2018-19 Manufacturing Extended Slides en

ERP Simulation Game
Academic Year 2018-2019
MANUFACTURING
EXTENDED
A Serious Game Powered by ERPsim

Compatible with SAP™ ERP ECC and Business Suite on HANA
for Learning
Pierre-Majorique LÉGER Robert PELLERIN
Enterprise Resource Jacques ROBERT Bret WAGNER
Planning Concepts Gilbert BABIN
Lab ERPsim
Serious
enterprise
© Léger et
Academic
games to learnVersionGame.
Manufacturing
systems
2018-2019Advanced Last Update : August 24th 2018
and ERPsim is a proprietary technology developed by researchers at HEC Montréal,
al. 2004-2018. Commercial version
business analytics
© Léger de
École Polytechnique et al. 2004-2014.
Montréal andERPsim is a proprietary
Western Michigan technology developed
Univ. Visit by researchers
erpsim.hec.ca at HECinformation.
for more Montréal, powered by
École Polytechnique de Montréal and Western Michigan Univ. Visit erpsim.hec.ca for more information.
Welcome to Your New Job!
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Lab ERPsim
Serious Academic
games to learnVersion 2018-2019 Manufacturing Game. Advanced
enterprise systems and ERPsim is a proprietary
2
Commercial version
© Léger et al. 2004-2018. technology
© Léger developed
et al. 2004-2014. bya researchers
ERPsim is at HEC Montréal,
proprietary technology developed by researchers at HEC Montréal, powered by
business analytics de Montréal and Western
École Polytechnique Michigan
École Univ. de
Polytechnique Visit erpsim.hec.ca
Montréal forMichigan
and Western more information.
Univ. Visit erpsim.hec.ca for more information.
Make-to-Stock Muesli Manufacturing
Lab ERPsim
Serious Academic
3
Commercial version
© Léger developed
École Univ. de
Initial Market (Manufacturing Introduction)
–– Starting Inventory for some products
DC 12
–– €0 Bank Loan
€ 220 000
• €0 interest charges
DC12 –– €16 000 000 in Machinery and Equipment
DC 14
Grocery chains • 16,000 unitsNEW
€ 130 000
/ day in capacity
DC 10 –– 8 hours setup time
NEW
€ 90 000 –– Fixed Costs (paid every 5 days)
• Direct labor: €10 000
• Factory overhead: €7 500
12 Stores 59 Stores • S,123
G Stores
& A: €20 000 194 Stores
• Depreciation (Building): €1 250
• Depreciation (Equipment): €33 333
Lab ERPsim
Serious Academic
4
Commercial version
© Léger developed
École Univ. de
New Customer Markets
Total
Market
€ 440 000 To service new customers, we need
to be able to scale our production
up to meet the increased demand.
An €8 000 000 investment,
DC 12
€ 220 000
financed by bank loan, has been
DC 14
made in Machinery and Equipment
NEW
DC 10 NEW
€ 130 000 to increase your production
€ 90 000
capacity.
12 Stores 59 Stores 123 Stores 194 Stores
Lab ERPsim
Serious Academic
5
Commercial version
© Léger developed
École Univ. de
Impact of New Customer Markets
More customers implies: 1 ERP
MUE
SLI
PRO
DUC
TION
per
per servi
porting
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(30g
)
ERP
MUE
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per
per servin
portiog
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n (30g)
2
ERP
MUE
ERP
MUE
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per
per servi
porting
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(30g
)
ERP
MUE
SLI
PROD
UCTI
ON
per
per servin
portiog
/
n (30g)
SLI
PRO
DUC
TION
All
–– More Sales Staff

ERP
ing nat
MUE
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for ridiural
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DUC MU bess All ing nat
for ridiural
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NDIESTO RERRE
SHOW LA
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SUGGE
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50
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SERVIN
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MUSL
SUGGI
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ing nat (30g
for rid ural ) ENLA
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porting ESL t TEXTU
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(30g
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MUSL
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porting
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(30g
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ing nat
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• Increases the S, G & A

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for rid ural
the ien
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DUC
TION per
per servi MU bests
All porting ESL t
on / I
ing nat (30g
for rid ural ) ENLA
the ien
AGRARGED
MU bests
NDIESTO
per SHOW
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per servi
porting ESL t TEXTU
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on /
(30g
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) TEXTU
ENLA SLI
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NDIESTO DUC
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TEXTU
MON
TRERRE
LA
TEXTU
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50 per
per servi
All
ing nat
MUSL
SUGGI
0g
CEREA
porting
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(30g
)
for rid ural
the ien
MU bests
ESTED
LS
/ CÉRÉA
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50 NG LES
ESL t
I
MUSL
SUGGI
0g
CEREA
ESTED
ENLA
AGRARGED
NDIESTO
LS
/ CÉRÉA
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POUR
NG LES TEXTU
MON
TRERRE
LA
All TEXTU
ing nat
RE
for rid ural

the ien
MU bests
All ESL t
I
ing nat
for rid ural
the ien
ENLA
50
0g
AGRARGED
MU bests
NDIESTO
SHOW MUSL
POUR
SUGGI
ESL t TEXTU
MON CEREA
ESTED
I TRERRE
LA
ERP
MUE
LS
/ CÉRÉA
SERVI
TEXTU NG LES
ENLA SLI
AGRARGED RE PRO
NDIESTO DUC
SHOW TION
POUR
TEXTU
MON
TRERRE
All
LA
ing nat
for rid ural
TEXTU
the ien
RE
50 per
per servi
MU bests
MUSL
SUGGI
0g
CEREA
ESTED
porting
on /
(30g
) ENLA
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I
LS AGRARGED
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–– New Bank Loan

MUSL
SUGGI
0g
CEREA
ESTED
LS
/ CÉRÉA
SERVI
NG LES
All
ing nat
for rid ural
the ien
MU bests
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I
ENLA
AGRARGED
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SHOW
POUR
TEXTU
MON
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50
MUSL
SUGGI
0g
CEREA
ESTED
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NG LES
• Adds interests charges to the fixed costs

–– Purchase of Machinery and Equipment
• Increases the equipment depreciation costs
• Increases Overhead Costs Before the €8 000 000 investment. After the €8 000 000 investment.
Capacity : 16,000 units/day Capacity : 24,000 units/day
• More Factory workers Increases Direct Labor
costs
Lab ERPsim
Serious Academic
6
Commercial version
© Léger developed
École Univ. de
Total
Current Market (Manufacturing Extended)

Market
€ 440 000
–– No Starting Inventory
DC 12
–– New €8 000 000 Bank Loan to finance
€ 220 000
production capacity improvements
–– €24 000 000 in Machinery and Equipment
DC 14
NEW after investment
DC 10 NEW
€ 130 000
• 24,000 units / day in capacity
€ 90 000 –– 8 hours setup time
–– Fixed Costs (paid every 5 days)
12 Stores 59 Stores 123 Stores 194 Stores
• Direct labor: €20 000
• Factory overhead: €15 000
DC10 DC12 DC14
• S, G & A: €40 000
• Depreciation (Building): €1 250
• Depreciation (Equipment): €50 000
Lab ERPsim
Serious Academic
7
Commercial version
© Léger developed
École Univ. de
Distribution Channels
DC10 DC12 DC14

