Brief presentation of Supply Chain BGame. SupplyChain, is an interactive business challenge where 3 or more companies compete in the same market environment. The companies are vertically integrated and are involved in the whole process from the purchase of raw materials to the sale to their 3 different types of customers. This business challenge has been created to provide a specific analysis on the different aspects of the Supply Chain. The company managers have to face situations and decisions concerning the use of internal recosurses or the external support, and will have to manage the different markets (Make-to-Stock; Make-To-Buy) on the base of the existing lead time. The game has been developed jointly by Festo Academy (Industrial Management School) and Busineesgamesonline.com. It's used since 2006 during as learning framework in the Master program Operations & Supply Chain Management by Festo Academy Italy

1. Industrial Management School
Versione 2013
Supply Chain Game 2013
Festo Academy Italia e BusinessGamesOnLine
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2. Industrial Management School
Business Game SCG – The Concept
SupplyChain, is an interactive business challenge where 3 or more companies
compete in the same market environment.
The companies are vertically integrated and are involved in the whole process
from the purchase of raw materials to the sale to their 3 different types of
customers.
This business challenge has been created to provide a specific analysis on the
different aspects of the Supply Chain.
The company managers have to face situations and decisions concerning the use
of internal recosurses or the external support, and will have to manage the
different markets (Make-to-Stock; Make-To-Buy) on the base of the existing lead
time.
The Supply Chain is a mix of strategic decisions (which market ? How to position
price and which marketing leverage to use ?) and operative actions ( How much
to purchase, invest in logistics, outlets, transports, which price ……).
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3. Industrial Management School
Business Game SCG – The Contest
Si inizia a Febbraio 2013.
All’inizio di ogni mese ci sono informazioni,
decisioni da prendere per raggiungere
risultati di vendita, fatturato, economici.
• Inizio
FEBBRAIO 2013
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4. Industrial Management School
Business Game SCG – The Objectives
The Companies objectives are:
Profit Maximization (which is the global amount of profit generated within the
virtual simulated periods, and is available in the Balance Sheet under “Retained
Earnings”)
Share Value Maximization (which is link to a mix of factor including profit, market
share, assets, relationship between creditors and debtors, stock level).
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5. Industrial Management School
Business Game SCG – The Objectives
Il Super Supply Chain Team è quello
che raggiunge il miglior profitto,
fatturato, quota di mercato alla
chiusura delle attività. • Chiusura
del 2013
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6. Industrial Management School
Business Game SCG – Scenario
Ogni compagnia produce tre prodotti
• HydroBox (box doccia attrezzati)
Realizzati con ceramica e plexiglass
• Ruby (rubinetterie)
Realizzati in metallo
• Sany (sanitari in ceramica)
Realizzati in ceramica
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7. Industrial Management School
Business Game SCG – The Market
I prodotti vengono venduti attraverso 3 canali
• Rete diretta: negozi, installatori, • Grossisti: che richiedono al mercato
grande distribuzione mensilmente delle quantità di prodotto
Si vende attraverso agenti con una L’acquisto viene ripartito tra i fornitori in base a
rete di venditori diretti prezzo, qualità, termini di pagamento
I clienti decidono in base a prezzo,
qualità, immagine-brand
• Appalti: saltuariamente vengono indette da
ospedali, enti pubblici, gare per la fornitura di
un prodotto
Le gare si vincono in base a prezzo e affidabilità
dell’azienda
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8. I
Il Processo: Macrorelazioni
Finitura
APPALTI
Materie prime Locali speciale
MTO
Produzione di Finitura dei
semilavorati prodotti Finitura
Mat 1e standard GROSSISTI
Import
Impianti Mano
Stock Stock
Stock d’Opera Prodotti Finiti
Materie Prime di semilavorati
DIRETTO
Acquisto da terzisti
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9. Vincoli di Processo Lead Time
Industrial Management School
Business Game SCG – The Timeline
The Supply Game is based on a 1-year-length game.
The new managers start their activity at the beginning of Month 2 (February) on the base
of the company structure showing all information at the end of period 1 (January).
