Economics of Production

* See also Fabrication
* See also Rapture_Economy
* See also Crash
* See also Game_Economy Activity for Players
* See also Businesses in Rapture
* See also Faux-Economy ( Infinite BS style )
Economics of Production : Production (Processing and Fabrication) game mechanics
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True for Rapture and Columbia :
Most Cities/Towns provide shopping/services/craft production commercial operations for a large population OUTSIDE their town/city - The are a centralized location near transport hubs coming from all directions. The concentration is not quite the same if it is ONLY for the residents of the city/town by itself. AND likewise, all the materials that get consumed/processes/distributed mostly come from elsewhere ( in our modern world for well over a century ).
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The Rich and Wealth :
Andrew Carnegie had an estimated net worth equivalent to $372 million. Compared as percentage of the US economy ( and being before there was an Income tax and most other taxes ) made it more like 17 Billion Dollars in 2014 money This was more real money than the billionaires today who's value is calculated from 'stock' they posess which if a fraction was sold would make most of the rest a small fraction of the monetary value as the market price tumbled.
 
Carnegie achieved this fortune through Economy Of Scale and Constant technological Improvements in his Steel Production. He built this over many decades.
Andrew Ryan would have had to do the same thing IF he was to have arrived in America a near penniless immigrant around 1920 ( the relatively short time specified in the Novel ) - to have accumulated some vast fortune even small a fraction of Carnegie's.
Additional rich people ( perhaps with less limited wealth accumulation timetables ) would have been required to bring their fortunes to invest in Rapture to build anything like what Rapture is shown to be.
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Player Economy - Semi-Realism :
A game Object 'crafting' system should be closely tied to the game setting's economic system. Designed in the MMORPG to give a little dose of reality, but stopping short of tedium ( Once you figure it out you should have your NPCs take care of repeated production, instead of the endless game-time grind so many MMORPGs have ). It should give a reason to bring stuff (Loot) back from 'the Ruins', and to demonstrate the inter-dependency of Products and Services of the modern world ( with semi-realistic Producer -> Consumer patterns ). Created/repaired Objects are then used to 'move forward' the City's reconstruction effort. Such Player generated objects/materials should have major Utility in various Game Activities ( not just being sold for CASH to some generic vendor ).
Repairs on 'found' objects would be a large part of the economy, as most things in Rapture even in the Golden Age were NOT made in Rapture, but were originally brought from the Surface where there was the needed diversity of production capabilities.
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A Production System :
Factors : WORKER, SKILL, PRODUCT, MATERIALS, COMPONENTS, SUCCESS, TIME, QUALITY, TOOLs, RESEARCH, FORMULA, FUNCTION. JOB
* 'Levels' are quantum numbers 1 2 3 4 ... to simplify the system ( most of the factors are expressed as 'level' )
This 'Level' for QUALITY correlates to a rough level in society of what is 'proper', and Citizens will attempt to obtain goods/services of their current level. Generally the higher the level, the more exclusive the item is. Previous posting talked about Residences at various levels..
* Higher QUALITY production takes longer (TIME).
* Higher QUALITY production has lower probability of SUCCESS.
* Higher QUALITY production is greatly assisted by higher level TOOLs
* Higher QUALITY production requires equivalent QUALITY MATERIALS (or COMPONENTS)
* Attempts can be made to make a higher QUALITY product with insufficient SKILL/TOOLS, but SUCCESS rates go down rapidly (and costs up due to wasted MATERIALS/TIME)
* Complex mechanisms tend towards higher QUALITY
* QUALITY Degradation (Customer perception of QUALITY) over time is possible ( example- perishable food )
* Expected Customer Value of QUALITY is dependent on utility or aesthetics or rarity or ?.
* FORMULA is the combination of MATERIAL/COMPONENTs/TOOLs required for one attempt to create a PRODUCT
* FORMULAs specify WORKER SKILLs required
* FORMULAs have a base production TIME
* FORMULAs have a base production probability of SUCCESS
* Some FORMULAs are 'batches' that can be subdivided and used as COMPONENTs of a final PRODUCT.
