Reports Explained Eng

TOPSIM General Management II Participants Manual / Reports
Contents
1. 2. DECISIONS ...................................................................................................................... 2 PARTICIPANTS REPORTS ................................................................................................ 3 2.1. 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. 2.8. 2.9. Report 2: Market results and Value of Inventory ............................................................. 3 Report 3: Production Lines Environmental Technology ................................................ 6 Report 4: Human Resources and Product Development ............................................... 10 Report 5: Cost Type, Cost Center Accounting ................................................................ 12 Report 6: Cost Accounting (Unit-of-output costing) ...................................................... 14 Report 7: Contribution Margins...................................................................................... 16 Report 8: Profit and Loss Statement and Balance Sheet ................................................ 19 Report 9: Financial Report and Cash Flow ...................................................................... 22 Report 11: Out-of-Line Situations................................................................................... 24
2.10. Report 12: Market Research Report 1 ............................................................................ 26 2.11. Report 14: Business Report on the Industry .................................................................. 27
1. Decisions
You will find information about the current situation of the COPYFIX Inc. below. To get a first over-view, you will be provided with the decisions taken by the previous board for period 0. Moreover, you will be also provided in the following chapter with all necessary reports of COPYFIX Inc. of period 0 to analyze strengths and weaknesses of COPYFIX Inc. This analysis should be the basis of your decision-making process.
COPY I Market 1 3,000 EUR 6.0 mEUR 2.0 mEUR Yes: X Technology COPY I 34 No. of ppl. COPY I 30,000 Units Market 1 100 No. of ppl Ecology 2.5 mEUR Value analysis 1.0 mEUR
SALES
Price (unit) Advertising Corporate Identity Market res. report
Sales
PURCHASING
R&D
Input Materials / Parts
Production Volume Production Lines Investment Disinvestment Maintenance Rationalization
COPY I 40,000 Units Type A ___No. of new Line(s) ___No. of Line(s) 1.5 mEUR / Line 0 mEUR / Line Type B ___No. of new Line(s) ___No. of Line(s) ___ mEUR / Line ___ mEUR / Line 0 mEUR 1.5 mEUR 50 People 0.5 mEUR 40.0 % 0 mEUR 0 mEUR 0 mEUR 50.0 % of income COPY I Market 1 130.0 mEUR 18.0 % 14.0 mEUR Type C ___No. of new Line(s) ___No. of Line(s) ___ mEUR / Line ___ mEUR / Line
PRODUCTION PLANNED FIGURES FINANCING
Process optimization Investments in Environmental Technology Production Staff - recruitment / dismissal (-) Training Non-salary staff costs Short Term-Loans Long-Term Loans Purchase of securities Dividends
Sales revenue Return of equity Cash Flow
2. Participants reports
2.1. Report 2: Market results and Value of Inventory
2007 by TATA Interactive Systems GmbH D-72070 Tbingen MANAGEMENT GAME TOPSIM General Management II TOPSIM Period 0 Date 21.03.2013
Company 1 6 Per Std No. 2 MARKET RESULTS AND VALUE OF INVENTORY
MARKET RESULTS COPY I Company 1 MARKET 1 Price Sales Revenue Market Share Customer Satisfaction Sales Revenue (EUR/Unit) (Units) (mEUR) (%) (Units) (mEUR) 3000 43.000 129,00 20,00 100 43.000 129,00 Industry 3000 215.000 645,00 100,00 100 215.000 645,00
TOTAL
INVENTORY INPUT MATERIALS/PARTS Quantity (Units) Initial invetory +Quantity received from supplier -Quantity used in Production =FINAL INVENTORY INVENTORY FINISHED PRODUCTS Quantity (Units) Initial invetory +Quantity produced -Quantity distributed =FINAL INVENTORY 8000 40.000 43.000 5000 25.000 30.000 40.000 15.000
COPY I Inventory (EUR/Unit) 500 550 527 527 (mEUR) 12,50 16,50 21,09 7,91
COPY I CGM (EUR/Unit) 2020 2052 2046 2046
Value of Inventory (mEUR) 16,16 82,07 88,00 10,23

MARKET RESULTS (Market 1 + Market 2) Price (EUR/Unit) : Company Industry Sales (Units) : Company Industry Revenue (mEUR) : Company Industry Market share (%) BULK BUYING Price (EUR/Unit) Sales (Units) : : Company Company Industry Revenue (mEUR) : Company Industry INVENTORY FOR INPUT MATERIALS/PARTS Initial inventory : Quantity (Units) Inventory values Quantity from supplier : Quantity (Units) Inventory values Closing inventory of previous period Values at the end of the previous period Decision for additional purchases Purchasing values according to the discount schedule in the instructors file Inventory units used in production Weighted average (based on total values in mEUR) The prices in the case of bulk buyers Industry are fixed Sales of own company Total sales of industry Revenue of own company Total revenue of industry : Company Price of own company Average price of industry incl. own company Sales of own company Total sales of industry Sales revenue of own company Total sales revenue of industry Market share as % of the sales for own company
Quantity used in production
Quantity (Units) Inventory values
Notes
The consumption of inventory is influenced by value analysis: Units to be produced / Value analysis index Quantity (Units) Opening inventory + Quantity from supplier - Quantity used in production Invent. value of quantity used in prod. (Euro/Unit) * Volume Closing Inventory
Final inventory
Inventory Values

