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Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
Learning Supply Chain Management Playing
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Learning Supply Chain Management Playing

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Brief presentation of Supply Chain BGame. …

Brief presentation of Supply Chain BGame.
SupplyChain, is an interactive business challenge where 3 or more companies compete in the same market environment.
The companies are vertically integrated and are involved in the whole process from the purchase of raw materials to the sale to their 3 different types of customers.

This business challenge has been created to provide a specific analysis on the different aspects of the Supply Chain.
The company managers have to face situations and decisions concerning the use of internal recosurses or the external support, and will have to manage the different markets (Make-to-Stock; Make-To-Buy) on the base of the existing lead time.

The game has been developed jointly by Festo Academy (Industrial Management School) and Busineesgamesonline.com.
It's used since 2006 during as learning framework in the Master program Operations & Supply Chain Management by Festo Academy Italy

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  • 1. Industrial Management School Versione 2013 Supply Chain Game 2013 Festo Academy Italia e BusinessGamesOnLine 1
  • 2. Industrial Management SchoolBusiness Game SCG – The ConceptSupplyChain, is an interactive business challenge where 3 or more companiescompete in the same market environment.The companies are vertically integrated and are involved in the whole processfrom the purchase of raw materials to the sale to their 3 different types ofcustomers.This business challenge has been created to provide a specific analysis on thedifferent aspects of the Supply Chain.The company managers have to face situations and decisions concerning the useof internal recosurses or the external support, and will have to manage thedifferent markets (Make-to-Stock; Make-To-Buy) on the base of the existing leadtime.The Supply Chain is a mix of strategic decisions (which market ? How to positionprice and which marketing leverage to use ?) and operative actions ( How muchto purchase, invest in logistics, outlets, transports, which price ……). 2
  • 3. Industrial Management SchoolBusiness Game SCG – The Contest Si inizia a Febbraio 2013. All’inizio di ogni mese ci sono informazioni, decisioni da prendere per raggiungere risultati di vendita, fatturato, economici. • Inizio FEBBRAIO 2013 3
  • 4. Industrial Management SchoolBusiness Game SCG – The ObjectivesThe Companies objectives are:Profit Maximization (which is the global amount of profit generated within thevirtual simulated periods, and is available in the Balance Sheet under “RetainedEarnings”)Share Value Maximization (which is link to a mix of factor including profit, marketshare, assets, relationship between creditors and debtors, stock level). 4
  • 5. Industrial Management SchoolBusiness Game SCG – The Objectives Il Super Supply Chain Team è quello che raggiunge il miglior profitto, fatturato, quota di mercato alla chiusura delle attività. • Chiusura del 2013 5
  • 6. Industrial Management SchoolBusiness Game SCG – Scenario Ogni compagnia produce tre prodotti • HydroBox (box doccia attrezzati) Realizzati con ceramica e plexiglass • Ruby (rubinetterie) Realizzati in metallo • Sany (sanitari in ceramica) Realizzati in ceramica 6
  • 7. Industrial Management SchoolBusiness Game SCG – The Market I prodotti vengono venduti attraverso 3 canali • Rete diretta: negozi, installatori, • Grossisti: che richiedono al mercato grande distribuzione mensilmente delle quantità di prodotto Si vende attraverso agenti con una L’acquisto viene ripartito tra i fornitori in base a rete di venditori diretti prezzo, qualità, termini di pagamento I clienti decidono in base a prezzo, qualità, immagine-brand • Appalti: saltuariamente vengono indette da ospedali, enti pubblici, gare per la fornitura di un prodotto Le gare si vincono in base a prezzo e affidabilità dell’azienda 7
  • 8. I Il Processo: Macrorelazioni Finitura APPALTIMaterie prime Locali speciale MTO Produzione di Finitura dei semilavorati prodotti FinituraMat 1e standard GROSSISTIImport Impianti Mano Stock Stock Stock d’Opera Prodotti Finiti Materie Prime di semilavorati DIRETTO Acquisto da terzisti 8
  • 9. Vincoli di Processo Lead TimeIndustrial Management SchoolBusiness Game SCG – The Timeline The Supply Game is based on a 1-year-length game. The new managers start their activity at the beginning of Month 2 (February) on the base of the company structure showing all information at the end of period 1 (January). The Managers take decisions untill period 12 (December). This is the example of the trend of the 3 markets (Retail, Wholesalers, Tenders). 9
