6%December 31, -1 $0 Maximum issue this year $78,336 December 31, 0 #VALUE!


Common Stock

Liabilities & Owner's Equity

Accounts Payable

Current Debt

Long Term Debt

Common Stock

Retained Earnings

B4

Total investment in plant and equipment brought forward from the Production spreadsheet.

G4

The number that identifies the bond issue. The first 3 digits are the interest rate. The "S" stands for "series". The last 2 digits are the year in which the bond is due. "12.5S2005" identifies bonds that are due December 31, 2005 and pay an interest rate of 12.5%.

H4

The face amount or principal of the bonds. This amount is repaid when the bond matures. Until that year you pay an annual interest rate or "coupon" equal to the interest rate in the series number times the face amount.

I4

The bond's yield, defined as: Bond Rate * 100 Closing price

J4

Yesterday's closing price on this bond. If you retire (i.e.. repay early) the bond, for every $100 of face value, you pay this amount.

B5

Total sales of plant and equipment brought forward from the Production spreadsheet.

B7

The number of shares of common stock in the hands of shareholders. Reflects any issue/retire stock transactions at the beginning of this year.

B8

The stock price as of yesterday's close. Stock will be issued or retired at this price.

B9

This year's projected earnings per share, defined as proforma profits divided by common shares outstanding.

B10

The dollar value of new shares your Board of Directors has authorized for sale to the public this year. You can issue up to 20% of the outstanding shares each year. For example, suppose you have 2 million shares outstanding, and the stock price is $30.00 on January 1st. You could issue 400 thousand new shares at $30 and raise a maximum of $12 million. If you choose to issue stock, you cannot exceed this limit.

B11

The amount of money you would like to raise this year by selling common stock to the public. You are limited to the amount in "Max Stock Issue". (The spreadsheet will let you enter numbers greater than Max Stock Issue, but amounts above the limit are ignored.)

B12

The limit set by the board of directors upon stock repurchases this year. You can retire up to 5% of the outstanding shares each year, but not more than the total equity of your company. For example, suppose you have 2 million shares outstanding, and the stock price is $30.00 on January 1st. You could retire 100 thousand shares at $30 for at total of $3 million. If you decide to retire stock, you cannot exceed this limit.

B13

The amount you wish to spend to purchase outstanding common stock from shareholders. You are limited to the amount in "Max Stock Retire". (The spreadsheet will let you enter numbers greater than Max Stock Retire, but amounts over the limit are ignored.)

B14

The amount of money you plan to give shareholders this year as an annual dividend. Entering $1.00 means you will give each shareholder $1.00 for each share they hold. For example, suppose there are 2 million shares outstanding. Your total outlay for a $1.00 dividend would be $2 million.

B16

The interest rate you will pay on current debt that you borrow this year.

B17

The amount of money you owe your bank on January 1st of this year.

G17

The amount of long term debt (bonds) you wish to retire (repay) early. Transactions take place on January 1. Bonds are purchased at the closing price. The oldest bond is retired first. Tip: No special action is required to retire a bond due this year. It is reclassified as current debt on December 31st, and becomes due like all current debt the next day, January 1st of next year. If you try to retire the bond, you actually retire it a year early at the current closing price because the transaction takes place on January 1st of this year.

B18

Bankers will loan current debt up to about 75% of accounts receivable (found on last year’s balance sheet) and 50% of this year’s inventory. They estimate this year's inventory by examining last year’s income statement. Bankers assume in the worst case companies will have three to four months of inventory, and they will loan up to 50% of that amount. This works out to be about 15% of the combined value of last year’s total direct labor and total direct material, which display on the income statement. Because they know the industry is growing, as a final step bankers increase the borrowing limit by 20% to provide room for expansion in inventory and accounts receivable.

G18

The amount of long term debt (bonds) you wish to issue this year. (i.e. The amount you wish to borrow.) Transactions take place on January 1. Bonds are issued at the "Long term interest rate". You cannot issue more than the "Maximum issue this year".

G19

The interest rate you will pay on bonds issued this year. Bonds are 10-year coupon notes, meaning that you pay the interest each year for the next 10 years, then repay the principal. Bond rates are driven by the prime rate and by your Leverage (Assets/Equity) ratio. The higher the ratio, the more risk you present, and the higher the interest rate.

B20

Your cash position yesterday.

G20

The upper limit on bonds (long term debt) that you can issue this year. Bondholders examine Fixed Assets and your Leverage (Assets/Equity ratio) to determine a funding limit. In general, bondholders are interested in funding plant and equipment. They fund up to 80% of last year's Fixed Assets. However, as your Leverage increases they become concerned, and typically refuse additional funding as Leverage exceeds 4.0.

B21

Your cash position forecast for the end of this year.

I22


I23


BalanceSheet

0 Proforma Balance Sheet Round 0 - 0

Assets Liabilities & Owner's Equity ###

LiabilitiesCurrent Assets Accts Payable #VALUE! #VALUE!Cash #VALUE! #VALUE! Current Borrowing $0 #VALUE!Accts Receivable #VALUE! #VALUE! Emergency Loan #VALUE! #VALUE!Inventories #VALUE! #VALUE! Maturing L.T. Debt $0 #VALUE!Total Current Assets #VALUE! #VALUE! Long Term Debt $0 #VALUE!

Total Liabilities #VALUE! #VALUE!Fixed AssetsPlant & Equip. $155,600 #VALUE! Owner's EquityAccum. Deprec. ($68,053) #VALUE! Common Stock $46,599 #VALUE!Total Fixed Assets $87,547 #VALUE! Retained Earn. #VALUE! #VALUE!

Total Equity #VALUE! #VALUE!TOTAL ASSETS #VALUE! #VALUE!

Total LIAB. & O.E. #VALUE! #VALUE!

Fixed

Assets

Cash

Accounts Receivable

Inventories

Fixed

Common Stock

Liabilities & Owner's Equity

Accounts Payable

Current Debt

Long Term Debt

Common Stock

Retained Earnings

I5

What the company currently owes suppliers for materials and services.

C6

Your end of year cash position.

I6

Your Finance decision for short term borrowing from the bank.

C7

Reflects the lag between delivery and payment of your products.

I7

If your year-end cash would be negative this reflects the amount that Big Al will lend you to keep your company solvent.

C8

The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors.

I8

Any bonds that are due next year which you have not explicitly retired on the Finance sheet. Long Term Debt is automatically reclassified as Current Debt in the year that it is due. If you explicitly retire these bonds it will be done so on January 1st at market. If you let these bonds mature they will be done so on December 31st at face value.

I9

The company's long-term debt is in the form of bonds, and this represents the total of those bonds.

C12

The current value of your plant.

C13

The total accumulated depreciation from your plant.

I13

The cumulative total of all past stock issues. For example, if you issue $10M, the value of Common Stock would increase by $10M (as would Cash). If you repurchase stock, the simulation retires it permantly, making whatever adjustments are necessary as a gain or loss on the transaction via the Writeoffs line on the Income Statement.

I14

The profits that the company chose to keep instead of paying to shareholders as dividends.

IncomeStatement_F

0 Proforma Income Statement Round 0 - 0

REVENUE Able Acre Adam Aft Agape TOTAL ###Sales #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

VARIABLE COSTSDirect Labor #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Direct Material #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Inventory Carry #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Total Variable Costs #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Contribution margin #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!PERIOD COSTS

Depreciation $3,667 $3,467 $1,320 $960 $960 $10,373 #VALUE!SG&A: R&D $0 $0 $0 $0 $0 $0 #VALUE!

Promotion $1,000 $900 $800 $700 $700 $4,100 #VALUE!Sales $1,000 $900 $800 $700 $700 $4,100 #VALUE!Admin #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Total Period Costs #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Net Margin #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Other (Fees, Write Offs, TQM) $0 #VALUE!EBIT #VALUE! #VALUE!Interest $0 #VALUE!Taxes #VALUE! #VALUE!Profit Sharing #VALUE! #VALUE!Net Profit #VALUE! #VALUE!

Able Acre Adam Aft Agape$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000Labor

Material

Inventory Carrying costs

Depreciation

Research & De-velopment

Marketing

Administrative / Other

Net Margin

N3

This item's percentage of revenue

D4

Unit sales multiplied by list price.

D6

Labor costs incurred to produce the product that was sold. Driven by automation rating.

D7

Material costs incurred to produce the product that was sold. Driven by MTBF value and product’s position in market segment.

D8

The cost to carry unsold goods in inventory. 12% of average unit cost of production.

D10

This product's Sales less the variable expenses directly related to the sale of the product.

D12

Calculated on straight-line 15-year depreciation of plant value.

D13

R&D department expenditures for each product.

D14

The promotion budget for this product.

D15

The Sales Budget for this product.

D16

Miscellaneous administration overheads and Human Resources expenses.

D18

This product's contribution to the company's overall profitability.

H19

The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds, plus consulting fees your instructor might assess you, plus TQM expenditures. Write offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory.

H20

Earnings Before Interest and Taxes.

H21

Interest expense based upon last year's current debt, including short-term debt and long-term notes that have become due.

H22

Income tax. Note: If you take a loss, the simulation takes a simplification and gives you an immediate tax credit. In the real world, losses are carried forward into future years to apply against profits. Because that can be obscure, the simulation gives you the credit immediately.

H23

Profits shared with employees under the labor contract.

H24

EBIT minus interest, taxes, and profit sharing.

IncomeStatement

0 Proforma Income Statement Round 0 - 0 REVENUE Able Acre Adam Aft Agape NA NA NA TOTAL ###

Sales #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!VARIABLE COSTSDirect Labor #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Direct Material #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Inventory Carry #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Total Variable Costs #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Contribution margin #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!PERIOD COSTS

Depreciation $3,667 $3,467 $1,320 $960 $960 $0 $0 $0 $10,373 #VALUE!SG&A: R&D $0 $0 $0 $0 $0 $0 $0 $0 $0 #VALUE!

