Manufacturing Intro Game Slides

ERP Simulation Game Last Update: August 1, 2023
MANUFACTURING
INTRODUCTION
A Serious Game Powered by ERPsim

Compatible with SAP™ S/4HANA
for Learning
Enterprise Resource
Pierre-Majorique LÉGER Robert PELLERIN
Jacques ROBERT Bret WAGNER
Planning Concepts Gilbert BABIN
Lab Serious games to learn

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Welcome to Your New Job!
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Your Company

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Make-to-Stock Muesli Manufacturing

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Muesli Cereals: Composition
Wheat % % Oats
% %
Nuts Raisins
% %
+
Plastic bag
+
Cardboard box
Blueberries Strawberries

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Your 12 Products and Initial Inventory
Nut Strawberry Original
$$-F01 500g $$-F03 500g $$-F05 500g
$$-F11 1kg $$-F13 1kg $$-F15 1kg
Starting 30,000 Starting 30,000 Starting
Inventory units each None
Inventory units each Inventory
35% wheat 35% wheat 50% wheat
35% oat 35% oat 50% oat
30% nut 30% strawberry 1 box / 1 bag
1 box / 1 bag 1 box / 1 bag
Blueberry Raisin Mixed

$$-F02 500g $$-F04 500g $$-F06 500g
$$-F12 1kg $$-F14 1kg $$-F16 1kg
Inventory units each None
Inventory units each Inventory
35% oat 35% oat 30% oat
30% blueberry 30% raisins 40% fruits & nuts
1 box / 1 bag 1 box / 1 bag 1 box / 1 bag

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Cost, Initial Prices, and Initial Inventory
NUT BLUEBERRY STRAWBERRY RAISIN
$$- F01 500g $$- F11 1kg $$- F02 500g $$- F12 1kg $$- F03 500g $$- F13 1kg $$- F04 500g $$- F14 1kg
Standard cost €0.90 €1.61 €1.23 €2.26 €1.23 €2.27 €0.79 €1.38
Initial price DC 12 €3.90 €4.61 €4.23 €5.26 €4.23 €5.27 €3.79 €4.38
Initial stock 30 000 units 30 000 units 30 000 units 30 000 units 30 000 units 30 000 units 30 000 units 30 000 units

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The Market Preferences
Schleswig
Holstein
Each region has unique preferences related Mecklenbourg
Western
to the products it wishes to purchase from
Hamburg
Lower Saxony
your company. Bremen
North
Berlin
Saxony Brandenbourg
Anhalt
North
Rhine-Westphalia
West Thuringia
Saxony
Hesse
Rhineland
Palatinate
South
Baden Bavaria
Wurttemberg

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The Market
Grocery stores
Schleswig
Holstein
Mecklenbourg
Hamburg Western
– Payment delay of 10 to 20 days Lower Saxony
Bremen
North
– Orders 4 products at a time Berlin
DC12
Approximate Market Size
Saxony Brandenbourg
Anhalt
North
– €360 000 per team per week

Rhine-Westphalia
West Thuringia
Saxony
Hesse
West North Rhineland

Palatinate
Grocery stores 17 Grocery stores 19 Saarland

South
South Baden Bavaria
23
Wurttemberg
Grocery stores

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Pricing and Advertising
Pricing decision Advertising decision
Pricing is done by product and distribution channel Advertising is done by product and area
PRODUCT DC 12 GROCERY STORES PRODUCT NORTH SOUTH WEST
$$-F01 Nuts 500g $$-F01 Nuts 500g

$$-F02 Blueberry 500g $$-F02 Blueberry 500g
$$-F03 Strawberry 500g $$-F03 Strawberry 500g
$$-F04 Raisin 500g $$-F04 Raisin 500g
$$-F11 Nuts 1kg $$-F11 Nuts 1kg
$$-F12 Blueberry 1kg $$-F12 Blueberry 1kg
$$-F13 Strawberry 1kg $$-F13 Strawberry 1kg
$$-F14 Raisin 1kg $$-F14 Raisin 1kg

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Company Valuation

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Determining Company Value
Company =
Yearly Profit
Value Company Discount Rate
(Current Profit / Nb. Rounds Played) * 12

=
Market Risk Rate + Company Risk Rate
This formula is adapted from the standard Dividend Discount Model (DDM) for stock
valuation, assuming no growth and 100% dividend payout.

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Company Valuation Example
Company Situation (Current Profit / Nb. Rounds Played) * 12
=
Current profit: €125 000 Market Risk Rate + Company Risk Rate
Number of rounds played: 1
Market Risk Rate: 7% (125 000/ 1) * 12
Company Credit Rating: AAA+ =
Companies start the manufacturing introduction 7% + 3%
game without any debts (bank loan=0)
Company Risk Rate*: 3%