  • 10. Industrial Management School Business Game SCG – Time & Space ConstraintsSeveral factors and rules limits the action of the companies.Here is the full list of these elements.Cash- A lack of Cash (ratio between cash available and needed) can reduce the investments andexpenditures of the period; can be solved if the bank assist the company with additional loansProduction-The Semi-finished Goods production is limited by the production capacity (hours), raw materialsavailability (units), cash availability (euro).-The Finished Goods production is limited by the manpower capacity (hours), the Semi-FinishedGoods availability (the company can finish only what coming from stock of the previous period and50% of what semi-finished in the period).-Production can be enlarged only at specific stages: Leased machines can be ordered only in Month1 of the Quarter and are delivered immediately; Owned machines can be ordered in Month 1 and 2and will be delivered in the Month 1 of the following Quarter. 10
  • 11. Industrial Management School Business Game SCG – Time & Space Constraints (2)Transport and logistics- The trasport are NOT limiting sales; but, if the company does not cover transport with internalcapacity the goods is transported by external forwarders at a higher price.-The finished products can be sold in the retailing shop for as maximum of 60% of the goodsavailable- A lack of internal trasport capacity does NOT limit sales; if necessary, the goods is transported byexternal forwarders at a higher price.-The finished products can be sold in the retailing shop for as maximum of 60% of the goodsavailable (Production of MTB + Stock of MTB + Purchase of Finished Goods – Sales to Wholesalers).-The 60% of maximum sales could drop if the shops of the company do not have enough space tocontains all the goods available (the shops have a limited space capacity); to avoid this problem thecompany may “outsource” logistics to limit problems refered to a lack of space.Sales- Sales volumes can be limited by the above mentioned lack of Space and by a lack of HR (staff andSales persons) effectiveness; when the effectiveness is lower than 90% the system register apotential reduction of sales in the retail market. 11
  • 12. Industrial Management School Business Game SCG – Time & Space Constraints (3)Sales-In the wholesale market it is possible to sell only the goods finished in the period for the MTBmarkets. It is not possible to sell to the wholesalers the goods remained in stock at the end of theprevious Month.-It is not possible to enter into the Wholesaler market if the offer does not match the quality andprice requested levels.-In the Tender, the company may participate only if it has completed the delivery of previous tenderwon for the same product.- When a company win a tender, it is obliged to deliver the goods proportionally in the number ofmonths requested (eg for a tender of 10.000 to be supplied in 2 months, the company cannotsupply more than 5.000 units per month). 12
  • 13. Industrial Management School-In the Supply Chain Game the value used refers to:-UnitsNumber of shops, persons, products, raw materials.-AgeUsed to identify machines capacity per type: Leased machines and Owned machines.-%The % is used to identify values included between 1 and 100%. It is used for example to determinethe quality of the product, the advertising image, the customer service level, the HReffectiveness,….)-IndexIt is used to identify the quality level of the companies offered goods.-In the Tender it is used to determine the best offer (based on price and reliability)-In the Wholesalers to rank the companies on the base of price, quality and terms of payments.-In the Retail market to establish the index of attractiveness of the shops (capacity to attractpotential customers) and the index of competitiveness (potential sales level).-Euro-Used for all the economic values 13
  • 14. Industrial Management School Business Game SCG – COMPANIES’ MANAGERS AND INFORMATIONThe Managers operates in the Supply Chain virtual environment.The On-line system shows information at video in the CE and 5 functional offices :•On video - each manager can analyse data for the relevant function, available also under graphicformat.•In Report - it is possible to print a resume of the information available in the functions in acompacted form. 14
  • 15. IBusiness Game - SCG – Roles Source OPERATIONS Production & Planning Distribution INFORMAZIONI SUL WEB Marketing Sales DECISIONI DEL RUOLO General manager Finance 15
