A detailed data analysis and how the game progressed. Operations Policies at Littlefield PMC personnel may be directly involved in combatant roles when the contract provides for the delivery of security services. . With the daily average demand and SD we could control the Littlefield Labs system capacity. [pic] |BOSTON Group Report 1: Capacity Management The following is an account of our Littlefield Technologies simulation game. 15000 Initial Strategy Definition We had split the roles. My reasoning for using this strategy is that my products will be extremely useful and beneficial to its consumers; products like BIC and McDonalds are in extreme demand with the situation of todays economy. The United Nations has served as a platform for discussion about this conflict and has been used as a mediator between the opposing groups as a peaceful resolution to the issues is sought. Leena Alex But we knew that this time we needed to act faster than before to acquire new machinery. B6016 Managing Business Operations Initially we set the lot size to 3x20, attempting to take advantage of what we had learned from the goal about reducing the. To ensure we are focused and accomplish these set goals, the following guidelines Running head: Capacity Management As this is a short life-cycle product, managers expect that demand during the 268 day period will grow as customers discover the product, eventually level out, and then decline. After a few months of detailed scrutiny of the numbers, we were able to make pricing decisions more quickly by using the breakeven change in volume to set the new price. Littlefiled simulation game 1. This lasted us through the whole simulation with only a slight dip in revenue during maximum demand. Consequently, we lost revenues when the demand neared its peak. 5000 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. An implication of this study is that tangible stock-flow tasks are as difficult for humans to control as are purely cognitive tasks. However, the difference in choosing between the priorities seemed minimal and is probably only important during times of high demand. However, to reduce holding costs and ordering costs t [ As our contracts changed, our lead times changed the problem of inventory reorder points ] After we signed to contract 3, we made few changes to the factory. Day 50 We applied this innovative concept to complement the theoretical sessions, A growing body of research indicates that effective science-policy interactions demand novel approaches, especially in policy domains with long time horizons like climate change. 73 Since production volume variance indicates whether the materials and production management staff is able to produce goods in accordance with long-range planned expectations, we, Elijah Heart Center is experiencing a cash flow problem, to help improve this dilemma, the goal is to save the Hospital $900,000 in the first year. This means that the last 50 days of the simulation period cannot be influenced through any decision-making either. Andres was forced to import product from French division as he ran out of capacity several times due to new machines performing inadequately. The goal of the symposium is to investigate how research in system dynamics is contributing to simulation-gaming, and how the more general field of simulation-gaming is influencing work in system dynamics. We had significant advantage because we had taken decisions e.g. Initially we set the lot size to 3x20, attempting to take advantage of w . 209 This weeks key learning areas have been eye opening and worthwhile. I have made a few errors but think I stabilized. Initially we set the lot size to 320, attempting to take advantage of what we had learned from the goal about reducing the lead-time and WIP. At the end of this products lifetime, demand Lead Time Management at Littlefield Labs http://quick.responsive.net/lt/toronto3/entry.html 9 121 25 In addition, the data clearly showedprovided noted that the demand was going to follow an increasing trend for the initial 150 days at least. Faculty can choose between two settings: a high-tech factory named Littlefield Technologies or a blood testing service named Littlefield Labs. The company has been functioning well in terms of generating profit and demand so far. 1 For the purpose of this report, we have divided the simulation into seven stages after day 50, explicating the major areas of strategically significant decisions that were made and their resulting first increased our inventory reorder point to 10,800 units and changed the order quantity amount to 1800 units. Station 2 never required another machine throughout the, simulation. We did many things right to win this simulation. Registered address: Louki Akrita, 23 Bellapais Court, Flat/Office 46 1100, Nicosia, Cyprus Despite this, not many teams were aware about what had to be done exactly - which I think hurt their chances. Clear role definitions avoid confusion and save time. The Littlefield Technologies management group hired Team A consulting firm to help analyze and improve the operational efficiency of their Digital Satellite Systems receivers manufacturing facility. Management would like to increase revenue and decrease costs. They have purchased the recommended machinery, but are not entirely pleased with the lead time performance. Here is a discussion of the pros and cons regarding the decisions we made. Initially we set the lot size to 3x20, attempting to take advantage of what we had learned from the goal about reducing the lead-time and WIP. ROI=Final Cash-Day 50 Cash-PP&E ExpenditurePP&E Expenditure 1,915,226-97,649-280,000280,000=549% Tan Kok Wei The simulation ends on day-309. One focus of ours during this simulation was minimizing the cost of inventory orders and stock outs. Overall I felt the Littlefield simulation to be an interesting cost leadership exercise with strong focus on the operations management. 