ERPsim is a software developed to assist learners gain practical knowledge of running businesses. The learners are profit-maximizing managers. The net income earned affects their decisions. This is indicated in each simulation stage. Students therefore, are required to continuously make adjustments in order to maximize the profits. The lesson design involves simulations of real life day to day management of a firm, for example, a manufacture, a distributor of goods and a reseller. HEC Montréal (2017)
The project requires that the students be divided into small competing groups of four to five each. Each group of students manages their own firm. The study is packaged as games where the business manager gets into contact with suppliers to make orders for goods and customers to deliver their requests and the manager is able to make strategic decisions from them. The students have to be sharp in assessing and reporting each transaction.
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"Cost Accounting".
The groups are required to make determination over each of the three quarters which is represented by 30 days. Some of the decisions to be made include planning and projection of products. This involves projecting required raw materials that would be processed or packaged to inventory. The expected sales helps in stocking inventory. The cash flows from payments and cash received helps the students manage liquidity, inventory and receivable management and decisions regarding payables. HEC Montréal (2017)
The ERPsim tool also assists in making decisions regarding financial commitment in fixed assets. There is a fixed number of units to produce each day. The groups decide to either increase the number of units produced or decrease the costs incurred in production like time which has a direct impact on the cash budget. A firm may be required to finance through debt in case of insufficient cash which increases the fixed assets of a firm.
The simulation models require users make decisions regarding products prices. The prices are set using the parameters: costs of raw material, labor and overhead. After the 5th day, the market aggregate prices for all products are available. Each team can utilize the market prices in pricing their products. Another important decision involves the advertising strategy. The teams determine the amounts to spend on advertisements, the targeted groups, location and channels of delivery of the advertisements. These decisions go a long way in creating a unique brand for the company and products. This is a key determinant in providing a product edge and thus competitive advantage over similar firms. HEC Montréal (2017)
The salient features of ERPsim include the interface between the learners and the simulator. All determinations are introduces into the ERPsim and the reports are pulled from its systems. These are important experiences with the tool that brings a number of advantages. ERPsim has advanced features which may be technical for first time users. However, the system can be configured to allow the first time users acquiesce themselves first before utilizing the advanced features.
The tool assist the learners acquire concepts required for enterprise systems. They are also able to analyze the financial reports to a higher extent and utilize the results in important decision making. The process requires group work which results in students working closely to deliver. This effects tremendous team work and learning from peers. ERPsim assists students strategize in practical company set up. The technical and managerial skills gained work a long way in preparing the learners for high ranking roles in both private and public sector. The tool enables users develop critical thinking and apply knowledge gained in class. HEC Montréal (2017)
The ERPsim has brought advancement in application of technology for business decision making. Students are greatly impacted on real life scenarios of making strategic determinations. The learners also assess and report on the impact of the strategic decisions. The tool is designed to be very user friendly and assists first time users understand its requirements. HEC Montréal (2017)
