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Date: 2018-06-21 Page is: DBtxt001.php L07-PRODUCTS-STUFF

PRODUCTS
THE LIFE-BLOOD OF THE SOCIO-ENVIR0-ECONOMIC SYSTEM

TO DO ... update images to be more relevant to the subject matter

PRODUCTS (goods and services) ARE THE LIFE-BLOOD OF THE SOCIO-ENVIR0-ECONOMIC SYSTEM
SUPPORT QUALITY OF LIFE ... ENABLE PROFIT OPPORTUNITIES ... HAVE IMPACT ON THE ENVIRONMENT
Whether they are 'GOOD' or 'BAD' depends on a multitude of factors
AS THEY ARE PRODUCED AND USED TODAY, THEY ARE UNSUSTAINABLE

Product / Products
Product is shorthand for both goods and services. People need product to maintain and improve their quality of life and their standard of living. In the end the purpose of all economic activity is to improve quality of life and standard of living, it follows that product is a key to high performance of the socio-enviro-economic system.
The socio-enviro-economic system comprises:
(1) people ... a society of now more than 7 billion people
(2) the natural world ... nature's bounty; and
(3) the economic worl ... a human built environment of physical structures, institutions and systems.

Product to serve the needs of people originates with resources from the natural world, flows through processes in the man built environment and ends up serving the needs of people. After use the product has a post use waste chain that may well degrade the natural environment. The performance of a product is the amount of good that reaches people, relative to the amount of damage that is being done to the natural world.
There are very powerful metrics about the profit performance of business organizations in the man built environment and the accumulation of financial capital by people who are owners, but there are no metrics with similar power to measure the good that products do for people and the bad impact products have on the natural environment.
As a product flows through the supply chain, there is good that benefits employees and there is bad where the operations do damage to the environment and sometimes the employees. There is good when the operations in the supply chain fund pro-good activities and pay taxes to fund government services.
When the dominant metrics are all about profit and financial wealth, then over time all the big decisions get made in the interest of these metrics. We need to change the way the world keeps score in order to change the way the game is played!

Many, many products
Navigation to resources about specific products
Open L0200-PD-PRODUCTS

CORE CONCEPTS of TRUE VALUE ACCOUNTING
PRODUCTS
PRODUCTS ARE THE MAIN LINK BETWEEN PEOPLE, THE PEOPLE BUILT PROCESSES AND NATURE


PRODUCT IS AN IMPORTANT DETERMINANT OF QUALITY OF LIFE
The availability of PRODUCT determines to a great extent a person's QUALITY OF LIFE
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OVERVIEW OF PRODUCT
Probably more than anything else, it is PRODUCT ... goods and services ... that enables quality of life. For most of history, product was scarce because knowlege and productivity was low, but in the past 300 years, there has been amazing technological progress and in the 21st century there is the capacity to make a huge amount of product which in turn can support a good quality of life for everyone.
The downside of this is that the manufacturing processes do damage to the environment, and the management of organizations focus on products that are profitabille for the organization much more than those that are best for consumers.
In the end it is through product choices ... what to buy or not ... that people are going to have the most impact on the decisions of organizations and in turn on the overall socio-enviro-economic system. When people change their behavior with respect to product, then everything else will change.
THe main metric for decision making (buy or not to buy) is price and quality. There is little or no information about the impact that manufacturing the product has had on society and the environment during its flow through the supply chain. There is little or no information about the impact of the product during its use, and what happens to the product in the post-use waste cycle.

PRODUCT GROUP ... FOOD AND BEVERAGES
YOU ARE WHAT YOU EAT ... Healthy food and drink is enormously important for wellness / good health.
Open L0700-SS-AGRICULTURE-CROP-GRAIN
PRODUCT GROUP ... BUILDING MATERIALS

HISTORY OF PROCESS
It is improvement in PROCESS that has enabled productivity improvement over time. Almost everything that is a part of the modern enviro-socio-economic system that supports a decent quality of life and standard of living is produced using a process that is more efficient than the process that was used in the past. Take the transport sector for example, the process to convert fuel into energy for transportation has moved from the steam locomotive of the 19th century to the jet engine of the 21st century. Take computing for example, a process that was aided by teh abacus, and later various forms of calculator to modern electronics with processors that will do many millions of calculations in a second. In the TVIA framework the standard performance of a process will make it possible to understand the truvalue of a product that has flowed through multiple processes in the course of its flow through the supply chain.

THE FOUNDATIONAL REASON FOR METRICS LIKE TVA
It is impossible to have meaningful accountability in a very big organization with many different activities. This may suit those that benefit from the performance of big organizations but for society as a whole, this is a problem. Inside the corporate organization there is impressive data collection, analysis and accountability down the level of dapartment, section, individual machine and worker and every product ... but all of this is private and proprietary. From the outside it is possible to get accountability for individual discreet economic activities even though this may be resisted by big organization owners. Specific financial performance may not be accessible, but useful approximations may be made, and judgement about performance relative to the environment in the place and people in the society may be made.

THE PURPOSE OF ECONOMIC ACTIVITY
The original purpose of economic activity was to improve and maintain quality of life for an individual and the family. For most of recent history there has been a favorable relationship between the profit performance of an organization and the wages of people, which in turn improved and maintained quality of life. This assumption is baked into much of the socio-enviro-economic analysis that is routinely reported to the public. However, in the past 40 years productivity has increased at a fast pace, with the result that less and less people are needed for the same level of production. The dynamic is more productivity leads to less labor and more profit ... in other words a good result for owners of the organization and a bad result for working people and society as a whole. MDIA accounts for not only the impact on the organization, but the impact on people and the impact on place (society).

THE PERFORMANCE OF A PLACE
The performance of a place should be relatively easy to understand. A place does not move. A place is where people live and work. A place is where discreet economic activities are located. People are able to observe what is going on. The data collected may be verified in ways that are not possible when they get merged into larger data systems. Pollution can be observed and tied back to specific economic activities and to the responsible owners. Place is a part of planet ... but place is human scale, while planet tends to be too large for most of us to understand.



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