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Meaningful Metrics for a Smart Society
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Date: 2017-10-23 Page is: DBtxt001.php L070-PC-PROCESSES

PROCESSES
AT THE CENTER OF SOCIO-ENVIRO-ECONOMIC EFFICIENCY
TO DO ... CHANGE IMAGES TO REFLECT PROCESS / TECHNOLOGY

Inpage navigation by PROCESSES alphabetical
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OVERVIEW OF PROCESS
The efficiency of the economy depends more than anything else on PROCESS. It is process ... the engineering and technical process ... that transforms one set of products into another set of products. The amazing products that have been created in the modern economy are produced using a variety of processes, but as engineering thermodynamics tells us, the baalance between input and output includes some things that manifest as waste, some of which have negative impact on the environment and people. In conventional accounting and business analytics the trend is to optimize the process for maximum return on investment and for money profit. With MDIA the externalities, the impacts on people and planet are also taken into consideratio.

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 MDIA 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.
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WHY PROCESS IS IMPORTANT
PROCESSES are important because their efficiency is what makes (or not) the aggregate socio-enviro-economic system efficient or inefficient. A better world will b e achieved when all the PROCESSES that are used to support our QUALITY OF LIFE are more efficient not only for the making of PROFIT and growing FINANCIAL CAPITAL, but also having a BETTER IMPACT on SOCIETY (PEOPLE) and having a BETTER IMPACT on the ENVIRONMENT (PLANET).

Many processes
Navigation to resources about specific processes
Open L0200-PC-PROCESSES

Processes are an essential part of the socio-enviro-economic system
Navigation to processes from the perspective of Streams, Strands and Strings
Open L0700-SS-PROCESSES

For example … OIL AND GAS ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… attention to the matter of waste water and solid matter polluting the environment;
… attention to the matter of oil pollution during production and transportation:
… and a whole lot more.
For example … in AGRICULTURE ...
better stewardship of WATER use;
… attention to pollution from run-off containing fertilizers, herbicides, pesticides, etc;
… more responsible use of animal medication to avoid risk of drug resistance important for human health;
… the issue of worker exploitation and workplace safety;
also:
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… attention to the matter of waste water and solid matter polluting the environment;
… the issue of worker exploitation and workplace safety;
… and a whole lot more.
Open L0700-SS-Agriculture-Farming
For example … TRANSPORTATION ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… attention to the matter of waste water and solid matter polluting the environment;
… and a whole lot more.
For example … OFFICE BUILDINGS ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… and a whole lot more.
For example … HEAVY INDUSTRY ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… attention to the matter of waste water and solid matter polluting the environment;
… the issue of worker exploitation and workplace safety;
… and a whole lot more.
Open L0700-SS-Heavy-Industry
For example … MINING ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… degradation of the land;
… attention to the matter of waste water and solid matter polluting the environment;
… the issue of worker exploitation and workplace safety;
… and a whole lot more.
Open L0700-SS-Mining
For example … CONSTRUCTION ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… attention to the matter of waste water and solid matter polluting the environment;
… the issue of worker exploitation and workplace safety;
… and a whole lot more.
Open L0700-SS-Heavy-Industry
CONCLUDING OBSERVATION ...
… more than anything else improving the EFFICIENCY of PROCESS will change the trajectory of global socio-enviro-economic performance;
… in the past efficiency has simply been about less COSTS and more PROFIT;
… in the future EFFICIENCY has to be about better QUALITY OF LIFE for PEOPLE with very little of no damage to the ENIRONMENT (PLANET)

AGRICULTURE ... CROP PRODUCTION AND PROCESSING
AGRICULTURE IS PROBABLY THE MOST IMPORTANT DRIVER OF THE GLOBAL ECONOMY AND QUALITY OF LIFE OF THE POPULATION

AGRICULTURE - ISSUES
Open list0300-Agriculture
THE AGRICULTURE / FOOD STRAND - ISSUES
Open list0300-Food
CROP AGRICULTURE - GRAIN
Open L0700-PP-AGRICULTURE-CROP-GRAIN Open in Slideshare ...

