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TOPSIM β General Management II Teilnehmerhandbuch Instructorβs Manual Appendix Version 3.0 I Explanations Version 12.0 Copyright © TATA Interactive Systems GmbH Β D-72070 Tübingen Table of Contents 0 1 2 Preface ..................................................................................................... 1 Start ......................................................................................................... 1 File ........................................................................................................... 1 2.1. 2.2 3. Game Versions .................................................................................................2 Key Seminar Data .............................................................................................5 Edit .......................................................................................................... 7 3.1 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 Decisions ..........................................................................................................7 Instructor's Data................................................................................................9 Starting Situation ..............................................................................................9 Data for the Periods ........................................................................................11 Activation of Features ..................................................................................... 19 Graphs of Functions ........................................................................................ 22 Factors/Cost Allocation ................................................................................... 25 Define Variables for Analyses.......................................................................... 27 3.3 4. Date of Reports............................................................................................... 30 Simulation .............................................................................................. 31 4.1 4.2 4.3 4.3.1 4.3.2 4.3.3 5. Simulate Next (x) Period ................................................................................. 31 Simulate Previous Period ................................................................................ 31 Planning Models 1, 2, and 3: Call up, Exit, Code Word .................................... 31 Planning Model 1 ............................................................................................ 32 Planning Model 2 ............................................................................................ 33 Planning Model 3 ............................................................................................ 35 Reports .................................................................................................. 37 5.1 5.1.1 5.1.2 5.1.3 5.1.4 5.1.5 5.1.6 5.2 5.2.1 5.2.2 Instructor's Reports ......................................................................................... 37 Instructorβs Report I ........................................................................................ 38 Instructorβs Report II ....................................................................................... 40 Instructorβs Report III ...................................................................................... 43 Instructorβs Report IV ...................................................................................... 45 Instructorβs Report V ....................................................................................... 46 Instructorβs Report VI ...................................................................................... 47 Participantsβ Reports ....................................................................................... 48 Executive Summary ........................................................................................ 48 Market Results and Value of Inventory ............................................................ 50 5.2.3 5.2.4 5.2.5 5.2.6 5.2.7 5.2.8 5.2.9 5.2.10 5.2.11 5.2.12 5.3.13 5.2.14 5.2.15 5.2.16 Production Lines - Environmental Technology ................................................. 53 Human Resources and Product Development .................................................. 57 Cost Type, Cost Center Accounting ................................................................. 58 Cost Accounting (Unit-of-Output Costing) ........................................................ 60 Contribution Margins ....................................................................................... 61 Profit and Loss Statement and Cash Flow ....................................................... 65 Financial Report and Balance Sheet................................................................ 67 Overall Company Results ................................................................................ 69 Out-of-Line Situations .....................................................................................71 Market Research Report I ............................................................................... 73 Market Research Report II .............................................................................. 74 Business Report on the Industry...................................................................... 76 Socio-Economic Statement for the Entire Industry ........................................... 77 Value Oriented Ratios ..................................................................................... 78 5.2.17 Scenario ......................................................................................................... 80 TOPSIM - General Management II Instructor's Manual - Explanatory Notes 5.2.18 5.2.20 6 Decisions Data Report .................................................................................... 82 Financial Report and Balance Sheet (US-GAAP) ............................................. 84 Data Transfer: Data Exchange with the Participantsβ Systems .............. 86 6.1 6.2 6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 6.2.6 6.2.7 6.2.8 6.3 6.4 7. Background..................................................................................................... 87 Overview.........................................................................................................88 Definition of the Data Transfer Settings in the Instructorβs System ................... 89 Initialization of Data Transfer in the Instructorβs System ................................... 90 Provide Data to the Participants ...................................................................... 91 Define the Data Transfer Settings in the Participantβs System .......................... 91 Import the Data to the Participantβs System ..................................................... 93 Save the Data to the Participantβs System ....................................................... 93 Import the Participantβs Data to the Instructorβs System ................................... 94 Transfer Data to the Participants ..................................................................... 96 Reset Participant System (βResetβ) ................................................................. 97 Note on the Network Version ........................................................................... 97 Analyses ................................................................................................ 98 7.1 7.2 7.2.1 7.2.2 8 On-Screen Graphs / Charts: Individual Results ................................................ 98 Analyses of the Situation β Industry Portfolio Analyses .................................... 99 Analyses of the Sector .................................................................................... 99 Company Portfolio Analyses.......................................................................... 100 Exit....................................................................................................... 101 TOPSIM - General Management II Instructor's Manual - Explanatory Notes 0 Preface The Instructorβs System for the management game is described and explained here. The teamsβ or Participantsβ System is described in the appendix of the userβs manual. 1 Start After double-clicking on the management game icon you will see the main menu for the game. The period that was last simulated is pre-set (Period 0 after installation). The main menu provides you with the functions that you require to operate the management game. The most important are: Ö Ö Ö Ö 2 Edit: Simulation: Reports: Enter decisions if they are not read via data transfer Simulate next period Instructor's Reports Participants' Reports File The File menu provides you with various functions to begin or restart the management game, to save games in progress, to set up the printer, to change the language, and to exit the program. 1 2 3 4 5 6 7 8 Initialize New Simulation... Restart Simulation in Progress Save Simulation in Progress... Copy Simulation in Progress onto Hard Disk... Read External Data Version... Printer Setup... Change Language Exit These functions can usually be selected with the toolbar buttons also: 1 This function is selected before the start of a new seminar and automatically allows you to specify the key data for the seminar, see note 2.2. The program will first ask: Are you sure? (Y/N) TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 1 2 This function allows you to return from the current period (the one that you are playing in the seminar) to Period 0. All of the data, including decisions and simulated values, is kept. You can re-simulate all of the periods up to where the game was left off, and alter or correct specific pieces of data in the process. If you do not change any of the data, you will obtain the same results as before. 3 This function allows you to save the position of the current game along with all of its decisions, parameters, and results on diskette. This is to ensure that your data is safely stored. You can also save your data as a particular game version (see below). 4 This function allows you to save the position of the current game on the hard disk and it is highly recommended that you do so, e.g. if you have prepared a special situation for the game which you only wish to use in certain cases. (See the notes on game versions and the seminar key data menu.) 5 This function allows you to restart a version (for example, a special situation in the game that is only used to instruct on a specific topic) that you have previously saved on diskette. The function can also be used to install the current game on another computer if, for example, a computer does not work properly. In such a situation, the position of the game on the diskette will be saved onto the new computer with this function. 6 Printer Set-up When you start the management game program, the program automatically connects to the printer. You can change the printer settings to meet your particular requirements via the File menu, with the Printer Setup command. If your printer setting changes are to apply to the whole management game, you are advised to change the printer settings from the computerβs control panel. Recommendation for setting: β’ β’ β’ 2.1. Portrait Raster graphics / B/W graphics or any suitable setting that requires the least storage space in the printer, maximum 300 dpi. In the case of HP laser jet printers: under Options select Print TRUE TYPE as graphics (this is of great importance especially for HP LaserJet III printers). 7 This function allows you to change the language of the game if you have bought a licence that permits you to do so. (To activate or to deactivate it for the participants, see the Activation of Features window.) 8 Exit ends the current session. All data and results that have been entered are saved. Game Versions There are three standard game versions: β’ Version A: A six-period version (in which the degree of difficulty/complexity progresses β’ rapidly), Version B: An eight-period version (in which the degree of difficulty/complexity progresses β’ slowly), Version C: An eight-period version in which only the base scenario is activated. The content and progression of this game is the same as for the management game TOPSIM General Management I. When these game versions are installed, they are filed in their own directories from where they can be loaded any time, and as often as required. Version B (the 8-period version) has been preset to begin once you open the program after installation. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 2 In addition, you can save four of your own game versions (E, F.G and H), which are then filed in special directories. β’ You can save your own data about the economy, management game runs, or other similar items as game versions. β’ If a game is obtained from the diskette of another computer it can also be saved as a game version. β’ You can also save, as a game version, decisions made during a seminar in which you had four or five teams, and reuse the decisions for another seminar in which you have only two or three teams. The two (or three) teams will then play Companies 1 and 2 (and three if possible), and their decisions will replace those of the game version. Companies 4 and 5 are still played according to the decisions in the game version despite that there are no participants in the seminar who can play those companies. In addition, you can save four additional game versions: Version E: βAdditional Scenario 4β, a four- period version (for shorter seminars). Version F: βAdditional Scenario 6β, a six-period version (in which the degree of difficulty/complexity progresses rapidly). Version G: βAdditional Scenario 8β, an eight-period version (in which the degree of difficulty/complexity progresses slowly), Version H: βAdditional Scenario Standard Moduleβ, a simplified eight-period version These scenarios have a low level of complexity at the beginning. The complexity intensifies from period to period as the number of operational and strategic decisions required increases. By the end of the game, the level of complexity attained in these versions resembles that of the standard versions. The addition versions must be saved separately. When these game versions are installed, they are filed in their own directories from where they can be loaded any time, and as often as required. Version A (the 6-period version) has been preset to begin once you open the program after installation. If you save the XL-version up to ten teams can play the game at the same time. To load a specific game version, you must use the File menuβs Initialize a new simulation command. You can then enter details for the simulation in the Key Seminar Data dialog box, (see point 2.2). You must also choose the game version you wish to use (A,...,O). TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 3 Saving the position of the current game as a game version: Save Simulation in Progress Position of current game: Save Simulation in Progress onto Hard Disk This function saves the position of a game in progress as version D or E. These versions are then available to be loaded when you wish to start a new simulation. (The versions D and E are saved on the hard disk in the game's subdirectories, D4 or D5 respectively). Read External Data Version This function saves data as either game version D or E. Exercise caution when creating new game versions so that you do not overwrite existing versions. As a precaution, you should save old versions on disk (use the Initialize New Simulation command, select the version, and then save this version and game position on disk). It is impossible to overwrite standard game versions. A game version of your own remains unchanged until it is overwritten by another version. When you load a game version for a game in progress and start to work with it, the position of the game is at the point where you last left off. In other words, you can always start a game version from a preset position. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 4 2.2 Key Seminar Data You will see this menu if you select the Initialize a new simulation command. To initialize a new simulation means to: β’ Select the game version. β’ Specify the name of the seminar, the date, and the number of teams participating. When a standard UNICON game version is selected the default data is loaded. The period is automatically set at 0. If you save a game version in Period three, for example, then the next time you load the same version, you will start the game from Period 3. This feature allows you to transfer a game that is in progress to another computer. Upon selecting this version on another computer the same game data can be accessed and the game can then continue. Ö Exception: You select one of your own game versions, but at the same time change the number of groups. You must simulate Period 0 in order to ensure that the data will be consistent. This procedure also resets the counter of the Planning Model to 0 and is just like starting a new game. If you want to save a game situation as a version in order to reuse it for a seminar in which you do not have enough groups, you must set the counter to 0 if the Planning Model was active in the game. To do so, save the version for the new groups as a separate version. The Planning Model will automatically be set to Period 0. Game Version : Name of Seminar : You must select among game versions A to E. The program at first assumes that you will select the same game version as played last time, and that the name of the seminar, the number of teams, and the date will also remain the same. Enter as many as 10 characters for the name of the seminar. The name of the seminar you enter appears in the heading of the instructor's and participants' reports. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 5 Number of Teams : Date : OK : Enter the number of groups competing against each other. A maximum of five groups can compete in one game. If you have more groups, then install the game as often as required. Refer to the instructions in the appendix. Four to five groups guarantee that the management game will accurately represent the market although it is possible to play the game with only three groups. If however, you have fewer than three groups you are advised to "form an additional group" yourself and βmanageβ a company by using the decisions of a group from a previous seminar. The date you enter here appears in the reports. You may change the date during the game without returning to this menu, (see note 3.3 in this manual). Clicking on OK confirms your entries and allows you to close the dialog box. The chosen version will be activated. The game will begin at Period 0 in the standard UNICON version. If you are using a version of your own that you had previously saved, you will begin at the point where you last left off (see above). TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 6 3. Edit 3.1 Decisions The instructor enters the decisions of the participants if they are not working with the participants' software, or if they have not entered their decisions via Planning Model 1, (see point 4.3). Data that has already been entered can be changed at a later point in time (for example, if a typing error was made). This applies even if you receive the decisions through the participants' disks or via the network. When you open the decision dialog box the latest period number and a company number are shown in their respective fields. Select the field you desire by clicking on it and use the scroll buttons to select the period or company. You also have the option of simply entering the number in the field. The decision forms on the screen show sets of decisions that must be made based on which features have been activated by the instructor. When all features are active, the decision forms resemble that which is shown below. (The values shown in the screenshot below are only examples of what one can enter in the fields). Select fields by using your mouse or by clicking on the Tab key. When decisions are entered, the program checks whether the entries are made in the correct format. To receive a market research report: Click on the check box provided or use the space bar. OK saves the decisions. This applies to all companies and periods. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 7 Disinvesting production lines: Here you must enter the identification number(s) of the line(s) to be scrapped in the columns provided for the different types of production lines. Entering β1β means that you wish to scrap line no. 1. You will find the identification numbers of the lines in Report 2: Production Lines β Environmental Technology. There is a maximum of three production lines per type. The fields in the βPlanned Figuresβ section are only active for products/markets if positive values have been entered as prices for those products/markets. If a group enters a price of 0, this means that the company is not offering the product on the market in question. Company decisions can be entered in any order. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 8 3.2 Instructor's Data 1 2 3 4 5 6 3.2.1 Starting Situation Data for the Periods Activation of Features Graphs of Functions Factors / Cost Allocations Define Variables for Analyses Starting Situation The data for the starting situation consists of: β’ The starting values (the same for all companies), β’ The starting balance (the same for all companies), and β’ The company names. 3.2.1.1 Personnel Starting values are needed in order to generate the starting situation. The starting values are the data from the end of the (imagined) Period 0. Based on this data, the decisions for Period 0, and the scenario-specific data for Period 0, the so-called "starting situation" is simulated (i.e. the results for Period 0). Participants are then informed about the position of their company at the start of the game. The following starting values are provided in TOPSIMGeneral Management II: Personnel Inventory : : The number of persons at the start of Period 0 is entered. These values only apply to Product 1 and describe the inventory of input materials/parts and finished products at the start of Period 0. The program automatically displays the inventory value in mEUR (Units * Value/Unit) on the balance sheet. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 9 3.2.1.2 Buildings : Production Lines : The book value is shown here alongside the remaining life of the buildings. The remaining life must be greater than the number of periods in the game, i.e. 9. The book value of the buildings should be less than or equal to the value displayed on the balance sheet for the buildings. If you enter a higher value, the balance sheet will take on this new value, and the other balance sheet values will need to be adjusted accordingly. Data for up to four different production lines (their capacities, remaining lives, costs, and environmental characteristics) can be entered. Balance Sheet If the totals (for assets and liabilities) on the balance sheet do not match due to changes of values for the inventory, buildings, or production lines, you are made aware of this, and can change the values on this screen to adjust the values in the balance sheet. Values that are calculated automatically based on the values entered in the βResourcesβ section cannot be changed in the βBalance Sheetβ section. If the total of the assets does not match the total of the liabilities as a result of changes, this is brought to your attention. The balance sheet value for land and buildings includes both the value of the buildings (see section 1) and the value of the land, and should therefore always exceed the value for the buildings alone. When the totals for assets and liabilities do not match, you cannot save the data by clicking on OK. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 10 3.2.1.3 Companies´ Names If the teams wish to name their own companies, you can enter them here. The names then appear in the participants' reports. To avoid any printing problems, please use only letters, numbers, spaces, and hyphens. 3.2.2 Data for the Periods Each period has its own file containing the instructor's data. Together these files make up the basic economic conditions, the scenario, and other economic factors, which apply to the game. For the standard game, the relevant data for the eight periods has already been entered. The text describing the scenario (see tab 8 in the manual), which you give to the participants during the game is based on this data. (Note, however, that the various data versions that come with the game are accompanied by different scenario texts.) You may change the scenarios at any time if you wish. However, every change you make to the given values must be based on thorough knowledge of the consequences. The entire file for a period consists of 6 "pagesβ. The contents of these pages are based on the features that have been activated by the instructor. All of the forms from the complete version will be shown and described. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 11 3.2.2.1 Market/Staff/Lines: Market Volume Bulk Buyer Tender (Request for bids) : : : The market volumes are fixed in mCU (Market 1) and in mFCU (Market 2, FCU = Foreign Currency Unit). The values stated reflect the market volumes for a single company. The entire market volume for the industry is calculated as follows: Market volume from the instructor's file * Number of participating companies The industry volume is adjusted as the game progresses according to the average price in the industry in comparison with the starting situation, and according to total expenditures on advertising. (See the section on the impact of factors: 3.2.4) Maximum quantity at a fixed price that can be supplied The company with the lowest bid price wins the contract to supply a specific quantity in the next period. If there are two identical bid prices, the company with the highest technology and ecology index ratings is awarded the contract. Bid prices must not exceed retail prices (on Market 1). Personnel Wages and Salaries : Production : Costs : These are the wages and salaries for the company's functional areas in thEuro (= thousand Euro) For production staff, the number new hires and dismissals may not exceed the values stated here. For recruitment and dismissals in the areas of Purchasing, Administration, Production, Product development, and Distribution the costs stated here are incurred. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 12 Production Lines 3.2.2.2 : The following values can be changed per production line: β’ Purchase price in mEUR, β’ Economic life in periods (Basis for depreciation per period), β’ Capacity in units, β’ Misc. fixed costs in mEUR, β’ Environmental index rating (Values above 100 indicate that the line is environmentally friendly), and β’ Proceeds from the sale of the line (as a percentage of net book value). Materials/Parts per Prod. (Units) Capacity per Product (Units) Prod. Cap./Person (Units) : Required units of input materials/parts per product : Required capacity units of production lines per product : Factory Materials (EUR/Unit) : Purchase of Input Materials/Parts Subcontracting Transport Costs : Number of products (Units) that one member of the production staff can produce in a period Other variable costs per product including costs for factory materials and other costs (see details in the scenario texts). Purchasing costs in Euro/unit Production/Purchasing Production : : Purchasing costs in Euro/unit Transport Costs in EUR/unit for transportation from the warehouses for finished products to retailers TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 13 3.2.2.3 Financing Loans Taxes (%) Others : : : Medium-Term: Interest; depends on the importance of the loan compared to capital reserves Long-Term: Interest for long-term loans Overdraft: Interest for overdraft loans From Version 11.0 onwards, the rating of the company will determine how much interest the company is actually charged for the loans it takes out. Pre-tax Income: Tax rate on pre-tax Income Wages / Salary: Tax on wages: Values for the report Dividends: called Corporate Socio-Economic Statement Tax on the distribution of dividends. RMS Penalty: Values for the report called Corporate Socio-Economic Statement Additional costs for automatic express Payment Per.: shipments of input materials/parts Percent of sales revenue that is received in the current period Cash (Min mEUR): Minimum cash-on-hand required Securities (%) : Average Interest Rate Interest yielded from securities This is the interest rate that appears in the Value-Oriented Ratios report (No.16) as ratio number 7. From Version 11.0, WACC, which is used to calculate the EVA and RONA values, is calculated per period and per company. WACC is an after-tax value. WACC Value per index Interest: CFROI: : Value in mEUR per planning item. (Basis for the calculation of the earning capacity value) TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 14 3.2.2.4 Other Depreciation of Buildings : (%) Misc. Fixed Costs : (mEUR) Allocation to the cost centres: The sum must be 100. When you change a value, the program will automatically adjust to the change so that the total makes up 100. All companies can change their amount of miscellaneous fixed costs directly. Maintenance Costs (mEUR) : Storage Costs per ths.Un. (mEUR) : β’ Administration (mEUR) β’ Production (Minimum value per period and line. If the entry is incorrect then the field automatically reverts to the default minimum value). For input materials/parts and finished products Extraord. Costs Sales (mEUR) : Can be allocated for specific purposes Overtime : β’ Step-Fixed Costs apply when overtime is required (e.g. MRR / Planning Models (mEUR) Inflation Index Exchange Rate Market 2 Added Capacity Due to Overtime : : : : Fixed Costs for Administration : Dividends (Min.