*linked to AAA+ credit rating, see next slide 1 500 000
=
10%
= € 15 000 000

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Determining Company Discount Rate
Discount Rate = Market Risk Rate + Company Risk Rate LOOKUP TABLE
=7% + f(Company Credit Rating) Debt Loading Rating Risk Differ ential
€- AAA+ +3,00%
€ -1 000 000 AA+ +3,75%
€ -2 000 000 AA +4,00%
€ -3 000 000 AA- +4,25%
Company Credit Rating = f(Debt Loading) € -4 000 000
€ -5 000 000
A+
A
+4,75%
+5,00%
€ -6 000 000 A- +5,25%
€ -7 000 000 BBB+ +5,75%
€ -8 000 000 BBB +6,00%
Debt Loading = (Cash + Acc. Receivables) + (Loan + Acc. Payables) € -9 000 000
€ -10 000 000
BBB-
BB+
+6,25%
+6,75%
€ -11 000 000 BB +7,00%
€ -12 000 000 BB- +7,25%
Positive Values Negative Values € -13 000 000
€ -14 000 000
B+
B
+7,75%
+8,00%
€ -15 000 000 B- +8,25%
€ -16 000 000 CCC+ +9,00%
€ -17 000 000 CCC +10,00%
€ -18 000 000 CCC- +11,00%
The market risk rate is based on historical stock market average € -19 000 000 CC +12,00%
returns of 7%. € -20 000 000 C +15,00%
Company credit ratings are determined using the lookup table.

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Company Valuation Example
Company Situation Debt Loading = (Cash + Acc. Receivables) + (Loan + Acc. Payables)
= (1 500 000 + 450 000) + (0 - 350 000)
Current profit: €125 000 = 1 600 000
Cash: €1 500 000
Company Credit Rating = f(Debt Loading)
Accounts Receivable: €450 000 = f(1 600 000)
Bank Loan: €0 = AAA+
Accounts Payable: €-350 000 Company Risk Rate = f(Company Credit Rating)
Number of rounds played: 1 = f(AAA+)
= 3%
Market Risk Rate 7% (Current Profit / Nb. Rounds Played) * 12

Company Value =
Market Risk Rate + Company Risk Rate
(125 000/ 1) * 12
=
7% + 3%
= € 15 000 000

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Business Processes

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Integrated Business Processes WITHOUT ERPsim
PLANNING PROCESS
Planned
Order
Independant (PldOrd)
Requirement
(IndReq) Purchase
Requisition
Transactions required to complete

(PurReq)
F-28
$$-01 140000_ _ _ _
Domestic
Payment Cash Acc. Rec. 9000_ _ _ _
the full integrated processes,

Sales Revenue
DB CR DB CR
Customer Inventory
490000_ _ _ _
including the financial impact.

Invoice Sales Change: Sale Purchase
Acc. Rec. revenues Order
DB CR DB CR
(PO)
PROCUREMENT PROCESS
$$-01 9000 _ _ _ _ Investment 10000_ _ _ _ V01 500000 _ _ _ _
V02 500000 _ _ _ _
SALES PROCESS
G/L 490000_ _ _ _ Raw mat. GR/IR
Raw material
490000_ _ _ _
Without ERPsim, users would need

DB CR DB CR
Inventory Finished Consuption
change product
Delivery
DB CR DB CR
(Delvry) Goods
Factory Output
490000_ _ _ _ Receipt
Production
to do all of them to complete Goods Issue

Finished Prod.
V01 510000 _ _ _ _
V02 510000 _ _ _ _
a full round.
products Output GR/IR Acc. Pay
DB CR DB CR
DB CR DB CR
10000_ _ _ _
Sales Order
(CusOrd) Investments Cash Raw
Acc. Pay Cash Supplier
DB CR DB CR Cons. Raw materials
DB CR DB CR
Invoice
DB CR DB CR
V01 150000 _ _ _ _
490000_ _ _ _ V02 150000 _ _ _ _
Order
Reservation
(OrdRes)
PRODUCTION PROCESS Production

Order
(PrdOrd)

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Integrated Business Processes WITH ERPsim
PLANNING PROCESS
Planned
Order
Independant (PldOrd)
Requirement
(IndReq) Purchase
Requisition
(PurReq)
F-28
$$-01 140000_ _ _ _
Domestic
With ERPsim, many clerical

Payment Cash Acc. Rec. 9000_ _ _ _
Sales Revenue
DB CR DB CR
transactions are automated by

Customer Inventory
Invoice 490000_ _ _ _
Sales Change: Sale Purchase
Acc. Rec. revenues Order
DB CR DB CR
(PO)
the simulator to put emphasis on
PROCUREMENT PROCESS
$$-01 9000 _ _ _ _ Investment 10000_ _ _ _ V01 500000 _ _ _ _
V02 500000 _ _ _ _
SALES PROCESS
the decision making processes
G/L 490000_ _ _ _ Raw mat. GR/IR
Raw material
Inventory Finished 490000_ _ _ _ Consuption
DB CR DB CR
change product
Delivery
DB CR DB CR
(Delvry) Goods
and the collaboration among the

Factory Output
490000_ _ _ _ Receipt
Production
Automated
V01 510000 _ _ _ _
V02 510000 _ _ _ _
players.
Goods Issue
Finished Prod.
by ERPsim
products Output GR/IR Acc. Pay
DB CR DB CR
DB CR DB CR
10000_ _ _ _
Sales Order
(CusOrd) Investments Cash Raw
Acc. Pay Cash Supplier
DB CR DB CR Cons. Raw materials
DB CR DB CR
Invoice
DB CR DB CR
V01 150000 _ _ _ _
490000_ _ _ _ V02 150000 _ _ _ _
Order
Reservation
(OrdRes)
PRODUCTION PROCESS Production
Order
(PrdOrd)