AGRICULTURE ... CROP PRODUCTION AND PROCESSING
GRAIN
CROP AGRICULTURE - GRAIN
Open in Slideshare ...
CROP AGRICULTURE - GRAIN PRODUCTION
CROP AGRICULTURE - GRAIN PRODUCTION
The prairies of the United States and Canada are one of the major grain producing areas in the world. Over the years grain yeilds have increased significantly, but there are worrying trends associated with many yiears of monoculture, high useage of persticides and herbicides and the run-off that creates water pollution.
CROP AGRICULTURE - GRAIN HARVESTING
CROP AGRICULTURE - GRAIN HARVESTING
In North America, grain harvesting has been heavily mechanized and requires large scale and high investment in equipment.
CROP AGRICULTURE - POST HARVEST LOGISTICS
CROP AGRICULTURE - POST HARVEST LOGISTICS - TRUCKS
Post harvest logistics is a critical part of the FOOD strand
CROP AGRICULTURE - POST HARVEST LOGISTICS - TRAINS
Post harvest logistics is a critical part of the FOOD strand
CROP AGRICULTURE - POST HARVEST LOGISTICS - SHIPS
Post harvest logistics is a critical part of the FOOD strand
CROP AGRICULTURE - POST HARVEST GRAIN STORAGE - GRAIN ELEVATORS BULK STORAGE
CROP AGRICULTURE - POST HARVEST GRAIN STORAGE - GRAIN ELEVATORS BULK STORAGE
Post harvest grain storage is another critical part of the FOOD strand
CROP AGRICULTURE - POST HARVEST GRAIN STORAGE - SACKS AND TEMPORARY STORAGE
CROP AGRICULTURE - POST HARVEST GRAIN STORAGE - SACKS AND TEMPORARY STORAGE
Post harvest grain storage is another critical part of the FOOD strand
CROP AGRICULTURE - POST HARVEST LOSSES - TRADITIONAL STORAGE SYSTEMS
CROP AGRICULTURE - POST HARVEST LOSSES - TRADITIONAL STORAGE SYSTEMS
Post harvest grain storage is another critical part of the FOOD strand
CROP AGRICULTURE - POST HARVEST LOSSES - PEST INFESTATION
CROP AGRICULTURE - POST HARVEST LOSSES - PEST INVESTATION
Post harvest grain storage is another critical part of the FOOD strand
CROP AGRICULTURE - RISKS
CROP AGRICULTURE - RISKS
There are a variety of risks associated with the storage of grain. This explosian at a grain elevator killed several people in the United States

Navigation to -->
MainNav
SlideNav
CROP AGRICULTURE - RICE

AAA go to TOP

Air Conditioning


Aluminium

Aluminium-Supply-Chain-CSAI-Germain-Paper-2006
'http://truevaluemetrics.org/DBpdfs/Products/Aluminium/Aluminium-Supply-Chain-CSAI-Germain-Paper-2006.pdf'
Open PDF ... Aluminium-Supply-Chain-CSAI-Germain-Paper-2006
WEF-MM-Downstream-Value-Chain-Steel-Aluminium-Scoping-Paper-2014
'http://truevaluemetrics.org/DBpdfs/Products/Aluminium/WEF-MM-Downstream-Value-Chain-Steel-Aluminium-Scoping-Paper-2014.pdf'
Open PDF ... WEF-MM-Downstream-Value-Chain-Steel-Aluminium-Scoping-Paper-2014

Aquaculture


Aquaponics


BBB go to TOP

Bauxite Mining

Bauxite Mining ... the first stage in the manufacture of aluminium
Bauxite mining is mainly open cast pit mining. The industry is dominated by large international mining companies from Canada, Australia, Europe and the USA. Bauxirte mining, like any mining is capital intencise and energy intensive.

CCC go to TOP

Crop Monoculture


Computing


DDD go to TOP

Desalination


EEE go to TOP

Ecosystem Services

Ecosystem Services
About Ecosystem Services ... What are ecosystem services and why do we need them?
Open file 8781

Electricity Generation - Hydro


Electricity Generation - PV Solar


Electricity Generation - Steam / Coal


Electricity Generation - Steam / Natural Gas


Electricity Generation - Steam / Nuclear


Electricity Generation - Steam / Solar


Electricity Generation - Wind


FFF go to TOP

Fishing


Fish Farming

Food-and-Water-Watch-Fishy-Farms
'http://truevaluemetrics.org/DBpdfs/Fisheries/FWW/Food-and-Water-Watch-Fishy-Farms.pdf'
Open PDF ... Food-and-Water-Watch-Fishy-Farms
Fish ... Tilapia
From China, The Future of Fish ... Fish farming for Tilapia
Open file 8780

