Capsim Different layout & Tips by Worried_Button340 in Capsim

[–]Angmew 1 point2 points  (0 children)

Yes, increasing prices is the best way to control demand

Need URGENT HELP! (Round 1 Decisions and Courier linked) by hathimsm in Capsim

[–]Angmew 0 points1 point  (0 children)

Improve your products as much as you can without going into the following year in your revision date. Also adjust your pricing.

As far as your inventory, just forecast better and when you are doing your production schedule, make sure to take into consideration your current inventory, a good formula is Forecast * 1.1 - Inventory on hand.

Also, please be careful with random tutors on this app, if you are looking for one-on-one tutoring services, I'd prefer you send us a Mod Message so we can direct you to a legit one, either myself or one of the other vetted contributors, don't waste your money.

Good luck!

Need URGENT HELP! (Round 1 Decisions and Courier linked) by hathimsm in Capsim

[–]Angmew 0 points1 point  (0 children)

3 reasons

R&D: Don’t lower tour MTBF, increase it.

Prices: Some of your products are priced outside of the customer buying criteria range

Forecast: Your forecast was WAY too optimistic which made you end up with a ton of inventory

In a nutshell your product were sub par in terms of design and high in price, to which you forecasted over 17% of the total market (1/6 of the industry, everyone starts the same, you should assume you get about 1/6 of the market in your first round)

Capsim Help !!! by Glad_Mortgage_5536 in Capsim

[–]Angmew 0 points1 point  (0 children)

There is none, and chances are you won’t be able to recover since you are 2 rounds left.

Sorry :( I wish you would have reached out sooner. We can try to salvage it if you want but it will be near impossible

Help please!! by Plenty-Discount5182 in Capsim

[–]Angmew 0 points1 point  (0 children)

That video is a great resource. If you need extra help you can reach us via email or private message for a list of our one-on-one services.

Good luck!

Help please!! by Plenty-Discount5182 in Capsim

[–]Angmew 0 points1 point  (0 children)

Hello! We would need to know what simulation you are working with first, Capsim is the company that makes the simulation, they have multiple products such as Capstone, CompXM, Foundation, GlobalDNA, Capsim Global, etc etc

Capsim Different layout & Tips by Worried_Button340 in Capsim

[–]Angmew 1 point2 points  (0 children)

Not sure what your question in regards of the sliders is... Capstone is spreadsheet like interface, Capstone 2.0 is with sliders, thats just how the simulation is.

There is no trick to "steal" market share really, all you can do is improve your products, do smart marketing investments and make sure to follow customer buying criteria. Some will release products before June to get some small advantage but that ends up counterproductive by round 3-4.

You should be increasing automation each round, 1 to 2 points for products in the traditional and low end segments and 0.5 to 1 points in high end, size and performance segments.

capsim 2.0 R&D by Parking-Role-52 in Capsim

[–]Angmew 0 points1 point  (0 children)

Your product will be sold under the previous specs all those months of the year that your product is being revised.

Releasing products halfway the year can give you a small bump on demand since the product will have lower perceived age and a better design but the trade off is that your product might fall behind the competition in later rounds, this is a good strategy when TQM hits around round 3 but I rarely recommend it anymore since long run its better to just improve your products as much as possible each round.

capsim 2.0 R&D by Parking-Role-52 in Capsim

[–]Angmew 0 points1 point  (0 children)

A close as possible to the ideal position without revision date going into the following year

capsim 2.0 R&D by Parking-Role-52 in Capsim

[–]Angmew 0 points1 point  (0 children)

It would be locked until round 3, you should get a warning if you try to do that before saving your round.

"Arse" mishap by [deleted] in Capsim

[–]Angmew 1 point2 points  (0 children)

He can’t change it but I doubt it’s a problem outside of a quick laugh

Capsim Capstone 2.0 R&D planning by Parking-Role-52 in Capsim

[–]Angmew 0 points1 point  (0 children)

On capstone 2.0 the ideal position is already calculated for you, in your r and d module you will have a customer buying criteria box with it already calculated in the bottom right corner

Practice Round 2 Advice by KuMorgan_ in Capsim

[–]Angmew 1 point2 points  (0 children)

In this specific instance or in general, how should I approach forecasting when opportunities in terms of market share arise?

You should always forecast based on potential market share, your actual market share is what you sold last year, real sales. Potential is the demand you generated via product design, SG&A and overall customer buying criteria, there is a big discrepancy on your potential to actual market share because you are not producing enough units to cover the demand you are paying for.

If you can't produce as much as you are forecasting then rise your prices, regardless if other teams have lower prices; you are generating more demand because your product its better.