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Game Layout
20 min 20 min 20 min
20 days 20 days 20 days
Manufacturing Introduction
Purchase Requisition Purchase Order Finished
Raw Materials
(PurReq) (PO) Products
MD61 ME59N CO41 ZADS

MD01 Marketing Expense VK32
Create Planned Create Convert Change Price List
MRP Run Planned Orders Planning
Indep. Req. Purchase Orders
Independent
Planned Order
Requirement
(PldOrd)
(IndReq)
Planning, Purchasing, Production, and Sales and Distribution ROUND 3

Production, Sales and Distribution ROUND 2
Sales and Distribution ROUND 1

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Rules and Additional Information

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The Major Rules
1 No stock, no sales.
2 Customer preferences do not change throughout the same

game.
3 The company displaying the highest company valuation

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

the final balance sheet. Therefore, you shouldn’t sell under
cost at any time during the game.

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Elements of a Winning Strategy
Use the ERP Delays, production Explore different Team organization is

Use the
system ERP
efficiently Do notand
capacities run Delays,and
strategies production
learn Explore
more the than
important
system efficiently liquidity
out ofconstraints
stock. from mistakes and
capacities you think ways
different
are important liquidity constraints the system can
No advanced
elements of the
orders - no stock,
game are important ele- support your
competitor will ments of the game business operations
get the sale and strategy. Find
the optimal way
Have fun! to use the system.
roduction Lab © ERPsim

enterprise
Explore the
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Participant’s Guide
PARTICIPANT’S
GUIDE
ERP Simulation Game
MANUFACTURING
INTRODUCTION
for Learning
Enterprise Resource
http://erpsim.hec.ca Lab Serious games to learn

enterprise systems and
© Léger et al. 2004-2020. ERPsim Lab, HEC Montréal
business analytics

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Participant’s Job Aid
Manufacturing User: $_1 to $_9
Adapted for Fiori and for SAP GUI Manufacturing User: $_1 to $_9
Adapted for Fiori and for SAP GUI
with Fiori Visual Theme Activated
Introduction Game
Initial password: © ERPsim Lab, HEC Montréal
ERPSIM
Introduction Game Initial password: © ERPsim Lab, HEC Montréal
ERPSIM Last Update: June 28, 2023
Last Update: June 28, 2023
FORECAST SALES CALCULATE REQUIREMENTS ORDER MATERIALS RELEASE PRODUCTION PLAN MARKETING BUDGET MAINTAIN PRICES
Create Planned Indep. Req. (MD61) MRP Run (MD01) Create Purchase Orders (ME59N) Convert Planned Orders (CO41) Marketing Expense Planning (ZADS) Change Price List (VK32)
Select Product group and enter
the following information 1
Press Enter or click
1 Make sure the Fixed Vendor 1 1 Open the Prices folder and
double click on Price list
1 field is empty
! Iforderno planned order: Planned
1
Enter your daily amount of
Ignore orange warnings could not be selected marketing expenditure for

2 Verify Distribution Channel
2 Press two more times on Enter 2 each product per area is 12
2 2 Select orders 3
3 Enter your forecasted quantities ! Purchase orders are created 3 4 Modify your prices
3
In the pop-up window, click
in the 2nd date column
2 Nut Blueberry Strawberry Raisin Original Mixed
4 !
If no open requisitions:
No suitable requisitions found ! If conversion fails,
click on to see log 5 $$-F01 500g $$-F02 500g $$-F03 500g $$-F04 500g $$-F05 500g $$-F06 500g
$$-F11 1kg $$-F12 1kg $$-F13 1kg $$-F14 1kg $$-F15 1kg $$-F16 1kg
Starting 30 000 Starting 30 000 Starting 30 000 Starting 30 000 Starting Starting
Inventory Inventory units each None None
Purchase Requisition Purchase Order
Raw Materials
Finished units each Inventory units each Inventory units each Inventory Inventory
35% wheat 35% wheat 35% wheat 35% wheat 50% wheat 30% wheat
35% oat 35% oat 35% oat 35% oat 50% oat 30% oat
0'൱൬
0'൫൬ 0(൰൴1 &2൯൬ ZADS
9.൮൭ 30% nut 30% blueberry 30% strawberry 30% raisins 1 box / 1 bag 40% fruits & nuts
Create Planned Create Convert Marketing Expense
Indep. Req.
Change Price List 1 box / 1 bag 1 box / 1 bag 1 box / 1 bag 1 box / 1 bag 1 box / 1 bag
Purchase Orders
Independent DC10 &86720(5 6 6725 $*(&$3$&,7 <$1'&2676