Promotion $1,000 $900 $800 $700 $700 $0 $0 $0 $4,100 #VALUE!Sales $1,000 $900 $800 $700 $700 $0 $0 $0 $4,100 #VALUE!Admin #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Total Period Costs #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!Net Margin #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Other (Fees, Write Offs, TQM) $0 #VALUE!EBIT #VALUE! #VALUE!Interest $0 #VALUE!Taxes #VALUE! #VALUE!Profit Sharing #VALUE! #VALUE!Net Profit #VALUE! #VALUE!

Able Acre Adam Aft Agape NA NA NA$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000Labor

Material

Inventory Carrying costs

Depreciation

Research & Development

Marketing

Administrative / Other

Net Margin

N3

This item's percentage of revenue

D4

Unit sales multiplied by list price.

D6

Labor costs incurred to produce the product that was sold. Driven by automation rating.

D7

Material costs incurred to produce the product that was sold. Driven by MTBF value and product’s position in market segment.

D8

The cost to carry unsold goods in inventory. 12% of average unit cost of production.

D10

This product's Sales less the variable expenses directly related to the sale of the product.

D12

Calculated on straight-line 15-year depreciation of plant value.

D13

R&D department expenditures for each product.

D14

The promotion budget for this product.

D15

The Sales Budget for this product.

D16

Miscellaneous administration overheads and Human Resources expenses.

D18

This product's contribution to the company's overall profitability.

K19

The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds, plus consulting fees your instructor might assess you, plus TQM expenditures. Write offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory.

K20

Earnings Before Interest and Taxes.

K21

Interest expense based upon last year's current debt, including short-term debt and long-term notes that have become due.

K22

Income tax. Note: If you take a loss, the simulation takes a simplification and gives you an immediate tax credit. In the real world, losses are carried forward into future years to apply against profits. Because that can be obscure, the simulation gives you the credit immediately.

K23

Profits shared with employees under the labor contract.

K24

EBIT minus interest, taxes, and profit sharing.

CashFlow

0 Proforma Cash Flow Statement Round 0 - 0 ###

Cash Flows from operationsNet income (loss) #VALUE!Depreciation and writeoffs $10,373 Change in accounts payable #VALUE!Change in inventory #VALUE!Change in accounts receivable #VALUE!Net cash from operations #VALUE!

Cash Flows from investingPlant improvements $0

Cash Flows from financial actionsDividends paid $0 Sales of common stock $0 Purchase of common stock $0 Increase long term debt $0 Retire long term debt $0 Change current debt (net) #VALUE!Net cash from financial actions #VALUE!

Net change in cash position #VALUE!Starting cash position $0 Closing cash position #VALUE!

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000Cash Flow fromoperations

Net income (loss)

Depreciation

Accounts Payable

Inventories

Accounts Receivable

Net cash flow

$0

$1

$1Cash flow frominvesting

Plant improvements

Net cash flow

$0

$1

$1Cash flow fromfinance

Dividends

Sales of stock

Purchase of stock

New long term debt

Retire long term debt

Change current debt

Net cash flow

$0

$1

$1Cash flow summary

Cash flow from Operations

Cash flow from Investing

Cash flow from Financial actions

Net change in cash position

H3

The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When negative cash flows exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash, and force you to beg for money to keep you afloat.

0 Proforma Balanced Scorecard Round 0 - 0ROUND 0 PROJECTED RESULTS

Criteria Score / Points No Credit Partial Credit Full CreditFinancial

Stock Price 0.0 / 8.0 $3.00 ... $37.00Profits 0.0 / 9.0 $1,000,000 ... $12,000,000Leverage 0.0 / 8.0 1.3 ... 4.0 1.8 ... 2.8

SubTotal Financial 0.0 / 25.0Internal Business Process

Contribution Margin 0.0 / 5.0 27% ... 36%Plant Utilization 0.0 / 5.0 90% ... 200% 100% ... 180%Days of Working Capital 0.0 / 5.0 15 ... 105 30 ... 90Stock-out costs 5.0 / 5.0 5.0% ... 0.0%Inventory Carrying costs 0.0 / 5.0 5.0% ... 1.0%

SubTotal Internal Business Process 5.0 / 25.0Customer

Customer Buying Criteria 0.5 / 5.0 16 ... 44Customer Awareness 3.7 / 5.0 50% ... 90%Customer Accessibility 0.0 / 5.0 50% ... 90%Product Count 0.7 / 5.0 1 ... 8SG&A expense 0.0 / 5.0 5.0% ... 25.0% 7.0% ... 18.0%

SubTotal Customer 4.9 / 25.0Learning and Growth

Employee Turnover Rate 0.0 / 7.0 11.5% ... 7.0%Employee Productivity 0.0 / 7.0 100% ... 104%

SubTotal Learning and Growth 0.0 / 14.0Score for Round3 9.9 / 89.0

RECAPITULATION INTERIM RESULTSRecap criteria evaluate your company's overall performance and are finalized when your simulation is completed. Interim results chart.your progress towards those ending goals. Your score only includes the Recap for the last completed round.Financial

Market Cap 0.0 / 20.0 1% ... 30%Sales 0.4 / 20.0 $15,000,000 ... $181,000,000Emergency Loan 0.0 / 20.0 1% ... 0%

SubTotal Financial 0.4 / 60.0Internal Business Process

Operating Profit 0.0 / 60.0 $2,225,000 ... $135,000,000 SubTotal Internal Business Process 0.0 / 60.0Customer

Wtg Avg Cust Survey Score 0.0 / 20.0 8 ... 31Market Share 0.0 / 40.0 8% ... 22%

SubTotal Customer 0.0 / 60.0Learning and Growth

Sales/Employee 0.0 / 20.0 $118,000 ... $271,000Assets/Employee 20.0 / 20.0 $84,000 ... $253,000Profits/Employee 0.0 / 20.0 $0 ... $237,000

SubTotal Learning and Growth 20.0 / 60.0Recap Score 20.4 / 240.0

< $3.00 > $37.00< $1,000,000 > $12,000,000

< 1.3, > 4.0

< 27% > 36%< 90%, > 200%

< 15, > 105> 5.0% < 0.0%> 5.0% < 1.0%

< 16 > 44< 50% > 90%< 50% > 90%

< 1 > 8< 5.0%, > 25.0%

> 11.5% < 7.0%< 100% > 104%

< 1% > 30%< $15,000,000 > $181,000,000

> 1% < 0%

< $2,225,000 > $135,000,000

< 8 > 31< 8% > 22%

< $118,000 > $271,000< $84,000 > $253,000

< $0 > $237,000

D3

Score estimates are based on your decisions using Your Sales Forecast. Your actual results will depend on your competitor's decisions. The logic behind the Balanced Scorecard is to focus on those things that lead to profitability rather than focusing solely, and often belatedly, on the bottom line. The Balanced Scorecard will help you track how areas are contributing to your profitability. Effective company management will identify and correct any problem areas. Generally, any score that is: Green (>70% of points) - Excellent! Red (<30% of points) - Needs attention! In order to show where there is room for improvement the bar is set high for scoring. (That is, scores always need to be evaluated on the curve.) Historically the median score is about 50% of the possible points.

C5

Stock Price - the market value of a single share of your company.

C6

Profits - the annual net profits of your company in dollars.

C7

Leverage - the ratio of Assets to Equity.

C10

Contribution Margin - proportion of sales revenues which contribute to overhead and profits. (Price - Labor - Material) / Price

C11

Plant Utilization - the percentage of time your plant is being utilized. If underutilized you are paying depreciation and interest on unused assets. If overutilized, you have no room for opportunities.

C12

Days of Working Capital - your current assets minus current liabilities, are they appropriate to your level of sales?

C13

Stock-out costs - lost sales due to stock outs as a percentage of overall sales.

C14

Inventory Carrying costs - the costs of carrying unsold inventory as a percentage of overall sales

C17

Customer Buying Criteria - how closely your products meet customer criteria, sales weighted.

C18

Customer Awareness - the proportion of customers that know of your products, sales weighted. The strength of your promotion efforts.

C19

Customer Accessibility - how easy is it for customers to purchase your products, sales weighted. The strength of your distribution channels.

C20

Product Count - the number of viable products you have, i.e., any product with at least 6% of a segment's sales.

C21

SG&A expense - sales, general, and administrative expenses as a percentage of sales.

C24

Employee Turnover Rate - the percentage of your overworked and underpaid workforce you lose each year.

C25

Employee Productivity - the efficiency of your workforce in production because of recruiting, training, quality, and 6 Sigma initiatives.

C33

Market Cap - your company's stock value (shares times price) as a proportion of the entire industry.

C34

Sales - the annual sales of your company in dollars.

C35

Emergency Loan - emergency loan as a proportion of assets. A visit to Big al is triggered when sales revenues and financing decisions do not cover annual expenses.

C38

Operating Profit - net profit in dollars, excluding extra-ordinary items like gain/loss on plant and equipment retirement, inventory liquidations, and early bond retirement.

C41

Wtg Avg Cust Survey Score - the overall demand for your products, sales weighted. This is the net combination of Buying Criteria, Awareness and Accessibility.

C42

Market Share - the ratio of your annual sales to annual Industry sales.

C45

Sales/Employee - the dollar sales each employee generates.

C46

Assets/Employee - the ratio of total assets in dollars to workforce complement.

C47

Profits/Employee - the ratio of total profits in dollars to workforce complement.