% of Net Income) : Enviro. Rating Reduction / Machine : increased costs for plant security, in-house fire protection). β’ Penalty on costs for wages and salaries β’ MRR: Cost of market research reports for the period Planning Models I + II: Cost for each run. This applies to both Planning Models on the Participantsβ Systems. The costs are included in Report 4, under the item: Misc. fixed costs (Administration). Basis for the simulation of the industryβs volume Exchange rate (EUR/FCU) Maximum possible overtime as % of the normal capacity Administration costs in mEUR that occur regardless of sales volume Dividends as % of net income for the year The environment index ratings are reduced by this number of points (e.g. effect of new environmental regulations). TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 15 3.2.2.5 Company Comparison Extraordinary Income Extraordinary Expense Severance Packages : : : Change Prod. Staff (%) Change Sales Staff (%) : Enviro. Penalty (mEUR) : Loan Interest R a t e (+/%) WACC (If > 0) Rating (+/-) Adjustment of Inventories for Finished Goods Appears under "Other income " in the P/L Statement Appears under "Other expenses" in the P/L Statement If the participants wish to dismiss more production staff than the maximum limit permits, they will incur costs for severance packages. Initially, the costs appear under "Dismissal costs Production" in the cost centre accounts. The instructor may override the staff turnover rate that the program has calculated for the production staff. (This also applies to the sales force) Additional environmental taxes as penalty (mEUR) By using the given input fields, the instructor may reward or penalize participating groups for their actions. It is possible for the instructor to override the adjustments to the interest rate made by the rating model The instructor can override the WACC, which was calculated by the simulation model. The rating, which was calculated by the simulation model, can be adjusted by the instructor. The instructor can adjust the quantity of finished goods in the inventories for the various companies if necessary. The company will then gain/incur βextraordinaryβ income/expenses accordingly. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 16 3.2.2.6 Corrections Market Data : You may distribute additional market share per product, market, and company (if for instance, the groups have presented a high quality advertising plan). The respective market shares of the companies may not correspond exactly to the values that you enter because the total of the companiesβ market shares must equal 100%, and also the companies may experience problems with delivery/capacity. For the balance sheet items β’ Share capital β’ Capital reserve β’ Retained earnings You can increase or decrease the values (+ or -). The total amount of the values entered appears in the column called "Cash total.β When you repeat the simulation for the period, the βCashβ amount on the balance sheet as well as the βExtraordinary incomeβ, and βShare capitalβ values in the financial reports are altered to reflect the changes that you entered. You can, by this means, simulate capital increases and decreases. : You can override the share price calculated by the model. Balance Sheet Share Price ± EUR/Share TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 17 3.2.2.7 Current Scenario Scenario : The texts that appear here is available to the participants via a window in the participantsβ system. It provides information on the economy and relevant figures. It is extracted from the documents about the scenarios that are available in chapter 8 of the book. 3.2.2.8 Hints The instructor can provide the teams with additional details and instructions. The participants can find these stated in report no. 1 (Executive Summary). TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 18 3.2.3 Activation of Features The selections made by the instructor as to when features (including groups of decisions concerning products, markets, reports, and the Planning Models provided on the Participantsβ Systems) will be activated in the simulation determine the level of complexity. In addition, you also have the option of eliminating a bankrupt company from the game. 3.2.3.1 Products/Markets Here you can chose from what period onwards the various decision areas will be activated. Clicking in the corresponding check box activates or deactivates the feature in question. The launch of Product 1-new cannot be permitted before its development. If this is permitted by accident, the launch will occur together with the development of the product. The so-called "base scenarioβ - Product 1 - Market 1 - is always activated from Period 0 onwards. This cannot be changed. Product 2: The development of Product 2 is possible from Period 5 onward in the standard scenario. In this scenario, it can be made available on Market 1 in Period 6 and on Market 2 in Period 7. Remark: Until version 9.0 of TOPSIM General Management II, the activation of Product 2 was performed differently. We have organized this version differently with respect to Period 2 in order to avoid confusion. The development of Product 2 (color copier) is now possible, and its can also be introduced on the market. Please be aware that introduction of Product 2 also depends on the βdata for the periodβ, and whether market volume already exists there. If the market volume is set to 0 in the βData for the Periodsβ window, then activating this function has no effect even if a checkmark has been entered in the correct check box in the βActivation of Featuresβ window. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 19 3.2.3.2 Reports Here you can select from which period onwards the various reports will be available. E.g. βContribution Costingβ from Period 1 onwards. It is not described in the text on the starting situation of the participants' manual. The Contribution Margins report is activated together with βMarket Research Report Iβ because these two documents contain the same data. If one company does not order a market research report, then the Contribution Margins report will not be available either (see also section 7.2.). Please click on the checkbox βUS-GAAP,β if you wish to allow the participants to see their reports in US-GAAP version. 3.2.3.3 Planning Models Planning Model 1 Planning Model 2 Planning Model 3 : With this function you determine from which period onwards the Planning Models will be made available to the participants on their systems. Planned Figures : You will select the periods from which the planned figures are to be submitted with the decisions The differences between expectations and realizations will be calculated. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 20 3.2.3.4 Bankruptcy Here, companies can be eliminated from the game. If, for example in Period 4, bankruptcy is entered for Company 1 and Period 4 is then simulated, then the company will be eliminated from the market and will no longer appear in the reports. The market volume is then at the disposal of the other companies. 3.2.3.5 Ratios The numerous ratios that you are provided in Report 15 may not all be of particular importance to you. You can therefore choose the ratios that you want to see. 3.2.3.6 Others With this version you have a great deal more flexibility in terms of the various features that can be activated or remain deactivated. The possibilities shown here (such as the option to change the language with the purchase of a licence) are explained in the appendix of the Instructorsβ Manual. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 21 3.2.3.7 Languages Depending on the license you own, different languages can be activated or deactivated for the participants. You are not restrained from switching from language to language in the Instructorβs System. 3.2.4 Graphs of Functions In TOPSIM - General Management there are more than 140 curves which formulate the simulation model. Every curve consists of seven coordinate points. When you select the function βGraphs of Functionsβ, you will see a window with the curves listed. You can view and change the coordinates of every curve, however, the values of the points have been defined with care following the observation of many simulations. If you change the coordinate points of the curves, UNICON no longer guarantees that the model will continue to function correctly. You will be reminded of this if you make changes to the curves and then try to close the window. You then have the opportunity to undo your changes. From version 10.0, the functions can be modified for each of the periods. You can attach the functions to specific periods as explained below: With this switch, you can apply the function for the current period to coming periods. All changes made for the coming period will then be overwritten. Apply all functions for the current period to the coming period. Apply all functions for the current period to all following periods. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 22 Brief description of graphed functions: No Description x - axis Description y -axis 1-4 Advertising of sector of industry in % of sales + / - in % on the sector of industry's volume 5-8 Sector of industry's current average price divided by inflation + / - in % on the sector of industry's volume From curve 9 on, the values refer to individual companies 9 - 12 Variance Price from Industry's average price + / - Revision on the market share 13 - 16 Impact factor for Advertising as above 17 - 18 Impact factor for Sales as above 19 - 21 Technology Index as above 22 - 24 Ecology Index as above 25 Cumulative expenses for CI as above 26 -28 Cumulative expenses R & D for technology (mEUR) Technology Index 29 - 31 Cumulative expenses R & D for ecology Ecology Index 32 - 34 Cumulative expenses R & D for value analysis Value analysis index 35 - 37 Expenses for maintenance (mEUR) Availability of production lines (%) 38 - 40 Cumulative expenses for rationalization Rationalization Index 41 Non-salary staff costs Effect on rework (expressed in % of the payroll) 42 Technology Index as above 43 Value analysis index as above 44 - 48 Non-salary staff costs (%) Staff attrition rate in % of the opening workforce 49 - 52 Sales (mEUR) per product Personnel requirements (Number) 53 - 56 Absolute variance Target -Actual mEUR Value of planning quality (from 0 to 1.0) 57 Absolute variance Target - Actual in % as above 58 Absolute variance Target - Actual in MEUR as above 59 Expenses for environmental technology in mEUR Reduction of environmental damage (points) 60 Environmental damage indicator Production lines Tax paid to environmental authorities 61 Environmental damage indicator Production lines + / - adjustment to the market share 62 CI expenses Corporate image TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 23 Brief description of graphed functions (continuation) No Description x β axis Description y - axis Effects on the share price: 63 Owners' equity/Share Share price 64 Net income/Share Share price 65 Dividend/Share Share price 66 Cumulative dividend/Share Share price 67 Return on sales Share price 68 Cumulative expenses for marketing mix Share price 69 No. of products and markets in Sales Share price 70 Corporate image index Share price 71 Ranking of total sales Share price 72 Planning quality Share price 73 Environmental Index of production lines Share price 74 Debt/equity ratio Liabilities/Equity Share price Additional diagrams: 75 Cumulative expenses for lean production projects. 76 Cumul. in-service training Lean Production Index Competence Index Effect on absenteeism of production staff: 77 Non-salary staff costs Absenteeism rate 78 Expenses for Lean production projects (mEUR) Absenteeism rate 79 Env. index of production lines Absenteeism rate 80 Expenses on training (mEUR) Absenteeism rate 81 New hires in % compared with prev. per. Absenteeism rate 82 Dismissals in % compared with prev. per. Absenteeism rate 83 Tech.-/Eco.situation Factor for know how transfer from Product 1-old to Product 1-new and Product 2 (since version 10 set to 0) 84 Learning curve Product 1: Cumulative production to previous period in 1000 units Productivity index II for Product 1 85 Learning curve Product 2: Cumulative production to previous period in 1000 units Productivity index II for Product 2 86 Correction factor Mkt. Model Specific curve of market model TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 24 3.2.5 Factors/Cost Allocation The values entered for each of the factors are fixed values (not functions) and are used in the simulation model. They determine the impact/influence of the factor. If required, these values can also be changed, but you should be aware of the effects of making changes. The fields in which you enter the values are used for all periods. New Old : : Max. mEUR Start mEUR : : Impact of factor in the current period Impact of factor on the after-effects of decisions made in previous periods Upper limit on the impact made by the factor Starting values for the impact of the factor Example Advertising Sales P 1 M 1: 130.00 mEUR Impact of advertising in the previous period: 5.60 Advertising expenses of period: 6.00 mEUR; their effect is measured by sales. Calculation of the new value for the impact of advertising in the current period: Impact of factor =[Impact of factor in previous period (5.60) * "old" (0.40)] Advert. exp. (6.0 mEUR) + * 100 * "new" (0.70) Sales (260.00 mEUR) = 5.60 * 0.40 + 4.62 * 0.70 = 2.24 + 3.23 = 5.47 The impact of the factor is the basis for the calculation of the market shares resulting from advertising. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 25 The value found with this calculation is an intermediary value used by the model to start the calculation. The value obtained at the end of the calculation is almost never identical. Therefore, it is impossible to recalculate this factor accurately from the instructorβs report. Relaunch Advertising : Market Share : New product launch : Impact of advertising when Product 1 is relaunched. The impact of advertising during the relaunch is only 80 % of the normal value (it is set at this figure here). Impact of market share during relaunch The market share during the relaunch increases by 1.1 compared with "No relaunch.β Similar to relaunch At the top of the screen you will find the allocation possibilities for unit-of-output costing for the cost centres Purchasing, Administration, Production, R&D, and Sales. 1 2 3 4 5 6 In In In In In In proportion proportion proportion proportion proportion proportion to to to to to to the cost of direct materials (Material Value) the direct costs (Direct Costs) the capacity requirements (Capacity Required) the production volume (Production Volume) the costs of goods manufactured (CGM) revenue (Sales Revenue) If a certain basis for allocation does not seem sensible to you or to the participants for the allocation of overhead for unit-of-output costing, or you wish to see the effects of changing the basis for allocation, simply implement your decisions about cost allocation by clicking on the corresponding radio buttons. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 26 3.2.6 Define Variables for Analyses TOPSIM - General Management II allows you to select from a range of variables with which you can compile various analyses for all participating teams and periods simulated. These variables are available β’ In list format (Reports: Analyses), β’ As on-screen charts and graphs, or β’ By being exported as ASCII-files to a program such as EXCEL. Before drawing up your analyses, you should define each of the variables. This is carried out in the following dialog box. No. : Title Subtitle Units : Report : EXCEL : Decim. Rank : Number of variable used for drawing up your analyses. For variable 9 a file with the name TOPHARV.009 is generated. The numbers are listed in chronological order and depend on the order in which they are generated by the results overview report and the graphical representations. Titles (Identifiers) of the respective variables are in list form and/or graphical form. You may change these identifiers yourself (max.18 characters). As Excel only allows 8 characters, you may need to make suitable abbreviations. Yes / No - decisions as to whether the variable should be included in the reports. With these decisions you compile the selected variables in a special report that you then have for quick reference during the game. Yes / No β decisions as to whether the variable should be included in the exported files. Note: If UNICONβs EXCEL-Show is used, then all of the variables should be selected. (Initially, all variables are selected already by default.) Number of decimal places for the value Used to determine the order in which the variables are generated in the reports and charts. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 27 You can set up the analysis report (see point 5.3), if you are playing games in parallel. You then select the order of the relevant variables for the different teams. In this case, for example, only select some of the variables for the analysis report: Cumulated planning quality Net income β¦ and print the values for each period and for each game. After prioritizing the variables, you can measure the effectiveness of the teams based on them. Complete list of possible variables: No. Title 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. Possible Sales Possible Sales Possible Sales Possible Sales Actual Sales Actual Sales Actual Sales Actual Sales Possible Market Share Possible Market Share Possible Market Share Possible Market Share Actual Market Share Actual Market Share Actual Market Share Actual Market Share Sales Sales Productivity Productivity Price Price Price Price Price Total Sales Revenue Total Sales Revenue Total Sales Revenue Total sales Revenue Total Sales Revenue Total Sales Revenue Cumul.Total Sales Revenue Cumul.Total Sales Revenue Cumul.Total Sales Revenue Cumul.Total Sales Revenue Total Sales Revenue Cumul.Total Sales Revenue Advertising Advertising Advertising Advertising Advertising Total Staff Shareholder Earnings Shareholder Earnings <--- free ---> Product Development Product Development Product Development Cum. Product Development Cum. Product Development Cum. Product Development Product Development Salesmen Salesmen Salesmen Total of Advertising, CI Production Lines Production Lines Production Lines Personnel Personnel Personnel Subtitle Units Cumulative Cumulative Units Units Units Units Units Units Units Units % % % % % % % % Units Units Prd./Prs. Prd./Prs. EUR FCU EUR FCU EUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR Number mEUR % of P0 Product 1 - Old Product 1 - New Product 2 - New Product 1 - Old Product 1 - New Product 2 - New Total Market 1 Market 2 Total Actual Period Product Devel., sales Type A Type B Type C Purchase Administration Production mEUR mEUR mEUR mEUR mEUR mEUR mEUR Number Number Number mEUR Number Number Number Number Number Number Product 1 / Market Product 1 / Market Product 2 / Market Product 2 / Market Product 1 / Market Product 1 / Market Product 2 / Market Product 2 / Market Product 1 / Market Product 1 / Market Product 2 / Market Product 2 / Market Product 1 / Market Product 1 / Market Product 2 / Market Product 2 / Market Bulk Buyer Required Bids Product 1 Product 2 Product 1 / Market Product 1 / Market Product 2 / Market Product 2 / Market Required Bids Product 1 / Market Product 1 / Market Product 2 / Market Product 2 / Market Bulk Buyer Required Bids Product 1 / Market Product 1 / Market Product 2 / Market Product 2 / Market Total Act. Period Total All Periods Product 1 / Market Product 1 / Market Product 2 / Market Product 2 / Market Total 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 28 64. Personnel 65. Personnel 66. Personnel Costs Incl. 67. Non-Sal. Staff Costs 68. Corporate Identity 69. Investment in 70. Capacity of 71. Capacity of 72. Capacity of 73. Production 74. Production 75. Utilization 76. Utilization 77. Production Prod.1 78. Production Prod.2 79. Additional Purchase 80. Warehouse Inventory 81. Warehouse Inventory 82. Warehouse Inventory 83. Warehouse Inventory 84. BALANCE SHEET 85. BALANCE SHEET 86. BALANCE SHEET 87. BALANCE SHEET 88. BALANCE SHEET 89. BALANCE SHEET 90. Manufacturing Costs 91. Manufacturing Costs 92. Total Costs of Prod. 93. Total Costs of Prod. 94. Operating Income 95. Net Income / 96. Contrib.Margin II 97. Contrib.Margin II 98. Contrib.Margin II 99. Contrib.Margin II 100. Contrib.Margin III 101. Contrib.Margin III 102. Contrib.Margin III 103. Contrib.Margin III 104. Cash-Flow 105. Return on Investment 106. Return on Equity 107. Total Capital Rate 108. Turnover Profitability 109. % Own Capital Rate 110. % Outside Capital Rate 111. Capital Turnover 112. Planning-Act. Variance 113. Planning-Act. Variance 114. Planning-Act. Variance 115. Planning-Act. Variance 116. Planning Quality 117. Planning Quality 118. Planning Quality 119. Planning Quality 120. Planning-Act. Variance 121. Planning-Act. Variance 122. Planning Quality 123. Planning Quality 124. Net Income 125. Planning Quality 126. Planning Quality 127. Earn. Capital Value 128. Earn. Capital Value 129. Real Net Output 130. Real Net Output 131. Dividends 132. Share Price 133. Value of Company 134. Corporate Image Index 135. Production Staff 136. Training 137. Training 138. Process Optimization 139. Process Optimization 140. Productivity Index 141. RONA 142. EVA 143. EVA 144. CFROI R & D Sales Non-Sal. Staff costs Environmental Techn. Production Lines Type A Production Lines Type B Production Lines Type C Product 1 Product 2 Production Lines Production Personnel Total All Periods Total All Periods Finished Goods Material for Product 1 Material for Product 2 Product 1 Product 2 Cash(+), Overdraft(-) Equity Net Income/Net Loss Liabilities Pension Reserve Total Balance Product 1 Product 2 Product 1 Product 2 Net Loss Product 1 Product 1 Product 2 Product 2 Product 1 Product 1 Product 2 Product 2 / / / / / / / / Market Market Market Market Market Market Market Market 1 2 1 2 1 2 1 2 (ROI) Total Balance Total Balance Revenue Prod.1/Market Revenue Prod.1/Market Revenue Prod.2/Market Revenue Prod.2/Market Product 1 / Market 1 Product 1 / Market 2 Product 2 / Market 1 Product 2 / Market 2 Return on Equity Cash-Flow Return on Equity Cash-Flow Cumulative Actual Period Cumulative Actual Period Cumulative Cumulative As a Perc. of Revenue Cumulative 1 2 1 2 Absenteeism Expenditure/Period Quality Index Expenditure/Period NOI/NA NOI - % * NA Period - Prev.Per. CF/NA TOPSIM - General Management II Instructor's Manual - Explanatory Notes Number Number mEUR % mEUR mEUR Units Units Units Units Units % % Units Units Units Units Units Units Units mEUR mEUR mEUR mEUR mEUR mEUR EUR/Unit EUR/Unit EUR/Unit EUR/Unit mEUR mEUR EUR/Unit EUR/Unit EUR/Unit EUR/Unit EUR/Unit EUR/Unit EUR/Unit EUR/Unit mEUR % % % % % % % % % % mEUR mEUR mEUR mEUR mEUR EUR/sh. mEUR Index % mEUR Index mEUR Index Index % mEUR mEUR % Page 29 145. 146. 147. 148. 149. 150. 151. 152. 153. 154. 155. 156. 157. 158. 159. 160. 161. 162. 163. 164. 3.3 DTCF DDTCF MVA Product 1 - Old Product 1 - Old Product 1 - Old Product 1 - New Product 1 - New Product 1 - New Product 2 Product 2 Product 2 Customer Satisfaction Customer Satisfaction Customer Satisfaction Customer Satisfaction Motivation Rating WACC Rework CF - % * NA DTCF Period-Prev.per. Technology Ecology Value Analysis Technology Ecology Value Analysis Technology Ecology Value Analysis Product 1, Market Product 1, Market Product 2, Market Product 2, Market 1 2 1 2 mEUR mEUR mEUR Index Index Index Index Index Index Index Index Index Index Index Index Index Index Index % Date of Reports With this function you can change the date to appear in the reports during the course of the game, or specify the date on which a future seminar will take place while preparing for it. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 30 4. Simulation 4.1 Simulate Next (x) Period The Simulation menu allows you to simulate the next period. 4.2 Simulate Previous Period You may also re-simulate the last period that was previously simulated (e.g. Period 5), if you have modified the parameters for it. (For example: if you modify the decisions of the participants). If you wish to re-simulate a former period you may do so only by resetting the game. Resetting means restarting the simulation in progress back to Period 0 in order to reextrapolate the results up to a certain period (e.g. Period 4 in order to change the period's parameter, and consequently the results). Go to the File menu and select Restart simulation in progress. Now the period counter is set back to 0. The values that have accrued during the seminar are unchanged. Re-simulate the periods up to the period in which the changes are to be made. Make these changes, resimulate the period, and continue to extrapolate up to the current period. As it takes only a few seconds to simulate a period you quickly arrive back at the current period. Carefully note the changes in the results. 4.3 Planning Models 1, 2, and 3: Call up, Exit, Code Word If the participants are not working with the participants' software they can work with the Planning Models on the instructorβs computer. It is the instructor's responsibility to open the Planning Model for the group in question. The participating group then enters its planned and assumed values in a form. Once they have finished working with the Planning Models, the instructor must then enter a code-word (code word = SPL) so that the main menu can be returned to again. By doing so, participants can be prevented from accessing and viewing your files. Important note: As long as the participants use the Planning Models on the Instructorβs System the runs are free of charge. On the Participantsβ Systems each run costs money. Default values in the standard versions are 50,000 Euro per run. This is intended to prevent "aimless experimentationβ. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 31 4.3.1 Planning Model 1 The Planning Model 1 allows a cost estimation to be made and thus supports the participants in their decision-making. This planning model assumes that the sales volume expected by the company and entered in the available field is achieved. ( The program shows participants their decision data from the last period. The expected sales values must also be entered. (When you call up the Planning Model these are 0). After completing the data input, the simulation is carried out and a summary of results is automatically displayed. The participants may also select the reports displaying the results of the Planning Model. They are structured in the same way as the participants' reports. However, they do not contain market reports as information about the market is not accounted for in the cost estimation. The participants can work on the Planning Model with different values as often as they like. However, their companies incur costs for each run. The expected sales figures and the other values from the last entry are displayed again. If they are satisfied with the results they can use the planning decision values as decision data for the next period. When they quit Planning Model 1 with the OK button the system asks: Do you want to save your data from the Planning Model as decision data for the next period (Y/N)? Normally the answer is Yes. If the participant answers No, the program will ask you to confirm again. If the participants then call up the Planning Model again for the same period, they are presented with the decision data that was previously entered in the Planning Model. Therefore, note: If participants wish to interrupt the Planning Model, yet wish to use their last entries again for future planning, they should definitely save the data as decisions because otherwise the earlier (old) entries will reappear. It is especially important to note that the estimated sales figures are lost. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 32 4.3.2 Planning Model 2 Here the participants can make assumptions about the decisions of their competitors and check what the market results would be under these conditions. The participants enter their planned marketing mix decisions and their expectations of the competition. (The form's layout evolves based on the features that the instructor activates over the course of the game.) The fields for relaunch and new launch appear based on the decisions of the company . By clicking on the Results icon the simulation is activated. The program then runs through the market model with the values entered here. As in Planning Model 1, scores can be saved and loaded again. By clicking on a company name U1 ... U5, you can load the values for this company from the previous period to the simulation model. Additionally, participants can click βAllβ so that the values of all competitors are loaded at once. Print Report prints the assumptions and results as reports. End allows you to leave Planning Model 2. Note: Even if the same values are entered for all companies in later periods it is possible that different market shares will be calculated. The reason is that, for example, different investments for advertising have been made in the past and there are after-effects occurring in the simulated period. Every run of the planning model costs 50,000 Euro. