Http://manage/index.php 1 Management simulation game Furniture production.
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Transcript of Http://manage/index.php 1 Management simulation game Furniture production.
http://www.mendelu.cz/~manage/index.php1
Management simulation gameManagement simulation gameFurniture production
http://www.mendelu.cz/~manage/index.php2
Most important parts of the Most important parts of the simulationsimulation Marketing
– based on market research (future market potential).
Sales – product mix and determination of price are very
important.
Planning and production – desks and cabinets, production is planned quarterly.
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Most important parts Most important parts -continued-continuedProcurement
– raw materials are used: metal and synthetics.
Human resource management – recruiting and firing employees, – their wages and training.
Finance – profit, CF, cost, revenue, turnover
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Previous developmentPrevious development
You are at the beginning of the first quarter of the new year (5th quarter).
The development in the previous year is described in the materials.
Together with you there are other 4 firms with the same starting position.
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Previous development Previous development - continued- continued
Given factors:stock of final products ready to be sold;available production capacity;number of employees;stock of raw materials.
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Future developmentFuture developmentSo far you don’t have any information
about the future development;
Therefore you should do a market research, – acquire information about the – potential sales, – the development of raw-materials’ prices for
the next four quarters.
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Market research can give you the Market research can give you the following information:following information:Market potential for desks and cabinets in
the following quarter for certain price;
Prices of raw materials (max 4 quarters in advance);
Prices of competitors (in the previous quarter);
Sales of competitors (in the previous quarter).
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Market potentialMarket potential
Level of demand under certain price;
Excluding the beginning of the simulation, you can acquire only once per quarter and only for one of the future quarters;
Price: 25 000 CZK per product and quarter.
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Other informationOther information
prices of raw materials can be acquired for the whole following year – price: 10 000 CZK per 1 quarter;
prices of competitors can be acquired only for the previous quarter – price: 5 000 CZK;
the volume of desks and cabinets sold by competitors can be acquired only for the previous quarter – price: 20 000 CZK.
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SalesSales
You can sell only those products, – which were produced or – were not sold in the previous quarter.
In case of potential sales higher than your offer, you loose your goodwill, which projects in the simulation into the costs connected with unsatisfied demand – 25 CZK per desk and 50 CZK per cabinet.
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ProductionProduction
You can use 3 machines;
All are able to produce desks and cabinets;
Production is planned in 250 of machine-hours (see the following table).
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Production Production -continued-continued
Machine time
[hours]
DESKS CABINETSProduction [pcs]
Needed workers
Production [pcs]
Needed workers
250 125 1 25 2500 400 2 75 4750 675 3 125 6
1000 950 4 200 81250 1225 5 275 101500 1500 6 400 12
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Production cut-backsProduction cut-backs
Can happen in case of: lack of raw materials; insufficient production capacity; lack of workers.
When necessary, volume of production is adjusted to the available resources– gradual cutting by 250 hours of machine-time, first
cabinets, then desks, etc.
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ProcurementProcurement
Raw materials are ordered and delivered every quarter;
Time-delay between order and delivery is none, JIT;
In case of buying at least 100 thous. kg of any raw material in one quarter, the supplier provides 2 % discount;
Storage capacity is sufficient;Storage costs are 0,5 CZK.kg-1.
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Human resource managementHuman resource management
You can decide about:Wage index - can not be lower than 90;Training - yes/no - 5 % of total wages;Recruiting and firing employees
– number of employees is unlimited; – they acquire wages immediately, but work
from the next quarter; – if PI is under the industry average – extra
costs of 5 thous. CZK per one recruited employee.
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Personnel indexPersonnel index
Labour relations criterion;Influenced by five variables:
– wage level,– change of the wage level,– firing workers (more than 5 in 1 q.),– training,– influence of competition.
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Influence of variables on PIInfluence of variables on PIFactor Influence
Base index Base value is always 100.
Wage index Always compared with the BI.
Change of WI Change of the WI projects appropriately into the change of PI.
Firing Firing more than 5 employees in 1 quarter causes decline of PI by 10 points.
Training
T(n-1) T(n) Influence on PI 1 1 +10 0 1 + 5 0 0 0 1 0 - 5
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Influence of PI on sick-leaveInfluence of PI on sick-leave
Personnel index Sick-leave
< 90 25 %
<90; 100) 15 %
<100; 110) 5 %
>= 110 0 %
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FinanceFinance
Equity:– cca 7,5 mil. Kč (3 mil. = shares),– changes = only by accumulating profits or covering
losses. External capital:
– investment credit - on request, interest rate = 3 % per quarter (repayments start one year after acquiring, interests start immediately),
– extended credit - given automatically in case of problems with liquidity; only for 1 quarter, interest rate = 10 % per quarter.
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BankruptcyBankruptcy
In case of insolvency in two following quarters;
Significant negative influence on the total evaluation of the company;
Production and sales can freely continue – company liquidator
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GOOD LUCK!!!GOOD LUCK!!!