Food Production


Fracking

API-Hydraulic-Fracturing-Best-Practices
'http://truevaluemetrics.org/DBpdfs/Energy/Fracking/API-Hydraulic-Fracturing-Best-Practices.pdf'
Open PDF ... API-Hydraulic-Fracturing-Best-Practices
Energy ... Fracking ... USA / Pennsylvania
Time to Stop Pennsylvania Fracking: Ban in New York Creates New Momentum ... Momentum builds in the Keystone State in the wake of its neighbor's surprise announcement.
Open file 8843

GGG go to TOP

HHH go to TOP

III go to TOP

Industrial Waste Processing


Internet

Net Neutrality
FCC Chief Announces Big Win For Net Neutrality Advocates
Open file 9158

JJJ go to TOP

KKK go to TOP

LLL go to TOP

Logging


MMM go to TOP

Mining


Monoculture


NNN go to TOP

OOO go to TOP

PPP go to TOP

Permaculture


Plantation - Rubber


Plantation - Palm Oil


Plantation - Sugar


QQQ go to TOP

RRR go to TOP

Rail Transport


SSS go to TOP

Steel

WEF-MM-Downstream-Value-Chain-Steel-Aluminium-Scoping-Paper-2014
'http://truevaluemetrics.org/DBpdfs/Products/Aluminium/WEF-MM-Downstream-Value-Chain-Steel-Aluminium-Scoping-Paper-2014.pdf'
Open PDF ... WEF-MM-Downstream-Value-Chain-Steel-Aluminium-Scoping-Paper-2014

Ship Transport


TTT go to TOP

Truck Transport


UUU go to TOP

VVV go to TOP

WWW go to TOP

Water Treatment


XXX go to TOP

YYY go to TOP

ZZZ go to TOP
CORE CONCEPTS of TRUE VALUE ACCOUNTING

PROCESS
THE MAIN DETERMINANT OF SOCIO-ENVIRO-ECONOMIC EFFICIENCY

PROCESS IS EVERYWHERE
The efficiency of PROCESS will determine how well the WORLD works
PROCESS IS EVERYWHERE ...

NOTE: The PROCESS is equivalent to the NODE in context / entity / relationship diagrams. PROCESS is the NODE that is at the center of all person built activities

PROCESS uses inputs (labor, materials, energy, knowhow, natural resources, etc.) and in the process degrades the environment;
PROCESS produces PRODUCTS (goods and services) ... outputs ... that enable good quality of life and living standards.

EFFICIENCY AND EFFECTIVENESS OF A PROCESS
This is more than PROFIT ... it incorporates also impact on PEOPLE and PLANET
The EFFICIENCY of the PROCESS determines the IMPACT on PEOPLE and PLANET.
EFFICIENCY is not only the PROFITABILTY of the PROCESS …
… but also how much GOOD IMPACT there is for PEOPLE …
… and how little BAD IMPACT for SOCIETY and the ENVIRONMENT.

FRAMING THE PROCESS
This is more than PROFIT ... it incorporates also impact on PEOPLE and PLANET
IIRC Value Creation Process
This is a representation of PROCESS promulgated by IIRC (International Integrated Reporting Council) as the foundational construct for Integrated Reporting (IR).
The six (6) capitals used by IIRC are similar to the convention adopted by TVIA, with both embracing the idea that ALL capital should be brought into account.
The Framing of the Capitals
IIRC TVIA
A. Financial
B. Manufacturing
C. Intellectual
D. Human
E. Social and Relationship
F. Natural
D. Human Capital
E. Social and Relationship
F. Natural Capital
B. Created Physical Capital
C. Created Intangible Capital
A. Created Financial Capital
With IIRC the 'Value Creation Process' is centered on the business organization. While this is important, it is not sufficient. What goes on outside the business organization is arguably more important than what happens inside the organization.
With IIRC the business organization draws from the 6 capitals (inpits to the process) and impacts the 6 capitals (outcomes of the process).
With the business organization there are business activities ... whcih are similar to PROCESS in TVIA.
In addition the IIRC graphic has reference to these ideas: Mission and Vosion: Risks and Opportunities, Governance, Strategy and Resource Allocation; Performance and Outlook.
In the TVIA thinking the goal is to have a tighter linke between the activities of the business and the financial accounting and the impact arising

CONVENTIONAL MONEY ACCOUNTING IS VERY POWERFUL
HOWEVER ... these accounts ONLY describe economic activity in financial or money terms while completely ignoring impact on everything else.
This graphic shows the relationship between the Balance Sheet at the beginning of the period (BOP) and the Balance Sheet at the end of the period (EOP) and the Profit and Loss Account (P&L Account) for the peiod.

