image missing Date: 2021-10-17 Page is: DBtxt003.php L0900-TVM-elements-of-process


TRUE VALUE METRICS
ELEMENTS OF PROCESS
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ENERGY
Energy has been a key driver of economic and social progress since the beginning of the industrial revolution. Very low cost energy made USA industry globally competitive and profitable until the OPEC cartel driven oil shock of 1973. Since then energy industry profits have been enormous (measured and managed), as well as the associated environmental damage and social disruption (not measured).
PAYROLL
Until the oil shock of 1973 US workers were well paid and business was profitable. In the Reagan administration the position of unions and collective bargaining was weakened and since then wages have flatlined while profits have increased, enabled in large part by moving production from the USA to low wage countries like China. Almost all improvement in productivity has been allocated to stockholders and top management.
PRODUCTS
The life cycle flow of products have massive impact on society, the environment and the business economy. The flow of raw materials through the supply chain, then into producing products and then use and then post use waste all have impacts that should be accounted for. The TVM tool is a standard value profile for the product.
TAXES
TVM analysis of taxation should be based on the work of independent outside committee of experts who should ascertain what amount of taxation any entity should be paying. This should be compared to the amount of taxation actually being paid by the entity. In addition there should be analysis of where taxation is being paid versus where it should be paid.
MATERIALS
Materials are used in production to produce products. They are part of products. While an important perspective for products is the consumer, the important perspective for materials is the supply chain. As materials flow through the supply chain and into production there are social, environmental and economic impacts, all of which must be integrated into the standard value profile for the material.


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