CAPSIM Quiz Questions and Solutions

CAPSIM Quiz Questions and Solutions How many products do you start with on the simulation? 5 What is the max amount of products you can have? 8 What are reliability ranges called in CAPSIM? MTBF (mean time before failure) What is MTBF? Each segment sets a 5,000 hr range, the number of hours a product is expected to operate before it malfunctions. What to customers want over time? The drift: faster and smaller products What is automation and what does it do? The more you automate, the cheaper it is. Reduces production costs. What are the costs of MTBF? Material cost increase $.30 for every additional 1,000 hours of reliability. What is the difference between where the circle is and the ideal spot? Dashed outer circle is the limit of where people will purchase the product. The fine inner circle is where customers prefer the product. The ideal spot is the point where demand is the highest. Traditional most and least important buying criteria? Most: Age Least: Reliability or MTBF Low end most and least important buying criteria? Most: Price Least: Reliability or MTBF High end most and least important buying criteria? Most: Ideal position Least: Price Performance most and least important buying criteria? Most: Reliability or MTBF Least: Age Size most and least important buying criteria? Most: Ideal position Least: Price What is awareness? It is the percentage of people who know about your product. It's built over time by the product's promo budget. Promotion budgets fund advertising and PR campaigns. The before. What is accessibility? It is the is the number of customers who can easily interact with your company. It's built over time by the product's sales budget. Sales budgets fund salespeople and distribution systems to service customers within the product's market segment. The after. What is the effect of awareness and the promo budget? If you don't spend, 1/3 of the people who knew about the product forget about it. You have to spend $1,000 to get it back where it was essentially. (last year's awareness - {33% * last years's awareness}) = starting awareness What is the effect of accessibility and the sales budget? If you don't spend, it drops 1/3. It applies to the segment not the product. If you have one product in a segment, there is no additional benefit to more than $3,000. Two products in a segment, no more than $4,500 (split between the 2). Once your product hits 100% accessibility, how do you maintain it? Scale back promo budget to $1,400 year after year and it will stay constant at 100%. What does it take to buy floor space? Each new unit of capacity costs $6 for the floor space plus $4 * automation rating. How do you get rid of a product? If you sell all the capacity in an assembly line. Capstone will sell remaining inventory for half of the avg. cost of production. If you want to sell it at full price, sell all but one unit of capacity.