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Eire Aonair: Test Run Company Project - A More Efficient Commune

Day 1,311, 19:53 by Ian E Coleman

Est. 2010
Eighteenth Edition: Thursday, June 23, 2011

For a little bit over a week Eire Aonair has been working on a new project through the EA Advisory Group (click on the link to learn more). For this latest project our members donated some resources and managed to scratch together a Q2 food factory and a Q3 weapons factory (which I believe has recently been replaced by a Q4). Our goal was to demonstrate that companies could become more efficient by buying cheap raw materials off of the international markets, rather than producing those raw materials themselves. This project is still in progress, but we thought we'd supply the public with an introduction and some insight into our progress.

Sir Adriano Prette has been running the TRC companies, and the information used in this article about the performance of the project and the output of other methods has been provided by him. A big thank you to him for his hard work.


What Is The Test Run Company Project?

The Test Run Company (TRC) Project/Plan/Thing is a project from Eire Aonair that is taking real companies and using them in order to investigate new methods for running communes. Now we could have just crunched numbers and we would likely have gotten the same results; but for the sake of having a little fun, providing some actual practiced results, and for the experience of it, we decided to put our theories to the test.

We based our model of the conventional commune system off of the Irish Army. Ultimately we want to help all of Ireland to produce more damage in order to defend our land and prosper as a people.


How Has The Project Been Carried Out/What Results Have Been Found?

Due to financial restrictions the project used a Q2 food factory and a Q3 weapons factory. For this project a focus has been placed on weapons production since it is easier to self produce food using private companies. The main idea is to sell surplus food and weapons to cover raw material costs.

WEAPONS
In our Q3 weapons company we have 4 workers producing 48 Q3 weapons. This requires 1440 weapons raw materials which at the lowest world market rates end up costing a total of 0.864 gold.

FOOD
In our Q2 food company we have 2 workers producing 280 Q2 food. This requires 560 food raw materials which at the lowest world market rates end up costing a total of 0.308 gold

EACH WORKERS SHARE
The test run company currently distributes 258 food to 6 workers (45 Q2 food/worker). This leaves us with 22 Q2 food to be sold at 1.4 IEP (an earnings of 0.034222 gold).

As a result we have to sell 1.1378 gold worth of weapons to meet our total raw material costs of 1.172 gold ((0.864 the WRM cost) + (0.308 the FRM cost)) That means we must sell 31 weapons leaving us with 17 weapons to distribute among our 6 workers (2.83333 Q3 weapons/worker).

Totals: 45 Q2 food (180 health) and 2.83333 Q3 weapons (509.99 health)


How Does This Compare To The Current Irish Army?
The Irish army uses Q5 companies for weapons and food. This means that comparing our output with their current output in terms of damage and health would be pointless.

We haven't collected exact data on the Irish Army, but based on the use of Q5 companies in a raw material production model, let's suppose the following:


WEAPONS
We have a raw materials company with 2 workers producing enough raw materials for 1 worker in a Q5 weapons company to produce 12 Q5 weapons. This means that the total 3 workers will produce 12 Q5 weapons.

FOOD
The food company works much the same. We have 2 workers producing enough raw materials for 1 worker in a Q5 food company to produce 140 Q5 food The total 3 workers will produce 140 Q5 food.

EACH WORKERS SHARE
There are no raw materials costs so the final products are divided evenly among the 6 workers.

Totals: 23.3333 Q5 food (233.333 health) and 2 Q5 weapons (1000 damage)


So How Do We Compare?

For the sake of comparison let's have a look at what the EA Advisory Group's TRCs could have looked like if we did have Q5 companies.

WEAPONS
In our Q5 weapons company we have 5 workers producing 60 Q5 weapons. This requires 3000 weapons raw materials which at the lowest world market rates end up costing a total of 1.8 gold.

FOOD
In our Q5 food company we have 1 worker producing 140 Q5 food. This requires 700 food raw materials which at the lowest world market rates end up costing a total of 0.385 gold

EACH WORKERS SHARE
Since we require 108 food, we can sell 32 food for 0.1532 gold. This leaves us with raw material costs of 2.0318 which we would need to sell 34 weapons to pay for. This leaves us with 26 weapons between 6 employees.

Totals: 18 Q5 food (180 health)and 4 and 1/3 Q5 weapons (2166.66666 damage)


Calculated based on current market prices (June 23, 2011 at 19:30 eRep Time) the two commune supply packages would stack up value wise like this:

EA Advisory Model: 18(3.68IEP) + 4(48.88IEP) = 261.76IEP

Current IA Model: 23.3333(3.68IEP) + 2(48.88IEP) = 183.63IEP

This means that the alternative model could be evaluated as 42.55% more efficient.


Who Is Involved In This Project?

Special thanks for the progress of this project goes to:

Sir Adriano Prette - Who has donated so much to this project, has been the manager of the communes, and supplied all of the information and conclusions that I've regurgitated to you today.

Donnzer - Who as the head of the Department of Defence for the EA Advisory Group, started the discussion about this project and organized the great collaborative effort that we've seen.

Stranger Here Myself - Who has been an inspiring economic mind within the party. He was the first in the party to calculate the opportunity cost of working in Raw Material companies versus simply buying them off of the world market.

D-Glennon - Who came up with the idea of a shadow cabinet which would later become the EA Advisory Group. This idea is what lead us to our current methods of thought. He's also helped us by promoting our project to the Irish Army a little bit.

Eire Aonair and the members of the EA Advisory Group - Who have worked in this projects communes and donated to upgrade costs for the project. Donations came from 10.1.13.5.19, Ulaidian, Donnzer, Sir Adriano Prette and myself. I'm sorry if I missed anyone or made a mistake (I was just basing that off of an old running total from the forum). There really was a great amount of support and its hard to account for.

Also a great thanks to Bhane and the Irish Army - Who were nice enough to support us as the project had many of their workers on temporary leave.


Last Word
In the future Eire Aonair may be opening its own military unit. It looks like we want this unit to be a part of the Irish Army by the voting done here: Allegiance Voting (Available to EA Members Only). If we decide to have a commune component to this unit, we will likely use the commune method put forward here.

I hope that I've done this project justice with the few calculations that I did myself. I think we've made some great progress, and I'd like to continue that progress by continuing with the project, doing some more calculations, and hopefully talking to people outside of the EA Advisory Group about how to apply this research.

Ian E Coleman - The Coleman Global - Writing on behalf of Eire Aonair and the EA Advisory Group.



Forum: eireaonair.userboard.net
Wiki Page: Eire Aonair @ the wiki
eRep Page:Eire Aonair
Video:Eire Aonair @ YouTube



***Other Stories in this Paper***
Report: "Ireland's Population Problem"
Editorial: "The People of eRepublik"
Editorial: "A Few Cautious Statements"
Eire Aonair: "Eire Aonair: Looking for a Party?"
Eire Aonair: "Eire Aonair: Test Run Company Project - A More Efficient Commune"
 

Comments

10.1.13.5.19
10.1.13.5.19 Day 1,311, 20:07

Voted. Nice comparison and update

Ian E Coleman
Ian E Coleman Day 1,311, 20:09

TL/DR version: By buying raw materials instead of producing them yourself, this project has suggested that you can become more than 40% more efficient based on market prices.

Riggy
Riggy Day 1,311, 21:54

voted, what a nice work there, and how well presented

D-Glennon
D-Glennon Day 1,312, 03:34

good article

GO TEAM !!!

Seanan
Seanan Day 1,312, 04:04

I explained roughly to Chance Harrison and Ian Passmore from my understanding, they see the potential for this new system. Once they see this I'm sure they will be fully convinced, and will look to implemented the system; Initial capital allowing.

Grand work
o7

Stranger Here Myself
Stranger Here Myself Day 1,312, 05:22

\o/\o/\o/\o/\o/\o/

Eire Aonair - a party for those who think!

Stranger Here Myself
Stranger Here Myself Day 1,312, 09:18

There is no 'initial capital' needed, start selling weapons, buy raw materials and move workers to your already existing q5 companies - there's no worker # limit anymore. As simple as that.

However, efficiency can further increased by buying & hoarding raw materials where and when cheaper and exporting excess where and when profitable. For that, you actually do need to build up some stock & cash reserves indeed.

Anthony Colby
Anthony Colby Day 1,312, 18:36

Wow. Impressive.

Sean MacDiarmata
Sean MacDiarmata Day 1,312, 18:53

Ian, I know the work you have done around the community has been excellent. If we can discuss things on IRC about what ways we can improve things ill be glad to listen and try improve things.

Good work EA.

Seanan
Seanan Day 1,312, 19:50

If I move over workers, I won't have enough RM built up in order for them to make weapons for me to sell. DoD will likely have enough for that, but the real issue for me is space. I worked out I need over 6500 space, which I dont have.

DerBrad
DerBrad Day 1,313, 08:43

Good report - This is collaboration at its very best

Ian E Coleman
Ian E Coleman Day 1,313, 18:10

@Marcus - I'd be happy to get in contact Marcus. IRC doesn't work on my CPU 90% of the time, so maybe I can send someone else from EA?

I'll be making an increased effort to get on IRC anyway.

@Seanan - Fair enough that there should be some storage space concerns. It would be cool if we could find a way around them since in the long run I think it would be a worthwhile investment.

orangejuicemmm
orangejuicemmm Day 1,319, 17:31

Excellent work, this is exactly how things should progress. We made the first step with the Irish Army replacing the massively inefficient Irish Defense Force system and now further improvement by Eire Aonair shows that a mix between both can be even more efficient.

One thing though, Market prices do tend to fluctuate so you should possibly add in a variable of 5% to each Market Price of Raw Materials to cater for increases + we also need to consider that it is GOLD/IEP leaving the Ireland as opposed to the IA which just circulates it.

Reminds me of Labour... /me sheds a tear

 
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