The Best Quick Guide and Tips to Win Capsim Capstone 2022 and Capstone 2023
This is the quick guide to win Capsim Capstone, it is made most simple to follow to make decisions for each round.
Use this guide from round 1 will help you and your team avoid mistakes and difficulties in later rounds, especially in R&D and Production decisions.
Again, start with right decisions in R&D and Production then can lead the simulation in the later rounds.
If you have any questions, send the email to: mbasim.ferris@gmail.com
You can watch the video guides, and download the free Excel spread sheet to use for calculation of R&D, Marketing, and Production to win all 8 rounds.
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TQM decisions
TQM will mostly kick in Round 3 or 4, you want to spend $1500 on the first round its available, then $1500 on the second round, and then finally $1000 on the third round.
Or simply use $1000 for 4 rounds to get max total $4000 for each TQM initiative.
This expenditure would be for every single initiative.
TQM will reduce your costs, increase your demand and decrease your R&D revision dates and also increase product quality.
It is simple to apply $1000 or $1500 for all the ten TQM initiatives, in 3-4 rounds.
Change MTBF for all our products to the maximum allowed by each segment.
* Traditional to 19000 or 17500
* Low End to 17000 or 14000
* High End to 25000 or 23000
* Performance to 27000
* Size to 21000 or 20000
You will read somewhere that you should lower MTBF to reduce material costs, I advise you don't, MTBF while it might not be the most important criteria; its the cheapest way to get Customer Buying Criteria, any percentage of criteria you lose from MTBF;
MTBF - Mean time before failure or duration of products, should be longest possible. Customer prefer most durable products. Therefore, use as high as possible.
Can check MTBF of top competitors and their prices. Keep highest MTBF as possible.
After MTBF, push your products as much as possible to their ideal positions without going into the following year.
TIP: Each round, need to update products two time, by increase PFMN and reduce Size. First time by Drift rate, and second time moving to Ideal spot.
TIP: The most common mistake students messing up their R&D for not calculating ideal positioning from Round 1.
Again, each round we need to update R&D to times to keep product specification meet the customer requirement.
To update R&D, go to Report (in the top menu of your game), last row you find Industry Condition Report, the you will see Drift rate for each segment.
| Segment | Performance Drift | Size Drift |
|---|---|---|
| Traditional | +0.7 | -0.7 |
| Low End | +0.5 | -0.5 |
| High End | +0.9 | -0.9 |
| Performance | +1.0 | -0.7 |
| Size | +0.7 | -1.0 |
After update drift rates to ideal positions, you update 2nd time to move products to the ideal positions for each product.
Also check Industry Condition report to find Ideal spot rate adjustment for each round.
TIP: You can download Free Excel file to Calculate R&D for all products for each round.
TIP: You need to keep track of launching date of each product from June to Oct in the same year to have time to sell new products. If update time longer than a year, reduce PFMN and increase Size (should happen for high end products and size products).
NOTE: THE ONLY PRODUCT THAT DOES NOT MOVE, IT’S THE PRODUCT IN LOW END SEGMENT. LEAVE THIS PRODUCT AT ITS ORIGINAL SPECS UNTIL ROUND 3. THEN UPDATE THE SECOND TIME IN ROUND 7
TIP: The best launching date of the new products is in June-July. But you can expand to Sep-Oct to have higher PFMN and Size of competitors or closer to idea spots. Otherwise products are less competitive than competitors' products.
MARKETING
**PRICE**
Pricing is tricky, use your benchmark prediction to come up with your price equilibrium, a good way to find that number is to place all your prices at the highest allowed by each segment and from there start lowering the price in intervals of $0.50, each time you recalculate;
check your Contribution Margin number, if that number goes up then its a good move, if it goes down then your reduction in price is not a good idea.
*Recommendation for round 1*
* Traditional at $29.5
* Low End at $21 or $20.5
* High End at $39.50
* Performance and Size at $34.50
TIP: Each round reduce the prices by $0.50 to keep competitiveness
Check contribution margin in Production table
Adjust prices if needed to maintain good contribution or profit margin for each product each round.