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 33 Print Report immediately prints the assumptions and the results on a sheet of paper (see below). End allows you to leave Planning Model 2. ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β TATA Interactive Systems GmbH - D-72070 Tübingen Copyright (c) 2006 by TATA β β MANAGEMENT GAME Period: 3 β β T O P S I M - General Management II 6 Per Std Date 10. 1.2005 β β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ£ β β β PLANNING MODEL 2 β β β β ββββββββββββββββββββββββββββββββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββ€βββββββββ£ β Planning Values β C 1 β C 2 β C 3 β C 4 β C 5 β βββββββββββββββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Price (EUR/Un.) Product 1, Market 1 β 3000 β 3000 β 3000 β 3000 β 3000 β β (FCU/Un.) Product 1, Market 2 β 0 β 0 β 0 β 0 β 0 β βββββββββββββββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Advertis.(mEUR) Product 1, Market 1 β 6.00 β 6.00 β 6.00 β 6.00 β 6.00 β β Product 1, Market 2 β 0.00 β 0.00 β 0.00 β 0.00 β 0.00 β βββββββββββββββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Sales People (number) Market 1 β 100 β 100 β 100 β 100 β 100 β β Market 2 β 0 β 0 β 0 β 0 β 0 β βββββββββββββββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Prod.developm. Technology Product 1 β 100.0 β 100.0 β 100.0 β 100.0 β 100.0 β β Product 2 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β β Ecology Product 1 β 100.0 β 100.0 β 100.0 β 100.0 β 100.0 β β Product 2 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β βββββββββββββββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Corporate Identity β 2.0 β 2.0 β 2.0 β 2.0 β 2.0 β βββββββββββββββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Product 1 Relaunch β N β N β N β N β N β β Product 1 New launch β N β N β N β N β N β βββββββββββββββββββββββββββββββββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§βββββββββ ββββββββββββββββββββββββββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββ β Results β C 1 β C 2 β C 3 β C 4 β C 5 β Total β ββββββββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β Sales (Units) β β β β β β β β Prod.1, Market 1 β 53259β 53259β 53259β 53259β 53259β 266295β β Prod.1, Market 2 β 0β 0β 0β 0β 0β 0β ββββββββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β Market Share (% of Sales) β β β β β β β β Prod.1, Market 1 β 20.0 β 20.0 β 20.0 β 20.0 β 20.0 β 100.0 β β Prod.1, Market 2 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β ββββββββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β Revenue (mEUR) β β β β β β β β Prod.1, Market 1 β 159.78β 159.78β 159.78β 159.78β 159.78β 798.89β β Prod.1, Market 2 β 0.00β 0.00β 0.00β 0.00β 0.00β 0.00β ββββββββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β Market Share (% of Revenue) β β β β β β β β Prod.1, Market 1 β 20.0 β 20.0 β 20.0 β 20.0 β 20.0 β 100.0 β β Prod.1, Market 2 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β ββββββββββββββββββββββββββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ Remark: It is possible to obtain different market shares even if you enter the same values for all the companies. It is actually because, for example, the advertising expenses from previous periods still affect the current period. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 34 4.3.3 Planning Model 3 Planning Model 3 is a break-even analysis for Product 2, assuming that Product 2 is being subcontracted to an external company. Four periods can be planned from the moment the instructor activates the feature. Market Volume Market Share (%) Price/Un. (EUR) Advertising (mEUR) Add. Sales Personnel Add. CI (mEUR) R & D: Technology Ecology (mEUR) Value Analysis (mEUR) Others (mEUR) Potential market volume estimated in thousands of units for the whole sector (Market 1 and 2). Market share of the company estimated as a percent of the total market. Price for the color copier in EUR and FCU Advertising expenses Additional staff for sales compared to the staff for Product 1. Additional expenses for CI compared to the expenses for Product 1. Number of people needed for the development of Product 2. Expenses for ecology (Product 2). Expenses for value analysis (Product 2). Any other expenses for Product 2, which are not taken into consideration on the form. Calculations on the right side of the screen are made for every entry and can also be displayed in charts. Comments on the results: Price/Un. (EUR) Sales (Th.Un) Sales (mEUR) Subcontracting Transport Costs Contribution Margin I Purchase Advertising Sales CI Administration R&D Weighted average taking the exchange rate into consideration Market Volume * Individual Market Share (for M1 and M2) Price * Sales (for M1 and M2). Expenses for subcontracting (amount ordered = amount sold because inventory is not planned) Transport costs for the period * sales. Revenue - Subcontracting β Transport charges. Persons needed Value entered Value entered * staff costs. Value entered Persons needed (MEUR) Number of people (Technology) * staff costs + value entered for ecology and value analysis. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 35 Others Result of the period Periodβs results Value entered Margin I - (Purchase until others). Cumulative results of all the periods Commentary on the graphs: Left part Light color on the bars Dark color on the bars Value of the total market. Your particular value as part of the total market. Right part Light colour of the bars Dark colour of the bars Line + revenue and β costs Result of the period Evolution of the added result Running Planning Model 3 is free of charge. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 36 5. Reports 5.1 Instructor's Reports In the instructor's reports you will find the most important results from the participants' reports, as well as additional information that is useful for interpreting market results. You are advised to consult the instructor's reports before the individual company reports. First, display them on the screen to get a quick overview. As the instructor, you can recognize possible mistakes in the game and you can intervene if necessary. For example, you can impose additional penalties on companies for keeping excessive amounts of inventory on hand. To do so, you would enter the penalty amount in the instructor's data for the period in question, and simulate the period once again. The reports shown here are examples from a seminar with five participating groups based on data version B. The simulation has reached Period 7, i.e. so a high level of complexity has been attained. The data shown is for the demo version. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 37 5.1.1 Instructorβs Report I ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β INSTRUCTOR'S REPORT I: MARKET RESULTS β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ βββββββββββββ€ββββββ€ββββββ€ββββββββ€ββββββββββββββββββββββββ€βββββββββββββββββ€βββββββββββββββββ€βββββββββββββββββ β MARKET β Old β β β ADVERTISING β SALES β REVENUES β POTENTIAL SALESβ β RESULTS β New β CO. β PRICE βββββββββ¬ββββββββ¬ββββββββΌβββββββββ¬ββββββββΌβββββββββ¬ββββββββΌβββββββββ¬ββββββββ’ β β Rel.β βEUR/FCUβ mEUR β % βFactor β Units β % β mEUR β % β Units β % β βββββββββββββΌββββββΌββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββ’ β β β β β β β β β β β β β β β PRODUCT 1 β N β 1 β 3050 β 4.0 β 12.5 β 3.3 β 30598 β 12.4 β 93.32 β 13.1 β 28815 β 11.5 β β MARKET 1 β N β 2 β 2798 β 7.0 β 21.9 β 5.1 β 62402 β 25.2 β 174.60 β 24.5 β 62402 β 24.8 β β β N β 3 β 2730 β 9.0 β 28.1 β 5.2 β 65178 β 26.3 β 177.94 β 24.9 β 75978 β 30.2 β β β O β 4 β 3000 β 6.0 β 18.8 β 4.5 β 45146 β 18.2 β 135.44 β 19.0 β 42555 β 16.9 β β β O β 5 β 3000 β 6.0 β 18.8 β 4.5 β 44208 β 17.9 β 132.62 β 18.6 β 41671 β 16.6 β β βββββββΌββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββ’ β β β Ο/S β 2884 β 32.0 β 100.0 β 4.5 β 247532 β 100.0 β 713.92 β 100.0 β 251421 β 100.0 β βββββββββββββΌββββββΌββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββ’ β β β β β β β β β β β β β β β PRODUCT 1 β N β 1 β 2300 β 1.0 β 22.2 β 3.2 β 16912 β 77.7 β 52.51 β 79.2 β 3810 β 6.1 β β MARKET 2 β N β 2 β 2098 β 2.5 β 55.6 β 6.5 β 4860 β 22.3 β 13.76 β 20.8 β 35101 β 56.0 β β β N β 3 β 2030 β 1.0 β 22.2 β 2.9 β 0 β 0.0 β 0.00 β 0.0 β 23799 β 38.0 β β β O β 4 β 0 β 0.0 β 0.0 β 5.0 β 0 β 0.0 β 0.00 β 0.0 β 0 β 0.0 β β β O β 5 β 0 β 0.0 β 0.0 β 5.0 β 0 β 0.0 β 0.00 β 0.0 β 0 β 0.0 β β βββββββΌββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββ’ β β β Ο/S β 2255 β 4.5 β 100.0 β 7.5 β 21772 β 100.0 β 66.28 β 100.0 β 62710 β 100.0 β βββββββββββββΌββββββΌββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββ’ β β β β β β β β β β β β β β β PRODUCT 2 β β 1 β 9900 β 2.0 β 57.1 β 4.5 β 3500 β 31.8 β 34.65 β 33.3 β 6140 β 27.8 β β MARKET 1 β β 2 β 9000 β 0.5 β 14.3 β 2.5 β 2500 β 22.7 β 22.50 β 21.6 β 8387 β 38.0 β β β β 3 β 9360 β 1.0 β 28.6 β 3.1 β 5000 β 45.5 β 46.80 β 45.0 β 7555 β 34.2 β β β β 4 β 0 β 0.0 β 0.0 β 5.0 β 0 β 0.0 β 0.00 β 0.0 β 0 β 0.0 β β β β 5 β 0 β 0.0 β 0.0 β 5.0 β 0 β 0.0 β 0.00 β 0.0 β 0 β 0.0 β β βββββββΌββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββ’ β β β Ο/S β 9450 β 3.5 β 100.0 β 6.7 β 11000 β 100.0 β 103.95 β 100.0 β 22082 β 100.0 β βββββββββββββΌββββββΌββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββ’ β β β β β β β β β β β β β β β PRODUCT 2 β β 1 β 7300 β 2.0 β 66.7 β 5.5 β 0 β 0.0 β 0.00 β 0.0 β 6020 β 40.2 β β MARKET 2 β β 2 β 6850 β 0.5 β 16.7 β 2.7 β 0 β 0.0 β 0.00 β 0.0 β 7733 β 51.7 β β β β 3 β 7200 β 0.5 β 16.7 β 2.8 β 0 β 0.0 β 0.00 β 0.0 β 1218 β 8.1 β β β β 4 β 0 β 0.0 β 0.0 β 5.0 β 0 β 0.0 β 0.00 β 0.0 β 0 β 0.0 β β β β 5 β 0 β 0.0 β 0.0 β 5.0 β 0 β 0.0 β 0.00 β 0.0 β 0 β 0.0 β β βββββββΌββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββΌβββββββββΌββββββββ’ β β β Ο/S β 0 β 3.0 β 100.0 β 7.0 β 0 β 0.0 β 0.00 β 0.0 β 14971 β 100.0 β βββββββββββββ§ββββββ§ββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§βββββββββ§ββββββββ§βββββββββ§ββββββββ§βββββββββ§ββββββββ ββββββββββββββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ β CUSTOMER SATISFACTION β Company 1 β Company 2 β Company 3 β Company 4 β Company 5 β ββββββββββββββββββββββββββββΌββββββββββββββββΌββββββββββββββββΌββββββββββββββββΌββββββββββββββββΌββββββββββββββββ’ β Product 1 Market 1 β 106 β 107 β 116 β 97 β 90 β β Product 1 Market 2 β 61 β 85 β 92 β β β β Product 2 Market 1 β 82 β 112 β 106 β β β β Product 2 Market 2 β 108 β 111 β 103 β β β ββββββββββββββββββββββββββββ§ββββββββββββββββ§ββββββββββββββββ§ββββββββββββββββ§ββββββββββββββββ§ββββββββββββββββ ββββββββββββββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ β CI / IMAGE β Company 1 β Company 2 β Company 3 β Company 4 β Company 5 β ββββββββββββββββββββββββββββΌββββββββββββββββΌββββββββββββββββΌββββββββββββββββΌββββββββββββββββΌββββββββββββββββ’ β Expenditure for CI (mEUR)β 2.0 β 2.0 β 3.0 β 2.0 β 2.0 β β Functional factor CI β 5.2 β 5.6 β 5.9 β 4.0 β 4.0 β ββββββββββββββββββββββββββββΌββββββββββββββββΌββββββββββββββββΌββββββββββββββββΌββββββββββββββββΌββββββββββββββββ’ β Corporate image (Index) β 104.5 β 105.7 β 105.0 β 99.7 β 99.7 β ββββββββββββββββββββββββββββ§ββββββββββββββββ§ββββββββββββββββ§ββββββββββββββββ§ββββββββββββββββ§ββββββββββββββββ ββββββββββ€ββββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ β BULK β Sales (Units) β Co. 1: 5000 β Co. 2: 7000 β Co. 3: 7000 β Co.4: 0 β Co. 5: 0β β BUYERS β Revenue (mEUR) β Co. 1: 13.50 β Co. 2: 18.90 β Co. 3: 18.90 β Co.4: 0.00 β Co. 5: 0.00 β ββββββββββ§ββββββββββββββββββ§ββββββββββββββββ§ββββββββββββββββ§ββββββββββββββββ§ββββββββββββββββ§ββββββββββββββββ ββββββββββ€ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β TENDER β Prod.1 for tender bid: Company 1; Price (EUR) 1999; Sales (Units) 9000; Revenue (mEUR) 17.99 β ββββββββββ§ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ Market Results Column Old, New, Rel. : O N Existing product (Product 1) Newly developed version of Product 1 that was R launched onto the market Relaunch of the existing Product 1 TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 38 Company Advertising : : Sales : Revenue : Potential sales : Ø/S Average or total amount (depending on which mEUR % value is more informative) Expenses in mEUR Share of advertising expenses as % of the Func.F. industry Functional factor / Impact of factor Units % MEUR % Units The value entered expresses the impact of advertising expenses on the period and on past periods. The higher the value, the higher the market share. Actual sales in units Market share related to sales Revenue in mEUR Market share related to sales revenue Potential sales based on the marketing % instruments used. Market share related to the potential sales A gap between the potential and actual sales of the company arises if the company has insufficient capacity to supply its customers. 80% of the companyβs lost sales are distributed to competitors in proportion to their existing market shares. If the competitors can not supply the market either then the sales are simply lost. Important note on Product 1: Bulk buyers and contracts resulting from bids that have been won have priority over Market 1. In other words, companies can get into a position of not being able to supply customers on the market as a result of having to supply bulk buyers and fulfil contracts first if they fail to produce enough. (This is often easily overlooked!) Customer satisfaction The level of customer satisfaction is stated per product and market. The higher the number stated, the happier the customers. CI / Image Expenditure for CI Functional factor CI Corporate image (Index) : : : Bulk buyers Sales (Units) Revenue (mCU) Tender Expenses for CI in mEUR Current value for the impact of the factor Current value for the companyβs image (In the example, there is no demand from bulk buyers in Period 5). : : : Sales to bulk buyers in units Revenue in mEUR to bulk buyers Information about which company won the bid and the price at which the bid was won. The delivery and invoicing occurs in the following period. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 39 5.1.2 Instructorβs Report II ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β INSTRUCTOR'S REPORT II: R & D / SALES / PRODUCTION β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ βββββββββββββββββββββββββ€ββββ€βββββββββββββββββββββββββββ€βββββββββββββββββββββββββββ€βββββββββββββββββββββββββββ β PRODUCTβ β TECHNOLOGY β ECOLOGY β VALUE ANALYSIS β β DEVELOPMENT β βββββββββββββββββββ¬βββββββββΌββββββββββββββββββ¬βββββββββΌββββββββββββββββββ¬βββββββββ’ β βCO.β (mEUR) β β (mEUR) β β (mEUR) β β β β β Period β Cumul. β Index β Period β Cumul. β Index β Period β Cumul. β Index β β ββββββββββββββββββββββββͺββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β β β β β β β β β β β β β PRODUCT 1 - old β1β 0.0 β 13.2 β 105.6 β 0.0 β 10.5 β 109.2 β 0.0 β 9.0 β 105.4 β β β2β 1.6 β 16.2 β 111.2 β 0.0 β 9.5 β 107.7 β 1.0 β 6.0 β 104.2 β β β3β 1.1 β 16.6 β 111.6 β 0.0 β 10.0 β 108.5 β 0.5 β 4.5 β 103.6 β β β4β 1.8 β 19.7 β 112.2 β 2.5 β 22.5 β 117.0 β 1.0 β 8.0 β 107.1 β β β5β 1.8 β 19.7 β 112.2 β 2.5 β 22.5 β 117.0 β 1.0 β 8.0 β 107.1 β β βββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β βΟ/Sβ 6.3 β 85.3 β 110.6 β 5.0 β 75.0 β 111.9 β 3.5 β 35.5 β 105.5 β βββββββββββββββββββββββββΌββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β β β β β β β β β β β β β PRODUCT 1 - new β1β 0.0 β 13.2 β 105.6 β 0.0 β 10.5 β 109.2 β 0.0 β 9.0 β 105.4 β β β2β 1.6 β 16.2 β 111.2 β 0.0 β 9.5 β 107.7 β 1.0 β 6.0 β 104.2 β β β3β 1.1 β 16.6 β 111.6 β 0.0 β 10.0 β 108.5 β 0.5 β 4.5 β 103.6 β β β4β 0.0 β 6.0 β 85.0 β 0.0 β 1.5 β 45.0 β 0.0 β 0.0 β 90.0 β β β5β 0.0 β 6.0 β 85.0 β 0.0 β 1.5 β 45.0 β 0.0 β 0.0 β 90.0 β β βββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β βΟ/Sβ 2.6 β 58.0 β 99.7 β 0.0 β 33.0 β 83.1 β 1.5 β 19.5 β 98.6 β βββββββββββββββββββββββββΌββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β β β β β β β β β β β β β PRODUCT 2 β1β 4.8 β 22.1 β 105.8 β 0.5 β 9.5 β 102.7 β 0.5 β 4.5 β 102.3 β β β2β 2.7 β 18.0 β 101.2 β 3.0 β 9.0 β 101.8 β 1.0 β 3.0 β 100.0 β β β3β 3.7 β 17.8 β 101.0 β 3.0 β 9.0 β 101.8 β 0.0 β 0.0 β 90.0 β β β4β 0.0 β 8.0 β 80.0 β 0.0 β 3.0 β 45.0 β 0.0 β 0.0 β 90.0 β β β5β 0.0 β 8.0 β 80.0 β 0.0 β 3.0 β 45.0 β 0.0 β 0.0 β 90.0 β β βββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β βΟ/Sβ 11.2 β 74.0 β 93.6 β 6.5 β 33.5 β 79.2 β 1.5 β 7.5 β 94.5 β βββββββββββββββββββββββββ§ββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ ββββββββββββββββ€ββββ€βββββββββββββββββββββββββββββββββββββββββββββ€βββββββββββββββββββββββββββββββββββββββββββββ β SALES β β MARKET 1 β MARKET 2 β β βCO.β Number of people β Functional factor β Number of people β Functional factor β β βββββΌββββββββββββββββββββββΌβββββββββββββββββββββββΌββββββββββββββββββββββΌβββββββββββββββββββββββ’ β β1β 112 β 2.7 β 20 β 1.5 β β β2β 120 β 2.8 β 37 β 1.7 β β β3β 135 β 3.1 β 15 β 1.0 β β β4β 100 β 3.1 β 0 β 3.5 β β β5β 100 β 3.1 β 0 β 3.5 β β βββββΌββββββββββββββββββββββΌβββββββββββββββββββββββΌββββββββββββββββββββββΌβββββββββββββββββββββββ’ β βΟ/Sβ 567 β 3.0 β 72 β 2.3 β ββββββββββββββββ§ββββ§ββββββββββββββββββββββ§βββββββββββββββββββββββ§ββββββββββββββββββββββ§βββββββββββββββββββββββ βββββββββββββ€ββββ€ββββββββ€βββββββββββββββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββββββββββ β PRODUCTIONβ βRation.β Production lines βEnv.indβ Cumul.β Envir.βDamage βEnv.Taxβ Avail.β Utilization β β /ENVIRONM.βCO.β Cumul.βType AβType BβType Cβof lineβexpend.βreduct.βindica.β n.per.β capac.β Lines Staff β β PLANTS βββββΌββββββββΌβββββββΌβββββββΌβββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β β 1 β 9.0 β 1β 0β 2 β 91.7 β 4.5 β 2.4 β 94.1 β 1.2 β 59389 β 99.9 β 97.2 β β β 2 β 6.0 β 0β 0β 3 β 95.0 β 1.5 β 1.0 β 96.0 β 0.8 β 66880 β 99.9 β 98.5 β β β 3 β 1.0 β 2β 0β 2 β 88.2 β 5.0 β 2.5 β 90.7 β 2.2 β 66386 β 97.9 β 100.0 β β β 4 β 0.0 β 4β 0β 0 β 76.5 β 12.0 β 4.5 β 81.0 β 9.0 β 40180 β 99.6 β 99.2 β β β 5 β 0.0 β 4β 0β 0 β 76.5 β 12.0 β 4.5 β 81.0 β 9.0 β 40180 β 99.6 β 99.2 β βββββββββββββ§ββββ§ββββββββ§βββββββ§βββββββ§βββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ ββββββββββββββββ€ββββ€βββββββββββββββββββββββββββ€βββββββββββββββββββββββββββ€βββββββββββββββββββββββββββ€βββββββββ β PRODUCTION β β Production staff β Training β Process optimazation βProduc- β β STAFF β β Final β Absence β Period β Cumul. β Qualityβ Period β Cumul. β βtivity β β βCO.β workfo.β personsβ % β mEUR β mEUR β index β mEUR β mEUR β Index βindex I β β βββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β β 1 β 1272 β 69 β 5.4 β 1.5 β 16.5 β 1.04 β 1.5 β 12.0 β 1.00 β 1.04 β β β 2 β 1415 β 87 β 6.1 β 3.0 β 15.5 β 1.04 β 1.0 β 12.0 β 1.00 β 1.03 β β β 3 β 1397 β 107 β 7.7 β 1.0 β 13.5 β 1.03 β 2.0 β 17.0 β 1.02 β 1.02 β β β4β 886 β 40 β 4.5 β 0.5 β 4.0 β 0.98 β 0.0 β 0.0 β 1.00 β 0.99 β β β5β 884 β 39 β 4.4 β 0.5 β 4.0 β 0.98 β 0.0 β 0.0 β 1.00 β 1.00 β ββββββββββββββββ§ββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ ββββββββββββββββ€ββββ€ββββββββββββββββββββββββ€ββββββββββββββββββββββ€ββββββββββββββββββββββ€ββββββββββββββββββββββ β EXPERIENCE βCO.β Cumul.prod.prev.periodβProductivity index 2 βTotal product. index β Capacity per person β β AND β β Product 1 β Product 2 βProduct 1 βProduct 2 βProduct 1β Product 2 βProduct 1 βProduct 2 β β PRODUCTION βββββΌββββββββββββΌββββββββββββΌβββββββββββΌβββββββββββΌββββββββββΌββββββββββββΌβββββββββββΌβββββββββββ’ β β1β 406792 β 3500 β 1.10 β 1.08 β 1.15 β 1.13 β 57 β 20 β β β2β 437195 β 0β 1.11 β 1.00 β 1.14 β 1.03 β 57 β 18 β β β3β 401487 β 0β 1.10 β 1.00 β 1.12 β 1.02 β 56 β 18 β β β4β 280000 β 0β 1.07 β 1.00 β 1.06 β 0.99 β 48 β 18 β β β5β 279788 β 0β 1.07 β 1.00 β 1.06 β 1.00 β 48 β 18 β ββββββββββββββββ§ββββ§ββββββββββββ§ββββββββββββ§βββββββββββ§βββββββββββ§ββββββββββ§ββββββββββββ§βββββββββββ§βββββββββββ TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 40 Product Development Technology (mEUR) : Index Ecology (mEUR) Index Value analysis : : Period No. of people who are employed in the current period in R&D, * Salary Cumul. Cumulative expenditure in mEUR up to and including the current period Appraisal of the productβs technology in the form of an index. The higher the value, the higher the market share. The cumulative expenses for technology have a direct influence on the level of the index. Period Participantsβ decision for the period Cumul. Cumulative expenditure in mEUR including the current period See technology index See description for ecology Note on technology and ecology indices for the launch of Product 2: The initial indices are worked out on the basis of purchased materials and services for development (see initial values for the impact of factors). Sales Number of persons Func. Factor : : No. of sales staff in the respective market (M1, M2) Functional factor / Impact of factor The value entered expresses the impact of sales expenses on the period and on past periods. The higher the value, the higher the market share. Production/Environmental technology Ration. cumul. : Cumulative expenses for rationalization Production lines : No. of available production lines per type Env. Ind. of lin. : Environmental damage index of the production lines. Cumul. Expend : Envir. reduct. : Damage indica. : Tax n. per. : Avail. capac. Utilization : : Production staff Final workforce Absence (persons) Absence % Training Period mEUR Cumul. MEUR Quality index Production optimization Period mEUR Values below a rating of 100 result taxes that must be paid to environmental authorities. Cumulative expenses for environmental technology in mEUR (filter plants etc, end of pipe investments) Reduction of environmental damage by investing in environmental technology Actual environmental damage index of the company (= Environmental index of the lines + value from the column Envir. reduct.) Tax in mEUR payable to the Environment Authorities for the next period Available capacity of the production lines in the past period Lines Utilization of production lines in % Staff. Utilization of the production staff in % : : : Final number of production staff Absenteeism in no. of persons Absenteeism as % of final staff number : : : Decision for current period Cumulative expenses up to and including current period Competence of production staff : Decision for current period TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 41 Cumul. MEUR Index Productivity index I : : : Cumulative expenses up to and including current period Achieved index for lean production Competence index * Index for lean production projects Experience and Production Cumul.prod.prev.period. Product 1 Product 2 : The cumulative production up to the previous period is the basis for the calculation of Productivity Index II. This index is calculated separately for Product 1 and 2. Same as above Productivity index II Product 1 Product 2 Total productivity index Product 1 Product 2 Capacity /Pers. : Productivity Index I * Productivity Index II Normal capacity for production in the period (see page 2 of instructorsβ data)* total productivity index. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 42 5.1.3 Instructorβs Report III βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β INSTRUCTOR'S REPORT III: INVENTORY / COSTS / FINANCE β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ βββββββββββββββββββ€βββββββ€βββββββ€βββββββ€βββββββ€βββββββ€ββββββββββββββββββ€βββββββ€βββββββ€βββββββ€βββββββ€βββββββ β β β β β β β β β β β β β β COMPANY β 1 β 2 β 3 β 4 β 5 β COMPANY β 1 β 2 β 3 β 4 β 5 β β ββββββββββββββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺββββββββββββββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββ£ β Inv.material P1β 51243β 24909β 18634β 0β 0β CM III (mEUR) β β β β β β β Express shipmentβ 0β 0β 0β 7331β 7331β Prod.1. Market 1β 26.9β 40.0β 35.5β 1.0β 2.5β β Inv.material P2β 46β 0β 0β β β Prod.1. Market 2β 15.4β 0.9β -1.0β 0.0β 0.0β β Penalty purchaseβ 0β 0β 0β β β Prod.2. Market 1β 6.1β 1.0β 12.0β 0.0β 0.0β β Invent.Product 1β 0β 0β 0β 3482β 18564β Prod.2. Market 2β -2.0β -0.5β -0.5β 0.0β 0.0β β Invent.Product 2β 0β 0β 0β β β Bulk buy. Prod.1β 3.7β 5.1β 5.1β 0.0β 0.0β β Planned prod. P1β 61510β 74262β 73762β 40000β 40000β Tender Prod.1β -3.3β β β β β β Actual prod. P1β 61510β 74262β 72178β 40000β 40000βββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β Planned prod. P2β 2000β 0β 0β β β CM III (EUR/un.)β β β β β β β Actual prod. P2β 3500β 2500β 5000β β β Prod.1. Market 1β 881β 641β 545β 23β 57β βββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ€ Prod.1. Market 2β 912β 178β 0β 0β 0β β Motivation β 94β 92β 82β 91β 91β Prod.2. Market 1β 1742β 406β 2403β 0β 0β β Production staffβ 1272β 1415β 1397β 886β 884β Prod.2. Market 2β 0β 0β 0β 0β 0β β Hired/Dismissed β 136β 196β 235β 50β 50β Bulk buy. prod.1β 731β 725β 723β 0β 0β β Attrition β 58β 86β 123β 46β 46β Tender prod.1β -369β β β β β β Non-sal.costs(%)β 41.0β 39.0β 37.0β 40.0β 40.0βββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ βββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ€ Hired/Dism. (%) β β β β β β β Staff Purchasingβ 35β 35β 39β 25β 25β Production β 11.4β 15.0β 18.3β 5.7β 5.7β β Administr.β 280β 283β 305β 206β 205β Purchasing β -5.3β 42.3β 57.7β 13.0β 18.2β β R&D β 91β 80β 90β 34β 34β Administration β -10.2β 27.2β 45.5β 7.1β 7.1β β Sales β 132β 157β 150β 100β 100β R & D β -6.0β 0.0β 15.3β 2.9β 2.9β βββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ€ Sales β 1.4β 8.3β 6.5β 8.0β 8.0β β Revenue Prod. 1 β 145.8β 188.4β 177.9β 135.4β 132.6β Total staff β 1810β 1970β 1981β 1251β 1248β β Revenue bulk bu.β 13.5β 18.9β 18.9β 0.0β 0.0βββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β Revenue tender β 14.4β β β β β Land and build. β 6.0β 6.0β 6.0β 6.0β 6.0β β Revenue Prod. 2 β 34.7β 22.5β 46.8β β β Machinery & equ.β 42.8β 51.8β 38.4β 6.6β 6.6β β REVENUE TOTAL β 208.4β 229.8β 243.6β 135.4β 132.6β Input Material β 18.1β 8.7β 6.5β 0.0β 0.0β β Total costs β 176.8β 194.1β 193.1β 139.1β 140.3β Finished goods β 0.0β 0.0β 0.0β 8.9β 46.6β β OPERATING INCOMEβ 22.9β 21.3β 24.3β -16.3β -16.3β Accounts receiv.β 41.7β 46.0β 48.7β 27.1β 26.5β β INTEREST β 3.8β 2.9β 5.3β 8.0β 27.2β Securities β 0.0β 0.0β 20.0β 0.0β 0.0β βββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β RES.REG.BUS.OP. β 19.2β 18.4β 20.2β -24.3β -43.5β CASH β 25.2β 0.1β 12.1β 0.1β 0.1β βββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β Extraord.result β 0.0β 0.0β 0.0β 0.0β 0.0β Total assets β 133.8β 112.6β 131.7β 48.7β 85.8β β P & L before taxβ 19.2β 18.4β 20.2β -24.3β -43.5βββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β P & L after taxβ 8.6β 8.5β 13.9β -24.3β -43.5β Share capital β 15.0β 15.0β 15.0β 15.0β 15.0β βββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ€ Capital reservesβ 2.5β 2.5β 2.5β 2.5β 2.5β β Cumul. P & L β 52.2β 55.5β 43.1β -42.4β -91.3β Retain. earningsβ 37.4β 34.7β 33.7β 15.3β 14.6β β Cumul. plan.qltyβ 1.5β 8.8β -0.4β -3.1β -4.8β Loss carried fw.β 0.0β -0.3β -8.8β -27.7β -56.0β β Earn.cap. value β 7.1β 9.9β 12.8β -24.9β -44.0β Net income β 8.6β 8.5β 13.9β -24.3β -43.5β β Cum.earn.cap.v. β 53.0β 59.9β 42.9β -43.9β -93.6β Pension reservesβ 35.3β 36.1β 35.3β 29.5β 29.4β βββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ€ Long term loans β 35.0β 0.0β 40.0β 0.0β 0.0β β CGM (EUR/Un.) P1β 1844β 1849β 1859β 2563β 2560β Short term loansβ 0.0β 0.0β 0.0β 25.0β 25.0β β CGM (EUR/Un.) P2β 6694β 0β 0β β β OVERDRAFT β 0.0β 16.2β 0.0β 13.4β 98.8β βββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β COP (EUR/Un.) P1β 2454β 2478β 2479β 3477β 3509β Total liabil. β 133.8β 112.6β 131.7β 48.7β 85.8β β COP (EUR/Un.) P2β β β β β βββββββββββββββββββ΄βββββββ΄βββββββ΄βββββββ΄βββββββ΄βββββββ’ βββββββββββββββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββββββββββββββββββββββββββββββββββββββββββββββββ Inv. materials P1 or P2 : Penalty purchase : Inv. products P1 or P2 Plan. production P1 or P2 : : Act. Production P1 Plan. Production/ Act. Production P2 : : Production staff Hired/Dismiss. Staff turnover : : : Inventory of input materials and parts at the end of the period for Product 1 or 2 Penalty incurred for express shipment due to shortages of inventory Inventory of the relevant finished product in question Planned production volume for the relevant finished product Actual production volume for the Product P1 Planned/Actual production volume and outside production volume Product 2 No. of people in production at the end of the period Recruitment or dismissal ( - ) of production staff No. of persons who have left the company of their own accord during the period. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 43 Non-salary staff co. (%) Staff Purchase etc. : : CGM (EUR/Unit) COP (EUR/Unit) : : Amount of staff costs as % of payroll Staff inventory of the individual areas at the end of the period Cost of goods manufactured in EUR/Unit Cost of Production EUR/Unit The remaining values of Instructorβs Report III are excerpts from the participantsβ reports and are explained there. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 44 5.1.4 Instructorβs Report IV Instructorβs Report IV provides the instructor with a clear overview of the participating groupsβ decisions. The report is extended automatically depending on which decisions were activated by the instructor using the Activation of Features checkboxes. Extract: ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β INSTRUCTOR'S REPORT IV: Decision Data β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ€βββββββββ€βββββββββ€βββββββββ€βββββββββ€βββββββββ β DECISIONS β Comp. 1β Comp. 2β Comp. 3β Comp. 4β Comp. 5β β βββββββββββββββββββ€βββββββββββββββββββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β PRICE β Product 1 Market 1 (EUR/Unit) β 3050 β 2798 β 2730 β 3000 β 3000 β β β Product 1 Market 2 (FCU/Unit) β 2300 β 2098 β 2030 β β β β β Product 2 Market 1 (EUR/Unit) β 9900 β 9000 β 9360 β β β β β Product 2 Market 2 (FCU/Unit) β 7300 β 6850 β 7200 β β β ββββββββββββββββββββΌβββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β ADVERTISING β Product 1 Market 1 (mEUR) β 4.00 β 7.00 β 9.00 β 6.00 β 6.00 β β β Product 1 Market 2 (mEUR) β 1.00 β 2.50 β 1.00 β β β β β Product 2 Market 1 (mEUR) β 2.00 β 0.50 β 1.00 β β β β β Product 2 Market 2 (mEUR) β 2.00 β 0.50 β 0.50 β β β ββββββββββββββββββββΌβββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β SALES β Market 1 (No. of people) β 112 β 120 β 135 β 100 β 100 β β β Market 2 (No. of people) β 20 β 37 β 15 β β β ββββββββββββββββββββ΄βββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β MARKET RESEARCH REPORT (Y/N) β J β J β J β J β J β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β BULK BUYERS (units) β 5000 β 7000 β 7000 β β β β BID PRICE FOR TENDER (EUR/unit) β 1999 β β 2200 β β β β EXPENDITURE FOR CORPORATE IDENTITY (mEUR) β 2.0 β 2.0 β 3.0 β 2.0 β 2.0 β ββββββββββββββββββββ¬βββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β PRODUCT DEVELPM. β Product 1-old Technology (No.of pers.)β β β β 34 β 34 β β β Ecology (mEUR)β β β β 2.50 β 2.50 β β β Value Analysis (mEUR)β β β β 1.00 β 1.00 β β ββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β β Product 1-new Technology (No.of pers.)β 0β 30 β 20 β 0β 0β β β Ecology (mEUR)β 0.00 β 0.00 β 0.00 β 0.00 β 0.00 β β β Value Analysis (mEUR)β 0.00 β 1.00 β 0.50 β 0.00 β 0.00 β β ββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β β Product 2-new Technology (No.of pers.)β 91 β 50 β 70 β 0β 0β β β Ecology (mEUR)β 0.50 β 3.00 β 3.00 β 0.00 β 0.00 β β β Value Analysis (mEUR)β 0.50 β 1.00 β 0.00 β 0.00 β 0.00 β ββββββββββββββββββββ΄βββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β RELAUNCH (Y/N) β β β β N β N β β NEW LAUNCH (Y/N) β β β β N β N β ββββββββββββββββββββ¬βββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β PURCHASING β Raw materials/parts Product 1 (Units) β 70000 β 71000 β 71000 β 30000 β 30000 β β β Product 2 (Units) β 1950 β 0β 0β 0β 0β β ββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β β Subcontracting Product 2 (Units) β 1500 β 2500 β 5000 β 0β 0β ββββββββββββββββββββΌβββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β PRODUCTION β Production volume Product 1 (Units) β 61510 β 74262 β 73762 β 40000 β 40000 β β β Product 2 (Units) β 2000 β 0β 0β 0β 0β β ββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β β Production lines Investment (No.new l.)β 0β 0β 0β 0β 0β β β Type A Disinvestment (No.)β β β β β β β β Maintenance (mEUR)β 1.0 β 0.0 β 1.0 β 1.5 β 1.5 β β β Rationalization (mEUR)β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β β ββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β β Production lines Investment (No.new l.)β 0β 0β 0β 0β 0β β β Type B Disinvestment (No.)β β β β β β β β Maintenance (mEUR)β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β β β Rationalization (mEUR)β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β β ββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β β Production lines Investment (No.new l.)β 0β 0β 0β 0β 0β β β Type C Disinvestment (No.)β β β β β β β β Maintenance (mEUR)β 0.8 β 0.8 β 0.8 β 0.0 β 0.0 β β β Rationalization (mEUR)β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β β ββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β β Process optimising projects (mEUR) β 1.5 β 1.0 β 2.0 β 0.0 β 0.0 β β β Training (mEUR) β 1.5 β 3.0 β 1.0 β 0.5 β 0.5 β β β Investment in enviro. plants (mEUR) β 0.0 β 0.0 β 1.0 β 1.5 β 1.5 β β ββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β β Production personnel (Hired/Dismissed) β 136 β 196 β 235 β 50 β 50 β β β Non-salary staff costs (%) β 41 β 39 β 37 β 40 β 40 β ββββββββββββββββββββΌβββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β FINANCING β Medium-term loans (mEUR) β 0.0 β 0.0 β 0.0 β 25.0 β 25.0 β β β Long-term loans (mEUR) β 0.0 β 0.0 β 10.0 β 0.0 β 0.0 β β β Dividends (% of income) β 40 β 50 β 30 β 50 β 50 β β β Purchase of securities (mEUR) β 0.0 β 0.0 β 20.0 β 0.0 β 0.0 β ββββββββββββββββββββΌβββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β PLANNED FIGURES β Revenues Product 1 Market 1 (mEUR) β 129.7 β 170.7 β 167.6 β 130.0 β 130.0 β β β Revenues Product 1 Market 2 (mEUR) β 15.5 β 28.4 β 29.7 β β β β β Revenues Product 2 Market 1 (mEUR) β 65.3 β 18.0 β 21.5 β β β β β Revenues Product 2 Market 2 (mEUR) β 29.8 β 4.6 β 10.7 β β β β β Return on Equity (%) β 24.6 β 20.0 β 5.6 β 20.0 β 20.0 β β β Cash-flow (mEUR) β 24.7 β 14.0 β 12.3 β 14.0 β 14.0 β ββββββββββββββββββββ§βββββββββββββββββββββββββββββββββββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 45 5.1.5 Instructorβs Report V ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β INSTRUCTOR'S REPORT V: BUSINESS REPORTS β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β PROFIT AND LOSS STATEMENT β βββββββββββββββββββββββββββββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬βββββββββ’ β VALUES in mEUR βComp. 1 βComp. 2 βComp. 3 βComp. 4 βComp. 5 β β ββββββββββββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β SALES REVENUE β 208.39 β 229.77 β 243.64 β 135.44 β 132.62 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β - Cost of Goods Sold β 135.44 β 151.66 β 160.43 β 115.16 β 111.00 β β - Sales costs β 26.47 β 29.76 β 31.10 β 18.94 β 20.37 β β - R & D costs β 8.16 β 11.16 β 10.52 β 6.16 β 6.16 β β - Administration costs β 15.36 β 15.87 β 17.29 β 11.46 β 11.41 β β - Other expenses / income β 0.00 β 0.00 β 0.00 β 0.00 β 0.00 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = OPERATING INCOME β 22.95 β 21.32 β 24.29 β -16.28 β -16.31 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β Income reg.business operationsβ 19.18 β 18.44 β 20.21 β -24.27 β -43.46 β β Extraordinary income β 0.00 β 0.00 β 0.00 β 0.00 β 0.00 β β - Income Taxes β 10.55 β 9.96 β 6.28 β 0.00 β 0.00 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = NET INCOME FOR PERIOD β 8.63 β 8.48 β 13.93 β -24.27 β -43.46 β βββββββββββββββββββββββββββββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β BALANCE SHEET β β ββββββββββββββββββββββββββββββββββ€βββββββββ€βββββββββ€βββββββββ€βββββββββ€βββββββββ£ β ASSETS (mEUR) βComp. 1 βComp. 2 βComp. 3 βComp. 4 βComp. 5 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β FIXED ASSETS β 48.85 β 57.80 β 44.35 β 12.60 β 12.60 β β Land and Buildings β 6.00 β 6.00 β 6.00 β 6.00 β 6.00 β β Machinery and Equipment β 42.85 β 51.80 β 38.35 β 6.60 β 6.60 β β CURRENT ASSETS β 84.98 β 54.78 β 87.31 β 36.07 β 73.23 β β Raw Materials β 18.06 β 8.73 β 6.52 β 0.00 β 0.00 β β Finished goods β 0.00 β 0.00 β 0.00 β 8.88 β 46.61 β β Accounts receivable β 41.68 β 45.95 β 48.73 β 27.09 β 26.52 β β Securities β 0.00 β 0.00 β 20.00 β 0.00 β 0.00 β β Cash β 25.25 β 0.10 β 12.06 β 0.10 β 0.10 β β ββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β BALANCE SHEET TOTAL β 133.83 β 112.58 β 131.66 β 48.67 β 85.83 β β ββββββββββββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β LIABILITIES (mEUR) βComp. 1 βComp. 2 βComp. 3 βComp. 4 βComp. 5 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β OWNERS' EQUITY β 63.53 β 60.30 β 56.36 β -19.21 β -67.38 β β Share capital β 15.00 β 15.00 β 15.00 β 15.00 β 15.00 β β Capital reserves β 2.50 β 2.50 β 2.50 β 2.50 β 2.50 β β Retained Earnings β 37.40 β 34.65 β 33.72 β 15.31 β 14.63 β β Loss carried forward β 0.00 β -0.33 β -8.80 β -27.75 β -56.05 β β Net income for period β 8.63 β 8.48 β 13.93 β -24.27 β -43.46 β β PENSION RESERVE β 35.30 β 36.09 β 35.30 β 29.50 β 29.44 β β DUE TO BANKS β 35.00 β 16.19 β 40.00 β 38.38 β 123.78 β β Long-term loans > 5 periods β 35.00 β 0.00 β 40.00 β 0.00 β 0.00 β β Short-term loans < 1 period β 0.00 β 0.00 β 0.00 β 25.00 β 25.00 β β Overdraft loans β 0.00 β 16.19 β 0.00 β 13.38 β 98.78 β β ββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β BALANCE SHEET TOTAL β 133.83 β 112.58 β 131.66 β 48.67 β 85.83 β βββββββββββββββββββββββββββββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ βββββββββββββββββββββββββββββββββββ€βββββββββ€βββββββββ€βββββββββ€βββββββββ€βββββββββ β COMPANY RATIOS βComp. 1 βComp. 2 βComp. 3 βComp. 4 βComp. 5 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β Return on sales (%) β 4.1 β 3.7 β 5.7 β -17.9 β -32.8 β β Return on equity (%) β 14.6 β 16.4 β 32.8 β -479.9 β -181.7 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β Dividends paid (mEUR) β 4.4 β 0.0 β 0.0 β 0.0 β 0.0 β β Share price (EUR/Share) β 357.6 β 360.6 β 302.0 β 0.0 β 0.0 β β Value of company (mEUR) β 178.8 β 180.3 β 151.0 β 0.0 β 0.0 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β Corporate image (Index) β 104.5 β 105.7 β 105.0 β 99.7 β 99.7 β β Rating (Index) β 121 β 122 β 105 β 21 β 8 β β Customer satisfaction (Index) β 88 β 106 β 114 β 97 β 90 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β Shareholder earnings (mEUR) β 145.7 β 153.7 β 115.9 β -45.0 β -45.6 β β Shareholder earnings (%) β 292.8 β 308.9 β 232.9 β -90.3 β -91.7 β βββββββββββββββββββββββββββββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 46 5.1.6 Instructorβs Report VI ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β INSTRUCTOR'S REPORT VI: VALUE ORIENTED RATIOS β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββββββββββββ€ββββββββββββββ€ββββββββββββββ€ββββββββββββββ€ββββββββββββββ€ββββββββββββββ β β Company 1 β Company 2 β Company 3 β Company 4 β Company 5 β β VALUES P & L STATEMENT ββββββββ¬βββββββΌβββββββ¬βββββββΌβββββββ¬βββββββΌβββββββ¬βββββββΌβββββββ¬βββββββ’ β β Curr.βPrev. β Curr.βPrev. β Curr.βPrev. β Curr.β Prev.β Curr.β Prev.β β β mEUR β mEUR β mEUR β mEUR β mEUR β mEUR β mEUR β mEUR β mEUR β mEUR β β βββββββββββββββββββββββββββββββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββ£ β Sales revenue β208.4 β255.1 β229.8 β184.6 β243.6 β167.1 β135.4 β119.8 β132.6 β116.5 β ββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β - Costs of Goods Sold β135.4 β157.1 β151.7 β130.5 β160.4 β128.4 β115.2 β 99.6 β111.0 β 94.1 β β - Sales Costs β 26.5 β 27.1 β 29.8 β 31.7 β 31.1 β 26.2 β 18.9 β 18.6 β 20.4 β 20.0 β β - R & D Costs β 8.2 β 15.4 β 11.2 β 7.2 β 10.5 β 8.1 β 6.2 β 6.0 β 6.2 β 6.0 β β - Administration Costs β 15.4 β 17.1 β 15.9 β 11.7 β 17.3 β 11.3 β 11.5 β 10.2 β 11.4 β 10.3 β β - Other expenses / income β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β ββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β = OPERATING INCOME β 22.9 β 38.5 β 21.3 β 3.5 β 24.3 β -7.1 β-16.3 β-14.6 β-16.3 β-13.9 β ββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β ± Net investment income β 3.8 β 5.9 β 2.9 β 3.9 β 4.1 β 1.7 β 8.0 β 3.6 β 27.2 β 16.1 β β ± Extraordinary income β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β β - Income tax β 10.6 β 17.9 β 10.0 β 0.0 β 6.3 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β ββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β = NET INCOME (NI) β 8.6 β 14.7 β 8.5 β -0.3 β 13.9 β -8.8 β-24.3 β-18.2 β-43.5 β-30.0 β ββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β + Depreciation β 6.2 β 6.2 β 5.9 β 5.9 β 4.3 β 4.2 β 1.5 β 1.3 β 1.5 β 1.3 β β + Pension reserve β 4.2 β 3.7 β 4.5 β 3.8 β 4.5 β 3.7 β 2.8 β 2.5 β 2.8 β 2.5 β ββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β = CASH-FLOW AFTER TAX (CF) β 19.0 β 24.6 β 18.9 β 9.3 β 22.7 β -1.0 β-20.0 β-14.4 β-39.2 β-26.2 β β βββββββββββββββββββββββββββββββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββ£ β OPERATING INCOME β 22.9 β 38.5 β 21.3 β 3.5 β 24.3 β -7.1 β-16.3 β-14.6 β-16.3 β-13.9 β β - Income taxes β 12.6 β 21.2 β 11.7 β 1.9 β 13.4 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β β = NET OPER.INCOME (NOI) β 10.3 β 17.3 β 9.6 β 1.6 β 10.9 β -7.1 β-16.3 β-14.6 β-16.3 β-13.9 β ββββββββββββββββββββββββββββββββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ ββββββββββββββββββββββββββββββββββββ€ββββββββββββββ€ββββββββββββββ€ββββββββββββββ€ββββββββββββββ€ββββββββββββββ β β Company 1 β Company 2 β Company 3 β Company 4 β Company 5 β β NET ASSETS (NA) ββββββββ¬βββββββΌβββββββ¬βββββββΌβββββββ¬βββββββΌβββββββ¬βββββββΌβββββββ¬βββββββ’ β β Curr.β Prev.β Curr.β Prev.β Curr.β Prev.β Curr.β Prev.β Curr.β Prev.β β β mEUR β mEUR β mEUR β mEUR β mEUR β mEUR β mEUR β mEUR β mEUR β mEUR β β βββββββββββββββββββββββββββββββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββ£ β Land and buildings β 6.0 β 6.3 β 6.0 β 6.3 β 6.0 β 6.3 β 6.0 β 6.3 β 6.0 β 6.3 β β Machinery and equipment β 42.8 β 48.8 β 51.8 β 57.4 β 38.4 β 41.4 β 6.6 β 6.3 β 6.6 β 6.3 β ββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β = Fixed assets β 48.8 β 55.0 β 57.8 β 63.7 β 44.4 β 47.6 β 12.6 β 12.6 β 12.6 β 12.6 β ββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β Input Material β 18.1 β 14.0 β 8.7 β 8.8 β 6.5 β 6.1 β 0.0 β 0.0 β 0.0 β 0.0 β β Finished goods β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 8.9 β 21.5 β 46.6 β 55.2 β β Accounts receivable β 41.7 β 51.0 β 46.0 β 36.9 β 48.7 β 33.4 β 27.1 β 24.0 β 26.5 β 23.3 β β Securities and cash β 25.2 β 40.3 β 0.1 β 22.9 β 32.1 β 16.1 β 0.1 β 0.1 β 0.1 β 0.1 β ββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β = Current assets β 85.0 β105.4 β 54.8 β 68.7 β 87.3 β 55.6 β 36.1 β 45.6 β 73.2 β 78.6 β ββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β NET ASSETS (NA) β133.8 β160.4 β112.6 β132.4 β131.7 β103.2 β 48.7 β 58.1 β 85.8 β 91.1 β ββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β EQUITY β 63.5 β 59.3 β 60.3 β 51.8 β 56.4 β 42.4 β-19.2 β 5.1 β-67.4 β-23.9 β ββββββββββββββββββββββββββββββββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ ββββββββββββββββββββββββββββββββββββ€ββββββββββββββ€ββββββββββββββ€ββββββββββββββ€ββββββββββββββ€ββββββββββββββ β β Company 1 β Company 2 β Company 3 β Company 4 β Company 5 β β ββββββββ¬βββββββΌβββββββ¬βββββββΌβββββββ¬βββββββΌβββββββ¬βββββββΌβββββββ¬βββββββ’ β βpointsβ +/- βpointsβ +/- βpointsβ +/- βpointsβ +/- βpointsβ +/- β β βββββββββββββββββββββββββββββββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββ£ β RATING β 121 β-1.09 β 122 β-1.13 β 105 β-0.24 β 21 β 4.59 β 8 β 4.84 β ββββββββββββββββββββββββββββββββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ Average interest rate for CFROI j = 13.0% ββββββββββββββββββββββββββββββββββββ€ββββββββββββββ€ββββββββββββββ€ββββββββββββββ€ββββββββββββββ€ββββββββββββββ β β Company 1 β Company 2 β Company 3 β Company 4 β Company 5 β β RATIOS ββββββββ¬βββββββΌβββββββ¬βββββββΌβββββββ¬βββββββΌβββββββ¬βββββββΌβββββββ¬βββββββ’ β β Curr.β Prev.β Curr.β Prev.β Curr.β Prev.β Curr.β Prev.β Curr.β Prev.β β βββββββββββββββββββββββββββββββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββ£ β i WACC % β -0.3 β 6.8 β -0.2 β 7.2 β -0.1 β 7.8 β 2.9 β 7.0 β 3.9 β 5.6 β ββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β 1 Net Operating Inc.(NOI) mEUR β 10.3 β 17.3 β 9.6 β 1.6 β 10.9 β -7.1 β-16.3 β-14.6 β-16.3 β-13.9 β β 2 Cash-flow (CF) mEUR β 19.0 β 24.6 β 18.9 β 9.3 β 22.7 β -1.0 β-20.0 β-14.4 β-39.2 β-26.2 β β 3 Net Assets (NA) mEUR β133.8 β160.4 β112.6 β132.4 β131.7 β103.2 β 48.7 β 58.1 β 85.8 β 91.1 β ββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β 4 RONA (NOI/NA) % β 7.7 β 10.8 β 8.5 β 1.2 β 8.3 β -6.9 β-33.4 β-25.1 β-19.0 β-15.3 β β 5 EVA (NOI - i% * NA) mEUR β 10.7 β 6.4 β 9.9 β -8.0 β 11.0 β-15.1 β-17.7 β-18.6 β-19.6 β-19.0 β β 6 EVA (Per. - Prev.per.) mEUR β 4.3 β 12.7 β 17.8 β -5.3 β 26.1 β-14.6 β 1.0 β -7.3 β -0.6 β -2.8 β β 7 CFROI (CF/NA) % β 14.2 β 15.3 β 16.8 β 7.0 β 17.3 β -0.9 β-41.0 β-24.7 β-45.6 β-28.7 β β 8 DTCF (CF - j% * NA) mEUR β 1.6 β 3.7 β 4.3 β -7.9 β 5.6 β-14.4 β-26.3 β-21.9 β-50.3 β-38.0 β β 9 DDTCF (DTCF:Per.-Prev.p) mEUR β -2.2 β 7.7 β 12.2 β -6.8 β 20.0 β-14.4 β -4.4 β -8.5 β-12.3 β-15.1 β β 10 MVA mEUR β115.3 β 91.9 β120.0 β 92.4 β 94.6 β 69.9 β 19.2 β -5.1 β 67.4 β 23.9 β ββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β 11 EBIT mEUR β 22.9 β 38.5 β 21.3 β 3.5 β 24.3 β -7.1 β-16.3 β-14.6 β-16.3 β-13.9 β β 12 EBITDA mEUR β 29.1 β 44.7 β 27.2 β 9.4 β 28.5 β -2.9 β-14.8 β-13.3 β-14.9 β-12.6 β β 13 CASH-FLOW-Statem. int`l mEUR β 24.3 β 5.9 β 10.0 β 8.0 β 6.9 β -4.4 β-10.5 β-21.8 β-33.8 β-41.1 β ββββββββββββββββββββββββββββββββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ ad 4: RONA = Return on Net Assets ad 5: EVA = Economic Value Added ad 7: CFROI = Cash flow Return on Investment ad 8: DTCF = Difference Total Cash-flow ad 9: DDTCF = Delta Difference Total Cash flow ad 10: MVA = Market Value Added = Value of company minus Equity TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 47 5.2 Participantsβ Reports The participantsβ reports for Period 0 are illustrated in the userβs manual. However, individual reports that are not required for Period 0 are not shown in the userβs manual. These reports should be made accessible and explained to the participants by you during the course of the game. On the following pages, the contents of the participantsβ reports in the full version (with all modules activated) are explained. The reports originate from the above-mentioned seminar with five groups. Results for Group 2 are shown. Only the terms and values that are not self-explanatory are dealt with. 5.2.1 Executive Summary The Executive Summary is a new report appearing in the simulation from version 11.0 onwards. The participants of the business simulation seminar receive a visual representation of their results as well as some important information and advice. The Executive Summary report replaces the βoldβ report (no. 16) entitled βmessages and cautionsβ. 1. Sales The number of units sold of Product 1 in Market 1 was 62402. This corresponds to a market share of 25.21%. Sales of Product 1 Market 1 C2 : 62402 C1 : 30598 C3 : 65178 The average price per unit was 2916 EUR. The industry spent 32.00 million EUR on advertising. C5 : 44208 C4 : 45146 (β¦) Your company ran out of stock! 2. Process Product 1: The production quantity was 74262 units. The CGM are at 1849 EUR/unit. It was not necessary to pay a surcharge in order to purchase an express shipment of raw materials. Utilization of production personnel was at 98.5%. Utilization of production line capacity was at 99.9%. Product 2: The production quantity was 0 units. The CGM are at 0 EUR/unit. It was not necessary to pay a surcharge in order to purchase an express shipment of raw materials. Utilization of production personnel was at 0.0%. Utilization of production line capacity was at 0.0%. CGM Product 1 2500 2000 1500 1000 500 0 C1 C2 C3 C4 C5 CGM Product 2 7000 6000 5000 4000 3000 2000 1000 0 C1 C2 C3 C4 C5 TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 48 3. Result Your net income/loss is 8.48 million EUR. Your return on sales is 3.7%. Net Income 10 The average ROS in the industry is 7.4%. 0 -10 -20 -30 -40 Your EVA amounts to 9.9 million EUR. C1 C2 C3 C4 C5 4. Finance The total of your loans is 16.19 million EUR including 16.19 million EUR in overdraft loans. Share Price 350 300 250 Your net investment income is -2.88 million EUR. Your share price is 360.6. 200 150 100 50 0 C1 C2 C3 C4 C5 5. Hints and Remarks None TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 49 5.2.2 Market Results and Value of Inventory βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 2 MARKET RESULTS and VALUE OF INVENTORY β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β β β MARKET RESULTS Exchange Rate for Market 2: 1.35 β β ββββββββββ€βββββββββββββββββββ€ββββββββββββββββββββββββββββββ€ββββββββββββββββββββββββββββββ€βββββββββββββ£ β β β β β β β β β PRODUCT 1 β PRODUCT 2 β TOTAL β β β ββββββββββββββββ¬βββββββββββββββΌβββββββββββββββ¬βββββββββββββββΌβββββββββββββ’ β β β Company 2 β Industry β Company 2 β Industry β β β ββββββββββͺβββββββββββββββββββͺβββββββββββββββͺβββββββββββββββͺβββββββββββββββͺβββββββββββββββͺβββββββββββββ£ β MARKET 1β Price (EUR/Unit) β 2798 β 2884 β 9000 β 9450 β β β β Sales (Units) β 62402 β 247532 β 2500 β 11000 β β β β Revenue (mEUR) β 174.60 β 713.92 β 22.50 β 103.95 β 197.10 β β ββββββββββββββββββββΌβββββββββββββββΌβββββββββββββββΌβββββββββββββββΌβββββββββββββββ€ β β β Market Share (%) β 25.21 β 100.00 β 22.73 β 100.00 β β β β Cust.satisfactionβ 107 β 103 β 112 β 100 β β βββββββββββΌβββββββββββββββββββΌβββββββββββββββΌβββββββββββββββΌβββββββββββββββΌβββββββββββββββΌβββββββββββββ’ β BULK β Price (EUR/Unit) β 2700 β 2700 β ββββββββ β ββββββββ β β β BUYING β Revenue (Units) β 7000 β 19000 β ββββββββ β ββββββββ β β β β Sales (mEUR) β 18.90 β 51.30 β ββββββββ β ββββββββ β 18.90 β βββββββββββΌβββββββββββββββββββΌβββββββββββββββΌβββββββββββββββΌβββββββββββββββΌβββββββββββββββΌβββββββββββββ’ β MARKET 2β Price (FCU/Unit) β 2098 β 2255 β 6850 β 0 β β β β Sales (Units) β 4860 β 21772 β 0 β 0 β β β β Revenue (mEUR) β 13.76 β 66.28 β 0.00 β 0.00 β 13.76 β β ββββββββββββββββββββΌβββββββββββββββΌβββββββββββββββΌβββββββββββββββΌβββββββββββββββ€ β β β Market Share (%) β 22.32 β 100.00 β 0.00 β 100.00 β β β β Cust.satisfactionβ 85 β 79 β 111 β 107 β β β ββββββββββͺβββββββββββββββββββͺβββββββββββββββͺβββββββββββββββͺβββββββββββββββͺβββββββββββββββͺβββββββββββββ£ β TOTAL β Sales (Units) β 74262 β 288304 β 2500 β 11000 β β β β Revenue (mEUR) β 207.27 β 831.50 β 22.50 β 103.95 β 229.77 β βββββββββββ§βββββββββββββββββββ§βββββββββββββββ§βββββββββββββββ§βββββββββββββββ§βββββββββββββββ§βββββββββββββ ββββββββββββββββββββββββββββββ€ββββββββββββββββββββββββββββββ€βββββββββββββββββββββββββββββββββββββββββββ β REQUEST FOR BIDS β Bid awarded to Company 1 β Price (EUR) 1999 β ββββββββββββββββββββββββββββββ§ββββββββββββββββββββββββββββββ§βββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββββββ€ββββββββββββββββββββββββββββββ€ββββββββββββββββββββββββββββββ€βββββββββββββ β INVENTORY β PRODUCT 1 β PRODUCT 2 β TOTAL β β βββββββββββββββββββββββββββββͺββββββββββ€ββββββββββββββββββββͺββββββββββ€ββββββββββββββββββββͺβββββββββββββ£ β INPUT β β Inventory β β Inventory β Value of β β MATERIALS / PARTS βQuantity βββββββββββ¬ββββββββββ€Quantity βββββββββββ¬ββββββββββ€ Inventory β β β (Units) β(EUR/Un.)β (mEUR) β (Units) β(EUR/Un.)β (mEUR) β (mEUR) β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌβββββββββββββ’ β Initial inventory β 25168 β 351 β 8.84 β 0β 0 β 0.00 β 8.84 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌβββββββββββββ’ β + Quantity from supplier β 71000 β 350 β 24.85 β 0β 0 β 0.00 β 24.85 β β - Qty used in production β 71259 β 350 β 24.96 β 0β 0 β 0.00 β 24.96 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌβββββββββββββ’ β = Final inventory β 24909 β 350 β 8.73 β 0β 0 β 0.00 β 8.73 β ββββββββββββββββββββββββββββββ§ββββββββββ§ββββββββββ§ββββββββββ§ββββββββββ§ββββββββββ§ββββββββββ§βββββββββββββ ββββββββββββββββββββββββββββββ€ββββββββββββββββββββββββββββββ€ββββββββββββββββββββββββββββββ€βββββββββββββ β VALUE OF INVENTORY β PRODUCT 1 β PRODUCT 2 β TOTAL β β βββββββββββββββββββββββββββββͺββββββββββ€ββββββββββββββββββββͺββββββββββ€ββββββββββββββββββββͺβββββββββββββ£ β FINISHED PRODUCTS β β Inventory β β Inventory β Value of β β βQuantity βββββββββββ¬ββββββββββ€Quantity βββββββββββ¬ββββββββββ€ Inventory β β β (Units) β(EUR/Un.)β (mEUR) β (Units) β(EUR/Un.)β (mEUR) β (mEUR) β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌβββββββββββββ’ β Initial inventory β 0β 0 β 0.00 β 0β 0 β 0.00 β 0.00 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌβββββββββββββ’ β + Quantity produced β 74262 β 1849 β 137.28 β 0β 0 β 0.00 β 137.28 β β + Quantity purchased β β β β 2500 β 5750 β 14.38 β 14.38 β β - Quantity distributed β 74262 β 1849 β 137.28 β 2500 β 5750 β 14.38 β 151.66 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌβββββββββββββ’ β = Final inventory β 0β 0 β 0.00 β 0β 0 β 0.00 β 0.00 β ββββββββββββββββββββββββββββββ§ββββββββββ§ββββββββββ§ββββββββββ§ββββββββββ§ββββββββββ§ββββββββββ§βββββββββββββ TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 50 Market Results Market 1 + Market 2 Price (EUR/Unit) : Sales (Units) : Revenue (mEUR) : Market share (%) : Company Industry Price of own company Average price of industry incl. own Company Industry Company Industry Company company Sales of own company Total sales of industry Sales revenue of own company Total sales revenue of industry Market share as % of the sales for own company Bulk buying Price (EUR/Unit) : Sales (Units) : Revenue (mEUR) : Requests for bids Company Industry Company Industry Company Industry (The prices in the case of bulk buyers are fixed) Sales of own company Total sales of industry Revenue of own company Total revenue of industry Requests for bids: See Instructorβs Report I that shows the results from requests for bids from period 7. Note: The requests for bids are fulfilled by the new Product-1, if it has already been launched on the market. (It is not possible to simply clear Product 1-old from stock.) Inventory for input materials/parts Initial inventory : Quantity (Units) Quantity from supplier Quantity used in production : : Inventory values Closing inventory of previous period Values at the end of the previous Quantity (Units) Inventory values period Decision for additional purchases Purchasing values according to the Quantity (Units) Inventory values discount schedule in the instructorβs file Inventory units used in production Weighted average (based on total Quantity (Units) values in mEUR) The consumption of inventory is influenced by value analysis: Units to be produced / Value analysis index Opening inventory + Quantity from Inventory Values supplier - Quantity used in production Invent. value of quantity used in Notes: Final inventory : production (Euro/Unit) * Volume Closing Inventory Inventory for Finished Products Initial inventory : Quantity (Units) Quantity produced : Inventory values Quantity (Unit) Closing inventory of previous period Values at end of previous period Actual production volume Cost of Goods Manufactured (see Production Report) Cost of goods manufactured per unit Value is taken from reports "Cost Inventory value Accountingβ - (Unit-of-output costing). Volume * EUR/Unit. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 51 Quantity purchased / Subcontracting (Only for Product 2) : Quantity distributed : Quantity (Units) Values arise from participantsβ Costs (EUR/U) Inventory value decisions and volume-based price scale from instructorβs file. See above Quantity (Units) CGM Inventory value Quantity sold (Sales) Average value from opening inventory or costs and additions on the basis of total values in mEUR for Product 2 including costs for outside production See above. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 52 5.2.3 Production Lines - Environmental Technology βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 3 PRODUCTION LINES - ENVIRONMENTAL TECHNOLOGY β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β KEY DATA ON PRODUCTION LINES β βββββββββββββββββββββββββββββ¬βββββββββββ¬βββββββββββ¬βββββββββββ¬βββββββββββ¬βββββββββββ¬βββββββββββ’ β β Procure- βAcquisit.-β RemainingβDepreciat.β Net book β Other β β β ment β value β life β (mEUR/ β value β FC β β Production lines β period β (mEUR) β (Periods)β Period) β (mEUR) β (mEUR) β βββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββΌβββββββββββΌβββββββββββΌβββββββββββΌβββββββββββ’ β Type C Line No. 1 β 1 β 30.00 β 8 β 2.00 β 16.00 β 2.50 β β Type C Line No. 2 β 2 β 22.50 β 9 β 1.50 β 13.50 β 2.50 β β Type C Line No. 3 β 4 β 30.00 β 11 β 2.00 β 22.00 β 2.50 β βββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββΌβββββββββββΌβββββββββββΌβββββββββββΌβββββββββββ’ β Total β β 82.50 β β 5.50 β 51.50 β 7.50 β βββββββββββββββββββββββββββββ§βββββββββββ§βββββββββββ§βββββββββββ§βββββββββββ§βββββββββββ§βββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β CAPACITIES OF PRODUCTION LINES β βββββββββββββββββββββββββββββ¬βββββββββββββ¬βββββββββββββββ¬βββββββββββββββ¬βββββββββββββ¬ββββββββββ’ β β Pot. cap. β Maintenance βRationalizat. β Actual cap.β Enviro. β β Production lines β (Units) β (mEUR)βFactorβ mEUR βFactorβ (Units) β index β βββββββββββββββββββββββββββββΌβββββββββββββΌββββββββΌβββββββΌββββββββΌβββββββΌβββββββββββββΌββββββββββ’ β Type C Line No. 1 β 22000 β 0.8 β 0.95 β 3.0 β 1.10 β 22990 β 95.0 β β Type C Line No. 2 β 22000 β 0.8 β 0.95 β 3.0 β 1.10 β 22990 β 95.0 β β Type C Line No. 3 β 22000 β 0.8 β 0.95 β 0.0 β 1.00 β 20900 β 95.0 β βββββββββββββββββββββββββββββΌβββββββββββββΌββββββββΌβββββββΌββββββββΌβββββββΌβββββββββββββΌββββββββββ’ β Total β 66000 β 2.4 β β 6.0 β β 66880 βΟ 95.0 β βββββββββββββββββββββββββββββ§βββββββββββββ§ββββββββ§βββββββ§ββββββββ§βββββββ§βββββββββββββ§ββββββββββ Note: Rationalization is cumulative from P0 βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β PRODUCTION STAFF : AVAILABILITY AND PRODUCTIVITY β ββββββββββββββββββββββββββββββββββββββββ¬βββββββββββ¬βββββββββββββββββββββββββββββββββ¬βββββββββββ’ β Workforce (No. of ppl)β 1415 β Process optimization index β 1.00 β β Newly hired (No. of ppl)β 196 β * Adaptation β 0.97 β β - Loss from absent. (No. of ppl)β 87 β * Staff competence index β 1.04 β β β β * Motivation index β 1.01 β ββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββββββββββββββββββββββββΌβββββββββββ’ β = Available staff (No. of ppl)β 1328 β = Productivity index I β 1.03 β ββββββββββββββββββββββββββββββββββββββββ§βββββββββββ§βββββββββββββββββββββββββββββββββ§βββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β EXPERIENCE AND PRODUCTIVITY β βββββββββββββββββ¬βββββββββββββββββββββββ¬βββββββββββ¬βββββββββββββββββββββββββββββββββ¬βββββββββββ’ β Product 1 β Cum.prod.prev.period β 437195 β Prod. index II (Period) β 1.11 β β Product 2 β Cum.prod.prev.period β 0 β Prod. index II (Period) β 1.00 β βββββββββββββββββ§βββββββββββββββββββββββ§βββββββββββ§βββββββββββββββββββββββββββββββββ§βββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β UTILIZATION RATE OF PRODUCTION LINES β βββββββββββββββββββββββββββββ¬βββββββββββββ¬ββββββββββββββββ¬ββββββββββββββββ¬βββββββββββββββββββββ’ β β Production βProduction cap.