Demand factor - Training

29.01.2015

Training - one of new features in GMC simulator. it is very similar to management budget and affects same productional and financial performance of the company, but less powerfull:

  1. Demand
  2. Broken parts
  3. Absence / sickness assembly workers

 

Elasticity of demand from training in 1 period

Effect of increased training on demand has a diminishing effect. Impact of training on demand is almost the same for all products and markets, maximum increase in demand is possible within 5-6%. Graph shows the results of tests of several control groups. Vertically - relative change in demand compared to the previous period, horizontally - absolute value of training.

Influence of competitors is negligible. Similarly to the management budget, effect of training on demand is cumulative, investments in training for previous period are taken into account in amount of 30%.

 

Broken parts

Effect acts evenly on all products, maximum reduction in broken parts can be achieved from 3% to 2% of produced parts. Effect is cumulative, investments in training of previous periods are taken into account. Vertical - absolute value of broken parts in % during the production of parts. Horizontal - absolute value of training.

 

Absence / sickness assembly workers

Everything is the same as for broken parts. Training reduces the hours of sickness, which reduces the load of assembly workers, effect is diminishing. Vertical - absolute value of hours of absence of assembly workers. Horizontal - absolute value of training.

 

Hints

  1. Residual effect on demand from training is 30%
  2. Dependence of demand on training is expressed by a power function
  3. Effect on demand from training is equal for all markets and products
  4. Dependence of demand on training is not influenced by competitors in the group

 

Automatic demand forecast based on training is built into the Calculation model, which can be purchased in our store.