INVENTORY FOR FINISHED PRODUCTS Initial inventory : Quantity (Units) Inventory values Quantity produced : Quantity (Unit) Cost of Goods Manufactured Inventory value Quantity purchased / Subcontracting (Only for Product 2) : Quantity (Units) Costs (EUR/U) Inventory value Quantity distributed : Quantity (Units) CGM Closing inventory of previous period Values at end of previous period Actual production volume Value is taken from Report 6 "Cost Accounting - (Unit-ofoutput costing). Volume * EUR/Unit Values arise from participants decisions Volume-based price scale from instructors file See above Quantity sold (Sales) Average value from opening inventory or costs and additions on the basis of total values in mEUR for Product 2 including costs for outside production See above
Inventory value
TOPSIM General Management II Participants Manual / Reports 2.2. Report 3: Production Lines Environmental Technology
Company 1 6 Per Std No. 3 PRODUCTION LINES ENVIRONMENTAL TECHNOLOGY
KEY DATA OF PRODUCTION LINES Production LInes Acquisition Period Type A Line No. 1 Type A Line No. 2 Type A Line No. 3 Type A Line No. 4 TOTAL -8 -7 -6 -5
Acquisition Value (mEUR) 12,50 15,00 20,00 20,00 67,50
Remaining Life (Periods) 1 2 3 4
Depreciation (mEUR/Period) 1,25 1,50 2,00 2,00 6,75
Net Book Value (mEUR) 1,25 3,00 6,00 8,00 18,25
Other FC (mEUR) 1,50 1,00 0,50 0,25 3,25
CAPACITIES OF PRODUCTION LINES Production LInes Potential Capacity (Units) Type A Line No. 1 8000 Type A Line No. 2 9000 Type A Line No. 3 11500 Type A Line No. 4 13500 TOTAL 42000
Maintenance (mEUR) 1,5 1,5 1,5 1,5 6,0 (Factor) 0,96 0,96 0,96 0,96
Rationalization (mEUR) 0,0 0,0 0,0 0,0 0,0 (Factor) 1,00 1,00 1,00 1,00
Actual capacity (Units) 7653 8610 11002 12915 40,180
Enviro. Index 83,0 90,0 95,0 98,0 91,5
PRODUCTION STAFF: AVAILABILITY AND PRODUCTIVITY Workforce (No. of people) 6.3% -Newly hired (No. of people) -Loss from absenteeism =AVAILABLE STAFF (No. of people)
850 50 800
Process optimization index *Adaptation *Staff competence index *Motivation index =Productivity index I
1.00 1.00 1.00 1.00 1.00
EXPERIENCE AND PRODUCTIVITY Copy I Cum. prod. prev. per.
Productivity index II
1,00
UTILIZATION RATE OF PRODUCTION LINES Production Production Capacity (Units) (Factor) (Required) Copy I 40,000 1,00 40,000 Utlization (%) 99,6 ENVIRONMENTAL INDEX Environmental Ratings of Production Lines Cumulative Investment in environmental Plants Improvement of environmental Ratios Environmental Damage Indicator for the Company Environmental Tax next Period
Production Staff (Factor) (Required) 50 800 100,0
Allocation in % (Req. Cap.) (Req. Pers) 99,6 100,0
(Index) (mEUR) (Points) (Index) (mEUR)
91,50 1,50 1,00 92,50 1,50

KEY DATA OF PRODUCTION LINES Production lines : Type and identification number of the individual machines. The production lines differ - despite being the same model - with regard to their capacities and the environmental damage they cause. Individual machines may be scrapped Procurement period Acquisition value Remaining life (Periods) : : : E.g. Info - 8 in Period 2 = the production line was purchased 10 periods ago. Original acquisition value of the line Remaining economic life of the production lines in periods. The remaining life of the lines is actually endless, i.e. depreciated lines are available for use in production. (Cf. Line Type A, No. 3, and 4). Depreciation value in the period Acquisition value - cumulative depreciation Other fixed costs of the production lines (E.g. Maintenance and insurance costs as a result of contracts)
Depreciation (mEUR/per.) Net book value (mEUR) Other fixed costs (mEUR)
: : :
CAPACITIES OF PRODUCTION LINES For the production of one Copy I-old, one unit of available production line capacity is required (production of one Copy I-new = 0.9 capacity units). The available production capacity in a period can be influenced by investments, disinvestments, maintenance, rationalization, and overtime of the production staff. Potential capacity (Units) Maintenance : : Maximum available units of capacity with 100% utilization mEUR Factor Rationalization : Expenditure on maintenance (Decision) Availability of production line (0,97 = 97% availability)
cum.mEUR Expenses on rationalization Factor Achieved rationalisation factor
Actual capacity (Units) Environm. Index Note
: :
Potential capacity * Maintenance factor * Rationalization factor Environmental damage index of production lines Fully depreciated production lines are still available for production. The maintenance factor is displayed as a figure that has been rounded up (Internally: 0.956666)

PRODUCTION STAFF: AVAILABILITY AND PRODUCTIVITY Workforce Absenteeism : : Entire workforce in production Given in no. of persons. Influences on absenteeism: non-salary staff costs, lean production projects, environmental index of production lines (end of previous period), cumulated training measures, staff increases (recruitment), and staff reductions (dismissals). The absenteeism cannot be brought to less than 1.5 2 % because of the average rate of paid sick leave. Utilizable staff Process optimization Index : : As affected by total amount of absenteeism Achieved index With the help of lean production projects the work procedures in production can be rationalized, which leads to an increased rate of productivity among the workforce. An achieved index value loses effectiveness by 0.01 points per period. In Period 0 the lean production index is 1.00. Staff competence index : Achieved index Expenses on training production staff increase the competence of employees and leads to an increase in productivity. The expenses for training increase the staff competence index (Period 0 = 1.00). This value is reduced by 0.01 points per period as a result of staff forgetting how to do things. Productivity index I : Lean Production Index * Productivity index
EXPERIENCE AND PRODUCTIVITY Cumul.prod.prev.period. Product 1 and 2 Productivity index II Product 1 and 2 : The cumulative production up to the previous period is the basis for the calculation of Productivity Index II. This index is calculated separately for Product 1 and 2 Achieved index
UTILIZATION RATE OF PRODUCTION LINES Production (Units) Production capacity : : Actual production quantity Required units of capacity in order to produce one unit of the Factor finished product. Required Factor Required units of capacity in order to produce the actual production quantity No. of products that one person produces in a period = normal production capacity of one employee (see data for the periods) * productivity index I * productivity index II
Production staff