βProduct. staff β Allocation in % β β β (Units) βFactorβRequiredβFactorβRequiredβ Req.cap.β Req.pers.β βββββββββββββββββββββββββββββΌβββββββββββββΌβββββββΌβββββββββΌβββββββΌβββββββββΌββββββββββΌβββββββββββ’ β Product 1 β 74262 β 0.9 β 66836 β 57 β 1308 β 99.9 β 98.5 β β Product 2 β 0 β 2.0 β 0 β 18 β 0 β 0.0 β 0.0 β βββββββββββββββββββββββββββββΌβββββββββββββΌβββββββΌβββββββββΌβββββββΌβββββββββΌββββββββββΌβββββββββββ’ β Total β 74262 β β 66836 β β 1308 β 99.9 β 98.5 β βββββββββββββββββββββββββββββΌβββββββββββββΌβββββββΌβββββββββΌβββββββΌβββββββββΌββββββββββΌβββββββββββ’ β Utilization (%) β β β 99.9 β β 98.5 β β β βββββββββββββββββββββββββββββ§βββββββββββββ§βββββββ§βββββββββ§βββββββ§βββββββββ§ββββββββββ§βββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β ENVIRONMENTAL TECHNOLOGY β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ¬βββββββββββββββββββββββββββ’ β Environmental ratings of production lines (Index) β 95.00 β β Cumulative investment in environmental plants (mEUR) β 1.50 β β Improvement of environmental ratios (Points) β 1.00 β β Environmental damage indicator for the company (Index) β 96.00 β β Tax payable to environmental authority next period (mEUR) β 0.83 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ§βββββββββββββββββββββββββββ Note: The program calculates values with more decimal places than are shown in the reports. So when the values are recalculated and compared with the rounded values in the reports, there may be slight discrepancies in the results. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 53 Key data Production lines : Procurement period : Acquisition value Remaining life (Periods) : : Depreciation (mEUR/per.) Net book value (mEUR) : : : Other fixed costs (mEUR) Type and identification number of the individual machines. The production lines differ - despite being the same model - with regard to their capacities and the environmental damage they cause. Individual machines may be scrapped E.g. Info - 8 in Period 2 = the production line was purchased 10 periods ago. Original acquisition value of the line Remaining economic life of the production lines in periods. The remaining life of the lines is actually βendlessβ, i.e. depreciated lines are available for use in production. (Cf. Line Type A, No. 3, and 4). Depreciation value in the period Acquisition value - cumulative depreciation Other fixed costs of the production lines (E.g. Maintenance and insurance costs as a result of contracts) Capacities of production lines For the production of one Copy I-old, one unit of available production line capacity is required (production of one Copy I-new = 0.9 capacity units). The available production capacity in a period can be influenced by investments, disinvestments, maintenance, rationalization, and overtime of the production staff. Potential capacity : Maximum available units of capacity with 100% utilization (Units) Maintenance : mEUR Expenditure on maintenance (Decision) Factor Availability of production line Rationalization : Actual capacity (Units) : (0,97 = 97% availability) cum.mEUR Expenses on rationalization Factor Achieved rationalisation factor Potential capacity * Maintenance factor * Rationalization Environm. Index : factor Environmental damage index of production lines Production staff: Availability and Productivity Workforce : Entire workforce in production Absenteeism : Given in no. of persons. Influences on absenteeism: non-salary staff costs, lean production projects, environmental index of production lines (end of previous period), cumulated training measures, staff increases (recruitment), and staff reductions (dismissals). The absenteeism cannot be brought to less than 1.5 β 2 % because of the average rate of paid sick leave. Utilizable staff : As affected by total amount of absenteeism TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 54 Process optimization Index : Staff competence index : Productivity index I Experience and Production Cumul.prod.prev.period. Product 1 and 2 Productivity index II Product 1 and 2 Achieved index With the help of lean production projects the work procedures in production can be rationalized, which leads to an increased rate of productivity among the workforce. An achieved index value loses effectiveness by 0.01 points per period. In Period 0 the lean production index is 1.00. Achieved index Expenses on training production staff increase the competence of employees and leads to an increase in productivity. The expenses for training increase the staff competence index (Period 0 = 1.00). This value is reduced by 0.01 points per period as a result of staff βforgettingβ how to do things. Lean Production Index * Productivity index : The cumulative production up to the previous period is the basis for the calculation of Productivity Index II. This index is calculated separately for Product 1 and 2 : Achieved index Utilization rate of production lines Production (Units) : Actual production quantity Production capacity : Factor Required units Production staff : capacity in order to Required Factor produce the actual production quantity. No. of products that one person produces in a period = βnormalβ production capacity of one employee (see data for the periods) * productivity index I * productivity index II Required Staff required Req.Cap. Required / Available in % Req. pers. Required/ Utilizable in % Allocation in % Utilisation (%) of produce one unit of the finished product. Required units of capacity in order to : Values above 100.0% mean overtime. Note: In the case of overtime β of production lines and/or production staff - additional costs equal to 2.5 mEUR are incurred for supervision and operation. For the production staff, there is an additional overtime premium of 25% due to wages and salaries that arises during the overtime period. These costs are listed in the companyβs cost accounting records. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 55 Environmental Technology By investing in environmental technology, such as additional purification plants and filters (end-of-pipe investments), you can reduce the total environmental damage caused by your company. (The environmental index of the production lines can only be improved by replacing the lines.) The environmental damage indicator of a company has a direct influence on the following: sales, production staff absenteeism, corporate image, and the share price of the company. Environmental index of production lines (Index) Cumulative investment in environmental plants (mEUR) Improvement of environmental indices (points) : Cumulative value from report : Decisions : Environmental damage indicator for the company (Index) Tax payable to Environmental Authorities next period (mEUR) : Result based on the cumulative investments in environmental plants. You can use the following values as a guideline: 3 mEUR - 1 point improvement / 5 mEUR - 2 points improvement / 20 mEUR β 3.5 points / 30 mEUR - 6 points. Environmental index of production lines + improvement : Environmental tax is to be paid when the environmental damage indicator is under 100. Guidelines: Index 98 - Tax 0.5 mEUR / Index 95 - Tax 1.0 mEUR / Index 90 - Tax 2.5 mEUR / Index 85 - Tax 5 mEUR TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 56 5.2.4 Human Resources and Product Development ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 4 HUMAN RESOURCES AND PRODUCT DEVELOPMENT β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β β β STAFF BREAKDOWN BY DEPARTMENT (COST CENTER) β β β β βββββββββββββββββββββββββββββ€ββββββββββββ€ββββββββββββ€ββββββββββββ€ββββββββββββ€ββββββββββββ€ββββββββββββ£ β Number of persons βPurchasing β Admin. βProduction β R & D βSales/Dist.β Total β ββββββββββββββββββββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββ’ β Initial workforce β 26 β 232 β 1305 β 84 β 157 β 1804 β ββββββββββββββββββββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββ’ β + Hired β 11 β 63 β 196 β 0 β 13 β 283 β β - Dismissed β 0 β 0 β 0 β 0 β 0 β 0 β β - Attrition β 2 β 12 β 86 β 4 β 13 β 117 β ββββββββββββββββββββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββ’ β = Final workforce β 35 β 283 β 1415 β 80 β 157 β 1970 β β βββββββββββββββββββββββββββββͺββββββββββββͺββββββββββββͺββββββββββββͺββββββββββββͺββββββββββββͺββββββββββββ£ β Wages & Salaries (1) mEURβ 1.30 β 9.62 β 52.36 β 4.24 β 7.69 β 75.21 β β Turnover/Training mEURβ 0.15 β 0.88 β 5.74 β 0.00 β 0.18 β 6.96 β β Non-sal. staff costs mEURβ 0.51 β 3.75 β 20.42 β 1.65 β 3.00 β 29.33 β β Pension reserve mEURβ 0.08 β 0.58 β 3.14 β 0.25 β 0.46 β 4.51 β ββββββββββββββββββββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββΌββββββββββββ’ β Total staffing costs mEURβ 2.03 β 14.83 β 81.66 β 6.15 β 11.34 β 116.01 β β βββββββββββββββββββββββββββββ§ββββββββββββ§ββββββββββββ§ββββββββββββ§ββββββββββββ§ββββββββββββ§ββββββββββββ£ β β β Non-salary staff costs as % of wages and salaries: 39.0 β β Training (Production) mEUR: 3.0 β β Motivation of staff (Index): 92 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ (1) Without overtime costs ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β β β PRODUCT DEVELOPMENT β β β β βββββββββββββββββββββββββββββ€ββββββββββββββββββββββββ€ββββββββββββββββββββββββ€ββββββββββββββββββββββββ£ β β TECHNOLOGY β ECOLOGY β VALUE ANALYSIS β ββββββββββββββββββββββββββββββΌββββββββββββββββ¬ββββββββΌββββββββββββββββ¬ββββββββΌββββββββββββββββ¬ββββββββ’ β β (mEUR) β β (mEUR) β β (mEUR) β β β PRODUCTS βPeriod β Cumul.β Index βPeriod β Cumul.β Index βPeriod β Cumul.β Index β ββββββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β Product 1-new β 1.6 β 16.2 β 111.2 β 0.0 β 9.5 β 107.7 β 1.0 β 6.0 β 104.2 β ββββββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β Product 2-new β 2.7 β 18.0 β 101.2 β 3.0 β 9.0 β 101.8 β 1.0 β 3.0 β 100.0 β ββββββββββββββββββββββββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ Staff breakdown in cost centers : The staff costs are shown here without overtime. The non-salary staff costs have a direct influence on the staff attrition rate, as well as on staff absenteeism in the individual cost centers. Product development : The number of employees in the areas of Purchasing and Administration depend on the sales revenue of the company. When sales revenue fluctuates, the required number of employees is automatically adjusted through recruitment and dismissals. Nevertheless, in Administration there are costs independent of (fixed costs administration), in Period 0 of 2.5 mEUR. See the explanatory notes in the instructorβs report TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 57 5.2.5 Cost Type, Cost Center Accounting ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 5 COST TYPE, COST CENTER ACCOUNTING β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β β β COST TYPE ACCOUNTING (mEUR) β β β β βββββββββββββββββββββββββ€βββββββββββββ€βββββββββββββββ€ββββββββββββββββββββββββββ£ β β β β Direct costs β β β Total β Overββββββββββββββ¬βββββββββββββ’ β COST TYPES β costs β head β Product 1 β Product 2 β β βββββββββββββββββββββββββͺβββββββββββββͺβββββββββββββββͺβββββββββββββͺβββββββββββββ£ β MATERIAL COSTS β β β β β β Input materials/parts β 24.96 β β 24.96 β 0.00 β β Factory materials β 2.97 β β 2.97 β 0.00 β ββββββββββββββββββββββββββΌβββββββββββββΌβββββββββββββββΌβββββββββββββΌβββββββββββββ’ β PERSONNEL COSTS β β β β β β Wages and Salaries (1)β 75.20 β 19.69 β 54.16 β 1.36 β β Turnover/Training β 6.96 β 6.96 β β β β Non-salary staff costsβ 29.33 β 7.68 β 21.12 β 0.53 β β Pension reserve β 4.51 β 1.18 β 3.25 β 0.08 β ββββββββββββββββββββββββββΌβββββββββββββΌβββββββββββββββΌβββββββββββββΌβββββββββββββ’ β DEPRECIATION β β β β β β Buildings β 0.25 β 0.25 β β β β Production lines β 5.50 β 5.50 β β β β Environmental technol.β 0.15 β 0.15 β β β ββββββββββββββββββββββββββΌβββββββββββββΌβββββββββββββββΌβββββββββββββΌβββββββββββββ’ β OTHER COSTS β β β β β β Misc. fixed costs β 7.50 β 7.50 β β β β Maint./Rationalizationβ 3.40 β 3.40 β β β β Process optimization β 1.00 β 1.00 β β β β Environmental tax β 0.83 β 0.83 β β β β Rework/Scrap β 6.84 β 0.00 β 6.84 β 0.00 β β Storage costs β 1.25 β 1.25 β β β β Ads/Mkt Research/CI β 12.60 β 2.10 β 9.50 β 1.00 β β Misc. R & D costs β 5.00 β 0.00 β 1.00 β 4.00 β β Transport costs β 5.81 β 0.00 β 5.17 β 0.64 β ββββββββββββββββββββββββββΌβββββββββββββΌβββββββββββββββΌβββββββββββββΌβββββββββββββ’ β TOTAL COSTS β 194.07 β 57.49 β 128.97 β 7.61 β ββββββββββββββββββββββββββ§βββββββββββββ§βββββββββββββββ§βββββββββββββ§βββββββββββββ (1) Overtime included Direct costs : Overhead : Costs that one can allocate directly based on production output (of products). The individual costs from the columns of the cost center accounts Personnel Costs Wages/Salaries Overheads Direct costs Production 3.20 (due to absenteeism, + 30.02 + 5.20 (s.u.) personnel not working at (possibly incl. overtime) full capacity) Administration 2.50 (fixed costs) Purchasing, Sales, R&D 1.09 + 9.20 + 2.50 Total 18.48 + 4.51 + 2.59 (s.u.) 34.53 + 7.79 (s.u.) Explanatory notes on staff costs (direct costs) in cost type accounting: The total from the direct costs of the cost centers Production and Administration is stated per product. The direct costs of production (prime costs) are allocated to the products in proportion to the required number of production staff. The required number of administrative staff is calculated per product in relation to the sales revenue, whereas for Product 1 and Product 2 different tables are relevant (cf. Userβs manual, point 3.5.3.2 for Product 1 and scenario information from the relevant period for Product 2). Note: The fixed administration costs are deducted for Product 1 (2.5 mEUR). Wages and Salaries (Direct costs) in the example (in mCU): Sales rev. Prod. 1 158.84 mEUR β Admin. staff requirement: Sales rev. Prod 2 63.84 mEUR β Admin. staff requirement: Total requirement 243 persons 95 persons 312 persons TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 58 Direct costs Production Direct costs Admin.* Total Product 1 Staff required 883 * 74 thEUR/person 219 * 32 thEUR 7.01 - Fixed costs - 2.50 Personnel Costs Misc. fixed costs: Maintenance Rework Other Costs R&D 30.02 Product 2 Staff required 153 * 34 thEUR 81 * 32 thEUR 4.51 34.53 5.20 2.59 7.79 Staff costs and Wages and Salaries are shown here where appropriate. Overtime gives rise to personnel costs and step fixed costs. In case of overtime: available staff costs Result of overtime: Additional premium on overtime only for required staff (not no. of people on the payroll, not utilizable staff) No. of persons (see report production lines) * salaries/ wages (without non-salary staff costs and pension reserve) * overtime in % + supplement for overtime in % = other fixed costs of the production lines + step fixed costs overtime (e.g. 2.50 mEUR) + other fixed costs, given in the scenarios. + costs for using the Planning Models, which appear under the account called Administration if the participant used them on his computer. Not only for the production lines (decision), but also for Administration (see period data) Dependent on non-salary staff costs, technology and value analysis. This is shown as a % of the payroll = (β Direct production costs (prime costs) for Product 1 and 2 * (β %Factor curves 41 + 42 + 43); proportionate allocation to Product 1 and 2 according to staff utilization, see Production report) Ecology and Value Analysis Note: Please note that the numbers are rounded up. The program calculates the results with more decimal places compared to the figures of the reports. ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β β β COST CENTER ACCOUNTING (mEUR) β β β β βββββββββββββββββββββββββ€βββββββββ€βββββββββββββββββββββββββββββββββββββββββββββ£ β β β COST CENTERS β β β ββββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬βββββββββ’ β COST TYPES β TOTAL β Purch. β Prod. β R & D β Sales β Admin. β β βββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β PERSONNEL COSTS β β β β β β β β Wages and Salaries β 19.69 β 1.30 β 3.96 β 4.24 β 7.69 β 2.50 β β Turnover/Training β 6.96 β 0.15 β 5.74 β 0.00 β 0.18 β 0.88 β β Non-salary staff.costsβ 7.68 β 0.51 β 1.54 β 1.65 β 3.00 β 0.98 β β Pension reserve β 1.18 β 0.08 β 0.24 β 0.25 β 0.46 β 0.15 β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β DEPRECIATION β β β β β β β β Buildings β 0.25 β 0.01 β 0.17 β 0.01 β 0.01 β 0.04 β β Production lines β 5.50 β β 5.50 β β β β β Environmental technol.β 0.15 β β 0.15 β β β β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β OTHER COSTS β β β β β β β β Misc. fixed costs β 7.50 β 0.00 β 7.50 β 0.00 β 0.00 β 0.00 β β Maint./Rationalizationβ 3.40 β β 2.40 β β β 1.00 β β Process optimization β 1.00 β β 1.00 β β β β β Environmental tax β 0.83 β β 0.83 β β β β β Storage costs β 1.25 β 1.25 β β β 0.00 β β β Ads/Mkt Research/CI β 2.10 β β β β 2.10 β β β Misc. R & D costs β 0.00 β β β 0.00 β β β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β TOTAL COSTS β 57.49 β 3.29 β 29.04 β 6.16 β 13.45 β 5.54 β ββββββββββββββββββββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ Staff costs/Wages and Salaries (Production): If these are > 0, then a portion of the production staff is not being fully utilized leading to costs for absenteeism. (cf. Report βProduction Plants - Environment). These costs are presented here as overhead costs. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 59 5.2.6 Cost Accounting (Unit-of-Output Costing) ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 6 COST ACCOUNTING (Unit-of-Output Costing) β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ€ββββββββββββββ€ββββββββββββββ€ββββββββββββββ β β β β β β COST ACCOUNTING (Costs in mEUR) β TOTAL β PRODUCT 1 β PRODUCT 2 β β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββͺββββββββββββββͺββββββββββββββͺββββββββββββββ£ β Input material costs β 24.96 β 24.96 β 0.00 β β + Factory material costs β 2.97 β 2.97 β 0.00 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββββββΌββββββββββββββΌββββββββββββββ’ β = Direct material costs β 27.93 β 27.93 β 0.00 β β + Indirect material costs β 3.29 β 3.29 β 0.00 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββββββΌββββββββββββββΌββββββββββββββ’ β = Total material costs β 31.23 β 31.23 β 0.00 β β Direct production costs (1) β 77.01 β 77.01 β 0.00 β β + Production overhead (Cost center: Production) β 29.04 β 29.04 β 0.00 β β = Total production costs β 106.06 β 106.06 β 0.00 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββββββΌββββββββββββββΌββββββββββββββ’ β = COST OF GOODS MANUFACTURED CGM β 137.28 β 137.28 β 0.00 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββββββΌββββββββββββββΌββββββββββββββ’ β+R&D Direct costs (Ecology + Value Analysis)β 5.00 β 1.00 β 4.00 β β+ Overhead (Cost center: R & D) β 6.16 β 5.56 β 0.60 β β + Sales/Dist. Direct costs (Ads + Transport) β 16.31 β 14.67 β 1.64 β β+ Overhead (Cost center: Sales) β 13.45 β 12.13 β 1.32 β β + Admin. Direct costs (2) β 10.33 β 8.35 β 1.97 β β+ Overhead (Cost center: Admin.) β 5.54 β 5.00 β 0.54 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββββββΌββββββββββββββΌββββββββββββββ’ β = COST OF PRODUCTION β 194.07 β 184.00 β 10.07 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ§ββββββββββββββ§ββββββββββββββ§ββββββββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ€ββββββββββββββ€ββββββββββββββ β β β β β COST ACCOUNTING (Costs in EUR/Unit) β PRODUCT 1 β PRODUCT 2 β β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββͺββββββββββββββͺββββββββββββββ£ β Input material costs β 336 β 0 β β + Factory material costs β 40 β 0 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββββββΌββββββββββββββ’ β = Direct material costs β 376 β 0 β β + Indirect material costs β 44 β 0 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββββββΌββββββββββββββ’ β = Total material costs β 420 β 0 β β Direct production costs (1) β 1037 β 0 β β + Production overhead (Cost center: Production) β 391 β 0 β β = Total production costs β 1428 β 0 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββββββΌββββββββββββββ’ β = COST OF GOODS MANUFACTURED (CGM) β 1849 β 0 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββββββΌββββββββββββββ’ β+R&D Direct costs (Ecology + Value Analysis) β 13 β β β+ Overhead (Cost center: R & D) β 75 β β β + Sales/Distribution Direct costs (Ads + Transport) β 198 β β β+ Overhead (Cost center: Sales) β 163 β β β + Administration Direct costs (2) β 113 β β β+ Overhead (Cost center: Admin.) β 67 β β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββββββΌββββββββββββββ’ β = COST OF PRODUCTION β 2478 β β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ§ββββββββββββββ§ββββββββββββββ (1) Wages or salaries + non-salary staff costs + pension reserve + rework (2) Wages or salaries administration - FC administration + non-salary staff costs + pension reserve This block does not appear when production is subcontracted. The basis for the allocation of overhead to the products can be found in the instructorβs file "Instructorβs Data - Cost Allocationsβ. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 60 5.2.7 Contribution Margins βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 7 CONTRIBUTION MARGINS β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββ€βββββββββββββββββββββββββββββββββββββββββββββ€βββββββββββββββββββββββββββ€βββββββββ β β β β β β β PRODUCT 1 β PRODUCT 2 β TOTAL β β CONTRIBUTION MARGINS ββββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬βββββββββΌβββββββββ¬βββββββββ¬βββββββββΌβββββββββ’ β (mEUR) βMarket 1β Bulk β Bids βMarket 2βTotal P1βMarket 1βMarket 2βTotal P2β β β βββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β SALES REVENUE β 174.60 β 18.90 β β 13.76 β 207.27 β 22.50 β 0.00 β 22.50 β 229.77 β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β - Direct material costsβ 23.47 β 2.63 β β 1.83 β 27.93 β 14.38 β 0.00 β 14.38 β 42.31 β β - Direct prod. costs β 64.71 β 7.26 β β 5.04 β 77.01 β 0.00 β 0.00 β 0.00 β 77.01 β β - Transport costs β 4.37 β 0.00 β β 0.80 β 5.17 β 0.64 β 0.00 β 0.64 β 5.81 β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = CONTRIBUTION MARGIN Iβ 82.05 β 9.01 β β 6.09 β 97.15 β 7.49 β 0.00 β 7.49 β 104.64 β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β - Material FC β 2.77 β 0.31 β β 0.22 β 3.29 β 0.00 β 0.00 β 0.00 β 3.29 β β - Production FC β 24.40 β 2.74 β β 1.90 β 29.04 β 0.00 β 0.00 β 0.00 β 29.04 β β - Sales FC (product) β 7.00 β 0.00 β β 2.50 β 9.50 β 0.50 β 0.50 β 1.00 β 10.50 β β - Admin. FC(product) β 7.02 β 0.79 β β 0.55 β 8.35 β 1.97 β 0.00 β 1.97 β 10.33 β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = CONTRIBUT. MARGIN II β 40.85 β 5.17 β β 0.93 β 46.96 β 5.02 β -0.50 β 4.52 β 51.47 β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β - R & D FC (product) β 0.84 β 0.09 β β 0.07 β 1.00 β 4.00 β 0.00 β 4.00 β 5.00 β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = CONTRIBUT. MARGIN IIIβ 40.01 β 5.08 β β 0.87 β 45.96 β 1.02 β -0.50 β 0.52 β 46.47 β ββββββββββββββββββββββββββΌβββββββββ΄βββββββββ΄βββββββββ΄βββββββββΌβββββββββΌβββββββββ΄βββββββββΌβββββββββΌβββββββββ’ β - FC (company) β β β β β β β Research β β 5.56 β β 0.60 β 6.16 β β Sales β β 12.13 β β 1.32 β 13.45 β β Administration β β 5.00 β β 0.54 β 5.54 β ββββββββββββββββββββββββββΌββββββββββββββββββββββββββββββββββββΌβββββββββΌββββββββββββββββββΌβββββββββΌβββββββββ’ β = CONTRIBUT. MARGIN IV β β 23.27 β β -1.95 β 21.32 β ββββββββββββββββββββββββββ§ββββββββββββββββββββββββββββββββββββ§βββββββββ§ββββββββββββββββββ§βββββββββ§βββββββββ ββββββββββββββββββββββββββ€βββββββββββββββββββββββββββββββββββββββββββββ€βββββββββββββββββββββββββββ€βββββββββ β β β β β β β PRODUCT 1 β PRODUCT 2 β β β CONTRIBUTION MARGINS ββββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬βββββββββΌβββββββββ¬βββββββββ¬βββββββββΌβββββββββ’ β (EUR/Unit) βMarket 1β Bulk β Bids βMarket 2βAverage βMarket 1βMarket 2βAverage β β β βββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β PRICE β 2798 β 2700 β β 2832 β 2791 β 9000 β 0 β 9000 β β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β - Direct material costsβ 376 β 376 β β 376 β 376 β 5750 β 0 β 5750 β β β - Direct prod. costs β 1037 β 1037 β β 1037 β 1037 β 0β 0β 0β β β - Transport costs β 70 β 0β β 165 β 70 β 255 β 0β 255 β β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = CONTRIBUTION MARGIN Iβ 1315 β 1287 β β 1254 β 1308 β 2995 β 0 β 2995 β β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β - Material FC β 44 β 44 β β 44 β 44 β 0β 0β 0β β β - Production FC β 391 β 391 β β 391 β 391 β 0β 0β 0β β β - Sales FC (product) β 112 β 0β β 514 β 128 β 200 β 0β 400 β β β - Admin. FC (product) β 113 β 113 β β 113 β 113 β 789 β 0β 789 β β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = CONTRIBUT. MARGIN II β 655 β 739 β β 192 β 632 β 2006 β 0 β 1806 β β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β - R & D FC (product) β 13 β 13 β β 13 β 13 β 1600 β 0 β 1600 β β ββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = CONTRIBUT. MARGIN IIIβ 641 β 725 β β 178 β 619 β 406 β 0β 206 β β ββββββββββββββββββββββββββΌβββββββββ΄βββββββββ΄βββββββββ΄βββββββββΌβββββββββΌβββββββββ΄βββββββββΌβββββββββΌβββββββββ’ β - FC (company) β β β β β β β Research β β 75 β β 241 β β β Sales β β 163 β β 527 β β β Administration β β 67 β β 217 β β ββββββββββββββββββββββββββΌββββββββββββββββββββββββββββββββββββΌβββββββββΌββββββββββββββββββΌβββββββββΌβββββββββ’ β = CONTRIBUT. MARGIN IV β β 313 β β -779 β β ββββββββββββββββββββββββββ§ββββββββββββββββββββββββββββββββββββ§βββββββββ§ββββββββββββββββββ§βββββββββ§βββββββββ The Contribution Margins in mEUR divided by the volume sold are the basis for the contribution margins per unit. