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PostPosted: Fri Dec 09, 2011 9:03 am 

Joined: Oct 26, 2010
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Hello Everyone,

The purpose of this guide is to help new players, and existing players further their knowledge about R&D and how it works.

This guide contains basic to moderate level information on Building and Operating your R&D Facilities.
-------------------------------------------------------------------------------------------------------------------------------
Basics

"What type of land should i use for my Research and Development Centers?"
In order to answer this question, you need to ask yourself:
Do i want my R&D centers to be more productive, cheaper to run, or cheapest to build and adjust?
If you answer "More Productive" then you should primarily consider the Tech Incubator land for your center, as it boasts a 16% increase in Work Hours produced each day. Though you may also want to consider other effects of this land, like the higher building cost (45% more then standard) and upkeep costs(56% more then Standard) .

Now if you answered "Cheaper to run... or.... Cheapest to build" you should consider the "do i build cheaper now, or save money over time" concept, so to decide what you personally want. Standard land is the cheapest to build while Academic Region is cheapest to operate over time. *See Chart "Build Cost comparison chart" and "R&D Cost Comparison Chart"*
ST = Standard AR = Academic Region OP= Office Park TI = Tech Incubator
Image
Image

Moderate

"What do these charts show Me?"

These charts show you that while Tech incubators and Office park centers complete work faster, they cost substantially more. In fact, the CPWH (Cost Per Work Hour) of an Academic Region building is 23% cheaper then that of a Tech Incubator, 22% cheaper then an Office Park, and 21% cheaper then a Standard.

7k salary 0.0EA 100%mix
land 30k 100k
ST- 595.24-1,388.89
AR -488.10-1,138.89
OP -597.44-1,394.03
TI -604.55- 1,410.63

As EA increases or salary decreases Academic Regions becomes even cheaper. You can increase Salary to a level that AR is about even with Tech Incubators, but your CPWH will then be around the 2000 range.

HPU strongly recommends that people invest in Academic Regions, NOT Tech Incubators, or Office Parks, but if you are ok with the added cost Tech incubators are the best choice.
-----------------------------------------------------------------------------------------------------------------------------
Basics

"How do i run my R&D centers once they are built? What determines how much my expenses will be?"

In order to start your R&D centers, you must go to the budgets tab (the giant B button), click "change" under "Expense Account" and add funds. I personally like to use the 4week button.

Expenses are based on 6 Factors: Utilities and taxes, Economic Adjustment, Land type, Size of building, Salary, and Number of employees

Moderate side note


You can use formulas:
Daily Expenses = (30*Sizeofbuilding*LandType*EA)+(Salary*#employees)
CPWH (Cost per work hour) = DailyExpenses/WHPD (Work hours per day)

Image
---------------------------------------------
Thank you for reading this guide, i hope it has helped you better understand the R&D system currently in place, if you have any questions feel free to drop me a line in game, i can assist you there.
-----------------------------------
Future guide plans

#1.5 R&D How much will it cost me? and how long will it take? (Moderate-Advanced)
#2 R&D Mix and salary effects (Advanced)
#3 QA and it's effects on you (manufacturer) (basic/moderate)
#3.5 R&D Leveraging with salary (Manufacturing) (Advanced)
#4 R&D strategies (Manufacturer) (Advanced)
#5 QA and its effect on you (Retail) (Basic/Moderate)

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http://forums.simunomics.com/viewtopic.php?f=35&t=6929 <---- Always up to date research listing.


Last edited by Hazzaah on Thu Oct 04, 2012 7:39 pm, edited 5 times in total.

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PostPosted: Fri Dec 09, 2011 4:14 pm 
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Hazzaah wrote:
As well as there is a set amount of "Taxes and Utilities" that must be paid regardless of how many employees you have (30bucks a sqft + Adjustment) with 2 buildings means your being taxed twice as much while running.

R&D centers were removed from Size Taxes.


If you can make a smaller article out of this, without all these calcs, I'll be more than happy to provide a public service and publish it. Or, if you don't have the time, you can give me the permission to abridge it and publish in your behalf.

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PostPosted: Fri Dec 09, 2011 4:47 pm 

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Aindala wrote:
Hazzaah wrote:
As well as there is a set amount of "Taxes and Utilities" that must be paid regardless of how many employees you have (30bucks a sqft + Adjustment) with 2 buildings means your being taxed twice as much while running.

R&D centers were removed from Size Taxes.


They still have "Utilities and Tax fees" which is what i am referring to. (look at the budgets page you will see it) both buildings would pay this regardless of # of employees or co-op buildings.

and sure i can make a more compact version, but it will have to wait until tomorrow i feel. i would like to tweak this some more anyways, i now have the calculations to determine time to build within 5%, trying to find a way to explain it but i don't think i will. i also might add another section concerning Economic Adjustment, seeing as it plays a large roll in operating fees.