  • 16. Industrial Management SchoolBusiness Game SCG – The Company Functions The On-Line system replicates a virtual environment where the information and decisions are located in several virtual offices: • Operation which is divided in Purchase and Production • Logistics divided in Stock Management and Transport and Outsourcing • Distribution including Shops and HR Management; • Finance which controls economic and financial performance • Marketing is the market sensor and the manager for the two intermediate markets (Wholesalers / Tenders). Above all the General Manager office, which monitors the main performance and control the full set of decisions. 16
  • 17. Industrial Management School Business Game SCG – The DecisionsThe company defines every Month the action plan, which includes the decisions for the 5 functions..The Decisions Form are available in the Board RoomThe Companies Actions will lead to the results of the month. The Business Game simulatorcalculates the reaction of the market on the base of all the decisions and update the company set ofresults.Each company will receive the feed-back of their actions only after the simulator processing.To help the company decision making there are 3 Check On Line Calculation that allow the managersto monitor the cash capacity, the production capacity and the manpower capacity. 17
  • 18. Industrial Management School Business Game SCG – Operation managerThe Operation Managers decide:• the purchase of Raw Materials (Local and from importers),• the (emergency) purchase of finished goods (from other suppliers)• the semi-finished prodution level• the finishing level for MTB (Make-to-Buy) and MTO (Make-to-Order)• the production capacity (buying-selling owned machines/ leasing new machines)• the production investments on “Lean” and Quality LevelAREA OF INTEREST OF THE OPERATION MANAGERS• politics on quality (based on the type of raw materials, the investments in AT to improve quality of the produced goods,• cost control (defining the suppliers of raw materials, the volumes of finished goods bought, the use of production capacity, the type of machines used)• responsibility for the time of delivery of the products to the 3 different channels (production of semi-finished goods, finishing goods for the MTB and MTO) 18
  • 19. Industrial Management School Business Game SCG – Distribution Manager DecisionThe Retail-Distribution Managers decide:•Transports,• Outsourcing of Logistics (Percentage of Outsourcing allocated to manage the volumes of production and stocks)• Location and Dimensioning Retail Shops (Open/Close central and/or out-of-town shops)• HR size (number of staff and sales persons in the shops, and training)• Promotions (in the shops per line of product sold to final customers)• Customer service investments (used to attract and support shops’ cusotmers)AREA OF INTEREST OF THE DISTRIBUTION MANAGERS•Stock Levels (Raw materials, Semi-finished Goods, Finished Goods for MTB)• Cost of Logistics (internal and outsourcing)• Shop sizing and sales capacity (related to the sales forecasted by the marketing managers)• Shop assistants effectiveness (internal and outsourcing)• Customer service level (positioning of the customer support effectiveness) 19
  • 20. Industrial Management School Business Game SCG – Marketing Manager DecisionThe Marketing Managers decide:• Advertising expenditures (on the retail market)• Price for the retail market (selling price of goods in the shops)• Wholesalers (volumes offered to the wholesalers, price, terms of payments)• Tenders (application to the tender and price offered)AREA OF INTEREST OF THE MARKETING MANAGERS• Retail market demand and sales (depending on market seasonality and companies offer)Marketing information (related to market trends, competitive factors of success)• Retail competitive and attraction levels (based on the positioning on the competitive factors)• Company image (given by the perception on advertising efforts)• Wholesalers demand and sales (showing the quantities bought compared to the period demand)• Tender and pending contracts/deliveries (containing the tenders ranking and the volume to deliver for the tenders won) 20
  • 21. Industrial Management School Business Game SCG – Fiannce Manager DecisionThe Financial Managers decide:• Loans level• Green issuesAREA OF INTEREST OF THE FINANCE MANAGERS• Profit and Loss (showing the revenues and cost per month and cumulative over the year)• Balance sheet (including assets, liabilities and net capital, including the profit for the year)• Cash Flow (showing the cash available and the credits/debts shown per month)• Economic Ratios and Share Value (displaying all the economic indicators such as Ebit, ROI, ROE, ROS,……) 21

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