Home

Explanation_E_GM2_12_0

1. OTHER COSTS Misc fixed costs Maint Rationalization Process optimization Environmental tax Rework Scrap Storage costs Ads Mkt Research CI Misc R amp D costs Transport costs O1 01 2 I2 DOF W 50 00 17 OONFOOF W I O1 r2 Wo 1 Overtime included products Overhead The individual costs from the columns of the cost center accounts Overheads _ u _ Direct costs Production 13 20 due to absenteeism personnel not working at i full capacity Administration 12 50 fixed costs 14 51 2 59 S u EE Er 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 Admin staff requirement 243 persons Sales rev Prod2 63 84 mEUR Admin staff requirement 95 persons Total requirement 312 persons 30 02 5 20 s u possibly incl overtime Z EEEE E OSE NEEN ENEE EAE EA EEE Costs that one can allocate directly based on production output of 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 t
2. e he amount remaining after the deduction of the loss carried forward and dividends is allocated to retained earnings Cash Flow e 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 e 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 e 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 TATA Interactive Systems GmbH D 72070 T bingen Copyright c 2006 by TATA MANAGEMENT GAME Company 2 Period 7 TOPSIM General Management II DEMODATEN Date 10 1 2005 No 9 FINANCIAL REPORT AND BALANCE SHEET CURRENT PLAN FOR FINANCIAL REPORT mEUR PERIOD NEXT PERIOD CASH IN Cash in from sales current period Cash in from sales previous period Disposal of investments Investment income Extraordinary incame Share cap increase Disinvestment of production lines Medium and long term loans Overdraft loans TOTAL CASH IN CASH OUT Input material expenses Subcontracting Personnel costs Pension reserve Other ex
3. e 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 Can be allocated for specific purposes e Step Fixed Costs apply when overtime is required e g increased costs for plant security in house fire protection e Penalty on costs for wages and salaries e MRR Cost of market research reports for the period Planning Models Il Cost for each run This applies to both Planning Models on the Participants Systems The costs are included in Report 4 under the item Misc fixed costs Administration Basis for the simulation of the industry s volume Exchange rate EUR FCU Maximum possible overtime as 9e 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 Il Instructor s Manual Explanatory Notes Page 15 3 2 2 5 Company Comparison EN Data for the Periods Bl x Perind 5 bud Mkt StaffiLines Prod Purchasing Financing Other Company Comparison Corrections Cu 1 H Company Comparison mEUR Extraordinary Income Extraordinary Expense Severance Packages Change Prod Staff 95 Change Sales Staf 95 Enviro Penalty mEUR Lo
4. General Management Il Instructor s Manual Explanatory Notes Page 70 5 2 11 Out of Line Situations TATA Interactive Systems QmbH D 72070 T bingen Copyright c 2006 by TATA MANAGEMENT GAVE Campany 2 Period 7 TOPSIM General Management IT DEMODATEN Date 10 1 2005 No 11 OUI OF LINE SITUATIONS PERIODS Pee Peep yp te Cum Net incae Planning quality for per Cum planning quality TOPSIM General Management Il 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 instructors file Impact curves curves 53 58 Planning quality of period Total individual planning quality values for the period Cum planning quality Cumulative planning quality of previous periods Planning quality of period Earn cap value of period The earning capacity value of the period comprises of mEUR 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 Cumulative earning capacity value of previous periods mEUR Earning capacity va
5. Direct production costs 39 68 39 68 Transport costs 1 08 1 08 CONTRIBUTION MARGIN I 63324 0 f 63 24 Material FC Production FC Sales FC product Admin FC product MIILIT NM MEI FC company Research 2 19 Sales 8 52 Administration 4 78 CONTRIBUTION MARGIN IV 10 36 PRODUCT 1 CONTRIBUTION MARGINS Direct material costs 581 581 Direct production costs i 923 Transport costs 29 Material FC 42 Production FC ae 500 Sales FC product 140 140 Admin FC product 106 106 683 Tomen m _ ES coneisrson mecca on FC company Research Sales Administration CONTRIBUTION MARGIN IV FC Fixed Costs TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 64 5 2 8 Profit and Loss Statement and Cash Flow No 8 PROFIT and LOSS STATEMENT and CASH FLOW Total Cost Accounting Cost of Sales Accounting Increase Decrease in finished goods Cost Of Goods Sold inventory Material expenses Personnel costs Sales costs Wages and Salaries Hiring Dismissal costs R amp D costs Pension reserve Misc personnel costs Administration costs Depreciation t Other expenses income I Other expenses income OPERATING INCOME 21 32 OPERATING INCOME zd 9 Investment income 0 00 Interest expenses 2 88 INCOME FROM REGULAR BUSINESS OPERATIONS 18 44 Extraordinary income 0 00 E
6. Dividends mEUR 2 1 5 195 Zu wn 16 26 Banks Interest ey mEUR 29 44 26 32 18 37 TOTAL TO TOTAL TO INVESTORS BANKS mEUR mEUR 49 59 53 58 34 63 M a Direct taxes rss 48 70 S Od VAN Employee taxes 1 3139 137 82 131 11 Sa Taxes on dividends 3 34 4 64 2 94 D TOTAL TOWARDS GOVERNMENT mEUR 186 88 191 16 qj hv PRESERVATION OF REAL ASSET VALUE Product improvement mEUR 40 Invest machin amp markets mEUR 132 Addition to reserves mEUR TOTAL TO REAL ASSET VAL mEUR 305 51 304 62 291 04 REAL NET OUTPUT FOR THE ENTIRE INDUSTRY Company revenue 1456 08 1443 73 1390 10 Og Real net output 1 674 99 696 98 670 62 484 4 81 4 15 9 95 86 67 96 6 50 95 80 4 81 8 56 55 ki 6 76 97 34 0 83 104 92 40 95 132 80 4 13 177 88 Comp 5 927 67 482 70 Personnel costs The Corporate socio economic statement shows the contribution of the company from various perspectives Product improvement All expenses for R amp D Real net output Total expenditure of the company minus the input materials parts and outside production TOPSIM General Management ll Instructor s Manual Explanatory Notes Page 77 5 2 16 Value Oriented Ratios No 16 VALUE CRIENTED RATIOS PROFIT amp LOSS SIATEMENT ere aea Yoo Cost of products sold Sales costs R amp D costs Administration costs Other expenses incame Net investment Extraordinary inc
7. ES Apply all functions for the current period to all following periods TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 22 Brief description of graphed functions Description x axis Description y axis Advertising of sector of industry in 9o of in 9o on the sector of sales industry s volume Sector of industry s current average price in on the sector of divided by inflation industry s volume From curve 9 on the values refer to individual companies Variance Price from Industry s average Revision on the market price share Impact factor for Advertising as above Impact factor for Sales as above Technology Index as above Ecology Index as above 25 Cumulative expenses for CI as above Cumulative expenses R amp D for technology Technology Index mEUR 29 31 Cumulative expenses R amp D for ecology Ecology Index Cumulative expenses R amp D for value Value analysis index analysis 35 37 Expenses for maintenance mEUR Availability of production lines 76 38 40 Cumulative expenses for rationalization Rationalization Index Non salary staff costs Effect on rework expressed in of the payroll ae Technology Index as above Ex Value analysis index as above 44 48 Non salary staff costs 96 Staff attrition rate in 9o of the opening workforce Sales mEUR per product Personnel requirements Number Absolute variance Target Actual mEUR Value of planning quali
8. 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 pages 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 Il Instructor s Manual Explanatory Notes Page 11 3 2 2 1 Market Staff Lines EN Data for the Periods Mkt Staff Lines Prod Purchasing Financing Other Company Comparison Corrections Cu Hl Market Volume Personnal Production Lines Market Volume Bulk Buyer Tender Request for bids Personnel Wages and Salaries Production Costs TOPSIM General Management ll Instructor s Manual Explanatory Notes Product 1 mEUR Product 2 mEUR Bulk Buyer F1 Correction M12 Wages and Salaries thEUR Purchasing Administration Production R amp D cales Type Frac Wal mEUR Bl x Perind 5 Market 1 Market 2 max Preis fal
9. 1308 99 9 98 5 Product 2 0 2 0 0 18 0 0 0 0 0 Wunmne o j 9 es oo ENVIRONMENTAL TECHNOLOGY d4 Environmental ratings of production lines Cumulative investment in environmental plants Improvement of environmental ratios Environmental damage indicator for the company Tax payable to environmental authority next period 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 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 Procurement period E g Info 8 in Period 2 the production line was purchased 10 periods ago Acquisition value Original acquisition value of the line Remaining life Remaining economic life of the production lines in periods Periods The remaining life of the lines is actually endless i e depreciated lines are available for use in production Cf Line Type A No 3 and 4 Depreciation mEUR per Depreciation value in the period Net book value mEUR Acquisition value cumulative depreciation Other fixed costs mEUR
10. 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 Purchase Advertising Sales CI Administration R amp D TOPSIM General Management Il Instructor s Manual Explanatory Notes 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 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 Page 35 Others Value entered Result of the period Margin Purchase until others Period s results Cumulative results of all the periods Commentary on the graphs iol x Planned Figures Sales th Units Results of All Markets mEUR Market 1 Left part Light color on the bars Value of the total market Dark color on the bars Your particular value as part of the total market Right part Light colour of the bars revenue and costs Dark colour o
11. Before drawing up your analyses you should define each of the variables This is carried out in the following dialog box analyses variables 0 x No Title Subtitle Units port ewe eom rang Possible Sales Product 1 Market 1 Units TEE REST Possible Sales Product 1 Market 2 Units A E Possible Sales Product 2 Market 1 Units Y Y 0 33 Possible Sales Product 2 Market 2 Units TE SN S SS amp Actual Sales Product 1 Market 1 Units Y Y 0 36 amp Actual Sales Product 1 Market 2 Units Y y o 36 7 Actual Sales Product 2 Market 1 Units ZEN a 8 Actual Sales Product 2 Market 2 Units x leer ge 3 8 Possible Market Share Product 1 Market 1 0 Y vY 1 38 Possible Market Share Product 1 Market 2 Y Y 4a a Possible Market Share Product 2 Market 1 05 Y ty a at Possible Market Share Product 2 Market 2 a5 pere 13 Actual Market Share Product 1 Market 1 06 yly ai eae 14 Actual Market Share Product 1 Market 2 05 E CE la 15 Actual Market Share Product 2 Market 1 06 Y Y a 46 18 Actual Market Share Product 2 Market 2 05 Y Y a 46 ZI ni isl Print X Cancel H No 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 Title Tit
12. Cancel Help Values that are calculated automatically based on the values entered in the Resources section cannot be changed in the Balance Sheet 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 Il Instructor s Manual Explanatory Notes Page 10 3 2 1 3 3 2 2 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 ABl xl Data for the Starting Situation Before Period 0 Please enter the companies names Only 15 characters will be displayed You may use letters numbers spaces or hyphens Company 1 superCopy Company 2 Duplicat Company 3 Blue Line Company 4 Company 5 ane xeon tee 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
13. Data transfer Assign Results to the Participants TOPSIM General Management Il 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 O x c Data transfer 2 please make sure that path F AUT for company 1 is available See 6 2 6 TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 96 6 3 6 4 Reset Participant System Reset 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 participants computers do not change throughout the seminar the data transfers can be easily performed It is also possible however that the file paths change e The letter of the drive changes e Participating groups share processors e Participating groups change processors e g in a lab e Participants use computers from former games but take on a new company number In this case the file path setting of the participants system can be deleted To do so please activate the menu command File Reset terminate program You will prompted to confirm your selection 9 Reset Terminate Program Are you sure No Cancel The participant system will then be terminat
14. Double click in the file path field ta open the dialog box Company 1 f Company 2 E X Quit Company 3 fe Company 4 fe Help Company 5 fe Finish by pressing OK 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 Il Instructor s Manual Explanatory Notes Page 89 6 2 2 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 Initialization of Data Transfer in the Instructor s System Instructor s System Data Transfer command FESTE Data with Participants Systems i mi x Network version Please take care of the correct and complete Input of the participants directories Adjust Data Directories I Company 1 Read Teams Decision Data Company 2 W Company 3 Write Results onto Teams Systems 7 Company 4 Initialize Teams Systems Ww Company 5 Now you must select the last option Initialize Teams Systems 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 initializ
