Simulation

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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


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