Required Staff required
Allocation in %
Req.Cap. Req. pers.
Required / Available in % Required/ Utilizable in %
Utilisation (%) Note
: :
Values above 100.0% mean overtime In the case of overtime of production lines and/or production staff - additional costs equal to 2.5 mEUR are incurred for supervision and operation. For the production staff, there is an additional overtime premium of 25% due to wages and salaries that arises during the overtime period. These costs are listed in the companys cost accounting records.
ENVIRONMENTAL INDEX By investing in environmental technology, such as additional purification plants and filters (end-of-pipe investments), you can reduce the total environmental damage caused by your company. (The environmental index of the production lines can only be improved by replacing the lines.) The environmental damage indicator of a company has a direct influence on the following: sales, production staff absenteeism, corporate image, and the share price of the company. Environmental index of production lines (Index) : Cumulative value from report Decisions Result based on the cumulative investments in environmental plants. You can use the following values as a guideline: 3 mEUR - 1 point improvement / 5 mEUR - 2 points improvement 20 mEUR 3.5 points improvement / 30 mEUR - 6 points improvement Environmental damage indicator for the company (Index) Tax payable to Environmental Authorities next period (mEUR) : Environmental index of production lines + improvement
Cumulative investment in : environmental plants(mEUR) Improvement of : environmental indices (points)
Environmental tax is to be paid when the environmental damage indicator is under 100. Guidelines: Index 98 - Tax 0.5 mEUR / Index 95 - Tax 1.0 mEUR Index 90 - Tax 2.5 mEUR / Index 85 - Tax 5 mEUR
TOPSIM General Management II Participants Manual / Reports 2.3. Report 4: Human Resources and Product Development
Company 1 6 Per Std No. 4 HUMAN RESOURCES AND PRODUCT DEVELOPMENT
STAFF BREAKDOWN BY DEPARTMENT (COST CENTER) Number of people Purchasing Admin. Initial workforce 18 +Hired 1 -Dismissed 0 -Attrition 1 =Final workforce 18 Wages&Salaries (1) (mEUR) 0.54 Turnover/Training (mEUR) 0.01 Non-sal. staff costs (mEUR) 0.22 Pension reserve (mEUR) 0.03 Total staffing costs (mEUR) 0.80 Non-salary staff costs as % of wages and salaries: 40.0 Training (Production) mEUR: 0.5 Motivation of staff (Index): 80 (1) Without overtime costs PRODUCT DEVELOPMENT TECHNOLOGY Period. Cumul. (mEUR) 1.5 8.2 Index 100.0
201 9 0 8 202 5.66 0.11 2.26 0.28 8.31
Production 851 50 0 51 850 25.50 1.13 10.20 1.27 38.10
R&D 34 1 0 1 34 1.50 0.01 0.60 0.07 2.18
Sales 100 9 0 9 100 4.00 0.11 1.60 0.20 5.91
Total 1204 70 0 70 1204 37.19 1.37 14.88 1.86 55.30
Copy I - old
ECOLOGY Period. Cumul. (mEUR) 2.5 5.0
Index 100.0
VALUE ANALYSIS Period. Cumul. Index (mEUR) 1.0 1.0 100.0
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STAFF BREAKDOWN BY DEPARTMENT (COST CENTER) Wages&Salaries Non-sal. staff costs Purchasing and Administration : : : The staff costs are shown here without overtime. The non-salary staff costs have a direct influence on the staff attrition rate, as well as on staff absenteeism in the individual cost centers. The number of employees in the areas of Purchasing and Administration depend on the sales revenue of the company. When sales revenue fluctuates, the required number of employees is automatically adjusted through recruitment and dismissals. Nevertheless, in Administration there are costs independent of (fixed costs administration), in Period 0 of 2.5 mEUR. PRODUCT DEVELOPMENT Technology : Period (mEUR) Cumul. (mEUR) Index No. of people who are employed in the current period in R&D * Salary Cumulative expenditure in mEUR up to and including the current period Appraisal of the products technology in the form of an index. The higher the value, the higher the market share. The cumulative expenses for technology have a direct influence on the level of the index. Participants decision for the period Cumulative expenditure in mEUR including the current period
Ecology
Period (mEUR) Cumul. (mEUR) Index
See technology index
Value analysis Note
: :
See description for ecology The product development expenses of 1.5 mEUR spent on "Technology" corresponds to the R & D cost centers Wages and Salaries expense of 1.50 mEUR.
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TOPSIM General Management II Participants Manual / Reports 2.4. Report 5: Cost Type, Cost Center Accounting
Company 1 6 Per Std No. 5 COST TYPE, COST CENTER ACCOUNTING
COST TYPE ACCOUNTING (mEUR) Cost Types MATERIAL COSTS Input Material Parts Factory Materials TOTAL STAFFING COSTS Wages & Salaries Recruitment/ Dismissals/ Training Non-sal. Staff Costs Pension Reserve DEPRECIATION Buildings Production Lines Environ. Tech. OTHER COSTS Other FC Maint./ Rationalization Process Optimization Environmental Tax Rework / Scrap Storage Costs Adv./ Market Research/ CI Misc. R&D Costs Transport Costs Total Costs COST CENTER ACCOUNTING (mEUR) Cost Types TOTAL STAFFING COSTS Wages & Salaries Recruitment/ Dismissals/ Training Non-sal. Staff Costs Pension Reserve DEPRECIATION Buildings Production Lines Environ. Tech. OTHER COSTS Misc. fixed Costs Maintenance Process Optimization Environmental Tax Storage Costs Adv./ Market Research/ CI Misc. R&D Costs TOTAL COSTS Total
Total 21,09 2,00 37,19 1,38 14,88 1,86 0,25 6,75 0,15 3,25 7,00 0,00 0,00 3,00 1,25 8,10 3,50 1,08 112,71
Overhead
Direct Costs 21,09 2,00 10,04 1,38 4,01 0,50 0,25 6,75 0,15 3,25 7,00 0,00 0,00 0,00 1,25 2,10 0,00 0,00 36,68 27,16 10,86 1,36
3,00 6,00 3,50 1,08 76,04
Purchasing 0,54 0,01 0,22 0,03 0,01
Production 1,50 1,13 0,60 0,08 0,17 6,75 0,15 3,25 6,00 0,00 0,00
Cost Centers R&D 1,50 0,01 0,60 0,07 0,01
Sales 4,00 0,11 1,60 0,20 0,01
Admin 2,50 0,11 1,00 0,13 0,04
10,04 1,38 4,01 0,50 0,25 6,75 0,15 3,25 7,00 0,00 0,00 1,25 2,10 0,00 36,68
0,00
0,00
0,00
0,00 1,00
0,75
0,50 2,10 19,63 2,19 8,52 4,78
1,56