15. General Management Il 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 TATA Interactive Systems GmbH D 72070 T bingen Copyright c 2006 by TATA MANAGEMENT GAME Period 3 TOP SIM General Management II 6 Per Std Date 10 1 2005 PLANNING MODEL 2 Price EUR Un Product 1 3000 3000 b b ib FCU Un Product 1 il Advertis Sales People number Prod developm Technology Produc mEUR Product 1 Product 1 Product 4 Ecology Product d4 Product Corporate Identity Product 1 Relaunch Product 1 New launch Sales Units Prod 1 Market 592909 Prod 1 Market 0 0 Market Share of Sales Revenue Prod 1 Market Prod 1 Market mEUR Prod 1 Market Prod 1 Market Market Share of Revenue Remark Prod 1 Market 1 Prod 1 Market 2 It is possible to obtain different market shares even if you enter the same values for all the companies lt is actually because for example the advertising expenses from previous periods still affect the current period TOPSIM General Management ll 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 in
16. 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 l 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 0 97 97 availability Rationalization cum mEUR Expenses on rationalization Factor Achieved rationalisation factor Actual capacity Potential capacity Maintenance factor Rationalization Units factor Environm Index Environmental damage index of production lines Production staff dip LAN and Productivity Workforce Entire workforce in production Absenteeism Given in no of persons Influences on absenteeism non salary staff costs lean pro duction 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 2 because of the average rate of paid sick leave Utilizable staff As affected by total amount of absenteeism TOPSIM Gene
17. a Co Cl Col 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 Graphs of Functions you will see a window with the curves listed Values 1 Advert Ind val P1 Mit Price salume P1 hte Price alume P2 hl Price alume P2 he Price Mkt Sh P1T MT Agdvert Mkt Sh P1 M2 Agdvert Mkt Sh P2 M1 Agdvert Mkt Sh P2 M2 cales Market Sh M1 Technalagy Mkt Sh P1 Mew Technalagy Mkt Sh P2 Mew TechnologyfMkt Sh P1 Old vo isl Print 7 E Listing X Cancel Hel EJ B 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 EB 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 ES Apply all functions for the current period to the coming period
18. 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 show 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 On ssi Screen Charts Graph map function from the menu a i window appears with the w different available variables i in the order of their rank zi see point 3 2 6 At the X bottom of the screen you X can choose the variables W for this example the share za A E RUNE aaa ro price variable is displayed From the toolbar buttons Cte s Lampen d Possibis aet Prout 2 hiari you may choose between iheni eomm X Quit Help different formats for example line graphs or bar graphs TOPSIM General Management ll Instructor s Manual Explanatory Notes Page 98 7 2 7 2 1 In addition you can
19. 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 defi
20. 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 i Sales 260 00 mEUR 100 new 0 70 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 Relaunch Advertising Market Share New product launch EN Factors Cost Allocation iBl x These definitions apply for all companies and all periods Impact of Factors Cost Allocation Purchasing Material Value Direct Costs Capacity Required Production Yolume CGM Sales Revenue Admin Production R amp D Sales 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 instructor s report Impact of advertising when Product 1 is relaunched The impact of advertising during the relaunch is only 80 96 of the normal value it is set at this figure here Im
21. sa 3 ento r nuu ET 61 Profit and Loss Statement and Cash Flow seseseeeeen 65 Financial Report and Balance Sheet cccc cece cceeeeeeeeee ease eeeeeaeaeaeaeeesenenes 67 Overall Company Results ccccccccecec cece eee ee eens eee ee ee senem nee nennen 69 Vier LING SIUALIONS M P 71 Market Research Report I cccccccceeeececececeeeaeenceseeeeeseaegseseseeeaeseaeaseneaeans 73 Market Research Report Il sess nnns 74 Business Report on the INGUStry ccccececeeeeeeeeeeeeeeeeeeeesesesesesenenenetenenenes 76 Socio Economic Statement for the Entire Industry ccccececeeceeee nese eeeeees 77 Wallies Ornented I AIO S55 225 oesmeudu sien e Lp tee dee eee ae eee ce UL eet 78 SCCM all Ori cr eh ce e 80 TOPSIM General Management II Instructor s Manual Explanatory Notes 5 2 18 5 2 20 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 1 7 2 7 2 1 7 2 2 Decisions Data Repor cir es A ee ee EO Ne Vu EE RdKE QE 82 Financial Report and Balance Sheet US GAAP ccccccececeeeeeeeeeeeeeeeeeeeees 84 Data Transfer Data Exchange with the Participants Systems 86 siis KG NOUN MEMO Amerunld eae aia A madnan aca wand E ENA 87 VET VIC EE n ppc E E E EE 88 Definition of the Data Transfer Settings in the Instructor s System 89 Initializatio
22. securities Purchase of environmental plants Taxes from income Pay out of dividends previous period Extraordinary expenses Net earnings net loss for period Depreciation of fixed assets Increase of pension fund Changes in current assets Increase Decrease of raw material Increase Decrease of finished products Increase Decrease of receivables NET CASH PROVIDED USED BY OPERATING ACTIVITIES Investments in fixed assets NET CASH USED IN INVESTING ACTIVITIES Increase of subscribed capital Prior periods dividend paid Increase Decrease of securities Increase Decrease of bank loans NET CASH PROVIDED USED BY FINANCING ACTIVITIES NET INCREASE DECREASE OF CASH A B C TOPSIM General Management ll Instructor s Manual Explanatory Notes Page 84 5 3 Analyses Under the menu item Reports TOPSIM General Management Il 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 Instructor s 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 ANALYSES Value of Campany riUSD Corpora
23. see the section of the manual called Introduction and Installation Before entering the file paths the participants systems should be installed because the instructors system checks whether the participant s systems are present EA Definition of File Paths E Bl x Please enter file paths to the participants data The number of characters for a file path may not exceed 60 Double click in the file path field to open the dialog box Company 1 EATOPSIMNGMTLNBD1 E Company 2 EATOPSIMYGMTLNSO2 E X Quit Company 3 E TOPSIM GMTLN803 E Company 4 EATOPSIMXGMTLNBD4A 2 Help Company 5 EATOPSIMYGMTLNBOS TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 86 6 1 Read teams decision After the participants have saved their decisions on disk or data on the network from their computers Write results onto This occurs after a new period has been simulated In addition teams systems to overwriting the report data the instructors data is also overwritten because this data is required for the participants Planning Models for the coming period The last period simulated is acknowledged by the system and based on this the Participants System recognizes for which period the next decision planning data is being entered Initialize teams participants systems The disk version of TOPSIM General Management II asks for the number of the team for each disk and
24. staff attrition rate as well as on staff absenteeism in the individual cost centers 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 Product development See the explanatory notes in the instructor s report TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 57 5 2 5 Purchasing 1 09 9 20 2 50 Sales R amp D 0 d i Ll Total 18 48 7 1934 53 7 79 s u TOTAL COSTS 194 07 57 49 129 97 Direct costs Personnel Costs Wages Salaries Explanatory notes on staff costs direct costs i in n cost type accounting The total from the direct costs of the cost centers Production and Administration is stated Cost Type Cost Center Accounting No 5 COST TYPE COST CENTER ACCOUNTING COST TYPE ACCOUNTING mEUR Direct costs costs Total Over COST TYPES costs head Product 1 Product NE MATERIAL COSTS Input materials parts 24 96 24 96 Factory materials 2 97 Zu PERSONNEL COSTS Wages and Salaries 1 54 16 Turnover Training Non salary staff costs slg Pension reserve i i 3 25 DEPRECIATION Buildings Production lines Environmental technol i
25. the company arises if the company has insufficient capacity to supply its customers 80 of the company s 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 The level of customer satisfaction is stated per product satisfaction and market The higher the number stated the happier the customers CI Image Expenditure for CI Expenses for Cl in mEUR Functional factor CI Current value for the impact of the factor Corporate image Index Current value for the company s image Bulk buyers In the example there is no demand from bulk buyers in Period 5 Sales Units Sales to bulk buyers in units Revenue mCU Revenue in mEUR to bulk buyers Tender 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 ll Instructor s Manual Explanatory Notes Page 39 5 1 2 Instructor s Report Il TNSTRUCTOR S REECRT IT R amp D SAL
26. 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 computer s control panel Recommendation for setting e Portrait e Raster graphics B W graphics or any suitable setting that requires the least storage space in the printer maximum 300 dpi e n 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 e Version A A six period version in which the degree of difficulty complexity progresses rapidly e Version B An eight period version in which the degree of difficulty complexity progresses slowly e 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 l 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
27. the product 1 black and white photocopiers The following information is available on the development of demand for black and white photocopiers vo E isl Print X Cancel Help Scenario The texts that appear here is available to the participants via a window in the participants 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 CENEO Ini x Period 5 E Financing Other Company Comparison Corrections Current Scenario Hints afl Hints for company ak vw dj mmm oomen em 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 Il Instructor s Manual Explanatory Notes Page 18 3 2 3 3 2 3 1 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 Participants 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 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 deac
28. values entered appears in the column called Cash total When you repeat the simulation for the period the Cash amount on the balance sheet as well as the Extraordinary income and Share capital values in the financial reports are altered to reflect the changes that you entered You can by this means simulate capital increases and decreases Share Price EUR Share You can override the share price calculated by the model TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 17 3 2 2 7 Current Scenario EN Data for the Periods E B x Period 1 Financing Other Company Comparison Corrections Current Scenario Hints 4 Hl After last year s economic slump the experts are predicting an economic recovery in the in the present year It is assumed that in real terms the gross national product will increase hy 2 in real terms investments will increase by 2 the cost of living will stagnate and wages and salaries will increase by Nevertheless the willingness to invest on the part of companies is still not completely satisfactory However neither the Federal bank nor the state is expected to take economic measures At the most recent meetings of OPEC the oil producing states failed to fix output and prices compulsorily Therefore in the coming year a fall in prices on the crude oil market is expected which will reduce the costs of factory materials to 46 Euro for
29. version has been preset to begin once you open the program after installation TOPSIM General Management Il 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 e You can save your own data about the economy management game runs or other similar items as game versions e f a game is obtained from the diskette of another computer it can also be saved as a game version e 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 Additional Scenario 4 a four period version for shorter seminars Version F Additional Scenario 6 a six period version in which the degree of difficulty complexity progresses rapidly Version G Additional Scenario 8 an eight period version in which the degree of difficulty complexity progresses slowly Version H Additional Scenario Standard Module a simplified eight perio
30. 0 45 6 Shareholder earnings 292 8 308 9 232 9 90 3 9 aller TOPSIM General Management II Instructor s Manual Explanatory Notes Page 46 5 1 6 Instructor s Report VI INSTRUCTOR S REPORT VI VALUE ORIENTED RATIOS Company 1 Company 1 Company 2 Company 2 Company 3 Company 3 Company 4 Company 4 Company 5 Company 5 VALUES P amp L STATEMENT ESESESESESESESESESE3 Costs of Goods Sold Sales Costs R amp D Costs Administration Costs Other expenses incare Tou Net investment income 3 8 2 9 DRI 4 1 27 2 16 1 Extraordinary incae a 2 0 0 0 0 0 0 0 0 o 5 0 5 0 0 0 0 Inca tax 1 9 10 0 0 0 6 3 0 0 0 0 0 0 0 0 0 0 NET NT NOE N o BEES 7 E EE EE 8 8 8 24 24 3 18 2 2 a B 30 0 0 ee HE 2 EE 2 J EE S En 4 E RE 5 T foe E 5 t Pension reserve 4 2 3 7 4 5 3 8 3 E 3 7 2 8 2 5 2 8 fo OPERATING INCOME 229 gsx 21 3 360s 24 5 Le A6 16 3 713 9 Incame taxes 12 6 21 2 11 7 1 9 13 4 0 0 0 0 0 0 0 0 0 0 NET OPFEFR INCOME NOI 10 3 17 3 9 6 1 6 10 9 7 1 16 3 14 6 16 3 13 9 Company 1 Company 1 Company 2 Company 2 Company 3 Company 3 Company 4 Company 4 Company 5 Company 5 NET ASSETS NA E3E3ESESESE3E3E3ESES Land and buildings 6 0 6 3 6 0 6 3 6 0 9 2 6 0 6 3 6 0 e enn and equipment 42 PT 48 8 51 8 57 4 38 4 41 4 ee 6 E 3 Hs 6 Ur 3 Input 2 e Finished goods Accounts receivable Securities