Hypermarkets Grocery stores Independent grocers
–– Only buy large boxes (1kg) –– Buy all sizes of boxes (1kg and 500g) –– Only buy small boxes (500g)
–– Orders 3 products at a time –– Orders 4 products at a time –– Orders 1 product at a time
–– Payment delay of 20 days –– Payment delay of 10 to 20 days –– Payment delay of 1 to 20 days
–– Very High sensitivity to price –– High sensitivity to price –– Medium sensitivity to price
–– Low sensitivity to advertising –– Medium sensitivity to advertising –– High sensitivity to advertising
Approximate Market Size Approximate Market Size Approximate Market Size

–– €90 000 per team per week (5 days) –– €220 000 per team per week (5 days) –– €130 000 per team per week (5 days)
Lab ERPsim
Serious Academic
8
Commercial version
© Léger developed
École Univ. de
Number of Stores by Geographical Area
Schleswig
Holstein
West North
Mecklenbourg
Hamburg Western
Lower Saxony
NEW Hypermarkets 3 NEW Hypermarkets 2 Bremen
North
Grocery stores 17 Grocery stores 19 Berlin
NEW Independent grocers 40 NEW Independent grocers 45 Saxony
Anhalt
Brandenbourg
North
Rhine-Westphalia
West Saxony
South Total
Thuringia
Hesse
NEW Hypermarkets 7 NEW Hypermarkets 12 Rhineland
Palatinate
Grocery stores 23 Grocery stores 59 Saarland
South
NEW Independent grocers 38 NEW Independent grocers 123
Baden Bavaria
Wurttemberg
Lab ERPsim
Serious Academic
9
Commercial version
© Léger developed
École Univ. de
Financial Situation and Cash Management
Investment of Accumulation of Initial situation
€1 500 000 during the accounts receivables
first 5 days period. and Cash. –– €2 000 000 in Bank Cash Account
–– Loan of €8 000 000
–– Fixed costs paid every 5 days
–– Sales revenue received after
1 to 20 days
Payment of
accounts payables.
Lab ERPsim
Serious Academic
10
Commercial version
© Léger developed
École Univ. de
Determining Company Value
𝑌𝑌𝑌𝑌𝑌𝑌𝑌𝑌𝑌𝑌𝑌𝑌 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃
𝐶𝐶𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 =
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅
𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉
Where Setup = Setup Time Reduction Investment
This formula is adapted from the standard Dividend Discount Model (DDM) for stock valuation, assuming no growth
This formula is adapted from the standard Dividend Discount Model (DDM)
and 100% dividend payout.
for stock valuation, assuming no growth and 100% dividend payout.
Lab ERPsim
Serious Academic
11
Commercial version
© Léger developed
École Univ. de
Company Valuation Example
Company Situation 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 − 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆
;𝑁𝑁𝑁𝑁. 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 ∗ 12 + 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 =
Current profit: €125 000 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 + 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅
Setup time reduction: €-75 000
125 000 − (−75 000)
Number of rounds played: 1 ;1 ∗ 12 + (−75 000)
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 𝑒𝑒 =
Market Risk Rate: 7% 7% + 6%
Company Credit Rating: BBB 2 325 000

𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑉𝑉 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 =
Company Risk Rate*: 6% 13%
* linked to BBB credit rating, see next slide
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑉𝑉 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 = €17 884 615
Lab ERPsim
Serious Academic
12
Commercial version
© Léger developed
École Univ. de
Determining Company Discount Rate
LOOKUP TABLE
Debt Loading Rating Risk Differential
𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 + 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 € - AAA+ +3,00%
𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 7% + 𝑓𝑓 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 € -1 000 000
€ -2 000 000
AA+
AA
+3,75%
+4,00%
€ -3 000 000 AA- +4,25%
€ -4 000 000 A+ +4,75%
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 𝑓𝑓 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 € -5 000 000 A +5,00%
€ -6 000 000 A- +5,25%
Positive Values Negative Values € -7 000 000 BBB+ +5,75%
€ -8 000 000 BBB +6,00%
€ -9 000 000 BBB- +6,25%
€ -10 000 000 BB+ +6,75%
𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 = 𝐶𝐶𝐶𝐶𝐶𝐶𝐶 + 𝐴𝐴𝐴𝐴𝐴𝐴. 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 + (𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 + 𝐴𝐴𝐴𝐴𝐴𝐴. 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃) € -11 000 000 BB +7,00%
€ -12 000 000 BB- +7,25%
€ -13 000 000 B+ +7,75%
€ -14 000 000 B +8,00%
€ -15 000 000 B- +8,25%
–– The market risk rate is based on historical stock market average € -16 000 000
€ -17 000 000
CCC+
CCC
+9,00%
+10,00%
returns of 7%. € -18 000 000 CCC- +11,00%
€ -19 000 000 CC +12,00%
–– Company credit ratings are determined using the lookup table. € -20 000 000 C +15,00%
Lab ERPsim
Serious Academic
13
Commercial version
© Léger developed
École Univ. de
Company Valuation Example
Company Situation 𝐷𝐷𝑒𝑒𝑒𝑒𝑒𝑒 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 = 𝐶𝐶𝐶𝐶𝐶𝐶𝐶 + 𝐴𝐴𝐴𝐴𝐴𝐴. 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 + (𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 + 𝐴𝐴𝐴𝐴𝐴𝐴. 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃)
𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 = 1 500 000 + 450 000 + −11 000 000 + −350 000
𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 = −8 400 000
–– Current profit: €125 000
–– Cash: €1 500 000 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 𝑓𝑓(𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿)
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 𝑓𝑓(−8 400 000)
–– Accounts Receivable: €450 000
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 𝐵𝐵𝐵𝐵𝐵𝐵
–– Bank Loan: €-10 000 000 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 𝑓𝑓(𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅)
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 𝑓𝑓 𝐵𝐵𝐵𝐵𝐵𝐵
–– Accounts Payable: €-350 000 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 6%
–– Number of rounds played: 1 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 − 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆

O𝑁𝑁𝑁𝑁. 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 ∗ 12 + 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 =
𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 + 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅
–– Market Risk Rate 7% 125 000 − (−75 000)O

