Our revenue per day improved to 200 $/day. As you continue reading, you will see my strategy unfold, the obstacles that I have faced, and the improvements that I will be developing in the near future., At this point, our team should have reevaluated our decisions, and purchased a new machine for Station 1, in order to get production moving faster to Station 2. Page | 5 1.0 Introduction Littlefield Simulation is a game widely used in management courses that replicates a manufacturer's decision making mechanism. Background Hence, we will increase our capacity levels where demand is forecasted to peak. We had intense debate in the team, whether to add new machines further or not. Initial Strategy : When the simulation first started we made a couple of adjustments and monitored the performance of the factory for the first few days. The demand during the simulation follows a predefined pattern, which is marked by stable low demand, increasing demand, stable high demand and then demand declining sharply. An implication of this study is that tangible stock-flow tasks are as difficult for humans to control as are purely cognitive tasks. When the machine-count at station-1 reached seven, we were hesitant to add further machines despite heavy utilization. Initially, we tried not to spend much money right away with adding new machines because we were earning interest on cash stock. stuffing testing Our initial contract situation was contract-1, which provided a revenue of 175 $/day. However, by that time, we had already lost huge revenues and the damage had been done. Our game simulation has taught me how to manage the human resources (HR), capacity planning, receiving, production, and shipping departments. Very useful for students who will do the simulation for the first time. Demand This was determined by looking at the rate of utilization of the three machines and the number of jobs in the queue waiting for these machines. The company has been functioning well in terms of generating profit and demand so far. One key element that caught my attention was bottleneck issues. ROI=Final Cash-Day 50 Cash-PP&E ExpenditurePP&E Expenditure 1,915,226-97,649-280,000280,000=549% We decided to purchase an additional machine for station 1 because it was $10,000 cheaper, utilization was higher here, and this is where all the orders started. This meant that machine 1 was not able to keep up with the incoming demand and lacked the proper capacity. Barilla Spa: A case on Supply Chain Integration, Toyota Motor Manufacturing Inc - Case Study, Silvio Napoli at Schindler India-HBS Case Study, Forecasting Uncertainty - Obermeyer Case Study, Corporate Social Responsibility and Performance Management.docx, correctional facilities 1 Quality Nursing Writers.docx, correctional systems 1 Quality Nursing Writers.docx, Correctional unit 3 assignment Law homework help.docx, Corporate Governance and Alphabet Management Questions.docx, Corporate Social Responsibility Performance Article Analysis.docx, Corporate strategy Management homework help.docx, Correlating Data in Detection of Worms and Botnet Attacks Discussion.docx. Even if negotiations succeeded, however, a binding treaty could not be ratified or implemented, By clicking accept or continuing to use the site, you agree to the terms outlined in our. 3. This added an overhead expense of approximately 2147 (Additional maintenance costs + Transfer costs). We did many things right to win this simulation. Given the average demand and an order lead time of 4 days we were able to calculate an approximate reorder point. The simulation starts from the day-31, which means 30 days history is available prior to the simulation start. The second Littlefield simulation game focused on lead time and inventory management in an environment with a changing demand (but the long-run average demand will not change over the products 268-day lifetime). 89 The simulation ends on day-309. BLUEs: Littlefields management would like to be able to charge the premium prices that customers would be willing to pay for dramatically shorter lead times. The account includes the decisions we made, the actions we took, and their impact on production and the bottom line. LinkedIn and 3rd parties use essential and non-essential cookies to provide, secure, analyze and improve our Services, and (except on the iOS app) to show you relevant ads (including professional and job ads) on and off LinkedIn. This article summarizes the nine contributions to the symposium on system dynamics. Management Strategy 241 Initially we set the lot size to 3x20, attempting to take advantage of w . Select Accept to consent or Reject to decline non-essential cookies for this use. 24 hours. Markowicz felt that he had a primary responsibility to the company to ensure that the production process runs smoothly at his plant, and after the first half of 2010, it reported profitable operations and net cash inflows from investing activities was positive for the first time in three years and had already reached $250,000 in just the first half of the year. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Check out my presentation for Reorder. Preparation is necessary to have an advantage. Customer orders processed within 1 day make $1000 Customer orders that take over 3 days make no money Between 1 and 3 days revenue is a decreasing linear function. We made no further changes after switching to contract 3. The Niche Cost Leader Strategy puts the main focus on positioning a product at an affordable price while still presenting value to its customers. 1.0 Introduction Littlefield Simulation is a game widely used in management courses that replicates a manufacturer's decision making mechanism. max revenue for unit in Simulation 1. The disadvantage with this approach is that it consumes a lot of time - the time, which runs at a rapid pace of three simulation days per minute. This, combined with the fact that queues were not growing in front of either Station 2 or 3, suggested that Station 1 was the bottleneck in the process. However, observed 100% Utilization at Station #1 with the 17x more queued kits. Clear role definitions avoid confusion and save time. This was determined by looking at the rate of utilization of the three machines and the number of jobs in the queue waiting for these machines. Anita Lal Part 1: Reasoning for Decisions 10000 Summary of articles. 