Planned Order
Requirement Schleswig
(PldOrd)
(IndReq)
&RVWSHU Holstein
Mecklenbourg
Planning Process Procurement Process Production Process Sales Process '&*URFHU\&KDLQV 3URGXFWW\SH &XUUHQWVSDFH DGGLWLRQDO Hamburg Western
Payment Time: 10-20 days XQLWV
Lower Saxony
North
Bremen
Approximate Market Size Finished products 250 000 boxes €500/day Berlin
FINANCIAL STATEMENTS STOCK LEVELS PROCUREMENT TRACKING PRODUCTION SCHEDULE PRODUCTION COST SALES AND MARKET DATA DC12 €360 000 per team per week 19 Stores
DC12 Saxony Brandenbourg
North
Raw materials 250 000 kg €1 000/day Rhine-Westphalia Anhalt
Financial Statements (F.01) Inventory Report (ZMB52) Purchase Order Tracking (ZME2N) Production Report (ZCOOIS) Product Cost Planning (ZCK11) Summary Sales Report (ZVC2)
6833/,(5 6 99 Packaging
1 In Company Code, enter
your <company code>* Shows stock levels for both finished
products and raw materials
Shows the details and the status of
each purchase order Shows released production orders Shows variable and fixed costs for each
Shows aggregate daily sales by product
Lead time (days) 1-5
(bags and boxes)
750 000 units €100/day
West Thuringia
Saxony
Hesse
17 Stores
GUI step
Shows the dates of expected goods For each order, the time released,
finished product Detailed Sales Report (ZVA05) Payment time (days) 20 ),;('&2676 € paid each 5 days)* DC12
Rhineland
Select ALV Tree Control Shows quantities of raw materials Palatinate
2 FIORI step reserved for production delivery started and finished (or to start and
finish if incomplete)
Recalculates costs based on production
capacity and productivity level
Shows sales related info such as sales
revenue by region
DC14
352'8&7,21&21675 $,176
Labor 10 000
South
In Statement Version, enter Procurement Sourcing (ZME13) Manufacturing overhead 7 500
SIM1 CASH FLOW If Target Qty > Conf. Qty Shows daily amounts of fixed costs Price Market Report (ZMARKET) Capacity (units/day) 16 000
production is still pending (overhead, depreciation and S, G & A) S, G & A 20 000 DC12 23 Stores
Liquidity Planning (ZFF7B) Shows the price of each raw material Shows aggregate market sales data of Setup time (hours) 8
Baden Bavaria
Wurttemberg
sold by vendors past 5 days Depreciation (Building) 1 250
3
GUI step
FIORI step Displays an estimate of your cashflow Minimum/Maximum Lot Size 16 000/16 000 Depreciation (Equipment) 33 333
for the coming weeks
*Billed automatically
7RÀQG\RXUFRPSDQ\FRGHUHIHUWRWUDQVDFWLRQ=25* 2UJDQL]DWLRQDO6WUXFWXUH Planning Procurement Production Sales Reports 1/2 2/2

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1
ROUND 1
Login Information
User : $_1 to $_9
Where $=Team Letter
Password: ERPSIM
Client will be provided by the

instructor

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Transaction ZORG: Organizational Structure

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Participant’s Job Aid & Menu 1
ROUND 1

Introduction Game
ERPSIM
1 field is empty
1

2 2 Select orders 3
3
4 !
Raw Materials
0'൱൬
0'൫൬ 0(൰൴1 &2൯൬ ZADS
Indep. Req.
Purchase Orders
Independent DC10 &86720(5 6 6725 $*(&$3$&,7 <$1'&2676

Planned Order
(PldOrd)
(IndReq)
&RVWSHU Holstein
Mecklenbourg
Lower Saxony
North
Bremen
North
6833/,(5 6 99 Packaging
(bags and boxes)
750 000 units €100/day
West Thuringia
Saxony
Hesse
17 Stores
GUI step
Rhineland
revenue by region
DC14
352'8&7,21&21675 $,176
Labor 10 000
South
Baden Bavaria
Wurttemberg
3
GUI step

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Maintain Prices for DC 12
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1
ROUND 1
UDGET MAINTAIN PRICES
g (ZADS) Change Price List (VK32)
t of
1 Open the Prices folder and
for
2 is 12
Verify Distribution Channel
3
4 Modify your prices
5
VK32
ense
Change Price List
Sales Process
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ssword:
Marketing Expense Planning
$_1 to $_9
ERPSIM
1
ROUND 1
TION PLAN MARKETING BUDGET MAINTAIN PRICES
CO41) Marketing Expense Planning (ZADS) Change Price List (VK32)

anned
ted 1 marketing expenditure for
each product per area 2 is 12
3
4 Modify your prices
2
5
Finished
Products
ZADS
VK32
Marketing Expense
Change Price List
Planning
ess Sales Process

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Check Stock Levels 1
nt
Planned Order
nt
(PldOrd)
Planning Process Procurement Process Production Process Sales Process

ROUND 1
ENTS STOCK LEVELS PROCUREMENT TRACKING PRODUCTION SCHEDULE PRODUCTION COST SALES AND MARKET DATA
F.01) Inventory Report (ZMB52) Purchase Order Tracking (ZME2N) Production Report (ZCOOIS) Product Cost Planning (ZCK11) Summary Sales Report (ZVC2)
Shows stock levels for both finished Shows the details and the status of Shows aggregate daily sales by product
* each purchase order Shows released production orders Shows variable and fixed costs for each
finished product Detailed Sales Report (ZVA05)
Shows quantities of raw materials Shows the dates of expected goods For each order, the time released,
reserved for production delivery started and finished (or to start and Recalculates costs based on production Shows sales related info such as sales
finish if incomplete) capacity and productivity level revenue by region
nter Procurement Sourcing (ZME13)
CASH FLOW If Target Qty > Conf. Qty Shows daily amounts of fixed costs Price Market Report (ZMARKET)
production is still pending (overhead, depreciation and S, G & A)
Liquidity Planning (ZFF7B) Shows the price of each raw material Shows aggregate market sales data of
sold by vendors past 5 days
Displays an estimate of your cashflow
efer to transaction ZORG (Organizational Structure) Planning Procurement Production Sales Reports 1/2