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COST TYPE/CENTER ACCOUNTING Overhead Direct costs Total Staffing Costs : : : The individual costs from the columns of the cost center accounts Costs that one can allocate directly based on production output (of products). The total from the direct costs of the cost centers Production and Administration is stated per product. The direct costs of production (prime costs) are allocated to the products in proportion to the required number of production staff. The required number of administrative staff is calculated per product in relation to the sales revenue, whereas for Product 1 and Product 2 different tables are relevant (cf. Users manual, point 3.5.1 for Product 1 and scenario information from the relevant period for Product 2). The fixed administration costs are deducted for Product 1 (2.5 mEUR). Staff costs and Wages & Salaries are shown here where appropriate. Overtime gives rise to personnel costs and step fixed costs. In case of overtime: available staff costs Result of overtime: additional premium on overtime only for required staff (not no. of people on the payroll, not utilizable staff) No. of persons (see report production lines) * salaries/ wages (without non-salary staff costs and pension reserve) * overtime in % + supplement for overtime in % Misc. fixed costs: : = other fixed costs of the production lines + step fixed costs overtime (e.g. 2.50 mEUR) + other fixed costs, given in the scenarios. + costs for using the Planning Models, which appear under the account called Administration if the participant used them on his computer. Maintenance Rework Other Costs R&D Note : : : : Not only for the production lines (decision), but also for Administration (see period data) Dependent on non-salary staff costs, technology and value analysis. Ecology and Value Analysis Staff costs/ Wages and Salaries (Production): If these are > 0, then a portion of the production staff is not being fully utilized leading to costs for absenteeism. (cf. Report Production Plants Environment ). These costs are presented here as overhead costs.
Personnel Costs
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TOPSIM General Management II Participants Manual / Reports 2.5. Report 6: Cost Accounting (Unit-of-output costing)
Company 1 6 Per Std No.6 COST ACCOUNTING (Unit-of-output costing)
COST ACCOUNTING (mEUR) Copy I Input Materials/ Parts +Factory Materials =Direct Material Costs +Indirect Material Costs (Cost Center Purchasing) =Material Costs Direct Production Costs (Wages & Salaries +Non-Salary Staff Costs + Pension Reserve +Rework/Scrap) +Production Overhead (Cost Center Production) =Total Production Costs =Cost of Goods Manufactured (CGM) +R&D Direct Costs (Ecology+Value Analysis) + Overhead (Cost Center R&D) +Sales Direct Costs (Adv. + Transport) + Overhead (Cost Center Sales) +Admin. Direct Costs (Wages & Salaries Admin-FC Administration+Non Salary Staff Costs +Pension Reserve) + Overhead (Cost Center Admin) =Cost of Production COST ACCOUNTING (EUR/Unit) Copy I Input Materials/ Parts +Factory Materials =Direct Material Costs +Indirect Material Costs (Cost Center Purchasing) =Material Costs Direct Production Costs (Wages & Salaries +Non-Salary Staff Costs + Pension Reserve +Rework/Scrap) +Production Overhead (Cost Center Production) =Total Production Costs =Cost of Goods Manufactured (CGM) +R&D Direct Costs (Ecology+Value Analysis) + Overhead (Cost Center R&D) +Sales Direct Costs (Adv. + Transport) + Overhead (Cost Center Sales) +Admin. Direct Costs (Wages & Salaries Admin-FC Administration+Non Salary Staff Costs +Pension Reserve) + Overhead (Cost Center Admin) =Cost of Production 527 50 577 39 616 945 491 1.463 2.052 88 55 177 213 114 119 2.818 21,09 2,00 23,09 1,56 24,65 37,80 19,63 57,42 82,07 3,50 2,19 7,07 8,52 4,58 4,78 112,71
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COST ACCOUNTING (EUR/Unit) Overhead costs : EUR/Unit CGM : :
Costs that are traced to a cost center (see previous report.) The costs in Euro/Unit refer to the units which were manufactured in the period (Period 0: 40000 units). The finished products of Copy I enter the finished goods inventory at the value of the cost of goods manufactured (CGM).
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TOPSIM General Management II Participants Manual / Reports 2.6. Report 7: Contribution Margins
2007 by TATA Interactive Systems GmbH D-72070 Tbingen MANAGEMENT GAME TOPSIM General Management II No.7 CONTRIBUTION MARGINS Contribution margins (mEUR) SALES REVENUE - Direct material costs - Direct production costs - Transport costs =CONTRIBUTION MARGIN I - Material FC - Production FC - Sales FC (product) - Admin FC (product) =CONTRIBUTION MARGIN II - R&D FC (product) =CONTRIBUTION MARGIN III - FC (company) Research Sales Administration =CONTRIBUTION MARGIN IV Contribution margins (EUR/Unit) PRICE - Direct material costs - Direct production costs - Transport costs =CONTRIBUTION MARGIN I - Material FC - Production FC - Sales FC (product) - Admin FC (product) =CONTRIBUTION MARGIN II - R&D FC (product) =CONTRIBUTION MARGIN III - FC (company) Research Sales Administration =CONTRIBUTION MARGIN IV Market 1 129,00 25,00 39,68 1,08 63,24 1,82 21,49 6,00 4,58 29,35 3,50 25,85 Bulk Copy I Bids TOPSIM Company 1 6 Per Std Period 0 Date 21.03.2013
Market 2
Total 129,00 25,00 39,68 1,08 63,24 1,82 21,49 6,00 4,58 29,35 3,50 25,85 2,19 8,52 4,78 10,36
Market 1 3000 581 923 25 1471 42 500 140 106 683 81 601
Bulk
Copy I Bids
Market 2
Total 3000 581 923 25 1471 42 500 140 106 683 81 601 51 198 111 241
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CONTRIBUTION MARGINS DM IM DPC PO CGM FC Note
: : : : : : :
Direct Material Indirect Material Direct Production Costs Production Overhead Cost of Goods Manufactured Fixed Costs The Contribution Margins in mEUR divided by the volume sold are the basis for the contribution margins per Unit.
Explanatory notes on the calculation of contribution margins using the example Period 0, Company 1
Start Period 0 Opening Inventory CGM CGM (EUR/Unit) 2020 2020 2020 2020 x x x x : : 8000 Units 2020 EUR/Unit EUR/Unit = = = = 602.57 58.98 812.85 545.60 2020.00 x x x x x Units 8000 8000 8000 8000 8000 = = = = = mEUR 4.82 0.47 6.50 34.36 16.16
Distribution of CGM Start Per. 0 29.83 2.92 40.24 27.01 % % % % DM IM DPC PO
Addition from production