1 ∗ 12 + (−75 000)
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑉𝑉𝑉𝑉 𝑙𝑙 =
7% + 6%
2 325 000
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑉𝑉 =
13%
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑉𝑉 𝑎𝑎 = €17 884 615
Lab ERPsim
Serious Academic
14
Commercial version
© Léger developed
École Univ. de
Impact of Financial Decisions
Positive Values Negative Values
Impact
Investment/Account (Cash + Acc.Receivable) + (Loan + Acc. Payable) Credit Rating Profit Weekly Costs
Buy Equipment - 0 0 0 - 0 +
Setup Time Reduction - 0 0 0 - - 0
Pay Back Bank Loan - 0 + 0 0 0 -
–– Keep in mind that all investment decisions typically involve large up front payments or commitments of resources
that generate future operational returns (increase efficiency, decrease costs, increase revenue).
–– Note that since credit ratings are tiered based on debt levels, the impact on credit rating is dependant on the size of
the investment; e.g. a €3M purchase of machinery will reduce your credit rating by three levels.
Lab ERPsim
Serious Academic
15
Commercial version
© Léger developed
École Univ. de
Impact of Operational Activities
Positive Values Negative Values
Impact
Activity/Account (Cash + Acc.Receivable) + (Loan + Acc. Payable) Credit Rating Profit Weekly Costs
Send Purchase Order 0 0 0 0 0 0 0
Goods Receipt 0 0 0 - - 0 0
Pay Vendor - 0 0 + 0 0 0
Sales 0 + 0 0 + + 0
Receive Customer Payment + - 0 0 0 0 0
–– To increase the value of your company, you should focus on making profitable sales. Both the increase in profit and
improvement in credit rating make the company more valuable.
–– Note that since credit ratings are tiered based on debt levels, the impact on credit rating is dependant on the size of
the transaction; e.g. You would need €1m of new sales to increase your credit rating one level.
Lab ERPsim
Serious Academic
16
Commercial version
© Léger developed
École Univ. de
Operations in the Cash-to-Cash
2
RE
LAB D ES E A
VE RC
LO H &
1 PM
EN
T
OFFICE
SA
M AL E S
RK AN
ET D
IN ERP
MUES
LI
PROD
UCTIO
G
N
per
per servin
portiog
/
n (30g)
ERP
MUES
LI
PROD
UCTIO
N
All
ingrnat
per for idieural
per servin
portiog the nts
/
n (30g)
MU bes
ESL t
I
ENLAR
AGRAN
GED
DIESTO
SHOW
POUR
TEXTU
MONT
RERRE
LA
TEXTU
RE
50
MUSLI
SUGGE
0g
CEREAL
STED
S/
SERVIN
CÉRÉAL
G ES
ERP
MUES
LI
PROD
All
ingrnat
for idieural
UCTIO
N
the nts
MU bes
ESL t
I
per
ENLAR
per servin AGRAN
portiog GED
/ DIESTO
n (30g) SHOW
POUR
TEXTU
MONT
RERRE
LA
TEXTU
RE
50
MUSLI
SUGGE
0g
CEREAL
STED
S/
SERVIN
CÉRÉAL
G ES
ERP
MUES
LI
PROD
UCTIO
N
All
ingrnat
for idieural
the nts
AN
per
per servin MU bes
portiog
/
ESL t
n (30g) I
ENLAR
AGRAN
GED
DIESTO
SHOW
POUR
TEXTU
MONT
RERRE
LA
TEXTU
RE
al
ur
50
MUSLI 0g
at nts
SUGGE
CEREAL
STED
S/
SERVIN
CÉRÉAL
G ES
AL
l nidie e s t
All
ingrnat
l
for idieural
the nts
MU bes
A gr b
ESL t
I
ENLAR
AGRAN
GED
DIESTO
SHOW
POUR
i n th e I
TEXTU
MONT
RERRE
LA
TEXTU
RE
YT
SL
50
r
0g
fo M U E
MUSLI
SUGGE
CEREAL
STED
S/
SERVIN
CÉRÉAL
G ES
IC
S
3
SHOP FLOOR
Automated
by ERPsim
Lab ERPsim
Serious Academic
17
Commercial version
© Léger developed
École Univ. de
Integrated Business Processes WITHOUT ERPsim
Transactions required to complete PLANNING PROCESS

Planned
the full integrated process, including

Order
Independant (PldOrd)
Requirement
(IndReq) Purchase
PLANNER
the financial impact.

Requisition
(PurReq)
F-28
$$-01 140000_ _ _ _
Domestic
Payment Cash Acc. Rec. 9000_ _ _ _
Sales Revenue
DB CR DB CR
Customer
Without ERPsim, users would have

Inventory
Invoice 490000_ _ _ _
Sales Change: Sale Purchase
Acc. Rec. revenues Order
DB CR DB CR
(PO)
PROCUREMENT PROCESS
to do all of them to complete $$-01 9000 _ _ _ _ Investment 10000_ _ _ _ V01 500000 _ _ _ _
V02 500000 _ _ _ _
SALES PROCESS
G/L 490000_ _ _ _ Raw mat. GR/IR
a full round.
Raw material
Inventory Finished 490000_ _ _ _ Consuption
DB CR DB CR
change product
Delivery
DB CR DB CR
(Delvry) Goods
Factory Output
490000_ _ _ _ Receipt
Production
V01 510000 _ _ _ _
SALES V02 510000 _ _ _ _
Goods Issue
& Finished Prod.
MARKETING products Output GR/IR
DB CR
Acc. Pay
DB CR
MANAGER DB CR DB CR
10000_ _ _ _
Sales Order
(CusOrd) Investments Cash Raw
Acc. Pay Cash Supplier
DB CR DB CR
DB CR DB CR Cons. Raw materials Invoice
DB CR DB CR
V01 150000 _ _ _ _
490000_ _ _ _ V02 150000 _ _ _ _
Order
Reservation
(OrdRes)
Production
Order
(PrdOrd)
PRODUCTION PROCESS
Lab ERPsim
Serious Academic
18
PRODUCTION MANAGER
enterprise systems
© Léger et and ERPsim is a proprietary
al. 2004-2018. technology
© Léger developed
proprietary technology developed by researchers at HEC Montréal,
Commercial version
powered by
École Univ. de
Integrated Business Processes WITH ERPsim
PLANNING PROCESS
With ERPsim, many clerical transactions NEW

Independant
Planned
Order
(PldOrd)
are automated by the simulator to put

Requirement
(IndReq) Purchase
RD MANAGER Requisition PLANNER
(PurReq)
emphasis on the decision making pro-

F-28
$$-01 140000_ _ _ _
Domestic
Payment Cash Acc. Rec. 9000_ _ _ _
Sales Revenue
cesses and the collaboration between

DB CR DB CR
Customer Inventory
Invoice 490000_ _ _ _
Change: Sale Purchase
the players.
Sales
Acc. Rec. revenues Order
DB CR DB CR
(PO)
PROCUREMENT PROCESS
$$-01 9000 _ _ _ _ Investment 10000_ _ _ _ V01 500000 _ _ _ _
10000_ _ _ _
V02 500000 _ _ _ _
SALES PROCESS
G/L 490000_ _ _ _ Raw mat. GR/IR
Raw material
490000_ _ _ _ ANALYST
ConsuptionRaw material
DB CR DB CR
Inventory Finished
change product Consuption
Delivery
DB CR DB CR
(Delvry) Goods
Factory Output
490000_ _ _ _ Receipt
Production
V01 510000 _ _ _ _
SALES Goods Issue V02 510000 _ _ _ _
& Finished Prod.
GR/IR Acc. Pay
MARKETING products Output
Automated
DB CR DB CR
MANAGER DB CR DB CR
10000_ _ _ _
Sales Order
(CusOrd) Investments Cash Raw
Acc. Pay Cash Supplier
by ERPsim
DB CR DB CR Cons. Raw materials
DB CR DB CR
Invoice
DB CR DB CR
V01 150000 _ _ _ _
490000_ _ _ _ V02 150000 _ _ _ _
NEW
Order
Reservation
(OrdRes)
NEW Production
Order
(PrdOrd)
PRODUCTION PROCESS
Lab ERPsim
Serious Academic
19
PRODUCTION MANAGER
enterprise systems
© Léger et and ERPsim is a proprietary
al. 2004-2018. technology
© Léger developed
proprietary technology developed by researchers at HEC Montréal,
Commercial version
powered by
École Univ. de
ERP SIMULATION GAME
Manufacturing Extended Game
Manufacturing Extended
Purchase Requisition Purchase Order Finished

