Simulation
Inside each fine cut circle,_____________.
segments have an ideal spot where demand is at its highest
Age, price and ___________ criteria remain constant from year to year.
reliability
According to the S-Shaped curve, diminishing returns for a single year budget become significant at
$750,000
What is the minimum amount of time that it takes to invent a new sensor?
1 year at least
When a segment's product supply exceeds demand, how much appeal, to the customer, will a product priced $1 above or below the segment price range lose?
10%
If your short-term interest rate (the rate on your current debt) is 12.1%, then your bond rate (the rate on your long-term debt) is:
13.5% (1.4% higher than the current debt rate)
Based on the example in the Student Guide, what additional awareness does a promotion budget of $1,500,000 buy?
36%
Assuming no additional product promotion, what percent of customers, reached through last year's marketing campaign will carry over into the current year?
67%
What is a market segment?
A group of customers with similar purchasing concerns
Which financial obligation is best satisfied with Current Debt?
Accounts Payable
Which of the following are not considered in the Fine Cut?
Automation
The Finance Department can use which of the following methods to acquire capital for company activities?
Current Debt, Stock Issues, Bond Issues and Profits
The 2 market segments learned in the Foundation® are the following:
High Tech and Low Tech
What's the measure for product reliability?
How long a product is expected to function
If the previous year you reached 100% customer awareness in your company, this year what will you need to do to maintain this level?
I would scale back promotional expenditures to about $1,400,000 to maintain awareness
Which market segment places the most importance on price?
Low Tech
At the beginning of the simulation, how many assembly lines are there?
One line per company
If you or your team decides to introduce a new sensor product, when should capacity and automation be purchased?
One round prior to product release
Hiring the Needed Complement will always eliminate
Overtime
Which financial obligation is best satisfied with Bond Issues?
Paying for increased production capacity
If you are marketing to High Tech customers, which criteria are most important to them in order of importance?
Positioning, Age, Price, MTBF
Generally, Separation Costs will be incurred when
Production levels decrease and / or Automation levels increase
Recruiting Costs are incurred when
Production runs increase and teams match hiring to Needed Complement
If a company with low automation wanted to invest in a single area that exclusively lowers labor costs, they would select:
QIT (Quality Initiative Training)
How much do segment prices fall each year?
Segment price changes vary depending upon relative market demand
The TQM report can be accessed from
The Foundation FastTrack
When the practice rounds are over (both individual and team) the simulation will be reset so that real competition can begin among the teams. Each management team will take the reins of...
a $40 million company with 1 product
The relationship between promotion and sales budgets and sensor sales is generally...
a direct one
If your company has a sales budget of $3 million and drops it to zero, in that year...
accessibility will drop by one third
A firm's bond rating slips by 1 category for each ______ in interest.
additional 0.5%
Capital needed for company activities cannot be acquired through:
arbitrarily firing employees
The promotion budget affects:
awareness
ncreasing Training Hours tends to
both increase and decrease the Needed Complement
The exact outcome of TQM efforts appear on the TQM Report, and as bar charts on the TQM spreadsheet. These results are for
cumulative for the previous and all remaining rounds (assuming no additional investment is made)
Management should strive to
decrease Turnover
Assuming the Productivity Index is greater than 100%, adding Overtime will
decrease the Productivity Index
Investing in the same TQM Initiative round after round will create
diminishing returns
An increase in promotional budgets has:
diminishing returns become apparent at $2 million
Teams can eliminate all Recruiting Costs if they wish
false
In a seller's market even pathetic products are snapped up by desperate buyers because...
first shift capacity plus second shift capacity are less than total segment demand
If you sell all of the capacity on a production line, inventory from that line is sold at...
half the average cost of production
In order to achieve 100% accessibility, a team must:
have two products in the same segment
Worker training is entered by the
hour
If you purchase production capacity and automation:
it is available in the next year
A change in MTBF affects:
material cost
The Low segment's ideal spot is _______________________.
near the center of its circle
Production runs can be scheduled in
one or two shifts
Which one of the following is NOT one of the four product characteristics that R&D can set?
quality
Increasing Capacity tends to
reduce the number of workers on the Second Shift
How can assembly lines double their capacity?
Add a second shift
Last year your company built 1,500,000 units of product Able and sold 1,405,000 After 14 months in R&D, a revision of product Able is due out tomorrow, on January 2 (the first business day of this year) What will happen to the unsold inventory of 95,000 units of "old" product Able?
they'll be reworked to match the new specifications for product Able