* Mass Production Line FORMULAs can greatly increase productivity but require multiple Special TOOLs
* Scale of Production (mass Production) - Different FORMULAs apply - use of higher SKILLs ..... more specialization. Usually a set of tools is needed to make a whole segment of an assembly line operation to work. But as a group they can speed up production significantly and lower failure rates. Such tools have to be set up in fixed positions (its no longer a 'benchtop job')
* Mass production usually produces QUALITY near the lower end (mediocre).
* Mass production TOOLs are usually higher level QUALITY than the product they help make. ( a Conveyor_Belt is higher than bottle of Kelp-Cola ).
* Simple production FORMULA == MATERIALS -> PRODUCT
* Complex production FORMULA == MATERIALS -> COMPONENTS -> PRODUCT
* COMPONENTs have their own FORMULAs ( COMPONENTS may be used interchangeably in Complex production )
* Detailed production FORMULA == takes multiple processing steps ( each step producing a partial sub-PRODUCT ).
* Complex PRODUCT can have partial FUNCTIONality ( can still FUNCTION but at a lowered efficiency )
* Complex PRODUCT can often be assembly from COMPONENTS but take significant SKILL to produce fully FUNCTIONal PRODUCT.
* MATERIALS are consumed on production attempts and non SUCCESS usually produces useless garbage (scrap).
* Some MATERIALS require special storage containers.
* COMPONENTS are only sometimes destroyed when production result is non-SUCCESS
* Use of inferior MATERIALs/COMPONENTs can result in partial FUNCTIONality of PRODUCT.
* SKILL relates to a general production operation ( not directly tied to a PRODUCT type or specific TOOL )
* SKILL Training advancement attaches to the WORKER.
* Higher SKILL can produce either better(QUALITY) or faster(TIME).
* Each higher SKILL level, takes the WORKER longer to train to attain.
* SUCCESSFUL production can increase a WORKER's SKILL (experience)
* WORKER SKILL training is accumulated, and attaining a threshold achieves a higher SKILL level
* Some FORMULA require multiple SKILLs to do the Production
* WORKERS with SKILLs can be hired or a member of the Players NPC 'Team'.
* General TOOLs can be utilized for multiple types of PRODUCTs,
* TOOLs can be produced as PRODUCTs (via their own FORMULA ...)
* TOOLS wear out and can be broken/damaged. They can also be repaired.
* TOOLs FUNCTIONAl efficiency can be effected by TOOLs damage state. Broken TOOLs are non-FUNCTIONal.
* Non-SUCCESSFUL production attempts have increased probability of TOOL breakage.
* Work surface/space - counts as a general TOOL, adequate working conditions required - light, etc...* In-place (field) repairs/fabrication are generally more difficult than on the 'workbench' and conditions impact results..
* Use of Specialized TOOLs is specified in a FORMULA ( separate formula from production with non-Specialized TOOL )
* Specialized TOOLs are used to produce only one specific PRODUCT.
* Specialized TOOLs decrease production TIME and/or decrease probability of FAILURE. (FORMULA specifies)
* Specialized TOOLs generally have a much lower breakage rate. (FORMULA specifies).
* RESEARCH is independent of the WORKER ( attached to the Player instead of NPCs )
* RESEARCH can increase probability of production SUCCESS. The RESEARCH only applies to a specific PRODUCT + QUALITY
* Additional RESEARCH brings less and less additional production benefit (decreasing returns).
* RESEARCH can reveal new FORMULAs, which can allow much higher Production efficiency..
* Damage to a PRODUCT can decrease its FUNCTIONAl efficiency
* Multiple Damaged COMPONENTs are cumulative for PRODUCTs FUNCTION
* Repairing a PRODUCT ( damage, partial breakage ) is more common for complex PRODUCTs (which have sub-components).