31. 00 BULK BUYER units price EUR unit WAGES amp SALARIES TEUR purchase administration production R amp D sales PRODUCTION Product 1 old Product 1 new Units material parts per product Capacity per product Production capacity person Factory material Units Units EUR unit PURCHASE OF INPUT MATERIALS PARTS Product 1 old Product 1 new 37 37 53 53 49 49 INTERESTS securities Med term loan 1 Med term loan 2 Med term loan 3 Long term loans Overdraft loans Product 1 Product 1 Product 2 Product 2 PRODUCTION LINES Procurement value 20 0 Remaining life 10 Capacity 14000 Market 1 Market Market Market EUR unit EUR unit EUR unit EUR unit lype A TOPSIM General Management II Instructor s Manual 25 0 30 0 10 T5 18000 22000 Type C Explanatory Notes Page 80 Nr 17b DESCRIPTION OF THE SCENARIO COMMUNICATION Page 1 After last year s economic slump the experts are predicting an economic recovery in the in the present year It is assumed that in real terms the gross national product will increase by 2 in real terms investments will increase by 2 the cost of living will stagnate and wages and salaries will increase by 7 Nevertheless the willingness to invest on the part of companies is still not completely satisfactory However neither the Federal bank nor the state is expected to take economic measures At the most recent meet
32. 100 0 M 11000 100 0 103 95 100 0 22082 100 0 ERODUCT 2 MARKET 2 Teel ose fino ra ef ooo eo an CUSTCMER SATISFACTION SATISFACTION Product 1 Market 1 Product 1 Market 2 Product 2 Market 1 Product 2 Market 2 G M o Company 4 company 5 IL ME for CI Functional factor a Sales y Co 1 5000 Co 2 7000 Co 3 7000 s Revenue mEUR Co 1 13 50 Co 2 18 90 Co 3 18 90 TENER Prod 1 for tender bid Campany 1 Price EUR 1999 Sales Units 9000 Revenue mEUR Market Results Column Old New 0 Existing product Product 1 Rel N Newly developed version of Product 1 that was launched onto the market R Relaunch of the existing Product 1 TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 38 Company QOIS Average or total amount depending on which value is more informative Advertising mEUR Expenses in mEUR yi Share of advertising expenses as of the industry Func F Functional factor Impact of factor 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 Sales Units Actual sales in units Market share related to sales Revenue MEUR Revenue in mEUR Market share related to sales revenue Potential sales Units Potential sales based on the marketing instruments used Market share related to the potential sales A gap between the potential and actual sales of
33. 7 units 5000 7000 7000 C 2 0 3 0 N uw onjo Product 1 old Technology No of pers Ecology MEUR rp N OUI OO Value Analysis 0 Product 1 new Technology No of pers 0 30 20 Ecology 0 00 0 00 0 00 Value Analysis 0 00 1 00 0 50 Product 2 new Technology No of pers 91 50 70 Ecology 0 50 3 00 3 00 Value Analysis 0 50 1 00 0 00 Y N Y N Raw materials parts Product 1 Units 70000 71000 Product 2 Units 1950 0 Product 2 Units 1500 2500 Units 61510 74262 Units 2000 0 Production lines Investment No new l 0 Type A Disinvestment No Maintenance MEUR Rationalization mEUR oO ce c Z Z Z Z 71000 30000 30000 5000 73762 Subcontracting Product 1 40000 40000 Product 2 Production volume OF OOOO K OY Ooo C CO MED Cc c OO Production lines Investment No new 1 Type B Disinvestment No Maintenance MEUR Rationalization mEUR Ce coc Production lines Investment No new 1 Type C Disinvestment No Maintenance MEUR Rationalization mEUR OO Or OO Cc Ce coc aD O UI oO oO amp m OO OOO oO OO Or A OO Cc OO Co O UI D Cc oO a n OO OOO ia OO OO C CO oO OO Oo OO c O Wwe OO W OY OOO Process optimising projects Training Investment in enviro plants mEUR Production personnel Hired Dismissed 3 9 Non salary staff costs 4 3 Medium term loans Long term loans Dividends Purchase of s
34. 92 58 98 x 2020 x 40 24 812 85 x 2020 x 27 01 545 60 x 2020 00 x Addition from production Period 0 40000 Values from EUR Unit Unit of outp Direct Material DM 577 00 x accounting Indirect Material IM 39 00 x cf next page Direct Costs DPC 945 00 x Production Overhead PO 491 00 x 2052 00 Inventory value Interim inventory Period 0 mEUR mEUR DM 4 82 23 08 27 90 IM 0 47 1 56 2 03 DPC 6 50 37 80 44 30 PO 4 36 19 64 24 00 98 24 Sales Quantity distributed 430000 units Units 8000 8000 8000 8000 8000 Units 40000 40000 40000 40000 Units 48000 48000 48000 48000 48000 Example DM for Contribution Costing 43000 x 581 26 EUR 24 99 mEUR DM Direct Material IM Indirect Material DPC Direct Production Costs PO Production Overheads CGM Cost of Goods Manufactured TOPSIM General Management II Instructor s Manual Explanatory Notes mEUR 4 82 0 47 6 50 34 36 16 16 mEUR 23 08 1 56 37 80 19 64 82 08 EUR Unit 581 26 42 33 922 97 000 10 2046 67 Page 62 Explanatory notes on the calculation of Contribution Margins using the example Period 0 Company 1 Data for contribution costing Period 0 6 COST ACCOUNTING Unit of output costing COST ACCOUNTING Costs in mEUR M Input material costs 21 09 Factory material costs 2 00 Direct material costs Indirect material costs Total material costs Direct produ
35. AL OWNERS EQUITY Share capital Capital reserves Retained Earnings Loss carried forward Net income for period PENSION RESERVE DUE TO BANKS Long term loans gt 5 periods Short term loans lt 1 period Overdraft loans BALANCE SHEET TOTAL COMPANY RATIOS RATIOS Return on sales Return on equity Dividends paid mEUR EUR Share mEUR Share price Value of company Corporate image Rating Customer satisfaction Shareholder earnings Shareholder earnings TOPSIM General Management II Instructor s Manual Index Index Index m 145 7 Tog t1549 45 0 A DaO 292 8 308 9 23249 OWS FR acu The report is identical to Instructor s Report V see point 5 1 5 19 18 18 44 2021 0 00 0 00 0 00 104355 Quo 6 28 T3599 112 58 131 66 Tis Cost of Goods Sold Sales costs R amp D costs EE 32 8 A a cas 181 7 Os oe C m P 0 178 8 180 3 151 0 Da 104 5 10 5 3 105 0 x 122 105 106 114 i Explanatory Notes Page 76 5 2 15 Socio Economic Statement for the Entire Industry No 15 CORPORATE SOCIO ECONOMIC STATEMENT AND REAL NET OUTPUT SOCIO ECONOMIC STATEMENT FOR THE ENTIRE INDUSTRY Dismissed Final workforce Change Personnel competence 0 Productivity O Wages and Salaries l 3 s SS Non salary staff costs l i 1295 Non salary staff costs 39 Misc personnel costs l 28 TOTAL TOWARDS EMPLOYEES mEUR 674 99 696 98 670 62 eneee O O Owners
36. 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
37. ES PRODUCTION VALUE VASE ANALYSIS Functional factor Number of people Functional factor Production lines Env ind Envir Damage Env Tax Avail Utilization Type A Type B Type C of line expenm reduct indica n per capac Lines Staff 0 2 0 3 0 2 0 0 0 0 M dut index 2 Total bn P Capacity per person Product 1 Product 2 Product 2 Product 1 Product 1 Product 2 406792 437195 401487 280000 0 219788 0 TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 40 Product Development Technology Period No of people who are employed in the current mEUR period in R amp D Salary Cumul Cumulative expenditure in mEUR up to and including the current period Index Appraisal of the product s 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 Ecology Period Participants decision for the period mEUR Cumul Cumulative expenditure in mEUR including the current period Index See technology index Value analysis 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 No of sales staff in the respective market M1 M2 F
38. Manual Explanatory Notes Page 6 3 1 Edit 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 EE ial xl Company 15 Period jf Sales Product Development purchasing Production Financing Planned Figures Product 1 Product 2 Market 1 Market 2 Market 1 Market 2 Price EURYUnith 2650 1950 FCU 9600 D FCU Advertising mEUHR 5 00 1 00 mEUR 3 00 0 00 MEUR Sales No of People 125 15 Corporate Identity mELR 2 00 Iv Market Research Report Product De
39. Manual Explanatory Notes Page 60 5 2 7 Contribution Margins No 7 CONTRIBUTION MARGINS PRODUCT 1 FROME 2 aor MARGINS posi ae foe ofa fee Seats 174 60 18 90 P 13 76 207 27 22 50 E 22 50 229 77 Direct mterial costs 27 93 14 38 14 38 42 31 Direct prod costs Ja 26 71 01 0 00 0 00 71 01 Transport costs 5 17 0 64 5 81 Material FC Production FC Sales EC ee ee oe ss pus se s Fes eee aw e Me tm e nx ue sm ee Se epe company PRODUCT 1 PRODUCT 2 CONTRIBUTION MARGINS mE BET OE Lom zoo 2832 279 900 Direct material costs 376 376 376 376 e ie Direct prod costs a 1037 e Transport costs 165 p CONTRIBUTION MARGIN T MARGIN I E uer 158 axe 2e 2995 Material FC 44 44 44 44 0 Production FC 391 PE 391 391 0 Sales FC product 112 514 128 3 0 m Adin FC DE 113 i 113 113 789 0 789 uaa ata aa 2 om er anal ea fe e om The Contribution Margins in mEUR divided by the volume sold are the basis for the contribution margins per unit TOPSIM General Management Il 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 Unit EUR u CGM Start Per 0 2020 x 29 83 602 57 x 2020 x 2
40. 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 NODNRFRFDNNF HBmB NORPNRFNFDNE VOUS SS CS 0 Total Balance Total Balance Share Price Value of Company Corporate Image Index Production Staff Training Training Process Optimization Process Optimization Productivity Index RONA EVA EVA CFROI TOPSIM General Management II Instructor s Manual Explanatory Notes Absenteeism Expenditure Period Quality Index Expenditure Period NOI NA NOI NA Period Prev Per CF NA EUR sh mEUR Index mEUR Index mEUR Index Index mEUR mEUR Page 29 DTCF CF 5 NA DDTCF DTCF Period Prev per MVA Product Product 1 Technology 1 Ecology Product 1 Value Analysis Product 1 Technology Product 1 Ecology Product 1 Value Analysis Product 2 Technology Product 2 Ecology Product 2 Value Analysis Customer Satisfaction Product 1 Market 1 Customer Satisfaction Product 1 Market 2 Customer Satisfaction Product 2 Market 1 Customer Satisfaction Product 2 Market 2 Motivation Rating WACC Rework 3 3 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 TOP
41. RATIONS 18 44 44 NET 33 5609 6 6 Extraordinary income Extraordinary expenses EXTRAORDINARY PROFTT LOSS NECI ee Profit Loss for period loss carried forward from previous period Transfer into revenue reserves Balance sheet profit Dividends Bal sh loss Distributive amount Dividends FIXED ASSETS Property Plant and Equipm podio capital Land and Buildings Capital reserves Machinery and Equipment Revenue reserves Loss carried forward Profit Loss for period CURRENT ASSETS PENSION RESERVES Inventories Material Finished goods LIABILITIES Accounts receivable Long term loans 5 periods Securities Short tem loans lt 1 period Cash f Overdraft loan TOPSIM General Management ll Instructor s Manual Explanatory Notes Page 83 5 2 20 Financial Report and Balance Sheet US GAAP 9 FINANCIAL REPORT AND CASH FLOW STATEMENT US GAAP CURRENT PLANNING FOR THE FINANCIAL REPORT in mEUR PERIOD NEXT PERIOD CASH IN Cash in from sales current period Cash in from sales previous period Securities Yield on securities Extraordinary income Share capital incr Disinvestment of production lines Medium and long term loans Overdraft loan TOTAL CASH IN CASH OUT Purchase input mat parts fact mat Subcontracting Personnel costs Pension reserves Other expenses Pay back medium term amp overdraft loans Interest paid on loans Purchase of production lines Purchase of
42. Result Your net income loss is 8 48 million EUR Your return on sales is 3 7 The average ROS in the industry is 7 4 Your EVA amounts to 9 9 million EUR 4 Finance The total of your loans is 16 19 million EUR including 16 19 million EUR in overdraft loans Your net investment income is 2 88 million EUR Your share price is 360 6 5 Hints and Remarks None TOPSIM General Management Il Instructor s Manual Explanatory Notes Net Income 1C1 C2 1C3 C4 1 C5 Share Price C1 1C2 c3 c4 c5 Page 49 5 2 2 Market Results and Value of Inventory No 2 MARKET RESULTS and VALUE OF INVENTORY MARKET RESULTS Exchange Rate for Market 2 MARKET 1 Price pere 2884 Sales phe 247532 Revenue 713 92 Market Share 25 21 100 00 2219 100 00 Cust Ru 107 103 112 100 ice EUR Unit mo Units Sales MEUR A 18 90 MARKET 2 Price FCU Unit ue Sales pire Revenue Du a D o 13 76 Market Share 22 32 100 00 0 00 100 00 Cust A 85 79 111 107 TOTAL Sales m 74262 288304 2500 11000 Revenue 207 27 831 50 22 50 103 95 229 77 REQUEST FOR BIDS Bid awarded to Company 1 Price EUR 1999 EN PARTS us EUR Un SEL ARE EUR Un Quantity fram supplier 71000 350 24 85 24 85 EX pror used in production 71259 350 24 96 24 96 Final Final inventory 24909 VALUE OF INVENICRY PRODUCT 1 PRODUCT 2 o TOTAL Quantity Quantity Inventory Initial inventory Qua
43. SIM General Management ll Instructor s Manual Explanatory Notes Page 30 4 1 4 2 4 3 Simulation Simulate Next x Period The Simulation menu allows you to simulate the next period 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 O in order to re extrapolate 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 O 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 re simulate 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 Planning Models 1 2 and 3 Call up Exit Code Word If the participants are not working with the participants software Ei x they can work with the Planning Models on the instructors computer t is the instructors responsibili
44. T Prod 1 Market 1 Prod 1 Market 2 Prod 2 Market 1 Prod 2 Market 2 Bulk buy Prod 1 Tender Prod 1 CM III EUR un Prod 1 Market 1 Prod 1 Market 2 Prod 2 Market 1 Prod 2 Market Bulk buy prod Tender prod Hired Dism Production Purchasing Administration R amp D Land and build Machinery amp equ 132 6 Input Material 140 3 Finished goods 16 3 Accounts receiv 27 2 Securities masas DED ce pe pep epe Extraord result P amp L before tax P amp Lafter tax OGM EUR Un P 1844 Se Tue CGM EUR Un P 6694 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 TOPSIM General Management H W CO DOOHRMOKNG Long tem loans 2563 2560 Short term loans OVERDRAFT DP GUMUL PL 2434 3477 3509 Total liabil 131 ala COP E dun s Ko ex ex Pi UL d OI oS OO O QOO 0 rU o OACSDABNG c O Ob U O0 Uo 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 t