A core feature of double entry accounting is that the change in the balance sheet from the BOP to the EOP is the same as the profit for the period shown by the P&L Account

AUGMENTING CONVENTIONAL ACCOUNTING TO ADD IMPACT
How the TVA data architecture adds IMPACT of the PROCESS in an easy and rigorous manner
Add the GOOD impacts to the accounting, analysis and reporting
Deduct the BAD impacts to the accounting, analysis and reporting
Have GOOD and BAD impacts together

TVA FOR THE SUPPLY CHAIN
How the TVA data architecture adds IMPACT of the performance analysis in the SUPLY CHAIN
PRODUCT AND SUPPLY CHAIN
… The MONEY dimension of the supply chain is routine; however
… The IMPACT of the supply chain on SOCIETY (PEOPLE) and ENVIRONMENT (PLANET) are rarely implemented in a coherent manner.
… This is very big next step!

NEW SECTION
Sub heading
The next slide shows …

… how the money P&L report describes the impact of the money transactions on the money balance sheet of the operation …

… while the IMPACTS of the operations on society and the environment are ignored because they are outside the reporting envelope.
A better framework for reporting would be this …
So think of all this miniaturized:

NEW SECTION
Sub heading
So think of all this miniaturized:

SOME EXAMPLES OF MAJOR PROCESSES USES IN DIFFERENT SECTORS
Sub heading
… and specifically this mean making all the PROCESSES that are used to support our QUALITY OF LIFE more efficient not only to make more PROFIT but also to have a BETTER IMPACT on SOCIETY (PEOPLE) and ENVIRONMENT (PLANET).
For example … OIL AND GAS ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… attention to the matter of waste water and solid matter polluting the environment;
… attention to the matter of oil pollution during production and transportation:
… and a whole lot more.
For example … in AGRICULTURE ...
better stewardship of WATER use;
… attention to pollution from run-off containing fertilizers, herbicides, pesticides, etc;
… more responsible use of animal medication to avoid risk of drug resistance important for human health;
… the issue of worker exploitation and workplace safety;
… and a whole lot more.
For example … TRANSPORTATION ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… attention to the matter of waste water and solid matter polluting the environment;
… and a whole lot more.
For example … OFFICE BUILDINGS ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… and a whole lot more.
For example … HEAVY INDUSTRY ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… attention to the matter of waste water and solid matter polluting the environment;
… the issue of worker exploitation and workplace safety;
… and a whole lot more.
For example … MINING ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… degradation of the land;
… attention to the matter of waste water and solid matter polluting the environment;
… the issue of worker exploitation and workplace safety;
… and a whole lot more.
For example … CONSTRUCTION ...
… attention to the use of ENERGY;
… attention to the matter of EMISSIONS into the atmosphere;
… attention to the matter of waste water and solid matter polluting the environment;
… the issue of worker exploitation and workplace safety;
… and a whole lot more.

SOME CONCLUDING OBSERVATIONS
Sub heading
CONCLUDING OBSERVATION ...
… more than anything else improving the EFFICIENCY of PROCESS will change the trajectory of global socio-enviro-economic performance;
… in the past efficiency has simply been about less COSTS and more PROFIT;
… in the future EFFICIENCY has to be about better QUALITY OF LIFE for PEOPLE with very little of no damage to the ENIRONMENT (PLANET)

INTEGRATED FINANCIAL AND IMPACT ACCOUNTING ...
… integration of financial and impact accounting will make it possible for very much better decisions to be made.
… high efficiency can be rewarded and there can be social accountability for bad practices and low efficiency.

CHIEF PERFORMANCE OFFICER
Maybe in the near future it will be possible to rename the CFO (Chief Financial Officer) to be the CPO … the Chief Performance Officer, a C-level position that integrates financial performancewith impact on society (people) and impact on the environment (planet).




The text being discussed is available at



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