CapSim Foundations-Lessons You Wish Your Professor Had Given

To make sense of CapSim and what you'll be required to do, you first must understand the concept of what is going on inside the simulator. This video will give you the background on what's happening and what role you will fill in the game.

In almost every class that uses CapSim, there is an assignment where you need to pick one of the six basic strategies for how you'll play the simulator. In this video, I describe what each of the six strategies are and how they differ from each other. I also lean on which ones are more my style than the others.

In this video, you'll learn about the positioning of the low tech and high tech markets. You'll also learn how to start the simulator for the best product positioning. MTBFs are explained and the importance of a drift sheet is emphasized. I do have a drift sheet available on my website.

Here we learn the importance of promotion and marketing as well as not pushing the limit on how many we think we'll actually sell. On this page, you'll want to put down a more conservative number than what you think you'll actually sell because it affects the Finances page. If you put a very rosey number, the Finances page will think you'll sell like gangbusters and it will manipulate what it says you should expect at the end of the round. Be realistic on the Marketing page and it will help you forecast your financial needs moving into the next round.

Your productions page is jam packed with tons of data that will make or break you. Mess up here and you won't be able to produce enough/any product. You can make your production process cheaper by automating your production as well as cut down on the amount of Overtime your workers will charge by increasing capacity. Make sure to focus both correctly so that you get the best results for your company and profit. Here, you'll put in the actual amount you think you'll sell and can go a little over if you want to push your company a little. Make too much and you'll likely to get an emergency loan, so make sure you watch the Forecasting section, too!

If you can't forecast properly, you'll end up with an emergency loan, and worse yet, you probably won't pass the class. I spent a lot of time on this video alone because it is one of the most valuable parts in succeeding in this simulator. It is heavily math based, so sharpen your pencil and get a new eraser! And try not to get frustrated...

Many professors pass over this section because they don't understand its impact. There is a palpable impact by increasing your Accounts Receivable days, lowering Accounts Payable days, and adjusting your staffing levels. I share all the secrets here.

Whether you've started Round 1, are about to start Round 7, or have received an emergency loan, you really need to have the DL on the Finances page. Understanding the numbers here will make or break your simulator because it is money that greases the wheels of industry. I offer practical advice for financing the improvements in your production, keeping you from getting emergency loans and getting out of them if you fell into one. We also discuss how to take care of stock and prepare to pay dividends.

Probably 90% of students who come to me for help come because they got an emergency loan and are looking for a way out of it and to prevent from getting another one. I discuss how people get emergency loans and how they climb up out of them afterward. Definitely watch the Marketing, Production, and Finances videos in this series as additional resources to keep you on the winning side of this simulator.