Ratios

Proforma Financial Ratios Round 0 - 0

Return On Sales (ROS) or "Profitability" = Profit / Sales #VALUE! ###Asset Turnover or "Turnover" = Sales / Assets #VALUE!Return On Assets (ROA) = Profitability * Turnover #VALUE!Leverage = Assets / Equity #VALUE!Return on Equity (ROE) = Profit / Equity #VALUE!Free Cash Flow = Cash Flow From Ops - Capital Expenditures #VALUE!Working Capital = Current Assets - Current Liabilities #VALUE!Days of Working Capital = Working Capital / (Sales / 365) #VALUE!Projected Stock Price #VALUE!Market Capitalization ($M) = Stock Price * Shares Outstanding #VALUE!Book Value Per Share = Equity / Shares Outstanding #VALUE!Price Earnings Ratio (P/E) = Stock Price / EPS #VALUE!Market / Book Ratio = Stock Price / Book Value Per Share #VALUE!Dividend Yield = Dividend Per Share / Stock Price #VALUE!Dividend Payout Ratio = Dividend Per Share / EPS #VALUE!

X X =

%

200%

400%

600%

800%

1000%

1200%

ROS

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Asset Turnover

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Leverage

%

200%

400%

600%

800%

1000%

1200%

ROE

C3

Return On Sales (ROS) examines company profit margins. In general, all companies, whether cost leaders or differentiators, strive to keep their margins as high as possible. A cost leader attacks expenses, particularly the cost of goods, in the hope of maintaining margins while dropping price. A differentiator creates demand, then raises price to cover the increased costs while maintaining the margins. Both types feel pressure to sacrifice margins. If they succumb, industry rivalry heats up and margins spiral downward. Sometimes this is brought about by the philosophy of a single competitor. Other times this occurs because competitors are following similar strategies. The more diverse the strategies within the industry, the more likely it is that companies can maintain high margins. ROS is also a good indicator of supply and demand within the industry. The more capacity in an industry, the more pressure there is to utilize the capacity, which in turn leads to downward pressure on margins. Typical Range: In Capstone, ROS in the early rounds typically ranges from 2% to 8%. Margins in later rounds have a potential to increase because teams have cut expenses and right-sized their production capabilities. ROS typically ranges from 5% to 15%.

C4

Asset Turnover examines the question, "How hard is the company working its assets to produce sales?" For example, an Asset Turnover of 1.4 means the company is generating $1.40 of sales for every $1.00 of assets. Naturally, companies want their Asset Turnover to be high because that means they are working their assets hard. Note, however, that Asset Turnover says nothing about profitability or wealth creation. For example, a company could reduce its ROS to zero by cutting price. This would produce higher sales. Asset Turnover would go up, but the company would be running hard and going nowhere. At a basic level, to increase Asset Turnover a company must either: (1) Increase sales without increasing assets. For example, differentiation activities (product design, high awareness, and easy accessibility) would lead to higher sales without affecting the asset base. (2) Hold sales constant while reducing assets. For example, eliminating idle plant or excess working capital reduces assets without affecting sales. Typical Range: In the beginning rounds of the simulation, Asset Turnover usually ranges between 0.8 and 1.2. By the latter rounds it averages around 1.5. An Asset Turnover of 2.0 means you are doing well. However, very high levels, say 2.5 or above, could be harmful. For example, the company might have squeezed its working capital too much, or it might be stocking out because of capacity shortages.

C5

Return On Assets (ROA) examines the question, "How hard is the company working its assets to produce profits?" There is an economic opportunity cost notion associated with ROA. An operating manager might be asked how a dollar spent on assets would do compared with a dollar invested in some other investment like a bank account, or how the ROA compares with the interest a firm is paying on the money borrowed to pay for the assets. Note that ROA = ROS * Asset Turnover = Profits/Sales * Sales/Assets = Profits/Assets. Therefore, to improve ROA, you must improve ROS or Asset Turnover or both. Since ROS examines margins, and Asset Turnover examines efficiency, ROA is looking at both. Typical Range: This ratio is volatile, especially in Capstone's early rounds as teams invest in assets and debate between profits in the short run and in the long run. A typical ROA in the early rounds would fall around 6%. By the latter rounds, ROA averages around 15%. An ROA between 20% and 30% must be considered excellent. However, as with all efficiency ratios, ultra-high results raise a red flag as they indicate either ultra-high profits (that may not be sustainable) or ultra-low assets (that cannot support growth).

C6

Leverage examines the "financial structure" of the company. The company's Assets were paid for by Debt or Equity. Leverage looks at the proportions. The more Debt, the higher the risk of bankruptcy. The more Equity, the higher the risk of take-over, at least for publicly held companies. "Leverage" definitions vary. The three most commonly used are Debt/Assets, Debt/Equity, and Assets/Equity. Assets/Equity, the definition employed in Capstone, offers two virtues. First, it plugs neatly into the "DuPont Chain of Ratios" which is discussed under ROE. Second, it is easily interpreted. A leverage of 1.0 means no debt - every $1 of assets was paid for with $1 of equity. Leverage of 2.0 means $2 of assets for every $1 of equity. 3.0 means $3 of assets for every $1 of equity, and therefore that the remaining $2 came from debt. In itself, leverage is not good or bad. If you were absolutely certain that you could borrow at 10% and make a 20% return, you would borrow all you could. The trouble is in the phrase "absolutely certain". Lenders know that investments can go sour. The higher your leverage, the more likely it is that you will not be able to make the interest payments and repay the principal. On the other hand, if you have no debt, lenders are happy to lend money against your assets, even to outsiders. Another company might borrow money, buy a controlling interest in your stock, elect a new board and fire top management (you). For this reason senior managers at publicly held companies tend towards a financial structure that balances these two risks. Typical Range: In Capstone, leverage typically ranges between 1.5 and 3.0. Below 1.5 you have used retained earnings to fund growth instead of giving it to stockholders as a dividend, and either avoided debt or reduced it along the journey. While this would be good for ROS and ROA because interest payments would be eliminated, it would be bad for ROE, stock price, and market capitalization. Above 3.0 your interest payments chew up much of your earnings, and you present a risk of default to lenders.

C7

Return On Equity (ROE) examines the question, "What rate of return are investors seeing on the money they put into the company?" Equity came to the company from either stock issues (Common Stock) or profits (Retained Earnings). According to Forbe's Magazine, ROE is the single most often quoted statistic when describing a firm's performance. It is also one of the statistics considered to be most useful by stockholders. Note that ROE = ROA * Leverage = Profits/Assets * Assets/Equity = Profits/Equity. Therefore, the only difference between ROA and ROE is Leverage, the use of debt. Line managers are often held accountable for ROA, while top management is held accountable for ROE. This happens because line management has little say in the financial structure of the firm, but they do drive the utilization of assets. However, ROA can be broken down so that ROE = ROS * Turnover * Leverage = Profits/Sales * Sales/Assets * Assets/Equity. This is commonly called "the DuPont Chain of Ratios". In essence, to improve ROE one must improve some combination of margins, efficiency, or the increased the use of debt. Typical Range: In Capstone ROE is volatile. Profits can vary greatly from one year to the next, and firms can easily issue stock, retire stock, or pay dividends. In fact, a lesson you can take from Capstone is that ROE is relatively easy to manipulate compared with other measures. For example, teams might borrow money and pay dividends. While this would not improve the stock price, the ROE could skyrocket. Similarly, an extremely high ROE is often an indication of trouble, not joy. Consider, for example, a firm that loses money for several years. Its Retained Earnings fall, eventually go negative, and Total Equity approaches zero. In this climate the team somehow manages to produce a small profit. ROE could be enormous because the Equity would be near zero. That said, an ROE between 10% and 15% could be considered “fair”, between 15% and 25% “good”, between 25% and 50% “excellent”, and anything above 50% “worthy of close inspection” as it might indicate trouble.

C8

Many investors argue that Free Cash Flow (also called Operating Cash Flow) is the most important statistic a company offers. Simply put, Free Cash Flow is the money left after the dust settles that a company can either put in the bank or give to shareholders. Consider "Cash Flows From Operations" from the Cash Flow Statement. It consists of Profits (the results from the Income Statement), Depreciation, and fluctuations in A/R, A/P, and Inventory. In practice, A/R and A/P do not fluctuate enough to cause cause serious damage to cash flow, although they do consume a little cash over the long haul, growing at about the rate of industry growth. Inventory swings in Capstone can be large, but if you average the swings over several rounds, they too average towards zero. (Therefore, Inventory swings are a Working Capital issue, not a Free Cash Flow issue.) In the end we are left with Profits plus Depreciation plus small fluctuations we can ignore. Now suppose that Profits are consistently near zero, too. Depreciation would continue to offer a Cash Flow From Operations. Indeed, in the early years of the simulation, Depreciation is usually larger than Profits. Why is that? Because Government wants your company to continue to pay taxes, both payroll taxes and corporate taxes. Therefore, it allows you to depreciate hard assets in recognition that equipment wears out. It follows that the next thing Free Cash Flow must do is subtract Capital Expenditures, the investments in plant and equipment. If the result is a positive number, then the company is spinning off cash. If negative, then the company is consuming cash. You want to spin off cash. It can then be used to pay dividends, repurchase stock, pay down debt, or expand working capital. Similarly, if you are consuming cash, then it must come from somewhere -- working capital reserves, new debt, or new stock issues. Typical range: In the early rounds, as companies invest in plant and equipment, Free Cash Flow is usually negative. In the latter rounds, Free Cash Flow typically ranges between $30 and $70 million.

