Level 1: Demand Management Problem 1 (Sample Packs) 1 Instructions Scenario Setup You are about to...

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Level 1: Demand Management Problem 1 (Sample Packs)

Instructions

Scenario Setup

You are about to enter a simulated world with nine scenarios that depict meetings, discussions, and decisions around the launch and ongoing support of a new ABC Company drug . The processes and decisions in the simulation are realistic and reflect the day-to-day work environment. However, Compedur, the drug named in these scenarios, is fictional and details of the discussions, compiled from experiences with several products, have been modified.

Your Role

In these scenarios, you will observe ABC Company employees discussing issues related to production, capacity management, and quality. In addition to observing the discussions, you will have the opportunity to review several resources, such as e-mails, reports, and phone messages, that contain information relevant to the decisions the ABC Company employees must make.

You will then be asked to select the action you believe is most appropriate, given the situation and the information supplied.

After submitting your selection, you will be provided feedback from experts who explain the plusses and minuses of each selection and who identify the best course of action to take.

Getting Started

It is recommended that you follow the scenario path from Level 1 through Level 3; however, you may enter any scenario you wish using the map below.

Click the Next button to begin Level 1 of the simulation, or click a link to proceed to that scenario.

Instructions (Text on screen. No audio)

Level Scenario

1: Demand Management

Sample Packs Trade Production Quality

2: Network Capacity

Staffing Allocating Production

Recalls

3: Technology Transfer

Assigning Resources

Selecting Third-Party Operations

Overseeing Third-Party Operations

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Instructions

If you have not already done so, you may want to review the following information before starting the scenario:

• Manufacturing and Quality Beliefs and Strategies• Supply Chain Management

Also, on each page, you will see:

A glossary icon you can use to search for definitions of unfamiliar terms and acronyms.

A help icon you can use to review the instructions about the scenarios.

Icons you can use to go to the other paths at this site.

Advance Information

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Meeting Setup

You are about to view a meeting of the Compedur launch team at ABC Company headquarters in Indianapolis, one week after the launch date.

Attendees:

Launch Leader, Helen Douglas

Marketing, Dan Scott

Replenishment, Susan Cross

Demand Management, Mary Pope

The Issue:

Demand for Compedur samples is higher than anticipated. The purpose of the meeting is to determine whether to allocate manufacturing resources to sample production or trade production.

Instructions (Text on screen. No audio)

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The Meeting Starts

Fade from black to 01_01_01_a_ABC Company HQ

Dissolve to

01_01_01_b_group

Launch Leader (Douglas):

Good morning, everyone. Before we start, I just wanted to update you on the status of the label error. Susan, I know you just got back from vacation. Are you current on this?

Audio: 01_01_05_douglas

Graphic Description/Storyboard

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Are You Current?

Dissolve to

01_01_02_cross

Replenishment (Cross):

I have read the impound notice, but I admit I do not know the whole background.

Audio 01_01_02_cross


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Recapping the Past

Dissolve to:

01_01_03_a_douglas

On, “There was a line” Dissolve to close up of jpeg of the label

01_01_03_b_label

On “Then we had to make” Dissolve to

01_01_03_c_group


Okay, let me bring you up to date. After three or four lots of physician samples went out, we discovered a labeling error on the 40 milligram adult pack. There was a line that referred to a blister pack that was not included in the sample package. We had to recall the lots and get a new label approved and printed. Then we had to make new lots for the new sample packs. This normally takes at least 10 weeks; we got it done in 3.

Oh, and just to make things more complicated, we are using a contractor for packaging the samples.

Audio 01_01_03_douglas


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A Problem for Sales

Dissolve

01_01_04_scott

Marketing (Scott):

This situation was a problem for sales. They really wanted to have a full supply of samples in all dosages to distribute.

Audio: 01_01_04_scott


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Leave the Problem Behind

Dissolve to

01_01_05_douglas

Crop out the guy in the photo.


The good news is the label issue is behind us. We are now making trade product at full production. The national publicity around this launch is really driving demand, so we need to be at full production to build up inventory.

Audio: 01_01_05_douglas


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Interest Expected

Dissolve to

01_01_06_scott

Marketing (Scott):

We knew there would be strong consumer interest in this drug, so the publicity does not surprise us. What does surprise us is that the sales force keeps asking for more sample packs to distribute to their doctors.

Audiu 01_01_06_scott


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Interest Expected

Dissolve to

01_01_07_pope

Demand Management (Pope):

So, do we have enough samples made to meet this demand?

Audio: need to re-record all Pope this will be 01_01_07_pope


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Interest Expected

Dissolve

01_01_08_scott

Marketing (Scott):

No, we do not, and that is what I want to discuss. Can we increase production of the sample packs?

Audio: 01_01_08_scott


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Need to Build Inventory

Dissolve

01_01_09_cross


To increase production of samples, we would need to decrease production of trade product. If we do that, we may not be able to build up enough trade inventory.

Audio: 01_01_09_cross


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Missing an Opportunity?

Dissolve to

01_01_10_pope


But if we do not make more samples, are we missing an opportunity to take advantage of the publicity?

