CapSim Exam
How do you discontinue a sensor?
Sell all of the capacity for the sensor.
What is the "fine cut circle" on a perceptual map?
Solid inner circle that defines the heart of the segment. Customers prefer products in this circle.
What is on the Stock and Bond Summaries in the Capstone Courier?
Stock price and bond ratings, as well as interest rate for the next year.
If a company with low automation wanted to invest in a single area that exclusively lowers labor costs, they would select: A. QIT (Quality Initiative Training) B. Concurrent Engineering C. Vendor/JIT (Just in Time [Inventory])
A
Worker training is entered by the A. Hour B. Dollar
A
What is the Finance Department Primarily concerned with?
Acquiring capital, establishing a dividend policy, setting accounts payable and receivable policies, driving financial structure of the firm, and selecting and monitoring performance measures.
Which two buying criteria remain the same over time?
Age and MTBF
T/F? A product will never be too old or too young to be considered for purchase.
True
T/F? Project lengths will increase when the company puts two or more products into R&D at the same time.
True
Distributors are A. support staff for the outside sales force B. a separate Sales channel C. Original Equipment Manufacturers
B
Each additional advertisement increases customer Awareness by the same amount of the first A. True B. False
B
In the Sales Budget Resource, the outside sales force meets with customers face-to-face. The cost of each salesperson includes which of the following? A. Salary and Wardrobe B. Commission and Support C. Travel and Brochures
B
Increasing Capacity tends to A. reduce the Needed Complement B. reduce the number of workers on Second Shift C. reduce Overtime
B
Investing in the same TQM Initiative round after round will create A. ever increasing returns B. diminishing returns C. the same amount of return
B
Management should strive to A. increase Turnover B. decrease Turnover
B
Product prices are set on the Marketing Budget Detail spreadsheet A. True B. False
B
Recruiting Costs are incurred when A. Automation levels increase B. Production runs increase and teams match hiring to Needed Complement C. workers are assigned to a Second Shift
B
Suppose workers earn $20.00 in the current contract. There are only two teams, Andrews and Baldwin. Labor demands $22.00. Andrews gives its negotiators a range of $23.00 to $25.00. Baldwin gives its negotiators a range of $20.20 to $22.20. Will Labor strike: A. Andrews B. Baldwin C. Both D. Neither
B
True or False: Generally speaking, a team with high levels of automation would be inclined to Make a "low ball" offer to the unions in order to further lower costs. A. True B. False
B
Which team(s) does labor see the opening offers from? A. One team B. All teams C. Two teams D. Only your team
B
Which two buying criteria change over time?
Price and Positioning
What are the four buying criteria of the customers?
Price, Age, MTBF, and Positioning.
Functions of the Marketing department
Prices and promotes products, interacts with customers via its sales force and distribution system. Also responsible for sales forecasts.
Proformas
Projections for the upcoming year.
What are the four main departments/functional areas?
R&D, Marketing, Production, Finance
How many units is the rough cut circle?
Radius of 4 units.
Customer Survey Score
Reflects how well a product meets its segment's buying criteria, calculated 12 times a year.
As a general rule, stock issues are used to fund long term investments in ______ and ______
capacity, automation
In the Promotion Budget Resource, teams can select which of the following media areas A. Print Media and Direct Mail B. Email and Telephone Contact C. Trade and Road Shows D. Web Media and Television
A
The TQM report can be accessed from A. The Capstone(r) Courier B. The Decisions menu.
A
Each inside salesperson costs $50,000. A. True B. False
A
Hiring the Needed Complement will always eliminate A. Overtime B. worker layoffs C. a Second Shift D. strikes
A
Teams can eliminate all Recruiting Costs if they wish A. True B. False
B
The Target Segment selection lets teams move their products from one location on the Perceptual Map to another A. True B. False
B
There are two teams, Andrews and Baldwin. As a result of an earlier labor negotiation, Andrews workers earn $20.00. Baldwin workers earn $22.00. What will Labor demand? A. Andrews $22.00. Baldwin $24.20. B. Andrews $24.20. Baldwin $24.20. C. Andrews $24.20. Baldwin $22.00. D. Andrews $24.00. Baldwin $24.00 E. None of the above.
B
True or False: The new contract that you negotiate with Labor will take affect starting January 1st of the year the contract is renegotiated. A. True B. False
B
Assuming the Productivity Index is greater than 100%, adding Overtime will A. increase the Productivity Index B. decrease the Productivity Index
B
Annual Reports
Results from the previous year.
In which section would you place the worst and best case scenarios, respectively?
Forecasting, production.
How much of a range does each segment have for MTBF?
5,000 hours
By what percentage do labor costs fall at an automation rating of 10?
90%
As a general rule, companies fund short term assets like _____ _____ and _____ with current debt offered by banks.
Accounts receivable, inventory
Describe score reductions in the rough cut circle.