C9

A company’s Working Capital can be thought of as a measure of its ability to meet current obligations should something go wrong. It is the excess of Current Assets less Current Liabilities. In Capstone, it is a good predictor of the risk of an Emergency Loan, more commonly know as bankruptcy. A firm with lots of working capital is unlikely to fail in the near future, but too much working capital can be a bad thing, as it implies lazy assets that drag down performance. After all, lazy assets could be converted into something more productive, like a more efficient plant. In Capstone, Current Assets consist of Cash, Accounts Receivable, and Inventory. You face two risks. You could run out of inventory, which can cost a fortune in missed profits. Therefore, you want to produce inventory to your best case forecast. But what if a competitor surprises you? Sales will fall, and inventory on hand will expand dramatically. You want sufficient Cash on hand to pay for the unsold inventory in your worst case forecast. For example, if Inventory went from $10M last year to $30M this year, you would need $20M in Cash to pay for the expansion. Like all assets, Current Assets must be funded. The immediate candidates are found in Current Liabilities - your vendors (Accounts Payable) and your banker (Current Debt). Under the rules, vendors always get paid, and the banker will not give you money at the last minute. If you run short, there is only one source – our friendly loan shark, Big Al, who runs a bank with a less than genteel reputation. Keep in mind that Working Capital is the spread between Current Assets and Current Liabilities. You could fund your Current Assets entirely with Current Debt, leaving a Working Capital position of zero. However, this incurs interest expense. At the deepest level, Working Capital answers two policy decisions. How big are your reserves? How much of the reserves are funded with Current Liabilities and how much with Equity? You are squeezed between a desire to minimize Working Capital while having sufficient reserves to avoid Big Al. Typical Range: See the discussion of “Days of Working Capital”.

C10

Days of Working Capital suggests an answer to the question, “How long could we operate if we stopped making any sales?” Nobody seriously expects that to happen, but it does measure your reserves in terms of time instead an absolute number. For example, if you say, “Our company has $1 million in Working Capital”, that produces a different spin than, “Our company could operate for 7 days without a sale before we went broke.” The first statement reassures. The second invokes a sense of panic. Again, you must keep in mind that Working Capital is the spread between Current Assets and Current Liabilities. You can fund Current Assets entirely with Current Debt. No spread, no Working Capital. But that does not mean that you have no reserves. Rather, it means that your reserves are funded by the bank with short term loans and lines of credit. In the real world, companies occasionally hit a bad patch on the road. If they do, and the loans come due, there is a chance that a bank will not renew them. A “liquidity crises” ensues, and bankruptcy often follows. For this reason, companies prefer to have some equity backing their working capital. Unlike the real world, Capstone’s bankers will always lend you Current Debt at the beginning of the year. However, most teams prefer to avoid the interest expense and pay off the Current Debt. Working Capital becomes Cash + A/R + Inventory – A/P – zero. Notice that Accounts Receivable and Accounts Payable almost cancel each other out. Therefore, in most cases in Capstone, Working Capital equals Cash + Inventory, and it is funded by equity. Typical Range: If you have no Current Debt, Days of Working Capital is a very useful measure of your ability to survive a year of poor sales. Drive your Proforma Balance Sheet into a worst case scenario – lots of inventory, no cash. If your Days of Working Capital is less than 30 days, your position is risky. If over 90 days, your Working Capital is excessive.

C11

Capstone takes a conservative view towards stock price, in part because it is often used for grading purposes. Stock price is driven by book value, EPS, dividend, and emergency loans. Book value sets a base value for the stock. In some sense it reflects past success. Earnings Per Share in some sense predicts the future. An investor can argue (or at least hope) that it is unlikely EPS will fall and that the present value of the stock should reflect these future earnings. Dividends can be compared with interest payments. For example, if you saw a stream of interest payments of $1.00 coming to you, and interest rates were at 10%, you could deduce that you owned a principal of $10.00. An investor could argue (or hope) that a dividend stream is unlikely to dry up, and treat the dividend in much the same way as a stream of interest payments. Dividends are averaged over the last two rounds. Any dividend above EPS is ignored as unsustainable. Emergency loans – also known as bankruptcy, a liquidity crisis, or a visit from Big Al – are viewed by stockholders as a cause for alarm. Any emergency loan depresses the stock price. All other factors that might affect a stock price in the real world are ignored. For example, Capstone ignores market share, new products, and investments in plant and equipment. Its attitude is simple – “Show me the money, not promises.” Typical Range: Stock price usually falls in the early rounds as teams cut back dividends and as competitive rivalry puts downward pressure on profitability. Stock price recovers in the mid game. By the end of the simulation, average stock price is above $110. Any stock price above $150 is excellent.

C12

Market Capitalization is the value that the stock market places on the firm -- stock price times shares outstanding. One can argue that Market Cap is a better measure than stock price for evaluating the wealth created by Management. For example, suppose two firms, Andrews and Baldwin, have stock prices of $100. If Andrews has a Market Cap of $200 million, and Baldwin $300 million, then Baldwin created more wealth. Baldwin issued stock to fund its growth, and therefore its stock price is diluted by more shareholders. Never-the-less, its ending stock price is the same. We can infer that Baldwin's EPS, dividend, and perhaps its book value are similar to Andrews. If that is true, Baldwin's profits must be much higher. Typical Range: In the early rounds, Market Capitalization ranges from $60M to $100M. In later rounds, it averages around $220M.

C13

At a basic level, company Assets are paid for by either Debt or Equity. In principle, if the company is liquidated at the current value of Total Assets, debt holders would walk away with money equal to Total Liabilities, and stockholders would walk away with money equal to Total Equity. The stockholders would divide their money by the number of shares, and each share would be worth Book Value. Book Value represents the investment per share that stockholders have made in the company, either directly buy purchasing stock, or indirectly by retaining profits instead of paying them out as dividends. It sets a floor for your stock price, provided the company avoids negative profits and emergency loans which could depress the stock price below Book Value. Book Value also determines the amount of debt your company can raise, and your interest rate. For example, if Leverage (Assets/Equity) is 2.5, then there are $2.50 of assets for every $1.00 of Book Value, and therefore $1.50 of Debt. This leads directly to policy decisions surrounding stock issues and dividend payouts. For example, if the company retains a $1.00 of profits, or issues $1.00 of new stock, and it wishes to maintain a Leverage of 2.5, then it can borrow another $1.50, and spend $2.50 on new assets. Typical range: In Capstone, early book values are in the low $20’s. By the latter rounds, book values climb to into the $50 to $70 range.

C14

P/E ratio is the most common measure of how expensive a stock is. The higher the P/E ratio, the more the market is willing to pay for each dollar of annual earnings. In either case, the "P" in the equation is the current stock price. For example, if the stock price is $30, and EPS is $3, then the P/E ratio is 10.0, meaning stockholders are willing to pay ten times this year’s profits per share for the stock. Companies that are not currently profitable (that is, ones with tiny or even negative earnings) don't have a P/E ratio at all. Typical range: This ratio is volatile because both the stock price and company profits can swing widely from year to year. For example, in a bad year a profit near zero produces a ridiculously high P/E ratio. Like any ratio, part of its purpose is to focus attention on the company when the results are extreme.

C15

The Market/Book ratio is a more conservative alternative to the P/E ratio. It compares the stock price to the book value per share. For example, if total equity is $50M, and there are 2 million shares outstanding, book value is $25 per share. If the stock trades at $40, its Market/Book Ratio is 40/25 = 1.6. The ratio would say that stockholders valued the company at 1.6 times the money they have invested. If you hear an investor say something like, “This company is trading at 3 times book”, they are referring to the Market/Book ratio. Typical range: Market/Book is less volatile than P/E. Values in Capstone typically range from 1.0 to 5.0.

C16

Dividend Yield can be compared to an interest rate on a loan. If you lend somebody $100 and they give you $10 as an interest payment each year, you can deduce that your yield is 10%. Similarly, if you have a stock worth $100, and you see a dividend of $10, your yield is $10/$100 = 10%. Of course, Dividend Yields are not Interest Rates. Unlike a loan principal, a stock price changes over time, and the dividend amount is at the whim of Management. That said, it offers a quick method to compare stocks to interest bearing investments. Over the past 50 years the practice of paying dividends has been a topic of debate. If a company pays no dividends, Management is arguing that it can make a better return on the money than the stockholder. If Management is correct, the stock price goes up, and the stockholder remains happy. In the 1990’s, companies that paid dividends were often lambasted as having poor strategic vision. Why could they not keep the money and grow the company? In the bear market of the early 21st century, dividends came back into favor. According to Deutsche Bank data, dividend yields on industrial stocks exceeded the 10-year bond yield in 2002. Typical range: In the early rounds, dividends are often suppressed as companies reinvest profits. Dividend Yield falls towards zero. In latter rounds, typical Dividend Yields vary from 6% to 12%.

C17

The Dividend Payout Ratio is more than an answer to the question, “How much of the profits are given to stockholders?” It reflects deep issues within the company’s financial structure. Financial structure asks, “How much of the Assets are paid for with Equity, and how much with Debt?” A publicly held company that is entirely funded with Equity is a takeover target. Another company could borrow against the target company’s equity and use the money to buy a controlling interest. (See Leverage above.) Therefore, your company should set a policy towards Leverage. If you feel that a Leverage of 2.0 is appropriate, then you are also saying that each $1.00 of Equity will be matched with $1.00 of debt. For example, suppose that you earn a $3.00 EPS and your Leverage policy is 2.0. If you kept it all, you would match the EPS with $3.00 of debt, and reinvest $6.00 in the company’s balance sheet, probably in plant. No problem. But suppose you next discover that you only need to invest $4.00 in plant, and that can be covered by $2.00 of EPS and $2.00 of debt. What do you do with the extra $1.00 of EPS? The answer, of course, is to pay a $1.00 dividend. When looked at this way, the Dividend Payout Ratio says, “After we reinvest in ourselves, this is the portion of profits left to give to stockholders.” Typical Range: In the early rounds, companies often cut back dividends for reinvestment or to adjust their financial structure. By the latter rounds, Dividend Payout Ratios of 50% to 75% are common.

