ERPsim on Paper Léger, P.M. (2011) Introduction to the business processes, ERPsim on paper ERPsim Lab.

Purpose a paper-based simulation and it is essentially an introduction to business process and information flow within a small company. In teams of 2-3, you will manage the operation of a virtual manufacturing company where you will manufacture paper, and design a business process to help them support your operations. produce a finished product from a raw material and create the business process, which lets you track their profits throughout the game.

Purpose Key Outcome: A fundamental understanding of the different business documents and the flow of those documents for: billing invoicing paying a customer, paying for inventory and purchases etc……

Your company SupplierCustomer Your company Raw material (Sheet 8.5 x 11) Finished product (Square papers)

Raw material (Sheet 8.5 x 11) Finished product (Square papers) Your company: Specialist in the manufacture of square papers

Beginning of the game Purple Cash Register= $10 Cash Register Team ______ Starting balance $10 1 sheet of raw material SupplierCustomer Your company

Rules The simulation is composed of 5 rounds of approximately 4 minutes. The length of the game is about 30 minutes Teams have 5 minutes to organize their operations and decide how to organize internally to perform the task.

How to play The customer’s dice (market price) Sales of finished products Delivery Payment by customer of T-2 delivery The supplier’s dice (Price of raw material) Raw material purchase Receipt of goods and payment of T-1 purchases 3 to 4 minutes

Sales Order (Orange) At each turn, the instructor throws the market (6 sided) dice It represents the price at which the customer is ready to buy. Each team is free to sell as many papers as they hold in inventory. To indicate interest to sell, one student per team must indicate: Team letter Quantity to sell Selling Price (from roll of 6 sided die) Total $

Billing Invoice (Blue) One student per team (the runner) is responsible for delivering the pieces of paper sold. The team must provide an Invoice (Blue) with: The quantity sold The selling price The amount payable to the customer. The term of payment is 2 turns of play (you get paid 2 turns later) so …

Cash Register (Purple) The runner must come back two turns later with Cash Register (Purple) to receive customer’s payment.

Purchase Order (Pink) Professor throws the supplier’s (8-sided) dice. It represents the purchasing cost of one sheet of White (material) 8 "x 11“ papers. *You may purchase a max of 2 sheets No buying on credit One student per team must indicate the interest to purchase sheets by writing: The desired quantity The Cost of the material to purchase The total purchase price on the Purchase Order (Pink) The runner will bring the Pink Purchase Order up

Payment & Delivery Check (Green) Delivery is made one turn later. To take possession of the raw materials payment must be made on the spot: The runner brings: Check (Green) and Cash Register (Purple) to receive Raw Material (white sheet)

You have 5 minutes to prepare Purple Cash Register 1 sheet of raw material SupplierCustomer Your company Raw Material (Sheet 8.5 x 11) Finished Products (Square papers) Cash Register $10 Sales Order Invoice Billing and delivery Purchase Order Check Payment to the supplier

You have 5 minutes to prepare The customer’s dice (market price) Sales of finished products Delivery Payment by customer delivery (T-2) The supplier’s dice (Price of raw material) Raw material purchase Receipt of goods and payment of T-1 purchases

Game turn: 1/5 The customer’s dice (market price) Sales of finished products Delivery The supplier’s dice (Price of raw material) Raw material purchase

Game turn: 2/5 The customer’s dice (market price) Sales of finished products Delivery The supplier’s dice (Price of raw material) Raw material purchase Receipt of goods and payment of Turn 1 purchases

Game turn: 3/5 The customer’s dice (market price) Sales of finished products Delivery Payment by customer for Turn 1 sales The supplier’s dice (Price of raw material) Raw material purchase Receipt of goods and payment of Turn 2 purchases

Game turn: 4/5 The customer’s dice (market price) Sales of finished products Delivery Payment by customer for Turn 2 sales The supplier’s dice (Price of raw material) Raw material purchase Receipt of goods and payment of Turn 3 purchases

Game turn: 5/5 The customer’s dice (market price) Sales of finished products Delivery Payment by customer for Turn 3 sales The supplier’s dice (Price of raw material) Raw material purchase Receipt of goods and payment of Turn 4 purchases

Business Questions What is your profit at the end of round 5? How many products do you currently have in stock? How much do you owe to your supplier? How much does your customer owe your company?