45. XI XI XI SI SI o XI SI SI TSI SI I SI SI XI XI XI XI XI SI XI XI XI w ISI SI T I SI SI SI SI XI XI XI XI XI XI SI SI SI XI SI I 1190000000000 KI 1 1 en XI XI I I I I XI XI XI XI XI XI XI I SI SI SI o X I I I I I I 1 I I I I 1 1 1 1 1 1 o4 XI XI I I I I XI XI XI XI XI XI XI I I XI X eo Here you can select from which period onwards the various reports will be available E g Contribution Costing 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 Market Research Report 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 Please click on the checkbox US GAAP if you wish to allow the participants to see their reports in US GAAP version Planning Models ini xj Please select from which period onwards the features of the simulation are active Products Markets Reports Planning Models Bankruptcy Ratios Decisions Languages Flease select from which period onwards the planning models are active 1 2 3 4 5 Planning Model 1 Planning Model 2 Planning Model 3 Planned Figures I mw Cam Cal iv Isi Print X Cancel Help D J oo Pla
46. a ee a ee 30 SImuldttol aa a a a cup al A E teed claus 31 simulate Next xX Period inscrire a eee ee ec decia E MEUM 31 Simulate Previous Period 52 I eese ee ee es HUNE s ec 31 Planning Models 1 2 and 3 Call up Exit Code Word 31 Panning Model eer DMHNUN 32 Planning WIOC GU praece o a pP 33 giiziaieiiniemiurerer o e TS 35 ReDOLIS usc iuntuatac us ema da DUPR Ead Oc awake OL VpE SPICE Coane SU RU UENDEE TL DEUS eT 37 Instructors REPOS sudden on pueden apa nnn ee ta xus ales d ees Abvigdeea axes dia aun 37 instructors REDOC tinatu a aeea ESE aE Ea pRa iind aduer e d atn a 38 InsIructors Repon I cire aan a itracu eem sm ais sid d 40 Instructor s Report Ila toitupieid a d dcos tege eene edulituP Didonis eren sena 43 Instructors RepoEt V adoentonuceutox adu deu aes caduti u a caiga oe tote onu RE as 45 HS UC LOR S REDOV Mr e PEE NR LEE 46 HiS PUCO doi od MEET 47 F ardciparnts INCDOl Sc i diei a a oe IUe 48 Executive SUMMAly uses ede sa tee eite dela we eee ee ee eM Ced eds 48 Market Results and Value of Inventory sssssssssssseeee mns 50 Production Lines Environmental Technology esesesseeeeeeeeeee 53 Human Resources and Product Development cccccecee cece ee eeeeeeeeeeeeaeaes 57 Cost Type Cost Center Accounting ote eee ees ee 58 Cost Accounting Unit of Output Costing cece cece cece ee eeeeeeeeeeeeeenenenenes 60 GOM ibUTION Margins
47. 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 Analyses of the Situation 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 Participants System the industry analysis function is available for them only if you authorized the Market Research report see Activation of Features Reports Of course the participant must also have chosen to buy the market research report Analyses of the Sector On the left hand side of the window you can select e The company e The product and market you should be able to select at least one product and market e The values to be shown on the X and Y axis e The variables to be displayed sales volume or sales revenue e The period for which the data displayed is applicable Industry Portfolio Analysis 418 x Company fell Company 1 he Soles Company 7 fe Company 3 rj Compa
48. an Interest Rate 96 WACC Uf 0 Rating i Adjustment of Inventories for Finished Goods Extraordinary Income Extraordinary Expense Severance Packages Change Prod Staff Change Sales Staff Enviro Penalty mEUR Loan Interest Rate WACC If gt 0 Rating Adjustment of Inventories for Finished Goods TOPSIM General Management II Instructor s Manual Explanatory Notes Product 1 Product 2 i nt Price EUR Unit Price EUR 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 q
49. and cash Teee fo a 818 Xo MS 39 9 8 3 ae 20 13 S sj 1 Net Operating Inc NO 2 Cash flow CF 3 Net Assets NA 4 ROA NOI NA 5 EVA NOI 1 NA 6 EVA Per Prev per CE NA 8 DICF CF 3 NA DICE Per Prev p W O1 CO OYO OYC0 F2 Co CO uuw A O He XO IS BODE to Not CO CO OY I2 0140 31000Yy 2 iso COW CO HS GW OV OY OD CO K OVO WFR CO 100 C CO 13 CASH FIOW Statem int l mEUR ad 4 RON Return on Net Assets ad 5 EVA Economic Value Added ad 7 CFROI Cash flow Return on Investment ad 8 DICF Difference Total Cash flow ad 9 DDICF Delta Difference Total Cash flow ad 10 MA Market Value Added Value of campany minus Equity TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 47 5 2 5 2 1 Participants Reports The participants reports for Period O are illustrated in the user s manual However individual reports that are not required for Period 0 are not shown in the user s 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 participants 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 Executive Summary The E
50. ase be aware that introduction of Product 2 also depends on the data for the period and whether market volume already exists there If the market volume is set to 0 in the Data for the Periods window then activating this function has no effect even if a checkmark has been entered in the correct check box in the Activation of Features window TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 19 3 2 3 2 3 2 3 3 Reports loxi Please select from which period onwards the features of the simulation are active mA Products Markets Reports Planning Models Bankruptcy Ratios Decisions Languages l US GAAP Periods 1 Executive Summary 2 Market Results Inventory Values 3 Product Lines Environmental Techn 4 Human Resources Product Devel 5 Cost Type Cost Center Accounting B Cost Accounting Unit of Outp Cost 7 Contribution Margins 8 Profit amp Loss Statement Cash Flow 9 Financial Report and Balance Sheet 10 Overall Company Results 11 Out of Line Situations 12 Market Research Report I 13 Market Research Report II 14 Business Report on the Industry 15 Corporate Socio Economic Statement 16 Value Oriented Ratios 17 Scenario 18 Decisions tsi Print X Cancel Help see also section 7 2 ISI SI T I SI SI SI ISI SI 1XI SISISISISI e XI XI XI 1XI XI XI XI XI XI XI XI XI SI XI XI XI S ISI SI TI SI SI SI XI XI XI XI XI
51. cology mEUR Value Analysis mEUR Product 2 new Technology No of ppl Ecology mEUR Value Analysis mEUR RELAUNCH Y N NEW LAUNCH Y N PURCHASING Raw materials parts Product 1 dues ix Product 2 un Subcontracting Product 2 2500 PRODUCTION Production volume Product 1 uni c Product 2 v Production lines Investment Type A Disinvestment Maintenance 0 0 Rationalization 0 0 Production lines Investment Type B Disinvestment Maintenance 0 0 Rationalization 0 0 Production lines Investment Type C Disinvestment Maintenance 0 8 Rationalization 0 0 Process optimising projects 1 9 Training Sul Investment in environmental plants 0 0 Production personnel Recr Dism 196 Non salary staff costs 3 39 FINANCING Medium term loans Long term loans Dividends Purchase of securities PLANNED FIGURES Revenues Product 1 Market 1 Revenues Product 1 Market 2 Revenues Product 2 Market 1 Revenues Product 2 Market 2 Return on Equity Cash flow TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 82 5 2 19 Profit and Loss Statement Balance Sheet US GAAP No 8 PROFIT AND LOSS STATEMENT BALANCE SHEET US GAAP PROFIT and LOSS STATEMENT Total Cost Accounting mEUR Cha Cost of products sold Sales costs R amp D costs Administration costs Other expenses income Yield fram securities 0 00 Interest and similar expenses 25 58 RESULT FROM REGULAR BUSINESS OPE
52. ction costs 1 Production overhead Cost center Production Total production costs COST OF GOODS MANUFACTURED CGM aL R amp D irect costs verhead Sales Distribution irect cos verhead Admin irect costs Overhead Cost center Admin COST ACCOUNTING Costs in EUR unit ERN Material costs 527 Factory material costs 50 Direct material costs Indirect material costs Ecology Value Analysis Cost center R amp D Ads Transport Cost center Sales d4 CS 2 Material costs Production direct costs 1 Production overheads cost center Production Total Production costs a q4 R amp D Direct costs Overhead Cost center R amp D Sales Distribution Direct costs Ads Transport O D Ecology Value Analysis verhead ter Sales d4 Administration irect costs Overhead COST OF PRODUCTION 1 Wages or salaries non salary staff costs pension reserve rework 2 Wages or salaries admin FC admin non salary staff costs pension reserv d4 q4 ost center Admin 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 No 7 CONTRIBUTION MARGINS PRODUCT 1 CONTRIBUTION MARGINS Direct material costs 25 00 25 00
53. d 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 menu s 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 Il Instructor s Manual Explanatory Notes Page 3 Saving the position of the current game as a game version FATOPSIM General Management Il Instructo File Edit Simulation Reports Data Transfer J Save Simulation in Progress Save Simulation in Progress onto Hard Disk This function saves the position of a game in Position of current game 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 a
54. e 28 and the minimum 8 or 10 These extremity values cannot be changed Exit Cl All data for the current game decisions instructor s data results is saved when you exit the program TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 101
55. e 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 AB and C are standard game versions Via D and E you may prepare game versions of your Own Mame of the seminar max 10 char J Number of teams 2 5 Ed Date day month year 3 1959 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 Exception You select one of your own game versions but at the same time change the number of groups You must simulate Period O in order to ensure that the data will be consistent This procedure also resets the counter of the Planning Model to O 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 O 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 O Game Version You must select among game versions A to E The program at first assumes that you will select the same game version as played las
56. e 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 Production Lines 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 EN Starting Situation E E Bl x Data for the Starting Situation Before Period 0 Resources Balance Sheet Companies Names Assets Equity and Liabilities Owners Equity 28 00 Fixed Assets 33 00 Share Capital 15 00 Property Plant and Equip Capital reserves Machinery amp Equipment 25 00 Loss Carried Forward 0 00 Met Income 3 00 Current Assets 47 00 ada E Pension Reserve 12 0n Input Materials Parts un Liabilities Finished Goods 40 00 Debt Owed to Bank Accounts Receivable n Long Term Loans 95 Periods 0 00 Securities Short Term Loans 1 to 5 Per 40 00 Cash Overdraft Loans 0 00 isl Print X
57. e the system After selecting the option Initialize participant system the following message appears before writing the data O x 9 D ata transfer Please make sure that the file path F XUH for company 1 is available 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 ll 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 Participant s System After opening the participant system the following dialog box appears EN You have the following options PF Bi x 1 Study a demo version Todo so select Demo and confirm Data Versions J Access the starting situation C Demo Todo sa select Initiation and confirm 3 Play the business simulation in Normal Made Inserttor a transferdisk with the data save onto it i Initiation and click an eMormal Made 4 Terminate the program by clicking cancel LJ Normal Mode X Cancel TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 91 Please click on the Norma
58. ecurities H NO OUI O1 OOO NO OUI e Ole e OOOO OOOO 0 0 130 0 130 0 NO DLT E P ptt Ce coc OO OF OOOO IO OOO C CO e Cc C Cc Cc Cc c Market 1 Market 2 Market 1 Market 2 Revenues Product 1 Revenues Product 1 Revenues Product 2 Revenues Product 2 Return on Equity Cash flow LENNO No O01O0 mo CC 0YO0 d J WANUNA H Page 45 5 1 5 Instructor s Report V INSTRUCTOR S REPORT V BUSINESS REPORTS PROFIT AND LOSS STATEMENT Cost of Goods Sold Sales costs R amp D costs Administration costs Other expenses income Income reg business operations 19318 18 44 20 21 Extraordinary income 0 00 0 00 0 00 Income Taxes 10755 9 96 6 28 FIXED ASSETS Land and Buildings Machinery and Equipment CURRENT ASSETS Raw Materials Finished goods Accounts receivable Securities Cash BALANCE SHEET TOTAL OWNERS EQUITY Share capital Capital reserves Retained Earnings Loss carried forward Net income for period PENSION RESERVE DUE TO BANKS Long term loans gt 5 periods Short term loans lt 1 period Overdraft loans BALANCE SHEET TOTAL aan Return on sales LIS 32 8 Return on equity 479 9 Sls Dividends paid mEUR 0 0 Share price EUR Share e mn it S 0 0 Value of company mEUR 178 8 180 3 151 0 0 0 Corporate image Index 104 5 105 7 105 0 Rating Index p 122 105 Customer satisfaction Index 106 114 Shareholder earnings 145 7 t537 115 9 45
59. ed and the file path can be newly entered 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 participant s 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 Il Instructor s Manual Explanatory Notes Page 97 re Analyses The Analyses menu offers you the following functions e Generating interfaces for graphics programs especially UNICON EXCEL Analyses Show e Displaying results on the screen in chart of graph format e 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 import to a presentation graphics programs such as EXCEL according to the selection in Instructor s Data Define Analyses Variables While the file is being generated the program shows which file is
60. f the bars Result of the period Line Evolution of the added result Running Planning Model 3 is free of charge TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 36 5 1 Reports 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 Il Instructor s Manual Explanatory Notes Page 37 5 1 4 Instructor s Report I INSTRUCTOR S REPORT I MARKET RESULTS menus ome T cmmes Dumas ud Bde LC EIENCOETINNEGSENEIEN m 2295 ES 100 0 Ky 21772 100 0 66 28 100 0 62710 100 0 PRODUCT 2 MARKET 1 dS 9450 ae
61. f 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 e Tocover a loss carried forward from the previous year e For retained earnings and e To distribute dividends The amount of retained earnings is calculated as follows e First the net income offsets a possible loss carried over from the previous year e The planned dividends for the period and possible dividend claims from the previous period are deducted from the remainder
