Capsim Test
How much do segment prices fall each year?
$0.50
If a product's Price was $20, its Material $8, and its Labor $7, the Margin Per Unit would be:
$5
Adding one additional unit of capacity costs
$6 + ($4 x Automation Level).
What percentage of the entire market segment does Low End make up for?
11%
Inventory Carrying Cost is ___% of the average cost of production
12
Inventory Carrying Cost is ___% of the average cost of production.
12
If you want to add 500,000 units of capacity to an assembly line with an automation rating of 5, how much will it cost? (Hint: $6 for floor space and $4 times automation level.)
13,000,000 (MAYBE!!!)
If your short-term interest rate is 12.1%, then your bond rate is:
13.5%
At which point does the perceived age of a traditional product peak?
2
How much awareness is created by the $250,000 promotion fee when a new product is invented?
25% (MAYBE!!!)
The traditional market segment makes up what percentage of sales, in dollars?
32%
Products must plot within ______ units from the center of the circle on the Perceptual Map to survive the rough cut
4.0
Products must plot within ______ units from the center of the circle on the Perceptual Map to survive the rough cut.
4.0
If a line has a capacity of 100,000 units, the cost of changing the automation level 1 unit either up or down is
400,000
What is the size of the plant at the start of the simulation?
5 assembly lines with space to add 3 more
In the Capstone® simulation, what are the components of a product's material cost?
Reliability component cost and positioning component cost
Two questions that dominate customers' thinking are:
Size and Performance.
What is one draw-back of increasing automation?
The product requires Increased time/expense for subsequent short-move repositioning.
When a segment's product demand outstrips supply
products lose 20% for each dollar above or below the segment guideline.
Customers go through a two-stage buying process: The Rough Cut and the Fine Cut. In the Rough Cut, buyers focus on four product characteristics. Which one of the following is NOT one of these four product characteristics?
quality
How much does it cost for MTBF per 1,000 hours of reliability?
$0.30
How is performance scaled?
0 (low performance) to 20 (high performance)
If a product's Price was $20, its Material $8, and its Labor $7, the Margin Per Unit would be
5 dollars
Assuming no additional product promotion, what percent of customers, reached through last year's marketing campaign will carry over into the current year?
67%
Once you upload your official decisions during a round, how many times can you change them before the end of the round?
as many times as you want
The promotion budget affects:
awareness
Which three factors drive labor cost?
b, c, d
Where is proximity to the Ideal Spot particularly important?
in high technology segments
Which market segment places the most importance on reliability?
Performance
The two characteristics that the perceptual map evaluates are
Performance and Size
What is the most important criteria to a "High End Segment" customer?
Positioning
What is the minimum amount of time that it takes to create a new product?
1 year
Which Automation rating requires the longest time to reposition a product?
10
The Finance Department can use which of the following methods to acquire capital for company activities?
Current Debt, Stock Issues, Bond Issues and Profits
Increasing performance and shrinking size does what to the material cost?
Increases
Marketing is concerned with 4 things. What are they?
Price, Place, Promotion, and Product
R&D completion time depends on
a, b, and c.
When a segment's product demand outstrips Supply
both c and d
Capacity is sold by
entering a negative number in the Buy/Sell row on the Production Spreadsheet.
Changing MTBF will:
have no impact on perceived age
A change in MTBF affects:
material cost
If your team decides to introduce a new product, when should capacity and automation be purchased?
one round pior to product release
If a product's Automation rating is substantially increased, it will:
take longer to move the product across the Perceptual Map.
You are charged a ______ brokerage fee to issue bonds and ______ brokerage fee if you retire bonds prior to their maturation date.
5%; 1.5%
Emergency loans are made at what rate over the normal Current Debt interest rate?
7.5%
Teams can produce up to ______ products
8
The Perceptual Map is
A marketing tool used to compare products against customer perceptions
What are the drivers of Material Costs?
All of the above
What effects do Process Management Initiatives have?
All of the above
Which of the following are not considered in the Fine Cut?
Automation
In Capstone©, pricing standards are set by:
Customers (Market Segments)
What is a market segment?
Group of customers with similar purchasing concerns
Which customer group or market segment seeks cutting edge technology in both size and performance?
High End customers
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 only need to create 33% new awareness to maintain 100% this year
If you purchase production capacity and automation:
It is available in the next year
What happens to a product's Perceived Age when it is repositioned in R&D?
It is reduced by 50%.
When tracking market segments on the performance and size perceptual map, which segment moves or "drifts" the slowest?
Low
Which customer group or market segment seeks proven products, are indifferent to technological sophistication, and are price motivated?
Low End customers
Which customer group or market segment seeks high reliability, advanced technology products that emphasize high performance?
Performance customers
If you are marketing to High End customers, which criteria is most important to them in order of importance?
Positioning, Age, MTBF, Price
What is the most important criteria to a "Low End Segment" customer?
Price
Which product attribute do Low End customers value the most?
Price
The economic environment for this simulation game will include
a favorable environment featuring modest growth, low inflation, and reasonable interest rates
What are the three effects of an increase in Automation?
a, c, d
If your company has a sales budget of $3 million and drops it to zero
accessibility drops to 0% in three years
How is the strength of the sales channel measured?
accessibility on a scale from 0 to 100%
How can assembly lines double their output?
add a second shift
R&D projects can drive a product's:
all of the above.
How can R&D time be reduced? By:
budgeting money to quality initiatives
What happens to a company when its debt-to-assets ratio increases?
c, d
Fast-moving, high tech segments tend to favor:
capacity over increased automation
An increase in promotional budgets have:
decreasing returns over time
When a product is moved to a new location on the Perceptual Map, the Perceived Age (or Age) is:
divided in half
Over time, the segments will drift in which direction on the Perceptual Map?
down, right
The Ideal Spot
drifts at same pace as the segment
The Traditional ideal spot is
near the center of the circle
In order to achieve 100% accessibility, a team must:
have two products in the same segment
Increasing a product's reliability will result in which of the following changes to production costs?
higher material costs
When an R&D effort started in 2001 completes on September 15, 2002, the product revision kicks in
immediately upon completion
Pricing plays a role
in the rough cut stage of the purchase decision, in the fine cut stage of the purchase decision
Budgeting money to Quality initiative will lead to these outcomes except:
increase Labor Costs
Within the process management initiatives, channel support systems
increase the effectiveness of the sales budget and therefore demand.
Repositioning moves a product on the Perceptual Map from its old location to a new one. When does the new location become active?
the day the r and d project completes
When plotting the segment locations for each round
the goal is to determine the ideal spot location for each segment during the 8 years.
The higher a company's automation level
the lower a company's labor costs
The higher a company's automation level,
the lower a company's labor costs
Maximum issue is
the upper limit in thousands of dollars that teams can issue in stock each year.
What section of the perceptual map is considered ideal for the low end segment?
upper left
Labor costs are driven by three factors
wage and benefit rates, automation levels, and second shift.
Labor costs are driven by three factors:
wage and benefit rates, automation levels, and second shift.