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 61 Explanatory notes on the calculation of contribution margins using the example Period 0, Company 1 Contribution Margins Period 0 Start Period 0 Opening inventory : 8000 Units 2020 EUR/unit Cost of Goods Manufactured (CGM) CGM Distribution of (EUR/u.) EUR/Unit Units mEUR CGM Start Per. 0 2020 x 29.83 % DM = 2020 x 2.92 % 602.57 x 8000 = 4.82 IM = 58.98 x 8000 = 0.47 2020 x 40.24 % DPC = 812.85 x 8000 = 6.50 2020 x 27.01 % = 545.60 x 8000 = 34.36 2020.00 x 8000 = 16.16 x x x x 40000 40000 40000 40000 PO Addition from production Period 0 : 40000 Values from Unit of outp. accounting cf. next page EUR/Unit Direct Material (DM) Indirect Material (IM) Direct Costs (DPC) Production Overhead (PO) : : : : 577.00 39.00 945.00 491.00 Units mEUR = = = = 23.08 1.56 37.80 19.64 2052.00 82.08 Inventory value Interim inventory Period 0 mEUR DM IM DPC PO Sales = : : : : 4.82 0.47 6.50 4.36 Quantity distributed + + + + mEUR 23.08 1.56 37.80 19.64 = = = = Units EUR/Unit 27.90 2.03 44.30 24.00 / / / / 48000 48000 48000 48000 = = = = 581.26 42.33 922.97 500.10 98.24 / 48000 = 2046.67 = 430000 units Example DM for Contribution Costing = 43000 x 581.26 EUR = 24.99 mEUR DM = IM = DPC = PO = CGM = Direct Material Indirect Material Direct (Production) Costs Production Overheads Cost of Goods Manufactured TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 62 Explanatory notes on the calculation of Contribution Margins using the example Period 0, Company 1 Data for contribution costing Period 0 βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 6 COST ACCOUNTING (Unit-of-output costing) β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ€βββββββββββββββββ β β β β COST ACCOUNTING (Costs in mEUR) β β β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββͺβββββββββββββββββ£ β Input material costs β 21.09 β β + Factory material costs β 2.00 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββ’ β = Direct material costs β 23.09 β β + Indirect material costs β 1.56 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββ’ β = Total material costs β 24.65 β β Direct production costs (1) β 37.80 β β + Production overhead (Cost center: Production) β 19.63 β β = Total production costs β 57.42 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββ’ β = COST OF GOODS MANUFACTURED CGM β 82.07 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββ’ β + R & D Direct costs (Ecology + Value Analysis)β 3.50 β β + Overhead (Cost center: R & D) β 2.19 β β + Sales/Distribution Direct costs (Ads + Transport) β 7.07 β β + Overhead (Cost center: Sales) β 8.52 β β + Admin. Direct costs (2) β 4.58 β β + Overhead (Cost center: Admin.) β 4.78 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββ’ β = COST OF PRODUCTION β 112.71 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ§βββββββββββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ€βββββββββββββββββ β β β β COST ACCOUNTING (Costs in EUR/unit) β β β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββͺβββββββββββββββββ£ β Material costs β 527 β β + Factory material costs β 50 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββ’ β = Direct material costs β 577 β β + Indirect material costs β 39 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββ’ β = Material costs β 616 β β Production direct costs (1) β 945 β β + Production overheads (cost center Production) β 491 β β = Total Production costs β 1436 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββ’ β = COST OF GOODS MANUFACTURED CGM β 2052 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββ’ β + R & D Direct costs (Ecology + Value Analysis)β 88 β β + Overhead (Cost center: R & D) β 55 β β + Sales/Distribution Direct costs (Ads + Transport) β 177 β β + Overhead (Cost center: Sales) β 213 β β + Administration Direct costs (2) β 114 β β + Overhead (Cost center: Admin.) β 119 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββ’ β = COST OF PRODUCTION β 2818 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ§βββββββββββββββββ (1) Wages or salaries + non-salary staff costs + pension reserve + rework (2) Wages or salaries admin. - FC admin. + non-salary staff costs + pension reserv TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 63 Explanatory notes on the calculation of Contribution Margins using the example of Period 0, Company 1 Contribution costing Period 0 ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 7 CONTRIBUTION MARGINS β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββββββ€ββββββββββββββββββββββββββββββββββββββββββββββββββ β β β β β PRODUCT 1 β β CONTRIBUTION MARGINS βββββββββββ¬ββββββββββ¬ββββββββββ¬ββββββββββ¬ββββββββββ’ β (mEUR) β Market 1β Bulk β Bids β Market 2β Total β β βββββββββββββββββββββββββββββͺββββββββββͺββββββββββͺββββββββββͺββββββββββͺββββββββββ£ β SALES REVENUE β 129.00 β β β β 129.00 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β - Direct material costs β 25.00 β β β β 25.00 β β - Direct production costsβ 39.68 β β β β 39.68 β β - Transport costs β 1.08 β β β β 1.08 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β = CONTRIBUTION MARGIN I β 63.24 β β β β 63.24 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β - Material FC β 1.82 β β β β 1.82 β β - Production FC β 21.49 β β β β 21.49 β β - Sales FC (product) β 6.00 β β β β 6.00 β β - Admin. FC(product) β 4.58 β β β β 4.58 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β = CONTRIBUTION MARGIN II β 29.35 β β β β 29.35 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β - R & D FC (product) β 3.50 β β β β 3.50 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β = CONTRIBUTION MARGIN IIIβ 25.85 β β β β 25.85 β ββββββββββββββββββββββββββββββΌββββββββββ΄ββββββββββ΄ββββββββββ΄ββββββββββΌββββββββββ’ β - FC (company) β β β β Research β β 2.19 β β Sales β β 8.52 β β Administration β β 4.78 β ββββββββββββββββββββββββββββββΌββββββββββββββββββββββββββββββββββββββββΌββββββββββ’ β = CONTRIBUTION MARGIN IV β β 10.36 β ββββββββββββββββββββββββββββββ§ββββββββββββββββββββββββββββββββββββββββ§ββββββββββ ββββββββββββββββββββββββββββββ€ββββββββββββββββββββββββββββββββββββββββββββββββββ β β β β β PRODUCT 1 β β CONTRIBUTION MARGINS βββββββββββ¬ββββββββββ¬ββββββββββ¬ββββββββββ¬ββββββββββ’ β (EUR/Unit) β Market 1β Bulk β Bids β Market 2β Average β β βββββββββββββββββββββββββββββͺββββββββββͺββββββββββͺββββββββββͺββββββββββͺββββββββββ£ β PRICE β 3000 β β β β 3000 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β - Direct material costs β 581 β β β β 581 β β - Direct production costsβ 923 β β β β 923 β β - Transport costs β 25 β β β β 25 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β = CONTRIBUTION MARGIN I β 1471 β β β β 1471 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β - Material FC β 42 β β β β 42 β β - Production FC β 500 β β β β 500 β β - Sales FC (product) β 140 β β β β 140 β β - Admin. FC(product) β 106 β β β β 106 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β = CONTRIBUTION MARGIN II β 683 β β β β 683 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β - R & D FC (product) β 81 β β β β 81 β ββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β = CONTRIBUTION MARGIN IIIβ 601 β β β β 601 β ββββββββββββββββββββββββββββββΌββββββββββ΄ββββββββββ΄ββββββββββ΄ββββββββββΌββββββββββ’ β - FC (company) β β β β Research β β 51 β β Sales β β 198 β β Administration β β 111 β ββββββββββββββββββββββββββββββΌββββββββββββββββββββββββββββββββββββββββΌββββββββββ’ β = CONTRIBUTION MARGIN IV β β 241 β ββββββββββββββββββββββββββββββ§ββββββββββββββββββββββββββββββββββββββββ§ββββββββββ FC = Fixed Costs TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 64 5.2.8 Profit and Loss Statement and Cash Flow ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 8 PROFIT and LOSS STATEMENT and CASH FLOW β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ βββββββββββββββββββββββββββββββ€ββββββββββ€βββββββββββββββββββββββββββββ€ββββββββββ β Total Cost Accounting β mEUR β Cost of Sales Accounting β mEUR β β ββββββββββββββββββββββββββββββͺββββββββββͺβββββββββββββββββββββββββββββͺββββββββββ£ β β β β β β SALES REVENUE β 229.77 β SALES REVENUE β 229.77 β βββββββββββββββββββββββββββββββΌββββββββββΌβββββββββββββββββββββββββββββΌββββββββββ’ β ± Increase/Decrease in β -14.38 β β β β finished goods β β - Cost of Goods Sold β 151.66 β β inventory β β β β β - Material expenses β 27.93 β β β β - Personnel costs β β - Sales costs β 29.76 β β - Wages and Salaries β 75.20 β β β β - Hiring/Dismissal-costsβ 6.96 β - R & D costs β 11.16 β β - Pension reserve β 4.51 β β β β - Misc. personnel costs β 29.33 β - Administration costs β 15.87 β β - Depreciation β 5.90 β β β β ± Other expenses/income β 44.23 β ± Other expenses/income β 0.00 β βββββββββββββββββββββββββββββββΌββββββββββΌβββββββββββββββββββββββββββββΌββββββββββ’ β = OPERATING INCOME β 21.32 β = OPERATING INCOME β 21.32 β βββββββββββββββββββββββββββββββ΄ββββββββββ΄βββββββββββββββββββββββββββββΌββββββββββ’ β + Investment income β 0.00 β β - Interest expenses β 2.88 β β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββ’ β = INCOME FROM REGULAR BUSINESS OPERATIONS β 18.44 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββ’ β Extraordinary income β 0.00 β β - Extraordinary expenses β 0.00 β β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββ’ β = EXTRAORDINARY PROFIT/LOSS β 0.00 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββ’ β - Income taxes β 9.96 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββ’ β = NET INCOME/LOSS FOR PERIOD β 8.48 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ§ββββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ€ββββββββββ β APPROPRIATION OF NET INCOME β mEUR β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββ’ β Net income/loss for period β 8.48 β β ± Loss carried forward from previous period β -0.33 β β - Transfer into retained earnings β 4.07 β β = β 4.07 β β - Dividends paid β 4.07 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββ’ β = Loss/Income carried forward β 0.00 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ§ββββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ€ββββββββββ β CASH-FLOW β mEUR β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββ’ β Net income β 8.48 β β + Depreciation (incl. disinvestment) β 5.90 β β + Pension reserve β 4.51 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββ’ β = Cash-flow after tax β 18.89 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ§ββββββββββ The accounting legislation passed on December 19, 1985 allows for alternative methods of determining the companyβs operating result. These are the Total cost (type of short-term results) accounting Cost of sales (type of short-term results) accounting Both procedures lead to the same results with the selected valuations in the game. In the case of total cost accounting (TCA, left side of P/L S.) the sales revenue is first adjusted by the inventory change (increase/decrease) (= Total operating performance of the period) and then the total costs of the period are deducted (within the allocation of cost center accounting). In the case of cost of sales accounting (CSA, right side of P/L S.) the costs of products sold in the period are compared with the sales revenue for the period. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 65 The costs of products sold include the total administration and research and sales/distribution costs for the period apart from the production costs of the sold product volume. If the volume sold does not correspond to the volume manufactured in the period, then the production costs of the sales revenue is calculated according to the weighted average value of inventory. Extraordinary income: Proceeds from sales of scrap from disinvested machinery, special income from Product 1-old at the launch of Product 1-new if a buyer is found for the product to be scrapped (scrapped), other input from instructor. Extraordinary expenses: Depreciation of net book value of machines to be scrapped, Depreciation of Product 1-old to be scrapped (CGM), (other input from instructor). Subcontracting of Product 2 is shown as a change in the inventory: In the model it is assumed that the products are bought at the start of the period, (just as other purchases are made), stored in the warehouse, and then withdrawn from the warehouse due to Sales/Distribution during the period. Appropriation of net income: The net income for the year of the period is entered under equity in the balance sheet for the current period. The profit for the year of the period can be used: β’ β’ β’ To cover a loss carried forward from the previous year, For retained earnings, and To distribute dividends. The amount of retained earnings is calculated as follows: β’ First, the net income offsets a possible loss carried over from the previous year. β’ The planned dividends for the period and possible dividend claims from the previous period are deducted from the remainder. β’ The amount remaining after the deduction of the loss carried forward and dividends is allocated to retained earnings. Cash Flow: β’ β’ β’ The net income for a period is the difference between income and expenses that have been recorded on an accrued basis. It is evaluated in the profit and loss statement and is supposed to reflect the performance of a period. The cash flow of a period is defined as the after-tax net income + depreciation + reserves. It is an indicator of the so-called "Internal financing" of the company. The depreciation here also includes depreciation for scrapped production lines, which are recorded under the item extraordinary expenses in the upper part of the report. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 66 5.2.9 Financial Report and Balance Sheet βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β TATA Interactive Systems GmbH - D-72070 Tübingen Copyright (c) 2006 by TATA β β β β MANAGEMENT GAME Company 2 Period: 7 β β T O P S I M - General Management II DEMODATEN Date 10. 1.2005 β β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ£ β β β No. 9 FINANCIAL REPORT AND BALANCE SHEET β β β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββββββββββββββββββββββ€βββββββββββββββββ€ββββββββββββββββββββββββββββββββββ β β CURRENT β PLAN FOR β β FINANCIAL REPORT (mEUR) β PERIOD β NEXT PERIOD β β βββββββββββββββββββββββββββββββββββββββββββββͺβββββββββββββββββͺββββββββββββββββββββββββββββββββββ£ β INITIAL CASH BALANCE β 22.94 β β ββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌββββββββββββββββββββββββββββββββββ’ β CASH IN: β β β β Cash in from sales. current period β 183.81 β β β + Cash in from sales. previous period β 36.92 β β β + Disposal of investments β 0.00 β β β + Investment income β 0.00 β β β + Extraordinary income/Share cap.increase β 0.00 β β β + Disinvestment of production lines β 0.00 β β β + Medium- and long-term loans β 0.00 β βββ βββ β β + Overdraft loans β 16.19 β β β βββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌββββββββββββββββββββββββββββββββββ’ β = TOTAL CASH IN β 236.92 β β ββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌββββββββββββββββββββββββββββββββββ’ β CASH OUT: β β β β Input material expenses β 27.82 β β β + Subcontracting β 14.38 β β β + Personnel costs (- Pension reserve) β 111.50 β β β + Other expenses β 44.23 β β β + Medium-term & overdraft loans repaid β 49.00 β β β + Interest paid on loans β 2.88 β βββ βββ β β + Purchase of production lines β 0.00 β β β + Purchase of securities β 0.00 β β β + Purchase of environmental plants β 0.00 β β β + Income taxes β 9.96 β β β + Dividends paid (previous period) β 0.00 β β β + Extraordinary expenses β 0.00 β β β βββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌββββββββββββββββββββββββββββββββββ’ β = TOTAL CASH OUT β 259.76 β β ββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌββββββββββββββββββββββββββββββββββ’ β FINAL CASH BALANCE β 0.10 β β ββββββββββββββββββββββββββββββββββββββββββββββ§βββββββββββββββββ§ββββββββββββββββββββββββββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β β β BALANCE SHEET (mEUR) β β β β ββββββββββββββββββββββββββββββ€βββββββββ¦βββββββββ¦ββββββββββββββββββββββββββββββ€βββββββββ¦βββββββββ£ β ASSETS β Period βPrev.perβ LIABILITIES β Period βPrev.perβ βββββββββββββββββββββββββββββββΌβββββββββ«βββββββββ«ββββββββββββββββββββββββββββββΌβββββββββ«βββββββββ’ β FIXED ASSETS β 57.80 β 63.70 β OWNERS' EQUITY β 60.30 β 51.82 β β Property. Plant- and Equip.β β β Share capital β 15.00 β 15.00 β β Land and Buildings β 6.00 β 6.25 β Capital reserves β 2.50 β 2.50 β β Machinery and Equipment β 51.80 β 57.45 β Retained Earnings β 34.65 β 34.65 β β β β β Loss carried forward β -0.33 β 0.00 β β β β β Net income for period β 8.48 β -0.33 β β β β β β β β β CURRENT ASSETS β 54.78 β 68.70 β PENSION RESERVE β 36.09 β 31.58 β β Inventories β β β β β β β Input materials β 8.73 β 8.84 β β β β β Finished goods β 0.00 β 0.00 β LIABILITIES β 16.19 β 49.00 β β Accounts receivable β 45.95 β 36.92 β Long-term loans > 5 per. β 0.00 β 0.00 β β Securities β 0.00 β 0.00 β Short-term loans < 1 per. β 0.00 β 49.00 β β Cash β 0.10 β 22.94 β Overdraft loans β 16.19 β 0.00 β βββββββββββββββββββββββββββββββΌβββββββββ«βββββββββ«ββββββββββββββββββββββββββββββΌβββββββββ«βββββββββ’ β BALANCE SHEET TOTAL β 112.58 β 132.40 β BALANCE SHEET TOTAL β 112.58 β 132.40 β βββββββββββββββββββββββββββββββ§βββββββββ©βββββββββ©ββββββββββββββββββββββββββββββ§βββββββββ©βββββββββ βββββββββββββββββββββββββββββββ€βββββββββ¦βββββββββ¦ββββββββββββββββββββββββββββββ€βββββββββ¦βββββββββ β β Period βPrev.perβ β Period βPrev.perβ βββββββββββββββββββββββββββββββΌβββββββββ«βββββββββ«ββββββββββββββββββββββββββββββΌβββββββββ«βββββββββ’ β RATING β 122 β 90 β Modif. of interest rate β -1.13 β 0.65 β βββββββββββββββββββββββββββββββ§βββββββββ©βββββββββ©ββββββββββββββββββββββββββββββ§βββββββββ©βββββββββ TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 67 Financial Report: Self-explanatory Balance Sheet: The balance sheet takes into account the new regulations concerning balance sheet layout prescribed to companies required by law to disclose their business figures, and applies to the terms of paragraph 266 of the GCC (German Commercial Code). There have been changes especially on the liabilities side. From now on all the items of the Ownersβ Equity are part of a group Ownersβ Equity, including the net income for the year, as well as the accumulated losses brought forward. The balance sheet items of the Ownersβ Equity include the following: Share capital: Share capital corresponds to the capital stock, i.e. the nominal value of the issued share capital Capital reserves: These arise as a result of a premium when new shares are issued; up until now this item was part of the legal reserves. In TOPSIM - General Management. This item is not controllable. Retained earnings: Result from not distributing all of the after-tax net income of the previous period. Loss carried forward: Losses from the previous periods do not cut into reserves immediately, but can be carried forward for up to 5 periods, and can be absorbed with surpluses that occur later. Net income: The result of the current business year is reported in an undistributed and comprehensive form in the closing balance sheet. The appropriation of the net income (cf. additional note on Profit/Loss Statement) the distribution of reserves, or the absorption of losses carried forward are not treated in the accounts until the new business year. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 68 5.2.10 Overall Company Results ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 10 OVERALL COMPANY RESULTS β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β β β OVERALL COMPANY RESULTS β β β β βββββββββββββββββββββββββββββββββββββββββββββββββββββββ¦ββββββββββββββββββββββββββββββββββββββββββββββββββββ£ β βΌ x=Total sales(mEUR) +=Profit for per.(mEUR)βΌ β βΌ Share price (EUR/share) βΌβ β300βΌ βΌ β 500βΌ βΌβ β290βΌ βΌ 35 β βΌ βΌβ β280βΌ βΌ β 450βΌ βΌβ β270βΌ βΌ 30 β βΌ βΌβ β260βΌ βΌ β 400βΌ βΌβ β250βΌ βΌ 25 β βΌ βΌβ β240βΌ βΌ β 350βΌ + + + βΌβ β230βΌ x x βΌ 20 β βΌ βΌβ β220βΌ + βΌ β 300βΌ + βΌβ β210βΌ βΌ 15 β βΌ βΌβ β200βΌ βΌ β 250βΌ βΌβ β190βΌ + βΌ 10 β βΌ + βΌβ β180βΌ * x x + βΌ β 200βΌ βΌβ β170βΌ + x + βΌ 5β βΌ βΌβ β160βΌ + βΌ β 150βΌ + βΌβ β150βΌ + + βΌ 0β βΌ βΌβ β140βΌ x βΌ β 100βΌ + + βΌβ β130βΌ x βΌ -5 β βΌ βΌβ β120βΌ βΌ β 50βΌ βΌβ β110βΌ v βΌ-10 β βΌ v βΌβ β100βΌ Periods βΌ β 0βΌ Periods βΌβ β βΌβββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββΌ β βΌβββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββΌβ β β 0 1 2 3 4 5 6 7 8 β β 0 1 2 3 4 5 6 7 8 β β βββββββββββββββββββββββββββββββββββββββββββββββββββββββ¬ββββββββββββββββββββββββββββββββββββββββββββββββββββ£ β βΌ Return on sales (%) βΌ β βΌ Return on equity (%) βΌβ β 10βΌ βΌ β 50βΌ βΌβ β 9βΌ βΌ β 45βΌ βΌβ β 8βΌ + βΌ β 40βΌ + βΌβ β 7βΌ βΌ β 35βΌ βΌβ β 6βΌ + βΌ β 30βΌ + βΌβ β 5βΌ + βΌ β 25βΌ βΌβ β 4βΌ + + βΌ β 20βΌ + βΌβ β 3βΌ + βΌ β 15βΌ + + βΌβ β 2βΌ βΌ β 10βΌ + βΌβ β 1βΌ + βΌ β 5βΌ + βΌβ β 0βΌββββββββββββββββββββββββββββββββ+βββββββββ+βββΌ β 0βΌββββββββββββββββββββββββββββββββ+βββββββββ+βββΌβ β -1βΌ βΌ β -5βΌ βΌβ β -2βΌ βΌ β -10βΌ βΌβ β -3βΌ βΌ β -15βΌ βΌβ β -4βΌ βΌ β -20βΌ βΌβ β -5βΌ βΌ β -25βΌ βΌβ β -6βΌ βΌ β -30βΌ βΌβ β -7βΌ βΌ β -35βΌ βΌβ β -8βΌ βΌ β -40βΌ βΌβ β -9βΌ βΌ β -45βΌ βΌβ β-10βΌ Periods βΌ β -50βΌ Periods βΌβ β βΌβββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββΌ β βΌβββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββΌβ β β 0 1 2 3 4 5 6 7 8 β β 0 1 2 3 4 5 6 7 8 β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββ©ββββββββββββββββββββββββββββββββββββββββββββββββββββ βββββββββββββββββββββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββ€βββββββββ β RATIOS β Per.0 β Per.1 β Per.2 β Per.3 β Per.4 β Per.5 β Per.6 β Per.7 β Per.8 βAverage β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Total sales mEUR β 129.0 β 143.6 β 171.2 β 178.7 β 228.5 β 178.3 β 184.6 β 229.8 β 0.0 β 160.4 β β Operating result mEUR β 10.4 β 5.5 β 22.6 β 5.9 β 36.6 β 11.7 β 3.5 β 21.3 β 0.0 β 13.1 β β Profit for period mEUR β 4.6 β 1.5 β 10.0 β 8.7 β 17.7 β 4.8 β -0.3 β 8.5 β 0.0 β 6.2 β β Owners' equity mEUR β 32.6 β 31.8 β 41.1 β 44.8 β 58.1 β 54.1 β 51.8 β 60.3 β 0.0 β 41.6 β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Return on sales % β 3.6 β 1.1 β 5.9 β 4.9 β 7.7 β 2.7 β -0.2 β 3.7 β 0.0 β 3.3 β β Return on equity % β 16.4 β 4.7 β 31.5 β 21.2 β 39.5 β 8.3 β -0.6 β 16.4 β 0.0 β 15.3 β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Payout dividends mEUR β 0.0 β 2.3 β 0.8 β 5.0 β 4.4 β 8.8 β 1.9 β 0.0 β 0.0 β 2.6 β β Cumul. dividends mEUR β 0.0 β 2.3 β 3.1 β 8.1 β 12.4 β 21.3 β 23.2 β 23.2 β 0.0 β β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Planning quality index β 2.3 β 0.9 β -0.8 β 1.3 β -0.4 β 2.0 β 0.7 β 2.9 β 0.0 β 1.0 β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Share price EUR/share β 99.5 β 95.4 β 157.0 β 235.4 β 338.6 β 359.2 β 288.5 β 360.6 β 0.0 β 214.9 β β Value of company mEUR β 49.8 β 47.7 β 78.5 β 117.7 β 169.3 β 179.6 β 144.3 β 180.3 β 0.0 β 107.5 β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Corporate image index β 100.0 β 103.5 β 109.8 β 112.2 β 112.7 β 108.6 β 110.7 β 105.7 β 0.0 β 95.9 β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Sharehold.earnings mEUR β 0.0 β 0.2 β 31.8 β 76.0 β 132.0 β 151.1 β 117.7 β 153.7 β 0.0 β β β Sharehold.earn.since 0 β 0.0 β 0.5 β 63.8 β 152.7 β 265.1 β 303.5 β 236.4 β 308.9 β 0.0 β β βββββββββββββββββββββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§βββββββββ TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 69 Share price : The influences are: Ownersβ equity, end of previous period, Net income, Earned dividends of period, Accumulated dividends since Period 0, Return on sales, Accumulated marketing mix (Advertising/CI/Distribution/Sales/Product development), No. of products and markets, Image factor, Ranking of companies according to sales revenue, Planning quality, Environmental index of production, and Debt-equity ratio (Liabilities/Balance sheet total) Return on sales : Return on equity : Value of company : Share price * 500 000 shares Company image index : Shareholder Earnings mEUR : Shareholder Earnings % P0 : Influences: β’ Expenses for CI β’ Indices of product attributes β’ Environmental damage index of production lines cumulative dividends + change in value of company (Be aware of rounded up and down figures) Change compared to starting value Period 0 (%) TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 70 5.2.11 Out-of-Line Situations ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β TATA Interactive Systems GmbH - D-72070 Tübingen Copyright (c) 2006 by TATA β β β β MANAGEMENT GAME Company 2 Period: 7 β β T O P S I M - General Management II DEMODATEN Date 10. 1.2005 β β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ£ β β β No. 11 OUT-OF-LINE SITUATIONS β β β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββββ€ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ€ββββββββ β β PERIODS β β β βββββββββ¬ββββββββ¬ββββββββ¬ββββββββ¬ββββββββ¬ββββββββ¬ββββββββ¬ββββββββ¬ββββββββΌββββββββ’ β PLANNING VALUES β 0 β 1 β 2 β 3 β 4 β 5 β 6 β 7 β β Aver. β β βββββββββββββββββββββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββ€ββββββββ£ β β β β β β β β β β β β β SALES (mEUR) Planned β 130.0 β 130.0 β 130.0 β 173.9 β 188.4 β 170.2 β 152.9 β 170.7 β β 155.8 β β PRODUCT 1 Actual β 129.0 β 141.1 β 151.6 β 149.7 β 179.8 β 178.3 β 171.0 β 174.6 β β 159.4 β β MARKET 1 Diff. β -1.0 β 11.1 β 21.6 β -24.2 β -8.6 β 8.1 β 18.1 β 3.9 β β 3.6 β β Diff. (%)β -0.8 β 8.5 β 16.6 β -13.9 β -4.6 β 4.8 β 11.8 β 2.3 β β 3.1 β β βββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β PLANNING QUALITY β 1.0 β 0.5 β -0.1 β -0.3 β 0.6 β 0.7 β 0.1 β 0.8 β β 0.4 β β βββββββββββββββββββββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββ€ββββββββ£ β β β β β β β β β β β β β SALES (mEUR) Planned β 0.0 β 0.0 β 0.0 β 0.0 β 11.8 β 26.6 β 34.0 β 28.4 β β 12.6 β β PRODUCT 1 Actual β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 13.8 β β 1.7 β β MARKET 2 Diff. β 0.0 β 0.0 β 0.0 β 0.0 β -11.8 β -26.6 β -34.0 β -14.6 β β -10.9 β β Diff. (%)β 0.0 β 0.0 β 0.0 β 0.0 β-100.0 β-100.0 β-100.0 β -51.5 β β -43.9 β β βββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β PLANNING QUALITY β 0.0 β 0.0 β 0.0 β 0.0 β 0.3 β -0.5 β -0.6 β 0.1 β β -0.1 β β βββββββββββββββββββββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββ€ββββββββ£ β β β β β β β β β β β β β SALES (mEUR) Planned β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 18.0 β β 2.3 β β PRODUCT 2 Actual β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 22.5 β β 2.8 β β MARKET 1 Diff. β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 4.5 β β 0.6 β β Diff. (%)β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 25.0 β β 3.1 β β βββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β PLANNING QUALITY β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.7 β β 0.1 β β βββββββββββββββββββββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββ€ββββββββ£ β β β β β β β β β β β β β SALES (mEUR) Planned β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 4.6 β β 0.6 β β PRODUCT 2 Actual β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β β 0.0 β β MARKET 2 Diff. β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β -4.6 β β -0.6 β β Diff. (%)β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β-100.0 β β -12.5 β β βββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β PLANNING QUALITY β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.0 β 0.8 β β 0.1 β β βββββββββββββββββββββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββ€ββββββββ£ β β β β β β β β β β β β β RETURN ON Planned β 20.0 β 20.0 β 20.0 β 22.6 β 58.6 β 9.4 β 2.5 β 20.0 β β 21.6 β β EQUITY (%) Actual β 16.4 β 4.7 β 31.5 β 21.2 β 39.5 β 8.3 β -0.6 β 16.4 β β 17.2 β β Diff. β -3.6 β -15.3 β 11.5 β -1.4 β -19.1 β -1.1 β -3.1 β -3.6 β β -4.5 β β Diff. (%)β -17.9 β -76.5 β 57.5 β -6.2 β -32.7 β -12.1 β-124.8 β -18.2 β β -28.8 β β βββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β PLANNING QUALITY β 0.4 β -0.5 β -0.5 β 0.8 β -0.6 β 0.8 β 0.5 β 0.4 β β 0.2 β β βββββββββββββββββββββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββ€ββββββββ£ β β β β β β β β β β β β β CASH FLOW Planned β 14.0 β 14.0 β 14.0 β 20.3 β 38.2 β 14.5 β 11.1 β 14.0 β β 17.5 β β (mEUR) Actual β 13.6 β 14.2 β 20.3 β 19.4 β 28.8 β 14.3 β 9.3 β 18.9 β β 17.3 β β Diff. β -0.4 β 0.2 β 6.3 β -1.0 β -9.4 β -0.2 β -1.8 β 4.9 β β -0.2 β β Diff. (%)β -2.8 β 1.2 β 45.2 β -4.7 β -24.7 β -1.3 β -16.2 β 34.9 β β 4.0 β β βββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β PLANNING QUALITY β 0.9 β 1.0 β -0.2 β 0.8 β -0.8 β 1.0 β 0.7 β 0.0 β β 0.4 β β βββββββββββββββββββββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββ£ β β β β β β β β β β β β β Net income (mEUR)β 4.6 β 1.5 β 10.0 β 8.7 β 17.7 β 4.8 β -0.3 β 8.5 β β 6.9 β β Cum. Net income (mEUR)β 4.6 β 6.1 β 16.2 β 24.9 β 42.5 β 47.3 β 47.0 β 55.5 β β 30.5 β β Planning quality for per.β 2.3 β 0.9 β -0.8 β 1.3 β -0.4 β 2.0 β 0.7 β 2.9 β β 1.1 β β Cum. planning quality β 2.3 β 3.2 β 2.4 β 3.7 β 3.2 β 5.2 β 5.9 β 8.8 β β 4.3 β ββββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β β β β β β β β β β β β β Earn.cap.value (mEUR)β 5.7 β 2.0 β 9.6 β 9.4 β 17.5 β 5.8 β 0.0 β 9.9 β β 7.5 β β Cum.earn.cap.value (mEUR)β 5.7 β 7.7 β 17.4 β 26.7 β 44.2 β 49.9 β 50.0 β 59.9 β β 32.7 β ββββββββββββββββββββββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 71 Planning quality : The planning quality is calculated according to the planning magnitude from the absolute variance between planned and actual output. Ranges of planning quality Best value 1.0 at an absolute variance of 0.0 . Worst value -1.0 at great absolute variance. The planning quality values depend on the absolute variances determined in the instructorβs file βImpact curvesβ, curves 53 - 58. Planning quality of period Cum. planning quality : : Total individual planning quality values for the period Cumulative planning quality of previous periods + Planning quality of period Earn. cap. value of period (mEUR) : The earning capacity value of the period comprises of: Net income of the period (mEUR) + (Planning quality of period * Value of a planning quality point in mEUR) The value of a planning quality point is determined by the instructor. Cum. earn. cap. val. (mEUR) : Cumulative earning capacity value of previous periods + Earning capacity value of period TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 72 5.2.12 Market Research Report I βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 12 MARKET RESEARCH REPORT I β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ βββββββββββββββββββββββββββ€ββββββββ€ββββββββ€ββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ β β β β ADVERTISING β SALES β REVENUE βPRODUCT INDICESβ β MARKET RESEARCH β COM- β PRICE βββββββββ¬ββββββββΌββββββββ¬ββββββββΌββββββββ¬ββββββββΌββββββββ¬ββββββββ’ β REPORT I β PANY βEUR/FCUβ mEUR β % β Units β % β mEUR β % βTechnolβEcologyβ β ββββββββββββββββββββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββ£ β β β β β β β β β β β β β PRODUCT 1 MARKET 1 β 1 β 3050 β 4.00 β 12.5 β 30598 β 12.4 β 93.3 β 13.1 β 105.6 β 109.2 β β β 2 β 2798 β 7.00 β 21.9 β 62402 β 25.2 β 174.6 β 24.5 β 111.2 β 107.7 β β β 3 β 2730 β 9.00 β 28.1 β 65178 β 26.3 β 177.9 β 24.9 β 111.6 β 108.5 β β β 4 β 3000 β 6.00 β 18.8 β 45146 β 18.2 β 135.4 β 19.0 β 112.2 β 117.0 β β β 5 β 3000 β 6.00 β 18.8 β 44208 β 17.9 β 132.6 β 18.6 β 112.2 β 117.0 β β βββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β βAvg/Totβ 2884 β 32.00 β 100.0 β247532 β 100.0 β 713.9 β 100.0 β 110.6 β 111.9 β β ββββββββββββββββββββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββ£ β β β β β β β β β β β β β PRODUCT 1 MARKET 2 β 1 β 2300 β 1.00 β 22.2 β 16912 β 77.7 β 52.5 β 79.2 β 105.6 β 109.2 β β β 2 β 2098 β 2.50 β 55.6 β 4860 β 22.3 β 13.8 β 20.8 β 111.2 β 107.7 β β β 3 β 2030 β 1.00 β 22.2 β 0 β 0.0 β 0.0 β 0.0 β 111.6 β 108.5 β β β 4 β 0 β 0.00 β 0.0 β 0 β 0.0 β 0.0 β 0.0 β β β β β 5 β 0 β 0.00 β 0.0 β 0 β 0.0 β 0.0 β 0.0 β β β β βββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β βAvg/Totβ 2255 β 4.50 β 100.0 β 21772 β 100.0 β 66.3 β 100.0 β 109.5 β 108.5 β β ββββββββββββββββββββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββ£ β β β β β β β β β β β β β PRODUCT 2 MARKET 1 β 1 β 9900 β 2.00 β 57.1 β 3500 β 31.8 β 34.7 β 33.3 β 105.8 β 102.7 β β β 2 β 9000 β 0.50 β 14.3 β 2500 β 22.7 β 22.5 β 21.6 β 101.2 β 101.8 β β β 3 β 9360 β 1.00 β 28.6 β 5000 β 45.5 β 46.8 β 45.0 β 101.0 β 101.8 β β β 4 β 0 β 0.00 β 0.0 β 0 β 0.0 β 0.0 β 0.0 β β β β β 5 β 0 β 0.00 β 0.0 β 0 β 0.0 β 0.0 β 0.0 β β β β βββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β βAvg/Totβ 9450 β 3.50 β 100.0 β 11000 β 100.0 β 104.0 β 100.0 β 102.7 β 102.1 β β ββββββββββββββββββββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββͺββββββββ£ β β β β β β β β β β β β β PRODUCT 2 MARKET 2 β 1 β 7300 β 2.00 β 66.7 β 0 β 0.0 β 0.0 β 0.0 β 105.8 β 102.7 β β β 2 β 6850 β 0.50 β 16.7 β 0 β 0.0 β 0.0 β 0.0 β 101.2 β 101.8 β β β 3 β 7200 β 0.50 β 16.7 β 0 β 0.0 β 0.0 β 0.0 β 101.0 β 101.8 β β β 4 β 0 β 0.00 β 0.0 β 0 β 0.0 β 0.0 β 0.0 β β β β β 5 β 0 β 0.00 β 0.0 β 0 β 0.0 β 0.0 β 0.0 β β β β βββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββ’ β βAvg/Totβ 0 β 3.00 β 100.0 β 0 β 0.0 β 0.0 β 0.0 β 102.7 β 102.1 β βββββββββββββββββββββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ βββββββββββββββββββββββββββ€ββββββββ€ββββββββ€ββββββββ€ββββββββββββββββββββββββ€ββββββββββββββββ€ββββββββββββββββ β OTHER DATA β COM- β PROD. β PROD.1β PRODUCTION LINES β R & D Expensesβ SALES/DIST. β β β PANY β STAFF β O/R/N β Type Aβ Type Bβ Type Cβ (mEUR) β (No.of ppl.) β β βββββββββΌββββββββΌββββββββΌββββββββΌβββββ ββΌββββββββΌββββββββββββββββΌββββββββββββββββ’ β β 1 β 1272 β N β 1 β 0 β 2 β 5.8 β 132 β β β 2 β 1415 β N β 0 β 0 β 3 β 9.2 β 157 β β β 3 β 1397 β N β 2 β 0 β 2 β 8.3 β 150 β β β 4 β 886 β O β 4 β 0 β 0 β 5.3 β 100 β β β 5 β 884 β O β 4 β 0 β 0 β 5.3 β 100 β βββββββββββββββββββββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββββββββββ§ββββββββββββββββ Expenses R & D (mEUR): Expenses for technology, ecology, and value analysis in the current period for all the products in this market TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 73 5.3.13 Market Research Report II ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 13 MARKET RESEARCH REPORT II β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β β β MARKET RESEARCH REPORT II - PRODUCT 1, MARKET 1 β β β β ββββββββββββββββββββββββββββββββββββββββββββββββββββββ¦βββββββββββββββββββββββββββββββββββββββββββββββββββββ£ β 70 βΌ x=Sales ^ +=Market Share βΌ35β+50βΌ Change in Revenue (%) +=Market,x=Company β β 68βΌ x βΌ34β βΌ β β 66βΌ βΌ33β+40βΌ β β 64βΌ βΌ32β βΌ β β 62βΌ x x βΌ31β+30βΌ β β 60 βΌ βΌ30β βΌ β β 58βΌ βΌ29β+20βΌ x β β 56βΌ + βΌ28β βΌ β β 54βΌ βΌ27β+10βΌ x + + β β 52βΌ x x + βΌ26β βΌ + x + β β 50 βΌ + + βΌ25β 0βΌββββββββββββββββββxβββββββββxβββββββββ*ββββ*βββββ β 48βΌ x βΌ24β βΌ + x β β 46βΌ + βΌ23β-10βΌ + β β 44βΌ x + βΌ22β βΌ β β 42βΌ + βΌ21β-20βΌ β β 40 βΌ + βΌ20β βΌ β β 38βΌ βΌ19β-30βΌ β β 36βΌ βΌ18β βΌ β β 34βΌ βΌ17β-40βΌ β β 32βΌ * βΌ16β βΌ β β 30 βΌ Periods βΌ15β-50βΌ Periods β β βΌβββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββΌ β βΌββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββΌβββββ β β 0 1 2 3 4 5 6 7 8 β β 0 1 2 3 4 5 6 7 8 β β ββββββββββββββββββββββββββββββββββββββββββββββββββββββ¬βββββββββββββββββββββββββββββββββββββββββββββββββββββ£ β +25βΌ Variance Advert./CI/Sls/Distr(%) '=Prev.per. β+25βΌ Variance Price (%) '=Prev. per.