Increasing the efficiency of the organization using functional. How to improve the efficiency of an enterprise? the amount of accrued depreciation. This element includes the amount of depreciation charges for complete restoration

The goal of any industrial enterprise is to produce certain products (performance of work, provision of services) of a specified volume and quality, within a certain time frame. But when establishing the scale of production, one should proceed not only from the national economic and individual needs for a given product, but also from the need to take into account the achievement of the maximum level of its efficiency. Therefore, the quality of work of an industrial enterprise should be assessed, first of all, by determining the economic efficiency of the products produced.

Production efficiency is the most important qualitative characteristic of business management at all levels. Economic efficiency of production is understood as the degree of use of production potential, which is revealed by the ratio of the results and costs of social production. The higher the result at the same costs, the faster it grows per unit of expenditure of socially necessary labor, or the lower the costs per unit of useful effect, the higher the production efficiency. The general criterion for the economic efficiency of social production is the level of productivity of social labor.

Production efficiency is one of the key categories of a market economy, which is directly related to achieving the ultimate goal of development of production as a whole and of each enterprise individually.

Economic theory defines the category of efficiency as the effectiveness of a production process, a production system or a specific form of management. In its most general form, economic efficiency of production is a quantitative ratio of two quantities - the results of economic activity and production costs. Historically, for all methods of production, regardless of the form of ownership, the manufacturer is interested in the relationship between costs and results of its activities.

Economic efficiency is ultimately expressed in increased labor productivity. Consequently, the level of labor productivity is a criterion for the economic efficiency of production. The higher labor productivity and, therefore, the lower production costs, the higher the economic efficiency of labor costs.

In foreign practice, the term “productivity of the production and service system” is usually used as a synonym for “economic performance,” when productivity is understood as the efficient use of resources (labor, capital, land, materials, energy, information) for the production of various goods and services.

Don't forget also that overall system performance is a much broader concept. What is labor productivity and production profitability? A hereditary sign of efficiency (productivity) may be the need to achieve the goal of production and economic activity of an enterprise with the least expenditure of social labor or time.

1.2 Enterprise performance indicators

The profit of an enterprise is one of the most important indicators of the financial result of the economic activity of an enterprise. In accordance with Russian legislation, profit is the difference between income and expenses caused by its receipt.

Profit is the most important economic category and the main goal of any commercial organization. As an economic category, profit reflects the net income created in the production and provision of services and performs a number of functions. The main ones include the following:

1. Fiscal function. Profit is one of the determining revenue sources of budgets at all levels.

2. Evaluation function. Profit characterizes the economic effect obtained as a result of the economic activity of an enterprise for a separate period, i.e. the financial result of the enterprise is assessed.

3. Stimulating function. Since profit is at the same time not only a financial result, but also the main element of the financial resources of an enterprise, the latter is interested in receiving the largest amount of profit as the basis for its development and competitiveness.

When considering the issue of economic efficiency of production, it is necessary to keep in mind that effect and efficiency are ambiguous concepts. In the most general form, the form of the effect of any production is its function - the final result, which is embodied directly in the volume of production material assets, cost savings, etc. However, no matter how important the effect is, in itself it does not sufficiently characterize the activity of the enterprise, since it does not show at what cost it was obtained. The same effect can be obtained in different ways, with different levels of resource use (costs), and, conversely, the same costs can give different effects. Therefore, it is necessary to compare the achieved effect with the costs (resources) with which it was obtained. In its most general form, economic efficiency is a comparison of two values: the absolute value of the effect with the absolute values of costs and resources. The general efficiency formula is as follows:

or
, (1.1)

Where E – economic efficiency;

R– the result of the enterprise’s activities;

Z– enterprise costs;

F– factors, resources.

The level of economic efficiency gives an idea of the cost at which the economic effect is achieved. The greater the effect and the lower the costs, the higher the economic efficiency of production, and vice versa.

Calculations of production efficiency are carried out using a system of indicators, which are combined into the following groups:

– generalizing indicators of increasing the economic efficiency of social production;

– indicators of increasing the efficiency of labor use;

– indicators of increasing the efficiency of using fixed assets, working capital and capital investments;

– indicators of increasing the efficiency of use of material resources.

Increasing the production efficiency of forestry enterprises largely depends on the better use of fixed production assets. Improving the use of existing fixed production assets allows you to increase the volume of production without additional capital investments, reduce production costs and, accordingly, increase profits. To assess the efficiency of using fixed assets, general and specific indicators are used. General indicators allow us to evaluate the efficiency of use of all fixed assets on the balance sheet of the enterprise. Partial indicators are calculated for individual types and groups of fixed assets.

The most common general indicator of the efficiency of using fixed production assets is capital productivity. It characterizes product output per 1 ruble. value of fixed assets:

, (1.2)

Where IN– volume (revenue) of products produced during the year;

OPF– average annual cost of fixed production assets.

Capital intensity shows the share of the cost of fixed assets per each ruble of output.

where FE is capital intensity,

FO – capital productivity.

The capital-labor ratio characterizes the technical equipment of labor and is determined by the formula:

, (1.4)

Where H– average number of workers.

Increasing the efficiency of using fixed production assets at enterprises is achieved through organizational, technical and economic measures.

Organizational activities include:

1. reducing equipment downtime for repairs by reducing its time and lengthening the periods between repairs;

2. increase in equipment shifts;

3. organizing an uninterrupted supply of workplaces with the necessary tools, devices, etc.

Technical measures include:

1. increasing the speed of operation of machines and equipment;

2. reducing the duration of technological processes based on the use of catalysts;

3. use of machinery and equipment at full capacity;

4. improvement of production technology;

5. use of progressive technology;

6.introduction of comprehensive mechanization, etc.

Economic measures include: improving the system of planning, accounting and control of the use of funds; creation of incentive systems that ensure staff interest in increasing the efficiency of use of fixed assets, etc.

One of the directions for increasing production efficiency is increasing the efficiency of using working capital. The efficiency of using working capital depends on their turnover. The working capital of the enterprise is constantly in motion, making a circuit. From the sphere of circulation they move into the sphere of production, and then from the sphere of production again into the sphere of circulation, etc. In this case, working capital sequentially passes through three stages: cash, production and commodity. The efficiency of using working capital is characterized by a system of interrelated indicators, which includes:

– working capital turnover ratio;

– duration of one turnover of working capital;

– working capital load factor.

The turnover ratio of working capital shows the number of revolutions made by these funds over a certain period of time and is determined by the formula:

, (1.5)

Where IN– cost of products sold, rub.;

OS– average working capital balances in a given period, rub.

The duration of one turnover of working capital shows the time during which these funds complete a complete circuit. This indicator reflects the time during which the company will be returned its funds in the form of revenue for sold products and is determined by the formula:

, (1.6)

Where T– number of days in the period under review.

The working capital utilization ratio, the value of which is inversely proportional to the turnover ratio, characterizes the amount of working capital spent on 1 ruble. products sold:

The efficiency of using working capital has a significant impact on the financial condition of the enterprise. Here a number of financial ratios for working capital are determined. The most significant of them are:

Current ratio:

, (1.8)

Where
– the amount of short-term debt of the enterprise.

This ratio characterizes the overall provision of the enterprise with working capital for conducting business activities and timely repayment of short-term obligations. The recommended value of this indicator is at least 2.

Provision ratio of own working capital:

, (1.9)

Where
- the size of the enterprise's own working capital.

The Ministry of Finance has set its standard value at 10 percent (0.1). The company must have at its disposal at least 10 percent of its own working capital, otherwise it may be declared insolvent.

By increasing the rate of turnover of working capital, an increase in the volume of production and sales of products is achieved with constant funds invested in the creation of working capital. Working capital costs can also be reduced while the volume of production and sales of products remains unchanged.

The main directions for increasing the efficiency of working capital can be classified according to the stages of their circulation.

At the stage of creating inventory, these areas include:

– reduction of excess stocks of raw materials, fuel, materials and other regulated means in warehouses;

– uninterrupted and comprehensive logistics supply of production with resources of the required quality;

– reducing the cost of purchased resources without compromising quality;

– ensuring the safety of materials during storage in warehouses, etc.