5 Because we hadnt bought a machine at station 1 we were able to buy, the one we really needed at station 3. Littlefield Simulation Solutions and analytical decisons made. OPERATIONS & STRATEGIC MANAGEMENT | | By whitelisting SlideShare on your ad-blocker, you are supporting our community of content creators. In addition, we will research and tour Darigold Inc. to evaluate their operations, providing analysis and recommended changes where we deem applicable. On observing the 100% machine utilization at any given station for few consecutive days, we immediately added the new machines. Very useful for students who will do the simulation for the first time. Upon the preliminary meeting with Littlefield management, Team A were presented with all pertinent data from the first 50 days of operations within the facility in order for the firm to analyze and develop an operational strategy to increase Littlefields throughput and ultimately profits. Our game simulation has taught me how to manage the human resources (HR), capacity planning, receiving, production, and shipping departments. As shown by the figure above, total revenues generally followed the same trend as demand. According to the, If I can play this game again, the most part of plan can same as before. Dont The only expense we thought of was interest expense, which was only 10% per year. After all of our other purchases, utilization capacity and queuing at station. What new decisions will you make regarding production levels and pricing for your Widget facility? stuffing testing The product lifetime of many high-tech electronic products is short, and the DSS receiver is no exception. 1 Littlefield Labs Simulation Professor: Ioannis (Yannis) Bellos Course: MBA 638 School of Business Information Systems . Here are our learnings. Raw material costs are fixed, therefore the only way to improve the facilitys financial performance without changing contracts is to reduce ordering and holding costs. The objective was to maximize cash at the end of the product life-cycle (270 days) by optimizing the process design. This is the breakdown of one such simulation., Unrestricted cash and Cash Equivalents /Cash Operation Expenses No. 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. Activate your 30 day free trialto continue reading. 0 Purchasing Supplies Littlefield Simulation Solutions and analytical decisons made. Using the analysis, demand for the 268 days of production was forecasted, and our strategy set accordingly., After the initial observations of demand for littlefield labs (day 52), one of the first steps we took was to identify the bottleneck in the production chain. Other solution was to set the EOQ and the reorder points close to the initial simulation starting levels. The study suggests that developing a simple ILE is essential in raising the interest of a wide audience involved in sustainable development policy making and after stakeholders gain confidence in the benefit of the ILE, it becomes easier to integrate simulation exercises into planning processes at national, regional and local levels. On day 50 of the simulation, my team, 1teamsf, decided to buy a second machine to sustain our $1,000 revenue per day and met our quoted lead time for producing and shipping receivers. performance of the factory for the first few days. | 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. To say that we had fully understood which scheduling to choose and when, will be wrong. LITTLEFIELD SIMULATION REPORT To be able to give right decision and be successful in the simulation, we tried to understand the rules in a right way and analyzed yearly forecasts to provide necessary products to the customers on time (lead time) for maximizing our profit. 33 While focusing on immediate goals keeping long term goals in mind is also important. Our goal is to function as a reciprocal interdependent team, using each members varied skills and time to complete tasks both well and on time. Littlefields management would like to be able to charge the premium prices that customers would be willing to pay for dramatically shorter lead times. 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. 177 (Exhibit 2: Average time per batch of each station). Littlefield Simulation Report: Team A This laboratory uses the same process as the lab encountered in your prior assignment, Capacity Management at Littlefield Labsneither the process sequence nor the process time distributions have changed. 