β β βΌ β 23 β βΌ β β β +20βΌ β β+20βΌ β β β βΌ β β βΌ β β β +15βΌ β β+15βΌ β β β βΌ β β βΌ β β β +10βΌ β 3' β+10βΌ 5'' β β β βΌ β β βΌ β β β +5βΌ β 2 β +5βΌ 1 β β β βΌ β β βΌ 54 β β β 0βΌβββββββββββββββββββββββββΌββββββββββββββββββββββββ 0βΌβββββββββββββββββββββββββΌββββββββββββββββββββββββ β βΌ β β βΌ β β β -5βΌ β β -5βΌ β1' 3' 2 β β βΌ β β βΌ β 23 β β -10βΌ 54 β β-10βΌ β β β βΌ 5'' β1' β βΌ β β β -15βΌ β β-15βΌ β β β βΌ β β βΌ β β β -20βΌ 1 β β-20βΌ β β β βΌ β β βΌ β β β -25βΌ β Var.market share abs.β-25βΌ β Var.market share abs.β β βΌβββββΌββββΌββββΌββββΌββββΌββββΌββββΌββββΌββββΌββββΌββββΌββββ βΌβββββΌββββΌββββΌββββΌββββΌββββΌββββΌββββΌββββΌββββΌββββΌββββ β β -10 -8 -6 -4 -2 0 +2 +4 +6 +8 +10 β β -10 -8 -6 -4 -2 0 +2 +4 +6 +8 +10 β β ββββββββββββββββββββββββββββββββββββββββββββββββββββββ©βββββββββββββββββββββββββββββββββββββββββββββββββββββ£ β β β Variances from the average of the other companies as %: β β % ββββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬ββββββββββ¬βββββββββ¬βββββββββ % β β +20 βΌ +34.8 β +29.5 β β β β β β β β +56.9 βΌ +20 β β +15 βΌ β β β +15.3 β β β β β β βΌ +15 β β +10 βΌ β β β β β β β β β βΌ +10 β β +5 βΌ β β β β β β β β +7.4 β βΌ +5 β β 0 βΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌββ +0.7ββΌββββββββββΌβββββββββΌβββββββββΌ 0 β β -5 βΌ β β -5.0 β β -5.6 β β β -4.6 β β βΌ -5 β β -10 βΌ β β β β β -11.1 β β β β βΌ -10 β β -15 βΌ β β β β β β β β β βΌ -15 β β -20 βΌ β β β β β β β β β βΌ -20 β β % ββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌββββββββββΌβββββββββΌβββββββββ€ % β β β Sales β Revenueβ Price β Ads β Sales β C I βTechnol.β Ecology βCM I/un.βCM II/u.β β β ββββββββββ΄βββββββββ΄βββββββββ΄βββββββββ΄βββββββββ΄βββββββββ΄βββββββββ΄ββββββββββ΄βββββββββ΄βββββββββ β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ Explanations of Market Research Report II The market research report is shown per product and per market. Diagram 1: "Sales - Market Share" TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 74 The diagram shows the companyβs market share growth and sales in thousands of units over the periods. The participants in the game should connected the coordinate points and analyze their companiesβ growth. += *= Market share Intersections Diagram 2: x = Sales in thousand of units v = Value outside represented area "Var. volume cf. pp (%) The diagram shows the growth of the total market volume and of the market volume of the company concerned over the periods as a % change compared with the previous period. The participants in the game should connected the coordinate points and analyze their companiesβ growth. += *= Total market Intersections x = Company concerned v = Value outside represented area Diagram 3 " Var. Advert./CI/Sls/Distr (%) β Var. market share, abs." and Diagram 4 "Variance Price (%) - Var. Market share abs." show the market situation of the individual companies concerning their marketing mix efforts (diagram 3) and also concerning prices (diagram 4). Marketing mix efforts include: expenditures made by the company on advertising, sales/distribution, CI, technology, and ecology. The values of each company are shown from the current and previous period. Number and : position Number of the company and value in the current period, e.g. 2 = Company 2 in the current period, 2' = same in the previous period. * = Companies have the same value in the same period. If a company is not shown, then its "position" is below the value of the previous period. y axis: Variance Marketing mix % or Variance Price % Variance of the company from the industry average as a %, whereby the company's own value contributes to the average. x axis: Var. Market share. abs. Variance of the market share as an absolute % value from the industry average. Diagram 5 "Variance from the average of the competing companies" offers further opportunities for analysis of the companyβs market situation. Here the variances of one's own company from the average of the other companies is shown as a percentage. Sales: Turnover: Price: Advertising: Self-explanatory Self-explanatory Self-explanatory Current effect of advertising in the period based on the expenditures of previous periods and the current one. Distribution: CI: Technology: Ecology: CM I/Unit: CM II/Unit: Same as Advertising Self-explanatory Technology index Ecology index Contribution margin I/unit Contribution margin II/unit TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 75 5.2.14 Business Report on the Industry ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 14 BUSINESS REPORT ON THE INDUSTRY β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β PROFIT AND LOSS STATEMENT β βββββββββββββββββββββββββββββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬βββββββββ’ β VALUES in mEUR βComp. 1 βComp. 2 βComp. 3 βComp. 4 βComp. 5 β β ββββββββββββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β SALES REVENUE β 208.39 β 229.77 β 243.64 β 135.44 β 132.62 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β - Cost of Goods Sold β 135.44 β 151.66 β 160.43 β 115.16 β 111.00 β β - Sales costs β 26.47 β 29.76 β 31.10 β 18.94 β 20.37 β β - R & D costs β 8.16 β 11.16 β 10.52 β 6.16 β 6.16 β β - Administration costs β 15.36 β 15.87 β 17.29 β 11.46 β 11.41 β β - Other expenses / income β 0.00 β 0.00 β 0.00 β 0.00 β 0.00 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = OPERATING INCOME β 22.95 β 21.32 β 24.29 β -16.28 β -16.31 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β Income reg.business operationsβ 19.18 β 18.44 β 20.21 β -24.27 β -43.46 β β Extraordinary income β 0.00 β 0.00 β 0.00 β 0.00 β 0.00 β β - Income Taxes β 10.55 β 9.96 β 6.28 β 0.00 β 0.00 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = NET INCOME FOR PERIOD β 8.63 β 8.48 β 13.93 β -24.27 β -43.46 β βββββββββββββββββββββββββββββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β BALANCE SHEET β β ββββββββββββββββββββββββββββββββββ€βββββββββ€βββββββββ€βββββββββ€βββββββββ€βββββββββ£ β ASSETS (mEUR) βComp. 1 βComp. 2 βComp. 3 βComp. 4 βComp. 5 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β FIXED ASSETS β 48.85 β 57.80 β 44.35 β 12.60 β 12.60 β β Land and Buildings β 6.00 β 6.00 β 6.00 β 6.00 β 6.00 β β Machinery and Equipment β 42.85 β 51.80 β 38.35 β 6.60 β 6.60 β β CURRENT ASSETS β 84.98 β 54.78 β 87.31 β 36.07 β 73.23 β β Raw Materials β 18.06 β 8.73 β 6.52 β 0.00 β 0.00 β β Finished goods β 0.00 β 0.00 β 0.00 β 8.88 β 46.61 β β Accounts receivable β 41.68 β 45.95 β 48.73 β 27.09 β 26.52 β β Securities β 0.00 β 0.00 β 20.00 β 0.00 β 0.00 β β Cash β 25.25 β 0.10 β 12.06 β 0.10 β 0.10 β β ββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β BALANCE SHEET TOTAL β 133.83 β 112.58 β 131.66 β 48.67 β 85.83 β β ββββββββββββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β LIABILITIES (mEUR) βComp. 1 βComp. 2 βComp. 3 βComp. 4 βComp. 5 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β OWNERS' EQUITY β 63.53 β 60.30 β 56.36 β -19.21 β -67.38 β β Share capital β 15.00 β 15.00 β 15.00 β 15.00 β 15.00 β β Capital reserves β 2.50 β 2.50 β 2.50 β 2.50 β 2.50 β β Retained Earnings β 37.40 β 34.65 β 33.72 β 15.31 β 14.63 β β Loss carried forward β 0.00 β -0.33 β -8.80 β -27.75 β -56.05 β β Net income for period β 8.63 β 8.48 β 13.93 β -24.27 β -43.46 β β PENSION RESERVE β 35.30 β 36.09 β 35.30 β 29.50 β 29.44 β β DUE TO BANKS β 35.00 β 16.19 β 40.00 β 38.38 β 123.78 β β Long-term loans > 5 periods β 35.00 β 0.00 β 40.00 β 0.00 β 0.00 β β Short-term loans < 1 period β 0.00 β 0.00 β 0.00 β 25.00 β 25.00 β β Overdraft loans β 0.00 β 16.19 β 0.00 β 13.38 β 98.78 β β ββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β BALANCE SHEET TOTAL β 133.83 β 112.58 β 131.66 β 48.67 β 85.83 β βββββββββββββββββββββββββββββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ βββββββββββββββββββββββββββββββββββ€βββββββββ€βββββββββ€βββββββββ€βββββββββ€βββββββββ β COMPANY RATIOS βComp. 1 βComp. 2 βComp. 3 βComp. 4 βComp. 5 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β Return on sales (%) β 4.1 β 3.7 β 5.7 β -17.9 β -32.8 β β Return on equity (%) β 14.6 β 16.4 β 32.8 β -479.9 β -181.7 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β Dividends paid (mEUR) β 4.4 β 0.0 β 0.0 β 0.0 β 0.0 β β Share price (EUR/Share) β 357.6 β 360.6 β 302.0 β 0.0 β 0.0 β β Value of company (mEUR) β 178.8 β 180.3 β 151.0 β 0.0 β 0.0 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β Corporate image (Index) β 104.5 β 105.7 β 105.0 β 99.7 β 99.7 β β Rating (Index) β 121 β 122 β 105 β 21 β 8 β β Customer satisfaction (Index) β 88 β 106 β 114 β 97 β 90 β βββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β Shareholder earnings (mEUR) β 145.7 β 153.7 β 115.9 β -45.0 β -45.6 β β Shareholder earnings (%) β 292.8 β 308.9 β 232.9 β -90.3 β -91.7 β βββββββββββββββββββββββββββββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ The report is identical to Instructorβs Report V (see point 5.1.5). TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 76 5.2.15 Socio-Economic Statement for the Entire Industry βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 15 CORPORATE SOCIO-ECONOMIC STATEMENT AND REAL NET OUTPUT β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β β β SOCIO-ECONOMIC STATEMENT FOR THE ENTIRE INDUSTRY β β β ββββββββββββββββββββββββββββββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬βββββββββ’ β βComp. 1 βComp. 2 βComp. 3 βComp. 4 βComp. 5 β β βββββββββββββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β β β β β β β β EMPLOYEES β β β β β β ββββββββββββββββββββββββββββββββββββ€ β β β β β β Hired (ppl.) β 1314 β 1459 β 1545 β 548 β 556 β β Dismissed (ppl.) β 160 β 12 β 16 β 1 β 11 β β Final workforce (ppl.) β 1810 β 1970 β 1981 β 1251 β 1248 β β Change (%) β 50.33 β 63.62 β 64.53 β 3.90 β 3.65 β ββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β Personnel competence (Index) β 1.04 β 1.04 β 1.03 β 0.98 β 0.98 β β Productivity (Index I) β 1.04 β 1.03 β 1.02 β 0.99 β 1.00 β ββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β Wages and Salaries (mEUR) β 437.98 β 459.40 β 437.02 β 325.57 β 324.45 β β Non-salary staff costs (mEUR) β 177.51 β 176.70 β 169.43 β 129.57 β 129.13 β β Non-salary staff costs (%) β 40.53 β 38.46 β 38.77 β 39.80 β 39.80 β β Misc. personnel costs (mEUR) β 59.50 β 60.87 β 64.17 β 28.97 β 29.12 β ββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β TOTAL TOWARDS EMPLOYEES (mEUR) β 674.99 β 696.98 β 670.62 β 484.11 β 482.70 β β βββββββββββββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β β β β β β β β INVESTORS/BANKS β β β β β β ββββββββββββββββββββββββββββββββββββ€ β β β β β β Owners (Dividends) (mEUR) β 20.15 β 27.27 β 16.26 β 4.81 β 4.13 β β Banks (Interest paid) (mEUR) β 29.44 β 26.32 β 18.37 β 24.15 β 60.06 β ββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β TOTAL TO. INVESTORS/BANKS (mEUR) β 49.59 β 53.58 β 34.63 β 28.95 β 64.19 β β βββββββββββββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β β β β β β β β GOVERNMENT β β β β β β ββββββββββββββββββββββββββββββββββββ€ β β β β β β Direct taxes (mEUR) β 52.15 β 48.70 β 37.32 β 7.86 β 6.76 β β Employee taxes (mEUR) β 131.39 β 137.82 β 131.11 β 97.67 β 97.34 β β Taxes on dividends (mEUR) β 3.34 β 4.64 β 2.94 β 0.96 β 0.83 β ββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β TOTAL TOWARDS GOVERNMENT (mEUR) β 186.88 β 191.16 β 171.37 β 106.50 β 104.92 β β βββββββββββββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β β β β β β β β PRESERVATION OF REAL ASSET VALUE β β β β β β ββββββββββββββββββββββββββββββββββββ€ β β β β β β Product improvement (mEUR) β 56.63 β 52.49 β 49.53 β 40.95 β 40.95 β β Invest.(machin.& markets)(mEUR) β 216.80 β 223.90 β 214.70 β 132.80 β 132.80 β β Addition to reserves (mEUR) β 32.08 β 28.23 β 26.82 β 4.81 β 4.13 β ββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β TOTAL TO. REAL ASSET VAL. (mEUR) β 305.51 β 304.62 β 291.04 β 178.56 β 177.88 β ββββββββββββββββββββββββββββββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β β β REAL NET OUTPUT FOR THE ENTIRE INDUSTRY β β β ββββββββββββββββββββββββββββββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬βββββββββ¬βββββββββ’ β βComp. 1 βComp. 2 βComp. 3 βComp. 4 βComp. 5 β ββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β β β β β β β β Company revenue (mEUR) β1456.08 β1443.73 β1390.10 β 973.55 β 927.67 β β Real net output (1) (mEUR) β 674.99 β 696.98 β 670.62 β 484.11 β 482.70 β ββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β Real net output (% of revenue) β 46.36 β 48.28 β 48.24 β 49.73 β 52.03 β ββββββββββββββββββββββββββββββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ (1) Personnel costs The Corporate socio-economic statement shows the contribution of the company from various perspectives. Product improvement Real net output : : All expenses for R&D Total expenditure of the company minus the input materials/parts and outside production TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 77 5.2.16 Value Oriented Ratios ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 16 VALUE ORIENTED RATIOS β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββ€βββββββββ€βββββββββ€ββββββββββββββββββ€ββββββββββββββββββ β β β β Changes β % of sales rev. β β PROFIT & LOSS STATEMENT β Period β Prev.p.ββββββββββ¬βββββββββΌβββββββββ¬βββββββββ’ β β (mEUR) β (mEUR) βAbsoluteβ % β Period β Prev.p.β β βββββββββββββββββββββββββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β Sales revenue β 229.77 β 184.59 β 45.17 β 24.5 β 100.0 β 100.0 β ββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β - Cost of products sold β 151.66 β 130.52 β 21.14 β 16.2 β 66.0 β 70.7 β β - Sales costs β 29.76 β 31.69 β -1.93 β -6.1 β 13.0 β 17.2 β β - R & D costs β 11.16 β 7.17 β 3.99 β 55.6 β 4.9 β 3.9 β β - Administration costs β 15.87 β 11.68 β 4.20 β 35.9 β 6.9 β 6.3 β β - Other expenses / income β 0.00 β 0.00 β 0.00 β 0.0 β 0.0 β 0.0 β ββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = OPERATING PROFIT β 21.32 β 3.54 β 17.78 β 502.6 β 9.3 β 1.9 β ββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β ± Net investment β 2.88 β 3.87 β -0.99 β -25.6 β 1.3 β 2.1 β β ± Extraordinary income β 0.00 β 0.00 β 0.00 β 0.0 β 0.0 β 0.0 β β - Income taxes β 9.96 β 0.00 β 9.96 β 0.0 β 4.3 β 0.0 β ββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = NET INCOME (NI) β 8.48 β -0.33 β 8.82 β-2634.3 β 3.7 β -0.2 β ββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β + Depreciation β 5.90 β 5.90 β 0.00 β 0.0 β 2.6 β 3.2 β β + Pension reserves β 4.51 β 3.75 β 0.76 β 20.3 β 2.0 β 2.0 β ββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = CASH FLOW AFTER TAX (CF) β 18.89 β 9.32 β 9.58 β 102.8 β 8.2 β 5.0 β β βββββββββββββββββββββββββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β OPERATING INCOME β 21.32 β 3.54 β 17.78 β 502.6 β 9.3 β 1.9 β β - Taxes from Operating Income β 11.72 β 1.95 β 9.78 β 502.6 β 5.1 β 1.1 β β = NET OPERATING INCOME (NOI) β 9.59 β 1.59 β 8.00 β 502.6 β 4.2 β 0.9 β ββββββββββββββββββββββββββββββββββββββββββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ ββββββββββββββββββββββββββββββββββββββββββββββββ€βββββββββ€βββββββββ€ββββββββββββββββββ€ββββββββββββββββββ β β β β Changes β % of NA β β NET ASSETS (NA) β Period β Prev.p.ββββββββββ¬βββββββββΌβββββββββ¬βββββββββ’ β β (mEUR) β (mEUR) βAbsoluteβ % β Period β Prev.p.β β βββββββββββββββββββββββββββββββββββββββββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββͺβββββββββ£ β Land and buildings β 6.00 β 6.25 β -0.25 β -4.0 β 5.3 β 4.7 β β Machinery and equipment β 51.80 β 57.45 β -5.65 β -9.8 β 46.0 β 43.4 β ββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = Fixed assets β 57.80 β 63.70 β -5.90 β -9.3 β 51.3 β 48.1 β ββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β Material β 8.73 β 8.84 β -0.11 β -1.3 β 7.8 β 6.7 β β Finished goods β 0.00 β 0.00 β 0.00 β 0.0 β 0.0 β 0.0 β β Accounts receivable β 45.95 β 36.92 β 9.03 β 24.5 β 40.8 β 27.9 β β Securities and cash β 0.10 β 22.94 β -22.84 β -99.6 β 0.1 β 17.3 β ββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β = Current assets β 54.78 β 68.70 β -13.92 β -20.3 β 48.7 β 51.9 β ββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β NET ASSETS (NA) β 112.58 β 132.40 β -19.82 β -15.0 β 100.0 β 100.0 β ββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββΌβββββββββ’ β EQUITY β 60.30 β 51.82 β 8.48 β 16.4 β 53.6 β 39.1 β ββββββββββββββββββββββββββββββββββββββββββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ§βββββββββ TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 78 Average interest rate for CFROI j = 13.0% βββββββββββββββββββββββββββββββββββββββ€βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β β Periods β β RATIOS ββββββββ¬βββββββ¬βββββββ¬βββββββ¬βββββββ¬βββββββ¬βββββββ¬βββββββ¬βββββββ’ β β 0 β 1 β 2 β 3 β 4 β 5 β 6 β 7 β β β ββββββββββββββββββββββββββββββββββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββͺβββββββ£ β i WACC after tax % β 8.0 β 7.9 β 8.0 β 7.9 β 8.0 β 7.7 β 7.2 β -0.2 β β βββββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β 1 Net Operating Income (NOI) mEUR β 5.7 β 3.0 β 12.4 β 3.3 β 20.1 β 6.5 β 1.6 β 9.6 β β β 2 Cash-flow (CF) mEUR β 13.6 β 14.2 β 20.3 β 19.4 β 28.8 β 14.3 β 9.3 β 18.9 β β β 3 Net Assets (NA) mEUR β 71.5 β 81.2 β107.3 β101.8 β131.0 β118.9 β132.4 β112.6 β β βββββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β 4 RONA (NOI/NA) % β 8.0 β 3.7 β 11.6 β 3.2 β 15.4 β 5.4 β 1.2 β 8.5 β β β 5 EVA (NOI - i% * NA) mEUR β 0.0 β -3.4 β 3.8 β -4.8 β 9.7 β -2.7 β -8.0 β 9.9 β β β 6 EVA (period - prev.period) mEUR β 0.0 β -3.4 β 7.3 β -8.6 β 14.4 β-12.3 β -5.3 β 17.8 β β β 7 CFROI (CF/NA) % β 19.0 β 17.5 β 18.9 β 19.0 β 22.0 β 12.1 β 7.0 β 16.8 β β β 8 DTCF (CF - j% * NA) mEUR β 4.3 β 3.6 β 6.4 β 6.1 β 11.7 β -1.1 β -7.9 β 4.3 β β β 9 DDTCF (DTCF:per.-prev.per.) mEUR β 0.0 β -0.7 β 2.8 β -0.2 β 5.6 β-12.9 β -6.8 β 12.2 β β β 10 MVA mEUR β 17.2 β 15.9 β 37.4 β 72.9 β111.2 β125.5 β 92.4 β120.0 β β βββββββββββββββββββββββββββββββββββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββΌβββββββ’ β 11 EBIT mEUR β 10.4 β 5.5 β 22.6 β 5.9 β 36.6 β 11.7 β 3.5 β 21.3 β β β 12 EBITDA mEUR β 17.5 β 16.1 β 30.5 β 13.8 β 44.5 β 17.6 β 9.4 β 27.2 β β β 13 CASH-FLOW-Statement Int'l. mEUR β 16.2 β 26.0 β 10.3 β 14.6 β 20.2 β 25.3 β 8.0 β 10.0 β β βββββββββββββββββββββββββββββββββββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ§βββββββ ad 4: RONA = Return on Net Assets ad 5: EVA = Economic Value Added ad 7: CFROI = Cash flow Return on Investment ad 8: DTCF = Difference Total Cash flow ad 9: DDTCF = Delta Difference Total Cash flow ad 10: MVA = Market Value Added = Value of company minus Equity In this report, you will find the relevant figures concerning controlling. At the top of the table, initial figures are stated, and the calculations are also explained. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 79 5.2.17 Scenario βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 17 SCENARIO β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ βββββββββββββββββββββββ€ββββββββββββββββββββ€ββββββββββββββββββββ€ββββββββββββββββββββ β β βlast calcul. periodβ next period β βββββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββ’ β BULK BUYER β units β 7000 β 7000 β β β price (EUR/unit) β 2700 β 2700 β βββββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββ’ β WAGES & SALARIES β purchase β 37 β 37 β β (TEUR) β administration β 34 β 34 β β β production β 37 β 37 β β β R & D β 53 β 53 β β β sales β 49 β 49 β βββββββββββββββββββββββ§ββββββββββββββββββββ§ββββββββββββββββββββ§ββββββββββββββββββββ βββββββββββββββββββββββββββββββββββββββββββ€ββββββββββββββββββββ€ββββββββββββββββββββ β PRODUCTION β Product 1 - old β Product 1 - new β βββββββββββββββββββββββββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββ’ β Units material/parts per product β 1.00 β 1.00 β β Capacity per product (Units) β 1.00 β 0.90 β β Production capacity/person (Units) β 45 β 50 β β Factory material (EUR/unit) β 46 β 40 β βββββββββββββββββββββββββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββ’ β PURCHASE OF INPUT MATERIALS/PARTS β Product 1 - old β Product 1 - new β βββββββββββββββββββββββββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββ’ β to < 30000 units β 750 β 600 β β to < 50000 units β 635 β 500 β β to < 70000 units β 519 β 400 β β from 70000 units β 462 β 350 β βββββββββββββββββββββββββββββββββββββββββββ§ββββββββββββββββββββ§ββββββββββββββββββββ βββββββββββββββββββββββ€ββββββββββββββββββββ€ββββββββββββββββββββ€ββββββββββββββββββββ β β βlast calcul. periodβ next period β βββββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββ’ β RECRUITMENT COSTS β TEUR β 14.0 β 14.0 β βββββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββ’ β INTERESTS (%) β securities β 6.0 β 6.0 β β β Med-term loan 1 β 13.6 β 11.9 β β β Med-term loan 2 β 15.6 β 13.9 β β β Med-term loan 3 β 17.6 β 15.9 β β β Long-term loans β 11.6 β 9.9 β β β Overdraft loans β 17.6 β 15.9 β βββββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββ’ β EXCHANGE RATE β EUR/FCU β 1.35 β 1.35 β βββββββββββββββββββββββ§ββββββββββββββββββββ§ββββββββββββββββββββ§ββββββββββββββββββββ βββββββββββββββββββββββ€ββββββββββββββββββββ€ββββββββββββββββββββ€ββββββββββββββββββββ β TRANSPORTATION COSTSβ βlast calcul. periodβ next period β βββββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββ’ β Product 1, Market 1 β EUR/unit β 70 β 70 β β Product 1, Market 2 β EUR/unit β 165 β 165 β β Product 2, Market 1 β EUR/unit β 255 β 255 β β Product 2, Market 2 β EUR/unit β 340 β 340 β βββββββββββββββββββββββ§ββββββββββββββββββββ§ββββββββββββββββββββ§ββββββββββββββββββββ βββββββββββββββββββββββ€ββββββββββββββββββββ€ββββββββββββββββββββ€ββββββββββββββββββββ β PRODUCTION LINES β Type A β Type B β Type C β βββββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββΌββββββββββββββββββββ’ β Procurement value β 20.0 β 25.0 β 30.0 β β Remaining life β 10 β 10 β 15 β β Capacity β 14000 β 18000 β 22000 β βββββββββββββββββββββββ§ββββββββββββββββββββ§ββββββββββββββββββββ§ββββββββββββββββββββ TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 80 βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β Nr. 17b DESCRIPTION OF THE SCENARIO β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β COMMUNICATION, Page 1 β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ’ β After last year's economic slump, the experts are predicting an β β economic recovery in the in the present year. It is assumed that β β β β in real terms the gross national product will increase by 2%,. β β in real terms investments will increase by 2%, β β the cost of living will stagnate, and β β wages and salaries will increase by 7%. β β β β Nevertheless, the willingness to invest on the part of companies is β β still not completely satisfactory. However, neither the Federal bank β β nor the state is expected to take economic measures. β β β β At the most recent meetings of OPEC the oil-producing states failed β β to fix output and prices compulsorily. Therefore, in the coming year β β a fall in prices on the crude oil-market is expected which will reduce β β the costs of factory materials to 46 Euro for the product 1 (blackβ β and-white photocopiers). β β β β The following information is available on the development of demand β β for black-and-white photocopiers: β β β β The dual effect of the trend in prices on the market for black-andβ β white photocopiers and the economic recovery indicates a small β β increase in demand for the short-term and a larger increase in the β β companies' demand for the medium-term. β β β β The departmental buyer of the well-known commercial chain β β MEGRO is interested in product 1. MEGRO is prepared to purchase β β every quantity between 1 and a maximum of 5000 per company at β β the price of 2500 Euro per copier. β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 81 5.2.18 Decisions Data Report βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β Decision Data Report Company 2 β β βββββββββββββββββββββββ€βββββββββββββββββββββββββββββββββββββββββββββ€βββββββββββ€βββββββββββ£ β β β Per. 7 β Per. 8 β ββββββββββββββββββββββββΌβββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β PRICE β Product 1 Market 1 (EUR/unit) β 2798 β β β β Product 1 Market 2 (FCU/unit) β 2098 β β β β Product 2 Market 1 (EUR/unit) β 9000 β β β β Product 2 Market 2 (FCU/unit) β 6850 β β ββββββββββββββββββββββββΌβββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β ADVERTISING β Product 1 Market 1 (mEUR) β 7.00 β β β β Product 1 Market 2 (mEUR) β 2.50 β β β β Product 2 Market 1 (mEUR) β 0.50 β β β β Product 2 Market 2 (mEUR) β 0.50 β β ββββββββββββββββββββββββΌβββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β SALES β Market 1 (No. of people) β 120 β β β β Market 2 (No. of people) β 37 β β ββββββββββββββββββββββββ΄βββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β MARKET RESEARCH REPORT (Y/N) β β β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β BULK BUYERS (units) β 7000 β β β BID PRICE FOR TENDER (EUR/unit) β β β β EXPENDITURE FOR CORPORATE IDENTITY (mEUR) β 2.0 β β ββββββββββββββββββββββββ¬βββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β PRODUCT DEVELOPMENT β β β β β ββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β β Product 1-old Technology (No.of ppl.) β 34 β β β β Ecology (mEUR) β 2.50 β β β β Value Analysis (mEUR) β 1.00 β β β ββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β β Product 1-new Technology (No.of ppl.) β 30 β β β β Ecology (mEUR) β 0.00 β β β β Value Analysis (mEUR) β 1.00 β β β ββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β β Product 2-new Technology (No.of ppl.) β 50 β β β β Ecology (mEUR) β 3.00 β β β β Value Analysis (mEUR) β 1.00 β β ββββββββββββββββββββββββ΄βββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β RELAUNCH (Y/N) β N β β β NEW LAUNCH (Y/N) β N β β ββββββββββββββββββββββββ¬βββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β PURCHASING β Raw materials/parts Product 1 (units) β 71000 β β β β Product 2 (units) β 0 β β β ββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β β Subcontracting Product 2 (units) β 2500 β β ββββββββββββββββββββββββΌβββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β PRODUCTION β Production volume Product 1 (units) β 74262 β β β β Product 2 (units) β 0 β β β ββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β β Production lines Investment (No.new l.) β 0 β β β β Type A Disinvestment (No.) β β β β β Maintenance (mEUR) β 0.0 β β β β Rationalization (mEUR) β 0.0 β β β ββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β β Production lines Investment (No.new l.) β 0 β β β β Type B Disinvestment (No.) β β β β β Maintenance (mEUR) β 0.0 β β β β Rationalization (mEUR) β 0.0 β β β ββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β β Production lines Investment (No.new l.) β 0 β β β β Type C Disinvestment (No.) β β β β β Maintenance (mEUR) β 0.8 β β β β Rationalization (mEUR) β 0.0 β β β ββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β β Process optimising projects (mEUR) β 1.0 β β β β Training (mEUR) β 3.0 β β β β Investment in environmental plants (mEUR) β 0.0 β β β ββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β β Production personnel (Recr./Dism.) β 196 β β β β Non-salary staff costs (%) β 39 β β ββββββββββββββββββββββββΌβββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β FINANCING β Medium-term loans (mEUR) β 0.0 β β β β Long-term loans (mEUR) β 0.0 β β β β Dividends (% of income) β 50 β β β β Purchase of securities (mEUR) β 0.0 β β ββββββββββββββββββββββββΌβββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββΌβββββββββββ’ β PLANNED FIGURES β Revenues Product 1 Market 1 (mEUR) β 170.7 β β β β Revenues Product 1 Market 2 (mEUR) β 28.4 β β β β Revenues Product 2 Market 1 (mEUR) β 18.0 β β β β Revenues Product 2 Market 2 (mEUR) β 4.6 β β β β Return on Equity (%) β 20.0 β β β β Cash-flow (mEUR) β 14.0 β β ββββββββββββββββββββββββ§βββββββββββββββββββββββββββββββββββββββββββββ§βββββββββββ§βββββββββββ TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 82 5.2.19 Profit and Loss Statement, Balance Sheet (US-GAAP) βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 8 PROFIT AND LOSS STATEMENT, BALANCE SHEET (US-GAAP) β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β β β PROFIT and LOSS STATEMENT β β β β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ€ββββββββββ€ββββββββββ€ββββββββββ€ββββββββββ£ β Total Cost Accounting mEUR β Period βPrev.per.