At the production stage, the following areas are distinguished:

– reduction of the production cycle;

– reduction of specific consumption rates of raw materials, materials, fuel and other resources without compromising the quality of products;

– use of production waste;

– improving product quality;

– organization of production rhythm, etc.

At the stage of product sales, areas for increasing the efficiency of using working capital include:

– strict adherence to financing rules;

– strengthening contractual and payment discipline;

– acceleration of processing of payment documents and timely presentation of them for payment;

– acceleration of document flow during the implementation process;

– application of rational methods of payment to suppliers;

– acceleration of shipment of products to consumers, etc.

Labor productivity is a complex economic category that characterizes the efficiency of workers in the field of material production. Labor productivity is determined by the number of products produced per unit of working time, or labor costs per unit of production. The final result of an enterprise's activities largely depends on labor productivity. The higher the productivity, the more products the enterprise produces over a calendar period, the higher the financial result (profit) will be.

An increase in labor productivity allows the enterprise to produce more products, and therefore obtain higher financial results, must be objectively determined by:

– improving working conditions for workers;

– the use of highly efficient equipment and resource-saving technologies;

– employee interest in obtaining high final results;

– stable and expanding markets for the company’s products.

Increased labor productivity is an important factor in increasing the efficiency of production and economic activities of an enterprise.

This growth is ensured due to main factors such as:

– change in the technical level of production (mechanization and automation of production processes, modernization of equipment, introduction of advanced technology, etc.);

– improvement of management, labor organization (reduction of lost working time, reduction of defects and deviations from standards, etc.);

– changes in the volume and structure of production;

– introduction of scientific and technical developments into production;

– implementation of investment projects;

– improving the quality of labor resources;

– material and moral incentives for employees.

The main indicator characterizing the efficiency of an enterprise's current expenses is the actual costs per 1 ruble of manufactured products. Efficiency means effectiveness, in this case it shows how effectively the enterprise carries out its costs associated with the production and sale of products.

, (1.10)

Where
- actual cost of production of the enterprise;

IN– volume of products produced in monetary terms.

This indicator must have a value less than 1, otherwise it means that the company is incurring losses.

Another general indicator of cost effectiveness is the profitability level data:

Where
- enterprise profit after taxes (net profit).

The level of profitability shows the amount of profit an enterprise receives from each ruble spent on production. The higher the value of this indicator, the more efficiently the costs of production and sales of products are used.

Particular indicators of the efficiency of current costs are material intensity, wage intensity, capital intensity and energy intensity of products. Their parameters will depend on the type of production and its industry.

In a competitive environment, the issue of reducing actual costs associated with the production and sale of products is of great importance for the enterprise. Cost reduction leads to:

- to an increase in the amount of profit remaining at the disposal of the enterprise, and therefore to the emergence of the possibility of expanded reproduction;

– to expand the capabilities of the enterprise to financially stimulate employees, which contributes to their work with full dedication;

– to improve the financial condition of the enterprise and reduce the risk of bankruptcy;

– expanding the capabilities of pricing policy planning, which allows increasing the competitiveness of products and increasing sales volumes.

In order to identify reserves for reducing production costs at an enterprise, the cost structure is first analyzed. The cost structure represents the composition of costs by elements or items and their share in the total cost. Systematic determination and analysis of costs in an enterprise are very important for managing costs in order to minimize them. The cost structure makes it possible to identify the main reserves for their reduction and develop specific measures for their implementation at the enterprise.

Any organization sooner or later faces the problem of increasing production efficiency. And we are not always talking about the economic component.

What methods to prefer when organizing such work is decided by the management of the enterprise. Based on knowledge of the internal and external environment, the characteristics of production processes, it is possible to develop a plan that will lead to the achievement of the intended goal.

What is meant by operational efficiency?

Enterprise efficiency is an economic category. This concept refers to the company’s performance, which can be expressed in:

growth in production rates;
reducing costs and tax burden;
reducing the amount of emissions into the environment;
increasing labor productivity, etc.

There are also scientific works that define organizational effectiveness as the effectiveness of an operation or project in which the resulting product or new action brings in more money than was spent. Or these manipulations save a certain amount of resources, which also exceeds the costs of work associated with their implementation.

Effectiveness conditions

In most cases, in an effort to improve the efficiency of an organization, management expects to obtain a certain financial result. But this does not always reflect the strategic future of production. Therefore, it is believed that it is more correct to achieve growth rates. We can say that we have achieved economic efficiency in production if:

the financial result obtained is higher than that of competitors;
the organization allocates sufficient resources to carry out production or management changes;
the growth rate of financial indicators will be higher in the near future than that of competitors.

This approach constantly motivates the search for solutions that increase the competitiveness of production. This is important in order to carry out work aimed at strategic development.

It is also important that each structural unit of the organization is concerned with finding ways to increase its economic efficiency. After all, if one of them works poorly, the organization will not be able to improve its performance as a whole.

Tools for increasing efficiency

The ways to improve the efficiency of an enterprise are very diverse. The main ways to increase the profit of an organization are as follows:

cost reduction, which can be achieved by reducing price conditions for purchases, optimizing production, reducing personnel or wage levels;
modernization of processes or entire production, which makes it possible to achieve increased labor productivity, reduce the volume of processed raw materials, waste, and automate most operations;
changes in the organizational system that may affect the management structure, principles of customer service, communications, etc.;
strengthening marketing communications when the goal is to maximize sales volumes of goods, change attitudes towards the organization, and find new opportunities for production.

Each of these areas can be detailed and has its own methods of work. The entire management system in the company must be configured so that at any level employees take initiatives that lead to increased economic efficiency.

Often, a set of measures that should improve work efficiency affects all blocks of activity at once. This systematic approach allows for a synergistic effect.

Factors influencing efficiency

If enterprise management is interested in achieving improved results, it must analyze information about the state of the external and internal environment. Then it will be clear which of the existing factors need to be used for the benefit of future strategic development. These include:

Minimal use of resources. The less technology, equipment, and personnel are used while maintaining production volumes, the more efficient the organization.
Increasing staff efficiency by optimizing the structure, improving qualifications and training, finding more competent personnel, and changing the motivation system.
Increasing the efficiency of personnel by improving their health and improving working conditions. Measures aimed at solving these problems lead to a reduction in the number of sick days (saving money for the employer), increasing productivity and employee loyalty.
Strengthening socio-psychological factors. The use of decentralization tools in management can be a good impetus for development.
Application of the results of scientific and technological progress. Ignoring modern technologies or making excuses from their implementation due to the need for investment leads to a decrease in competitiveness and possible liquidation later. Fearing an unfavorable economic situation in the current period, companies often close the way for future development.
Using diversification, cooperation and other strategies to apply existing resources to different projects.
Attracting investment capital and other third-party financing mechanisms. Even privatization can open up ways to improve the efficiency of an enterprise.

All these factors lead not only to an increase in economic but also managerial efficiency. To monitor the effectiveness of the work being carried out, control periods and indicators that will be checked should be outlined.

Let us separately focus on the factor of employee health, for the reason that few employers yet pay due attention to this. Meanwhile, caring for the team directly affects the company’s profits. For example, according to a study conducted as part of the HR Lab. – HR Innovation Laboratory”, a smoking employee spends 330 working (!) hours a year on smoke breaks. If his salary is 50,000 rubles per month, then it turns out that over the course of a year the company loses up to 100,000 rubles in labor costs, plus about 40,000 rubles in taxes and social contributions; plus the cost of sick leave, which smokers, according to statistics, take more often. And if the employee’s salary is higher, then the expenses are even higher. What if there are dozens or hundreds of such employees in the company?

In order to eliminate this unnecessary expense item and increase the efficiency of smoking employees, we can advise companies. (Follow the link to find a calculator that will help you calculate how much your company will save if employees quit smoking.)

Where should you start?

