Capsim Guide and Win Tips

Capsim guide and winning tips is made as easy as possible for the easy following while it helps you avoid simple mistakes that make you lose. However, this guide doesn’t guarantee you an edge to win either. So tread carefully!

Tip 1: Research and Development (R&D) – (Round to Round Guide from 1 to 8)

To apply this Round to Round strategy for R&D, you need to create an excel file with your data probably from an Industry Condition Report and enter the data in Excel file to get more accurate numbers.

Step 1: Download Industry Condition Report – from your game.

Step 2: Download Excel file for automatic computation strategy and decisions

Step 3: Very essential. Open page 3 of Industry Condition Report and get the Table 2, the first line for Round 0 and put that numbers in Round 0 in Excel file, then the file will automatically compute all resolutions for 8 rounds, with 4 different strategies.

NOTE: Do not use default numbers in the excel file.

The numbers in excel file, are a bit different from your game – creator and administrator change the numbers if the new industry is made for a new class.

Get Round 0 number from Industry Condition Report

Put the above numbers into excel file, Round 0 (only 1 row)

Once done, the excel file will automatically compute all your decisions for the 4 different strategies.

Tip for Production

Lower MTBF to an average or a minimum of the range – except Performance segment only

From Round 1 to Round 8, when you do R&D, you should lower MTBF to the average or the minimum of the range to save you cost while increasing contribution margins. The margin is the key Profit Driving tool because Reliability accounts for a small percentage of the Customer Buying Criteria.

NOTE: If you want safe strategies, keep MTBF at average.

Except for Performance segment, ma MTBF is kept at 27.000 for all the other 4 segments, and minimum MTBF selected eg. Low-End to 12.000, Traditional to 14.000, and High-End to 20.000 for MTBF. The MTBF for Performance is set to max. 27.000 since buying criteria for this segment is 43%.

If you want to compete in 3-5 segments and not all the 5, the most potential, lucrative and profitable segments are the Low-End and Tradition.

R&D: Round By Round Decision For 8 Rounds

Round 1: R&D

Generate a new Low-End sensor PFMN 4.1 –SIZE 16.3 MTBF 12.000 – this is Low-End sweet spot of Year 4

Alter the original Low-End sensor MTBF to 12.000 – don’t re-position original Low End

Re-position the original Traditional sensor to PFMN 6.1 SIZE 14.3 MTBF 14.00 min.

Re-position original High-End sensor to PFMN 9.2 SIZE 11.2 MTBF 20.000 min

Re-position original Performance sensor to PFMN 9.8 SIZE 16.0 MTBF 27.000 max

Re-position original size sensor to PFMN 4.4 SIZE 10.6 MTBF 16.000 min

NOTE: You need to change the number of PFMN and SIZE to launch a new product in June or July.

Round 2: R&D

Generate a new Traditional sensor PFMN 8.2 – SIZE 12.2 MTBF 14.000 – This is the sweet spot for Traditional Year 4

Re-position original Traditional sensor to PFMN 6.8 SIZE 13.6 – Keep 14.000 min

Re-position original High-End sensor to PFMN 10.1 SIZE 10.3 – Keep MTBF 20.000 min

Re-position original Performance sensor to PFMN 10.8 SIZE 15.3 –Keep MTBF 27.000 max

Re-position original Size sensor to PFMN 5.1 SIZE 9.6 MTBF – Keep MTBF 16.000 min

NOTE: Change the number of PFMN and SIZE to launch a new product in June or July

Round 3: R&D

Generate a new High-End sensor such as PFMN 11.9 – SIZE 8.5 – this is High-End sweet spot Year 4

(Optional) Generate a new Size or Performance instead of High-End – with round 4 sweet spot specifications

(Optional) Re-position original Performance and Size sensor only if you plan to continue them.

Re-position original High-End sensor to PFMN 11.0 SIZE 9.4 – Keep MTBF 20.000 min

Re-position original Low-End sensor to PFMN 4.1 SIZE 16.3 – Keep MTBF 12.000 – this will take more than one year to complete

Re-position original Traditional sensor to PFMN 7.5 SIZE 12.9 – Keep MTBF 16.000 min

NOTE: You need to change the number of PFMN and SIZE to launch a new product in June or July. For the 3 first Round, create new Low End, Traditional and High-End each Round.

Round 4: R&D

Re-position original Traditional sensor to PFMN 8.2 SIZE 12.2 – Keep MTBF 14.000 min

Re-position original High-End sensor to PFMN 11.9 SIZE 8.5 MTBF 20.000 min

(Optional) Re-position original Performance and SIZE sensors if you intend to continue – use round 4 sweet spot

NOTE: You need to change the number of PFMN and SIZE to launch a new product in June or July.

