Micromatic simulation team and solo versions
Download
1 / 23

Micromatic Simulation Team and Solo Versions - PowerPoint PPT Presentation


  • 181 Views
  • Updated On :

Micromatic Simulation Team and Solo Versions. Introduction . Simulate the workings of a small manufacturing business Each team (? in total) will play against each other Computer just process each companies individual decisions

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Micromatic Simulation Team and Solo Versions' - triage


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Micromatic simulation team and solo versions l.jpg

Micromatic Simulation Team and Solo Versions

Mgmt 481


Introduction l.jpg
Introduction

  • Simulate the workings of a small manufacturing business

  • Each team (? in total) will play against each other

  • Computer just process each companies individual decisions

  • Administrator (me) acts as owner, banker and industry regulator, union negotiator, etc.

Mgmt 481


Goals l.jpg
Goals

  • Understand the importance of a business and strategic plan to guide business decisions

  • Understand the relationship between the three main financial statements

  • Understand the relationship between marketing, operations and finance

  • Understand the operational issues of production, inventory, plant and labor force

Mgmt 481


How to approach the simulation l.jpg
How to approach the simulation

Management is a balance of art (intuition) and science (analysis of facts) combined with group dynamics

To Succeed you should:

  • Manage your time efficiently (stay focused)

  • Manage your business – do not guess at your decisions

Mgmt 481


To succeed you should l.jpg
To Succeed you should

  • Learn from your failures

    • Decision rules are the same for every round

    • Must learn to capitalize of success and recover from mistakes

  • Do not worry if a little confused at start

    • you will quickly move up the learning curve

    • Simulation requires applying your knowledge not just listening as in lectures (fundamental shift)

Mgmt 481


Four functions of management l.jpg
Four Functions of Management

Planning

Controlling

Leading

Organizing

Mgmt 481


The manager as a planner l.jpg
The Manager as a Planner

Must develop the Vision

  • Mission Statement & Statement of Goals & Strategies

    • Who are the customers, what are their needs and how will gain competitive advantage

    • What are your corporate values

Low price /

High volume

Premium price /

Low volume

Mgmt 481


The manager as a planner8 l.jpg
The Manager as a Planner

In the Simulation you are responsible for the planning in five main areas

  • Marketing

  • Production

  • Finance

  • Sales Forecasting

  • Management Dilemmas

Mgmt 481


Marketing production finance sales dilemmas l.jpg
Marketing – Production – Finance – Sales - Dilemmas

Marketing Decisions

  • Pricing

    • Price sensitive marketplace unless enticed by stronger marketing efforts (oligopoly)

  • Promotion

    • Local newspaper advertising, trade publications, ad message, salesreps, WWW promotion, product features and quality

  • Market Research

    • Can buy Market Research Information (9 types)

    • Price, local newspaper advertising, trade publications, quality, WWW, salespersons, product features, units sold, all by Company, Future Sales Potential

Mgmt 481


Marketing production finance sales dilemmas10 l.jpg
Marketing – Production – Finance – Sales - Dilemmas

Production Decisions

  • Ordering Raw Material (order + carrying cost)

  • Product Research and Development

  • # of Units to Produce

    • Must have raw material, plant capacity & # of workers

  • # of production workers to hire, fire or layoff

    • Begin with 54 workers; can add overtime

  • Amount of production capacity to buy or sell

  • $ to invest in Training

    • Improve productivity

Mgmt 481


Marketing production finance sales dilemmas11 l.jpg
Marketing – Production – Finance – Sales - Dilemmas

Finance Decisions

  • Short Term Loans (Line of Credit)

    • Finance current operations

  • Long term Bonds (mortgages)

    • Finance expansion of plant capacity

  • Short Term investment deposits or withdrawals

    • Can invest excess cash into stable & conservative short term securities

Mgmt 481


Marketing production finance sales dilemmas12 l.jpg
Marketing – Production – Finance – Sales - Dilemmas

Sales Forecast Decisions

  • Based your quarterly sales forecast on your current and future mix of pricing, advertising & investment in product quality

    • Use this forecast to set production parameters; but no guarantee you will reach these forecasts

    • If you misjudge your competitor's actions you will not make the forecast

    • Added complication is you do not know what the economy will do.