62. g Financing Other Company Comparison Corrections Cu H Depreciation of Buildings 95 Misc Fixed Costs mEUR Maintenance Costs mEUR storage Costs per ths Un mEUR Extraord Costs Sales mEUR Overtime MRR Planning Models mELIR Inflation Index Exchange Rate Market 2 Added Capacity Due to Overtime Fixed Costs for Administration Dividends Min af Met income Enviro Rating Reduction Machine Depreciation of Buildings Misc Fixed Costs mEUR Maintenance Costs mEUR Storage Costs per ths Un mEUR Extraord Costs Sales mEUR Overtime 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 Purchas Admin Production F amp O Sales Bl x Perind 5 bud 5 0 15 0 70 0 5 5 0 0 0 0 0 6 0 0 0 0 0 1 0 0 1 Min Prad Line Inp Mat Parts Finished Prod 0 05 0 10 Product Product 2 0 0 0 0 Step Fixed Penalty 5 0 0 0 0 Market Research Planning Models I Il 0 10 0 05 Index EUR FCLI o mELIR 96 Pnints 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 e Administration mEUR
63. he period Recruitment or dismissal of production staff No of persons who have left the company of their own accord during the period Il Instructor s Manual Explanatory Notes Page 43 Non salary staff co 7c Amount of staff costs as 96 of payroll Staff Purchase etc Staff inventory of the individual areas at the end of the period CGM EUR Unit Cost of goods manufactured in EUR Unit COP EUR Unit Cost of Production EUR Unit The remaining values of Instructor s Report Ill are excerpts from the participants reports and are explained there TOPSIM General Management II Instructor s Manual Explanatory Notes Page 44 5 1 4 Instructor s Report IV Instructor s Report IV provides the instructor with a clear overview of the participating groups decisions The report is extended automatically depending on which decisions were activated by the instructor using the Activation of Features checkboxes Extract INSTRUCIOR S REPORT IV Decision Data DECISIONS ADVERTISING MARKET RESEARCH REPORT BULK BUYERS BID PRICE FOR TENDER 1999 2200 EXPENDITURE FOR CORPORATE IDENTITY 2a PRODUCT DEVELPM RELAUNCH NEW LAUNCH PURCHASING PRODUCTION TOPSIM General Management II Instructor s Manual Explanatory Notes 3000 3000 100 100 EUR Unit FCU Unit EUR Unit FCU Unit MONMFR FR MYNMR ER T35 15 Market 1 No of people TI2 120 Market 2 No of people 20 3
64. he sales revenue whereas for Product 1 and Product 2 different tables are relevant cf Users manual point 3 5 3 2 for Product 1 and TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 58 EPOD Product Product 2 Direct mee Staff required T 3002 Staff required 520 Production _ 883 74thEUR person J 1153 34 thEUR Direct costs 219 32 thEUR 7 01 81 32thEUR 2 59 Admin j Fixedcosts 2 50 451 NEIN Total 34 53 7 79 Personnel Costs 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 Misc fixed costs 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 Maintenance Not only for the production lines decision but also for Administration see period data Rework Dependent on non salary staff costs technology and val
65. 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 ll Instructor s Manual Explanatory Notes Page 68 5 2 10 Overall Company Results No 10 OVERALL COMPANY RESULIS OVERALL COMPANY RESULTS x Total sales mEUR Profit for per mEUR Share price EUR share Total sales Operating result ar Profit for period mEUR Owners equity Return on sales 3 6 T sd ye Return on equity 16 4 4 7 3 39 Payout dividends mEUR 0 0 2 3 0 8 5 0 4 4 Cumul dividends mEUR 0 0 2 3 oral 8 1 12 4 Planning quality index quality Planning quality index 13 04 2 0 2 Oa
66. ine no 1 You will find the identification numbers of the lines in Report 2 Production Lines Environmental Technology There is a maximum of three production lines per type inl x Company a Period Financing mEUR Medium Term Loans 35 0 Long Term Loans 0 0 Purchase of Securities 0 0 Dividends of Met Income 30 Market 1 Market 2 Sales Product 1 143 5 21 8 Product 2 38 4 0 0 Return on Equity 18 2 Cash Flow 18 8 S e wmm X Cancer He The fields in the Planned Figures 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 Planned Figures 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 3 2 1 3 2 1 1 Instructor s Data Starting Situation Data for the Periods Activation of Features Graphs of Functions Factors Cost Allocations Define Variables for Analyses ooh WN Starting Situation The data for the starting situation consists of e The starting values the same for all companies e The starting balance the same for all companies and e The company names Personnel Starting values are needed in order to generate the starting situation The starting values are the data from the end of the imag
67. ined 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 TOPSIM General Management II EA starting Situation EE O x Data for the Starting Situation Before Period 0 Resources Balance Sheet Companies Names Personnel Purchasing Number of People Administration Production R amp D Sales Force Inventory Units value ELRJILUn J Product 1 Input Materials Parts 25000 500 Finished Products au 2020 Buildings Book Value 500 Remain Life Per 20 Production Lines Book Value Rem Life Capacity Fixed Enviro Ma imELIR Periods nite Expend Index ann 1 50 ann 1 00 90 00 11500 0 50 94 00 13500 0 25 4 50 6 00 Personnel The number of persons at the start of Period 0 is entered Inventory These values only apply to Product 1 and describe the inventory of input materials parts and finished products at the start of Period O 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 The book value is shown here alongside the remaining life of the buildings Th
68. ing curve Product 2 Cumulative Productivity index II for production to previous period in 1000 units Product 2 Tech Eco situation Factor for know how transfer from Product 1 old to Product 1 new and Product 2 since version 10 set to O Correction factor Mkt Model Specific curve of market model TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 24 3 2 5 Factors Cost Allocation EX Factors Cost Allocation These definitions apply for all companies and all periods Impact of Factors Cost Allocation Advertising Sales Force Corporate Identity ml x heu Qld Max MEUR Start mEUR 0 70 0 40 16 00 5 00 0 65 37 10 00 3 50 1 00 0 50 80 00 5 00 Technology Ecology heu Qld Max MEUR Start mEUR Factors Product 1 Advertising Market Share 0 80 1 10 1 10 1 20 isl Print X Cancel Help 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
69. ings NPRPNNFPRPNNFEFPNNKF KB Market Market Product Product Bulk Buyer Required Bids Product 1 Product 2 Product 1 Product 1 2 2 NeN eN eNEeNEeEeNEeEeNEeENEe N MR RR RR RR RR RR RR RR SR SR SR SR SR SR SL Market Market Product Market Product 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 Cumulative Cumulative Product Product Product Product Product Product Total Market 1 Market 2 Total Actual Period Product Devel sales Type A Type B Type C Purchase Administration Production Personnel R amp D Personnel Sales Personnel Costs Incl Non Sal Staff costs Non Sal Staff Costs Corporate Identity Investment in Capacity of Capacity of Capacity of Production Production Utilization Utilization Production Prod 1 Production Prod 2 Additional Purchase Warehouse Inventory Warehouse Inventory Warehouse Inventory Product 1 Warehouse Inventory Product 2 BALANCE SHEET Cash Overdraft BALANCE SHEET Equity BALANCE SHEET Net Income Net Loss BALANCE SHEET Liabilities BALANCE SHEET Pension Reserve BALANCE SHEET Total Balance Manufacturing Cos
70. ings of OPEC the oil producing states failed to fix output and prices compulsorily Therefore in the coming year a fall in prices on the crude oil market is expected which will reduce the costs of factory materials to 46 Euro for the product 1 black and white photocopiers The following information is available on the development of demand d4 for black and white photocopiers The dual effect of the trend in prices on the market for black and white photocopiers and the economic recovery indicates a small increase in demand for the short term and a larger increase in the companies demand for the medium term The departmental buyer of the well known commercial chain MEGRO is interested in product 1 MEGRO is prepared to purchase every quantity between 1 and a maximum of 5000 per company at the price of 2500 Euro per copier TOPSIM General Management II Instructor s Manual Explanatory Notes Page 81 5 2 18 Decisions Data Report Decision Data Report Company 2 PRICE Product EUR unit d4 Product FCU unit d4 Product EUR unit FCU unit Produc ADVERTISING SALES m c 1 No of people 120 arket 2 No of people 37 MARKET RESEARCH REPORT Y N La BULK BUYERS units BID PRICE FOR TENDER E unit EXPENDITURE FOR CORPORATE IDENTITY MEUR PRODUCT DEVELOPMENT Product 1 old Technology No of ppl Ecology MEUR Value Analysis mEUR Product 1 new Technology No of ppl E
71. isl Print X Cancel Help Loans 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 Taxes Pre tax Income Tax rate on pre tax Income Wages Salary Tax on wages Values for the report called Corporate Socio Economic Statement Dividends Tax on the distribution of dividends Values for the report called Corporate Socio Economic Statement Others RMS Penalty Additional costs for automatic express shipments of input materials parts Payment Per Percent of sales revenue that is received in the current period Cash Min mEUR Minimum cash on hand required Securities Interest Interest yielded from securities Average Interest Rate CFROI This is the interest rate that appears in the Value Oriented Ratios report No 16 as ratio number 7 WACC 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 Value per index Value in mEUR per planning item Basis for the calculation of the earning capacity value TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 14 3 2 2 4 Other EN Data for the Periods Mkt StaffiLines Prod Purchasin
72. j N a 4 e i rJ a e s a WM i ey P Ve oy _ a 2 7 EE quu Le arning wem by doing business TOPSIM Simulations So Learning business by doing business TOPSIM General Management Il Instructor s Manual Appendix Explanations Version 12 0 Copyright TATA Interactive Systems GmbH D 72070 T bingen Table of Contents 2 1 2 2 3 1 3 2 3 2 1 3 2 2 9 2 9 3 2 4 3 2 5 3 2 6 3 3 4 1 4 2 4 3 4 3 1 4 3 2 4 3 3 5 1 5 1 1 5 1 2 5 1 3 5 1 4 9 1 5 5 1 6 5 2 5 2 1 5 2 2 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 9 2 12 9 3 13 5 2 14 5 2 15 5 2 16 50 2 17 i i elect d 1 i GARE sarin sa galore E A E AA E E E 1 Pile os iont cce Coa u iare CUu dodo ob Ea s Ou d aud ee dE eu du dU aee o Cu Lo Oud Gepd ds Cdi adipi ea we 1 Game Versions esra sola dieu Bee Aen Ne NE PUR A LE 2 Key Seminar Data scuto iia bate Dare bene co M osa e ue cC Ded EE SL E MOL 5 cop gend ec EL PER comet 7 DECISIONS ERN T UP 7 HVS HUG TONS ID zl MNT 9 Starting Situation 0 cece ccc ec eee aa a r a ea aaaea 9 Datajtor ihe Periods ci dou oia teas peu uio lo er bee eaten ere 11 Activation of Features rsono Dru alt mde tee ba or dtu eaten Ae es i eds 19 Graphs OF FUNCIONS NI NR 22 Factors Cost AllocatiOM seee nercel ione ies edita 25 Define Variables for AnalysesS nn nnnnennnnernonernorrrnrrernorrrnrrrrnrrernrrrrnrrernrreras 27 Date OREDO aei
73. l Mode button in the participant s system EA Enter file path to participants data Please enter the file path ta the participants data here The number of characters for a file path may not exceed bU Double click in the file path field to open the dialog box 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 EA Enter File Path for Data Directory Unternehmen 1 A Select Drive f Wechseldatentrager F 3 Enter File Path X Cancel By clicking on OK the file path is confirmed and shown in the field TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 92 6 2 5 6 2 6 Import the Data to the Participant s System EN Enter file path to participants data E Bl x Please enter the file path ta the participants data here The number of characters for a file path may not exceed bl Double click in the file path field to open the dialog box w OK X om _ ues E23 X Quit 7 Help If necessary click on OK 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 Save the Data to the Participant s System If the data medium is only temporarily available e g using 1 USB stick for all teams you mus
74. le to Environmental Authorities next period mEUR TOPSIM General Management ll Instructor s Manual Explanatory Notes Cumulative value from report Decisions 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 3 5 points 30 mbEUR 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 mbEUR Index 85 Tax 5 mEUR Page 56 5 2 4 Human Resources and Product Development No 4 HUMAN RESOURCES AND PRODUCT DEVELOPMENT STAFF BREAKDOWN BY DEPARIMENT COST CENTER Hired F E E d Dismissed Attrition i E Me Wages amp Salaries 1 mEUR Turnover Training mEUR Non sal staff costs mEUR Pension reserve mEUR Total staffing costs mEUR Q Non salary staff costs as of wages and salaries 39 0 Training Production mEUR 3 0 Motivation of staff Index 92 1 Without overtime costs PRODUCT DEVELOPMENT mEUR mEUR PRODUCTS po Cumul Index Period Index Period Cumul Index men pepe Dep Product 2 new Staff breakdown in cost The staff costs are shown here without overtime centers The non salary staff costs have a direct influence on the
75. les Identifiers of the respective variables are in list form Subtitle and or graphical form You may change these identifiers pate yourself max 18 characters As Excel only allows 8 characters you may need to make suitable abbreviations Report 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 EXCEL Yes No decisions as to whether the variable should be included in the exported files Note If UNICON s EXCEL Show is used then all of the variables should be selected Initially all variables are selected already by default Decim Number of decimal places for the value Rank Used to determine the order in which the variables are generated in the reports and charts TOPSIM General Management Il 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 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 Subtitle Possible Sales Po
