I would strongly recommend maxing out TQM as soon as possible. Don't worry about how much "net income" is available, just borrow (or spend less somewhere else). The reason is that these effects are cumulative. If you just invest $500 or $0 in some for a couple rounds, you'll never realize the benefit. Same is true for HR, do the max every round. In addition, watch your proforma income statement before and after TQM changes. When our group did this, we invested $1500 ($4M dim returns) in all areas the first round it became available, and the effect on costs offset the expense (a net $0 spend). So why not invest in all of them right away?
If you're profitable enough to justify maxing everything out, then go for it! However, many games are tighter and there isn't enough profit to justify maxing everything out. I also put a high priority on keeping each company profitable each year, as tanking your profit has negative effects in the game.
I would strongly recommend maxing out TQM as soon as possible. Don't worry about how much "net income" is available, just borrow (or spend less somewhere else). The reason is that these effects are cumulative. If you just invest $500 or $0 in some for a couple rounds, you'll never realize the benefit. Same is true for HR, do the max every round. In addition, watch your proforma income statement before and after TQM changes. When our group did this, we invested $1500 ($4M dim returns) in all areas the first round it became available, and the effect on costs offset the expense (a net $0 spend). So why not invest in all of them right away?
If you're profitable enough to justify maxing everything out, then go for it! However, many games are tighter and there isn't enough profit to justify maxing everything out. I also put a high priority on keeping each company profitable each year, as tanking your profit has negative effects in the game.
@Joe Bockover how did you do on your capsim exam? Any tips you can give me since I'm about to do it within the next 2 weeks. thanks.
Bveku
Thanks for the explanation. It's very helpful.
You're very welcome!
Very helpful, very well explained, thank you
Thank you for the explanation, clutch!
We are starting off with 1500 with all of the segments except for 5 areas in which we did 1850. Is it too much?
Inputs in this video are not based on the income statement. Still have no idea what's going on.
you spend too little. should spend 1500 each round 4 & 5, 1000 each round 6.
Hello, can i communicate with you through email or something to ask some questions? Thank you.