97 Here are our learnings. (Points: 30) |, The aim of this report is to provide an overview of businesses simulations through TOPSIM, a business management game that establishes a link between business management theory and business management in practice., The production capacity in my first 2 quarters was low but only because it was upcoming, The above table showing the total capacity per hour of each machine center was calculated by taking the number of machines and multiplying them by the run time per piece per minute. It was quickly determined that the machine 1 was our bottleneck, as it was the only machine with 100% utilization and excess number of jobs in the queue. (2016, Dec 02). 2 | techwizard | 1,312,368 | 72 hours. We did not change the production quantity. I was mainly responsible for the inventory management. Between days 60 to 70, utilization again hit 100% at Station 1 for a few days but the team decided to delay purchasing a third machine, as lead times remained below one day. Create an account to follow your favorite communities and start taking part in conversations. 5000 7. Overall results and rankings. In the first trial simulation, we were hesitant to add machines. The objective was to maximize cash at the end of the product life-cycle (270 days) by optimizing the process design. The logic behind this decision was to complete as many units as possible without delay. The write-up only covers the second round, played from February 27 through March 3. Littlefiled simulation game 1. Learn about MBA programs, applying to them, and what life is like while in one and afterwards. Expert advisors know that demand will end abruptly on Day 268 and the lab will no longer be necessary. The remaining days included few high demand and then declining demand days. 2, Closer to Day 50, shop floor space constraints are limiting the number of jobs being accepted into the factory. We used to observe revenues. Operations Policies at investment in the machine. In early January 2006, Littlefield Technologies (LT) opened its first and only factory to produce its newly developed Digital Satellite System (DSS) receivers. Rank | Team | Cash Balance ($) | PLEASE DO NOT WAIT UNTIL THE FINAL SECONDS TO MAKE YOUR CHANGES. 6 | mas001 | 472,296 | Though we are pleased with our final results compared to the rest of the class, we see there is still room for improvement. After contract 3 was reached, our simulation flowed very well with the maximum amount of profit for almost the full remainder of the simulation. Figure Course Hero is not sponsored or endorsed by any college or university. On obeserving very low lead-times, we switched to contract-3. You may use it as a guide or sample for Simulation & Gaming. On Fire . Moreover, my research reveals that just by reducing 10% of the current workforce and decreasing the wheel loader system from 10 to 9 would allow us to reach above projected savings. To give students a peak into some of these financial decisions, online simulations are used. Team Contract 15 137 We knew that we needed to increase capacity and the decision was made to purchase another machine 1., BIC is a product that has been extremely successful, offering items such as a low-cost disposable razor, and pens that add value to the user at an affordable price. Very useful for students who will do the si, 100% found this document useful (4 votes), 100% found this document useful, Mark this document as useful, 0% found this document not useful, Mark this document as not useful, Save Littlefield Simulation Report For Later, Do not sell or share my personal information. 25 OPERATIONS & STRATEGIC MANAGEMENT | | November 4th, 2014 The sales revenue decreased from 9 million to 6 million in 12 years and also they incurred operating losses. Littlefield simulation game is an important learning tool for understanding operations principles in production environments, and therefore it is widely used by many leading business schools. Because we hadnt bought a machine at station 1 we were able to buy, the one we really needed at station 3. 49 Unfortunately not, but my only advice is that if you don't know what you're doing, do as little as possible so at least you will stay relatively in the middle Based on our broad, We adjusted focus to our niche market, sold off capacity in the low end and traditional markets, and proceeded to decrease our production going into the next round. This time, they would like your help with further lead time improvements and optimizing their inventory policy. Reddit and its partners use cookies and similar technologies to provide you with a better experience. A detailed data analysis and how the game progressed. | Should have bought earlier, probably around day 55 when the utilization hits 1 and the queue spiked up to 5 |, Our next move was to determine what machines need to be purchased and how many. We made many mistakes, but most importantly we have learned from. In this simulation we decided to take the message of The Goal and apply it as fast as we could. The new product is manufactured using the same process as the product in the assignment Capacity Management at Littlefield Technologies neither the process sequence nor the process time distributions at each tool have changed. Mission . $400 profit. The results and insights generated by these contributions suggest that the greatest need for future research on system dynamics and its contribution to simulation-gaming is demonstration of improvements in learning and performance. Littlefield Technologies Simulation: Batch Sizes Analysis Littlefield Simulation 2: Occupylittlefield With our second littlefield simulation complete, we have reinforced many of the concepts and lessons learned in class. Fortunately, none of other team were close; otherwise, this shortcoming would have mattered. At this point, all capacity and remaining inventory will be useless, and thus have no value. In June we neither hire nor fire because our units of demand are covered. This product also is expected to have a 268-day lifetime. The results support the value of simulations for building operational understanding of accumulations and suggest design considerations that may further increase the effectiveness of such SBLEs. 