To understand what work needs to be done to improve production efficiency, a thorough analysis should be carried out. The head of the company must have a justification for future management decisions, therefore the following is required:

collect statistics for previous years on product output, sales, number of employees, wage fund, profitability, etc.;
find out industry averages or competitors’ indicators;
compare the economic performance of the enterprise and other market participants;
depending on which indicator lags more, analyze the factors that led to this result;
identify those responsible for developing activities that should change the situation, and the deadlines for achieving new indicators.

It is possible that management will have to make many decisions regarding themselves. For example, transform the functions and style of management, distribution of responsibilities, the amount of delegated authority, methods of working with personnel and transferring information within the company.

What might be preventing you from improving your efficiency?

Even if management sees sense in changes that should lead to increased company efficiency, the results may not be forthcoming. Oddly enough, the problems lie in the psychological perception of management changes, as well as in their legal support.

For example, the introduction of new technologies and installation of equipment almost always leads to a reduction in personnel. Naturally, the company's employees will not want to be left without work. Their task is to delay such changes as much as possible. They may also resort to economic arguments, saying that reinstalling equipment will require stopping work for some time.

From a legal point of view, the process of dismissing employees is strictly regulated. If procedures are violated, the enterprise is doomed to incur additional costs, which reduces economic performance.

In order to overcome all these resistances, you need to think through a system for notifying employees about changes, demonstrating the positive aspects of implementing changes.

Additional difficulties may arise from:

with a lack of funding or inability to access investment sources;
with a lack of competencies among the company’s employees, which does not allow the implementation of planned plans;
with the lack of a strategic planning system in the organization and analytics for previous years of work.

To achieve economic efficiency, systematic and large-scale work will be required. We cannot exclude the need to involve third-party specialists who can save time on implementing changes.

In general, with a competent approach and the use of reasonable measures, it is possible to increase the efficiency of each enterprise, regardless of the situation and stage of its development it is in.

The activity of an enterprise is one of the types of efficiency of an enterprise; it represents the ratio of the result obtained to the expended material and financial resources. This type of efficiency depends, first of all, on the rational use of all types of resources with their structure. These ratios are determined mainly by the specifics of production itself, technical equipment, the level of technology development, labor organization and the ratio of intensive to extensive factors of production. The state of the structure is strongly influenced by external factors such as resource markets, supply and demand for a specific type of resource, resource prices, etc.

The process of measuring the planned or already achieved level of enterprise efficiency is associated with the definition of a criterion and the formation of a system of relevant indicators. enterprises are divided into several groups:

General efficiency;

Indicators reflecting the efficiency of the organization and use of labor;

Indicators characterizing the degree of use and distribution of production assets;

Indicators reflecting the efficiency of using all financial resources.

A set of actions and measures to increase the efficiency of production and economic activities of an enterprise is called ways to increase the efficiency of an enterprise. The main ways to increase the efficiency of production activities include reducing the labor intensity indicator and increasing it. The main ways also include the rational and economical use of resources and raw materials, reducing the capital intensity indicator and improving the company’s investment activities.

Ways to increase the efficiency of an enterprise imply the introduction of scientific and technological progress at the enterprise, including the revolutionary re-equipment of production assets based on the latest scientific achievements in engineering and technology. Such fundamental changes in technology, the mobilization of technical, organizational, social and economic factors will significantly increase labor productivity.

Ways to increase the efficiency of an enterprise also imply the use of saving mode. Resource-saving factors must become decisive to meet the ever-increasing demand for fuel, raw materials, materials and energy.

In addition, ways to improve the efficiency of an enterprise also include measures for better distribution and use of the organization's main resources and funds. It is very important to use the production potential of the enterprise as intensively as possible, to monitor the rhythm of production and the maximum load of production equipment. The result of these measures will be an accelerated growth rate of finished products without unnecessary capital investments and investments.

An important place for increasing the efficiency of an organization's functioning is occupied by organizational and economic factors. It is also necessary to develop social infrastructure and management methods. It is necessary to improve methods and forms of management, methods of planning, stimulation, and encouragement. A special place in reducing the share of resource costs and intensifying the entire economy of the organization belongs to measures to improve the level of quality of products produced for sale. The level of product quality should be a fundamental factor that requires close monitoring.

The concept of production efficiency. Economic characteristics of the enterprise. Analysis of economic efficiency indicators of fixed assets, working capital, material resources of the organization. Improving marketing and sales activities.

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Introduction

Profit is the result of investing capital in assets, the use of which has brought economic benefit. The absolute amount of profit received by an enterprise characterizes the financial performance of its activities, but does not allow one to analyze the adequacy of the effect obtained. For the owners, management of the enterprise, its personnel, the state, investors, creditors, in other words, for all possible participants in the distribution and use of the profit received, not only its size is important, but also the level of profitability of the enterprise. All other things being equal, investing in or working at a more profitable enterprise will ultimately provide the opportunity to receive higher dividends, bonuses, reduce the risk of non-repayment of loan resources, and the country's fiscal system will receive more taxes.

Thus, the role of economic assessment of the efficiency of an enterprise is especially increasing. When studying the final financial results of an enterprise’s production activities, it is important to analyze not only the dynamics, structure, factors and reserves of profit growth, but also the ratio of the effect (profit) with available or used resources, as well as with the enterprise’s income from its ordinary and other business activities.

In a market economy and fierce competition, it is always important to have an idea of the financial condition of an enterprise in order to make effective management decisions. The main tool for this is financial analysis, with which you can objectively assess: the property status of the enterprise, profit and profitability, labor resources, the degree of business risk, the ability to repay obligations to third parties, capital sufficiency for current activities and long-term investments, the need for additional sources financing, and then make informed decisions based on its results.

The purpose of such an analysis is to determine the state of the enterprise today, the acceptable parameters of the enterprise’s operation and their preservation at the current level, and to identify negative trends in the enterprise’s activities that require prompt intervention. In the process of analysis, the main factors influencing economic activity are not only revealed and characterized, but the degree of their impact is also measured.

The relevance of the topic of the thesis research lies in the fact that the study of indicators of economic efficiency of an enterprise's production activities can be used: as a tool for justifying short-term and long-term economic decisions, the feasibility of investments; as a means of assessing management skill and effectiveness; as a way to predict future results. In the conditions of market formation, new features of organizing business required not only the introduction of fundamentally different business methods, but also criteria for assessing new factors, ignoring which could lead to bankruptcy.

The economic validity of decisions made becomes a vital condition for the survival and preservation of an enterprise as an economic entity. Under these conditions, almost any representative of the enterprise management apparatus must be a good analyst. With the help of analysis of the efficiency of production activities, business plans and management decisions are substantiated, their implementation is monitored, the results of the enterprise’s activities are assessed, forecasts are made for its future state, and reserves for increasing production efficiency are identified.

The purpose of the thesis is to analyze the economic assessment of the efficiency of the enterprise and develop ways to improve it.

The implementation of this goal involves solving the following tasks:

Explore the theoretical foundations of the concept and meaning of analyzing the economic efficiency of an enterprise;

Perform an analysis of the financial and economic activities of the company JLLC “Frost and K”;

Develop a program to improve the efficiency of the enterprise's production activities.

The subject of the thesis is the system of economic indicators of the enterprise.

The object of work is the joint venture Frost and Co. LLC.

The theoretical significance of the thesis research is determined by the attempt to analyze the features of the financial and economic activities of the enterprise under study in the transitional conditions of the economic crisis.

The practical significance of the study lies in the possibility of applying the developments of the thesis in the activities of industrial enterprises in Belarus.

The work used methods of analysis of methodological, scientific, periodical literature and sources, mathematical and statistical methods. The problems of the essence and content of the production efficiency management process are the subject of research by many domestic and foreign economists. Among them: G.A. Savitskaya, L.I. Abalkin, M.I. Bakanov, A.T. Zasukhin, A.N. Zolotarev, A.P. Zudilin, S.A. Nikitin, V.V. Novozhilov, V.F. Paliy, R.M. Petukhov, I.P. Skobeleva, A.D. Sheremet, D.S. Sink, E. Whiting, S. Eilon, K. Eklund, etc. However, the theoretical principles set out in the works of scientists today need further development. Existing methods for measuring efficiency require systematization and adaptation to modern conditions of Belarusian reality.