Raw Materials
(PurReq) (PO) Products
MD61 ME59N CO41 VK32 ZADS

MD01
Create Planned Create Convert Change Price List Marketing Expense
MRP Run
Indep. Req. Purchase Orders Planned Orders Planning
PLANNER PRODUCTION SALES

MANAGER &
Independent MARKETING
Planned Order MANAGER
Requirement
(PldOrd)
(IndReq)
NEW NEW NEW NEW

ZCS02 FB50 FB50 FB50
Validated Setup Time Increase Production Loan Repayment
BOM Change Reduction Capacity
RD MANAGER ANALYST
Lab ERPsim
Serious Academic
20
Commercial version
© Léger developed
École Univ. de
Productivity Decisions
Setup time reduction Production capacity increase

1 ERP
MUE
SLI
PROD
UCTI
ON
per
per servi
porting
on /
(30g)
ERP
MUES
LI
PROD
UCTI
ON
per
per servin
portiog
/
n (30g)
2 ERP
MUE
SLI
PROD
UCTI
ON
per
per servi
porting
on /
(30g)
ERP
MUES
LI
PROD
UCTI
ON
per
per servin
portiog
/
n (30g)
ERP
MUE
SLI
PROD
UCTI
ON
All
ERP
ingrnat
MUE
SLI
for idieural
PROD the nts All
UCTI MU bes All ingrnat
for idieural
per
ON ESL t per servi
I porting
ing nat the nts
ENLAR
on /
(30g) for rid ural MU bes
the ien ESL t
AGRAN
GED
MU bests I
DIESTO
SHOW
POUR
per All TEXTU

MONT ESL t ENLAR
per servi RERRE
I AGRAN
ing nat
GED
porting LA
for rid ural

TEXTU DIESTO
on /
SHOW
ENLAR POUR
(30g) RE
the ien
AGRA TEXTU
MONT
GED
MU bests
NDIESTO RERRE
SHOW LA
POUR TEXTU
ESL t TEXTU
MONT RE
I RERRE
LA
TEXTU
ENLAR
50
AGRA RE
GED
NDIESTO
0g
SHOW
POUR
TEXTU
MONT MUSLI
RERRE
LA
SUGGE
CEREA
STED
50
0g
LS
TEXTU / CÉRÉA
SERVIN
RE G LES MUSLI
50
SUGGE
CEREA
STED
LS
/ CÉRÉA
0g
SERVIN
G LES
MUSL
SUGGI
CEREA
ESTED
ERP LS
/ CÉRÉA
SERVIN
50
MUE
G LES
SLI
0g
PROD
UCTI
MUSL
SUGGI ON
CEREA
ESTED
LS
All
ing nat
ERP / CÉRÉA
SERVIN
MUE
for rid ural
G LES
SLI
the ien
PROD
MU bests
UCTI
per
ON per servi
All porting ESL t
on / I
ing nat (30g)
for rid ural ENLAR
the ien
AGRA
GED
MU bests
NDIESTO
per SHOW
POUR
per servi
porting ESL t TEXTU
MONT
on /
(30g)
I RERRE
LA
TEXTU
ENLAR
AGRA RE
GED
NDIESTO
SHOW
POUR
TEXTU
ERP
MONT
MUE
RERRE SLI
LA PROD
TEXTU
RE UCTI
50
ON
MUSL
SUGGI
CEREA
ESTED
0g
LS per
/ CÉRÉA
SERVIN
50
per servi
G LES porting
on /
MUSL
SUGGI
0g
CEREA
ESTED
ERP
MUE
(30g)
LS
/ CÉRÉA
SERVIN SLI
PROD
G LES
UCTI
ON
All
ing nat
ERP
MUE
SLI
for rid ural
the ien
PROD
MU bests
UCTI
per
ON per servi
All porting ESL t
on / I
ing nat (30g)
for rid ural ENLAR
the ien
AGRA
GED
MU bests
NDIESTO
per SHOW
POUR
per servi
porting ESL t TEXTU
MONT
on /
(30g)
I RERRE
LA
ERP
MUE
TEXTU
ENLAR SLI
AGRA RE PROD
GED
NDIESTO
UCTI
SHOW
POUR ON
TEXTU
MONT
RERRE
LA
ERP ERP TEXTU
MUESL MUESL
RE
50
I PRODU I PRODU
CTION
ERP
MUESL
CTION per All
per servi
ing nat
0g
I PRODU
porting
on /
for rid ural
CTION
MUSL
ERP (30g)
the ien
MUESL SUGGI
CEREA
MU bests
per per ESTED
I PRODU LS
per serving per serving
/ CÉRÉA
SERVIN
50
portion portion
/ /
CTION
(30g)
per
(30g) G LES ESL t
I
0g
per serving
portion
/
(30g)
MUSL ENLAR
SUGGI AGRA
CEREA GED
per ESTED NDIESTO
per serving LS
portion / CÉRÉA
SERVIN SHOW
POUR
/
(30g) G LES TEXTU
MONT
RERRE
LA
All TEXTU
ing nat
RE
for rid ural

