Principles:Production

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Production Kinds

There are 3 basic kinds of production: Factory, Mill and Sawmill. They all are similar in their structure and require «Production» qualification for the top-manager. «Production» qualification depends on the profitability of production enterprises.

Factory

Factories produce various goods:

  • Consumer goods — retail products: food, clothes, household equipment etc.
  • Industrial goods — means of production: machines, tractors, devices and computers.
  • Materials and half-finished products — raw material for other products: steel, plastic, components etc.

Each product has its own production plan (suitable kind of enterprise, required raw material quality and quantity, technological and other requirements). You can read detailed information in "Game World" --> "Goods" Section.

Certain enterprises are able to produce several goods, for example: bakery can produce bread, noodles or pastry — depending on its specialization. You also can produce goods with improved characteristics (quality, output). Moreover some products can be produced on several enterprises. For example: both bakery and confectionery factory can produce pastry.

In general, high quality and well-known products are more expensive. Goods quality depends on several factors: production technological level, raw material quality and production efficiency. You can increase your brand with the help of advertising.

Want to know more? Go to "Game World" --> "Production" and see all available specializations and production kinds.

Mill

Mill produces flour by grinding grain. Every mill requires equipment (machines), workers and regular supply. Besides, top manager should have a high level of "Production" qualification to manage the mill successfully. Mill is the most simple production unit and you can use it to build the shortest production chain.

Sawmill

Sawmill - logging and timber production in many aspects is similar to mining. However, unlike natural resources forest is considered to be a sustainable resource so its reserve will never run out.

Every sawmill requires equipment (power-saw bench) and workers. Quality of produced timber depends on technology level, equipment quality and quality of woods in a certain region.

There are 5 levels of timber quality — from 1 to 5 (from bad to good). You can read more in this section: "Game World" --> "Resources". One more special feature: along with standard expenses, sawmills must pay weekly concession fee which depends on woods basic quality and sawmill size. Concession applies to all sawmills independently from their load or sales mode (concession fee is included into prime cost).

Concession Fees (for forest usage):

Wood quality Concession Fee per 1 ha of the forest
1 3$
2 12$
3 27$
4 48$
5 75$

Production Management

Factory (Sawmill, Mill)

Size of the enterprise determines its maximal production volume.

Specialization — the current specialization of enterprise. Kind and type of goods depends on enterprise specialization.

Maximal quality of timber (for sawmill) — wood basic quality: this value is fixed: 1 (bad) ~ 5 (good).

Equipment Quantity — number of installed equipment. Along with number of employees this value determines the load and the output of enterprise.

Equipment Quality — the current quality of installed equipment. If you install equipment of higher than required quality it will not improve the production.

Equipment Wear — the current level of equipment wear. High degree of wear will affect overall efficiency, decrease quality and quantity of output goods. Even if your equipment has 100% efficiency the volume of produced goods still gradually goes down — proportionally to the wear ratio.

Technology Level — the current level of technology introduced at the enterprise. It influences the quality and quantity of produced goods. This value determines required quality of equipment and required qualification of employees.

Staff Qualification — the current qualification of employees. In case if your people have too high qualification it will not produce any positive effect on production but top-manager's «Production» qualification must be sufficiently raised. You can raise staff qualification by means of training or by means of salary change (in this case there is no need to wait for the update you will see the result as soon as you make these changes).

Production Efficiency — the main figure to evaluate production management. 100% efficiency means that the level ratio between enterprise size, technology level, quality and quantity of equipment, qualification and number of employees and top-manager's efficiency is optimal. Low efficiency results in production drop in volume loss of competitive ability and other damages.

Efficiency depends on 4 basic figures:

  • Staff Efficiency
  • Equipment Efficiency
  • «Production» Qualification of Top-Manager
  • Main Office Efficiency

Supply

Production enterprises are closely related with raw materials suppliers. Raw materials can be: natural resources, agricultural products etc (depends on specialization and technological plan).

You can purchase raw material from any company and any player. It is possible to purchase some specific materials in the world market from independent suppliers. Your company can buy materials from different suppliers at the same time: you can choose a supplier considering product quality, available quantity, price and location. Some manufacturers could have sale restrictions so their product might be not available.

It is necessary to fix the size of parcel — volume of raw material supplied per week. In most cases it is reasonable to create a reserve for the purpose of securing production steadiness (to protect yourself from sudden interruptions in supply process or sudden change in supplier's sales policy). However, it might be not profitable to keep too large reserve so you should consider this point carefully.

There are two ways to supply raw material (products) to your enterprise.

First method:

  • Select enterprise
  • Go to «supply» section
  • Go to list of orders («add supplier» button)

In the list of orders you will see: enterprise name, amount of raw material in the warehouse, amount available for the order, goods price and quality.

Use «Advanced filter» to sort suppliers by different characteristics, to exclude enterprises without available resources or enterprises with products of low quality.

Second method is convenient when you order materials from your own supplier. For example: you have a mill, bakery and a store. You can go to «supply» section, click on «green truck» icon, select your factory and your store, enter the required amount of supplied material and supply it.