CHAPTER 1. Theoretical foundations of production efficiency in an enterprise

1.1 The concept of production efficiency in an enterprise

current asset economic enterprise

The problem of efficiency occupies one of the central places among the totality of problems facing society. It has concerned economic science and economic practice for many centuries. This problem is becoming especially relevant at the present stage of economic development due to the growing shortage of raw materials, tightening competition, globalization of business, and increasing business risks.

In a market economy, only those enterprises survive and operate successfully that balance their income with costs and the amount of invested capital, that produce competitive products and do not produce more than can be sold. Focusing activities only on the “shaft”, on implementing planned programs at any cost, is a clear path to bankruptcy. For successful operation, each business entity must strive to improve the efficiency of its activities based on the rational use of resource potential, increasing the profitability of production, and improving the quality of products sold.

In this regard, the approach to assessing the efficiency of an enterprise is changing. In a command economy focused on increasing gross output, the main attention was paid to such efficiency indicators as labor productivity and capital productivity. In a market economy, where the target function of an economic entity is to maximize profit, the financial block of performance indicators, based on profit, comes first.

Any expedient human activity is associated with the problem of efficiency. In any case, efficiency is determined by efficiency, economic efficiency and is measured by the results obtained from each unit of the resource (factor) of production used.

The concepts of “economic effect” and “economic efficiency” are among the most important categories of a market economy. These concepts are closely related. The economic effect presupposes some useful result expressed in a cost estimate.

Typically, the beneficial outcome is profit or savings in costs and resources.

The economic effect is an absolute value, depending on the scale of production and cost savings.

V.V. Kafidov notes that economic efficiency is the relationship between the results of economic activity and the costs of living and embodied labor and resources. Economic efficiency depends on the economic effect, as well as on the costs and resources that caused this effect. Thus, economic efficiency is a relative value obtained by comparing the effect with costs and resources.

N.L. Zaitsev believes that production efficiency is characterized by its effectiveness, which is expressed in the growth of the well-being of the country's population. Therefore, production efficiency can be defined as the optimal use of resources in comparison with social needs.

To clarify the essence of economic efficiency of production, determine its criteria and indicators, it is necessary to distinguish the content of the concepts “efficiency” and “effect”.

Effect is an absolute value denoting the achieved result of a process. Economic effect is the result of human labor creating material wealth. Of course, the result itself is very important, but it is equally important to know at what cost it was achieved. Therefore, the commensurability of the effect and the costs of achieving it is the basis of economic efficiency. In addition to the absolute magnitude of the effect, it is necessary to know its relative magnitude, calculated by dividing the overall result (effect) by the resource costs that determined the receipt.

Therefore, efficiency expresses the degree of effect and in its most general form is expressed by the formula:

P - production results;

Z is the cost of obtaining this result.

It is difficult to apply the efficiency formula in practice for calculations, since the numerator and denominator of a fraction in most cases cannot be quantified and cannot be calculated in common units. Most often, the results of economic activity are diverse and it is impossible to reduce them into a single result, even using universal monetary measures. In some cases, the result can only be qualitative and cannot be expressed in numerical form at all. These most often include social results.

The problem of efficiency is always a problem of choice, for example, what to produce, what types of products, in what way, how to distribute them and how much resources to use.

The definition of efficiency is based on the principle of comparative advantage, which is the basis for the specialization of both countries in general and individual producers in particular, as well as the cornerstone of free trade (discovered by D. Ricardo). It is thanks to the comparative advantage of using some resources over others that it is possible to determine the most efficient production option, providing the greatest difference between results and costs, and to establish the alternative cost of any resource.

Thus, efficiency can be defined in the same way as the relationship between the values of goods that are produced and the values of goods whose production had to be abandoned due to their greater opportunity cost. Consequently, efficiency can be defined in two ways: firstly, as the ratio of the result of production to the costs of its implementation; secondly, as the ratio of the result of what was produced to what had to be abandoned when choosing an alternative option.

In accordance with these definitions, in practice, in economic calculations, a distinction is made between “general” (absolute) and “comparative” economic efficiency.

V.V. Voronov notes that the overall (absolute) efficiency of costs and resources can be determined at all levels of management and is calculated as the ratio of the total value of the economic effect to individual types of costs of basic resources. Two indicators are widely used as general indicators of efficiency at the national economic level:

growth of produced gross domestic product (national income) per capita;

production of gross domestic product per 1 rub. costs. Thus, production efficiency is the ratio between the obtained production results - products and services, on the one hand, and the costs of labor and means of production, on the other. In its most general form it can be represented by formula 1.2:

Ep = Final output of production / Costs of production factors (1.2)

Production efficiency is the most important qualitative indicator of the economy, its technical equipment and labor qualifications. Comparison of costs and results is used in the practice of managing firms, enterprises and other business entities.

The main indicators of production efficiency R.A. Bogaeteeva says:

Labor productivity;

Capital intensity per unit of GDP or specific types of products;

Capital productivity of a unit of fixed assets;

Material consumption per unit of GDP or specific types of products;

The ratio of extensive and intensive factors in GDP growth;

Competitiveness of manufactured products;

Payback period, etc.

Factors contributing to increased production efficiency include:

acceleration of scientific and technological progress, use of scientific achievements and advanced technologies in production;

structural restructuring of the economy;

mastering modern management;

development of specialization and cooperation;

taking advantage of the international division of labor.

Thus, we can conclude that production efficiency is the sum of the efficiencies of the entire set of enterprises operating in the economy. The overall level of efficiency is greatly influenced by the state through price, budget, tax and customs policies, through government orders and various forms of support for enterprises.

Increasing the efficiency of the economy, creating competitive industries both in the domestic and foreign markets is one of the urgent tasks in implementing structural and institutional transformations of the economy of the Republic of Belarus.

1.2 System of indicators for assessing production efficiency

The indicators used to determine the level of efficiency on the scale of the national economy, region, and industry differ slightly from the indicators used at the level of primary economic entities and are of a private nature.

It is impossible to assess the activity of an enterprise and its economic efficiency with one single indicator. The variety of properties and characteristics of various types of production, economic and commercial activities of an enterprise also determines the variety of indicators. At the same time, the problem with their use is that none of them serves as a universal indicator by which one could clearly judge success or failure in business. Therefore, in practice, they always use a system of indicators that are interconnected and evaluate or show various aspects of the enterprise’s activities.

An indicator is a sign that characterizes any one aspect of a phenomenon, action, their quantitative or qualitative characteristics (aspect) or the degree of completion of a certain task.

In our country, science and practice have formed a system of economic, financial and statistical indicators, methods for their calculation and accounting have been developed, but they were designed for a centrally planned economic system. With the transition to market relations, this system of indicators, both in terms of their calculation and accounting, and their role in justifying decisions, has undergone and is undergoing certain changes. So, if under the conditions of a planned economic system in assessing the activities of an enterprise, such indicators as plan fulfillment, volume of marketable products, volume of gross output played an important role, then in market conditions the following indicators come to the forefront: sales volume, profit, profitability and a whole range of optimization indicators. The focus of production on meeting demand has sharply increased the importance of assessing various options for meeting demand.

All indicators, based on market requirements, can be divided into:

Estimated, characterizing the achieved or possible levels of development or results of a particular activity.

Cost, reflecting the level of costs for carrying out various types of activities.

This division is very arbitrary. It depends on the purpose of the analysis being performed. For example, the “production cost” indicator in one case can be considered as an estimate, characterizing the achieved level of labor costs, and in another case (when planning) it can be defined as a cost indicator, allowing one to determine the amount of costs in the provision of services. The same can be said about the significance of indicators. This largely depends on the nature (type) of activity. For example, the profit indicator, despite all its importance, is not of equal interest to everyone: the lessor (of land, buildings, equipment, etc.) is more interested in the movement of liquidity of a legal entity, and shareholders are interested not only in the size of dividends, but also in the stock price, which depends on the growth rate of their sales volume.