B18

The DuPont Chain of Ratios illustrates how the profit margin on sales (ROS), the asset turnover ratio (Turnover), and the use of debt (Leverage) interact to determine the rate of return on equity (ROE). The firm's management can use the Du Pont Chain to explore ways of improving the firm's performance. ROE = ROS * Turnover * Leverage.

Low End Segment Report CAPSTONE COURIER 0 Round -1, 12/31/-1

Market ShareUnit SalesDecember SurveyDecisionsPrimary SegmentPrint MediaDirect MailWeb MediaEmailTrade ShowsImpressionsPrint MediaDirect MailWeb MediaEmailTrade ShowsAwareness CreatedPrint MediaDirect MailWeb MediaEmailTrade ShowsNew AwarenessEnd AwarenessPromo ExpendituresPrint MediaDirect MailWeb MediaEmailTrade ShowsTotalSales Priorities

Sales BudgetOutside SalesInside SalesDistributorsMktg ReportTotalAccessibility GainsOutside SalesInside SalesDistributorNew AccessibilityEnd Accessibility

0

0

0

0

0

0

0

0

0

0

0

0

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Awareness

0

0

0

0

0

0

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Accessibility

DecSummary_F

Decision Summary*Decisions currently in spreadsheet.Course ID: 0 Round Number: 0Team Name: Decision Year: 0Time Stamp: 4/7/2023 13:58

PRODUCTSProduct Name Able Acre Adam Aft AgapePerformance 5.1 2.0 7.5 8.9 4.0Size 14.7 16.8 11.9 15.2 11.0MTBF 17,500 14,000 23,000 25,000 19,000Price $28.00 $21.00 $38.00 $33.00 $33.00 Promo Budget $1,000 $900 $800 $700 $700 Sales Budget $1,000 $900 $800 $700 $700 Your Sales Forecast 0 0 0 0 0Sched Production 2,400 1,350 500 420 550Capacity Change 0 0 0 0 0Automation Rating 4.0 5.0 3.0 3.0 3.0

FINANCE TQMStock Issue $0 CPI $0 Stock Retire $0 Vendor/JIT $0 Dividend PerShare $0.00 QIT $0 Short Term Debt $0 CSS $0 Bond Retire $0 CE $0 Bond Issue $0 Benchmark $0 AR Policy 30 QFDE $0 AP Policy 30 CCE/6 $0

UNEPGreen $0 GEMITQEM $0

HUMAN RESOURCESComplement #VALUE!Recruiting Spend $800 Training Hours 30

DecSummary

Capstone Decision Summary und 0 - 0*Decisions currently in spreadsheet. Course ID: 0Round Number: 0 Team Name:Decision Year: 0 Time Stamp: 4/7/2023 13:58

PRODUCTSProduct Name Able Acre Adam Aft Agape NA NA NAPerformance 5.1 2.0 7.5 8.9 4.0 0.0 0.0 0.0Size 14.7 16.8 11.9 15.2 11.0 0.0 0.0 0.0MTBF 17,500 14,000 23,000 25,000 19,000 0 0 0Price $28.00 $21.00 $38.00 $33.00 $33.00 $0.00 $0.00 $0.00 Promo Budget $1,000 $900 $800 $700 $700 $0 $0 $0 Sales Budget $1,000 $900 $800 $700 $700 $0 $0 $0 Your Sales Forecast 0 0 0 0 0 0 0 0Sched Production 2,400 1,350 500 420 550 0 0 0Capacity Change 0 0 0 0 0 0 0 0Automation Rating 4.0 5.0 3.0 3.0 3.0 0.0 0.0 0.0

FINANCE HUMAN RESOURCESStock Issue $0

LABOR NEGOTIATION Starting CeilingStock Retire $0 Dividend PerShare $0.00 Wages $0.00 $0.00 Short Term Debt $0 Benefits $0 $0 Bond Retire $0 Profit Sharing 0.0% 0.0%Bond Issue $0 Annual Wage Increase 0.0% 0.0%AR Policy 30 Complement #VALUE!AP Policy 30 Recruiting Spend $800

Training Hours 30TQM

CPI Vendor/JIT QIT CSS CE Benchmark QFDE CCE/6 UNEPGreen GEMITQEM$0 $0 $0 $0 $0 $0 $0 $0 $0 $0

ADVANCED MARKETINGAble Acre Adam Aft Agape NA NA NA

Target Segment Traditional Low End High End Pfmn SizePrint Media $200 $180 $160 $140 $140 $0 $0 $0 Direct Mail $200 $180 $160 $140 $140 $0 $0 $0 Web Media $200 $180 $160 $140 $140 $0 $0 $0 Email $200 $180 $160 $140 $140 $0 $0 $0 Trade Shows $200 $180 $160 $140 $140 $0 $0 $0

Time AllocationsResources Trad Low High Pfmn Size Able 24%

Outside Sales 10 2 2 2 2 2 Acre 22%Inside Sales 27 6 6 5 5 5 Adam 20%Distributors 13 2 2 3 3 3 Aft 17%Intell. Report No No No No No Agape 17%

NA 0%NA 0%

NA 0%

Round -1, 12/31/-1 For Industry 0 Cheap at any price

C46932a C46932a $0

SELECTED FINANCIAL STATISTICS 0 0 0 0 0 0ROS -8.9% 5.8% 6.5% 6.7% 5.4% 7.0%Turnover 0.53 1.08 1.24 1.20 0.96 1.35 ROA -4.7% 6.2% 8.1% 8.0% 5.2% 9.5%Leverage 2.4 2.0 2.0 2.0 2.0 2.0ROE -11.1% 12.6% 15.9% 15.9% 10.7% 18.7%Emergency Loan $46,090,447 $0 $0 $0 $0 $0 Sales $86,843,321 $124,991,194 $156,908,140 $160,750,788 $120,320,106 $143,463,151 EBIT $622,454 $17,555,941 $22,565,602 $23,729,435 $17,143,168 $21,108,135 Profits ($7,723,815) $7,189,377 $10,246,124 $10,748,192 $6,544,128 $10,065,547 Cumulative Profit ($570,258) $19,278,721 $18,477,245 $21,232,830 $15,527,896 $20,785,529 SG&A % Sales 12.3% 13.7% 10.7% 12.2% 9.7% 13.0%Contrib. Margin % 25.8% 33.9% 30.2% 31.8% 30.7% 31.4%

Page 1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Percent of SalesProfit Other SG&A Depreciation Variable costs

Market Share

B4

Bonuses are awarded by your professor for extra credit work. They create additional income for your company. The Bonus appears as a negative expense on the "Other" line in the Income Statement.

For Industry 0 Round -1, 12/31/-1STOCK MARKET SUMMARY

Company Close Change Shares Market Book EPS Dividend Yield P/ECap ($M) Value

Andrews $2.95 ($28.60) 2,847,907 $8 $24.40 ($2.71) $0.20 6.8% (1.1)Baldwin $49.71 $3.88 2,046,274 $102 $27.94 $3.51 $3.64 7.3% 14.2Chester $49.98 $11.66 2,069,366 $103 $31.17 $4.95 $0.05 0.1% 10.1Digby $54.61 $11.88 2,067,426 $113 $32.76 $5.20 $0.00 0.0% 10.5Erie $43.65 $3.86 2,128,085 $93 $28.84 $3.08 $1.08 2.5% 14.2Ferris $53.32 $10.68 2,000,000 $107 $26.94 $5.03 $1.48 2.8% 10.6

BOND MARKET SUMMARYCompany Series# Face Yield Close RatingAndrews 12.5S2015 $13,900,000 12.5% $99.83 CC 14.0S2017 $20,850,000 13.4% $104.20 CC Baldwin 12.5S2015 $11,772,240 12.4% $101.19 B 14.0S2017 $20,850,000 13.1% $106.71 B Chester 12.5S2015 $13,900,000 12.3% $101.36 B 14.0S2017 $20,850,000 13.1% $107.03 B 11.3S2023 $717,906 11.6% $97.71 B Digby 12.5S2015 $13,886,425 12.3% $101.36 B 14.0S2017 $20,850,000 13.1% $107.03 B 11.2S2023 $3,170,784 11.5% $97.14 B Erie 12.5S2015 $13,900,000 12.4% $101.02 B 14.0S2017 $20,850,000 13.2% $106.39 B 11.2S2023 $3,404,975 11.7% $96.03 B Ferris 12.5S2015 $5,117,964 12.3% $101.36 B 14.0S2017 $20,850,000 13.1% $107.03 B

Page 2

5

$0

$2

$4

$6

$8

$10

$12Closing Stock Price

Row 199

Row 200

Row 201

Row 202

Row 203

Row 204

For Industry 0 Round -1, 12/31/-1

Cash Flow Statement Survey 0 0 0 0 0 0Cash flows from operating activitiesNet Income (Loss) ($7,724) $7,189 $10,246 $10,748 $6,544 $10,066 Adjustment for non-cash items Depreciation $10,373 $7,647 $7,900 $7,533 $8,455 $6,000 Extraordinary gains/losses/writeoffs $0 $82 $13 $7 ($539) ($797)Changes in current assets and liabilities Accounts payable $396 ($82) $1,996 $2,673 $79 $1,700 Inventory ($37,023) ($3,158) ($2,042) ($4,108) $781 ($1,394) Accounts receivable $1,935 $134 ($2,948) ($3,401) ($575) ($2,293)Net cash from operations ($32,042) $11,812 $15,165 $13,452 $14,745 $13,281 Cash flows from investing activities Plant improvements (net) ($15,000) ($4,130) ($8,540) ($20,820) ($10,792) ($8,010)Cash flows from financing activities Dividends paid ($570) ($7,450) ($100) $0 ($2,288) ($2,957) Sales of common stock $15,144 $0 $0 $2,228 $0 $0 Purchase of common stock ($1,000) $0 $0 $0 $0 $0 Cash from long term debt issued $0 $0 $718 $3,171 $3,405 $0 Early retirement of long term debt $0 ($3,243) $0 $0 $0 ($992) Retirement of current debt ($12,623) ($11,359) ($11,359) ($11,359) ($11,359) ($11,359) Cash from current debt borrowing $0 $19,372 $15,774 $18,840 $14,857 $18,020 Cash from emergency loan $46,090 $0 $0 $0 $0 $0 Net cash from financing activities $47,042 ($2,680) $5,033 $12,881 $4,615 $2,711