4 pages. ev While selling capacity was the correct financial decision to combat our emergency loan, we were then left with stock outs in all of our product lines. Current State of the System and Your Assignment Background Just talk to our smart assistant Amy and she'll connect you with the best Littlefield once again has contracted with your operations management consulting team to manage their operations for this new product. We know from the text that Al Beck is running two eight hour shifts so the machines are running for a minimum of 16 hours per day. match. Figure 1: Day 1-50 Demand and Linear Regression Model With full utilization, we were unable to produce enough product to meet our order demands, further increasing the queues at each station and increasing our lead times (as shown)., When the simulation began, we quickly determined that there were three primary inputs to focus on: the forecast demand curve (job arrivals,) machine utilization, and queue size prior to each station. One focus of ours during this simulation was minimizing the cost of inventory orders and stock outs. Capacity Management at Littlefield Technologies Borrowing from the Bank 1. ; and How would you use this in determining your business plan? The case was given one day in advance. This suggested that FIFO was a better strategy for Station 2, so the team switched the priority back at day 75., Before the simulation started, our team created a trend forecast, using the first 50 days of data, showing us that the bottleneck station was at Station 1. Hence, the effective decision-making period is between day-31 to day-309. Our final machine configuration (which was set on Day 67) was 3 machine 1's, 2 machine 2's, and2 machine 3's. Our team finished the simulation in 3rd place, posting $2,234,639 in cash at the end of the game. Purchasing Supplies UNSCOP recommended two solutions. In the last simulation we relied much more heavily on our EOQ model and planned out purchases of machinery with the raise in demand. Overall results and rankings. We had split the roles. Winning Strategy for the /ittlefield Simulation *ame A System Dynamics Approach A Major Qualifying Project /Interactive Qualifying Project Report Submitted to the Faculty . Day 53 Our first decision was to buy a 2nd machine at Station 1. As a result, we continued to struggle with overproduction and avoiding stock outs, but made improvements resulting in less drastic inventory swings in the later. Having excess inventory, we concluded that 20,000 units should be enough considering our quality has not changed and our advertising will not increase the sales dramatically. Littlefield Simulation . After viewing the queues and the capacity utilization at each station and finding all, measures to be relatively low, we decided that we could easily move to contract 3, Except for one night early on in the simulation where we reduced it to contract 2, because we wouldnt be able to monitor the factory for demand spikes, we operated, on contract 3 almost the entire time. Management trusts you will be able to effectively Responsiveness at Littlefield Technologies 9 In the investigation, the results of which are presented in this study, the implications of the growing role of PMCs on the governance of global politics considers the effects of PMCs in both their military roles and their security roles. : Start decision making early. Managements main concern is managing the capacity of the factory in response to the complex demand pattern. Seeing that the machines could process a lot more inventory faster than we expected, we decided to change our reorder points and order quantities, to 6000 units and 24,000 units, respectively. Our team operated and managed the Littlefield Technologies facility over the span of 1268 simulated days. The SlideShare family just got bigger. The decision making for the machines is typically based on the utilization of machines. SOMETIMES THEY TAKE A FEW MINUTES TO BE PROCESSED. at Littlefield Technologies Spring 2007( 201 Littlefield Simulation Report. Machine configuration: At day 97, our team ranked first in the overall standing, and wanted to try to maintain this standing for the rest of the simulation., Finally, on day 150 we try an all in strategy spending $160.000 in 1 machine for station 1 and 2 to increase the capacity and to process jobs only on conditions of contract 3. So, after 360 days, plant will shut down and the remaining inventories and machines will be disposed of. Nevertheless, although we ranked 4th (Exhibit 1: OVERALL TEAM STANDING), we believe we gained a deeper understanding of queuing theory and have obtained invaluable experience from this exercise. We did intuitive analysis initially and came up the strategy at the beginning of the game. However, there will be a 20% increase in demand for the next month of operations as predicted by management, and the production and supply management's problems may come as a problem they can no longer afford. Uploaded by zilikos. Faculty can choose between two settings: a high-tech factory named Littlefield Technologies or a blood testing service named Littlefield Labs. Inventory June In November we hire 7 employees due to the increase of Holiday sales, and in December we hire 6 employees. Global negotiations to reduce greenhouse gas (GHG) emissions have so far failed to produce an agreement. View the full answer. These key areas will be discussed throughout the journal to express my understanding of the experience. Although the process took a while to completely understand during the initial months of the simulation, the team managed to adjust, learn quickly and finish in 7th place with a cash balance of $1,501,794. Now customize the name of a clipboard to store your clips. Doing this simulation review it will show just how to go about making these changes to save money. This proved to be the most beneficial contract as, long as we made sure that we had the machines necessary to accommodate the, The first time our revenues dropped at all, we found that the capacity utilization at, station 2 was much higher than at any of the other stations. 113 However on observing the further utilization problems and the fact that machine at station-1 costed only 25000 $, we decided to add the 8th machine. Choose skilled expert on your subject and get original paper with free plagiarism after how many hours do revenues hit $0 in simulation 1. Good teamwork is the key. We ended up with a total of 6 machines at station one, which allowed two orders to be simultaneously worked on with a batch of 3 x 20.
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