In the early period of development of the pricing system, most business entities produced a relatively narrow range of goods, and overhead costs were a relatively small part of the total costs of these entities. Consequently, it was common for business entities to allocate fixed costs based on the ratio of direct labor required for each product, and any inaccuracies in cost allocation had little effect on the cost of the product. In the modern period, the calculation of costs based on production activities takes into account the peculiarities of the shift in accounting from the standard hour/cost criterion towards pricing that takes into account additional aspects of activity.

The most popular method of cost analysis in enterprises is drawing up diagrams for items included in the cost of production. A simple analysis clearly shows which articles have the greatest share. By viewing materials, for example, for the last year, you can obtain data on seasonal changes, which will help in the future in optimizing the use of resources.

Most often, the costs of energy resources (in industrial enterprises), materials (for example, in assembly production) and wages (for example, in the service sector) dominate.

Measures aimed at reducing costs usually include organizational measures: control of prices for materials and components, organization of tenders for their purchase, installation of separate workshop meters for electricity consumption and transfer of energy-intensive production to night shift work. There are also non-standard solutions.

A great effect is achieved by optimizing warehouse stocks, controlling material consumption, as well as reducing the cost of transporting products or entering new markets where delivery will be cheaper. Today's manufacturing environment is very different from previous manufacturing with a greater number of product types and the opening of marketing channels. Increased use of technology means that the cost of direct labor in the final cost of the product is reduced. In addition, the need for product differentiation meant the development of marketing, research, development and logistics. It is obvious that the traditional costing system, based on direct labor, no longer corresponds to reality. However, it is still widely used in many enterprises. Other organizations have recognized the technological changes taking place and are using machine hours as a cost allocation base. In both cases, there will be a tendency to overestimate the cost of high-volume products and underestimate the cost of low-volume products. This distorts measures of relative profitability and can lead to large errors in product pricing and product combination decisions. This system also ignores the costs of marketing, engineering and other forms of supporting activities when calculating product costs.

However, a number of enterprises in Belarus, having gone through the initial stage of cost optimization, approach cost reduction and planning professionally - using special techniques. This group is the smallest in Belarus; its representatives are not just involved in increasing sales volume, they know exactly what volume of sales they need. They calculate the break-even point - one of the important indicators in production management, linking sales volume and costs.

Traditional accounting distributes the cost of all resources of an organization based on determining the total costs for all types of activities carried out in the process of providing goods and services, and then redistributing these costs to individual types of activities. The main thing in economic calculations is to correctly divide costs into fixed and variable. The problem is that even for two similar businesses, the same expense items can be allocated in different ways. It depends on various reasons. In particular, there are semi-fixed costs, which may depend on production volumes, but grow in steps; accordingly, an individual approach is required. By incorrectly distributing indirect variable costs across products, you can make an incorrect decision about the effectiveness of a particular activity. Thus, the accuracy of cost allocation can in some cases influence strategic decision making.

Total costs (Zo) for a given volume of output consist of fixed costs (Zpost) and variable costs (3period units) per unit of output (Q) (1.3):

Zo = Zpost + 3per.unit H Q (1.3)

The break-even point is the volume of output at which total costs and total revenue are equal.

If the entire volume of output is sold, then the total income for a given volume of output Q is equal to (1.4):

Addt = Grandfather H Q, (1.4)

where Dotsh is the total income;

Grandfather - income per unit of production (price).

The minimum volume of sales at which total income is equal to total costs, i.e., this type of activity pays back the costs invested in it, is called the break-even point (TB).

Break-even point (TB) is calculated using formula (1.5):

TB = Zpost / Grandfather - 3per. units (1.5)

If an enterprise operates in the service sector or with a diverse range of goods, then the break-even point is calculated not in physical terms, but in value terms using the following formula (1.6):

Tb = Zpost / 1 - 3ud, (1.6)

where Itch is the relationship between variable costs and expected sales volume.

This analysis is aggregated, aimed at drawing attention to areas of influence rather than finding clear answers to decision-making problems. Calculation of the break-even point is done under several restrictions. It is assumed that there will be no changes in prices for raw materials and products during the period for which planning is being carried out; fixed costs remain unchanged over a limited range of sales volumes; Variable costs per unit will not change as sales volume changes; sales are carried out evenly.

The local efficiency method is a costing method that facilitates decision-making through a more accurate distribution of costs among individual types, and in which the emphasis is not on the activities of the entire organization, but on the efficiency of the department or site.

Local efficiency is associated with the efficient use of a complex of production resources. Local efficiency encourages maximum output from each operating function. Each function strives for efficiency at its level of production of goods and services.

In general, the break-even point model allows you to evaluate which products are more effective by calculating several scenarios: optimistic, pessimistic and most likely. You can also find out the sales volume required for the organization to break even if one of the constant parameters changes.

The break-even analysis of an enterprise can also be supplemented with the following auxiliary coefficients (1.7-1.8):

financial safety margin (FS):

Fpr = V - Tb / V, (1.7)

where V is sales volume;

TB is the break-even point.

operating leverage (Op):

Op = DP / DV, (1.8)

where DP is the change in profit;

DV - change in sales volume.

The margin of financial strength allows you to estimate the additional sales volume above the break-even level, and the operating leverage characterizes the change in profit depending on the change in sales volume. However, it is necessary to take into account the goals and objectives of the organization as a whole, so as not to cause incorrect behavior and changes in values in the business.

Depending on the purpose of the analysis, indicators can be expressed in the form of absolute, relative and average values. Structural and incremental indicators are also distinguished.

Absolute indicators can be either cost or natural.

In market relations, paramount importance is attached to value, which is due to the essence of commodity-money relations.

Absolute indicators reflect the level of development of an enterprise achieved over a certain period of time.

They are: turnover (sales volume), gross and partial revenue, gross and partial profit, the amount of dividends, the level of production and sales costs, fixed and circulating production assets, authorized capital, debt, etc.

Relative indicators are distinguished as ratios of absolute indicators, characterizing the share of one indicator in another, or as ratios of heterogeneous indicators.

The procedure for assessing them consists of comparing the reported values with the basic planned values, averages for the previous period, reporting values for previous periods, industry averages, competitors’ indicators, etc. These include: profit per unit of cost of fixed assets, costs “or authorized capital; performance; capital-labor ratio, etc.

Structural indicators - for expenses, capital, income - characterize the share of individual elements in the total amount.

Incremental indicators reflect their changes over a certain period. They can be given in relative or absolute terms.

These are, for example, changes in the authorized capital for the year, profit for the year, etc. .

Consequently, enterprise managers deal with diverse and heterogeneous indicators, and in the same case, some of them can improve while others worsen. In market conditions, indicators of the quality of products or services provided are important, since product quality has a strong impact on both increasing the competitiveness of goods and increasing the selling price. The latter increases sales volume and, consequently, profit growth.

A systematic and comprehensive analysis of the efficiency of the enterprise will allow:

Quickly, efficiently and professionally evaluate the performance of economic activities of both the enterprise as a whole and its structural divisions;

Accurately and timely find and take into account factors affecting the profit received for specific types of goods produced and services provided;

Determine production costs (production costs) and trends in their changes, which is necessary for developing the pricing policy of the enterprise;

Find optimal ways to solve enterprise problems and make a profit in the short and long term.

When considering indicators, it is important to note that market relations assume that each area of business must have its own indicators (often not used anywhere else). Thus, in many branches of the food industry (canning, sugar, etc.), in order to reduce production costs, the degree of depth of processing of raw materials, the use of secondary raw materials, etc. are of great importance.

It is important to understand that there is not and cannot be an indicator of economic activity that would be suitable for all occasions. In order to develop in conditions of intense competition, a manager must see and feel the results of all types of activities, which means that it is necessary to form a system of interrelated indicators that reflect the degree of achievement of goals, the period and type of organization.

In the conditions of a market economic system with its fierce competition, indicators characterizing the financial condition of the enterprise are important. To assess the effectiveness of financial activities, a system of indicators is also used, and, on the one hand, an assessment is made of indicators of the state of finances at the enterprise, and on the other hand, their successful application. Knowing the financial position of the enterprise at any given moment is of great importance. For this purpose, various coefficients are used.