Period 0 : 40000
EUR/Unit Direct Material Indirect Material Direct Production Costs Production Overhead (DM) (IM) (DPC) (PO) : : : : 577.00 39.00 945.00 491.00 2052.00 x x x x x
Units 40000 40000 40000 40000 40000 = = = = =
mEUR 23.08 1.56 37.80 19.64 82.08
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Inventory value Interim inventory Period 0
mEUR DM IM DPC PO : : : : 4.82 0.47 6.50 4.36 + + + + 23.08 1.56 37.80 19.64 = = = =
mEUR 27.90 2.03 44.30 24.00 98.24 / / / / /
Units 48000 48000 48000 48000 48000 = = = = =
EUR/Unit 581.26 42.33 922.97 500.10 2046.67
Sales = Quantity distributed = 430000 units Example DM for Contribution Costing = 43000 x 581.26 EUR = 24.99 mEUR
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TOPSIM General Management II Participants Manual / Reports 2.7. Report 8: Profit and Loss Statement and Balance Sheet
Company 1 6 Per Std No.8 PROFIT AND LOSS STATEMENT AND BALANCE SHEET (mEUR) 129,00 -5,93 23,09 37,19 1,38 1,86 14,88 7,15 27,17 10,36 COST OF SALES ACCOUNTING SALES REVENUE - Cost of Products sold -Sales Costs -R&D - Administration Costs Other Expenses / Income = Operating Income
TOTAL COST ACCOUNTING SALES REVENUE Increase/Decrease in finished Goods Inventory - Material Expenses - Personal Costs - Wages & Salaries - Hiring/Dismissal Costs - Pension Reserve - Misc. Personnel Costs - Depreciation Other Expenses / Income = Operating Income NET INCOME
(mEUR) 129,00 88,00 15,60 5,69 9,35 0,00 10,36 (mEUR) 0,00 2,00 8,36 0,00 0,00 0,00 3,76 4,60 (mEUR) 4,60 0,00 2,30 2,30 2,30 0,00
+ Investment Income - Interest Expenses = Income from regular Business Operations Extraordinary Income Extraordinary Expenses Extraordinary Profit / Loss - Income Taxes = Net Income / Loss for Period APPROPRIATION OF NET INCOME Net Income / Loss for Period Loss carried forward from previous Period - Transfer into retained Earnings = Balance Sheet Profit (Dividend) / Loss - Dividends paid = Loss / Income carried forward BALANCE SHEET IN mEUR ASSETS FIXED ASSETS Land and Buildings Machinery and Equipment
Period 27,35 7,75 19,60
Prev. Period 33,00 8,00 25,00
Current Assets Input Materials Finished Goods Accounts receivable Securities Cash Balance Sheet Total Period 95
44,11 7,91 10,23 25,80 0,00 0,17 71,46
47,00 12,50 16,16 17,84 0,00 0,50 80,00 Prev. Period
LIABILITIES OWNERS EQUITY Share Capital Capital Reserves Retained Earnings Loss carried forward Net Income / Loss for Period Pension Reserve Due to Banks Long Term Loans >5 Periods Short Term Loans < 1 Period Overdraft Loans Balance Sheet Total
Period 32,60 15,00 2,50 10,50 0,00 4,60 13,86 25,00 0,00 25,00 0,00 71,46 Period 0,35
Prev. Period 28,00 15,00 2,50 7,50 0,00 3,00 12,00 40,00 0,00 40,00 0,00 80,00 Prev. Period
RATING
Modif. of interest rate
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OPERATING INCOME Note
The accounting legislation passed on December 19, 1985 allows for alternative methods of determining the companys operating result. These are the: Total cost (type of short-term results) accounting Cost of sales (type of short-term results) accounting
Total Cost Accounting
Both procedures lead to the same results with the selected valuations in the game. TCA, left side of P/L S The sales revenue is first adjusted by the inventory change (increase/decrease) (= Total operating performance of the period) and then the total costs of the period are deducted (within the allocation of cost center accounting). CSA, right side of P/L S The costs of products sold in the period are compared with the sales revenue for the period. The costs of products sold include the total administration and research and sales/distribution costs for the period apart from the production costs of the sold product volume. If the volume sold does not correspond to the volume manufactured in the period, then the production costs of the sales revenue is calculated according to the weighted average value of inventory.
Cost of Sales Accounting
NET INCOME Extraordinary income
Extraordinary expenses Subcontracting of Product 2
: :
Proceeds from sales of scrap from disinvested machinery, special income from Product 1-old at the launch of Product 1-new if a buyer is found for the product to be scrapped (scrapped), other input from instructor. Depreciation of net book value of machines to be scrapped, Depreciation of Product 1-old to be scrapped (CGM), (other input from instructor). is shown as a change in the inventory: In the model it is assumed that the products are bought at the start of the period, (just as other purchases are made), stored in the warehouse, and then withdrawn from the warehouse due to Sales/Distribution during the period.
APPROPRIATION OF NET INCOME Note : The net income for the year of the period is entered under equity in the balance sheet for the current period. The profit for the year of the period can be used: To cover a loss carried forward from the previous year, For retained earnings, and To distribute dividends. Retained earnings : The amount of retained earnings is calculated as follows: First, the net income offsets a possible loss carried over from the previous year. The planned dividends for the period and possible dividend claims from the previous period are deducted from the remainder. The amount remaining after the deduction of the loss carried forward and dividends is allocated to retained earnings
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BALANCE SHEET Note
The balance sheet takes into account the new regulations concerning balance sheet layout prescribed to companies required by law to disclose their business figures, and applies to the terms of paragraph 266 of the GCC (German Commercial Code). There have been changes especially on the liabilities side. From now on all the items of the Owners Equity are part of a group Owners Equity, including the net income for the year, as well as the accumulated losses brought forward. Share capital corresponds to the capital stock, i.e. the nominal value of the issued share capital These arise as a result of a premium when new shares are issued; up until now this item was part of the legal reserves. In TOPSIM - General Management. This item is not controllable. Result from not distributing all of the after-tax net income of the previous period. Losses from the previous periods do not cut into reserves immediately, but can be carried forward for up to 5 periods, and can be absorbed with surpluses that occur later. The result of the current business year is reported in an undistributed and comprehensive form in the closing balance sheet. The appropriation of the net income (cf. additional note on Profit/Loss Statement) the distribution of reserves, or the absorption of losses carried forward are not treated in the accounts until the new business year.
OWNERS EQUITY Note
Share capital
Capital reserves
Retained earnings Loss carried forward
: :
Net income
21
TOPSIM General Management II Participants Manual / Reports 2.8. Report 9: Financial Report and Cash Flow
Company 1 6 Per Std No.9 FINANCIAL REPORT AND CASH FLOW CURRENT PERIOD (mEUR) 0,50 103,20 17,84 0,00 0,00 0,00 0,00 25,00 0,00 146,04 18,50 0,00 53,44 27,17 40,00 2,00 0,00 0,00 1,50 3,76 0,00 0,00 146,37 0,17 4,60 7,15 1,86 4,59 5,93 -7,96 16,17 -1,50 -1,50 0,00 -0,00 0,00 -15,00 -15,00 -0,33
FINANCIAL REPORT INITIAL CASH BALANCE CASH IN Cash in from Sales, current Period + Cash in from Sales, previous Period +Disposal of Investments + Investment Income + Extraordinary Income / Share Capital increase + Disinvestment Production Lines + Short- and long-term Loans + Overdraft Loans = Total Cash In CASH OUT Input Materials Expenses + Subcontracting + Personnel Costs (- Pension Reserve) + Other Expenses + Short-term and Overdraft Loans repaid + Intl. paid on Loans + Purchase of Production Lines + Purchase of Securities + Purchase of environmental Plants + Income Taxes + Dividends paid (previous Period) + Extraordinary Expenses = Total Cash Out Final Cash Balance CASH FLOW STATEMENT Net Income / Net Loss for the Period Depreciation on fixed Assets Increase in Pension Reserve Change in current Assets Increase (-) / Decrease (+) Inventories of Input Materials Increase (-) / Decrease (+) Inventories of Finished Goods Increase (-) / Decrease (+) Accounts receivable A. Operating Cash Flow Investment in fixed Assets B. Cash Flow form Investment Activity Capital Increase Payment Dividends form previous Period Increase (+) / Decrease (-) of Securities Increase (+) / Decrease (-) of Liabilities to Banks C. Cash Flow from financing Activities D. Change in Cash Position (A+B+C)
PLAN FOR NEXT PERIOD
16,17 -1,50
-15,00 -0,33
22