**PROMO BUDGET & SALES BUDGET**
* Do not ever expend more than $2000 on promotion in any product in any give year. (diminish returns start at $2000).
* Do not spend less than $1000 so you don't lose awareness year over year.
TIP: From Round 4, when some products awareness and accessibility reached 100%, maintain Promo and Sales at $1400
NOTE: A good way to find out what would be the ideal spending in Promo and Sales is to place all your budgets at $2000 and just like in pricing; start lowering you budgets by $100 intervals, check your "Less Promo/Sales" number, if that number goes up; keep going, if it goes down, go back.
The safer strategy is start promo and sales from $1200 - $1400 -$1600 then $2000 in round 4. Then check awareness and accessibility to reduce back to $1400.
**FORECASTING**
From the Market Share page in the Capstone Courier, take your last year’s potential market share and multiply it by the next year demand of each segment.
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**PRODUCTION SCHEDULE**
Production plan is based on Sales forecast calculated in marketing above.
Production plan = ((Sales Forecasted) * (1.15) – Inventory))
We want to have cushion of inventory in case we sell more units than we forecasted.
Add 10%-15% each round to avoid stock out.
Stock out is not good, because we lose potential sales and also lose market share for competitors.
Example:
We forecasted 1600 units for our Traditional product.
We have 100 units of inventory
Production schedule = 1600 * 1.15 = 1840 minus our inventory of 100 = 1740.
**AUTOMATION RATING**
* Traditional, increase its automation by 2 points each round until you reach 8 or10
* Low End, you want to reach 10 as soon as possible (first round you can move to 8 or 9, and make sure you have 10 by the 4nd round)
* High End, increase by 0.5 or 1 point each round, you do not want to go over 6-7
* Performance, increase by 1 or 1.5 each round, until you reach 6-7
* Size, increase by 0.5 or 1 point each round, until you reach 6-7
**WORKFORCE COMPLEMENT**
Always at 100%
**BUY/SELL CAPACITY**
* You want to keep 2nd Shift Production % below 80% to score green on your balance scorecard
* If you have less than 20%; you have to sell capacity
* If you more than 50% you have to buy capacity
A good way to maintain your capacity in check would be to match your capacity with your sales forecast.
*After you make you decisions on production, check how much capital investment you have;*
* If you have capital investment leftover, try to spend it in Automation or Capacity
TIP:
- I highly recommend that you sell some capacity on the first round so you can finance Automation,
- Sell the traditional about 600 of 1800
- Sell the high end about 300 from 900
- Keep performance and size products.
- Buy more capacity in later rounds for all when needed.
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You want to spend as much as possible in human capital, therefore you want to invest the maximum on recruiting and the maximum of training hours.
* Recruiting Spend; $5000 or $3000 in round 1-2-3 then $5000 in later rounds
* Training Hours; 80 Hours or 40 in rounds 1-2-3 then 80 in later rounds
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You want to have between $10,000 and $15,000 in December Cash Position just to make sure you do not enter an Emergency Loan
The safer strategy is to keep $30000 - $50000 to avoid emergency loans in case competitors reduced prices to sell more, causing us to sell less.
We have three sources it from the 3 ways to get money
Issue Stock for $10k or max
Borrow Current Debt for $10k or max
Issue Long Term Debt for $10k or max
Finance its very tricky if you are focusing in Maximizing your scorecard score.
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Important Notes:
- DO NOT GET SCARED IF YOU DO NOT MAKE MONEY ON THE FIRST ROUND.
- COMPANIES RARELY MAKE MONEY ON THE FIRST COUPLE OF YEARS.
- TAKE YOUR FIRST YEARS AS INVESTMENT AND TO LAY DOWN YOUR STRATEGY.