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Summary Sales Report
Sales Process 1
ROUND 1
ST SALES AND MARKET DATA
CK11) Summary Sales Report (ZVC2)

s for each
Detailed Sales Report (ZVA05)
roduction Shows sales related info such as sales
level revenue by region
ed costs Price Market Report (ZMARKET)
S, G & A)
Shows aggregate market sales data of
past 5 days
Reports 1/2

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Detailed Sales Report
Sales Process 1
ROUND 1

s for each
S, G & A)
past 5 days
Reports 1/2

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Market Report
Sales Process 1
ROUND 1

s for each
S, G & A)
past 5 days
Reports 1/2

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Product Cost Planning 1
ROUND 1

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Financial Statements 1
Independent
Planned Order
Requirement
(PldOrd)
(IndReq)

ROUND 1
FINANCIAL STATEMENTS STOCK LEVELS PROCUREMENT TRACKING PRODUCTION SCHEDULE PRODUCTION COST SALES AND MARKET DATA

GUI step finished product Detailed Sales Report (ZVA05)

Select ALV Tree Control Shows quantities of raw materials Shows the dates of expected goods For each order, the time released,
revenue by region
In Statement Version, enter Procurement Sourcing (ZME13)
SIM1 CASH FLOW If Target Qty > Conf. Qty Shows daily amounts of fixed costs Price Market Report (ZMARKET)
3
GUI step
FIORI step for the coming weeks
*To find your company code, refer to transaction ZORG (Organizational Structure) Planning Procurement Production Sales Reports 1/2
* To find your company code, refer to
transaction ZORG (Organizational Structure)

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Check Company Valuation 1
ROUND 1

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1
ROUND 1
Let’s play round 1:

20 virtual days
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2
ROUND 2

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Production Constraints
Production capacity:
16 000 units Example

per virtual day
Setup time: ERP

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TED TED CEREALS
LA
TEXTUR / CÉRÉALE
SERVING / CÉRÉALE
SERVING TED
/ CÉRÉALE
SERVING
MUSLI
E S SUGGES S
CEREALS S
TED
/ CÉRÉALE
SERVING
50
MUSLI
SUGGES
CEREAL
0g
TED
ERP S/
SERVIN
CÉRÉAL
MUES
G ES
LI
PROD
UCTIO
N
All
ing nat
for rid ura
theien l
per MU bests
per servin
portiog ES t
/
n (30g) LI
ENLAR
AGRAN
GED
DIESTO
SHOW
POUR
TEXTUR
MONTR
ER E
LA
TEXTUR
50
MUSLI
SUGGES
0g
CEREAL
TED
S/
SERVIN
CÉRÉAL
G ES
ERP
MUES
LI
PROD
UCTIO
N
All
ing nat
for rid ura
theien l
per MU bests
per servin
portiog ES t
/
n (30g) LI
ENLAR
AGRAN
GED
DIESTO
SHOW
POUR
TEXTUR
MONTR
ER E
LA
TEXTUR
50
MUSLI
SUGGES
0g
CEREAL
per production run

TED
S/
SERVIN
CÉRÉAL
G ES
All
ing nat
for rid ura
theien l
MU bests
ES t
LI
ENLAR
AGRAN
GED
DIESTO
SHOW
POUR
TEXTUR
MONTR
ER E
LA
TEXTUR
50
MUSLI
SUGGES
0g
CEREAL
TED
S/
SERVIN
CÉRÉAL
G ES
There’s only one

production line ‒
only one product
16 000 units 8 hours setup time 16 hours of production 16 000 units
can be produced on virtual day 1 on virtual day 2 and 10 667 units on virtual day 3
at a time. on virtual day 2

© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 40
ROUND 2

Introduction Game
ERPSIM
1 field is empty
1

2 2 Select orders 3
3
4 !
Raw Materials
0'൱൬
0'൫൬ 0(൰൴1 &2൯൬ ZADS
Indep. Req.
Purchase Orders
Independent DC10 &86720(5 6 6725 $*(&$3$&,7 <$1'&2676

Planned Order
(PldOrd)
(IndReq)
&RVWSHU Holstein
Mecklenbourg
Lower Saxony
North
Bremen
North
6833/,(5 6 99 Packaging
(bags and boxes)
750 000 units €100/day
West Thuringia
Saxony
Hesse
17 Stores
GUI step
Rhineland
revenue by region
DC14
352'8&7,21&21675 $,176
Labor 10 000
South
Baden Bavaria
Wurttemberg
3
GUI step

© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 41
ame
Convert Planned Orders
User:
Initial password:
$_1 to $_9
ERPSIM
2
ROUND 2
ALS RELEASE PRODUCTION PLAN MARKETING BUDGET MAINTAIN PRICES
ME59N) Convert Planned Orders (CO41) Marketing Expense Planning (ZADS) Change Price List (VK32)
endor 1 Enter your daily amount of