Round 5: R&D

Re-position both Traditional sensors to PFMN 8.9 SIZE 11.5 – Keep MTBF 14.000 min

Re-position both High-End sensors to PFMN 12.8 SIZE 7.6 – Keep MTBF 20.000 min

(Optional) Re-position original Performance and Size sensors if you intend to continue them

NOTE: Adjust the number of PFMN and Size to launch a new product in June or July

Round 6: R&D

Re-position both Traditional sensors to PFMN 9.6 SIZE 10.8 – Keep MTBF 14.000 min

Re-position both High-End sensors to PFMN 13.7 SIZE 6.7 – Keep MTBF 20.000 min

(Optional) Re-position original Performance and Size sensors if you intend to continue them

NOTE: Adjust the number of PFMN and Size to launch a new product in June or July

Round 7: R&D

Re-position both Traditional sensors to PFMN 10.3 SIZE 10.1 – Keep MTBF 14.000 min

Re-position both High-End sensors to PFMN 14.6 SIZE 5.8 – Keep MTBF 20.000 min

(Optional) Re-position original Performance and Size sensors if you intend to continue them

NOTE: Adjust the number of PFMN and SIE to launch a new product in June or July

Round 8: R&D

Re-position both Traditional sensors to PFMN 11.0 SIZE 9.4 – Keep MTBF 14.000 min

Re-position both High-End sensors to PFMN 11.5 SIZE 4.9 – Keep MTBF 20.000 min

(Optional) Re-position original Performance and Size sensors if you intend to continue them

NOTE: Adjust the number of PFMN and SIZE to launch a new product in June or July

 TIP 2: MARKETING

Use $2.000 for promotion and sales budgets for Traditional and Low-End since beyond this level shrinking returns are experienced.

Use $1.500 for High End, Performance and Size sections

Maintain this spending in Round 1 to Round 3, until it is decided with segment will continue. Thereafter increase all the segments to $2.000 to finish

New 2018: In you want to boost good sales and some net profit from Round 1 you can spend 1.400 for all promotions and sales.

For segments, you don’t want to continue, reduce budgets for that segment to $0

PRICING TIPS
Each round you can lower all the prices down to at least $0.50 from the maximum price of the segment to maintain the customer expectations –lower each year.

You need to check with the Capstone Courier Prices and see the maximum prices for each segment. If competitors are reducing prices in Traditional and Low-End segments, you need to lower the prices down close to their levels.

But, when competitors lower their prices way below, they wouldn’t have enough capacity to sell therefore they suffer stock out. You can still maintain prices higher and benefit market shares at a higher profit level. For this reason, you need to compute demands and plan production as accurately as you can.

SALES FORECAST TIPS

  • Don’t trust computer suggestions, they are always wrong
  • There is a formula to compute and forecast sales for next round
  • Get market shares from page 10 of Courier Report
  • Get total sales from page 10
  • Get market potential growth for each segment from page 5 to 9

NOTE: Sales forecast = Potential market hare % x Segment size x (1 + Segment Growth Rate)

Page 10 gives us Potential Market share, you can use it (never use real market share)

If you think you can sell more, adjust the percentage.

TIP 3: PRODUCTION

Start by checking Workforce required and Workforce complement, if the box is editable, ensure to match the required with This Year to save money.

You will increase automation every round

Traditional to 8.0 (4.0 – 5.0 – 6.0 -7.0 – 8.0)

Low-End to 10.0 (5.0 – 6.7 -8.4-10)

High-End to 5.0

Performance to 6.0

Size to 6.0

SETTING PRODUCTION

Production amount should always be 112% of Sales Forecast. This will allow some extra inventory to take advantage of the competitors to suffer from stock out. When you calculate production, take into account inventory from the previous round. Use Excel to compute Production more conveniently

If you have stocked out in a year, increase production above 112% to 120% or 125% but if you see some inventory, then reduce for that segment to 112%.

ADD ACCURACY

The goal should be keeping your production at 150% – Full first shift and 50% second shift.

This allows more versatility to deal with short term market changes.

Keep in mind that added capacity isn’t available until next round. As such, if you add capacity in round 2, it will be available in round 3.

So if you see any factory with more than 150% capacity, you can add more capacity to that by multiplying the excess over 150% with a total capacity. For instance, 180% of 2.000 factories you will require to add a 30% surplus, which is 30% x 2.000 =600

NOTE: Factories aren’t sold or even use 100% in the present round.

You only reduce segments you want to exit to 1. By so doing, you can still sell the rest inventories in that particular segment at full price and not 50% price.  If you are unable to complete all the suggestion, try to come as close as possible. Use the entire budget available in the initial 3 rounds or more if possible. The more you control automation the better.

TIP 4: HUMAN RESOURCE DECISIONS

It is vital to invest in human resource since productivity is measured in the balanced scorecard and the HR investment will cut labour costs. Often, HR has a few options present and they include Recruiting Spending and Training Hours.

Aim for a maximum of $5.000 recruitment spending and 80 hours for training in every round

If you are limited in funds, try $2.000 and 40 hours of training.

In case the labour negotiations are present, you can use the win-win strategy between the demanded and the present contract.

NOTE: When inputting numbers here, double-check to ensure correct numbers to avoid labour strikes. Use win-win negotiations, the average of current contract and labour demands.

TIP 5: TQM

In TQM, the focus is on setting $1.500 to $2.000 per round. For each item, give priority to the most useful initiatives. Continue with this for 3 round then stop spending money into those initiatives since it will no longer make any significant changes.

NOTE: $5.000 is the maximum budget for each initiative in the entire game. The optimal way to add money is $2.000 – $2.000 and $1.000 or $1.500 – $1.500 and $1.000 depending on the maximum allowed in each round.

TIP 6: FINANCE

Finance should be the last decision you make after all the other section decisions have been made. The way you make a financial decision will depend on how the game will be graded. However, most games are graded on the Balanced Scorecard while others are graded on Profit or Stock Price. For all the grading metrics:

  • Keep at least $16.000(000) cash for around to avoid emergency loans
  • Keep more cash, because it is always better than lack of it
  • Keep the right amount of cash to get MAX Days of Working Capital – not too much or too little

When you have much Cash and Net Profit, you will require paying off dividends and retiring stocks to increase leverage as well as get maximum points for Days of Working Capital.

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