Key Learnings
Industry: C77390, Team Erie (E2)
MPE 15; April 2016
Contents
Performance till date Trends, Metrics
Overall Strategy
Module-wise Inferences
- R&D
- Marketing
- Production
- Human Resources
- TQM
- Finance
Forecasting Method
Performance Trends
Performance Metrics
Metric Allocations
Cumulative
Profit
Stock Price
5% 15% 15% ROE
5% 20%
ROA
5%
20%
15%
Market Share
Market Cap
ROS
Asset
Turnover
Performance Metrics
Market Share
Balanced Scorecard
Strategy
R&D
Our strategy included the following:
Reduction of R&D cycle time through TQM initiatives
Helped us not only with cycle times but also with the possibility
of higher automation, and thereby increasing contribution
margin
Marketing
Our strategy in Marketing included the following:
Be aggressive during earlier rounds - in terms of promo &
sales
May reduce contribution, but will help increase market share greatly
Cost accrued in initial rounds but benefit will last till the last rounds
Marketing (cntd)
Production
Our strategy in Production included the following:
Estimate a products market share one or two years in
advance
Human Resources
Our strategy in Human Resources included the
following:
Spend just enough on recruiting to keep the same
previous years turnover rate or slightly lower
Provide just enough training hours, so that there is
no overtime, i.e overtime percent doesnt cross 0%
Engage in labour negotiations - offer higher
incentives, so that we can retain labour (luckily we
could afford this, sorry to our fellow teams)
Important to reduce material costs through TQM
initiatives to be able to bear higher labour costs in
last round
Finance
Our strategy in Finance included the following:
Relied upon using long-term debt even though it
came at a higher interest rate - as current year shortterm debt ended up locking our finances for the next
year
Kept 10% of forecasted sales revenue as cash
reserve to avoid emergency loans
In most of the rounds our actual sales were more than our
potential sales, so we avoided emergency loans
Forecasting Method
MTBF:
Position
Fine
cut circle - radius of 2.5 units. Farther they are from the ideal spot the score is
reduced. Just beyond the fine cut, scores drop 1%. Halfway across rough cut,
scores drop 50% and edge of the rough cut, scores drop 99%
Hence
Srinivasa Adithya
Karthik Hegde
Gopalakrishnan Krishnan
Gayathri Vittal
Vikrant Sharma
Thank You