* Repair is done by FORMULA and may only take effort and SKILL but others make require MATERIAL/COMPONENT.
* Some JOB/Work task FORMULAs require multiple WORKERs
* Some JOB/Work task FORMULAs allow a summation of multiple WORKER's SKILLs (mix and match)
* JOB definition for rating a WORKER requires SKILL achievement in all required SKILLs for a FORMULA or set of FORMULAs.
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Below are some sample tables that show relations between factors. FORMULAs will adjust these relations to match the PRODUCT type being produced..
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Likelihood of SUCCESS of production attempt: ( WORKER SKILL vs target QUALITY ).
...............1............2...........3............4............5............( PRODUCT target QUALITY)
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.1...|.....80%.......20%.......1%........0%........X
.2...|.....90%.......80%.......20%.......1%........0%
.3...|.....95%.......90%.......80%.......20%......1%
.4...|.....99%.......95%.......90%.......80%......20%
.5...|.....99%.......99%.......95%.......90%......80%(SKILL).
*** If you don't have the proper SKILL level it becomes much harder to make the PRODUCT.
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General TOOL multiplier for SUCCESS (probability is base X multiplier).
...............1............2...........3............4............5............ (PRODUCT target QUALITY) ===========================================================
.1...|.....100%.....33%........10%........X.........X
.2...|.....133%....100%.......33%.......10%........X
.3...|.....150%....133%......100%.......33%.......10%
.4...|.....160%....150%......133%.....100%........33%
.5...|.....165%....160%......150%.....133%.......100%(TOOL QUALITY).
*** You fail alot when trying to make something with inferior TOOLs*** Better TOOLS make production a little easier.
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RESEARH increase SUCCESS multiplier (specific to PRODUCT at a QUALITY).
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.1.........|....105%
.2.........|....110%
.3.........|....115%
.4-7.......|....120%
.8-12.....|....125%
.13-18....|....130%
.19+......|....135% (RESEARCH Accumulated for fabricating PRODUCT at QUALITY).
*** RESEARCH for a specific PRODUCT can lower failure rates*** For PRODUCT at a QUALITY level (a different QUALITY is considered a different PRODUCT and require separate RESEARCH)*** RESEARCH can overcome lack of SKILL.
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MATERIAL use SUCCESS probability multiplier (per MATERIAL or COMPONENT in FORMULA).
...............1............2...........3............4............5............ (PRODUCT target QUALITY)
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.2...|......110.......100%......10%........X..........X
.3...|......115.......110%.....100%.......10%........X
.4...|......117.......115%.....110%......100%.......10%
.5...|......118.......117%.....115%......110%......100% (MATERIAL QUALITY).
*** Inferior MATERIALs/COMPONENTs mostly cannot be used to make higher QUALITY PRODUCT*** Better MATERIALs/COMPONENTs only improve SUCCESSful production a little.
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.TIME multiplier to produce: (actual TIME is base X multiplier).
...........1..........2.........3..........4..........5.......... (PROD UCT target QUALITY)
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.1...|....1...........4.......16........X.........X
.2...|....1/2.........1........4.......16.......X
.3...|....1/3........1/2......1........4.......16
.4...|....1/4........1/3......1/2......1........4
.5...|....1/5........1/4......1/3.....1/2.......1 (SKILL).
*** Making PRODUCT below your SKILL level goes faster*** Making PRODUCT above your SKILL level goes alot slower or is impossible.
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TOOL (QUALITY) multiplier to Production TIME.
...............1............2...........3............4............5............ (PRODUCT target QUALITY)
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.2...|....80%.....100%......200%.....900%.......X
.3...|....75%......85%......100%.....200%......900%
.4...|....70%......75%.......80%.....100%......200%
.5...|....65%......70%.......75%......80%......100% (TOOL QUALITY).
