Management Information System Project

DD

STORY OF HOW WE STAYED IN THE MIDDLE

Team ERPSIM

First off, let us introduce ourselves:

Araceli Santos

BriAnna Taylor

Tyler Ailshie

Maddison Cox

INTRODUCTION:

WHO ARE WE?

TEAM DD

Order of Presentation:1. Overall Financial Situation2. Sales3. Charts and Data4.Additonal Capacity5. Area6. Pricing7. Team Strategy8. Conclusion

Competition Ranking: 8th

FINANCIAL SITUATION

1 2 3 4 5 6 7 80

50000000

100000000

150000000

200000000

250000000

Bank Cash Account per Quarter

Total

Quarter

Euro

s

Team Finances:• Liquidity was

steady throughout quarters; never in the red

Overall profitability:• 5.8 MILLION EUROS • 19.5 MILLION TOTAL

SALES

INVESTMENTS:• MARKETING: 1 EURO

PER PRODUCT • SET UP TIME

REDUCTION: 5.3 HOURS

NET INCOME VS REVENUE

1 2 3 4 5 6 7 80

100000000

200000000

300000000

400000000

500000000

600000000

Revenue Versus Net Income

Sum of Net Income/LossSum of Calculated Revenues

Quater (Day 30)

SALES

1 2 3 4 5 6 7 80

100000

200000

300000

400000

500000

600000

700000

800000

900000

Overall Sales on Products

1kg Mixed Fruit Muesli1kg Nut Muesli1kg Original Muesli500g Blueberry Muesli500g Raisin Muesli500g Strawberry Muesli

Quarter Round

net

inco

me

• Our total sales as a team was one of our major strengths

• We ranked third out of all teams in total sales• € 19,547,904.55

• Top Selling Products• 1Kg Nut Muesli• 1Kg Mixed Fruit Muesli• 1Kg Original Muesli

ADDITIONAL CAPACITY

1 2 3 4 5 6 7 80

50000

100000

150000

200000

250000

300000

Production Quantity per Quarter

1kg Mixed Fruit Muesli1kg Nut Muesli1kg Original Muesli500g Blueberry Muesli500g Raisin Muesli500g Strawberry Muesli

Quarter

Qua

ntit

y

• Addition capacity was NOT used.

• We decided against additional capacity.

• We realize it might actually have been what we needed

AREA: COMPARISON BETWEEN TEAMS IN THE WEST

1 2 3 4 5 6 7 8WE

0

50000

100000

150000

200000

250000

300000

350000

Total Units Sold For Teams D and L in the West Per Quarter

DD LL

Quarter Per Team

Uni

ts S

old

• Had products that were 500g as well as products that were 1kg.

• We had an advantage against Team LL until Quarter 4

• In quarter 8, we surpassed Team LL

PRICING• EVEN THOUGH WE HAD VERY HIGH SALES,

WE WERE NOT AS PROFITABLE AS WE WOULD HAVE LIKED

• OUR TEAM STRUGGLED IN CONTAINING HIGH PROFIT MARGINS FROM OUR PRICING• GROSS MARGIN % - 50.423

• RANKED 9TH • NET MARGIN %- 30.104

• RANKED 8TH• QUARTER 4 PRICES WERE INCREASED AND

HAD A NEGATIVE IMPACT ON OUR SALES • FURTHERMORE, AS LONG AS THE PRICES

WERE KEPT BELOW THE MARKET PRICE, THE HIGHER THE VOLUME OF MUSELI SOLD

4.24

4.34

4.49 4.6

5.43

4.23

4.26

4.27

4.32

4.34

4.35

4.45

4.49

4.55

3.35

3.55

3.65

4.15

4.17

4.32

4.35 4.6

4.74

3.35

3.45

3.55

3.65 3.7

3.74

3.85

3.95

3.99

4.02 3.7

3.8

3.81

3.93

3.95

3.97

3.99

3.35

3.39 3.4

3.47

3.55 3.7

3.79

3.98

3.99

4.13 3.1

3.11

3.15

3.31

3.35 3.4

3.79

3.98 4

4.05

4.25

3.12

3.16

3.33

3.45 3.5

3.53

3.89 3.9

3.99 4

1 2 3 4 5 6 7 8

0100002000030000400005000060000700008000090000

100000

Pricing for 1kg Nut and 500kg Strawberry Per Quarter

1kg Nut Muesli 500g Strawberry Muesli

Pricing per Quarter

TEAM STRATEGY: OUR THREE STEP PROCESS

1.What was our goal?

We tried to be Walmart

(Walmart strategy: Low Prices, High

Variety)

2. How did we make ourselves different?

• Produced 1kg and 500 g boxes to enhance variety

3. Invest, Invest, Invest!

Marketing Execution:• 1 Euro per product

Investment: • Set up time reduction

was at 5.3 hours

CONCLUSION• OVERALL, WE REALIZED WE COULD NOT KEEP UP WITH

DEMAND. • OUR PRICES WERE TOO LOW, PROFIT MARGIN NOT HIGH

ENOUGH • ADDITIONAL CAPACITY SHOULD HAVE BEEN INITIATED.