The Managers take decisions untill period 12 (December). This is the example of the
trend of the 3 markets (Retail, Wholesalers, Tenders).
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10. Industrial Management School
Business Game SCG – Time & Space Constraints
Several factors and rules limits the action of the companies.
Here is the full list of these elements.
Cash
- A lack of Cash (ratio between cash available and needed) can reduce the investments and
expenditures of the period; can be solved if the bank assist the company with additional loans
Production
-The Semi-finished Goods production is limited by the production capacity (hours), raw materials
availability (units), cash availability (euro).
-The Finished Goods production is limited by the manpower capacity (hours), the Semi-Finished
Goods availability (the company can finish only what coming from stock of the previous period and
50% of what semi-finished in the period).
-Production can be enlarged only at specific stages: Leased machines can be ordered only in Month
1 of the Quarter and are delivered immediately; Owned machines can be ordered in Month 1 and 2
and will be delivered in the Month 1 of the following Quarter.
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11. Industrial Management School
Business Game SCG – Time & Space Constraints (2)
Transport and logistics
- The trasport are NOT limiting sales; but, if the company does not cover transport with internal
capacity the goods is transported by external forwarders at a higher price.
-The finished products can be sold in the retailing shop for as maximum of 60% of the goods
available
- A lack of internal trasport capacity does NOT limit sales; if necessary, the goods is transported by
external forwarders at a higher price.
-The finished products can be sold in the retailing shop for as maximum of 60% of the goods
available (Production of MTB + Stock of MTB + Purchase of Finished Goods – Sales to Wholesalers).
-The 60% of maximum sales could drop if the shops of the company do not have enough space to
contains all the goods available (the shops have a limited space capacity); to avoid this problem the
company may “outsource” logistics to limit problems refered to a lack of space.
Sales
- Sales volumes can be limited by the above mentioned lack of Space and by a lack of HR (staff and
Sales persons) effectiveness; when the effectiveness is lower than 90% the system register a
potential reduction of sales in the retail market.
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12. Industrial Management School
Business Game SCG – Time & Space Constraints (3)
Sales
-In the wholesale market it is possible to sell only the goods finished in the period for the MTB
markets. It is not possible to sell to the wholesalers the goods remained in stock at the end of the
previous Month.
-It is not possible to enter into the Wholesaler market if the offer does not match the quality and
price requested levels.
-In the Tender, the company may participate only if it has completed the delivery of previous tender
won for the same product.
- When a company win a tender, it is obliged to deliver the goods proportionally in the number of
months requested (eg for a tender of 10.000 to be supplied in 2 months, the company cannot
supply more than 5.000 units per month).
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13. Industrial Management School
-In the Supply Chain Game the value used refers to:
-Units
Number of shops, persons, products, raw materials.
-Age
Used to identify machines capacity per type: Leased machines and Owned machines.
-%
The % is used to identify values included between 1 and 100%. It is used for example to determine
the quality of the product, the advertising image, the customer service level, the HR
effectiveness,….)
-Index
It is used to identify the quality level of the companies offered goods.
-In the Tender it is used to determine the best offer (based on price and reliability)
-In the Wholesalers to rank the companies on the base of price, quality and terms of payments.
-In the Retail market to establish the index of attractiveness of the shops (capacity to attract
potential customers) and the index of competitiveness (potential sales level).
-Euro
-Used for all the economic values
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14. Industrial Management School
Business Game SCG – COMPANIES’ MANAGERS AND INFORMATION
The Managers operates in the Supply Chain virtual environment.
The On-line system shows information at video in the CE and 5 functional offices :
•On video - each manager can analyse data for the relevant function, available also under graphic
format.
•In Report - it is possible to print a resume of the information available in the functions in a
compacted form.
