Production/en

TYPES OF PRODUCTION

There are 3 basic kinds of production: Factory, Mill and Sawmill. They all are similar in their structure and require Top manager's «Production» skill. Production industry also includes Agricultural farms, Mines and Fishing bases. The principle of operation of these units is identical to Production, but they do not have materials and semi-finished products for production, and they have a different qualification profile - Agriculture, Mining and Fishing, respectively.

FACTORY

Factories produce the widest range of 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 find detailed information in Analytics > Reference Section.

Certain enterprises are able to produce several goods depending on its specialization, for example: bakery can produce bread, noodles or pastry. 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. At a particular point in time (game play) factory can have only one active specialization.

Product properties are characterized by quality and brand. At different plants, product quality may vary. In addition, different companies may develop different brand levels for a particular product in a particular city.

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

Some types of enterprises can produce several different products, or several variations of one product with improved characteristics (quality, quantity of output). For the production of each type of product has its own technological scheme and production conditions. Some types of industries have only one specialization and they do not have the ability to change it. Specializations available in the game are presented in the reference information on the types of industries.

Want to know more? Go to Analytics > Reference > Types of enterprises and see all available specializations and types of production.

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" skill 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: Analytics > Reference. 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).

For the production of sawmills you need equipment (power-saw bench) and workers. The maximum quality of wood is determined by the level of technology, the quality of equipment and the quality of the forest in the region where the sawmill is located.

In total there are 5 gradations of wood quality - from 1 to 5. The quality of the forest at the sawmill is determined by its geographical location. More information about the quality of wood in a particular city can be found in the tab Analytics > Macroeconomics > Resources.

Also, sawmills are characterized by a special procedure for calculating costs. In addition to standard items, weekly concession payments are levied on sawmills, depending on the basic quality of the wood and the size of the sawmill. The concession applies to all sawmills, regardless of their load and sales mode, and is included in the cost.

Concession fees (for forest usage)::

Quality of forest	Concession fee for 1 ha of forest
1	3$
2	12$
3	27$
4	48$
5	75$

EXTRACTION OF NATURAL RESOURCES

The extraction of natural resources is similar to the production industry, but has several fundamental differences. First of all, extraction enterprise must have access to a resource - a natural resource, that is, it must be located in the deposit of this mineral: oil, ore, salt, gold, diamonds, etc. All created mineral deposits belong to the state and are transferred to the hands of private companies either through sale at an open auction for virtual currency, or through direct sale of objects on the market of state enterprises for game points. It is also possible to purchase mines in the secondary market from private companies through the auction process.

At the business unit of the mining industry, different equipment is used compared to the factories, mining equipment. This equipment is also produced at the Machine-tool factory, it is one of the specializations.

The Supply tab is not available at mines, since minerals are raw materials extracted from the subsoil and do not require any other materials or semi-finished products for their production.

The Sale and Technologies tabs, as well as the information in the Finance section are completely identical to the similar sections in the Production chapter.

AGRICULTURE

The agricultural sector is divided into 2 parts: Agriculture and Livestock. Accordingly, the types of enterprises are subdivided:

• Agriculture includes the Agricultural Farm and Plantation,
• Livestock - Cowshed, Poultry Farm, Pig Farm, Sheep Farm and Apiary.

The profile for the management of all agricultural enterprises falls under "Agriculture" and "Livestock" skills respectively.

Agriculture refers to the primary production of resources - the cultivation of grain and fruit. Livestock - the production of agricultural products using grain or other feed.

The “Sale” and “Technologies” tabs are completely identical to the corresponding sections of the “Production” chapter.

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 costs", "Waste / losses", "Management expenses", "Salary", "General production".

Energy cost depends on production volume, technology and the cost of one unit of energy (depends on the level of development of the city) and power consumption intensity of production (car production requires much more energy, than production of toys).

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.