After a week's simulation study and the efforts of all the team members, our company F successfully obtained the qualification of one of the six simulation companies, and made great achievements: only in product research and development, I successfully developed P2 and P3 products (due to market reasons, our P2 has never been put into production), and in market development, the company successfully entered the domestic, Asian and international markets from the original simple local market, and the production line was updated and improved. From the original three manual production lines and one semi-automatic production line to one manual production line, one semi-automatic production line and four automatic production lines, our company's production capacity jumped to the top of six companies, and we also made many mistakes in financial issues, but finally in the sixth year, my owner's equity increased to 75M, an increase of 9M compared with the initial operation.

I. Company profits:

We should understand that the essence of enterprise management is to maximize shareholders' rights and interests, that is, to maximize profits. As can be seen from the corporate income statement, the main ways to make profits are to expand sales and control costs.

Expand sales: the profit mainly comes from sales revenue, which is determined by two factors: sales quantity and product unit price. There are several ways to increase sales:

1. Expand the existing market and open up new markets;

2. Develop new products;

3. Expand or transform production facilities to improve production capacity;

4. Reasonably increase advertising efforts and carry out brand promotion.

5. Increasing the unit price of products is restricted by many factors, but enterprises can choose products with higher unit price for production.

6. Control cost: The product cost is divided into direct cost and indirect cost.

Direct costs mainly include raw material costs and labor costs that constitute products. In ERP sand table simulation, the cost of raw materials is determined by the BOM structure of products, and there is no room for reduction without considering alternative materials; The processing cost of the same product produced by different production lines is the same, so the direct cost of the product is fixed in ERP sand table simulation.

From the perspective of cost saving, we divide indirect costs into two categories: investment expenditure and expense expenditure. Investment expenditure includes purchasing factory buildings and investing in new production lines. These investments are necessary for the production capacity of enterprises. Expenses include marketing advertisements, loan interest, etc. Can be saved through effective planning.

The following is the advertising map of our F company:

It should be noted that the figure data includes part of the input of ISO9000 and ISO 14000 international certification from the fourth year, and with the increase of product varieties and the continuous expansion of sales market, the advertising volume in six years is not comparable. The purpose of this picture is to see the advertising volume of each year more intuitively.

In the first year, we put in the advertisement of 15M, which won the leading position in the local market, got the largest order and of course the biggest profit. However, due to the 3Q account period and cash flow difficulties, we have to borrow frequently and bear heavy interest in future operations. From the second year to the fourth year, we successfully developed P2 and P3 products, but in view of the severe market competition, we resolutely decided to give up P2 and directly advertise P3 products, relying on P 1 to make P3 products bigger and stronger. So you don't need a lot of advertising fees to receive the right order. As can be seen from the picture, we spend less on advertising. However, in the fifth and sixth years, with the continuous expansion of the market and the improvement of market requirements, the certification fees of ISO9000 and ISO 14000 are necessary expenses in advertising fees, so the advertising fees have increased.

In the fourth year, the advertisement failed to win enough orders because of mistakes, so the ultimate owner's equity was negative, which led to the bankruptcy of the company. As a last resort, we sold a series of financing methods, such as the factory, which won the opportunity of rebirth for the enterprise.

The following analysis of financing loans and discounts:

Capital is the blood of an enterprise and the support of any activity of an enterprise. In the ERP sand table simulation, the enterprise is not listed, so its financing channels can only be borrowing from banks, usury and discounting accounts receivable. However, whether it is a long-term loan, a short-term loan or a usury loan, 20M is the basic loan unit. The longest term of long-term loans is five years, and the term of short-term loans and usury loans is one year. If the loan is less than one year, the interest will be calculated according to one year, and will be returned after the loan expires. Accounts receivable can be discounted at any time, and the amount must be a multiple of 7, regardless of the account period of accounts receivable. There is no 7M accounts receivable to pay the discount fee 1M, and the remaining 6M is put into the cash bank as cash.

In the case of insufficient funds, enterprises should consider loans and actual needs. Long-term loans are conditional, that is, the owner's equity of the previous year ×2- long-term loans. Therefore, in the early stage of business operation, long-term loans should be considered first, with low interest and long use time. It's best to borrow enough long-term loans at one time, because if you don't manage well, you won't have a chance to borrow them in the future. If your enterprise has reached this stage, it is more cost-effective to calculate short-term loans, usury and discount according to the enterprise's own situation.

From the figure below, we can see the operating conditions of the company after the inflection point of the fourth year.

As can be seen from this figure, we started our first year of operation with the owner's equity of 66 million yuan in the first year. From the first year to the fourth year, we were in a state of decline, and the fourth year was -5M, which led to the inevitable bankruptcy of our F company. After discussion, we decided to sell the factory and discount all the unexpired funds to maintain the company's operation. The last stop. So, in the fifth year, we began to turn losses into profits. In the sixth year, the owner's equity of our company exceeded 66 million in the first year and reached 75 million.

Second, enterprise management

The plan is that at the beginning of the establishment of each enterprise, the CEO will lead all members to formulate sales plans, investment transformation plans, production plans, capital plans, market development plans and product research and development plans.

A good sales plan must be a plan that conforms to the characteristics of the enterprise itself and suits the development status of the enterprise.

Equipment investment and transformation is one of the strategies to improve production capacity and ensure the sustainable development of enterprises. Enterprises need to consider the following factors when investing in equipment:

1, the market demand of various products;

2. The current production capacity of the enterprise;

3, the research and development process of new products;

4. equipment 5. Investment analysis;

6. New equipment. What kind of products are used for production? Source of funds and installation location.

8. equipment 9. The specific online time and required material reserve are 10.

Third, other aspects.

We believe that "menu" is also one of the keys to enterprise management and plays a key role in the withdrawal of funds from enterprises. The payback period of orders directly affects the liquidity of enterprises and has an important impact on the development of new markets and new products.

The following is the order statistics obtained by our F company at the order fair in the past six years:

After six years of operation, we found that the order quantity is the purpose of enterprise production and the source of enterprise interests. However, the production capacity of the enterprise is the key to accept the order quantity. Therefore, it is necessary to budget this year's production capacity in advance every year in order to win a moderate order at the ordering meeting. With fewer orders, enterprises can't operate at full capacity, and profits will be reduced. Of course, when you receive an order for some reason, remember not to stop production, but still put into production on the whole line to prepare for the coming year. We will think of JIT just-in-time production, but it is not feasible in sand table simulation operation. On the contrary, when you have inventory, you can get more orders or some urgent orders for next year, and early delivery is also a good way for enterprises to make profits. It should be noted that our simulation operation is time-limited, that is to say, in the sixth year, we only need to complete the order demand, and there is no need for a large amount of inventory to occupy funds.

ERP sand table simulation training, the system will show the whole operation, internal management and division of labor of an enterprise in front of us, and the operation of the enterprise will be completed by us from procurement, production and sales. It is that we have a general understanding of the operation of an enterprise, and also let us see the situation of an enterprise competing for survival in the market, which has certain enlightenment for me to go out of campus and go to society in the future.