1. Current solvency ratios.

Coverage ratio (ratio of liquid assets to short-term liabilities). Used to determine the company's ability to pay current debts;

Liquidity ratio (the ratio of cash, securities and accounts receivable to current liabilities). Characterizes the ability to pay bills as quickly as possible.

2. Long-term solvency ratios:

Debt to equity ratio (debt to equity ratio). Shows the degree of financial independence;

Interest coverage ratio on loans (the ratio of the amount of net profit before taxes and interest on the loan to interest on the loan). Characterizes the degree of protection of creditors from unscrupulous payers.

3. Profitability ratios:

Net profit ratio per 1 rub. sales (the ratio of net profit to total sales). Characterizes the amount of profit brought by each ruble received from the sale of products;

Asset turnover ratio (the ratio of total sales to the average asset). Shows how effectively assets are used to obtain each ruble of sales;

Return on invested capital (the ratio of net profit to the average asset). Determines profitability;

Return on equity capital ratio (the ratio of net profit to the average share capital). Characterizes the profitability of investments;

Profit ratio per share (the ratio of net profit to the number of shares). Calculates the income generated by one share.

4. Financial stability coefficients:

The coefficient of provision with own working capital (the ratio of own working capital to the total amount of working capital of the enterprise). Reflects the availability of the enterprise's own working capital necessary for financial stability (0.1 - 0.5);

The coefficient of maneuverability of own working capital (the ratio of own working capital to the total amount of own funds (equity capital) of the enterprise). Shows the ability of the enterprise to maintain the level of its own working capital and the ability to replenish working capital, if necessary, from its own sources (0.2 - 0.5).

Coefficients characterizing the market position:

The market price of a share to earnings per share ratio (the ratio of the market price of one share to earnings per share). Shows how much the investor can pay for each ruble of income;

The ratio of dividends received per share at the market price (the ratio of the dividend per share to the market price of one share). Reflects the return on the capital invested by the shareholder;

Market capital ratio (the ratio of the change in the market price of a share of a particular company to the average change in the prices of all shares listed on the market). Characterizes the degree of change in specific prices in comparison with stock prices of other enterprises.

One of the most important areas for increasing production efficiency is improving product quality - a set of properties that determine the degree of its suitability to satisfy social needs.

High quality products ensure economical use of material and labor resources, stabilization of the reproduction process, economic growth, proportionality and competitiveness, including in the world market. Along with the quality of the product, the price of these goods also matters to the consumer. Therefore, for entrepreneurs to succeed in their activities, it is necessary to ensure competitive quality and competitive prices for their goods and services. Currently, standardization and certification of products have become widespread. We are talking about the deployment of work to certify quality systems for compliance with the requirements of the ISO 9000 series standards. The main principle on which this system is built is the prevention of product defects at the stages of its development and manufacturing.

Social efficiency is characterized by the level of satisfaction of the entire set of human needs. This is, first of all, manifested through the volumes of production and consumption of various types of goods and services per capita, and their compliance with scientifically based standards. The social efficiency of the economy, in addition, is associated with the degree of satisfaction of a special group of social needs of people - maintenance and safe working conditions, employment, the state of the living environment, the amount of free time, the provision of the population with services in education, health care, etc. All this taken together is called quality of life. The quality of life covers and characterizes the entire range of its properties, extends to all its aspects, reflects people’s satisfaction with the material and spiritual benefits provided to them, reflects security, comfort, convenience of living conditions, their adaptability to modern requirements, state of health and life expectancy.

Economic and social efficiency interact and determine each other. Increasing economic efficiency is the basis for raising the living standards of the people and meeting their social needs. In turn, solving social problems has a positive effect on enhancing the human factor and increasing economic efficiency.

It is important, of course, not only to record the economic efficiency of production and calculate its indicators, but also to know what it depends on.

The factors and pathways influencing production efficiency are quite diverse. There is no established point of view regarding exactly which factors and to what extent they affect efficiency, however, in economic theory they are usually grouped into the following structural and logical model:

1) scientific and technical - scientific and technical progress, mechanization and automation of production; introduction of resource-saving, waste-free technologies; use of new materials and secondary resources, etc.;

2) organizational and economic - reducing labor intensity, eliminating downtime, improving management and organization of production and labor; reduction of equipment commissioning time; reduction of transport costs; compliance with GOSTs and product quality systems, etc.;

3) socio-psychological - material and moral interest; professional and qualification level of employees; ensuring order and labor discipline in production; high level of execution and responsibility for the assigned work, etc.;

4) foreign economic - development of foreign trade; open door policy; free economic zones; organization of joint ventures, etc. .

Thus, we can conclude that any production represents a targeted expenditure of resources to obtain certain results. Therefore, the ratio of the result to the amount of costs is an objective and main criterion for the feasibility of organizing production activities. Quantitative parameters of the production result, even in relation to costs, do not yet mean the economic result of production. It becomes such only when the magnitude of the result is correlated with the magnitude of the real need for it.

1.3 Theoretical aspectsraisechanges in production efficiency

To operate successfully, generate profits and increase profitability, an enterprise must look for ways to improve.

The use of a system of generalized production efficiency indicators, each of which reflects various aspects of the production and economic activity of an enterprise, allows us to obtain a comprehensive, multifaceted assessment of efficiency and develop ways and methods for improving production indicators.

In the system of generalizing indicators, the most important is profitability. An increase in this indicator is ensured, firstly, by an increase in the amount of profit, and, secondly, by improving the use of the corresponding type of resources or reducing costs.

Since profitability is directly dependent on the amount of profit, the search for ways to increase profitability should be considered in conjunction with profit growth. The most important ways to grow profits are to increase income from sales of products, as well as from other types of production and commercial activities of the enterprise. However, at industrial enterprises the main type of income is revenue from sales of products, the growth of which is achieved through:

Studying the product market based on marketing research and ensuring production of products in accordance with consumer requirements;

Ensuring the competitiveness of manufactured products by improving their quality, reducing costs, as well as after-sales service;

Price increases based on improved product quality as a result of innovative activities of enterprises and the creation of market novelty goods.

The efficiency of production activities also depends on the cost of products sold. The lower the cost, the higher, other things being equal, this indicator.

To improve the efficiency of an enterprise, it is of paramount importance to identify reserves for increasing production and sales volumes, reducing the cost of products (works, services), increasing profits and increasing profitability.

To determine the main directions for searching for reserves for increasing profits and increasing profitability, the factors influencing them are classified according to various criteria (Fig. 1.1).

Figure 1.1 - Classification of factors influencing reserves for increasing profits and increasing profitability

External factors include natural conditions, government regulation of prices, tariffs, interest, tax benefits, penalties, inflation, etc. These factors do not depend on the activities of enterprises, but can have a significant impact on profit and profitability.

Internal factors are divided into production and non-production. Production factors characterize the availability and use of means and objects of labor, labor and financial resources and, in turn, can be divided into extensive and intensive. Extensive factors influence the process of making a profit through quantitative changes: the volume of means and objects of labor, financial resources, operating time of equipment, number of personnel, working hours, etc. Intensive factors influence the formation and increase of profit, increasing profitability through “qualitative” changes: increasing equipment productivity and its quality, using advanced materials, improving processing technology, accelerating the turnover of working capital, increasing the qualifications and productivity of personnel, reducing the labor intensity and material intensity of products, improving labor organization and more efficient use of financial resources, etc.

Non-production factors include, for example, supply, sales and environmental activities, social working and living conditions, etc.

When carrying out the financial and economic activities of an enterprise, all of the above factors are closely interconnected and interdependent. The “direct” impact on the cost of production, and therefore on profit and profitability, is related to how rationally and economically material resources are spent: after all, the share of material costs in the cost is significant and ranges from 60 to 90%.

Tendencies for domestic producers to lag behind competitors in terms of costs began to appear in the mid-90s. According to estimates, these indicators in the Republic of Belarus are 2.5-3 times higher than in developed countries, while specific and material and energy costs were 4-6 times higher, and labor productivity was 3-4 times lower than in competitors in countries with developed market economies.