Net change in cash position $0 $5,002 $11,658 $5,513 $8,568 $7,983

Balance Sheet Survey 0 0 0 0 0 0Cash $0 $24,283 $28,594 $24,632 $26,035 $25,551 Accounts Receivable $7,138 $10,273 $12,897 $13,212 $9,889 $11,791 Inventory $59,968 $13,069 $11,694 $13,439 $9,314 $11,501 Total Current Assets $67,106 $47,626 $53,184 $51,284 $45,238 $48,844 Plant and equipment $155,600 $114,700 $118,500 $128,000 $126,818 $90,000 Accumulated Depreciation ($57,680) ($46,247) ($45,047) ($45,587) ($47,128) ($32,880)Total Fixed Assets $97,920 $68,453 $73,453 $82,413 $79,690 $57,120 Total Assets $165,026 $116,079 $126,637 $133,697 $124,928 $105,964Accounts Payable $7,748 $6,917 $9,057 $9,212 $6,699 $8,094 Current Debt $53,040 $19,372 $17,606 $18,840 $18,693 $18,020 Long Term Debt $34,750 $32,622 $35,468 $37,907 $38,155 $25,968 Total Liabilities $95,538 $58,912 $62,131 $65,959 $63,548 $52,081 Common Stock $46,599 $19,945 $20,736 $21,112 $22,747 $18,360 Retained Earnings $22,888 $37,222 $43,771 $46,626 $38,633 $35,523 Total Equity $69,488 $57,167 $64,506 $67,738 $61,380 $53,882 Total Liabilities & Owner's Equity $165,026 $116,079 $126,637 $133,697 $124,928 $105,964

Income Statement Survey 0 0 0 0 0 0Sales $86,843 $124,991 $156,908 $160,751 $120,320 $143,463 Variable Costs (Labor, Material, Carry) $64,436 $82,571 $109,551 $109,580 $83,405 $98,462 Depreciation $10,373 $7,647 $7,900 $7,533 $8,455 $6,000 SG&A (R&D, Promo, Sales, Admin) $10,640 $17,087 $16,842 $19,631 $11,687 $18,676 Other (Fees, Write Offs, TQM, Bonus) $772 $130 $49 $277 ($369) ($782)EBIT $622 $17,556 $22,566 $23,729 $17,143 $21,108 Interest (Short term, Long term) $12,505 $6,270 $6,481 $6,856 $6,870 $5,307 Taxes ($4,159) $3,950 $5,630 $5,906 $3,596 $5,531 Profit Sharing $0 $147 $209 $219 $134 $205 Net Profit ($7,724) $7,189 $10,246 $10,748 $6,544 $10,066

Page 3


Production Information

Name MTBF Price

Able Trad 1,257 2,108 2.1 17500 5.1 14.7 $28.00 $9.52 $8.37 20% 4% 4.0 2,500 103%Acre Low 832 645 2.3 14000 2.0 16.8 $21.00 $6.09 $7.05 30% 0% 5.0 2,000 74%Adam High 283 262 1.8 23000 7.5 11.9 $38.00 $13.64 $9.40 31% 0% 3.0 1,100 50%Aft Pfmn 405 11 2.0 25000 8.9 15.2 $33.00 $13.65 $9.40 29% 0% 3.0 800 59%Agape Size 305 265 2.0 19000 4.0 11.0 $33.00 $11.69 $9.40 28% 0% 3.0 800 78% Baker Trad 992 233 1.8 17000 6.5 13.5 $29.00 $10.60 $7.05 39% 0% 5.0 1,300 84%Bead Low 2,186 222 6.6 14000 3.0 17.0 $21.00 $6.38 $6.96 34% 64% 7.0 1,400 163%Bid High 793 93 1.2 23500 10.4 9.6 $39.00 $16.26 $11.35 31% 78% 3.0 600 176%Bold High 321 96 1.7 22000 8.8 13.5 $34.00 $13.29 $9.40 29% 0% 3.0 600 58%Buddy Size 249 60 1.6 16000 6.2 11.4 $34.00 $11.26 $9.40 35% 0% 3.0 650 41% Cake Trad 1,347 169 1.9 14000 6.4 13.6 $26.50 $9.61 $8.00 32% 40% 5.5 1,000 139%Cedar Low 2,395 227 6.6 12000 3.0 17.0 $19.50 $5.78 $6.42 35% 82% 7.5 1,450 180%Cid High 692 114 1.3 23000 10.2 9.8 $37.50 $15.92 $10.04 31% 17% 3.0 600 116%Coat Pfmn 767 43 1.5 27000 11.8 13.9 $32.50 $16.38 $10.29 20% 25% 4.0 650 124%Cure Size 727 79 1.6 17000 5.4 8.6 $32.50 $12.94 $10.29 28% 25% 4.0 600 124% Daze Trad 1,442 193 1.8 18100 6.8 13.3 $29.00 $11.17 $7.72 34% 25% 5.0 1,200 124%Dell Low 1,926 172 6.6 14000 3.0 17.0 $21.50 $6.38 $6.71 37% 43% 7.0 1,400 141%Dixie High 695 149 1.2 24000 10.2 9.8 $39.00 $16.22 $10.88 31% 50% 3.0 600 149%Dot Pfmn 773 61 1.5 27000 11.8 13.9 $34.00 $16.38 $10.51 23% 33% 3.0 650 132%Dune Size 711 86 1.5 19000 5.8 8.6 $34.00 $13.65 $10.29 30% 25% 3.0 650 124%Doom 0 0 0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 6.0 500 0% Eat Trad 1,471 179 2.1 15500 5.5 14.5 $27.00 $9.21 $7.37 36% 11% 7.0 1,400 110%Ebb Low 2,247 213 6.6 12000 3.0 17.0 $19.50 $5.78 $7.00 32% 68% 6.0 1,500 166%Echo Trad 1,203 99 1.4 16000 6.4 13.6 $27.00 $10.21 $9.20 23% 33% 5.0 900 132%Edge Pfmn 49 0 4.5 25000 9.4 15.5 $34.00 $13.87 $11.63 28% 99% 3.0 1 198%Egg Size 77 65 2.3 19000 6.9 13.4 $34.00 $11.44 $9.40 29% 0% 3.0 600 8% Fast Trad 1,134 264 2.1 14000 5.5 14.5 $29.00 $8.76 $9.72 32% 63% 4.0 800 161%Feat Low 1,510 0 6.6 13000 3.0 17.0 $22.00 $6.08 $8.72 32% 100% 6.0 700 198%Fist High 695 122 1.2 25000 10.2 9.8 $39.00 $16.52 $10.67 32% 40% 3.0 550 139%Foam Pfmn 746 56 1.5 27000 11.8 14.2 $34.00 $16.30 $9.00 27% 25% 4.0 650 124%Fume Size 732 86 1.5 19000 5.4 8.4 $34.00 $13.67 $9.00 34% 25% 4.0 600 124%Fox 0 0 0.0 25000 11.0 9.0 $39.00 $0.00 $0.00 0% 0% 5.5 500 0%

Page 4

Primary Segment

Units Sold

Units in Inventory

Revision Date

Age Dec.31

Pfmn Coord

Size Coord

Material Cost

Labor Cost

Contr Marg.

2nd Shift & Over-

time

Auto- mation Next

Round

Capac-ity Next Round

Plant Utiliz.

0 1,000Capacity vs. Production

Production Capacity


StatisticsTotal Industry Unit Demand 2,347Actual Industry Unit Sales 2,347Segment % of Total Industry 9.1%Growth Rate Next Year 18.3%

Customer Buying CriteriaExpectations Importance

1. 0 0 43%2. 0 0 29%3. 0 0 19%4. 0 0 9%

Top Products In Segment Name Pfmn Coord List Price MTBF

0.00 19% 443 1-Nov-12 4.9 9.8 $34.50 19000 1.9 $1,100 55% $1,263 44% 370.00 18% 414 5-Aug-12 5.1 11.2 $34.50 19000 2.0 $1,300 61% $708 36% 150.00 16% 371 16-Dec-12 4.9 9.7 $32.50 18000 1.8 $1,000 52% $1,016 39% 340.00 16% 365 9-Dec-12 4.7 9.6 $34.50 19000 1.8 $1,000 52% $1,175 42% 370.00 13% 294 24-Dec-13 4.0 11.0 $34.50 19000 3.6 $900 49% $725 35% 60.00 13% 293 25-May-09 4.0 11.0 $33.00 19000 3.6 $700 42% $700 35% 60.00 2% 40 9-Mar-12 5.4 14.5 $29.50 17000 2.5 $1,300 67% $1,362 36% 10.00 1% 33 10-Jun-12 6.1 14.0 $29.50 17800 2.3 $1,100 61% $1,330 44% 10.00 1% 28 2-Mar-12 5.6 14.5 $29.50 17500 2.5 $1,100 61% $1,175 42% 00.00 1% 28 21-Apr-12 5.7 14.3 $27.50 15000 2.4 $1,100 61% $1,070 39% 10.00 1% 25 16-Mar-12 5.6 14.5 $27.50 16500 2.4 $1,050 60% $1,015 35% 00.00 1% 13 20-Nov-08 5.5 14.5 $28.00 17500 4.1 $1,000 58% $1,000 35% 0