FINANCIAL REPORT Loans
Loan amount required for the period: Operating cash balance+Total cash in-Total cash out-Minumum closing balance The net income for a period is the difference between income and expenses that have been recorded on an accrued basis. It is evaluated in the profit and loss statement and is supposed to reflect the performance of a period. The cash flow of a period is defined as: the after-tax net income + depreciation + reserves It is an indicator of the so-called "Internal financing" of the company. The depreciation here also includes depreciation for scrapped production lines, which are recorded under the item extraordinary expenses in the upper part of the report.
Cash Flow
23
TOPSIM General Management II Participants Manual / Reports 2.9. Report 11: Out-of-Line Situations
2007 by TATA Interactive Systems GmbH D-72070 Tbingen MANAGEMENT GAME TOPSIM General Management II No.11 OUT OF LINE SITUATION PLANNING VALUES Revenue (mEUR) Copy I Market 1 Per. 0 130,0 129,0 -1,0 -0,8 1,0 Per. 1 Per. 2 Per. 3 Per. 4 Per. 5 Per. 6 TOPSIM Company 1 6 Per Std Period 0 Date 21.03.2013
130,0 129,0 -1,0 -0,8 1,0 18,0 16,4 -1,6 -8,8 -0,3 14,0 16,2 2,2 15,5 -1,0 4,6 4,6 -0,3 -0,3 4,5 4,5
Planned Actual Diff Diff (%) Planning Quality Planned Actual Diff. Diff. (%) Planning Quality
RETURN ON EQUITY (%) 18,0 16,4 -1,6 -8,8 -0,3
CASH FLOW (mEUR) Planned Actual Diff. Diff. (%) Planning Quality NET INCOME Net Income Cum. Net Income Planning Quality for Period Cum. Planning Quality SUCCESS VALUE Earn. Cap. Value Cum. Earn. Cap. Value (mEUR) (mEUR) 14,0 16,2 2,2 15,5 -1,0
4,6 4,6 -0,3 -0,3
(mEUR) (mEUR)
4,5 4,5
24