76. ls 0 1274 0 24 5 P 1 j 0 45 0 22 4 FE D 0 hax i tity Fri EUR dca ae eey Yolume Units panini 2700 Tender 3000 0 00 0 00 Production Hired Dismissed 33 Maximum Ma S00 500 31 Costs IthEUR 14 0 10 0 33 Mon Salary Staff Costs 95 370 s0 Pension Reserve 96 6 0 AB Max Dec Mon Sal Costs 30 Rem Life Capacity Fixed Enviro Proceeds Periods Units Expend Index RB 10 14000 0 3 100 0 20 0 10 18000 2 0 105 0 25 0 15 22000 2 5 110 0 30 0 Print The market volumes are fixed in mCU Market 1 and in mFCU Market 2 FCU 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 Foreign Currency Unit The Number of participating companies The industry volume is adjusted as the game progresses according to the average price the industry 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 in in These are the wages and salaries for the company s functional areas in thE
77. lue of period TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 72 5 2 12 Market Research Report I No 12 MARKET RESEARCH REPORT I emm PRODUCT 1 MARKET 1 i 105 00 18 8 112 2884 32 00 100 0 247532 1 PRODUCT 1 MARKET 2 105 6 109 2 2 E 1152 0 30727 j j 111 6 108 5 0 00 2255 100 0 21772 100 0 100 0 109 5 108 5 MARKET 1 PRODUCT 2 3500 105 8 102 7 n k 2500 3 101 2 TOL 2S 5000 101 0 101 8 i 0 0 00 i 0 ERODUCT 2 MARKET 2 66 7 3 105 8 102 7 16 7 101 2 101 8 16 7 101 0 101 8 0 0 i 0 0 00 0 0 pore se o of vo co co fier ras OTHER DATA COME PROD ERCD 1 PANY STAFF O R N Expenses R amp D mEUR Expenses for technology ecology and value analysis in the current period for all the products in this market TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 73 5 3 13 Market Research Report II No 13 MARKET RESEARCH REPORT II MARKET RESEARCH REPORT II PRODUCT 1 MARKET 1 Varket Share 735 507 Change in Revenue 5 Variance Price Var market share abs Explanations of Market Research Report Il The market research report is shown per product and per market Diagram 1 Sales Market Share TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 74 The diagram
78. material costs 2 97 2 97 0 00 Direct material costs 27 93 27 93 0 00 Indirect material costs 3 29 3 29 0 00 Total material costs Direct production costs 1 Production overhead Cost center Production Total production costs R amp D Direct costs Overhead Sales Dist Direct costs Overhead nee Direct costs Overhead Ecology Value Analysis Cost center R amp D Transport 4 Ads ost center Sales Cos C 2 t nter Admin Direct material costs Indirect material costs Total material costs Direct production costs 1 Production overhead Cost center Production Total production costs COST OF GOODS MANUFACIURED CGM RED Direct costs Overhead Sales Distribution Direct costs Overhead Administration Direct costs Overhead COST OF PRODUCTION 1 Wages or salaries non salary staff costs pension reserve rework 2 Wages or salaries administration FC administration non salary staff costs pension reserve es This block does not appear when Ecology Value Analysis Cost center R amp D Ads Transport ost center Sales C 2 Cost center Admin production is subcontracted The basis for the allocation of overhead to the products can be found in the instructor s file Instructor s Data Cost Allocations TOPSIM General Management ll Instructor s
79. materials parts per product Units Capacity per Product Required capacity units of production lines per product Units Prod Cap Person Units Number of products Units that one member of the production staff can produce in a period Factory Materials Other variable costs per product including costs for factory EUR Unit materials and other costs see details in the scenario texts Purchase of Input Purchasing costs in Euro unit Materials Parts Subcontracting Purchasing costs in Euro unit Transport Costs Transport Costs in EUR unit for transportation from the warehouses for finished products to retailers TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 13 3 2 2 3 Financing ENData for the Periods i E E i2 x Period 6 bud Mkt Staff Lines Prod Purchasing Financing Other Company Comparison Corrections Cu H Dividends 20 0 Financing Medium Term Loans Other of Equity HP to 11 9 Payment Per 80 0 Above 43 9 Cash Min mbEUR 01 Long Term Loans 7 0 Securities Overdratt Loans 44 0 Interest 5 0 Taxes Pre tax Income 550 Average Interest Rate Wages salary 30 0 CFR l 13 0 Long Term Loan Int Rate 55 Market Risk Prem 36 55 Long Term Corparate Loan Preferred Interest Company Beta Factor Rate T 10 0 1 00 1 00 1 00 1 00 1 00 Planning Quality Value per Index Point mEUR 0 5 Active From Period 0 EJ
80. n of Data Transfer in the Instructor s System ssssssss 90 Provide Data to the Participants cccccccccccce cece cece ee ee eases mmm 91 Define the Data Transfer Settings in the Participants System 91 Import the Data to the Participants System sssssesesesn 93 Save the Data to the Participant s System ssesssseeeeeeneene 93 Import the Participant s Data to the Instructor s System 94 Transfer Data to the Participants enu e er eel Cu diese 96 Reset Participant System Reset esses nemen nemen 97 Note on the Network Version ccccceceeecececeeeeeeeeseseeeeeseeuseseseseaesegeaseneneans 97 ITALY S I AN P 98 On Screen Graphs Charts Individual Results eseeesesesesss 98 Analyses of the Situation Industry Portfolio Analyses ssesssss 99 Analyses oF tlie Sector Eo deii einge diae museo le iiu m uda Du ues 99 Comparny Portfolio ArialysSes us io roe oho d eect ea eee 100 bd den 101 TOPSIM General Management II Instructor s Manual Explanatory Notes Preface The Instructors System for the management game is described and explained here The teams or Participants System is described in the appendix of the user s manual Start After double clicking on the management game ico
81. n you will see the main menu for the game EA TOPSIM General Management II Instructor s System File Edit Simulation Reports Data Transfer Analyses Help A oim j ewe 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 c c c c File Edit Enter decisions if they are not read via data transfer Simulation Simulate next period Reports Instructor s Reports Participants Reports 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 CON OO RP WN 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 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 Il Instructor s Manual Explanatory Notes Page 1 2 1 2 This function allows you to return from the current period the one that you are playing in the seminar to Period O
82. nd 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 Seminar Seminar B from 31 1 1998 Period 5 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 FA Seminar key data Impx You will see this menu if you select YT selection of game version name of seminar m number af teams data I the Initialize a new simulation command To initialize a new simulation means to e Select the game version Data versions A B periods Please select the game version for the new simulation B 8 periods C Base module D E Mote an the game versions e Specify the name of the seminar th
83. nitely 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 Il 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 CT iojxi Company 1 Period 7 Assumptions Results All Price EUR Product 1 Market 1 Per Un FCU Product 1 Market 2 EUR Product 2 Market 1 FCU Product 2 Market 2 Advertising Product 1 Market 1 6 00 6 00 6 00 6 00 6 00 mEUR Product 1 Market 2 0 00 0 00 0 00 0 00 0 00 Product 2 Market 1 0 00 0 00 0 00 0 00 0 00 Product 2 Market 2 0 00 0 00 0 00 0 00 0 00 Sales Force Market 1 100 100 4100 100 100 People Market 2 0 o 0 o o R amp D Technology Prod 1 1000 1000 1000 1000 100 0 Index Prod 2 0 0 0 0 0 0 0 0 0 0 Ecology X Prod 1 1000 1000 1000 1000 1000 Index Prod 2 0 0 0 0 0 0 0 0 0 0 Corporate Identity mEUR 20 20 20 20 20 Product 1 Relaunch B New Launch E Li 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 com
84. nning Model 1 With this function you determine from which period Planning Model 2 onwards the Planning Models will be made available to the Planning Model 3 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 ll Instructor s Manual Explanatory Notes Page 20 3 2 3 4 Bankruptcy Periods Here companies can be eliminated ji 1 2 39 995 9 amp from the game If for example in Company 1 E Period 4 bankruptcy is entered for Company 2 L Company 1 and Period 4 is then Company 3 m CO AE simulated then the company will be Company 5 B 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 Value Oriented Ratios 1 Net Operating Income NOI Iv 2 Cash Flow CF Iv 3 Met Assets MA Iv 4 RONA MOL NAJ Iv 5 EVA NOI i MA Iv b EVA Period Prev Period Iv PF CFROL CF NA Iv B DTCF CF j95 NA Iv 4 DDTCF DTCF Per Prev Periodi Iv 10 MYA Iv 11 EBIT Iv 12 EBITDA Iv 13 CASH FLOW Statement International Iv 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 c hb L
85. ntity produced 74262 1849 137 28 Quantity purchased m m 14 38 Quantity distributed 74262 1849 137 28 2500 5750 14 38 Final inventory 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 Bulk buying Price EUR Unit Sales Units Revenue mEUR Requests for bids Company Industry Company Industry Company Industry Company Company Industry Company Industry Company Industry Price of own company Average price of industry incl own 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 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 Instructor s Report 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 from supplier Quantity used in production Final inventory Quantity Units Inventory values Quantity Units Inventory values Quantity Units Inventory values No
86. ny 4 he Campy 5 fu BOD Prods a es MI m2 1 SEN Product 1 ET Prodi 2 rT x Variables Aus Li C Mukai Shan t C Sales Linas ie C Revenue t Priti AUOD C Advertising mEURY Sales Stam Nog C Tachnolegy indes Eealop indai C drag nde L Marlialie Periods gahs amp Porind 3M00 Revenue C PrewPer 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 EAcompany Portiolio Analysis oe Pak Growth Fiste Cempan 1 Company Z Comprar 3 Compay 4 Company a T m wt Prius Bla hobs MT H2 Product 1 E Pr durt 2 FJ Fi variata Parinds ir sues C Posing f Revenue roca Prev Per zu 210 ee F a c 7 cH EE Graphic parameters mali 21 24 0 25 0 26 0 er Morkel Share Via the button with the triangle on it you can access a dialog box through which you can change the parameters of the charts EA Portfolio Analysis Parameters for Portfolio Analysis and Il Maximum Minimum Values for Variables Analysis X axis and Y axis Minimumi Maximurn s Market Share sales Units HevenueimEUR Price Advertising sales Staff Ma Technalagy Index Ecology Index Image Index l0 x Maximum Minimum Values for Va
87. o Cn cC J cu Ecology Value Analysis Rationalization Environmental Investments Training Process optimization Non Salary Staff costs Financial Decisions Purchase of Input Material subcontracting of Product 2 Corporate Identity I XI I XI x I I I xl a lt 1 XI I XI I I I I I xl a lt 1 XI XI 41 41 I I I I xl I XI I I I I I I I xl SI XI I I I I I I I xl a lt 1 XI I XI I I I X I I xl I XI I XI x lt 1 I I xl lt 1 XI I I I I I I I xl a lt 1 XI XI XI I I I XI I xl 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 Instructors Manual TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 21 3 2 3 7 3 2 4 Languages Depending on the license you Perinds 7 2 2 4 EE M amp own different languages can be CC rir rwRPRPRReRe deuten or deactivated for the English LriL ww hw MY iM hw i participants You are not French w i iw iv iv iv i iV V restrained from switching from Italian Iw iv lv lv lv lv ie iv fv m in th Spanish m mmmccrrurc anguage to language in the Russian CiD DCM ww Mw lM i Instructor s System Greek a al Coal al a
88. ome Income taxes NET Nom ND 000 033 33 8 82 82 2634 3 3 Depreciation Pension reserves 2 CASH FLOW AFTER TAX CF FLOW AFTER TAX OPERATING INCOME Taxes from Operating Income NET OPERATING INCOME NOI a NET ASSETS en Prev p zs E emper Land and buildings 6 00 6 25 Eoo 4 0 Machinery and equipment 51 80 51 45 5 65 9 8 i Fixed assets 0000 Fixed assets 0000 assets 57 57 80 63 70 Material Finished goods Accounts receivable Securities and cash TOPSIM General Management II Instructor s Manual Explanatory Notes Page 78 Average interest rate for CFROI j 13 0 1 Net Operating Income NOI Cash flow CF Net Assets NA RONA NOI NA EVA NOI i NA EVA period prev period CFROI CF NA DICF CF j NA DDICF DICF per prev per MVA EBIT EBITDA CASH FLOW Statement Int l ad 4 RONA Return on Net Assets ad 5 EVA Economic Value Added ad 7 CFROI Cash flow Return on Investment ad 8 DICF Difference Total Cash flow ad 9 DDICF Delta Difference Total Cash flow ad 10 WA 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 Il Instructor s Manual Explanatory Notes Page 79 5 2 17 Scenario 17 SCENARIO 7000 7000 2100 27
89. ource 4 Reset Terminate Program x 5 Change Language amp Exit Program First write the data back onto the data medium from the participants system using the following command File Write Data The following prompt will appear again iB x 9 D ata transfer 2 please make sure that path F AUT for company 1 is available After clicking on OK the data is written to the specified file path Then you will receive the following announcement This step will occur for all of the participant s systems TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 94 Through the instructor s system you can then import the decisions Adjust Data Directories FESTE Data with Participants Systems I mi x Network version Please take care of the correct and complete input of the participants directories Adjust Data Directories Read Teams Decision Data W Company 1 Company z W Company 3 Write Results onto Teams Systems 7 Company 4 Initialize Teams Systems lf Company 5 Only the data of selected companies indicated by checkmarks in the check boxes is imported For each team selected the following prompt will appear iBl x 9 D ata transfer 32 please make sure that path F AUT for company 1 i available Now you can arrange the usual period calculation Afterwards you assign the results back to the participants with