1/2 across the rough cut circle, scores drop 50%, Scores drop 99% for products that are almost to the edge.
What is the cost of holding inventory?
12% of the cost to produce the unit
What is the radius of the Fine Cut Circle?
2.5 unites.
Products with an MTBF 1,000 hours below the segment's guideline lose about _____% of their customer survey score.
20
How much do material costs increase for every additional 1,000 hours of reliability?
$0.30
How much do prices drop each year?
$0.50
What is distance between low and high preferred prices?
$10.00
How much does it cost to raise automation by 1 level?
$4.00 for each unit of capacity.
How much does each new unit of capacity cost?
$6.00 for floor space + $4.00(automation rating).
What are the lowest and highest automation levels, respectively.
1, 10
Re positioning products cuts the perceived age of the product by ____.
1/2
Mean Time Before Failure
A rating of reliability measure in hours.
What is on the first page of the courier?
A snapshot of last year's results
Generally, Separation Costs will be incurred when A. Production levels increase B. Automation Levels increase C. Production Levels decrease D. Production levels decrease and / or Automation levels increase
D
Increasing Training Hours tends to A. increase the Needed Complement B. decrease the Needed Complement C. neither increase nor decrease the Needed Complement D. both increase and decrease the Needed Complement
D
What is the "rough cut circle" on a perceptual map?
Dashed outer circle that defines the outer limit of the segment.
What determines a product's level of awareness?
Its promotion budget
Ideal Spot
The point in the heart of the segment where, all other things being equal, demand is the highest.
What does a perceptual map show?
The positioning of a product.
When should you buy automation and capacity for a new product?
The year prior to the product's revision date.
Sensors priced $1.00 above or below the segment guidelines lose about _____% of their customer survey score.
20
The Marketing Budget Detail asks teams to determine budgets by A. Product B. Segment C. Both
C
What does the financial summary page cover in the Capstone Courier?
Each company's cash flow, balance sheet, and income statements.
What are the six basic strategies?
Broad cost leader, broad differentiator, niche cost leader, niche differentiator, cost leader w/ product lifecycle focus, and differentiator with product lifecycle focus.
According to the S-Shaped curve, diminishing returns for a single year budget become noticeable at A. $1,000,000 B. $1,500,000 C. $2,000,000
C
Each market segment responds to different types of media (e.g. print, direct mail, etc.) to a varying degree. It follows then that each product must be identified with its target segment. Product target segments are identified by A. their placement on the Perceptual Map B. entering their status on the Pricing and Forecasting spreadsheet C. entering the target segment on the Marketing Budget Detail
C
Production runs can be scheduled in A. only one shift B. always two shifts C. one or two shifts D. up to three shifts
C
The exact outcome of TQM efforts appear on the TQM Report, and as bar charts on the TQM spreadsheet. These results are for A. the previous round only B. the upcoming round only C. cumulative for the previous and all remaining rounds (assuming no additional investment is made)
C
The maximum length of a strike is: A. 4 weeks B. 8 weeks C. 12 weeks D. 16 weeks
C
As a general rule, bond issues are used to fund long term investments in ______ and ______.
Capacity, automation
Decision Audit
Complete trail of all team decisions. It will help identify your decision-making strengths and weaknesses.
Functions of the R&D department
Designs the product line, needs to invent and revise products according to customer's needs.
What does the Production analysis report in the Capstone Courier?
Detailed information about each product in the market, including sales and inventory, price, material and labor costs.
What does the Market Share report in the Capstone Courier?
Details sales volume in all segments, reporting potential and actual sales.
Functions of the Production department
Determines how many unites will be manufactured during the year, also responsible for buying and selling production lines.
In the current contract, the workers wage rate is $20.00. Which of the following negotiation ranges would be outside the rules? A. $18.00 to $18.00 B. $15.60 to $16.80 C. $30.20 to $32.20 D. $30.00 to $32.00 E. Both B and C would be outside the rules.
E
What does the segment analysis report in the Capstone Courier?
Each market segment in detail. Includes ideal position, price, age, and reliability. This section also includes the customer survey scores for each company for each segment.
Capstone Courier
Extensive year end report of the sensor industry. Includes customer buying patterns, product positioning, and public financial records.
What determines a product's segment accessibility?
Its sales budget.
When is last year's current debt payed off?
January 1st
What is the basic forecasting method?
Last ear's sales * market growth
Assests = ____ + _____
Liabilities + Equities
Functions of the Finance department
Makes sure the company has the financial resources it needs to run through the year,can raise money via one-year bank notes, 10-year bonds, or stock issues.
Should the benchmark forecast be used to forecast how many units to product?
No.
Industry Conditions Report
Outlines the beginning business environment, including customer buying criteria.
In general, what direction do market segments drift on the perceptual map over time?
Toward the bottom left corner. (Lower Size, Higher Performance)
What are the five industry segments?
Traditional, Low End, High End, Performance, Size