! order could not be selected

If no planned order: Planned
1 marketing expenditure for
each product per area 2 is 12
2 Select orders 3
eated 3 4 Modify your prices
2
:
s found ! If conversion fails,
click on to see log 5
Finished
Raw Materials
Products
CO41 ZADS
VK32
Convert Marketing Expense
Change Price List
Planned Orders Planning
Planned Order
(PldOrd)
ocess Production Process Sales Process
CKING
(ZME2N)
LabSCHEDULE
PRODUCTION Serious games to learn PRODUCTION COST
© ERPsim
enterprise Lab,and
systems
Production Report (ZCOOIS)
HEC Montréal
business analytics
Product Cost Planning (ZCK11)
SALES AND MARKET DATA
Summary Sales Report (ZVC2)

42
Check Stock Levels (Reservations) 2
nt
Planned Order
nt
(PldOrd)

ROUND 2
ENTS STOCK LEVELS PROCUREMENT TRACKING PRODUCTION SCHEDULE PRODUCTION COST SALES AND MARKET DATA
Shows stock levels for both finished Shows the details and the status of Shows aggregate daily sales by product
* each purchase order Shows released production orders Shows variable and fixed costs for each
Shows quantities of raw materials Shows the dates of expected goods For each order, the time released,
reserved for production delivery started and finished (or to start and Recalculates costs based on production Shows sales related info such as sales

© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 43
Production Schedule 2
Planned Order
(PldOrd)
cess Production Process Sales Process

ROUND 2
CKING PRODUCTION SCHEDULE PRODUCTION COST SALES AND MARKET DATA
ZME2N) Production Report (ZCOOIS) Product Cost Planning (ZCK11) Summary Sales Report (ZVC2)
tatus of Shows aggregate daily sales by product

Shows released production orders Shows variable and fixed costs for each
d goods For each order, the time released,
started and finished (or to start and Recalculates costs based on production Shows sales related info such as sales
ME13)
If Target Qty > Conf. Qty Shows daily amounts of fixed costs Price Market Report (ZMARKET)
material Shows aggregate market sales data of
past 5 days
Procurement Production Sales Reports 1/2

© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 44
2
*
Liquidity Planning
Shows stock levels for both finished
Shows quantities of raw materials
each purchase order
Shows the dates of expected goods
Shows released production orders
For each order, the time released,
Shows variable and fixed costs for each
finished product

reserved for production delivery started and finished (or to start and Recalculates costs based on production Shows sales related info such as sales ROUND 2

© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 45
2
ROUND 2

20 virtual days
© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 46
3
ROUND 3

© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 47
Operations in the Full Business Cycle
1
OFFICE
SA
M AL E S
RK AN
ET D
IN
G
ERP
MUES
LI
PROD
UCTIO
N
per
per servin
portiog
/
n (30g)
AN
ERP
MUES
LI
PROD
UCTIO
N
All
ingrnatu
per for idieral
per servin
portiog the nts
/
n (30g)
MU bes
ESL t
I
ENLAR
AL
AGRAN
GED
DIESTO
SHOW
POUR
TEXTU
MONTR
RE
ER
LA
TEXTU
RE
50
MUSLI
SUGGE
0g
CEREAL
STED
S/
SERVIN
CÉRÉAL
G ES
YT
ERP
MUES
LI
PROD
All
UCTIO ingrnatu
N for idieral
the nts
MU bes
ESL t
I
per
ENLAR
per servin AGRAN
portiog GED
/ DIESTO
n (30g) SHOW
POUR
TEXTU
MONTR
RE
ER
LA
TEXTU
RE
IC
50
MUSLI
SUGGE
0g
CEREAL
STED
S/
SERVIN
CÉRÉAL
G ES
ERP
MUES
LI
PROD
S
UCTIO
N
All
ingrnatu
for idieral
per the nts
per servin MU bes
portiog
/
ESL t
n (30g) I
ENLAR
AGRAN
GED
DIESTO
SHOW
POUR
TEXTU
MONTR
RE
ER
LA
TEXTU
RE
50
MUSLI
SUGGE
0g
CEREAL
STED
S/
SERVIN
CÉRÉAL
G ES
All
ingrnatu
for idieral
the nts
MU bes
ESL t
I
ENLAR
AGRAN
GED
al
DIESTO
SHOW
POUR
TEXTU
MONTR
RE
ER
LA
TEXTU
RE
ur
at nts
50
MUSLI
SUGGE
0g
CEREAL
l n ie t
STED
S/
SERVIN
CÉRÉAL
G ES
A l g ri d b e s
i n th e I
r SL
fo M U E
2
SHOP FLOOR
Automated
by ERPsim

© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 48
Suppliers
V01 V02
FoodBroker Inc. Continental Printing Co.
– Lead time of 1 to 4 days – Lead time of 1 to 5 days
– Payment time of 20 days – Payment time of 20 days
– Supply the following materials: – Supply the following materials:
• $$-R01 Nuts • $$-P01 Large Boxes
• $$-R02 Blueberries • $$-P02 Large Bags
• $$-R03 Strawberries • $$-P03 Small Boxes
• $$-R04 Raisins • $$-P04 Small Bags
• $$-R05 Wheat
• $$-R06 Oats

© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 49
Nut Strawberry Original
Forecast Decision
$$-F01 500g $$-F03 500g $$-F05 500g
$$-F11 1kg $$-F13 1kg $$-F15 1kg
Inventory units each Inventory None
Inventory units each
35% oat 35% oat 50% oat
30% nut 30% strawberry 1 box / 1 bag
Forecast decision New Products Available