7. Eventually, demand should begin to decline at a roughly linear rate. The decision for the customer contract is between three options. Littlefield Technologies is an online factory management simulator program produced since 1997 by Responsive Learning Technologies for college students to use while taking business management courses. We were afraid to go to the 5 by 12 because of the large setup time at stations one. I was mainly responsible for the inventory . Purpose. Team us: [emailprotected]. One colleague was responsible for customer order management and the other for the capacity management. max revenue for unit in Simulation 1. 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. Current State of the System and Your Assignment Summary of articles. Introduction 54 | station 1 machine count | 2 | We did intuitive analysis initially and came up the strategy at the beginning of the game. Anteaus Rezba Good teamwork is the key. ANSWER : Littlefield 1. We knew that we needed to increase capacity and the decision was made to purchase another machine 1., In order for our strategy to be effective, our optimal timing for planned investments will be when demand is predicted to be high. Furthermore, the analysis will be used to provide a basic understanding of how changes in staffing and productivity impact profit and loss., When working as a health care administrator, one must make important financial decisions that can make or break the future of the organization. We will work to the best of our abilities on the Littlefield simulation and will work as a team to make agreed upon manufacturing changes as often as is deemed needed. 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. Although we had the choice to produce as much as 30,000 units, we felt as though we did not have sufficient money to increase production. Instant access to millions of ebooks, audiobooks, magazines, podcasts and more. However, it was because we did not create a safety margin for production which came from our over estimating our carrying costs. Anyone here experienced the wrath of Littlefield Simulation in their operations management course? The goal of our company was to make money, so we needed to upgrade to contract 3 as quickly as possible. We were continuously communicating, finding bottlenecks and removing them. Figure 1: Day 1-50 Demand and Linear Regression Model First, 50 days of daily average demand was 15.50 and SD was 4.12. Aneel Gautam Click here to review the details. Chu Kar Hwa, Leonard After some discussion we came to the conclusion that the cost of buying another machine would far outweigh the small loss of revenue of each of these occurrences. We will calculate costs associated with running a production facility. 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. 5. We did many things right to win this simulation. Operations Policies at Littlefield requirements? All rights reserved. Customer demand continues to be random, but the expected daily demand will not change during the labs life span. Based on initial management analyses, customer demand for this new product is expected to be random, but the average demand will be level over the products 268-day lifetime. 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. 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. However, by that time, we had already lost huge revenues and the damage had been done. Please make sure to read our rules and wiki before posting. 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. As expected, the contracts with lesser lead-times fetch the company higher revenues per day. The lab began operations with a raw materials inventory of 160 kits and $1,000,000 cash. The logic behind this decision was to complete as many units as possible without delay. Just talk to our smart assistant Amy and she'll connect you with the best Littlefield Simulation is about running a factory for 360 days with the goal to maximize the cash position at end of this duration. Littlefield 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. 20 Contract Pricing We found our calculations to be performing reasonable well during the initial phases of the simulation. (2016, Dec 02). During the simulation start, we calculated our own economic order quantity (EOQ) and reorder points (ROP). Figure The difference between remaining at $750/order vs. $1250/order could have been as high as 1.3 million dollars over the life of the game (218 days) therefore the cost of new machines was small compared to the benefit and the overall revenue potential made it imperative to get to the lowest lead times possible. for EOP and ROP. Littlefield once again has contracted with your operations management consulting team to manage their operations for this new product. Our cash position got weaker and we then slipped to position 7 from position 2. 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. Later however, as the demand increased, it became increasingly complex and difficult for me to predict the annual demands needed for correct EOQ and ROP calculations. Managements main concern is managing the capacity of the factory in response to the complex demand pattern. At s the end of this lifetime, demand will end abruptly and factory operations will be terminated.
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