- R&D is the most important decisions, need to update products each round. If we do not update right from round 1. We will need 2 rounds to fix R&D, then will be left behind by top competitors.
- Start right from round 1. Again, round 1 and 2 are most important. if we make mistake from round 1, need round 2 and round 3 to fix, then we can be left behind by competitors. And mistakes in round 1 and 2, will cause us having less investment in Production, then we will have higher cost than competitors, less production capacity, will be very difficult to compete with smaller capacity and higher production cost. Think about it. Then start right from round 1 and round 2.
- Again, start right from round 1 an round 2. If you need support. Send an email to:
mbasim.ferris@gmail.com for Free support for 2 rounds
Good Luck and Success!
You should do before start the Capsim
1 - Log in and read Industry Condition Report (Top menu, report tab, last row)
2 - Read Courier Report of last round (to get Market overview, Pricing, Production and Competitors analysis)
3 - Prepare an Excel file to calculate R&D, Sales Forecast and Production for each round.
You can download free Excel file here - LINK TO ALL EXCEL FILES
or Download Capsim Capstone Excel file here - LINK 2
Or email to: mbahelp2002@gmail.com to get Free support for creating excel file.
Free Personal Support for Rounds 1-2
Email: mbahelp2002@gmail.com
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Update with The Best Guide and Helpful Tips To
Win Capsim 2022 and Capsim 2023
Video Guide
Capsim Round 1 Video guide - Link 1
Capsim 2022 - Best Capsim Guide with Helpful Tips - Free Winning Guide and Tips - Round 1
Capsim Round 1 Video guide - Link 2
CapSim Guide - Capsim 2022 - The Best Capsim Guide with Helpful Capsim Tips - Round 1 Step by Step
Capsim Round 1 Video guide - Link 3
Capsim Guide - Capstone 2022 - Capstone - The Best Capsim Guide with Helpful Capsim Tips - Round 1
Capsim Round 2 Video guide - Link 4
Capsim 2022 - Best Capsim Guide with Helpful Tips - Free Winning Guide and Tips - Round 2
Capsim Round 2 Video guide - Link 5
Capsim Guide 2022 2023 - Free Support for Round 2 - Best Capsim Guide with Helpful Capsim Tips
Capsim Round 2 Video guide - Link 6
CapSim Guide - Capsim 2022 - The Best Capsim Guide with Helpful Capsim Tips Round 2 Step by Step
Capsim Round 3 Video guide - Link 7
Capsim Guide - Capstone 2022 - Capstone - The Best Capsim Guide with Helpful Capsim Tips - Round 3
Capsim Round 6 Video guide - Link 8
Capsim Guide - Capsim 2022 - The Best Capsim Guide with Helpful Capsim Tips - Round 6 Step by Step
Capsim 2019 2022 - Round 1 Free Winning Guide and Tips (Free Support for Round 1 and 2)
The Best Guide and Helpful Tips to Win Capsim 2022 and Capsim 2023
The Best Capsim Guide With Helpful Capsim Tips Per Round
The Best Capsim Guide With Helpful Capsim Tips Per Round (to win Capsim 2022 and Capsim 2023)
The Best Capsim Guide - Link 3
The Best Capsim Guide (Capsim 2022) With Helpful Capsim Tips Per Round
The Best Capsim Guide - Link 4
Capsim Guide 6 - R&D Research and Development - All 8 rounds guides (update Feb 2020 - 2022)
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Capsim – Capstone (Win all 8 rounds – Step by Step guide – Round by round)
The Best Capsim Guide - Link 6
Capsim Guide 2022 - Winning Guides and Tips 22
FREE Excel Spreadsheet for Capsim 2022 and Capsim 2023
FREE ALL VIDEOS GUIDES AND SAMPLE STRATEGIES - LINK
FREE ALL EXCEL FILES AND NEW WINNING GUIDES AND TIPS - LINK
FREE EXCEL FILE FOR CAPSIM CAPSTONE 2022 2023 - LINK 2022
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