the ien
MU bests
All ESL t
I
ing nat
for rid ural
the ien
ENLAR
50
0g
AGRA
GED
MU bests
NDIESTO
SHOW MUSL
All All POUR
SUGGI
ERP natu
ingri natu
ingri ESL t TEXTU
MONT CEREA
ESTED
MUESL
for dienral All for dienral I RERRE ERP LS
/ CÉRÉA
SERVIN
I PRODU
the ts natu the ts LA
TEXTU
MUE
CTION MUE best ingri MUE best ENLAR SLI
G LES
SLI for dienral SLI AGRA
GED
RE PROD
the ts NDIESTO
UCTI
ENLARGE MUE best ENLARGE SHOW
POUR
AGRAND
SLI AGRAND ON
D
TO
IES SHOW
POUR
D
TO
IES SHOW
POUR
TEXTU
MONT All
RERRE
ing nat
per All TEXTURE
MONTRE ENLARGE
AGRAND
TEXTURE
MONTRE
LA
per serving
ingrnatu
for rid ural
R D R
portion LA TO
IES SHOW
LA TEXTU
TEXTURE TEXTURE
/
for idieral
POUR
the ien
(30g) TEXTURE
MONTRE RE
50
the nts
MU bests
R
LA
MUE best TEXTURE per
per servi
0g
SLI porting ESL t
ENLARG MUSL on /
(30g)
I
AGRAN
ED
DIESTO 50 50 SUGGI
CEREA
ESTED ENLAR
0g 0g
SHOW LS
POUR
/ CÉRÉA AGRA
SERVIN GED
50
TEXTUR
50
MONTR MUSLI MUSLI
SUGGEST SUGGEST NDIESTO
CEREALS CEREALS
ER E G LES SHOW
0g
LA ED ED POUR
0g
TEXTUR / CÉRÉALE
SERVING / CÉRÉALE
SERVING
MUSLI TEXTU
MONT
E S SUGGEST S
CEREALS
ED MUSL RERRE
/ CÉRÉALE
SERVING
SUGGI LA
CEREA TEXTU
S ESTED
LS RE
/ CÉRÉA
SERVIN
G LES
50
MUSLI
SUGGES
CEREALS
0g
TED
ERP / CÉRÉALE
SERVING
MUESL
50
S
I PRODU
0g
CTION
All MUSL
ingrnatu SUGGI
CEREA
for idieral ESTED
LS
per
the nts / CÉRÉA
SERVIN
per serving
MUE best G LES
portion
/ SLI
(30g)
ENLARG
AGRAN
ED
DIESTO
SHOW
POUR
TEXTUR
MONTR
ER E
LA
TEXTUR
All
ing nat
for rid ural
the ien
50 MU bests
MUSLI
SUGGES
0g
CEREALS
ESL t
I
TED
/ CÉRÉALE
SERVING
S ENLAR
AGRA
GED
NDIESTO
ERP SHOW
POUR
MUESL
TEXTU
MONT
I PRODU
RERRE
CTION LA
TEXTU
All RE
ingrnatu
for idieral
per
the nts
per serving MUE best
portion
/ SLI
(30g)
ENLARG
AGRAN
50
ED
DIESTO
SHOW
POUR
TEXTUR
0g
MONTR
ER E
LA
TEXTUR
MUSL
E SUGGI
CEREA
ESTED
LS
/ CÉRÉA
SERVIN
G LES
50
MUSLI
SUGGES
0g
CEREALS
TED
/ CÉRÉALE
SERVING
All
ingrnatu
for idieral
the nts
MUE best
SLI
ENLARG
AGRAN
ED
DIESTO
SHOW
POUR
TEXTUR
MONTR
ER E
LA
TEXTUR
50
MUSLI
SUGGES
0g
CEREALS
TED
/ CÉRÉALE
SERVING
–– Initial setup time of 8 hours between production runs of –– A bank loan of €8 000 000 has been invested in
two different products with the option of reducing it by production capacity to increase your Initial produc-
investing. tion capacity from 16,000 to 24,000 units / day.
You also have the option to increase it further.
Lab ERPsim
Serious Academic
21
Commercial version
© Léger developed
École Univ. de
R&D Management
Lab ERPsim
Serious Academic
games
enterprise systems
© Léger et
to learnVersion 2018-2019
al. 2004-2018.
business analytics de Montréal and Western Michigan Univ. Visit erpsim.hec.ca for more information.
École Polytechnique
Muesli Cereals: Composition
Wheat % % Oats
% %
Nuts Raisins
% %
+
Plastic bag
+
Cardboard box
Blueberries Strawberries
Lab ERPsim
Serious Academic
23
Commercial version
© Léger developed
École Univ. de
Available Recipes
Product Design
© Copyright 2004-2018, Léger et al., HEC Montréal.
All rights reserved.
Last Update: August 24th 2018
Nut Blueberry Strawberry Raisin Original Mixed

$$-F01 500g $$-F02 500g $$-F03 500g $$-F04 500g $$-F05 500g $$-F06 500g
$$-F11 1kg $$-F12 1kg $$-F13 1kg $$-F14 1kg $$-F15 1kg $$-F16 1kg
20% wheat* 20% wheat* 20% wheat* 20% wheat* 20% wheat* 20% wheat*
30% oat* 30% oat* 30% oat* 30% oat* 30% oat* 30% oat*
20% nut* 20% blueberry* 20% strawberry* 20% raisins* 1 box / 1 bag* 30% fruits & nuts**
1 box / 1 bag* 1 box / 1 bag* 1 box / 1 bag* 1 box / 1 bag* 1 box / 1 bag*
*minimum *minimum *minimum *minimum *minimum *minimum
**At least some of all fruits/nut
CUSTOMER S STOR AGE CAPACIT Y AND COSTS PRODUCTION CAPACIT Y

DC 10: Hypermarkets Cost per Capacity (units/day) 24,000
Lab ERPsim
Serious Academic
games 20 Version 2018-2019
to: learn Product type Game.
Manufacturing Current space
Advanced additional
24
Payment Time
enterprise systems
©Approximate
Léger et and
al. 2004-2018. ERPsim is a proprietary technology developed by researchers at50,000
HEC units*
Montréal, Additional Capacity
Commercial version
Market Size © Léger et al. 2004-2014. ERPsim is a proprietary technology developed by researchers at HEC Montréal, powered by
1 000 000**
École Univ. de
Montréal and WesternforMichigan
more information. (€
Univ. Visit erpsim.hec.ca for more per 1,000
information. units)
DC10 €90 000 per team per week Finished product 250,000 boxes €500/day
**Investing in additional capacity will increase equipment depreciation costs
Raw materials 250,000 kg €1 000/day
2 In financial statement
Procurement Sourcing (ZME13) if incomplete). Shows sales related info suc
FIORI step TREASURY MANAGEMENT
Bill-of-Material
If Target Qty > Conf. Qty revenue.
version, enter SIM1 Shows material prices for each vendor.
means still pending. Liquidity Planning (ZFF7B) Price Market Report (ZMA
3
Shows aggregate market sale
Displays an estimate of your cashflow past 5 days.
for the coming weeks.
CHANGE PRODUCT DESIGN LOAN REPAYMENT SETUP TIME REDUCTION INCREASE CAPACITY
Validated BOM Change (ZCS02) G/L Account Posting (FB50) G/L Account Posting (FB50) G/L Account Posting (FB50)
1 In Material, enter the product

to redesign : $$-F## 1 Enter current date (F4) in
Document Date 1 Enter current date (F4) in
Document Date
2 2 1st Line 2nd Line 2 1st Line 2nd Line 2 1st Line 2nd Line
Account 113300 113101 Account 113300 478000 Account 113300 11000
3 Change quantities D/C Credit Debit D/C Credit Debit D/C Credit Debit
4 Amount ??? ??? Amount ??? ??? Amount ??? ???
If prompted the “incorrect recipe“ 3 Click on Enter 3 Click on Enter 3 Click on Enter
! message, click on to
modify it
4 4 4 Adapted for Fiori-themed S
and Fiori Lau
Lab ERPsim
Serious Academic
25
Commercial version
© Léger developed
École Univ. de
Financial Accounting
Lab ERPsim
Serious Academic
games
enterprise systems
© Léger et
al. 2004-2018.
Financial Statements
FINANCIAL STATEMENT
Financial Statements (F.01)
1 In company code, enter your

company code ($$)
GUI step
Select ALV Tree control
2 FIORI step
In financial statement
version, enter SIM1
Lab ERPsim
Serious Academic
27
Commercial version
© Léger developed
École Univ. de
Cost Accounting
Lab ERPsim
Serious Academic
games
enterprise systems
© Léger et
al. 2004-2018.
Total Fixed Costs
FIXED COSTS (€ paid each 5 days)*
Direct labor 20 000
Factory overhead 15 000
S, G & A 40 000
Depreciation (Building) 1 250
Depreciation (Equipment) 50 000**