1 box / 1 bag 1 box / 1 bag
Forecasting is done by product You can now produce these 4 new products
Nut
PRODUCT QUANTITY Blueberry
Strawberry Raisin
Original Mixed
$$-F01 500g $$-F02
$$-F03 500g 500g $$-F04
$$-F05 500g 500g $$-F06 500g
$$-F01 Nuts
$$-F11 500g
1kg $$-F12
$$-F13 1kg 1kg $$-F14
$$-F15 1kg 1kg $$-F16 1kg
Starting 30,000 Starting
Starting 30,000 30,000 Starting
Starting 30,000 Starting
$$-F02 Blueberry
Inventory
500g
units each Inventory
Inventory units units
each each Inventory unitsNone
Inventory each Inventory None
$$-F03 Strawberry
35% wheat 500g 35% 35%
wheatwheat 35% 50%
wheat wheat 30% wheat
35% oat 35% 35%
oat oat 35% 50%
oat oat 30% oat
$$-F04 Raisin
30% nut 500g 30% 30%
blueberry
strawberry 30% 1raisins
box / 1 bag 40% fruits & nuts
1 box / 1 bag 1 box1/box
1 bag
/ 1 bag 1 box / 1 bag 1 box / 1 bag
$$-F05 Original 500g
$$-F06 Mixed 500g
$$-F11 Nuts 1kg
STOR AGE COSTS
$$-F12Blueberry
Blueberry 1kg Raisin Mixed
Product type Current space Cost per additional 50 000 units
$$-F13$$-F02
Strawberry
500g1kg $$-F04 500g $$-F06 500g
$$-F12 1kg $$-F14 1kg $$-F16 1kg
$$-F14Starting
Raisin 1kg
30,000 Finished products Starting 250 000 boxes €500/day
Starting 30,000 None
Inventory units each Inventory units each Inventory
$$-F15 Original 1kg
35% wheat 35% wheat Raw materials 30% wheat 250 000 kg €1 000/day
$$-F1635%Mixed
oat 1kg 35% oat 30% oat
30% blueberry 30% raisins Packaging 40% fruits & nuts
750 000 units €100/day
1 box / 1 bag 1 box / 1 bag (bags and boxes) 1 box / 1 bag

© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 50
ROUND 3

Introduction Game
ERPSIM
1 field is empty
1

2 2 Select orders 3
3
4 !
Raw Materials
0'൱൬
0'൫൬ 0(൰൴1 &2൯൬ ZADS
Indep. Req.
Purchase Orders
Independent DC10 &86720(5 6 6725 $*(&$3$&,7 <$1'&2676

Planned Order
(PldOrd)
(IndReq)
&RVWSHU Holstein
Mecklenbourg
Lower Saxony
North
Bremen
North
6833/,(5 6 99 Packaging
(bags and boxes)
750 000 units €100/day
West Thuringia
Saxony
Hesse
17 Stores
GUI step
Rhineland
revenue by region
DC14
352'8&7,21&21675 $,176
Labor 10 000
South
Baden Bavaria
Wurttemberg
3
GUI step

© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 51
Forecast Sales
Manufacturing
Introduction Game
User:
Initial password:
$_1 to $_9
ERPSIM 3
Last Update: June
ROUND 3 28, 2023
1 field is empty
1
Ignore orange warnings

marketing expenditure for
2 is 12
2 Press two more times on Enter 2 2 Select orders

each product per area
2 3
3 in the 2nd date column
Enter your forecasted quantities ! Purchase orders are created 3 4 Modify your prices
3
2
4 !

Raw Materials
MD61 ME59N CO41 ZADS

MD01 VK32
MRP Run Change Price List
Indep. Req. Purchase Orders Planned Orders Planning
Independent
Planned Order
Requirement
(PldOrd)
(IndReq)

© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 52
Execute MRP
3
ROUND 3

ERPSIM
SELECTION SCREEN RESULTS SCREEN
S CALCULATE REQUIREMENTS ORDER MATERIALS RELEASE PRODUCTION PLAN MARKETING BUDGET MAINTAIN PRICES
(MD61) MRP Run (MD01) Create Purchase Orders (ME59N) Convert Planned Orders (CO41) Marketing Expense Planning (ZADS) Change Price List (VK32)
nd enter
on 1
1 Make sure the Fixed Vendor
field is empty
1 Enter your daily amount of
Ignore orange warnings

2 is 12
2 Press two more times on Enter 2 2 Select orders

3
uantities ! Purchase orders are created 3 4 Modify your prices
3
2
!