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PostPosted: Wed Dec 21, 2011 2:15 am 

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One "cost" that is not included in R&D costs shown above is the loss of one land slot used to operate an R&D center. This might seem obvious, but it is easy to focus on cash costs and neglect opportunity costs. If you did not have any R&D, you could run two factories in two slots instead of one factory and one R&D center. If you are using 10 slots for a single product, then having one of those slots running an R&D center is not as bad, as you only lose one tenth of your factory (or farm) production. Even so, your R&D value would have to be at least worth a ten percent bonus in price just to break even on the cost of the land slot used, and when you add in costs, you would need to make even more incremental income due to higher quality to break even on the cost of R&D.

Now, look at the value size. Each point of QA increase is worth at most 1% more to a retailer. On average, each level of R&D increases product quality by 0.5 QA, as only 40-60% of quality comes from R&D for most products. So, to reach 10% bonus in price, you would have to have level 20 research just to breakeven on the land value with ten slots dedicated to a single product.

For an R&D center of 40k sq ft, your operating costs per day will be about 4 million per day, which is about the amount that a factory should earn per day, so you would need to get up to level 40 research now just to breakeven on the costs of R&D. Fortunately, a 40k R&D center can reach and sustain more than level 40 R&D, but not a lot more. Assuming this 40k sq ft R&D center can reach level 50 research and sustain it, for 4 million per day, you would then earn about five percent more net income per day on your products than you would from having no research and no research centers at all and using all land slots just for factories. With less than ten land slots per product, the challenge of breaking even on R&D costs is even more difficult.

Bottom line, R&D is not cheap to do, and even just the commitment of needing one land slot per product to sustain the research means that you really need to be looking at having at least eight factories or farms making one product to have any positive contribution from your investment in R&D. With 20 land slots on a single product, your return on research can be quite high, but you also have the possibility of making more of one product than anyone needs to buy in the game. For some products, a small number of large factories can supply the entire demand for all cities for that product (e.g., batteries, synthetics). In the case of those products where a lot of factories are not needed to satisfy all market needs, these would be excellent products to choose to make with no research or with low level R&D that you periodically send off to someone who specializes in R&D outsourcing with smaller R&D centers to refresh the R&D from time to time.


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PostPosted: Wed Dec 21, 2011 10:04 am 

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This is useful information, but I am still confused about WHAT SHOULD I DO NOW REGARDING R&D? Does ANY investment in ANY R&D really make sense now after this change? If so, how much?


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PostPosted: Sat Sep 29, 2012 9:17 pm 
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Uhmmm.... How much exactly can my 120k ft research center support? It currently produces 10k work hours per day.

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PostPosted: Sun Sep 30, 2012 6:54 am 

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1 120k center producing 10k wk/day will support an r55 ( 9979wk/day) or r56 (10350wk/day)

i accept tips ;)

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Helping you keep your products the highest QA possible!
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Make HPU your R&D partner today!
http://forums.simunomics.com/viewtopic.php?f=35&t=6929 <---- Always up to date research listing.


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PostPosted: Sun Sep 30, 2012 10:52 am 
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Hazzaah wrote:
1 120k center producing 10k wk/day will support an r55 ( 9979wk/day) or r56 (10350wk/day)

i accept tips ;)

How exactly did you figure that out?

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PostPosted: Sun Sep 30, 2012 9:18 pm 

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Aindala wrote:
Hazzaah wrote:
1 120k center producing 10k wk/day will support an r55 ( 9979wk/day) or r56 (10350wk/day)

i accept tips ;)

How exactly did you figure that out?


From the Simunomics encyclopedia, we can read that

Quote:
Research gets successively harder to advance as a patent's level gets further above the baseline. To estimate the work required to achieve the next level, use this formula:
24 * (Current Level ^ 2 - Current Level + 0.1) work hours


So, at level 55, you would need 24 x (55^2 - 55 + 0.1) work hours to reach the next level, or about 72k work hours. Over a week of time, QA decays by 1 level, so you would need about 72k/7 per day to stay at about the same level, so one research center (of any size) which makes 10k work hours per day would be able to support a research level of about 55.

A research center of 120k sq ft will not always make 10k work hours per day. Some products with a good research mix will allow you to go to a higher research level due to greater research efficiency, and some may not be able to achieve 10k per day due to having a lower research efficiency for that specific product, and the research efficiency of products does change over time as consumer preferences shift and the research mix, and therefore efficiency, changes.

By the way, if one research center of 120k sq ft makes 10k work hours per day, it would take 9 research centers of this size and productivity to support and maintain research of level 160. Thus, while you can get to level 160 research with lots of smaller research centers, you would need some very large research centers to support such high level research to be able to maintain it. My guess would be you would need about four to five research centers of 300k sq ft to maintain level 160 research, which puts a serious limit on the number of products for which you can have such high level research and be able to have enough factories to effectively leverage such a large research investment.