*Billed Automactically
**Investing in additional capacity will
increase equipment depreciation costs
Lab ERPsim
Serious Academic
29
Commercial version
© Léger developed
École Univ. de
Product Cost Planning
Lab ERPsim
Serious Academic
30
Commercial version
© Léger developed
École Univ. de
Treasury Management
Lab ERPsim
Serious Academic
games
enterprise systems
© Léger et
al. 2004-2018.
Liquidity Planning
TREASURY MANAGEMENT
Liquidity Planning (ZFF7B)
Displays an estimate of your cashflow

Lab ERPsim
Serious Academic
32
Commercial version
© Léger developed
École Univ. de
Financial Transaction : Posting in the G/L
Lab ERPsim
Serious Academic
33
Commercial version
© Léger developed
École Univ. de
Procurement Sourcing (ZME13) if incomplete). Shows sales related info such as sales
TREASURY MANAGEMENT revenue.
Loan Repayment
tement If Target Qty > Conf. Qty
SIM1 Shows material prices for each vendor.
means still pending. Liquidity Planning (ZFF7B) Price Market Report (ZMARKET)
Shows aggregate market sales data for

UCT DESIGN LOAN REPAYMENT SETUP TIME REDUCTION INCREASE CAPACITY
hange (ZCS02) G/L Account Posting (FB50) G/L Account Posting (FB50) G/L Account Posting (FB50)
ter the product
$-F## 1 Enter current date (F4) in
Document Date
2 1st Line 2nd Line 2 1st Line 2nd Line 2 1st Line 2nd Line
Account 113300 113101 Account 113300 478000 Account 113300 11000
ties
D/C Credit Debit D/C Credit Debit D/C Credit Debit
Amount ??? ??? Amount ??? ??? Amount ??? ???
e “incorrect recipe“
on to
3 Click on Enter 3 Click on Enter 3 Click on Enter
4 4 4 Adapted for Fiori-themed SAP GUI

and Fiori Launchpad
Lab ERPsim
Serious Academic
34
Commercial version
© Léger developed
École Univ. de
Production Planning
Lab ERPsim
Serious Academic
games
enterprise systems
© Léger et
al. 2004-2018.
Production Improvement: Capacity Increase
1 ERP
MU
ESL
I PRO
DU
CTI
ON
per
per serv
por ing
tion /
(30g
)
ERP
MU
ESL
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TIO
N
per
per serv
por ing
tion /
(30g
)
2 ERP
MU
ESL
I PRO
DU
CTI
ON
per
per serv
por ing
tion /
(30g
)
ERP
MU
ESL
I PRO
DUC
TIO
N
per
per serv
por ing
tion /
(30g
)
ERP
MU
ESL
I PRO
DU
CTI
ON
Al l
ERP
MU
ing natur
ESL for rid al
I PRO
the ien Al l
DU
CTI
MU bets per Al l ing natur
ON ES st per serv for rid al
LI por ing
in natu the ien
for grid ral MU bets
tion /
ENLA (30g
th ien ES st
AGR RGED
)
MU e bets LI
AND
TO
IES SHO
POU
W
per
R
Al l
TEXT
MON ES st ENLA
per serv
URE
TRER LI AGR RGED
por ing
in natu LA AND
TO
for grid ral

TEXT IES
tion / SHO
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URE ENL W
(30g
th ien
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TRER
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W
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50
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th ien
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DU
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ON per serv
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tion / LI
in natu (30g
for grid ral ) ENL
th ien
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per IES SHO
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por ing ES st R TEX
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por ing
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in natu (30g
for grid ral ) ENL
th ien
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TO
per IES SHO
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por ing ES st R TEX
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tion / LI TUR
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ERP
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W
R TEX
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TUR
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LA
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50 per
per serv
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in natu
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GESTCERE
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tion /
(30g
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for grid ral
th ien
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SERV/ CÉRÉ MU e bets
50 ING ALES
ES st
LI
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SUG LI
GESTCERE
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AGRARG
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TO
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POU
ING ALES W
R TEX
MON
TUR
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LA
Al l TEX
TUR
in natu
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for grid ral

th ien
MU e bets
Al l ES st
LI
in natu
for grid ral
th ien
ENL
50
0g
AGRARG
ANDED
MU e bets
TO
IES SHO
POU MUS
W SUG LI
ES st R TEX
MON GESTCERE
LI TUR
TRE
R
E ERP ED ALS
SERV/ CÉRÉ
LA MU
TEX ING ALES
ENL TUR
ESL
AGRARG E I PRO
ANDED DU
TO
IES SHO CTI
POU ON
W
R TEX
MON
TUR
TRE
Al l
in natu
E
R
LA
for grid ral

TEX
TUR
th ien
E
50 per
per serv
MU e bets
MUS
SUG LI
GESTCERE
0g por ing
tion /
(30g
) ENL
ES st
LI
ED ALS AGRARG
SERV/ CÉRÉ
50
ANDED
ING ALES TO
IES SHO
POU
0g
W
R TEX
MON
TUR
TRE E
MUS
R
SUG LI LA
GESTCERE TEX
TUR
ED ALS E
SERV/ CÉRÉ
ING ALES
50
MUS
SUG LI
GESTCERE
0g
ED ALS
SERV/ CÉRÉ
ING ALES
Al l
in natu
for grid ral
th ien
MU e bets
ES st
LI
ENL
AGRARG
ANDED
TO
IES SHO
POU
W
R TEX
MON
TUR
TRE E
R
LA
TEX
TUR
E
50
MUS
SUG LI
GESTCERE
0g
ED ALS
SERV/ CÉRÉ
ING ALES
PRODUCTION CAPACIT Y
Capacity = Account #11000 Balance*
Capacity (units/day) 24,000
Additional Capacity
1 000
1 000 000
(€ per 1,000 units) *Machinery and equipment Account
Lab ERPsim
Serious Academic
36
Commercial version
© Léger developed
École Univ. de
urcing (ZME13) if incomplete). Shows sales related info such as sales
Balance Sheet : Capacity Improvement

If Target Qty > Conf. Qty
s for each vendor.

REDUCTION INCREASE CAPACITY
sting (FB50) G/L Account Posting (FB50)

e (F4) in
1 Enter current date (F4) in
Document Date
ne 2nd Line 2 1st Line 2nd Line
00 478000 Account 113300 11000
dit Debit D/C Credit Debit
? ??? Amount ??? ???
Enter 3 Click on Enter
4 Adapted for Fiori-themed SAP GUI

and Fiori Launchpad
Lab ERPsim
Serious Academic
37
Commercial version
© Léger developed
École Univ. de
Lot Size (MM02)
WARNING: This transaction can only be used before the game

