Question 1

Do we start Year 1 with any trucks in production?

Accepted Answer

You start Year 1 with a dry plant and are able to begin producing new trucks as of January 1st of Year 1.

Question 2

Do we start Year 1 with any raw goods inventory?

Accepted Answer

As you take over the business, you do not currently have any raw goods inventory. However, due to a slowdown in Q4 of the prior year, suppliers have stockpiled finished goods that they can deliver to you on January 1st of Year 1. Before the start of Year 1, sourcing will submit orders that will be delivered to the plant on January 1st.  This will enable you to start producing trucks January 1.

Question 3

How often can we update our product?

Accepted Answer

Development cycles for mining trucks take roughly one year and you are able to change your truck's design at the start of every year. If you wish to change your BOM ensure that you submit new designs in Q4.

Question 4

How often can we introduce new products?

Accepted Answer

Development cycles for new mining trucks take roughly a year. Teams are able to introduce new trucks at the start of every year. To do so, please enter the new BOM into the next open column in your engineering input file.
 
Prior to introducing a new truck to the market, you must present your rationale for introducing this product to BOTH Paul Proudy, VP Engineering, and Bob Johnson, VP Sales & Marketing. They will provide approval for any NPIs.
 
A change to an existing product is not considered a NPI.

Question 5

How often can we change the price of existing products?

Accepted Answer

Quarterly. All price changes need to be approved by Bob Johnson.

Question 6

What happens if we deliver a truck late?

Accepted Answer

An inability to deliver the truck to the customer on-time and in accordance to your promises will result in late fees.

With every truck order, a customer states the date they need to accept delivery of the truck, referred to as the ‘Customer Need By Date’. If you deliver the truck after the 'Customer Need by Date' you will be charged $10,000 per late day.  
For Example: ‘Customer Need by Date’ is 10/3/2020, truck is delivered on 10/10/2020, you are charged 7 days of late fees for a total of $70,000.

You are allowed let customers know that they will receive a truck after the 'Customer Need by Date' by submitting a new "Promised Date of Delivery" in the shop ops input. In doing so, you are entering a new contract, with a new 'Customer Need by Date' and a $5,000 per day price discount.
For example, the original 'Customer Need by Date' is 1/10/2020. Shop Ops alert the customer of a new 'Promised Date of Delivery' of 1/20/2020 via their input sheet. The new Contracted Date is set for 1/20/2020 but with a $50,000 price discount.

Please reach out to Bob Johnson, VP of Sales & Marketing,  if you have further questions.

Question 7

Can we change our S&OP the following quarter?

Accepted Answer

No, once you've committed to starting truck production, that obligation must be met.

Question 8

How long does it take to deliver the vehicle after production is finished?

Accepted Answer

Tribolt uses FOB "Free on Board" Shipping services to its customers. As soon as the truck leaves the manufacturing facility en route to the customer, Tribolt records the sale as complete and the buyer now owns the product and assumes responsibility for shipment. 
 
It is assumed that the sale is executed the same day the truck has completed production.

Question 9

How do we communicate with suppliers, customers and Tribolt management?

Accepted Answer

Email is the best way to get ahold of suppliers and Tribolt Management. There is a contact list in your Gmail accounts that should direct you to the appropriate contact. 
 
If you wish to speak with a vendor, customer, internal Tribolt employee, Union representative, and you do not see a contact for that person, please reach out to your functional manager.

Question 10

What happens if we don't have material in the plant to produce a vehicle?

Accepted Answer

If you order the wrong component or you run out of material in the plant, an automated rush shipment of that component is ordered. While waiting for the components to be delivered, your plant will not be able to manufacture trucks. In addition, vendors charge additional fees for expedited shipments.

Question 11

Is there a cost associated with carrying inventory?

Accepted Answer

Yes, there is a cost associated with carrying raw goods and finished goods inventory. These costs cover warehouse costs such as rent or a mortgage on the property, utilities, property taxes, salaries of warehouse employees, and insurance costs. 
 
The cost of carrying inventory for Tribolt is 10% of the value of the inventory per year, charged quarterly.

Question 12

How many tires do we need to order to build a single truck?

Accepted Answer

One. Each tire order comes in sets of six tires.
 
While there are three components that require multiple components - tires (6x), hydraulic rams (2x) and final drives (2x) - we've negotiated price with our vendors to supply us with sets of these components. For each component you will place an order quantity of 1 per truck

Question 13

Do leap years exist in this simulation?

Accepted Answer

No, leap years do not exist in this business simulation, there are always 365 days in a year. Please never enter February 29th into any of the dates. If your birthday happens to fall on February 29th we apologize in advance.

Question 14

Do we accept all orders that we receive from customers?

Accepted Answer

It is Corporate’s rule that if you have the capacity to deliver the truck on time then you must accept the order. If you continue to reject orders that customers have placed, customers will discount your ability to deliver on those products and move to other competitors.
In additional, sales staff is compensated based on sales commission. Their morale and performance is impacted by your ability to deliver on sales promises.
If you don’t have capacity to make the truck by the customer’s due date, then you can inform the customer that you are not accepting the order by excluding the truck from your production schedule.

Frequently Asked Questions