BloggoType: Value Added Statement (VAS)

Picture: Value added statement, or Trade statement; traded (sold/purchased) by the trader.

The Value Added Statement (VAS) show the value added by a company in the past fiscal year as its Contribution to the GDP (Gross Domestic Product/Value) of its Home country, and how it is appropriated.
It is regarded as a part of social responsibility accounting (link).

A Value Added Statement (or Trade statement) is like a Balance sheet for an Income statement.

Balance sheet
A Balance sheet: Assets (by mobility) - Liabilities (by owner) = 0
Is a summary of 'All Resources with Financial Attributes'.
Shows a Point in Time

Income Statement
A Value Added Statement: Trades (out) - Trades (in) = 0
Is a summary of 'All Trades with Financial Attributes'.
Shows a Change in Time

Turnover (of resources)
Old: Turnover = Sales revenue ÷ Assets
New: Turnover = Resources (@ customer/stakeholder) ÷ Resources (@ producer/supplier)
Pushing the 'resource value' back in the process is one way to eliminate waste

Trade StatementI prefer to call it Trade Statement' instead of Value Added Statement'.
Why ?
* Bend 'Trade' and it still gives the right associations; a trade, to trade, traders
Compare with "a contribution, to contribute contributors".
* ...

Trade statement (trades, traders)
Output: Products & Service, sold (purchased by Customers)
Input: Products & Service, purchased (sold by Suppliers)
=Gross value
Process: Depreciation, adjustment
=Net value
----
Process: Labour (sold by employees)
Process: Interest (sold by creditors)
Process: Dividend (sold by shareholders)
Process: Taxes (sold by society)
Process: Retained earnings (sold by the organisation/company)
=0 (all trades between all traders)

Trader	What	2012
Customers	Sales revenue	192 676	100%
Other	Other income	24 652	13%
Suppliers	Cost of materials	-122 450	-64%
	Other upfront expenditures	-22 077	-11%	Excl. Out+In
Misc	Depreciation and amortization	-13 135	-7%	Σ: -59 667	100%
Employees	Wages, salaries, benefits	-29 503	-15%	-29 503	49%
Creditors	Interest expense	-3 957	-2%	-3 957	7%
Societies	Taxes, duties	-4 322	-2%	-4 322	7%
Shareholders	Dividend (or proposal for)	-1 639	-1%	-1 639	3%
The company	Retained earnings	-20 246	-11%	-20 246	34%

Table: VW Value Added Statement 2012

The categorizations are not 100% perfect, but it shows the direction - the vision.
Justice is governed by fair/just trade. What's just is relative to most people.
Good accounting/categorisations/labellings makes it debatable/manageable by a justice system.
A communications framework.

Effectiveness & Efficiency
Effectiveness can be measured from One or All Traders perspective.

Picture: Efficiency = same Output with less Resources. Effective = more correct Output

Effectiveness can be measured as
a) Internal - from our set targets, or
b) External - from the traders targets.

Picture: Analytical framework

Current state
1. Understand the Output; What=Current state,
Understand the Input+Process; Why=Root cause (the Influencing factors)
2. Understand the Function; Output = Process({Input n}). Predict the output
Desired state
3. Understand the Output target; use the Function to get the desired Output
Note: Here Output=both the Product and the Effect (outcome)

Almost there - operations management input output transformation model

Picture: Development of Product/Process + Fed by a) Vision, or b) Unsolved problems

Picture: SmarterDraw

Control resilience theory (link)
"Once you identify the relevant parameter that controls the system's resilience, you can begin to tackle how to manipulate that resilience--how to enhance resilience or restore resilience"

Picture: Decisions are based on Comparisions; if(comparision;if-true,if-false)

Comparators. =/≠,</>.
Compared to a Norm/Target/Desired state, Vision/Mission.
AND: all comparisons must be true. OR: none can be false.
Boolean: compare(sum(comparisons))
Set: can be dimensions like {true, false, other}, or measures/numbers

The process of Computation is a (one form of) transformation of measures/numbers.
A process is time based sequence, also called algorithm.
Efficient process=least resources (incl. time)