Raw Materials
ME59N CO41 ZADS

MD01 VK32
ned Create Convert Marketing Expense
MRP Run Change Price List
q. Purchase Orders Planned Orders Planning
nt
Planned Order
nt
(PldOrd)
Planning Process
© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal
Procurement Process Production Process Sales Process 53
Convert
ufacturing
oduction Game
Purchase Requisitions Into PO
User:
Initial password:
$_1 to $_9
ERPSIM
3
ROUND 3
EMENTS ORDER MATERIALS RELEASE PRODUCTION PLAN MARKETING BUDGET MAINTAIN PRICES
) Create Purchase Orders (ME59N) Convert Planned Orders (CO41) Marketing Expense Planning (ZADS) Change Price List (VK32)
1 Make sure the Fixed Vendor

field is empty
1 Enter your daily amount of
gs
2 is 12
2 2 Select orders
on Enter
3
w, click ! Purchase orders are created 3 4 Modify your prices
2
!
Purchase Order Finished

Raw Materials
(PO) Products
ME59N CO41 ZADS

VK32
Create Convert Marketing Expense
Change Price List
Purchase Orders Planned Orders Planning
Planned Order
(PldOrd)
Procurement Process Production Process Sales Process
MB52)
Lab
PROCUREMENT TRACKING
enterprise
PRODUCTION SCHEDULE
Serious games to learn
© ERPsim Lab,and
systems
Purchase Order Trackingbusiness
HEC Montréal
(ZME2N)analytics Production Report (ZCOOIS)
PRODUCTION COST
Product Cost Planning (ZCK11)

SALES AND MARKET DATA
Summary Sales Report (ZVC2)

54
Track Purchase Orders 3
Planned Order
(PldOrd)

ROUND 3
PROCUREMENT TRACKING PRODUCTION SCHEDULE PRODUCTION COST SALES AND MARKET DATA
B52) Purchase Order Tracking (ZME2N) Production Report (ZCOOIS) Product Cost Planning (ZCK11) Summary Sales Report (ZVC2)
finished Shows the details and the status of Shows aggregate daily sales by product
rials each purchase order Shows released production orders Shows variable and fixed costs for each
aterials Shows the dates of expected goods For each order, the time released,
on delivery started and finished (or to start and Recalculates costs based on production Shows sales related info such as sales
Procurement Sourcing (ZME13)
F7B) Shows the price of each raw material Shows aggregate market sales data of
cashflow
s
ructure) Planning Procurement Production Sales Reports 1/2

© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 55
Procurement Sourcing 3
Planned Order
(PldOrd)

ROUND 3
PROCUREMENT TRACKING PRODUCTION SCHEDULE PRODUCTION COST SALES AND MARKET DATA
B52) Purchase Order Tracking (ZME2N) Production Report (ZCOOIS) Product Cost Planning (ZCK11) Summary Sales Report (ZVC2)
finished Shows the details and the status of Shows aggregate daily sales by product
rials each purchase order Shows released production orders Shows variable and fixed costs for each
aterials Shows the dates of expected goods For each order, the time released,
on delivery started and finished (or to start and Recalculates costs based on production Shows sales related info such as sales
Procurement Sourcing (ZME13)
F7B) Shows the price of each raw material Shows aggregate market sales data of
cashflow
s
ructure) Planning Procurement Production Sales Reports 1/2

© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 56
3
ROUND 3

20 virtual days
© ERPsim
enterprise Lab,and
systems
business analytics
HEC Montréal 57
ERP Simulation Game Last Update: August 1, 2023
MANUFACTURING
INTRODUCTION

for Learning
Enterprise Resource

© ERPsim
enterprise Lab,and
business analytics

Manufacturing Intro Game Slides

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ERP Simulation Game Last Update: August 1, 2023

A Serious Game Powered by ERPsim

Lab Serious games to learn

Lab Serious games to learn

Lab Serious games to learn

Lab Serious games to learn

Lab Serious games to learn

Blueberry Raisin Mixed

Lab Serious games to learn

NUT BLUEBERRY STRAWBERRY RAISIN

Lab Serious games to learn

Lab Serious games to learn

– €360 000 per team per week

West North Rhineland

Grocery stores 17 Grocery stores 19 Saarland

South Baden Bavaria

Lab Serious games to learn

$$-F01 Nuts 500g $$-F01 Nuts 500g

Lab Serious games to learn

Lab Serious games to learn

Value Company Discount Rate

(Current Profit / Nb. Rounds Played) * 12

Lab Serious games to learn

Company Risk Rate*: 3%

Lab Serious games to learn

Company credit ratings are determined using the lookup table.

Lab Serious games to learn

Market Risk Rate 7% (Current Profit / Nb. Rounds Played) * 12

Lab Serious games to learn

Lab Serious games to learn

Transactions required to complete

the full integrated processes,

including the financial impact.

Without ERPsim, users would need

to do all of them to complete Goods Issue

PRODUCTION PROCESS Production

Lab Serious games to learn

With ERPsim, many clerical

transactions are automated by

the simulator to put emphasis on

and the collaboration among the

Lab Serious games to learn

MD61 ME59N CO41 ZADS

Planning, Purchasing, Production, and Sales and Distribution ROUND 3

Lab Serious games to learn

Lab Serious games to learn

2 Customer preferences do not change throughout the same

3 The company displaying the highest company valuation

4 You must behave ethically at all times.

The end of game inventory will be valued at cost price in

Lab Serious games to learn

Use the ERP Delays, production Explore different Team organization is

roduction Lab © ERPsim

A Serious Game Powered by ERPsim

http://erpsim.hec.ca Lab Serious games to learn

Lab Serious games to learn

Ignore orange warnings could not be selected marketing expenditure for

2 Press two more times on Enter 2 each product per area is 12

Independent DC10 &86720(5 6 6725 $*(&$3$&,7 <$1'&2676

Lab Serious games to learn

Client will be provided by the

Lab Serious games to learn

Lab Serious games to learn