Mgmt 481


Marketing production finance sales dilemmas13 l.jpg
Marketing – Production – Finance – Sales - Dilemmas

Management Dilemmas

  • Periodically will introduce various management dilemmas

    • Range from employee theft to union relations to substance abuse

    • There is no right answer in these dilemmas

    • Responses to the dilemmas will result in different consequences

    • Consequences can effect worker productivity, sales, cost of raw materials or interest rates

Mgmt 481


The manager as an organizer l.jpg
The Manager as an Organizer

Must develop the Organizational Hierarchy

  • Organizational Chart

    • List of duties & responsibilities for each position

  • Staff the position

    • Remember the dual role (student -> friendship) and (manager -> work)

  • Teams that have an established chain of command do better than “the herd”

  • Herds tend to take narrow view and focus only on a single issue

    • Organized groups (specialized functions) tend to keep broader focus and are much more efficient

Mgmt 481


The manager as a leader l.jpg
The Manager as a Leader

Must decide how to influence and motivate members

  • Goal Setting

    • Balance of individual’s goal and organizational goal

  • Will you have management hierarchy or team approach?

  • How will you manage your company?

  • How will you balance the workload?

  • Your peers will evaluate your leadership ability in both a public and confidential manner

  • How will you motivate under performing members?

Mgmt 481


The manager as a controller l.jpg
The Manager as a Controller

Must deal with issues of control

  • Must establish a reporting system

  • Must develop performance standards

  • Must monitor key performance parameters and take corrective steps if necessary

  • Must know the breakeven points for the manufactured product

Mgmt 481


The business environment l.jpg
The Business Environment

  • All companies start from identical point

  • All companies manufacture identical products

  • Manufacturing process consists of forming raw material (components) into finished consumer product

  • Produce a commodity => No customer or brand loyalty => you must “earn” each quarters sales

Mgmt 481


Company publicly held l.jpg
Company publicly held

  • Company is in start-up position – only one quarter’s (Quarter 0) info is available

  • John & Emily Anderscott developed business but as limited partners not allowed to perform any management duties

  • You will deliver reports to the board of directors

  • Initially no difference exists between you and your competitors’ products

    • This will change as you modify promotion, pricing, and product improvements

Mgmt 481


The simulation environment l.jpg
The Simulation Environment

  • Each decision period is 3 months (1 quarter)

  • Teams make approximately 50 - 100 decisions per Qtr

    Three stages:

  • Forecasting Stage:

    • Test “what-if” and modify decisions until have best case

  • Processing Stage:

    • Administrator accesses decisions of ALL companies to determine market share allocations and individual company profitability

  • Results Stage:

    • Teams analyze actual versus forecasted performance. Use this analysis to forecast next quarter.

Mgmt 481


To do l.jpg
To Do:

  • Read in detail the summary and study the decisions and reports and get familiar with the software.

  • Decide on Company name, organizational structure, individual job titles and responsibilities.

  • Begin to develop a mission statement & strategy, areas of responsibility, and duties

Mgmt 481


My role l.jpg
My Role

  • I will be your

    • Banker

    • Board of Directors

    • Regulatory Advisor

    • Union President

    • And other roles as necessary

Mgmt 481


As administrator i can control l.jpg
As Administrator I Can Control

  • Economic variables (industry demand, costs, and weightings of performance variables)

  • Introduction of management dilemmas

  • The amount and availability of loans and mortgages

  • Frequency and Amount of fines (lost passwords, late submissions, failure to get proper prior approvals, etc.)

  • Introduce “External Substitute” products. If everybody takes a low promotion strategy I can introduce external substitutes which creates a loss of demand for ALL companies.

Mgmt 481


Marking scheme l.jpg
Marking Scheme

Variety of methods to assign marks

  • Team performance

  • The Strategic Plan (See Assignment 1)

  • Industry Analysis paper (See Assignment 2)

  • Presentation of Company strategy & performance (last week of classes)

  • Team assignments (log book, periodic reports, etc.)

  • Joint Peer evaluation and division of points

Mgmt 481


ad