Capacity per unit costs $6.00 for floor space plus $4.00 times the automation rating in that segment. $6,000 in the box is a $6 million investment. Make it rain in the earlier rounds by investing heavily in product invention, capacity, and automation, because it takes money to make money. Through repeated simulations, we have found that the best choice for recruiting spending is $2000 and training hours is 25 hours. And this is where the Capsim secret comes in handy. Use the formulas below to calculate the cost to double capacity and the cost to raise automation to 10.0. For instance, if my team wanted to keep each product in its ideal spot with the R&D taking up to but not exceeding a year, whats the max automation level per product line given a drift numbers like these ? Cost to Double Capacity = First Shift Capacity * [$6 + ($4 * Automation Level)] Cost to Increase Automation to 10.0 = First Shift Capacity * [$4 * (10 - Automation Level)] ━━━━━━━━━━━━━ **Have you seen our other videos on CAPSIM? to get a solid idea of time loss and costs associated with your physical operations. The production manager repeats this process for product Acre entering 100 in the capacity box and changing 5.0 to 5.5 in the automation box. Use the formulas below to calculate the cost to double capacity and the cost to raise automation to 10.0. The Capsim Simulation has changed since this article was originally published in the summer of 2012. Use the formulas below to calculate the cost to double capacity and the cost to raise automation to 10.0. The manager then increases automation from 4.0 to 4.5 in the automation box. Contrary, Capsim is quite different from the real world. Automation Next Round from the Production Analysis into the Automation Level column. Here Are The Answers To Capsim FAQs MBA Students Ask About Capsim Simulation Game Q 1 How to win Capsim? Cost to Double Capacity = First Shift Capacity * [$6 + ($4 * Automation Level)] Cost to Increase Automation to 10.0 = First Shift Capacity * 180% plant utilization is perfect for … Each new unit of capacity costs $6.00 for the floor space plus $4.00 multiplied by the automation rating. However, the Capsim game comes with eight rounds. With that in mind, the Long Term Debt principal won’t be repaid for the duration of the games eight rounds. Invest in automation, not capacity, to lower your labour costs. So if you expect sales to increase by 18% next year, buy 20% more capacity. Please Leave a LIKE, COMMENT and SUBSCRIBE! The Long Term Debt in the Capstone simulation requires payment after ten years. The simulation calculates within the investment box $6,000 for Able. Automation may not always be able to help here, but in some cases, entire software systems may be replaceable by automation software. Automation is expensive: At $4.00 per point of automation, raising automation from 1.0 to 10.0 costs $36.00 per unit of capacity; As you raise automation, it becomes increasingly difficult for R&D to reposition products short distances on the Perceptual Map. Automation Level column. We start the Human Resource Module in the second round of the computer simulation. Increases in capacity require a full year to take effect– increase it this year, use it next year. Let's say your automation rating in the Traditional Segment is 4.0. Given TQM turned off is there an equation to use to calculate the impact of R&D on automation? Calculate the average cost of any machine breakdowns (cost to replace parts, cost to refund customers, etc.) The Production spreadsheet will calculate the cost and display it for you. THANK YOU SO MUCH FOR WATCHING! 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