CapSim Demonstration Notes

1. Save MS Excel file from “Getting Started” or work directly online

2. Login to the Excel file using login created during registration

a. File, Save (different save options) i. Save “directly to the website” ii. Save “All Team Decisions” to save everything

b. Undo i. “To last save” means: ii. “To start of round” means:

c. Decisions: i. R&D

1. Performance: Should be within the fine cut, to appeal to customers, should be near the ideal spot. 2. Size: Should be within the fine cut, to appeal to customers, should be near the ideal spot. a. Positioning Reminder: Just beyond fine cut, appeal drops 1%; ½ way between fine and rough cut appeal drops 50%; Just inside rough cut, appeal drops 99%. b. When you revise, you can see where the new and old products are on the Perceptual Map. c. Time for revisions: The length of time required to revise a sensor (change positioning) varies. Slight revisions complete in 3-4 months; more extensive changes are most of a year. Reported under Revision Date. When you have more than one product under revision, the overall revision time lengthens. Pay attention to this…you probably do not want to lock up a product for more than a year because they won’t sell while under revision. d. Cost of Revisions: R&D revision costs are driven by the time it takes for them to complete—a 6-month project costs $500K a 12-month project costs $1 mill. Any revisions costing > $1 mill will spill over a year to complete. e. Material Costs for Revisions: Early in the Sim (due to technology costs), a product near the trailing edge cots $1.00; the leading edge a $10.00 f. Automation’s effect on revision time: Products with production lines that have higher automation require more time to