starts and in between rounds.
Lab ERPsim
Serious Academic
38
Commercial version
© Léger developed
École Univ. de
Production Improvement: Setup Time Reduction
SETUP TIME INVESTMENT MARGINAL
(hours) (€) INVESTMENT (€)
8 – –
7 50 000 50 000
ERP ERP
MUESLI MUESLI
PRODUC PRODUC
ERP
TION MUESLI TION
PRODUC
TION
ERP
MUESL
per per
I PRODU
per serving per serving
portion portion
CTION / /
(30g) (30g)
per
per serving
portion
/
(30g)
per
per serving
portion
/
(30g)
All All
ERP natur
ingri natur
ingri
MUESL
for diental All for diental
I PRODU
the natur the
CTION MUES bests ingri MUES bests
LI for diental LI
the
ENLARGE MUES bests ENLARGE
AGRANDI AGRANDI
D
ES
TO
SHOW
LI D
ES
TO
SHOW
POUR POUR
per AllTEXTURE
MONTRER ENLARGE
AGRANDI
TEXTURE
MONTRER
per serving
portion natu
ingri LA
TEXTURE
D
ES
TO
SHOW
LA
TEXTURE
/
for dienral
POUR
(30g) TEXTURE
MONTRER
the ts LA
MUE best TEXTURE
SLI
ENLARGE
AGRAND
D
TO 50 50
0g 0g
IES SHOW
POUR
TEXTURE
50
MONTRE MUSLI MUSLI
SUGGESTE SUGGESTE
CEREALS CEREALS
R
0g
LA D D
TEXTURE / CÉRÉALES
SERVING / CÉRÉALES
SERVING
MUSLI
SUGGESTE
CEREALS
D / CÉRÉALES
SERVING
50
MUSLI
SUGGEST
0g
CEREALS
ERP ED
/ CÉRÉALE
SERVING
MUESL
S
I PRODU
CTION
All
natu
ingri
for dienral
per
the ts
per serving
MUE best
6 125 000 75 000

portion
/ SLI
(30g)
ENLARGE
AGRAND
D
TO
IES SHOW
POUR
TEXTURE
MONTRE
R
LA
TEXTURE
50
MUSLI
SUGGEST
0g
CEREALS
ED
/ CÉRÉALE
SERVING
ERP
MUESL
I PRODU
CTION
All
natu
ingri
for dienral
per
the ts
per serving MUE best
portion
/ SLI
(30g)
ENLARGE
AGRAND
D
TO
IES SHOW
POUR
TEXTURE
MONTRE
R
LA
TEXTURE
50
MUSLI
SUGGEST
0g
CEREALS
ED
/ CÉRÉALE
SERVING
All
natu
ingri
for dienral
the ts
MUE best
SLI
ENLARGE
AGRAND
D
TO
IES SHOW
POUR
TEXTURE
MONTRE
R
LA
TEXTURE
5 250 000 125 000

50
MUSLI
SUGGEST
0g
CEREALS
ED
/ CÉRÉALE
SERVING
Setup time
(hours) 4 500 000 250 000
11 3 1 250 000 750 000
10
9
8 The exact formula for calculating the
7
set up time as a function of investment:
6
5
4hrs 4
3
Setup Time= 2 + 6 x 250,000
2 250,000 + Account 478 000 Balance*
1
Investment
100 200 300 400 500 600 700 800 900 1000 1100 (x €1 000) *Production Improvement Expenses Account
€500 000
Lab ERPsim
Serious Academic
39
Commercial version
© Léger developed
École Univ. de
Procurement Sourcing (ZME13) if incomplete). Shows sales related info such as sales
P/L : Setup Time Reduction

If Target Qty > Conf. Qty
Shows material prices for each vendor.

AYMENT SETUP TIME REDUCTION INCREASE CAPACITY
sting (FB50) G/L Account Posting (FB50) G/L Account Posting (FB50)
e (F4) in
1 Enter current date (F4) in
Document Date
e 2nd Line 2 1st Line 2nd Line 2 1st Line 2nd Line
0 113101 Account 113300 478000 Account 113300 11000
Debit D/C Credit Debit D/C Credit Debit
??? Amount ??? ??? Amount ??? ???
Enter 3 Click on Enter 3 Click on Enter
4 4 Adapted for Fiori-themed SAP GUI

and Fiori Launchpad
Lab ERPsim
Serious Academic
40
Commercial version
© Léger developed
École Univ. de
Forecasting
Lab ERPsim
Serious Academic
games
enterprise systems
© Léger et
al. 2004-2018.
Forecasting
FORECAST SALES
Create Planned Indep. Req. (MD61)
1
2
3 in the 2nd date column
Enter forecasted quantities
4
! the replenishment level
The quantity corresponds to
STOR AGE CAPACIT Y AND COSTS

Cost per
Product type Current space
additional 50,000 units*
Finished product 250,000 boxes €500/day
Raw materials 250,000 kg €1 000/day

Packaging
750,000 units €100/day
(bags and boxes)
Lab ERPsim
Serious Academic
42
Commercial version
© Léger developed
École Univ. de
Review of the Major Rules
1 Customers preferences do not change throughout the

game, hence you may learn from their past behavior
2 The company displaying the highest Company Valuation

at the end of the simulation wins the game
3 You must behave ethically at all times
4 The end of game inventory will be value at cost price

in the final balance sheet. Therefore, you shouldn’t sell
under cost at any time during the game.
In order to sell a product, it needs to be available in

your inventory.
Lab ERPsim
Serious Academic
43
Commercial version
© Léger developed
École Univ. de
Léger et al (2013):
Manufacturing Participants Guide
PARTICIPANT’S
GUIDE
ERP Simulation Game
MANUFACTURING
EXTENDED

Compatible with SAP™ ERP ECC. 6.0 & 6.4
for Learning
Entreprise Resource
Jacques ROBERT Bret WAGNER
http://erpsim.hec.ca Lab Serious games to learn

enterprise systems and
© Léger et al. 2004-2015. ERPsim Lab, HEC Montréal
business analytics
Available at
http://erpsim.hec.ca/en/node/291
Lab ERPsim
Serious Academic
44
Commercial version
© Léger developed
École Univ. de
Participant’s Job Aids
Manufacturing Product Design
© Copyright 2004-2018, Léger et al., HEC Montréal.
© Copyright 2004-2018, Léger et al., HEC Montréal. All rights reserved.
User: $1 to $9 All rights reserved. Last Update: August 24th 2018
Last Update: August 24th 2018
Extended Game Password: ERPSIM
FORECAST SALES CALCULATE REQUIREMENTS PURCHASING RELEASE PRODUCTION MARKETING PRICING
Create Planned Indep. Req. (MD61) MRP Run (MD01) Create Purchase Orders (ME59N) Convert Planned Orders (CO41) Marketing Expense Planning (ZADS) Change Price List (VK32)
1 1 Click on Enter 1 1 1 Open prices folder and