There are several reasons for the current situation with cost savings and profit growth: imperfection of conceptual approaches, problems of technical and technological renewal and improvement of production, its rationalization, the problem of increasing labor productivity, improving regulatory management, forms and methods of stimulating workers. Cost management approaches are focused on saving certain types of costs (material, energy, labor), and formally this formulation of the problem is logical and fair.

At the same time, during its implementation, contradictions arise: how can one achieve savings in raw materials and material components, labor consumption per unit of production in the food or light industry, mechanical engineering or construction without compromising quality and consumer properties?

Obviously, a different setting of goals and objectives for cost savings is necessary.

Cost reduction:

Firstly, it is the most important source of growth in the profit of the enterprise, and, consequently, an increase in funds allocated for expansion, technical re-equipment of production, development and introduction of new types of products, for social security of members of the workforce and satisfaction of the interests of the owner of the enterprise’s property;

Secondly, it provides the opportunity to reduce product prices, which is the most important condition for successful competition in the market. In the presence of competition, the winner is the one who can offer the best quality product on the market at a lower price. Reducing prices allows the company to attract a larger number of buyers, take a larger market share, squeezing out competitors, and increase the overall profit due to increased sales volume;

Thirdly, it reduces the need for working capital, which allows you to increase expenses for other needs of the enterprise

In our opinion, the goal is to save costs and increase profits and, accordingly, increase production efficiency. There should be an increase in revenue for a group of goods or the enterprise as a whole that is faster than costs, which can be achieved both by increasing sales volumes and changing the range of products produced.

D.S. Molyakov believes that such an approach allows us to reveal the meaning and content of the mechanisms for increasing profits, linking it with the solution of specific problems - updating and improving production, increasing labor productivity, changing the range and consumer qualities of manufactured products, using secondary raw materials and production waste, creating completely waste-free industries , increasing sales volumes. Since the volume of production of many enterprises is limited, for example, by the volume of raw materials, the main reserve in this case is updating the product range.

Timely revision of the structure and range of products, refusal to produce products that are not in demand, the use of so-called alternative costs and dumping when developing new types of products and developing new markets, in our opinion, will significantly increase the effectiveness of the applied anti-cost mechanisms.

Solving the problem of improving the financing of renovation and technical re-equipment of production is also one of the most important in improving production efficiency management.

The constant development of the production potential of industrial enterprises, updating of equipment and technology will create real conditions for a more economical and rational use of resources, reducing production costs on this basis, increasing competitiveness, outstripping the costs of increasing production volumes and sales of products.

The deployment of production factors to reduce unprofitability and increase solvency and profitability is largely determined by the use of so-called investment factors.

Cost standards, as a bar, a standard for the use of production resources for enterprises, in our opinion, should not only be preserved, but also be further developed. In particular, a transition must be made from industry-specific to individual cost standards; when developing them, it is necessary to take into account the best achievements of competitors, foreign experience, with the help of which the rationalization movement should receive a new impetus as an important lever for reducing costs and increasing profits.

Tasks for rationalizing energy consumption, in our opinion, should also be focused not only and not so much on improving the work of auxiliary production, as is currently the case, but should be aimed primarily at introducing new technical solutions and improving the technology of main production.

Another real direction for reducing costs and increasing profits is to create conditions for increasing labor productivity and reducing lost working time (elimination of hidden unemployment). A situation in which 10-15 people are employed in jobs where competitors employ workers is unacceptable.

A way out of this situation could be to use the level of labor productivity of competitors as an assessment indicator of the use of labor resources at an enterprise.

Other directions for changing the current situation could be the improvement of the existing system of remuneration and material incentives for workers. In this regard, of particular interest is the wage system based on the participation of workers in profits and the creation of workers' property. This type is referred to abroad as economic-motivational systems. Foreign experience shows that within two years the introduction of such a system leads to an increase in labor productivity by an average of 10-15%. This is achieved through a closer “link” of employees to the results of the company’s work, the formation of a sense of ownership and involvement, and the inclusion of the owner’s motivation reserves. Employees' participation in profits occurs in the form of contributions to the “workers' funds” of a share of the current year's profits using a preferential tax regime. The creation of workers' property is carried out by reducing savings from deductions of a certain part of wages into production on preferential terms.

In the conditions of the crisis of primary production observed in a number of enterprises and industries, attention to the use of secondary raw materials, production waste, and the introduction of completely waste-free production has been unjustifiably weakened. This reserve for increasing the efficiency of production activities is especially relevant in the woodworking industry. Considering that any initially successful business can be destroyed in the presence of an insolvent environment, measures to manage costs and profits, supplemented by measures to improve solvency management, are advisable, which are recommended to be aimed at:

1. Finding ways to restructure the debts of enterprises (if any). The great importance of these measures is determined by the lack of own working capital, which leads to an increase in debt, an increase in interest payments, etc. At the same time, steps to revise the terms and conditions of debt repayment, including at the national level (payments to the budget and targeted budget funds), in our opinion, should be carried out for each organization individually, taking into account the results of an analysis of the causes of debt, supported by business a plan for the development and improvement of production, including issues of property reform, investment, transfer of inefficient facilities and production to an independent balance sheet.

2. Improving asset management, reducing excess inventories, improving their rationing, solving problems of accounting and evaluating them (if it is impossible to use them in production at a real price) for subsequent sales to third parties, increasing material interest in the rational use of resources.

3. Increasing the efficiency of accounts receivable management using tools for inventory, monitoring, timely revision of the terms and conditions of settlements in relation to chronic defaulters, as well as the possibilities provided by law for the assignment (assignment) of debt to third parties.

4. Reducing the risks of insolvency (when developing new markets or concluding agreements with new trading partners) through the use of factoring, i.e. conclusion of tripartite agreements through the mediation of banking structures.

One of the conditions for mobilizing and using reserves for growth in production volumes and efficiency is the formation of an objective economic interest in profit growth among teams of organizations.

At the same time, the effectiveness of measures to improve cost and profit management can be increased as a result of taking steps to reform production - denationalization and privatization, industrial restructuring, re-profiling of production and structural restructuring - improving tax legislation and pricing.

Cost reduction can occur through the organization of production and labor. As a result of changes in the organization of production, forms and methods of labor, improvement of management and reduction of costs, as well as improvement of maintenance of the main production. Improving the use of fixed assets can be achieved as a result of increasing the reliability and durability of equipment, improving the system of scheduled maintenance, improving the maintenance and operation of fixed assets.

As for improving the organization of production and labor, this process, along with cost savings by reducing losses, in almost all cases ensures an increase in labor productivity, i.e. saving labor costs.

Recommended list of dissertations

Methodology for assessing the effectiveness of an organization (using the example of the printing industry) 2008, Doctor of Economics Merzlikina, Elena Mikhailovna
Theory and methodology of cross-analysis of production intensification 1992, Doctor of Economics Khorin, Alexander Nikolaevich
Assessment of the economic efficiency of printing enterprises in a market economy 2000, Candidate of Economic Sciences Chaplygin, Kirill Konstantinovich
Management of production intensification at industrial enterprises 2004, Candidate of Economic Sciences Sotnikova, Elena Anatolyevna
Intensification as a factor in increasing business efficiency: the example of printing enterprises 2010, Candidate of Economic Sciences Avramenko, Galina Mikhailovna

Introduction of the dissertation (part of the abstract) on the topic “Increasing the efficiency of enterprise activities based on production intensification”

The relevance of research. Modern conditions of economic development require increasing the efficiency of all areas of activity of industrial enterprises, mastering new technologies, searching for reserves for reducing costs and ensuring the quality of work performed. In this regard, the requirements for the level of business activity of an enterprise are increasing.

In the context of the need to increase business efficiency and limited opportunities to attract additional resources, the issues of intensive use of existing enterprise resources become essential.

This problem can be solved through comprehensive business intensification, which is one of the most important directions in the development of management theory and practice; its implementation makes it possible to master the economic situation at the right time and determine the direction and size of management influence to achieve the goals.

The instrumental framework for increasing efficiency helps to solve the problem of the influence of the processes of the current and financial and investment activities of an enterprise on the assessment of the results of its management.