Every update the ordered raw material will be automatically supplied to your enterprise (subject to its sufficient quantity). Both supplier and customer can cancel the current contract due to the variety of circumstances. You should also be aware that your order might be moved up or down in the shipment queue. The supplier forms this queue manually you can contact him and discuss the situation.

The system can cancel supply in case of quality drop — is a quality control function. In case if your supplier has raised prices by more than preset value (5%, 10%, 20%, 50%, 100% or never) this supply will be canceled.

Restriction for minimal quality (preset level of quality, demanded by the customer) of ordered goods can be active along with price restrictions. In case if quality is below required the contract will be neither canceled nor processed.

Sale

Sale of goods is realized in case if anybody has ordered it (realized once per 24 hours).

To sell your product you must set prices and select sale type. There are 4 sale options:

  • not for sale — stop sale (used for temporary suspension. For example: if market situation is not favorable);
  • sell to any customer — sale without any restrictions (the most common mode: goods are available for all potential customers);
  • only to certain company — sale to specific enterprises of a selected company. Other customers can't order the goods.
  • only to myself — sale to your own enterprises only.

Default mode is «not for sale» and default price is zero.

Moreover, you can set specific priorities and change order of your shipments. Information about all your current customers and sales parameters is available in «Sales» section. If there are no orders for your goods you should re-consider your price (perhaps, it's too high), quality (perhaps it's too low) and/or brand.

Technology

All production enterprises are characterized by a certain technological level. Technology level influences labor efficiency and goods quality. High technology level improves quality and labor productivity. On the other hand, high technology level imposes higher demands on staff qualification and equipment quality. Also technology level increases energy consumption.

There are 2 ways of technology introduction:

  • buy a technology (or develop it in the laboratory) and introduce it to any enterprise of a certain kind
  • buy a technology license (a right to introduce a technology to a certain enterprise)

Price of technological level raising consists of two parts: cost of technology and cost of introduction. When you buy a technology, the first time you have to pay both for the technology and for its introduction but if later you decide to raise technology level for another enterprise of the same kind then you must pay for technology introduction only. As usual, players purchase license in case if they don't have enough money to purchase a technology or in case if technology purchase is not reasonable (For example: the player has only a few enterprises of similar kind, so he'd prefer to buy a license). If you want to know more about license purchase, please go to «Science» section.

If you buy a high-tech enterprise from another player its technology will be valid for this enterprise only. So, for another enterprise of similar kind, you'll have to pay again — both for technology and its introduction.

Technology and Production Output

Given the same factory settings (size, Work Efficiency, etc.), your production volume can increase after you introduce a higher level technology. The basic formula is:

Production_Volume = Basic_Production_Volume*1.05^(Tech_Level - 1)

Where

  • Basic_Production_Volume is the output number at level 1 technology. You can check this number for every type of production unit from inside 'Game World > Production' page.
  • Tech_Level is your current technology level.

Example:

Your Clothing factory with 200 workers at level 1 technology can produce 1000 clothes at 100% Work Efficiency.

You upgraded it to level 2, and now it can produce 1000*1.05^(2-1) = 1050 clothes at 100% Work Efficiency. A 5% increase in output volume.

The table below shows the output volume for each level of technology from level 2 to 20:


Technology level Volume increase Technology level Volume increase
1 0.00% 11 62.89%
2 5.00% 12 71.03%
3 10.25% 13 79.59%
4 15.76% 14 88.56%
5 21.55% 15 97.99%
6 27.63% 16 107.89%
7 34.01% 17 118.29%
8 40.71% 18 129.20%
9 47.75% 19 140.66%
10 55.13% 20 152.70%

Enterprise expenses

All enterprises in Virtonomics bear weekly expenses.

Enterprise expenses are divided into variable and fixed (conditionally-fixed):

  • Variable: these expenses depend on production volume, i.e. in case if production volume changes, the expenses volume would change too. For example: cost of raw material, energy etc.
  • Fixed: these expenses don't depend on production volume. Even if you stop all your production, the enterprise will still bear fixed expenses.

Variable + fixed expenses (per 1 unit of produced goods) = prime cost.

Financial report keeps all information about expenses of your enterprise for the last week, so you can use this information to analyze prime cost structure and to optimize your production.

Main expenses are: «Fuel, energy/Mining cost», «Waste, losses», «Management expenses», «Salary», «General production expenses». Energy cost depends on production volume, technology and one unit of energy cost (depending on the level of city development) and production power intensity (of course, cars production requires much more energy, than toys production).

Waste losses depend directly on the efficiency of your enterprise and energy expenses. This figure is just a part of total expenses (expressed in money), and it doesn't cause any actual production loss.

Management expenses are connected with total salary expenses and main office efficiency. Minimal possible value is 10% of the fund. Salary — wages of 1 employee * total number of employees.

General production expenses depend on city average salary, enterprise size, equipment quantity and enterprise efficiency.