90. pact of market share during relaunch The market share during the relaunch increases by 1 1 compared with No relaunch 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 amp D and Sales o0 cN In proportion to the cost of direct materials Material Value In proportion to the direct costs Direct Costs In proportion to the capacity requirements Capacity Required In proportion to the production volume Production Volume In proportion to the costs of goods manufactured CGM In proportion to 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 Il 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 e In list format Reports Analyses e As on screen charts and graphs or e By being exported as ASCII files to a program such as EXCEL
91. pany ioj x Company 1 Period 3 u1 U2 U3 U4 u5 Total Sales Vol Prod 1 Market 1 53258 53258 53259 53258 53259 Un Prod 1 Market 2 0 0 0 0 0 Mkt Share Prod 1 Market 1 20 0 20 0 20 0 20 0 20 0 as of Prod 1 Market 2 0 0 0 0 0 0 0 0 0 0 Sales Vol Revenue Prod 1 Market 1 159 78 15878 15978 15978 15278 in mEUR Prod 1 Market 2 0 00 0 00 0 00 0 00 0 00 Mkt Share Prod 1 Market 1 20 0 20 0 20 0 20 0 20 0 as of Prod 1 Market 2 0 0 0 0 0 0 0 0 0 0 Revenue BprintRepon X conoi Zue 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 All 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
92. penses Medium term amp overdraft loans repaid Interest paid on loans Purchase of production lines Purchase of securities Purchase of environmental plants Income taxes Dividends paid previous period Extraordinary expenses BALANCE SHEET mEUR FIXED ASSETS 3 OWNERS EQUITY Property Plant and Equip Share capital Land and Buildings Capital reserves Machinery and Equipment Retained Earnings Loss carried forward Net income for period CURRENT ASSETS PENSION RESERVE Inventories Input materials Finished goods A i LIABILITIES Accounts receivable Long term loans gt 5 per Securities Short term loans lt 1 per Cash Overdraft loans TOPSIM General Management Il 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 Owners Equity are part of a group Owners Equity including the net income for the year as well as the accumulated losses brought forward The balance sheet items of the Owners Equity include the following Share capital Share capital corresponds to the capital stock
93. production staff Production optimization Period mEUR Decision for current period TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 41 Cumul MEUR Index Productivity index Experience and Production Cumul prod prev period Product 1 Product 2 Productivity index Il Product 1 Product 2 Total productivity index Product 1 Product 2 Capacity Pers Cumulative expenses up to and including current period Achieved index for lean production Competence index Index for lean production projects The cumulative production up to the previous period is the basis for the calculation of Productivity Index Il This index is calculated separately for Product 1 and 2 Same as above Productivity Index Productivity Index II Normal capacity for production in the period see page 2 of instructors data total productivity index TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 42 5 1 3 Instructor s Report Ill INSTRUCTOR S REPORT III INVENTORY COSTS FINANCE Inv material Pl Express shipment Inv material P2 Penalty purchase Invent Product 1 Invent Product 2 Planned prod Actual prod Planned prod Actual prod Motivation Production staff Hired Dismissed Attrition Non sal costs Staff Purchasing Administr R amp D Sales Revenue Prod 1 Revenue bulk bu Revenue tender Revenue Prod 2 REVENUE TOTAL Total costs OPERATING INCOME INIERES
94. products that one person produces in a period normal production capacity of one employee see data for the periods productivity index productivity index ll Required Staff required Req Cap Required Available in Req pers Required Utilizable in Values above 100 0 mean overtime Note In the case of overtime 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 company s 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 Environmental damage indicator for the company Index Tax payab
95. ral Management ll Instructor s Manual Explanatory Notes Page 54 Process optimization Index Staff competence index Productivity index Experience and Production Cumul prod prev period Product 1 and 2 Productivity index Il 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 O 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 forgetting 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 Il This index is calculated separately for Product 1 and 2 Achieved index Utilization rate of production lines Production Units Production capacity Production staff Allocation in Utilisation 96 Actual production quantity Factor Required units of capacity in order to produce one unit of the finished product Required Required units of capacity in order to produce the actual production quantity Factor No of
96. revious 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 company s market situation Here the variances of one s own company from the average of the other companies is shown as a percentage Sales Self explanatory Distribution Same as Advertising Turnover Self explanatory CI Self explanatory Price Self explanatory Technology Technology index Advertising Current effect of Ecology Ecology index advertising in the CM l Unit Contribution margin l unit period based on the CM Il Unit Contribution margin II unit expenditures of previous periods and the current one TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 75 5 2 14 Business Report on the Industry No 14 BUSINESS REPORT ON THE INDUSTRY PROFIT AND LOSS STATEMENT Administration costs Other expenses income OPERATING INCOME 2299 21432 24 29 Income reg business operations Extraordinary income Income Taxes FIXED ASSETS Land and Buildings Machinery and Equipment CURRENT ASSETS Raw Materials Finished goods Accounts receivable Securities Cash BALANCE SHEET TOT
97. riables Analysis II 74 Minimum96 Maximum X Market Share 0 00 0 00 Mkt Growth Rate 0 00 0 00 Maximum Radius in Pixels Dae hax Radius cales 28 Revenue 28 CM 28 CM Il a0 CM Ill 12 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 Il 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 Il 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 b
98. 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 Background For many years disks were the common medium for transferring data so they were also used for the TOPSIM 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 instructor s and participants 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 Il Instructor s Manual Explanatory Notes Page 87 6 2 Overview Here is an overview of the options you have along with ins
99. shows the company s 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 companies growth Market share X Sales in thousand of units g Intersections v Value outside represented area Diagram 2 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 companies growth Total market X Intersections V Company concerned Value outside represented area Diagram 3 Var Advert Cl SIs Distr 9s 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 Cl technology and ecology The values of each company are shown from the current and previous period Number and Number of the company and value in the current period e g position 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 p
100. sis of total values in mEUR for Product 2 including costs for outside production Inventory value See above TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 52 5 2 3 Production Lines Environmental Technology No 3 PRODUCTION LINES ENVIRONMENTAL TECHNOLOGY KEY DATA ON PRODUCTION LINES Procure Acquisit Remaining Depreciat ment value life mEUR Production lines period mEUR Periods Period Type C Line No 1 30 00 8 2 00 16 00 Type C Line No 2 22 50 9 1 50 13 50 Type C Line No 3 30 00 11 2 00 22 00 CAPACITIES OF PRODUCTION LINES Pot cap Er CN CS Actual cap Enviro Production lines Units Er CN CS Factor Units index Type C Line No 1 1 10 Type C Line No 2 ITO Type C Line No 3 1 00 Note Rationalization is cumulative from PO PRODUCTION STAFF AVAILABILITY AND PRODUCTIVITY Workforce No of ppl Process optimization index Newly hired No of ppl Adaptation Loss from absent No of ppl Staff competence index q4 Motivation index Available staff NO of ppl 1328 Productivity index I EXPERIENCE AND PRODUCTIVITY Product 1 Cum prod prev period 437195 Prod index II Period Cel Product 2 Cum prod prev period 0 Prod index II Period 1 00 UTILIZATION RATE OF PRODUCTION LINES Production Production cap Product staff Allocation in Units Factor Required Factor Required Req cap Req pers Product 1 74262 0 9 66836 57
101. ssible 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 0 0 oU 3 0 N H Product Product Product Product Product Product Product Product Product Product Product Product Product Product Market Market Market Market Market Market Market Market Market Market Market Market Market Market free Sales Sales Sales sales Sales Sales Total Total Total Total Sales Total Staff Actual Market Share Actual Market Share Sales Sales Productivity Productivity Price Price Price Price Price Total Total Total Total Total Total Cumul Cumul Cumul Cumul Total Cumul Advertising Advertising Advertising Advertising Advertising Total Shareholder Shareholder yo ee 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 Revenue Revenue Revenue Revenue Revenue Revenue Sales Revenue Sales Revenue Sales Revenue Sales Revenue Revenue Sales Revenue Earnings Earn
102. structor activates the feature io xj Company 1 Period 8 Planned Fiqures Periods Results Periods 8 9 10 11 Im 8 9 10 11 Total Market Volume M1 0 0 0 0 0 0 Price Un EUR th Un M2 00 ogo 0 0 0 0 Sales th Un Own M1 0 0 0 Market Share 96 M2 0 0 0 0 Sales Rev Subcontracting PricefUn EUR M1 0 0 0 0 FCU M2 0 0 p Transport Costs CMI Purchase Advertising Mi 90 oo oo oo Advertising mEUR M2 oo oo oo oo Sales Add Sales Personnel Add Cl mEUR R amp D Technology Ecology 0 0 0 0 Value Analysis 0 0 0 0 Others mEUR 0 0 Cl Administration R amp D Others 0 0 Period s Results 0 0 Cum Result oo oo oo l l l E Graphic fs Print X Cancel Help Market Volume Market Share Price Un EUR Advertising mEUR Add Sales Personnel Add CI mEUR R amp 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 Cl 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
103. t 0 0 0 6 16 4 0 0 1 8 8 19 0 0 21 3 p E 23 2 6 0 Share price E 157 E 235 4 338 6 359 2 x1 5 360 6 0 0 214 9 Value of company nEUR 78 5 117 7 169 3 179 6 144 3 180 3 0 0 107 5 Corporate image index image Corporate image index 100 0 0 103 5 5 109 8 8 E 2 E 7 108 6 6 110 7 7 105 7 7 Sharehold earnings mEUR rd 0 E 0 E O 151 1 117 7 Ed 7 E Sharehold earn since 0 0 0 152 7 265 1 303 5 236 4 308 9 0 0 TOPSIM General Management II Instructor s Manual Explanatory Notes Page 69 Share price The influences are Owners equity end of previous period Net income Earned dividends of period Accumulated dividends since Period O Return on sales Accumulated marketing mix Advertising Cl 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 500000 shares Company image index Influences e Expenses for CI e Indices of product attributes e Environmental damage index of production lines Shareholder Earnings cumulative dividends change in value of company mEUR Be aware of rounded up and down figures Shareholder Earnings Change compared to starting value Period 0 96 PO TOPSIM
104. t first save the data locally before it can be accessed That is done via the File menu in the participants system File Edit Planning Models Reports Analyses I Printer Setup Import Data From External Data Source write Data Reset Terminate Program E Lo Be ig Change Language Exit Program File menu Import Data from External Data Source command You will see the following message appear O x 9 D ata transfer 3 please make sure that path F AUT for company 1 is available Afterwards click on OK The data will be saved locally TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 93 6 2 7 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 Import the Participant s Data to the Instructor s 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 participant s can also deliver their locally saved data as follows File Edit Planning Models Reports Analyses 1 Printer Setup 2 Import Data From External Data S
105. t time and that the name of the seminar the number of teams and the date will also remain the same Name of Seminar 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 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 manage a company by using the decisions of a group from a previous seminar Date 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 OK 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 O 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 Il Instructor s
106. te Image Index Cl C2 Index C3 C4 C5 Training Expenditure Period USD Process Optimization Expenditure Period riUSD Process Optimization Index TOPSIM General Management ll Instructor s Manual Explanatory Notes Page 85 Data Transfer Data Exchange with the Participants 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 Exchange Data with Participants Systems Bl x Network version The data exchange between the Instructor s a Please take care of the correct and complete input of the participants directories System and the Participants System occurs either with the help of disks so called o v All transfer disks or participants disks or via Adjust Data Directories c 1 the network You exchange data via the Data ins i Read Teams Decision Data v Company 2 Transfer command on the main menu 0 RenTensQesmas M Company 3 Write Results onto Teams Systems 7 Company 4 Initialize Teams Systems iv Company 5 v OK Help Read change installation paths This item is only offered in the menu if you have started TOPSIM General Management ll as a network version Parameter u net