double click on Price list
Enter the daily amount of
2 ! Iforderno planned order: Planned
could not be selected 1 marketing for each product
2 10,
In Distribution channel, enter
12 or 14. In Valid-on,
2 Click two more times on Enter
and each area.
2 Select orders
enter today’s date.
3 Enter forecasted quantities
2 Purchase orders are created
in the 2nd date column
3
4 3 Nut Blueberry Strawberry Raisin Original Mixed
3
In the pop-up window, click
2 4 Enter your prices
!
If no open requisitions : $$-F01 500g $$-F02 500g $$-F03 500g $$-F04 500g $$-F05 500g $$-F06 500g
! The quantity corresponds to
the replenishment level
No suitable requisitions found. ! If conversion fails,
click on to see log 5 $$-F11 1kg $$-F12 1kg $$-F13 1kg $$-F14 1kg $$-F15 1kg $$-F16 1kg
20% wheat* 20% wheat* 20% wheat* 20% wheat* 20% wheat* 20% wheat*
30% oat* 30% oat* 30% oat* 30% oat* 30% oat* 30% oat*
FINANCIAL STATEMENT STOCK LEVELS PROCUREMENT PRODUCTION SCHEDULE PRODUCTION COST SALES AND MARKET DATA 20% nut* 20% blueberry* 20% strawberry* 20% raisins* 1 box / 1 bag* 30% fruits & nuts**
1 box / 1 bag* 1 box / 1 bag* 1 box / 1 bag* 1 box / 1 bag* 1 box / 1 bag*
Financial Statements (F.01) Inventory Report (ZMB52) Purchase Order Tracking (ZME2N) Production Schedule (ZCOOIS) Product Cost Planning (ZCK11) Summary Sales Report (ZVC2)
*minimum *minimum *minimum *minimum *minimum *minimum
1 In company code, enter your
company code ($$) Shows all stock levels Shows for each purchase
order, the issue , arrival and
Shows released production
orders, past and future. For each
For each product, it shows
Aggregates the daily sales orders by
product.
**At least some of all fruits/nut
payment dates. variable and fixed costs and prices for

GUI step order, the time released, started every DC. Detailed Sales Report (ZVA05) CUSTOMER S STOR AGE CAPACIT Y AND COSTS PRODUCTION CAPACIT Y
Select ALV Tree control and finished (or to start and finish
Cost per
2 FIORI
Procurement Sourcing (ZME13) if incomplete). Shows sales related info such as sales DC 10: Hypermarkets Capacity (units/day) 24,000
step
In financial statement If Target Qty > Conf. Qty TREASURY MANAGEMENT revenue. Product type Current space additional
Shows material prices for each vendor. Payment Time : 20
version, enter SIM1 means still pending. Price Market Report (ZMARKET) 50,000 units* Additional Capacity
Liquidity Planning (ZFF7B) Approximate Market Size 1 000 000**
DC10 €90 000 per team per week Finished product 250,000 boxes €500/day (€ per 1,000 units)
3
Displays an estimate of your cashflow past 5 days. **Investing in additional capacity will increase equipment depreciation costs
for the coming weeks. DC 12: Grocery Chains Raw materials 250,000 kg €1 000/day
Payment Time : 10-20 Packaging SETUP TIME
750,000 units €100/day
CHANGE PRODUCT DESIGN LOAN REPAYMENT SETUP TIME REDUCTION INCREASE CAPACITY Approximate Market Size (bags and boxes)
DC12 €220 000 per team per week *Billed automatically Setup time (hours) Investment (€)
Validated BOM Change (ZCS02) G/L Account Posting (FB50) G/L Account Posting (FB50) G/L Account Posting (FB50)
DC 14: Independant Grocers FIXED COSTS (€ paid each 5 days)* 8 -
1 In Material, enter the product
to redesign : $$-F## 1 Enter current date (F4) in
Document Date Payment Time : 1-20
7 50 000
Direct labor 20 000
2 2 1 Line
st
2 Line
nd
2 1 Line
st
2 Line
nd
2 1st Line 2nd Line Approximate Market Size
€130 000 per team per week 6 125 000
Account 113300 113101 Account 113300 478000 Account 113300 11000 DC14 Factory overhead 15 000
3 Change quantities Credit Debit Credit Debit Credit Debit S, G & A 40 000 5 250 000
D/C D/C D/C SUPPLIER S
4 Amount ??? ??? Amount ??? ??? Amount ??? ???
Lead time (days) 1-5 Depreciation (Building) 1 250 4 500 000
If prompted the “incorrect recipe“ 3 Click on Enter 3 Click on Enter 3 Click on Enter Payment time (days) 20 Depreciation (Equipment) 50 000** 3 1 250 000
! message, click on to
modify it
4 4 4 Adapted for Fiori-themed SAP GUI
*Billed automatically
and Fiori Launchpad
Lab ERPsim
Serious Academic
45
Commercial version
© Léger developed
École Univ. de
ERP Simulation Game
Academic Year 2018-2019
MANUFACTURING
EXTENDED

Compatible with SAP™ ERP ECC and Business Suite on HANA
for Learning
Enterprise Resource Jacques ROBERT Bret WAGNER
Lab ERPsim
Serious
enterprise
© Léger et
Academic
games to learnVersionGame.
Manufacturing
systems
2018-2019Advanced Last Update : August 24th 2018
al. 2004-2018. Commercial version
business analytics
© Léger de
École Polytechnique et al. 2004-2014.
Montréal andERPsim is a proprietary
Western Michigan technology developed
Univ. Visit by researchers
erpsim.hec.ca at HECinformation.
for more Montréal, powered by
École Polytechnique de Montréal and Western Michigan Univ. Visit erpsim.hec.ca for more information.

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ERP Simulation Game

Academic Year 2018-2019

A Serious Game Powered by ERPsim

–– More Sales Staff

for rid ural

for rid ural ) ENLA

• Increases the S, G & A

for rid ural ) ENLA

for rid ural

–– New Bank Loan

• Adds interests charges to the fixed costs

Current Market (Manufacturing Extended)

DC10 DC12 DC14

Approximate Market Size Approximate Market Size Approximate Market Size

Where Setup = Setup Time Reduction Investment

Company Credit Rating: BBB 2 325 000

–– Number of rounds played: 1 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 − 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆

–– Market Risk Rate 7% 125 000 − (−75 000)O

𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑉𝑉 𝑎𝑎 = €17 884 615

Transactions required to complete PLANNING PROCESS

the full integrated process, including

the financial impact.

Without ERPsim, users would have

With ERPsim, many clerical transactions NEW

are automated by the simulator to put

emphasis on the decision making pro-

cesses and the collaboration between

Purchase Requisition Purchase Order Finished

MD61 ME59N CO41 VK32 ZADS

PLANNER PRODUCTION SALES

NEW NEW NEW NEW

Setup time reduction Production capacity increase

per All TEXTU

for rid ural

for rid ural ENLAR

for rid ural ENLAR

for rid ural

Nut Blueberry Strawberry Raisin Original Mixed

CUSTOMER S STOR AGE CAPACIT Y AND COSTS PRODUCTION CAPACIT Y

1 In Material, enter the product

Financial Statements (F.01)

1 In company code, enter your

Factory overhead 15 000

Depreciation (Building) 1 250

Depreciation (Equipment) 50 000**

Liquidity Planning (ZFF7B)

Displays an estimate of your cashflow

Shows aggregate market sales data for

UCT DESIGN LOAN REPAYMENT SETUP TIME REDUCTION INCREASE CAPACITY

Amount ??? ??? Amount ??? ??? Amount ??? ???

4 4 4 Adapted for Fiori-themed SAP GUI

for grid ral

for grid ral ) ENL

50 ING ALES per serv

for grid ral ) ENL

for grid ral

for grid ral

Balance Sheet : Capacity Improvement

Shows aggregate market sales data for

REDUCTION INCREASE CAPACITY

sting (FB50) G/L Account Posting (FB50)

dit Debit D/C Credit Debit

? ??? Amount ??? ???