Audio: 01_01_10_pope (need to re-record)


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What Are the Choices?

Dissolve to

01_01_11_douglas



We need to decide what to do. Suggestions?

.

Audio Script 01_01_11_douglas (clip not in edited files)

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Dissolve to

01_01_12_scott


Marketing (Scott):

I think that increased sample production is essential. We need to take advantage of this opportunity to build demand. We should ask Puerto Rico to schedule two to three production runs for the sample packs.

Audio 01_01_12_scott

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Dissolve to

01_01_13_a_pope

01_01_13_b_douglas



Demand for samples historically slows after the initial interest. The production schedule cannot be interrupted—we need to build that inventory so that we do not stock out. Dan, can you ask marketing to tell sales to distribute their sample packs judiciously?

Audio 01_01_13_a_pope

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I say that for the time being we should continue trade production. I think we should tell marketing that we will reconsider their request 30 days from now.

Audio 01_01_14_cross

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Dissolve to medium

01_01_14_cross

.


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What Would You Do?

Show icons for three documents/ resources for decision making:

• A print out of an e-mail from a market rep (since they are in a meeting, not in an office)

• The forecast figures• The marketing budget and memo

The user clicks the documents to reveal the contents.

Agree that increased sample production is essential. Confirm that Puerto Rico will be asked to schedule two to three production runs for sample packs.

Graphic Description/Storyboard Animation/Interaction Instructions

Which choice do you think is the most appropriate, given the situation and the information provided?

Before making your selection, review the background material supplied. Click each document to review the contents.

When you are finished, make your choice, then click Submit.

1Because demand historically slows after the initial interest, tell marketing that the production schedule cannot be interrupted. The need is to build inventory. Have marketing tell sales to distribute their sample packs judiciously.2For the time being, continue trade production. Tell marketing that the launch team will reconsider their request in 30 days.3

Submit

E-mail from Marketing

Demand Figures

Marketing Budget Memos

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Print-out or screen of an email from a marketing representative asking for more samples.


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0

5000

10000

15000

20000

12/2

0

12/2

7

1/3

1/10

1/17

1/24

1/31 2/7

2/14

2/21

2/28 3/7

3/14

3/21

3/28

Actual

Forecast

Stretch


Compedur Demand: December to March

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Memo

From: Operations Manager

To: Business Unit Leader

Re: Request for Release of Funds for Sample Packs

We received your request for funding to produce an additional 120,000 sample packs, or 20 percent more than the original forecast.

We realize your request is based on data showing a higher demand for samples than forecast and that part of this demand is caused by a packaging recall due to a labeling error.

The original budget allowed for 600,000 sample packs at a cost of slightly more than $2 million. Each sample costs $3.50, and we have more than 2,000 representatives carrying samples. Even just one additional sample per representative is a significant cost.

We will take your request under advisement, but frankly, we are very cautious about approving requests for additional spending.

Memo

From: Business Unit Leader

To: Operations Manager

Re: Compedur Sample Pack Funding

At our most recent meeting, we approved your request for additional funding to produce additional sample packs. The consensus among managers was that distributing more samples will give us a major market advantage. Corporate will provide buy-up funding.

Please work out details with manufacturing and distribution.

Two memo papers.


Animation/Interaction Instructions

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What the Experts Say


You selected:

Here is what the experts said about your choice:

This decision will make marketing happy because it will provide promotional sample packs that will reach physicians during a time of high demand. However, it jeopardizes the production runs needed to build the trade inventory for actual sales. Because company profitability depends on sales, not sample distribution, this is not a viable plan.

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Click Feedback to see valuable information from the experts explaining the other options.

Eric Hansen:

Note to flash developers. We need to provide users with the option to see the other feedback, and not make it mandatory. So, this “page” needs a button to allow the user to see the feedback, and a button to end the scenario.

Eric Hansen:

Note to flash developers. We need to provide users with the option to see the other feedback, and not make it mandatory. So, this “page” needs a button to allow the user to see the feedback, and a button to end the scenario.

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What the Experts Say


You selected:

Here is what the experts said about your choice:

This decision will make marketing happy because it will provide promotional sample packs that will reach physicians during a time of high demand. However, it jeopardizes the production runs needed to build the trade inventory for actual sales. Because company profitability depends on sales, not sample distribution, this is not a viable plan.

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Because demand historically slows after the initial interest, tell marketing that the production schedule cannot be interrupted. The need is to build inventory. Have marketing tell sales to distribute their sample packs judiciously.

2Here is what the experts said about the other options available to you:

This might be the most appropriate choice in the long run if the demand for samples follows the historical pattern and slows. However, this choice completely ignores the current needs of the sales force. It is not the best selection under the circumstances.

For the time being, continue trade production. Tell marketing the launch team will reconsider the request in 30 days.3

This is the most appropriate choice because it prioritizes trade production and provides flexibility to respond to marketing needs. After 30 days, the best course may be to schedule some production runs for sample packs if demand for samples remains high and the inventory for trade product is sufficient.

Done

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Date post:	31-Dec-2015
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Level 1: Demand Management Problem 1 (Sample Packs) 1 Instructions Scenario Setup You are about to...

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