Transcript Distribution Game - NMSU College of Business

Manufacturing game
Part 1 - Chapter 1
Introduction
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
What’s an ERP?
Each team of 4 to 5 players…
Version : August 2009
© SAP 2009 / Page 3
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Running a make-to-stock
company…
Version : August 2009
© SAP 2009 / Page 4
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Before ERP systems
Version : August 2009
© SAP 2009 / Page 5
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
With an integrated enterprise
system
Version : August 2009
© SAP 2009 / Page 6
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Collaborating using the end-toend power of SAP !
Version : August 2009
© SAP 2009 / Page 7
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Description of your
new company
Welcome to your new job !
http://www.youtube.com/watch?v=XYFJASoYGps
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Location of the 26 companies
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Muesli Cereals
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Product size
0.5 KG
Version : August 2009
1.0 KG
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Your 6 products
40% wheat
40% oat
20% nut
1 box
1 bag
40% wheat
40% oat
20% raisin
1 box
1 bag
40% wheat
40% oat
20% blueberry
1 box
1 bag
50% wheat
50% oat
1 box
1 bag
40% wheat
40% oat
20% strawberry
1 box
1 bag
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
35% wheat
35% oat
10% raisin
10% nut
5% strawberry
5% blueberry
1 box
1 bag
Muesli Manufacturing
Association Label Regulation
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Operations in the cash-tocash cycle
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Input Cost
at low seasonal price
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Number of stores by
geographical area
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
DC10
Hypermarkets
Buy only large boxes (1 kg)
Payment delay of 30 days
More sensitive to price
Less sensistive to advertising
No partial orders - Must be able to obtain the full
order in order to buy from a particular plant.
• Buy about 3 different products
•
•
•
•
•
Version : August 2009
© HEC Montréal 2009 / Page 18
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
DC12
Grocery chains
• Buy small boxes (0.5 kg) and large boxes (1 kg)
• Variable payment delay between 15 to 20 days
• Buy about 4 different products – seek to buy those
from a unique vendor
Version : August 2009
© HEC Montréal 2009 / Page 19
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
DC14
Independent grocers
•
•
•
•
•
Only buy small boxes (0.5 kg)
Less price sensitive
Sensitive to advertising
Variable payment delay between 5 to 30 days
Buy about 2 different products
Version : August 2009
© HEC Montréal 2009 / Page 20
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Number of retailers per
Länders
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Risk premium on credit
ratings
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Production improvements
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Warehousing cost
automatically charged
• Each team has 3 warehouse storage areas:
• Finished product - space for 250,000 boxes
• Raw materials - space for 250,000 kg
• Packaging - space for 1,000,000 boxes and space for 1,000,000
bags
• Additional warehouse space can be rented:
• 100,000 boxes (or part thereof), @ € 200/day (less than € 0.01
per box per day)
• 100,000 kg (or part thereof), @ € 350/day (more expensive
because it's raw food product)
• 100,000 boxes AND/OR bags (or part thereof), @ € 50 day
Version : August 2009
© HEC Montréal 2009 / Page 24
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Fixed costs per week
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Review of the major rules
• You may not change the recipe of a product if you are still
carrying inventory
• Interest payment and loan renegotiation
• Customers do not change throughout the game, hence you
may learn from their past behaviour
• The company displaying the highest shareholder’s equity at
the end of the simulation wins the game
• You must behave ethically at all times
• At the end of the game, raw material and finished goods
inventory will be sold out at a reduced price (optional)
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Elements of a winning strategy
• Use the ERP system efficiently
• Do not run out of stock
• Delays, production capacities and liquidity
constraints are important elements of the game
• Exploration and exploitation
• Team organization is more important than you
think
• Have fun!
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Pre-register now !
http://erpsim.hec.ca/competition/
Version : August 2009
© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western
Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca