NRP Round Trip

The whole cycle from Order to Production to Income Distribution according to the Value Equation

Transcript

1. NRP Round Trip
   Example of a Cycle
   from Order to Production
   to Income Distribution
   http://mikorizal.org
   

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2. This round trip includes:
   ● Order from a customer, which creates a plan based on a recipe
   ● Purchasing inputs that won’t be made by the group
   ● Making what was ordered, based on the plan, and coordinating P2P
   ● Shipping or delivering the products
   ● Receiving payment for the products
   ● Distributing the income received to people who contributed, using a
   democratically decided value equation
   

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3. First an order is received...
   It also could be that the group has decided to create something without a customer order, for example
   some tools they need.
   Or some groups usually make to inventory. For example, if the tomatoes are ripe, it is time to make a
   large batch of salsa, which will be sold or traded after it is made. We call this a work order instead of a
   customer order.
   In this example it is a
   customer order for a
   3D printed part. This
   group usually makes
   to order because
   each order for 3D
   printed parts is
   different.
   

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4. The order generates a plan based on the recipe...
   If there is a recipe for the product that was
   ordered, it is used to generate a plan.
   This plan has one order item, with two
   processes planned to create the product.
   The process to print the part is dependent
   on completion of the design.
   Some recipes are very exact, when the
   manufacturing information is known.
   Some are more general.
   In either case, the plan can always be
   changed to fit the circumstances, either by
   changing the details, or re-scheduling a set
   of dependent processes forward.
   

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5. Here is the resource flow for creating the product...
   

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6. Any inputs that won’t be created are purchased...
   Required inputs can be purchased by the group or by individuals, who will get credit for this as a
   contribution. This is the logged purchase of the polymer consumed to make the part, paid for by a
   member of the group. It is now in inventory. Some will be used for this part and some for other work
   in the future. If an input is already in inventory, purchasing it will not be planned.
   

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7. The 3D printer that was used for this work was
   purchased through cash contributions by two
   people in this simple example. In the real
   Sensorica case, it was many more.
   The contributors get paid back over time as the
   printer makes money. All of the resource and
   cash flows are transparent to everybody. When
   everyone is paid back, the printer will become
   part of the commons.
   The community funded a piece of equipment...
   

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8. The product is created...
   Here the part is being made. All the
   inputs are logged transparently.
   People can coordinate their work
   through views and notifications.
   The group can decide whether to log
   work contributions for credit, or to give
   credit for the deliverables without
   logging the hours of work.
   Each output is logged too. If an output
   of this process is needed for the next
   process, it is now available.
   Some resources are consumed by the
   process and no longer visible in
   inventory. Others, like equipment, are
   merely used.
   Inputs like designs or ideas can be
   cited so the creators get credit for their
   contributions to those inputs.
   

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9. The product is shipped and payment received...
   When the product is shipped or delivered, that is logged, and it goes out of inventory.
   When the payment is received, it is also logged. Payment could be in a standard currency or a
   crypto-currency or some other resource.
   

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10. Here is how the income gets distributed...
    

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11. As you can see here, it cost the network €185.63 to make the printed part...
    ...but they sold it to
    the customer for
    €250.
    In a normal business,
    the surplus would go
    to the business
    owner.
    But in a value
    network, it is shared
    by the contributors.
    

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12. The group has agreed upon a value equation...
    Here is the value equation agreed
    upon by this fictitious team.
    In this example, a percentage is
    set aside for fixed lab costs, and
    also a percentage for people who
    do support work for the network in
    general. The rest goes to the
    people who produced the product
    that was sold, based on their work
    and financial contributions.
    Another network might split by
    percentage by work function, for
    example growing, harvesting, and
    drying herbs. Or translating,
    editing, publishing a translated
    work based on word count. These
    examples use deliverables rather
    than time as contributions.
    

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13. Here are the details when the value equation is run...
    This gives an explanation of how the distribution will be created for this order for the 3D printed part. It
    allows people to experiment with defining their value equations, and see how things will work before
    agreeing on the rules and actually distributing income.
    

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14. And here is the final distribution for this work...
    Here are the aggregated results of
    this value equation’s rules applied
    to the work and financial
    contributions made by the group,
    both to fulfill the order and to
    support the production work.
    Everyone’s contributions were
    traced back through the value flow
    so everyone can get rewarded.
    A final note: The functions and options that the software supports were created to fit the
    needs of the networks that have used the NRP thus far. As others start using the software,
    we are sure that more ideas will be introduced. We will be happy to continue to refine the
    software to fit the needs of other networks.
    The Mikorizal team
    

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