β Cha.(%) β % o.sal.β β ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββͺββββββββββͺββββββββββͺββββββββββͺββββββββββ£ β SALES REVENUE β 229.77 β 184.59 β 24.47 β 100.00 β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β - Cost of products sold β 151.66 β 130.52 β 16.20 β 66.01 β β - Sales costs β 29.76 β 31.69 β -6.09 β 12.95 β β - R & D costs β 11.16 β 7.17 β 55.60 β 4.86 β β - Administration costs β 15.87 β 11.68 β 35.93 β 6.91 β β ± Other expenses / income β 0.00 β 0.00 β 0.00 β 0.00 β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β = OPERATING RESULT β 21.32 β 3.54 β 502.60 β 9.28 β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β + Yield from securities β 0.00 β 0.00 β 0.00 β 0.00 β β - Interest and similar expenses β 2.88 β 3.87 β -25.58 β 1.25 β β βββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β = RESULT FROM REGULAR BUSINESS OPERATIONS β 18.44 β -0.33 β -5609.6 β 8.02 β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β Extraordinary income β 0.00 β 0.00 β 0.00 β 0.00 β β - Extraordinary expenses β 0.00 β 0.00 β 0.00 β 0.00 β β βββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β = EXTRAORDINARY PROFIT/LOSS β 0.00 β 0.00 β 0.00 β 0.00 β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β - Taxes from income β 9.96 β 0.00 β 0.00 β 4.33 β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β = PROFIT/LOSS FOR PERIOD β 8.48 β -0.33 β -2634.3 β 3.69 β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ§ββββββββββ§ββββββββββ§ββββββββββ§ββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ€ββββββββββ€ββββββββββ€ββββββββββ€ββββββββββ β APPROPRIATION OF NET INCOME mEUR β Period βPrev.per.β Cha.(%) β % o.sal.β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β Profit/Loss for period β 8.48 β -0.33 β -2634.3 β 3.69 β β ± Loss carried forward from previous period β -0.33 β 0.00 β 0.00 β -0.15 β β - Transfer into revenue reserves β 4.07 β 0.00 β 0.00 β 1.77 β β = Balance sheet profit (Dividends) / Bal.sh.loss β 4.07 β -0.33 β -1317.2 β 1.77 β β - Distributive amount (Dividends) β 4.07 β 0.00 β 0.00 β 1.77 β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββΌββββββββββΌββββββββββΌββββββββββΌββββββββββ’ β = Loss carried forward β 0.00 β -0.33 β -100.00 β 0.00 β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ§ββββββββββ§ββββββββββ§ββββββββββ§ββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β β β BALANCE SHEET in mEUR β β β β βββββββββββββββββββββββββββββββ€βββββββββ¦βββββββββ¦βββββββββββββββββββββββββββββββ€βββββββββ¦βββββββββ£ β ASSETS β Period βPrev.perβ LIABILITIES β Period βPrev.perβ ββββββββββββββββββββββββββββββββΌβββββββββ«βββββββββ«βββββββββββββββββββββββββββββββΌβββββββββ«βββββββββ’ β FIXED ASSETS β 57.80 β 63.70 β OWNERS' EQUITY β 60.30 β 51.82 β β Property, Plant and Equipm. β β β Subscribed capital β 15.00 β 15.00 β β Land and Buildings β 6.00 β 6.25 β Capital reserves β 2.50 β 2.50 β β Machinery and Equipment β 51.80 β 57.45 β Revenue reserves β 34.65 β 34.65 β β β β β Loss carried forward β -0.33 β 0.00 β β β β β Profit/Loss for period β 8.48 β -0.33 β β β β β β β β β CURRENT ASSETS β 54.78 β 68.70 β PENSION RESERVES β 36.09 β 31.58 β β Inventories β β β β β β β Material β 8.73 β 8.84 β β β β β Finished goods β 0.00 β 0.00 β LIABILITIES β 16.19 β 49.00 β β Accounts receivable β 45.95 β 36.92 β Long term loans > 5 periodsβ 0.00 β 0.00 β β Securities β 0.00 β 0.00 β Short term loans < 1 periodβ 0.00 β 49.00 β β Cash β 0.10 β 22.94 β Overdraft loan β 16.19 β 0.00 β ββββββββββββββββββββββββββββββββΌβββββββββ«βββββββββ«βββββββββββββββββββββββββββββββΌβββββββββ«βββββββββ’ β BALANCE SHEET TOTAL β 112.58 β 132.40 β BALANCE SHEET TOTAL β 112.58 β 132.40 β ββββββββββββββββββββββββββββββββ§βββββββββ©βββββββββ©βββββββββββββββββββββββββββββββ§βββββββββ©βββββββββ ββββββββββββββββββββββββββββββββ€βββββββββ¦βββββββββ¦βββββββββββββββββββββββββββββββ€βββββββββ¦βββββββββ β β Period βPrev.perβ β Period βPrev.perβ ββββββββββββββββββββββββββββββββΌβββββββββ«βββββββββ«βββββββββββββββββββββββββββββββΌβββββββββ«βββββββββ’ β RATING β 122 β 90 β Modification of Interest Rateβ -1.13 β 0.65 β ββββββββββββββββββββββββββββββββ§βββββββββ©βββββββββ©ββββββββββββββββββββββββββββ_ββ§βββββββββ©βββββββββ TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 83 5.2.20 Financial Report and Balance Sheet (US-GAAP) βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β No. 9 FINANCIAL REPORT AND CASH FLOW STATEMENT (US-GAAP) β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββ€βββββββββββββββββ€βββββββββββββββββββββββββ β β CURRENT β PLANNING FOR THE β β FINANCIAL REPORT in mEUR β PERIOD β NEXT PERIOD β β ββββββββββββββββββββββββββββββββββββββββββββββββββββββͺβββββββββββββββββͺβββββββββββββββββββββββββ£ β INITIAL CASH BALANCE β 22.94 β β βββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌβββββββββββββββββββββββββ’ β CASH IN: β β β β Cash in from sales current period β 183.81 β β β + Cash in from sales previous period β 36.92 β β β + Securities β 0.00 β β β + Yield on securities β 0.00 β β β + Extraordinary income/Share capital incr. β 0.00 β β β + Disinvestment of production lines β 0.00 β β β + Medium and long-term loans β 0.00 β βββ βββ β β + Overdraft loan β 16.19 β β β ββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌβββββββββββββββββββββββββ’ β = TOTAL CASH IN β 236.92 β β βββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌβββββββββββββββββββββββββ’ β CASH OUT: β β β β Purchase input mat./parts + fact.mat. β 27.82 β β β + Subcontracting β 14.38 β β β + Personnel costs (- Pension reserves) β 111.50 β β β + Other expenses β 44.23 β β β + Pay back medium-term & overdraft loans β 49.00 β β β + Interest paid on loans β 2.88 β βββ βββ β β + Purchase of production lines β 0.00 β β β + Purchase of securities β 0.00 β β β + Purchase of environmental plants β 0.00 β β β + Taxes from income β 9.96 β β β + Pay out of dividends (previous period) β 0.00 β β β + Extraordinary expenses β 0.00 β β β ββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌβββββββββββββββββββββββββ’ β = TOTAL CASH OUT β 259.76 β β βββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌβββββββββββββββββββββββββ’ β FINAL CASH BALANCE β 0.10 β β βββββββββββββββββββββββββββββββββββββββββββββββββββββββ§βββββββββββββββββ§βββββββββββββββββββββββββ βββββββββββββββββββββββββββββββββββββββββββββββββββββββ€βββββββββββββββββ€βββββββββββββββββββββββββ β CASH FLOW STATEMENT (US-GAAP) β in mEUR β β β ββββββββββββββββββββββββββββββββββββββββββββββββββββββͺβββββββββββββββββͺβββββββββββββββββββββββββ£ β Net earnings / net loss for period β 8.48 β β β Depreciation of fixed assets β 5.90 β β β Increase of pension fund β 4.51 β β β Changes in current assets β β β β Increase (-) / Decrease (+) of raw material β 0.11 β β β Increase (-) / Decrease (+) of finished productsβ 0.00 β β β Increase (-) / Decrease (+) of receivables β -9.03 β β β βββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌβββββββββββββββββββββββββ’ β A. NET CASH PROVIDED/USED BY OPERATING ACTIVITIES β 9.97 β 9.97 β βββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌβββββββββββββββββββββββββ’ β Investments in fixed assets β 0.00 β β β βββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌβββββββββββββββββββββββββ’ β B. NET CASH USED IN INVESTING ACTIVITIES β 0.00 β 0.00 β βββββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌβββββββββββββββββββββββββ’ β Increase of subscribed capital β 0.00 β β β Prior periods dividend paid β 0.00 β β β Increase (-) / Decrease (+) of securities β 0.00 β β β Increase (+) / Decrease (-) of bank loans β -32.81 β β β βββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌβββββββββββββββββββββββββ’ β C. NET CASH PROVIDED/USED BY FINANCING ACTIVITIES β -32.81 β -32.81 β β βββββββββββββββββββββββββββββββββββββββββββββββββββββΌβββββββββββββββββΌβββββββββββββββββββββββββ’ β D. NET INCREASE (+) / DECREASE (-) OF CASH (A+B+C) β -22.84 β -22.84 β βββββββββββββββββββββββββββββββββββββββββββββββββββββββ§βββββββββββββββββ§βββββββββββββββββββββββββ TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 84 5.3 Analyses Under the menu item Reports, TOPSIM - General Management II allows you to compile specific Analyses Reports for a seminar yourself using the Analyses Reports command. To enable you to do this, the management game provides you with a range of variables that you can select under File / Instructorβs Data / Define Variables for Analyses. With the menu item "Analyses Reports" the reports are produced. They show the variables that you have selected. You can print out the reports or look at them on the screen. Example of a report: ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β ANALYSES β βββββββββββββββββββββββββββ¬ββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ¬βββββββββ’ β β PERIODS β β β βββββββββ¬ββββββββ¬ββββββββ¬ββββββββ¬ββββββββ¬ββββββββ¬ββββββββ¬ββββββββ¬ββββββββΌβββββββββ’ β RESULTS β 0 β 1 β 2 β 3 β 4 β 5 β 6 β 7 β 8 βTot./Av.β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Value of Company C1β 49.8 β 49.5 β 70.5 β 90.0 β 123.9 β 115.5 β 151.2 β 178.8 β 189.1 β 113.1 β β C2β 49.8 β 47.7 β 78.5 β 117.7 β 169.3 β 179.6 β 144.3 β 180.3 β 203.5 β 130.1 β β (mUSD) C3β 49.8 β 51.3 β 55.6 β 89.8 β 135.1 β 149.3 β 112.3 β 151.0 β 164.6 β 106.5 β β C4β 49.8 β 36.6 β 47.1 β 48.8 β 39.2 β 14.1 β 0.0 β 0.0 β 0.0 β 39.3 β β C5β 49.8 β 36.6 β 47.1 β 40.5 β 22.7 β 0.0 β 0.0 β 0.0 β 0.0 β 39.3 β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Corporate Image Index C1β 100.0 β 102.1 β 106.7 β 109.3 β 115.7 β 114.3 β 107.6 β 104.5 β 103.0 β 107.0 β β C2β 100.0 β 103.5 β 109.8 β 112.2 β 112.7 β 108.6 β 110.7 β 105.7 β 104.4 β 107.5 β β (Index) C3β 100.0 β 104.0 β 103.9 β 103.4 β 107.6 β 105.0 β 105.7 β 105.0 β 106.1 β 104.5 β β C4β 100.0 β 100.7 β 101.5 β 102.0 β 102.7 β 98.3 β 98.9 β 99.7 β 100.5 β 100.5 β β C5β 100.0 β 100.7 β 101.5 β 102.0 β 102.7 β 98.3 β 98.9 β 99.7 β 100.5 β 100.5 β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Production Staff C1β 5.9 β 5.6 β 5.3 β 2.3 β 3.1 β 1.6 β 2.7 β 5.4 β 5.1 β 4.1 β β Absenteeism C2β 5.9 β 6.0 β 4.1 β 3.4 β 3.0 β 1.6 β 5.4 β 6.1 β 5.6 β 4.6 β β (%) C3β 5.9 β 6.5 β 5.6 β 3.3 β 4.6 β 2.6 β 8.0 β 7.7 β 7.8 β 5.8 β β C4β 5.9 β 5.8 β 4.9 β 4.4 β 4.3 β 4.1 β 4.5 β 4.5 β 4.1 β 4.7 β β C5β 5.9 β 5.8 β 4.9 β 4.4 β 4.3 β 4.2 β 4.7 β 4.4 β 4.2 β 4.7 β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Training C1β 1β 3β 4β 1β 1β 5β 2β 2β 2β 18 β β Expenditure/Period C2β 1β 1β 2β 2β 3β 0β 4β 3β 3β 19 β β (mUSD) C3β 1β 2β 1β 2β 6β 1β 1β 1β 1β 15 β β C4β 1β 1β 1β 1β 1β 1β 1β 1β 1β 5β β C5β 1β 1β 1β 1β 1β 1β 1β 1β 1β 5β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Training C1β 1.00 β 1.03 β 1.05 β 1.05 β 1.04 β 1.05 β 1.05 β 1.04 β 1.04 β β β Quality Index C2β 1.00 β 1.01 β 1.02 β 1.03 β 1.04 β 1.03 β 1.04 β 1.04 β 1.04 β β β (Index) C3β 1.00 β 1.02 β 1.02 β 1.02 β 1.05 β 1.04 β 1.04 β 1.03 β 1.02 β β β C4β 1.00 β 1.00 β 1.00 β 0.99 β 0.99 β 0.99 β 0.98 β 0.98 β 0.97 β β β C5β 1.00 β 1.00 β 1.00 β 0.99 β 0.99 β 0.99 β 0.98 β 0.98 β 0.97 β β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Process Optimization C1β 0β 0β 3β 2β 1β 4β 2β 2β 2β 14 β β Expenditure/Period C2β 0β 1β 2β 2β 2β 0β 4β 1β 1β 13 β β (mUSD) C3β 0β 2β 1β 2β 8β 1β 2β 2β 2β 19 β β C4β 0β 0β 0β 0β 0β 0β 0β 0β 0β 0β β C5β 0β 0β 0β 0β 0β 0β 0β 0β 0β 0β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Process Optimization C1β 1.00 β 1.00 β 1.02 β 1.02 β 1.01 β 1.01 β 1.01 β 1.00 β 1.00 β β β C2β 1.00 β 1.00 β 1.02 β 1.02 β 1.02 β 1.01 β 1.01 β 1.00 β 1.00 β β β (Index) C3β 1.00 β 1.02 β 1.02 β 1.02 β 1.04 β 1.03 β 1.02 β 1.02 β 1.01 β β β C4β 1.00 β 1.00 β 1.00 β 1.00 β 1.00 β 1.00 β 1.00 β 1.00 β 1.00 β β β C5β 1.00 β 1.00 β 1.00 β 1.00 β 1.00 β 1.00 β 1.00 β 1.00 β 1.00 β β βββββββββββββββββββββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌββββββββΌβββββββββ’ β Productivity Index C1β 1.00 β 1.01 β 1.05 β 1.12 β 1.03 β 1.09 β 1.12 β 1.04 β 1.04 β β β C2β 1.00 β 1.00 β 1.02 β 1.04 β 1.05 β 1.10 β 1.08 β 1.03 β 1.03 β β β (Index) C3β 1.00 β 1.01 β 1.01 β 1.09 β 1.07 β 1.13 β 1.01 β 1.02 β 1.00 β β β C4β 1.00 β 1.00 β 1.01 β 1.02 β 1.02 β 1.02 β 1.00 β 0.99 β 0.99 β β β C5β 1.00 β 1.00 β 1.01 β 1.02 β 1.02 β 1.01 β 1.00 β 1.00 β 0.99 β β βββββββββββββββββββββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§ββββββββ§βββββββββ TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 85 6 Data Transfer: Data Exchange with the Participantsβ Systems If the participants are working on their own systems, they prepare and enter their decisions there. They may also look at the results from the last period there and print them out if required. The data exchange between the Instructorβs System and the Participantsβ System occurs either with the help of disks (so-called transfer disks or participantsβ disks) or via the network. You exchange data via the Data Transfer command on the main menu. Read/change installation paths: This item is only offered in the menu if you have started TOPSIM - General Management II as a network version (Parameter u/net, see the section of the manual called Introduction and Installation) Before entering the file paths, the participantsβ systems should be installed because the instructorβs system checks whether the participantβs systems are present. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 86 Read teamsβ decision data : After the participants have saved their decisions (on disk or on the network) from their computers. Write results onto teams' systems : This occurs after a new period has been simulated. In addition to overwriting the report data, the instructorβs data is also overwritten because this data is required for the participantsβ Planning Models for the coming period. The last period simulated is acknowledged by the system and based on this, the Participantsβ System recognizes for which period the next decision/planning data is being entered. Initialize teams' (participantsβ) systems : This function is carried out at the beginning i.e. when the teamsβ systems are first used in the seminar. The disk version of TOPSIM - General Management II asks for the number of the team for each disk and saves this number on the disk. Afterwards, when reading the decisions or transferring the results, the program recognizes automatically to which group the disk belongs. With the network version, the file path for each company is entered. The results and number of the last period simulated are reported back to the participants (transfer of results). Do not forget to write down the teamsβ numbers on all the transfer disks! 6.1 Background For many years, disks were the common medium for transferring data so they were also used for the TOPSIM β Business Simulations. At the request of the users, the ability to use a network to transfer data was developed. Networks allow data to be exchanged directly and quickly (for example on university networks). Disk drives are not always in use anymore. Many workstations and computer labs no longer have disk drives, or else they are not installed. Since more data transfer possibilities are now available, we wish to provide you the flexibility to perform the data transfer you require in a variety of environments. The options you have available to you are described on the following pages. Please read the chapter attentively as the data exchange between instructorβs and participantsβ systems is very important for the simulation and because the variety of methods you can use to perform this function, it is possible to make errors. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 87 6.2 Overview Here is an overview of the options you have along with instructions in lists. The steps should be followed in the order stated (step 1 to step 11). During the seminar you must repeat the steps 7 to 11 several times. Step no. Instruction 1 Install the instructorβs system from the CD. 2 Install the participantsβ systems from the CD. 3 Define the data transfer settings in the instructor system. 4 Initialize the data transfer in the instructor system. 5 Provide data to the participants. 6 Define the data transfer settings in the participantsβ systems. 7 Import the data to the participantsβ systems 8 Save the data in the participantsβ system 9 Import the participantsβ data to the instructorβs system 10 Simulate the period. 11 Provide the results to the participants. (Repeat steps 7 to 11.) Steps 3 to 11 are explained again in the following points. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 88 6.2.1 Definition of the Data Transfer Settings in the Instructorβs System Use the Instructorβs System, Data Transfer command. Choose the first option Adjust Data Directories and a dialog box will appear prompting you to enter the file paths required. For all companies, drive A is usually selected. This means that you would enter the participantsβ data transfer disks in drive A. if you perform the data transfer with a USB-stick, you must change the file path. Finish by pressing βOKβ. We advise specifying the file path by using the tree view of the various directories. You can do so by clicking on the button indicated by the arrow in screenshot above. If necessary you should attach the individual lists. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 89 CAUTION: Depending on the data transfer medium, the drive can vary. For example, if you use a USB-stick, you may not always be able to access the data via the same drive. 6.2.2 Initialization of Data Transfer in the Instructorβs System Instructorβs System: Data Transfer command: Now you must select the last option: βInitialize Teams` Systemsβ. You must at first initialize the systems of all companies, however, later on you can choose to do so for only specific companies. While the simulation is in progress, you can add a company to the game, and you can change the file paths of the companies as well and re-initialize the system. After selecting the option βInitialize participant systemβ the following message appears before writing the data. If necessary, the file path can be changed at this point, however, even if you do not wish to change the data medium, you will receive this prompt. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 90 Upon completion, you will see the following message: 6.2.3 Provide Data to the Participants With the initialization of the participant system data is also assigned. Therefore copying the data to the participants is not normally necessary directly after initialization. 6.2.4 Define the Data Transfer Settings in the Participantβs System After opening the participant system the following dialog box appears: TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 91 Please click on the βNormal Modeβ button in the participantβs system. If the actual file path differs from the default file path, please enter the correct file path here or use the tree view button to select the correct directory. By clicking on βOKβ the file path is confirmed and shown in the field. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 92 6.2.5 Import the Data to the Participantβs System If necessary, click on βOKβ again to confirm the file path. The data will be read and will be available for the simulation. You will not need to re-enter this file path again as it is safely stored by the program. 6.2.6 Save the Data to the Participantβs System If the data medium is only temporarily available (e.g. using 1 USB-stick for all teams), you must first save the data locally before it can be accessed. That is done via the File menu in the participants system: File menu / Import Data from External Data Source command: You will see the following message appear. Afterwards, click on βOKβ. The data will be saved locally. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 93 After the data is stored the following message appears: Now you can take a USB-stick for example, and use it to transfer data between more than one company. It is possible to accomplish all of the data transfer with just one USB-stick. You can also decide to have one USB-stick per team, or some teams with disks and some teams with USB-sticks, or use a network. 6.2.7 Import the Participantβs Data to the Instructorβs System After making their decisions, the participants should submit them. To be safe, the decisions should be documented and delivered on paper. However, to simplify and accelerate the process, participantβs can also deliver their locally saved data as follows: First, write the data back onto the data medium from the participantβs system using the following command: File / Write Data The following prompt will appear again. After clicking on βOKβ the data is written to the specified file path. Then you will receive the following announcement. This step will occur for all of the participantβs systems. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 94 Through the instructorβs system, you can then import the decisions. Adjust Data Directories Only the data of selected companies (indicated by checkmarks in the check boxes) is imported. For each team selected, the following prompt will appear. After the last company has received its data, you will see the following message: Now you can arrange the usual period calculation. Afterwards you assign the results back to the participants with Data transfer / Assign Results to the Participants TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 95 6.2.8 Transfer Data to the Participants For the selected teams data transfer now begins. A message appears confirming that the data transfer will be attempted for each team. At the end of the transfer you get an affirmation: (See 6.2.6.) TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 96 6.3 Reset Participant System (βResetβ) If the file paths are specified for the data transfers, then the participant systems note the particular file paths for the companies and no longer asks for them to be entered. If the file paths of the participantsβ computers do not change throughout the seminar the data transfers can be easily performed. It is also possible, however, that the file paths change: β’ The letter of the drive changes β’ Participating groups share processors β’ Participating groups change processors, e.g. in a lab. β’ Participants use computers from former games, but take on a new company number In this case the file path setting of the participantβs system can be deleted. To do so please activate the menu command: File / Reset (terminate program). You will prompted to confirm your selection: Confirm by clicking βYesβ and enter the password βresetβ in the field provided: The participant system will then be terminated and the file path can be newly entered. 6.4 Note on the Network Version From version 10.2 there is no longer a difference between the network and disk versions. A special configuration (u/net) of the instructor and participant systems before opening them is not necessary anymore. As described above, all settings (including file paths on the network) can be defined directly and offer you a great deal of flexibility. In the participantβs systems, the file paths must be entered when you first open the program. We advise that you set up and test the data transfer over the network before beginning the seminar. Please note that the file paths of the participants systems on the network are entered directly, see tab 4, chapter 3. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 97 7. Analyses The Analyses menu offers you the following functions: β’ β’ β’ Generating interfaces for graphics programs, especially UNICON EXCEL-Analyses Show, Displaying results on the screen in chart of graph format, Displaying portfolio analyses for the whole industry and for individual companies. Here are some explanatory notes on the generation of interface files: By selecting this menu item the relevant files are automatically generated for βimportβ to a presentation graphics programs such as EXCEL according to the selection in Instructorβs Data β Define Analyses Variables While the file is being generated, the program shows which file is being processed on the information line. For example, for the variable 011 the file TOPHARV.011 is generated. The number, in this case 011, corresponds to the number in the list in Define Analyses Variables. The program saves the files in the βshowβ directory of the management game. You use the file name to display the variables graphically in the presentation program you have chosen. Other procedures apply if you are working with the analyses presentation function supplied by UNICON, see appendix in explanatory notes section. Important: The files use a semi-colon as a separator 7.1 On-Screen Graphs / Charts: Individual Results With this option you can select a chart to view on the screen. The variables are the same as those offered in the analyses report. By clicking on the OnScreen Charts/Graph function from the menu, a window appears with the different available variables in the order of their rank (see point 3.2.6). At the bottom of the screen you can choose the variables (for this example the share price variable is displayed). From the toolbar buttons, you may choose between different formats (for example line graphs or bar graphs). TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 98 In addition, you can also copy variables in order to use them: Camera: This function copies the current graph onto the clipboard. Scissors: This function copies names of variables onto clipboard. View values: Double-click on a bar in the bar chart to display the numerical value. View crosshairs: Keep the left mouse key pressed down in the box to view crosshairs that makes it easier for you to determine values. CAUTION: The on-screen charts/graphs can only be viewed if period 1 has already been simulated 7.2 Analyses of the Situation β Industry Portfolio Analyses TOPSIM - General Management II allows you to view graphs to analyse the situations and portfolios per company and per market. Although the situation analysis function is available on the Participantsβ System, the industry analysis function is available for them only if you authorized the βMarket Research Iβ report (see Activation of Features - Reports). Of course, the participant must also have chosen to buy the market research report. 7.2.1 Analyses of the Sector On the left-hand side of the window, you can select: β’ The company β’ The product and market (you should be able to select at least one product and market) β’ The values to be shown on the X- and Y-axis β’ The variables to be displayed (sales volume or sales revenue) β’ The period for which the data displayed is applicable After making these decisions, click on Draw. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 99 7.2.2 Company Portfolio Analyses First select the company. All active markets can be shown at the same time. Negative values are shown in grey. Graphic parameters: Via the button with the triangle on it, you can access a dialog box through which you can change the parameters of the charts. The charts are automatically scaled according to the maximum and the minimum values entered for each variable in the left-hand side of the dialog box. In order to prevent the circular areas in the charts from being displayed at the edges and outside of the grid, you can change the minimum / maximum values. The same applies to the market growth and market share variables. Maximum and Minimum Values for the Axis: TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 100 By adjusting these figures, you can modify the distance between the circles and the axis: - Minimum%: Enter a minimum percentage value for the axis. The middle of the circle should be above (to the right of) the axis at the bottom (left) of the screen. + Maximum%: Enter a maximum percentage value for the axis. The middle of the circle should be below (to the left of) the axis at the top (right) of the screen. Higher values move the circles toward the center of the grid. Model I corresponds to the industry situation analysis and Model II to the company situation analysis. The Length of the Radius: For technical reasons, the minimum and maximum lengths of the radii are predefined. The values can be modified in these fields. The maximum should be 28 and the minimum 8 or 10. These extremity values cannot be changed. 8 Exit All data for the current game (decisions, instructor's data, results) is saved when you exit the program. TOPSIM - General Management II Instructor's Manual - Explanatory Notes Page 101