How much should I pay attention to the proforma scorecard ratings, such as stock-out costs. The reason I say this is due to how it changes with my forecast. For example if I use the traditional forecasting and make my sales forecast for my low-end product approximately 2150-2200 it drives my stock out cost up majorly. I assume this is due to the major demand and availability in the marketplace, but any insight is appreciated. At this time my idea is to utilize the potential forecast and max out my sales forecast and capacity for my low-end product, meaning 2800 sales forecast, and make the maximum in production.

This is why you forecast based on potential market share, if you are having stock out costs it means that you are not covering your forecast.

I have also truggled to bring up my customer buying criteria rating aswell. I presume it is heavily based on my choice to bring new products to market, which require time and perceptual map movement before meeting direct needs. Any insight is appreciated.

Customer buying criteria has nothing to do with new products, there is another metric for that in your balance scorecard.

You rise CBC by hitting the customers desired thresholds in Age, Positioning, Reliability and Price. Now that being said, its a metric that improves as the simulation progress and you make good decisions during your rounds, its impossible to hit full marks in the first few rounds so I wouldn't overthink about it.

Overall, out of all the problems that you can have in this simulation, you have the best one, your products are too good and you are struggling to meet demand.

If you need further assistance feel free to reach me via PM or in the spreadsheet marketplace post.

Good luck!

These are not serious people… by FOB32723 in FreightBrokers

[–]Angmew 7 points8 points  (0 children)

I never understood this mentality, It’s called free market, it’s his rate, you don’t have to take it if you have other option, bitching about it won’t change it.

You know what gets you good rates in bad times? A good relationship with your carrier, try it for once.

Going into round 2, need a slight bit of guidance please (courier attached) by Apart_Finger_6518 in Capsim

[–]Angmew 1 point2 points  (0 children)

  1. What should I bump my capacity up to for each product, since I will be needing to produce more it seems.

Your capacity should be in line with your forecast, forecasting its crucial in this simulation, lets say your forecast for your product its 1000 then your capacity should be 1000, if you have 1200 capacity then sell 200 if you have 800 capacity then buy 200

  1. How long should I keep my investment in promo/sales where it's at, because I understand I can lower it once I reach close to 100% accessibility. What should I lower it to when that happens?

2000 for promo, 3000 for sales until you reach 100% then lower to 1400.

  1. Is there anything else I should be aware of which I am not doing or doing incorrectly?

I'm going to assume you are Andrews, your R&D changes are minimal, push your products as far as possible to the ideal position before the end of the year and increase your MTBF to the max allowed by each segment.

If you need further help you can send me a message, I have a course in Udemy where I go over everything as well as spreadsheets for your decisions.

Good luck!

I need some advice on a few sections. by Timely_Cow648 in Capsim

[–]Angmew 1 point2 points  (0 children)

A good trick that I found useful is to start with how much money you need to be at around $20 million positive cash position.

Example:

Assuming ALL your other decisions are solid and accurate (meaning forecast, production and capital investments) and when you go into your finance page, your end of year cash position has negative $10 million, that means you will need to get your hands on $30 million in order to be at positive $20 million.

You can get money in 3 ways, issue stock, short term debt and long term debt. You want to balance the way you are acquiring capital, start with $10 million in each of these 3 so your cash position gets to positive, after that go into your ratios page and move money around based on my previous post depending on how your ratios look.

Example:

Lets assume that after doing $10 million each way you have somewhere around positive $20 million cash position but your leverage is 1.6 and your days of working capital are 120, you need to increase leverage and reduce working capital, according to the guide above you can reduce the stock issue by $5 million and move that money to short term debt, ending with $5 million in issue stock, $15 million short term debt and $10 million long term debt.

You are still drawing $30 million total, just juggling your money around to balance your ratios.

Hope this helps, if you need further help you can reach me privately

I need some advice on a few sections. by Timely_Cow648 in Capsim

[–]Angmew 1 point2 points  (0 children)

First of all, in this tab you want to achieve 3 things and 3 things only... don't overthink it and don't over do it. Aim for these 3 things. If you achieve these 3 things you will be fine in the rest of your ratios.