107. tes Quantity Units Inventory Values Inventory for Finished Products Initial inventory Quantity produced TOPSIM General Management Il Instructor s Manual Explanatory Notes Quantity Units Inventory values Quantity Unit Cost of Goods Manufactured Inventory value Closing inventory of previous period Values at the end of the previous period Decision for additional purchases Purchasing values according to the discount schedule in the instructor s file Inventory units used in production Weighted average based on total values in mEUR The consumption of inventory is influenced by value analysis Units to be produced Value analysis index Opening inventory Quantity from Supplier Quantity used in production Invent value of quantity used in production Euro Unit Volume Closing Inventory Closing inventory of previous period Values at end of previous period Actual production volume see Production Report Cost of goods manufactured per unit Value is taken from reports Cost Accounting Unit of output costing Volume EUR Unit Page 51 Quantity purchased Quantity Units Values arise from participants Subcontracting Only for Product 2 peels Costs and volume based price scale EUR U from instructor s file Inventory value See above Quantity distributed Quantity Units Quantity sold Sales CGM Average value from opening inventory or costs and additions on the ba
108. tivates 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 ni xi Please select from which period onwards the features of the simulation are active Periods 1 2 a a 5B 7 5 c Product 1 Market 1 Product 1 Old Relaunch Product 1 Mew Development Product 1 New Launch I I 4 a I XI I a I XI xl a I I 4 a I XI 4 a I I 4 LEN M M ON NE NN epee LN NE MN N N NI Product 1 Market 2 x xl 4 amp amp amp mim xl Il xI xl a lt 1 4 4 lt 1 xl a I xl Li L TI LEN I xl xl xl xl Product 2 Development Product 2 Market 1 Product 2 Market 2 mem xc ee The so called base scenario Product 1 Market 1 is always activated from Period O 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 Il 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 Ple
109. tructions 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 Provide data to the participants Define the data transfer settings in the participants systems 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 ll Instructor s Manual Explanatory Notes Page 88 6 2 1 Definition of the Data Transfer Settings in the Instructor s System Use the Instructor s System Data Transfer command 2 E change Data with Participants Systems ol x Network version Please take care of the correct and complete input of the participants directories Adjust Data Directories I Company 1 Read Teams Decision Data Company 2 W Company 3 Write Results onto Teams Systems 7 Company 4 Initialize Teams Systems Ww Company 5 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 participants data transfer disks in drive A if you perform the data transfer with a USB stick you must change the file path EA Definition of File Paths BE n x Please enter file paths to the participants data The number of characters for a file path may not exceed Bl
110. ts Product 1 EUR Unit Manufacturing Costs Product 2 EUR Unit Total Costs of Prod Product 1 EUR Unit Total Costs of Prod Product 2 EUR Unit Operating Income mEUR Net Income Net Loss mEUR Contrib Margin II Product Market EUR Unit Contrib Margin II Product Market EUR Unit Contrib Margin II Product Market EUR Unit Contrib Margin II Product Market EUR Unit Contrib Margin III Product Market EUR Unit Contrib Margin III Product Market EUR Unit Contrib Margin III Product Market EUR Unit Contrib Margin III Product Market EUR Unit Cash Flow mEUR Return on Investment ROI Return on Equity Total Capital Rate Turnover Profitability Own Capital Rate Outside Capital Rate Capital Turnover Planning Act Variance Revenue Prod 1 Market 1 Planning Act Variance Revenue Prod 1 Market 2 Planning Act Variance Revenue Prod 2 Market 1 Planning Act Variance Revenue Prod 2 Market 2 Planning Quality Product 1 Market 1 Planning Quality Product 1 Market 2 Planning Quality Product 2 Market 1 Planning Quality Product 2 Market 2 Planning Act Variance Return on Equity Planning Act Variance Cash Flow Planning Quality Return on Equity Planning Quality Cash Flow Net Income Cumulative Planning Quality Actual Period Planning Quality Cumulative Earn Capital Value Actual Period mEUR Earn Capital Value Cumulative mEUR Real Net Output Cumulative mEUR Real Net Output As a Perc of Revenue Dividends Cumulative mEUR Environmental Techn
111. ty from O to 1 0 Absolute variance Target Actual in Absolute variance Target Actual in MEUR Expenses for environmental technology in Reduction of environmental mEUR damage points Environmental damage indicator Production Tax paid to environmental lines authorities Environmental damage indicator Production adjustment to the market lines share TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 23 Brief description of graphed functions continuation No Description x axis Doserpron y as Dividend Share Share price 65 Cumulative expenses for marketing mix 69 No of products and markets in Sales Share price 71 Ranking of total sales Share price Environmental Index of production lines Share price 73 74 Debt equity ratio Share price Liabilities Equity 75 Cumulative expenses for lean production Lean Production Index projects 76 Cumul in service training Competence Index Effect on absenteeism of production staff E NE Non salary staff costs Absenteeism rate 77 78 Expenses for Lean production projects Absenteeism rate mEUR Env index of production lines Absenteeism rate Expenses on training mEUR Absenteeism rate New hires in 96 compared with prev per Absenteeism rate Dismissals in compared with prev per Absenteeism rate Learning curve Product 1 Cumulative Productivity index II for production to previous period in 1000 units Product 1 Learn
112. ty to open the C Company 1 Planning Model for the group in question The participating Company2 group then enters its planned and assumed values in a form Companys Once they have finished working with the Planning Models the Company 4 instructor must then enter a code word code word SPL so Companys that the main menu can be returned to again By doing so X Cancel participants can be prevented from accessing and viewing your files Important note As long as the participants use the Planning Models on the Instructor s System the runs are free of charge On the Participants Systems each run costs money Default values in the standard versions are 50 000 Euro per run This is intended to prevent aimless experimentation TOPSIM General Management Il 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 Sales Vol Product 1 Product 2 Market 1 Market 2 Market 1 Market 2 Price EUR Unit 3000 0 FCLI 0 0 FCU Advertising mELR 6 00 0 00 mELIR 0 00 0 00 mELIF Elise NE at Meaple a 0 cales Market 1 Market 2 Corporate Identity mEUR 2 00 Product 1 D v Market Research Report Product 2 n The program shows participants their
113. uantity of finished goods in the inventories for the various companies if necessary The company will then gain incur extraordinary income expenses accordingly Page 16 3 2 2 6 Corrections EN Data for the Periods E E Bl xl Period f bud Mkt Staff Lines Prod Purchasing Financing Other Company Comparison Corrections Cu 4 H Market Data Corrections in Market Shares Product 1 Market 1 0 0 0 0 0 0 0 0 0 0 W per Product and Market Market 2 0 0 0 0 0 0 0 0 0 0 Product 2 Market 1 0 0 0 0 0 0 0 0 0 0 Market 2 0 0 0 0 0 0 0 0 0 0 Balance Sheet share Price e EUR Share 0 D 0 0 Data Entry for Owner s Equity share Capital 0 00 0 00 0 00 0 00 0 00 E Capital Reserve 0 00 0 00 0 00 0 00 0 00 Retained Earnings 0 00 0 00 0 00 0 00 0 00 Cash Total 0 00 0 00 0 00 0 00 0 00 EJ isl Print X Cancel Help 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 companies market shares must equal 100 and also the companies may experience problems with delivery capacity Balance Sheet For the balance sheet items e Share capital Capital reserve e Retained earnings You can increase or decrease the values or The total amount of the
114. ue analysis This is shown as a of the payroll gt Direct production costs prime costs for Product 1 and 2 gt Factor curves 41 42 43 proportionate allocation to Product 1 and 2 according to staff utilization see Production report Other Costs R amp D 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 COST CENTER ACCOUNTING mEUR COST CENTERS PERSONNEL COSTS Wages and Salaries Turnover Training Non salary staff costs Pension reserve OWON DEPRECIATION Buildings Production lines Environmental technol OTHER COSTS Misc fixed costs Maint Rationalization Process optimization Environmental tax Storage costs Ads Mkt Research CI Misc R amp D costs 0 00 TOTAL COSTS 57 49 3 29 29 04 13545 5 54 00 NO H Cc 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 Production Plants Environment These costs are presented here as overhead costs TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 59 5 2 6 Cost Accounting Unit of Output Costing No 6 COST ACCOUNTING Unit of Output Costing COST ACCOUNTING Costs in mEUR ERODUCT 1 PRODUCT 2 Input material costs 24 96 24 96 0 00 Factory
115. unc Factor 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 Values below a rating of 100 result taxes that must be paid to environmental authorities Cumul Expend Cumulative expenses for environmental technology in mEUR filter plants etc end of pipe investments Envir reduct Reduction of environmental damage by investing in environmental technology Damage indica Actual environmental damage index of the company Environmental index of the lines value from the column Envir reduct Tax n per Tax in mbEUR payable to the Environment Authorities for the next period Avail capac Available capacity of the production lines in the past period Utilization Lines Utilization of production lines in 96 Staff Utilization of the production staff in Production staff Final workforce Final number of production staff Absence persons Absenteeism in no of persons Absence Absenteeism as of final staff number Training Period mEUR Decision for current period Cumul MEUR Cumulative expenses up to and including current period Quality index Competence of
116. uro 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 Distribution the costs stated here are incurred and Page 12 3 2 2 2 Production Lines The following values can be changed per production line e Purchase price in mEUR e Economic life in periods Basis for depreciation per period e Capacity in units e Misc fixed costs in mEUR e Environmental index rating Values above 100 indicate that the line is environmentally friendly and e Proceeds from the sale of the line as a percentage of net book value Production Purchasing EN Data for the Periods i E Ee xi Period 6 bud Mkt Staff Lines Frod Purchasing Financing Other Company Comparison Corrections Cu 1 H Production Prad 1 Old Prad 1 Mew Praduct z MaterialsiParts per Prod Units 1 00 100 100 Capacity per Product Units 1 00 0 30 200 Prod Capacity Persan Units 45 50 18 Factory Materials EURI Unity AB AQ 140 Prad 1 Old Prad 1 Mew Product Purchase of Input Materials P arts EUR Subcontracting To Product To EUR Tn To Max Transport Costs Market 1 Market 2 EUR Unit TO 165 Product 1 255 340 Product 2 isl Print X Cancel Help Production Materials Parts per Prod Required units of input
117. velopment 5000 i Technology Ecology Value i ae No of Ppl mEUR mEUR Bid Price for Tender 1600 Product 1 New 0 0 00 1 00 Product Z New 100 3 00 4 00 vox a8 E isl Print X Cancel Help 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 Il Instructor s Manual Explanatory Notes Page 7 2 5 xl Company 1 Period TE Purchasin Product 1 Product 2 Input Materials Parts Units roog 3500 subcontracting Units 7 Product 1 Product 2 Production volume Units 58150 3500 Production Lines Type A Type B Type C Production Investment Humber of Mew Lines 0 Disinvestment Humber af the Line 4 Maintenance mEURLine 1 0 0 0 0g Rationalization mEWR Line 0 Process Optimization mEUR 1 8 Training mEUR 2D Investm in Env Plants mEUR 0 0 Mon i Staff Prod Staff Hired Dism 100 Casts 5 vox Jel Bl isl Print X Cancel Help 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 1 means that you wish to scrap l
118. xecutive 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 old report no 16 entitled messages and cautions 1 Sales The number of units sold of Product 1 Sales of Product 1 Market 1 in Market 1 was 62402 This 2262402 corresponds to a market share of 25 21 The average price per unit was 2916 EUR The industry spent 32 00 million EUR on advertising Your company ran out of stock 2 Process Product 1 The production quantity was CGM Product 1 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 ER EE ES ECS TCS Capacity was at 99 9 Product 2 The production quantity was SUONERETES O units The CGM are at 0 EUR unit Do O _ It was not necessary to pay a t surcharge in order to purchase an i 5000 express shipment of raw materials 4000 3000 Utilization of production personnel was 2000 1000 at 0 0 Utilization of production line 0 capacity was at 0 0 jct 102103 104 Ics TOPSIM General Management Il Instructor s Manual Explanatory Notes Page 48 3
119. xtraordinary expenses 0 00 EXTRAORDINARY PROFIT LOSS 0 00 Income taxes 996 NET INCOME LOSS FOR PERIOD 8 48 APPROPRIATION OF NET INCOME Net income loss for period Loss carried forward from previous period Transfer into retained earnings Dividends paid Loss income carried forward CASH FLOW Net income Depreciation incl disinvestment Pension reserve Cash flow after tax The accounting legislation passed on December 19 1985 allows for alternative methods of determining the company s 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 Il 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 I

Download Pdf Manuals

Related Search

Explanation_E_GM2_12_0

Contents

Download Pdf Manuals

Related Search

Related Contents