NET INCOME Planning quality
The planning quality index demonstrates the extent to which the companys actual performance differs from its plan. Possible ratings on the index range between 1.0 and +1.0: Sum of the individual planning quality ratings for the period Cumulative planning quality rating from previous periods + Planning quality of period
Planning quality for the period Cumulative planning quality SUCCESS VALUE Earnings value for the period (mEUR)
: :
Cum. earnings value (mEUR)
The earning value of the period is composed of : Net income for the period (mEUR) + (Planning quality of the period * Value of a planning quality point in mEUR) The value of a planning quality point is determined by the simulation facilitator. Cumulative earnings value from the previous periods + Earnings value for the period
25
TOPSIM General Management II Participants Manual / Reports 2.10. Report 12: Market Research Report 1
2007 by TATA Interactive Systems GmbH D-72070 Tbingen MANAGEMENT GAME TOPSIM General Management II No.12 MARKET RESEARCH REPORT I MARKET RESEARCH REPORT I
Copy I Market 1
TOPSIM Company 1 6 Per Std Period 0 Date 21.03.2013
COMPANY 1 2 3 4 5 Avg/ Tot COMPANY 1 2 3 4 5
PRICE EUR 3000 3000 3000 3000 3000 3000 PROD. STAFF 850 850 850 850 850
ADVERTISING mEUR 6.00 6.00 6.00 6.00 6.00 30.00 PROD.1 O/R/N O O O O O % 20.0 20.0 20.0 20.0 20.0 100.0
SALES Units 43000 43000 43000 43000 43000 215000 % 20.0 20.0 20.0 20.0 20.0 100.0
REVENUE mEUR 129.0 129.0 129.0 129.0 129.0 645.0 % 20.0 20.0 20.0 20.0 20.0 100.0
PRODUCT INDICES Technol 100.0 100.0 100.0 100.0 100.0 100.0 Ecology 100.0 100.0 100.0 100.0 100.0 100.0
OTHER DATA
PRODUCTION LINES Type A Type B Type C 4 4 4 4 4 0 0 0 0 0 0 0 0 0 0
R&D Expenses (mEUR) 5.0 5.0 5.0 5.0 5.0
SALES/DIST (no. of people) 100 100 100 100 100
OTHER DATA R&D Expenses
are the sum of the costs for technology, ecology and value analysis in the current period for all the products in this market
26
TOPSIM General Management II Participants Manual / Reports 2.11. Report 14: Business Report on the Industry
Company 1 6 Per Std No.14 BUSINESS REPORT ON THE INDUSTRY Company 1 129,00 88,00 15,60 5,69 9,35 0,00 10,36 -2,00 8,36 0,00 3,76 4,60 Company 1 27,35 7,75 19,60 44,11 7,91 10,23 25,80 0,00 0,17 71,46 32,60 15,00 2,50 10,50 0,00 4,60 13,86 25,00 0,00 25,00 0,00 71,46 Company 1 8,0 16,4 0,0 96,3 48,2 100,0 Company 2 129,00 88,00 15,60 5,69 9,35 0,00 10,36 -2,00 8,36 0,00 3,76 4,60 Company 2 27,35 7,75 19,60 44,11 7,91 10,23 25,80 0,00 0,17 71,46 32,60 15,00 2,50 10,50 0,00 4,60 13,86 25,00 0,00 25,00 0,00 71,46 Company 2 8,0 16,4 0,0 96,3 48,2 100,0 Company 3 129,00 88,00 15,60 5,69 9,35 0,00 10,36 -2,00 8,36 0,00 3,76 4,60 Company 3 27,35 7,75 19,60 44,11 7,91 10,23 25,80 0,00 0,17 71,46 32,60 15,00 2,50 10,50 0,00 4,60 13,86 25,00 0,00 25,00 0,00 71,46 Company 3 8,0 16,4 0,0 96,3 48,2 100,0 Company 4 129,00 88,00 15,60 5,69 9,35 0,00 10,36 -2,00 8,36 0,00 3,76 4,60 Company 4
PROFIT AND LOSS STATEMENT (mEUR) Sales Revenue - Cost of Products sold - Sales Costs -R&D - Administration Costs - Other Expenses / Income = Operating Income Financial Result = Income Reg. Business Operations Extraordinary Profit / Loss - Income Taxes = Net Income / Loss for Period BALANCE SHEET (mEUR) Assets Fixed Assets Land and Buildings Machinery and Equipment Current Assets Input Materials Finished Goods Accounts receivable Securities Cash Balance Sheet Total Liabilities Owners Equity Share Capital Capital Reserves Retained Earnings Loss carried forward Net Income / Loss for Period Pension Reserve Due to Banks Long-term Loans > 5 Periods Short-term Loans < 1 Period Overdraft Loans Balance Sheet Total COMPANY RATIOS Return on Sales Return on Equity Payout Dividends Share Price Value of Company Corporate Image
Company 5 129,00 88,00 15,60 5,69 9,35 0,00 10,36 -2,00 8,36 0,00 3,76 4,60 Company 5 27,35 7,75 19,60 44,11 7,91 10,23 25,80 0,00 0,17 71,46 32,60 15,00 2,50 10,50 0,00 4,60 13,86 25,00 0,00 25,00 0,00 71,46 Company 5 8,0 16,4 0,0 96,3 48,2 100,0
27,35 7,75 19,60 44,11 7,91 10,23 25,80 0,00 0,17 71,46 32,60 15,00 2,50 10,50 0,00 4,60 13,86 25,00 0,00 25,00 0,00 71,46 Company 4 8,0 16,4 0,0 96,3 48,2 100,0
(%) (%) (mEUR) (EUR/Share) (mEUR) (Index)
27