Page 9

Market Share

Units Sold to Seg

Revision Date

Stock Out

Size Coord

Age Dec.31

Promo Budget

Customer Awareness

Sales Budget

Customer Accessibility

December Customer

Survey

0.00

0.00

0.00

0.00

0.00

0.00

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Accessibility

0.00 0.00 0.00 0.00 0.00 0.000%

5%

10%

15%

20%

25%Market Share Actual versus potential Actual Potential

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 200123456789

1011121314151617181920

11

1111

1 11111

Perceptual Map

Performance

Size


Actual Market Share in Units Potential Market Share in Units Trad Low High Pfmn Size Total Trad Low High Pfmn Size TotalIndustry Unit Sales 8,809 11,180 3,448 2,749 2,776 28,961 Units Demanded 8,809 11,180 3,448 2,749 2,776 28,961 % of Market 30.4% 38.6% 11.9% 9.5% 9.6% 100.0% % of Market 30.4% 38.6% 11.9% 9.5% 9.6% 100.0%

Able 13.9% 0.3% 0.0% 0.0% 0.0% 4.3% Able 13.9% 0.3% 0.0% 0.0% 0.0% 4.3%Acre 0.0% 7.4% 0.0% 0.0% 0.0% 2.9% Acre 0.0% 7.4% 0.0% 0.0% 0.0% 2.9%Adam 0.0% 0.0% 7.9% 0.0% 0.4% 1.0% Adam 0.0% 0.0% 7.9% 0.0% 0.4% 1.0%Aft 0.9% 0.0% 0.2% 11.5% 0.0% 1.4% Aft 0.9% 0.0% 0.1% 11.3% 0.0% 1.4%Agape 0.4% 0.0% 0.0% 0.0% 9.6% 1.1% Agape 0.4% 0.0% 0.0% 0.0% 9.6% 1.1%Total 15.3% 7.7% 8.0% 11.5% 10.0% 10.6% Total 15.3% 7.7% 8.0% 11.3% 10.0% 10.6% Baker 11.3% 0.0% 0.0% 0.0% 0.0% 3.4% Baker 11.3% 0.0% 0.0% 0.0% 0.0% 3.4%Bead 0.0% 19.5% 0.0% 0.0% 0.0% 7.6% Bead 0.0% 19.4% 0.0% 0.0% 0.0% 7.5%Bid 0.0% 0.0% 23.0% 0.0% 0.0% 2.7% Bid 0.0% 0.0% 23.0% 0.0% 0.0% 2.7%Bold 0.0% 0.0% 5.8% 4.4% 0.0% 1.1% Bold 0.0% 0.0% 5.8% 4.1% 0.0% 1.1%Buddy 0.0% 0.0% 0.5% 0.0% 8.3% 0.9% Buddy 0.0% 0.0% 0.6% 0.0% 8.3% 0.9%Total 11.3% 19.5% 29.4% 4.4% 8.3% 15.7% Total 11.3% 19.4% 29.4% 4.1% 8.3% 15.6% Cake 15.1% 0.2% 0.0% 0.0% 0.1% 4.7% Cake 15.1% 0.2% 0.0% 0.0% 0.0% 4.6%Cedar 0.0% 21.4% 0.0% 0.0% 0.0% 8.3% Cedar 0.0% 21.3% 0.0% 0.0% 0.0% 8.2%Cid 0.0% 0.0% 20.1% 0.0% 0.0% 2.4% Cid 0.0% 0.0% 20.1% 0.0% 0.0% 2.4%Coat 0.0% 0.0% 0.3% 27.5% 0.0% 2.7% Coat 0.0% 0.0% 0.3% 25.7% 0.0% 2.5%Cure 0.0% 0.0% 0.0% 0.0% 26.2% 2.5% Cure 0.0% 0.0% 0.0% 0.0% 26.2% 2.5%Total 15.1% 21.6% 20.4% 27.5% 26.2% 20.5% Total 15.1% 21.4% 20.4% 25.7% 26.2% 20.2% Daze 16.0% 0.0% 0.9% 0.1% 0.1% 5.0% Daze 16.0% 0.0% 0.9% 0.1% 0.1% 5.0%Dell 0.0% 17.2% 0.0% 0.0% 0.0% 6.7% Dell 0.0% 17.1% 0.0% 0.0% 0.0% 6.6%Dixie 0.0% 0.0% 20.2% 0.0% 0.0% 2.4% Dixie 0.0% 0.0% 20.2% 0.0% 0.0% 2.4%Dot 0.0% 0.0% 0.3% 27.7% 0.0% 2.7% Dot 0.0% 0.0% 0.3% 25.9% 0.0% 2.5%Dune 0.0% 0.0% 0.0% 0.0% 25.6% 2.5% Dune 0.0% 0.0% 0.0% 0.0% 25.6% 2.5%Total 16.0% 17.2% 21.3% 27.8% 25.7% 19.2% Total 16.0% 17.1% 21.3% 25.9% 25.7% 18.9% Eat 16.3% 0.4% 0.0% 0.0% 0.0% 5.1% Eat 16.3% 0.3% 0.0% 0.0% 0.0% 5.1%Ebb 0.0% 20.1% 0.0% 0.0% 0.0% 7.8% Ebb 0.0% 20.0% 0.0% 0.0% 0.0% 7.7%Echo 13.3% 0.0% 0.6% 0.0% 0.6% 4.2% Echo 13.2% 0.0% 0.6% 0.0% 0.6% 4.2%Edge 0.0% 0.0% 0.0% 1.8% 0.0% 0.2% Edge 0.0% 0.0% 0.0% 7.8% 0.0% 0.7%Egg 0.0% 0.0% 0.0% 0.0% 2.8% 0.3% Egg 0.0% 0.0% 0.0% 0.0% 2.8% 0.3%Total 29.5% 20.4% 0.6% 1.8% 3.3% 17.4% Total 29.5% 20.3% 0.6% 7.8% 3.3% 17.9% Fast 12.9% 0.0% 0.0% 0.0% 0.0% 3.9% Fast 12.9% 0.0% 0.0% 0.0% 0.0% 3.9%Feat 0.0% 13.5% 0.0% 0.0% 0.0% 5.2% Feat 0.0% 14.1% 0.0% 0.0% 0.0% 5.4%Fist 0.0% 0.0% 20.2% 0.0% 0.0% 2.4% Fist 0.0% 0.0% 20.2% 0.0% 0.0% 2.4%Foam 0.0% 0.0% 0.1% 27.0% 0.0% 2.6% Foam 0.0% 0.0% 0.1% 25.2% 0.0% 2.4%Fume 0.0% 0.0% 0.0% 0.0% 26.4% 2.5% Fume 0.0% 0.0% 0.0% 0.0% 26.4% 2.5%Total 12.9% 13.5% 20.3% 27.0% 26.4% 16.6% Total 12.9% 14.1% 20.3% 25.2% 26.4% 16.7%

Page 10

Trad Low High Pfmn Size0

2

4

6

8

10

12Industry Unit Sales vs demand Unit sales Unit demand

0%

200%

400%

600%

800%

1000%

1200%

Market segment shares Trad Low High Pfmn Size

Perceptual Map For Industry 0 Round -1, 12/31/-1

0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0

0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0

Page 11

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 200

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

111111111111111111111111111111111111111111111111

Performance

Size


TQM SUMMARYProcess Management Budgets Last Year ($M)

Andrews Baldwin Chester Digby Erie FerrisCPI Systems $0 $0 $0 $0 $0 $0 Vendor/JIT $0 $0 $0 $0 $0 $0 Quality Initiative Training $0 $0 $0 $0 $0 $0 Channel Support Systems $0 $0 $0 $0 $0 $0 Concurrent Engineering $0 $0 $0 $0 $0 $0 UNEP Green $0 $0 $0 $0 $0 $0

TQM Budgets Last Year ($M)Benchmarking $0 $0 $0 $0 $0 $0 Quality Function Deployment Effort $0 $0 $0 $0 $0 $0 CCE/6 Sigma Training $0 $0 $0 $0 $0 $0 GEMI Sustain $0 $0 $0 $0 $0 $0 Total Expenditures ($000) $0 $0 $0 $0 $0 $0

Cumulative ImpactsMaterial Cost Reduction 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Labor Cost Reduction 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Reduction R&D Cycle Time 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Reduction in Admin Costs 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Demand increase 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

HUMAN RESOURCES SUMMARYAndrews Baldwin Chester Digby Erie Ferris

Needed Complement 894 715 912 912 727 820Complement 880 715 912 912 727 8201st Shift Complement 877 537 650 678 538 5412nd Shift Complement 3 178 262 234 189 278

Overtime% 1.6% 0.0% 0.0% 0.0% 0.0% 0.0%Turnover Rate 9.0% 8.9% 9.1% 8.9% 9.1% 8.9%New Employees 159 63 213 286 66 201Separated Employees 0 51 0 0 9 0Recruiting Spend $800 $2,000 $2,000 $2,200 $2,000 $2,500Training Hours 30 30 25 30 25 30Productivity Index 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Recruiting Cost $285 $190 $640 $916 $198 $704 Separation Cost $0 $257 $0 $0 $47 $0 Training Cost $528 $429 $456 $547 $363 $492 Total HR Admin Costs $813 $876 $1,096 $1,463 $608 $1,196

Labor Contract Next YearWages $23.15 $23.15 $23.15 $23.15 $23.15 $23.15 Benefits $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 Profit Sharing 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Annual Raise 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%