*** Inferior (improper) TOOLs slow production alot
*** Better TOOLs speed production some.
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SKILL training TIME multiplier (for each level)
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.1.....|........1X
.2.....|........2X
.3.....|........8X
.4.....|.......64X
.5.....|.....1024X...(master craftsman/artist).
*** It takes longer and longer to get higher SKILL (enabling higher QUALITY production) 
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* Economics for a business - a higher SKILLed worker produces greater yield(more SUCCESS/shorter TIME) OR better QUALITY (if in demand = $$$) . Worker equipped with good TOOLS has increased productivity.
* A NPC WORKER of higher SKILL expects higher compensation. ( a rough payscale is adjusted by supply and demand )
* A handy spreadsheet/calculator will be provided in-game to allow the Player to judge possible results of a production with given adjusted Factors. Example - results of if I got a WORKER with +1 for the PRODUCTS FORMULAs required SKILLs - How would expected yield increase ? Results would also show how the production costs would also shift ( sort-of important to a business that is supposed to be profitable ).
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Example of Business FORMULAs Fish-n-chips shop :
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Demonstrates simplified 'unitized' production calculations.
Base level production (single unit) :
Skill_Cook_1 + Tool_Fryer_1 + Potato + Timex(1) == Serving_French_FrysSkill_Cook_1 + Tool_Fryer_1 + Chunk_Raw_Fish + Batter + Timex(1) == Serving_Crispy_Fish
Serving_French_Frys + Serving_Crispy_Fish + Container + Skill_Handling_1 == Fish-n-Chips_meal
Sale : Fish-n-Chips_meal -> Customer = 3 dollars
Unit_Labor_Time == 2 (concern is how much time standing around idle - NOT working)
Fixed_Daily_Costs = Labor_Cost(Day) + Utilities_Cost + Space_Rent_Cost + Equipment_Cost(Tool_Fryer_1)= ?
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Higher skill and equipment(tools) for multiple simultaneous production :
Skill_Cook_2 + Tool_Fryer_2 + 6 Potatos + Timex(1) == 6 Serving_French_FrysSkill_Cook_2 + Tool_Fryer_2 + 6 Chunk_Raw_Fish + 6 batter + Time(1) == 6 Serving_Crispy_Fish
Serving_French_Frys + Serving_Crispy_Fish + Container + Handling_1 == Fish-n-Chips_meal
Sale : 6 X Fish-n-Chips_meal -> 6 X Customer = 18 dollars
Labor Time == 2
Fixed_Daily_Costs = Labor_Cost(Day) + Materials_Cost + Utilities_Cost(Day) + Space_Rent_Cost(Day) + Equipment_Cost (Tool_Fryer_2)
Materials :
Potatoes/Chunk_Raw_Fish/Batter
Container = Page of Rapture Daily ( Newspaper wrapping IS the container ... )
Condiments - what passes for Ketchup in Rapture ?? ( vinegar +salt easy, tomato ?? sugar?? ) Salt.
Note- This works with sufficient continuous customers, as some expenses continue whether or not there are any production/sales of Product. Some markets have limited business hours and some customers have expectations of 'Speed of Production and Purchase'. Some Products have a limited storage life ( Serving_French_Frys + Serving_Crispy_Fish have a tiers for quality 'halflife' of about 5 minutes ). If the Product was something that could keep (be stored), then a production run could be made limiting fixed expenses to what is required.
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Profit = Sales - Costs
* Bulk Purchase discount for Materials ( direct from producer or 'broker' ) lowers material cost* Cost of warehousing bulk Material and issue of 'perishable' materials
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'Perishable' materials :
* Some materials have a limited lifespan
* Decreasing QUALITY along lifespan
* 'Cold storage' for some MATERIALS to extend effective lifespan ( cold storage is easier to arrange in Rapture when the Ocean outside is near freezing temperature ).
Spoilage by external factors - vermin, theft/pilfering, riot, delay, accidents, delay (for perishables)
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