Rating Customer Satisfaction Shareholder Earnings Shareholder Earnings (Index) (Index) (mEUR) (% since P0) 95 100 0,0 0,0 95 100 0,0 0,0 95 100 0,0 0,0 95 100 0,0 0,0 95 100 0,0 0,0
COMPANY RATIOS Share price
Value of company Company image index
: :
Shareholder Earnings (mEUR) Shareholder Earnings (%P0)
: :
The influences are: Owners equity, end of previous period Net income Earned dividends of period Accumulated dividends since Period 0 Return on sales Accumulated marketing mix (Advertising/ CI/ Distribution/ Sales/ Product Development) No. of products and markets Image factor Ranking of companies according to sales revenue Planning quality Environmental index of production Debt-equity ratio (Liabilities/Balance sheet total) Share price*50000 shares Influences: Expenses for CI Indices of product attributes Environmental damage index of production lines cumulative dividends+change in value of company Change compared to starting value Period 0 (%)
28

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TOPSIM General Management II Participants Manual / Reports

TOPSIM General Management II Participants Manual / Reports

Price (unit) Advertising Corporate Identity Market res. report

Input Materials / Parts

Production Volume Production Lines Investment Disinvestment Maintenance Rationalization

PRODUCTION PLANNED FIGURES FINANCING

Sales revenue Return of equity Cash Flow

TOPSIM General Management II Participants Manual / Reports

Company 1 6 Per Std No. 2 MARKET RESULTS AND VALUE OF INVENTORY

COPY I CGM (EUR/Unit) 2020 2052 2046 2046

Value of Inventory (mEUR) 16,16 82,07 88,00 10,23

TOPSIM General Management II Participants Manual / Reports

Quantity used in production

Quantity (Units) Inventory values

TOPSIM General Management II Participants Manual / Reports

Company 1 6 Per Std No. 3 PRODUCTION LINES ENVIRONMENTAL TECHNOLOGY

Acquisition Value (mEUR) 12,50 15,00 20,00 20,00 67,50

Remaining Life (Periods) 1 2 3 4

Depreciation (mEUR/Period) 1,25 1,50 2,00 2,00 6,75

Net Book Value (mEUR) 1,25 3,00 6,00 8,00 18,25

Other FC (mEUR) 1,50 1,00 0,50 0,25 3,25

Actual capacity (Units) 7653 8610 11002 12915 40,180

Enviro. Index 83,0 90,0 95,0 98,0 91,5

1.00 1.00 1.00 1.00 1.00

EXPERIENCE AND PRODUCTIVITY Copy I Cum. prod. prev. per.

Production Staff (Factor) (Required) 50 800 100,0

Allocation in % (Req. Cap.) (Req. Pers) 99,6 100,0

(Index) (mEUR) (Points) (Index) (mEUR)

91,50 1,50 1,00 92,50 1,50

TOPSIM General Management II Participants Manual / Reports

cum.mEUR Expenses on rationalization Factor Achieved rationalisation factor

Actual capacity (Units) Environm. Index Note

TOPSIM General Management II Participants Manual / Reports

TOPSIM General Management II Participants Manual / Reports

Req.Cap. Req. pers.

Required / Available in % Required/ Utilizable in %

Utilisation (%) Note

Cumulative investment in : environmental plants(mEUR) Improvement of : environmental indices (points)

Company 1 6 Per Std No. 4 HUMAN RESOURCES AND PRODUCT DEVELOPMENT

201 9 0 8 202 5.66 0.11 2.26 0.28 8.31

Production 851 50 0 51 850 25.50 1.13 10.20 1.27 38.10

R&D 34 1 0 1 34 1.50 0.01 0.60 0.07 2.18

Sales 100 9 0 9 100 4.00 0.11 1.60 0.20 5.91

Total 1204 70 0 70 1204 37.19 1.37 14.88 1.86 55.30

ECOLOGY Period. Cumul. (mEUR) 2.5 5.0

VALUE ANALYSIS Period. Cumul. Index (mEUR) 1.0 1.0 100.0

TOPSIM General Management II Participants Manual / Reports

Period (mEUR) Cumul. (mEUR) Index

See technology index

Value analysis Note

Company 1 6 Per Std No. 5 COST TYPE, COST CENTER ACCOUNTING

3,00 6,00 3,50 1,08 76,04

Purchasing 0,54 0,01 0,22 0,03 0,01

Cost Centers R&D 1,50 0,01 0,60 0,07 0,01

Sales 4,00 0,11 1,60 0,20 0,01

Admin 2,50 0,11 1,00 0,13 0,04

0,50 2,10 19,63 2,19 8,52 4,78

TOPSIM General Management II Participants Manual / Reports

Company 1 6 Per Std No.6 COST ACCOUNTING (Unit-of-output costing)

TOPSIM General Management II Participants Manual / Reports