Factory - Production Management

In the Factory simulation, participating teams take over control of a virtual agricultural machinery factory as a management team responsible for production. Data must be analyzed, decisions made, and optimized. The goal is to operate the factory effectively and efficiently and to maximize the Performance index.

The simulation models the operation of a company that producing and delivering headers, trailers and other combine components. The company is part of an international concern, but it is an independent economic unit that is independently responsible for its effective operation and decisions. The finished products to be manufactured are ordered by the corporate concern. Since we deliver the products within the company, the prices are determined by the parent company.

The Performance Index includes Profit Reserve, Production Plan, Fulfillment, Average Quality, as well as Penalty Points in case of improper operation.

How the Factory simulation software works:

The students, individually or in teams take over the management of the virtual company modeled by the software.

The virtual company is managed by making strategic decisions for annual periods. The software provides a written report on the results of the decisions, and the main indicators (profit, cash flow, income statement etc.) are also represented on a graph.

The software can model up to 8 periods, i.e. 8 virtual years pro rounds.

In the simulation, the successful operation is evaluated by examining several factors together: profitability, quality, fulfillment of the production plan, fulfillment of orders.

The decisions:

Production: The most important area of ​​the game. Setting of production factors, such as raw material, workers, machines, planning, setting the amount of shifts/overtime.

HR: Human resources are indispensable for the operation of the company. You have to make separate strategic decisions for production workers, engineers, logisticians and researchers.

Investment: In order to be able to produce the right quantity and quality of products, we need the right technical background. You can ensure this by precisely planning real estate, technical equipment, vehicles and warehouses. In this area, it is possible to invest as well as to rent, it is up to the players to decide which option to use and to what extent.

R&D: Research and development are essential in the life of a producing company. Quality factors: Average quality of raw material, engineer's training, R+D level.

Projects: By launching these, you can specialize and modernize your company in order to operate more efficiently. You can currently choose from 4 projects.

Advantages and learning points:

The program provides an opportunity for participants in the simulation to apply basic production management knowledge in a practical way and to gain insight into the strategic issues of production and management.

The structure of the program helps in synthesizing the knowledge of economic and technical students and putting it into practice.

The Factory requires the operation of many factors together, as it usually characterizes the real world. Careful planning is also essential during the game.

Since the participants have to filter the appropriate data from various financial and production and sales reports (balance sheet, profit and loss statement, cash flow, market research forecast), the game significantly tests and develops analytical skills.

As a result of the above, the effective implementation of teamwork, which is so important in life, is also essential here for a successful role in the game.


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