Starting Negotiation PositionWages Benefits Profit Sharing Annual Raise

Ceiling Negotiation PositionWages Benefits Profit Sharing Annual Raise

Adjusted Labor DemandsWages Benefits Profit Sharing Annual Raise

Strike Days

Page 12


ETHICS SUMMARY

Page 13

0 For Industry 0 Round -1, 12/31/-1

Balance SheetASSETS -1 -2

Common SizeCash $0 0.0% $0 Accounts Receivable $0 0.0% $0 Inventory $0 0.0% $0 Total Current Assets $0 0.0% $0

Plant & Equipment $0 0.0% $0 Accumulated Depreciation $0 0.0% $0 Total Fixed Assets $0 0.0% $0

Total Assets $0 0.0% $0

LIABILITIES & OWNER'S EQUITY

Accounts Payable $0 0.0% $0 Current Debt $0 0.0% $0 Long Term Debt $0 0.0% $0 Total Liabilities $0 0.0% $0

Common Stock $0 0.0% $0 Retained Earnings $0 0.0% $0 Total Equity $0 0.0% $0

Total Liabilities and Owner's Equity $0 0.0% $0

Cash Flow StatementCash Flows from Operating Activities -1 -2Net Income (Loss) $0 $0 Adjustment for non-cash items

Depreciation $0 $0 Extraordinary gains/losses/writeoffs $0 $0

Change in Current Assets and LiabilitiesAccounts Payable $0 $0 Inventory $0 $0 Accounts Receivable $0 $0

Net cash from operations $0 $0

Cash Flows From Investing ActivitiesPlant Improvements $0 $0

Cash Flows from Financing ActivitiesDividends Paid $0 $0 Sales of Common Stock $0 $0 Purchase of Common Stock $0 $0 Cash from long term debt $0 $0 Retirement of long term debt $0 $0 Change in current debt (net) $0 $0 Net cash from financing activities $0 $0

Net change in cash position $0 $0

Closing cash position $0 $0

Page 1

Definitions: Common Size - The common size column simply represents each item as a percentage of total assets. Cash - Your end of year cash position. Accounts Receivable - Reflects the lag between delivery and payment of your products. Inventories - The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment - The current value of your plant. Accum Deprec - The total accumulated depreciation from your plant. Accts Payable - What the company currently owes suppliers for materials and services. Current Debt - The debt the company is obligated to pay during the next year of operations. It includes your short term debt, bonds that have matured this year, and emergency loans used to keep your company solvent should you run out of cash during the year. Long Term Debt - The company's long term debt is in the form of bonds, and this represents the total of those bonds. Common Stock - The amount of capital invested by shareholders in the company. Retained Earnings - The profits that the company chose to keep instead of paying to shareholders as dividends.

The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and cash withdrawals as negative numbers.

The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When negative cash flows exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash, and force you to beg for money to keep you afloat.

$0

$2

$4

$6

$8

$10

$12Cash FlowSummary

Operations

Investments

Financing

Change


-1 Income Statement -1 Common -2Product Name Total SizeSales $35,192 $17,473 $10,758 $13,359 $10,062 $86,843 100.0% $0 Variable CostsDirect Labor $10,548 $5,841 $2,649 $3,805 $2,860 $25,704 29.6% $0 Direct Material $12,805 $5,400 $3,993 $5,660 $3,678 $31,536 36.3% $0 Inventory Carry $4,700 $1,046 $737 $31 $683 $7,196 8.3% $0 Total Variable Costs $28,053 $12,288 $7,379 $9,496 $7,220 $64,436 74.2% $0 Contribution Margin $7,139 $5,185 $3,379 $3,863 $2,842 $22,408 25.8% $0 Period CostsDepreciation $3,667 $3,467 $1,320 $960 $960 $10,373 11.9% $0 SG&A: R&D $211 $298 $157 $200 $151 $1,019 1.2% $0

Promotions $1,000 $900 $800 $700 $700 $4,100 4.7% $0 Sales $1,000 $900 $800 $700 $700 $4,100 4.7% $0 Admin $576 $286 $176 $219 $165 $1,421 1.6% $0

Total Period Costs $6,454 $5,851 $3,253 $2,779 $2,676 $21,013 24.2% $0 Net Margin $686 ($666) $126 $1,084 $165 $1,395 1.6% $0

Other $772 0.9% $0 EBIT $622 0.7% $0 Short Term Interest $7,849 9.0% $0 Long Term Interest $4,657 5.4% $0 Taxes ($4,159) -4.8% $0 Profit Sharing $0 0.0% $0 Net Profit ($7,724) -8.9% $0

Success Measures

Page 2

Definitions: Sales - Unit sales times list price. Direct Labor - Labor costs incurred to produce the product that was sold. Inventory Carry - The cost to carry unsold goods in inventory. Depreciation - Calculated on straight-line 15-year depreciation of plant value. R&D - R&D department expenditures for each product. Admin - Administration overhead is estimated at 1.5% of sales. Promotions - The promotion budget for each product. Sales - The sales force budget for each product. Other - Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds, plus consulting fees your instructor might assess you, plus TQM expenditures. Write offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory. EBIT - Earnings Before Interest and Taxes. Short Term Interest - Interest expense based upon last year's current debt, including short-term debt, long-term notes that have become due, and emergency loans. Interest income from your cash account is subtracted from these expenses. If interestincome exceeds expenses, short-term interest appears as a negative amount. Long Term Interest - Interest paid on outstanding bonds. Taxes - Income tax based upon a 35% tax rate. Profit Sharing - Profits shared with employees under the labor contract. Net Profit - EBIT minus interest, taxes, and profit sharing.

0%

200%

400%

600%

800%

1000%

1200%Contribution Margins

0%

200%

400%

600%

800%

1000%

1200%Market Share

0%

200%

400%

600%

800%

1000%

1200%ROS

0%

200%

400%

600%

800%

1000%

1200%ROA

0%

200%

400%

600%

800%

1000%

1200%ROE

$0

$2

$4

$6

$8

$10

$12Profit

0.0

2.0

4.0

6.0

8.0

10.0

12.0AssetTO

0 For Industry 0 Round -1, 12/31/-1

-1 Income Statement -1 Common -2Product Name Total SizeSales $35,192 $17,473 $10,758 $13,359 $10,062 $0 $0 $0 $86,843 100.0% $0 Variable CostsDirect Labor $10,548 $5,841 $2,649 $3,805 $2,860 $0 $0 $0 $25,704 29.6% $0 Direct Material $12,805 $5,400 $3,993 $5,660 $3,678 $0 $0 $0 $31,536 36.3% $0 Inventory Carry $4,700 $1,046 $737 $31 $683 $0 $0 $0 $7,196 8.3% $0 Total Variable Costs $28,053 $12,288 $7,379 $9,496 $7,220 $0 $0 $0 $64,436 74.2% $0 Contribution Margin $7,139 $5,185 $3,379 $3,863 $2,842 $0 $0 $0 $22,408 25.8% $0 Period CostsDepreciation $3,667 $3,467 $1,320 $960 $960 $0 $0 $0 $10,373 11.9% $0 SG&A: R&D $211 $298 $157 $200 $151 $0 $0 $0 $1,019 1.2% $0

Promotions $1,000 $900 $800 $700 $700 $0 $0 $0 $4,100 4.7% $0 Sales $1,000 $900 $800 $700 $700 $0 $0 $0 $4,100 4.7% $0 Admin $576 $286 $176 $219 $165 $0 $0 $0 $1,421 1.6% $0

Total Period Costs $6,454 $5,851 $3,253 $2,779 $2,676 $0 $0 $0 $21,013 24.2% $0 Net Margin $686 ($666) $126 $1,084 $165 $0 $0 $0 $1,395 1.6% $0

Other $772 0.9% $0 EBIT $622 0.7% $0 Short Term Interest $7,849 9.0% $0 Long Term Interest $4,657 5.4% $0 Taxes ($4,159) -4.8% $0 Profit Sharing $0 0.0% $0 Net Profit ($7,724) -8.9% $0

Success Measures

Page 2

Definitions: Sales - Unit sales times list price. Direct Labor - Labor costs incurred to produce the product that was sold. Inventory Carry- The cost to carry unsold goods in inventory. Depreciation - Calculated on straight-line 15-year depreciation of plant value. R&D - R&D department expenditures for each product. Admin - Administration overhead is estimated at 1.5% of sales. Promotions - The promotion budget for each product. Sales - The sales force budget for each product. Other - Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds, plus consulting fees your instructor might assess you, plus TQM expenditures. Write offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory. EBIT - Earnings Before Interest and Taxes. Short Term Interest - Interest expense based upon last year's current debt, including short-term debt, long-term notes that have become due, and emergency loans. Interest income from your cash account is subtracted from these expenses. If interest income exceeds expenses, short-term interest appears as a negative amount. Long Term Interest - Interest paid on outstanding bonds. Taxes - Income tax based upon a 35% tax rate. Profit Sharing - Profits shared with employees under the labor contract. Net Profit - EBIT minus interest, taxes, and profit sharing.

0%

200%

400%

600%

800%

1000%

1200%Contribution Margins

0%

200%

400%

600%

800%

1000%

1200%Market Share

0%

200%

400%

600%

800%

1000%

1200%ROS

0%

200%

400%

600%

800%

1000%

1200%ROA

0%

200%

400%

600%

800%

1000%

1200%ROE

$0

$2

$4

$6

$8

$10

$12Profit

0.0

2.0

4.0

6.0

8.0

10.0

12.0AssetTO

I29

Contribution margin is drawn from the Income Statement as: (Sales - Total Variable Costs) / Sales

Capstone Excel WOrksheet

Documents

Transcript of Capstone Excel WOrksheet