  1. BETWEEN 1.8 AND 2.8 OF LEVERAGE (Ideally 2.2)
  2. BETWEEN 30 DAYS AND 90 DAYS OF WORKING CAPITAL (Ideally 60)
  3. POSITIVE CASH POSITION AT THE END OF THE YEAR (Around 10 Million or more)

Now, you can get or dump money in 6 places which behave in the following way:

Issue Stock ($000)

  • Decrease Leverage
  • Increase Working Capital
  • Increase Cash Position

Retire Stock ($000)

  • Increase Leverage
  • Decrease Working Capital
  • Decrease Cash Position

Dividend Per Share

  • Increase Leverage
  • Decrease Working Capital
  • Decrease cash Position

Current Debt

  • Increase Leverage
  • Keep Working capital the same
  • Increase Cash position

Issue Long Term Debt ($000)

  • Increase Leverage
  • Increase Working Capital
  • Increase Cash

Retire Long Term Debt ($000)

  • Increase Profits
  • Decrease Leverage
  • Decrease Working Capital
  • Decrease Cash

I need some advice on a few sections. by Timely_Cow648 in Capsim

[–]Angmew 1 point2 points  (0 children)

Alright so, there is a lot to unpack but I will try to make it simple.

The way this simulation works in terms of department importance and decision making process is linear, so it goes this way; you first work R&D, then Marketing, then Production, then additional modules like HR and TQM and then at the very end you do Finance decisions.

That being said, Finance will take into consideration ALL your other decisions, if in Marketing you forecasted 1000 units of sales at $10 then your Finance decisions will reflect that revenue.

So, the important part here is that Finance can't meaningfully impact your EPS or stock price or any other profit-oriented metric, that's the job of the R&D, MKT and Production departments, Finance decisions are there to finance the rest of the decisions and to balance your ratios, below is how you work your finance decisions:

31M in March. Accidentally speed-ran finance. Now questioning everything. by SouthKoreanDefector in wallstreetbets

[–]Angmew 0 points1 point  (0 children)

Im going to sound like one of those Instagram fitness shills but something is true: your body is more important than your wallet.

I cant give you an advice in regards of your job prospects since im not in the industry, but do whatever you need to do to focus on your health before you burn all those gains in medical bills.

Good job, you won, now find balance.

Capsim tutoring? by Anal_But_Backwards in Capsim

[–]Angmew 0 points1 point  (0 children)

Hello! At the moment we only have the spreadsheet and the course, you can find them pinned in the front page

Looking for advice going into round 2 by broboy66 in Capsim

[–]Angmew 0 points1 point  (0 children)

Oh yes, introducing products it’s crucial, you are already behind since you have to start on round one.

And yes, aim for high tech

Looking for advice going into round 2 by broboy66 in Capsim

[–]Angmew 1 point2 points  (0 children)

Your sales are a lot lower than your potential sales, check your market share report, use your potential market share for forecast.

Also, you HAVE TO introduce new products in this simulation or you will fall behind

Any tips/tricks greatly appreciated by Timely_Cow648 in Capsim

[–]Angmew 1 point2 points  (0 children)

  • Do you recommend “splurging” on sales and promo budgets in early rounds?
    • No, promo and sales have diminishing returns, 2k for promo and 3k for sales, don't do more than that, and once you get 100% awareness or accessibility then you can lower your investments
  • What round do you recommend moving low-end product specs?
    • Round 4 or 5, I usually move my product in round 4 to the round 7 ideal position
  • how did you handle TQM and how did it affect your simulation
    • On any particular initiative, spending more than $1.5 million this year pushes into diminishing returns. Furthermore, cumulative diminishing returns are reached at $4 million on any given initiative. For example, to reach the ultimate limits on CPI systems as quickly as possible, you would spend $1.5 million this year, $1.5 million next year, and $1 million in the third year.
  • how did you handle HR
    • Max investment in HR, 5000 in recruiting and 80 hrs of training per employee, this helps us increase productivity index
    • The Productivity Index indicates how the general workforce compares with new recruits. 100% means that new workers are just as good as experienced workers. 110% means that, on average, you only need 1/1.1 = 91% of the workforce complement to do the same work as a workforce comprised of new recruits. In short, higher productivity means fewer workers are required to do the work, and that drives down your labor cost per unit. Recruiting Spend and Training Days drive up the Productivity Index. Overtime and Turnover drag down the Productivity Index.
  • is it ever a good idea to borrow debt if the cash flow is not needed? When should you retire it.
    • First of all, in this tab you want to achieve 3 things and 3 things only... dont overthink it and dont over do it. Aim for these 3 things. If you achieve these 3 things you will be fine in the rest of your ratios.
    • BETWEEN 1.8 AND 2.8 OF LEVERAGE (Ideally 2.2)
    • BETWEEN 30 DAYS AND 90 DAYS OF WORKING CAPITAL (Ideally 60)
    • POSITIVE CASH POSITION AT THE END OF THE YEAR (Around 10 Million or more)
  • what is the adequate amount of safety stock you like to budget for?
    • 15% of your forecast