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15. I
Business Game - SCG – Roles
Source
OPERATIONS
Production &
Planning
Distribution INFORMAZIONI
SUL
WEB
Marketing
Sales DECISIONI
DEL
RUOLO
General
manager
Finance
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16. Industrial Management School
Business Game SCG – The Company Functions
The On-Line system replicates a virtual environment where the information and decisions are
located in several virtual offices:
• Operation which is divided in Purchase and Production
• Logistics divided in Stock Management and Transport and Outsourcing
• Distribution including Shops and HR Management;
• Finance which controls economic and financial performance
• Marketing is the market sensor and the manager for the two intermediate markets
(Wholesalers / Tenders).
Above all the General Manager office, which monitors the main performance and control the
full set of decisions.
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17. Industrial Management School
Business Game SCG – The Decisions
The company defines every Month the action plan, which includes the decisions for the 5 functions..
The Decisions Form are available in the Board Room
The Companies Actions will lead to the results of the month. The Business Game simulator
calculates the reaction of the market on the base of all the decisions and update the company set of
results.
Each company will receive the feed-back of their actions only after the simulator processing.
To help the company decision making there are 3 Check On Line Calculation that allow the managers
to monitor the cash capacity, the production capacity and the manpower capacity.
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18. Industrial Management School
Business Game SCG – Operation manager
The Operation Managers decide:
• the purchase of Raw Materials (Local and from importers),
• the (emergency) purchase of finished goods (from other suppliers)
• the semi-finished prodution level
• the finishing level for MTB (Make-to-Buy) and MTO (Make-to-Order)
• the production capacity (buying-selling owned machines/ leasing new machines)
• the production investments on “Lean” and Quality Level
AREA OF INTEREST OF THE OPERATION MANAGERS
• politics on quality (based on the type of raw materials, the investments in AT to improve quality
of the produced goods,
• cost control (defining the suppliers of raw materials, the volumes of finished goods bought, the
use of production capacity, the type of machines used)
• responsibility for the time of delivery of the products to the 3 different channels (production of
semi-finished goods, finishing goods for the MTB and MTO)
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19. Industrial Management School
Business Game SCG – Distribution Manager Decision
The Retail-Distribution Managers decide:
•Transports,
• Outsourcing of Logistics (Percentage of Outsourcing allocated to manage the volumes of
production and stocks)
• Location and Dimensioning Retail Shops (Open/Close central and/or out-of-town shops)
• HR size (number of staff and sales persons in the shops, and training)
• Promotions (in the shops per line of product sold to final customers)
• Customer service investments (used to attract and support shops’ cusotmers)
AREA OF INTEREST OF THE DISTRIBUTION MANAGERS
•Stock Levels (Raw materials, Semi-finished Goods, Finished Goods for MTB)
• Cost of Logistics (internal and outsourcing)
• Shop sizing and sales capacity (related to the sales forecasted by the marketing managers)
• Shop assistants effectiveness (internal and outsourcing)
• Customer service level (positioning of the customer support effectiveness)
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20. Industrial Management School
Business Game SCG – Marketing Manager Decision
The Marketing Managers decide:
• Advertising expenditures (on the retail market)
• Price for the retail market (selling price of goods in the shops)
• Wholesalers (volumes offered to the wholesalers, price, terms of payments)
• Tenders (application to the tender and price offered)
AREA OF INTEREST OF THE MARKETING MANAGERS
• Retail market demand and sales (depending on market seasonality and companies offer)
Marketing information (related to market trends, competitive factors of success)
• Retail competitive and attraction levels (based on the positioning on the competitive factors)
• Company image (given by the perception on advertising efforts)
• Wholesalers demand and sales (showing the quantities bought compared to the period
demand)
• Tender and pending contracts/deliveries (containing the tenders ranking and the volume to
deliver for the tenders won)
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21. Industrial Management School
Business Game SCG – Fiannce Manager Decision
The Financial Managers decide:
• Loans level
• Green issues
AREA OF INTEREST OF THE FINANCE MANAGERS
• Profit and Loss (showing the revenues and cost per month and cumulative over the year)
• Balance sheet (including assets, liabilities and net capital, including the profit for the year)
• Cash Flow (showing the cash available and the credits/debts shown per month)
• Economic Ratios and Share Value (displaying all the economic indicators such as Ebit, ROI, ROE,
ROS,……)
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