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PostPosted: Sun Sep 30, 2012 11:25 pm 

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yep.

You could technically justify making the research then just let it decay while you produce goods (r160 takes 160 weeks to reach 0, so 110weeks of r50+ research isn't to bad). most of the time it will be profitable. though i do not suggest this for all products, it's better then not having any research.

in fact, this is what i'm currently doing with my extraction tool research. r86 research is worth ~16billion at 3200/wk after 6 weeks of production i have made an extra 7billion from having the research (1.15-1.25bill/week bonus), now my r80 research is worth ~13billion, so 4billion profit. i'm only using 5 90k factories, so good results.

this is conceivably a profitable strategy up to level 163 assuming a 2billion/week bonus from research and 3200/wh R&D value. (bonus is solely determined by production)

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PostPosted: Mon Oct 01, 2012 7:05 am 

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Hazzaah wrote:
yep.

You could technically justify making the research then just let it decay while you produce goods (r160 takes 160 weeks to reach 0, so 110weeks of r50+ research isn't to bad). most of the time it will be profitable. though i do not suggest this for all products, it's better then not having any research.

in fact, this is what i'm currently doing with my extraction tool research. r86 research is worth ~16billion at 3200/wk after 6 weeks of production i have made an extra 7billion from having the research (1.15-1.25bill/week bonus), now my r80 research is worth ~13billion, so 4billion profit. i'm only using 5 90k factories, so good results.

this is conceivably a profitable strategy up to level 163 assuming a 2billion/week bonus from research and 3200/wh R&D value. (bonus is solely determined by production)


Why is it profitable up to level 163 and not up to level 164? Just curious. I'm not disagreeing with what you said, but the maximum of level 163 seemed like an odd point for a maximum.


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PostPosted: Mon Oct 01, 2012 7:36 am 

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Professor wrote:
Why is it profitable up to level 163 and not up to level 164? Just curious. I'm not disagreeing with what you said, but the maximum of level 163 seemed like an odd point for a maximum.


this was based off of making 2billion/day bonus from the research (i was incorrect btw, r161 is actually the maximum spot, i was just eye-balling it earlier )

assuming a profit of 2billion from research alone in a weeks time, that would make it profitable to allow research to decay from r 160. yes profits will also decrease, but at a slower rate then that of the value of the R&D. the higher your profits from R&D the higher level research you could conceivably do this with.

level value difference
r164 112,917,235,200.00 -----
r163 110,864,209,920.00 2,053,025,280.00
r162 108,836,221,440.00 2,027,988,480.00
r161 106,833,116,160.00 2,003,105,280.00
r160 104,854,740,480.00 1,978,375,680.00

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PostPosted: Tue Oct 02, 2012 5:29 am 

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I am wondering if it would be better to have level 160 research and maintain it, assuming a cost of about 4000 per work hour (since large research centers cost more to operate than smaller ones), or whether it would be better to use more factory slots and not have any research centers and allow it to simply decay down to level 120 and then get an outside research service provider to boost up the research to level 160 again at 3200 per hour and allow it to decay again.

My gut feeling is that it would be more profitable to use the five slots that would have been required to maintain the research on having five additional factories for increasing supply, rather than using the slots for doing maintenance, but I might be wrong. One problem with the occasional renewal of research strategy is you would have to expand factories while the research is being revitalized, as big factories can not run profitably without research.


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PostPosted: Tue Oct 02, 2012 6:38 am 

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i will do some calculations on it

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PostPosted: Tue Oct 02, 2012 9:51 am 

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Professor wrote:
I am wondering if it would be better to have level 160 research and maintain it, assuming a cost of about 4000 per work hour (since large research centers cost more to operate than smaller ones), or whether it would be better to use more factory slots and not have any research centers and allow it to simply decay down to level 120 and then get an outside research service provider to boost up the research to level 160 again at 3200 per hour and allow it to decay again.

My gut feeling is that it would be more profitable to use the five slots that would have been required to maintain the research on having five additional factories for increasing supply, rather than using the slots for doing maintenance, but I might be wrong. One problem with the occasional renewal of research strategy is you would have to expand factories while the research is being revitalized, as big factories can not run profitably without research.


Hazzaah wrote:
i will do some calculations on it


I will be very interested in hearing the results of this since i have spent alot of cash on large centres and expanding them as fast as i can, usually 30k in three weeks which i think is hex speed im not sure.

expanding factories while the research is being revitalised isnt bad because it will take 40 weeks to get from lvl 160 to lvl 120, im sure that if a company can spend money on getting this research as high as level 160 im sure they can expand their factories for three weeks or even less whilst the research is being revitalised.


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