R&D department – how to reposition an existing product
1. The perceptual map is how we track evolving customer demands in
this industry
a. Each of the solid circles – a market segment of customers with
similar prefer
...
R&D department – how to reposition an existing product
1. The perceptual map is how we track evolving customer demands in
this industry
a. Each of the solid circles – a market segment of customers with
similar preferences (customers expect your products to be
positioned within these solid circles)
b. Every year, the market segments are gradually drifting down
and to the right across he perceptual map
c. Change of Performance or Size coordinate will reposition the
product. (decrease the size and increase the performance)
d. The product is written in Red where you just moved the product
2. Age at Revision – how old your product will be when the age cuts in
half on the revision date
3. R&D Cost – how long the project will take the company to complete
a. 1 year will cost $1 million, 6 months will cost $500,000, and 4
months will cost $250,000
4. Material Cost –
a. Improving the design or increasing the MTBF has increased the
material cost of several products
5. In the actual simulation, you would research where you wanted to
invent a new product by studying market segment pages in your
reports (page 5-9)
6. Once a new product has been designed, the Revision Date and Age
Profile chart is not aging as the other products are, this is because the
new product will not come out of R&D until next year, then it will need
to go through the production department
Production department – how to schedule production for the products
and how to buy and sell assets in the simulation
1. Schedule: need to review the production analysis on p.4 of the reports
before making decisions in the production department during the real
simulation. (a great place to spy what the competitors are up too)
2. Production Schedule (entered in thousands): how much production
you can schedule for a product depends on your production capacity;
need to remember to factor in any inventory on hand while
determining how many units to produce for each product this year.
3. For the PRODUCTION SCHEDULE, you can schedule up to double
your first shift capacity (given) for each product since you have two
shifts of workers, workers on 2nd shift are paid time and half for labor.
4. For the UNIT SALES FORECAST has been provided by the marketing
depart. For each of your products. This forecast should represent the
company’s worst case scenario
5. It is okay to produce more units than you are forecasting to sell. For
the PRODUCTION AFTER ADJ. (the number of units you produce for a
product, given) should represent your best-case scenario, an extra
month or two worth of sales is a reasonable best-case scenario.
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