Term
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Definition
| Cameras, biometric devices, and labs-on-a-chip are all sensors. New sensor businesses are being created today in areans as diverse as genetics, power generation, and satellites. My sensors are incorporated into my customer's products. |
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Term
| True or False: We are in a business-to-business market, not a direct-to-consumer market |
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Definition
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Term
| What is the Capstone Courier? |
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Definition
| an industry report that has key info about your company and your competitors. It shows "last years results" |
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Term
| What is the difference between proformas and annual reports? |
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Definition
| Proformas are projections of the upcoming year; annual reports are the results from the previous year. |
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Term
| What are the four functional areas of your company? |
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Definition
1) Research and Development (R&D)
2) Marketing
3) Production
4) Finance |
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Term
| True or False: Your simulation might include Human Resources, TQM (Total Qualilty Management)/Sustainability, Labor Negotiation and Advanced Marketing modules. |
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Definition
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Term
| What area of the company is responsible for inventing new sensors and re-engineering old ones. |
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Definition
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Term
| What are the three physical characteristics determined by Research and Development? |
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Definition
1) Size (The sensor's dimensions; there is a trend towards miniaturization)
2) Performance (The sensor's speed and sensitivity; there is a trend towards improvement)
3) MTBF (Mean Time Before Failure; the sensor's expected life span, measured in hours) |
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Term
| How do R&D decisions affect the sensors? |
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Definition
Revising a sensor's size and/or performance makes the market view it as a newer product.
Decreasing size, increasing performance and increasing MTBF increases the cost of the material. |
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Term
| True or False: Inventing a new product takes less than one year |
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Definition
| False, it takes atleast a year because of new assembly lines that need to be built |
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Term
| The Marketing Dept. sets these four things for each sensor model. |
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Definition
1) price
2) promotion budget
3) sales budget
4) sales forecast |
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Term
| Sales forecasts are used by which two dept.? |
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Definition
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Term
| How does marketing determine a sales forecast? |
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Definition
| by assessing last year's sales, the segment's growth rate, and the characteristics of the sensor versus its competitors. |
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Term
| For each sensor, the Production Dept. does what three things? |
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Definition
1) Schedules the number of sensors to manufacture based on Marketing's sales forecasts, while also considering unsold units from the previous year (inventory)
2) Changes capacity and automation on existing assembly lines
3) adds assembly lines to manufacture new sensors |
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Term
| True or False: Not every assembly line has a first shift capacity |
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Definition
| False, every assembly line has one |
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Term
| What is first shift capacity? |
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Definition
| the number of units that can be produced each year with a daily eight hour shift. |
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Term
| Adding a second shift for production does what? |
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Definition
| First of all, second shift labor is 50% higher than first shift, but adding a second shift saves the expense of adding capacity and increases the asset utilization of the assembly line. |
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Term
| Describe a line with low automation. |
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Definition
| a line with more workers and higher labor costs |
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Term
| Describe a line with high automation. |
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Definition
| a line with fewer workers and lower labor costs, but increasing automation is expensive itself. |
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Term
| How long does it take purchases of capacity and automation for new and existing sensors to be implemented? |
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Definition
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Term
| True or False: Sale of Capacity is immediate |
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Definition
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Term
| When all of a sensor's capacity is sold what happens? |
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Definition
| it is no longer available for sale; discontinued |
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Term
| What are the three outside sources of money for the Finance Dept.? |
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Definition
1) Stock issues
2) Current Debt (Theser are one year bank notes)
3) Bonds (These are 10 year notes) |
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Term
| Other than raising funds, the Finance Dept. also does what three things? |
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Definition
1) Issues Dividends (Reduces retained earnings and increases leverage)
2) Retires Stock (The company can buy back stock to reduce shares outstanding)
3) Retires Bonds (The company can retire bonds before they come due) |
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Term
| What happens if the company runs out of money? |
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Definition
| The lender of last resort, or Big Al, issues emergency loans |
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Term
| What does Big Al charge on top of the company's current debt rate? |
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Definition
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Term
| At the beginning of the following year, emergency loans are converted to what? And what happens to the stock price? |
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Definition
| They are converted to current debt and it lowers the stock price |
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Term
| Successful managers will: |
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Definition
1) Create a strategy
2) coordinate company activities
3) analyze the market and its competing products |
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Term
| What are the five market segments? |
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Definition
1) High End
2) Low End
3) Performance
4) Size
5) Traditional |
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Term
| At the beginning of the simulation, Traditional and Low End make up more than two thirds of the unit sales. True or False; |
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Definition
| True- but by year five, High End, Performance, and Size will command a greater percentage of the overall market because of growth rates |
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Term
| Customers within each market segment use four things for a buying criteria: |
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Definition
1) price
2) age
3) mtbf (reliability)
4) positioning |
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Term
| What is the Perceptual Map/ |
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Definition
| it plots sensor size and performance characterisitcs as postioning |
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