The introduction of a tool such as a system of intensification indicators into the management of industrial enterprises will make them focused on more efficient use of each unit of available resource, functioning and development in conditions of a predominantly intensive type of production, and therefore more competitive.

In connection with the above, the study of the problem of assessing the efficiency of an industrial enterprise based on the intensification of production, quantitatively linking their indicators, as well as determining the optimal level of intensification for enterprises seems very relevant and practically significant. The insufficient 3 number of scientific and practical developments in the field of formation and application of intensification indicators that influence production efficiency indicators in the management system of industrial enterprises determined the choice of the topic of the study and its relevance.

The degree of development of a scientific problem. The institutional development paradigm and the possibility of using its results in the system of methods for organizing and assessing the impact of intensification on production efficiency have not yet been fully developed, although this problem attracts the attention of foreign and domestic economists. Among foreign researchers, one should name D. North, L. Thévenot, O. Favreau, F. Aimard-Duvernay, etc. Among domestic developments, it is worth noting the work of such researchers as V. Andreev, V. Mayevsky, E. Nikolskaya, R. Nureyev, A. Oleynik, A. Sheremet, R. Chvanov and others.

A review and analysis of the views of many economists leads to the conclusion that there are several points of view in understanding the essence of efficiency and intensification. The difference in interpretations of the definition gives rise to a variety of proposed methods for assessing the level and scale of intensification and its impact on production efficiency. Increasing business efficiency under the current conditions of economic development is impossible without intensifying production and economic processes. This is precisely why close attention is paid to the intensity indicators of any organization seeking to improve the efficiency of its activities.

Currently, new prerequisites for business development have appeared in the domestic industry, and it is the influence of intensification on production efficiency, which ensures the involvement of the entire existing potential of enterprises in social reproduction and the creation of conditions for its more efficient use.

The purpose and objectives of dissertation research. The purpose of this study is to develop a mechanism for increasing the efficiency of an industrial enterprise based on the intensification of production.

In accordance with this goal, the work set a number of tasks that were solved during the study:

The essence of the concept of efficiency is revealed and its definition is clarified; -a classification of forms and types of intensification has been developed;

The relationship between intensifying production and increasing the efficiency of the enterprise is substantiated; the essence, types and features of intensity indicators and their difference from performance indicators of industrial enterprises are determined;

The role of intensification in production efficiency management has been studied; a methodology for assessing the impact of intensification on production efficiency has been developed and tested.

The object of the study is industrial enterprises.

The subject of the study is the development of a scientific and methodological basis for increasing the efficiency of an industrial enterprise based on the intensification of production.

The theoretical and methodological basis of the study are provisions that reflect modern views on the strategy, approaches and practice of increasing the efficiency of an industrial enterprise based on the intensification of production.

The theoretical prerequisites were the research of domestic and foreign scientists on the relationship between the intensification of production and increasing the efficiency of an industrial enterprise.

During the research process, such logical techniques as analysis, synthesis, comparison, generalization, observation, and the method of expert assessments were used.

The information base of the study consisted of domestic and foreign publications and official statistics.

The scientific novelty of the dissertation research lies in the substantiation of the new role of production intensification in increasing the efficiency of an industrial enterprise.

The forms and types of intensification have been classified, which will allow enterprises to take a comprehensive approach to increasing the intensity of use of each unit of available resource in the process of production activities, as well as expand the range of intensive development factors;

The existence of a relationship between intensification and business efficiency has been substantiated and proven, which should be reflected when creating a management model for various areas of the organization’s activities, since efficiency in production characterizes the success of the activities of an economic entity and should be considered in the relationship of benefits and losses of an economic entity; the intensification instrumental base has been systematized and supplemented, which will make it possible to implement the requirements of a systematic approach to increasing the efficiency of the enterprise’s activities, which is a combination of three components: current, investment and financial;

A methodology has been developed for assessing the impact of intensification on the efficiency of an industrial enterprise, based on the calculation of intensity indicators, which will make it possible to establish the dependence of the level of efficiency of an industrial enterprise on the degree of its intensification and to select the optimal management decision that helps strengthen the competitive position.

The theoretical and practical significance of the results obtained is as follows:

1. Theoretical ideas about the influence of intensification on increasing the efficiency of industrial enterprises have been expanded.

2. Scientific and methodological aspects of increasing efficiency based on production intensification are revealed. The domestic experience of using intensity and efficiency indicators in production management is considered.

3. The method for assessing the impact of intensification on the efficiency of an industrial enterprise has been theoretically substantiated and experimentally tested. The proposed methodology can be applied at enterprises in various industries of small, medium and large businesses.

Approbation of dissertation research. The main provisions of the dissertation were presented at meetings of the Department of Economics and Accounting, as well as at scientific and technical conferences of young scientists of the State Educational Institution of Higher Professional Education "RosZITLP" (2009, 2010), State Educational Institution of Further Professional Education "State Academy of Advanced Training and Retraining of Personnel for Construction and Housing -municipal complex of Russia" (2010) and the National Educational Institution of Higher Professional Education "National Institute of Business" (2011).

The dissertation research materials can be used in the educational process when delivering lectures in the disciplines “Organizational Economics”, “Strategic Management”, “Production Management”.

The introduction of intensity indicators and, based on them, efficiency assessment was tested in the dissertation using the example of five industrial enterprises. The results of the study have found practical application in the activities of CJSC NPO Garant, as evidenced by the certificate of implementation.

Publications. 6 scientific papers with a total volume of 2.63 pp were published on the topic of the dissertation, including 3 articles in journals recommended by the Higher Attestation Commission of the Russian Federation. The published works reveal the main content of the scientific research and the results obtained.

Structure and scope of work. The dissertation consists of an introduction, three chapters, a conclusion, a list of references of 106 titles, and 11 appendices. The work contains 159 pages of main text, including 18 tables, 9 figures.

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Conclusion of the dissertation on the topic “Economics and management of the national economy: theory of management of economic systems; macroeconomics; economics, organization and management of enterprises, industries, complexes; innovation management; regional economy; logistics; labor economics”, Klishevich, Natalya Nikolaevna

Chapter 2 Conclusions

1. As a result of our research, the criteria for the intensification of production activities, traditionally measuring its level and scale for industrial enterprises, have been streamlined. A solution to the problem of measuring intensification is proposed to transfer from a static plane to a dynamic one by considering aggregate indices of changes in traditional indicators of labor productivity and capital productivity.

2. Intensity indicators are proposed that allow one to assess the level of comprehensive intensification and the direction of its change in various areas of activity of an industrial enterprise: current, investment, financial. The essence, structure, goals and objectives, domestic experience and problems of introducing intensity and efficiency indicators at industrial enterprises are considered.

3. It is concluded that the main strategic goal of intensification is the intensity of use of each unit of resource available to an industrial enterprise. To assess the intensity of a business process, modified traditional intensity indicators and new, not yet widely used, indicators are proposed.

4. A generalized set of processes for creating value in industrial enterprises is presented, allowing one to outline directions for the development of intensive plans, taking into account not only the traditional production aspect, which for a long time remained the main one in the entire internal value chain for achieving financial goals.

5. The management analysis tools, which are the main source of information for carrying out the necessary calculations, are considered.

Chapter 3. Assessing the impact of intensification on the efficiency of an industrial enterprise

3.1. Indicators characterizing production efficiency

The study of foreign and Russian literary sources on this issue led to the conclusion that economic efficiency is a fundamental economic category of a market economy, which is used to characterize the successful functioning of individual economic entities, industry markets and the national economy as a whole.

Increasing the efficiency of an enterprise, or business efficiency, is the primary task of the management of any economic entity operating in market conditions. Solving this problem is directly related to ensuring the implementation of the adopted strategic development plans of the organization. In this regard, for the purposes of managing business efficiency, it is proposed to use the term “business efficiency”, which can be defined as a combination of two components: commercial efficiency and economic efficiency. The first component characterizes the result of management in achieving the development goals of an economic entity, the second - the degree of satisfaction of the economic interests of business owners (persons interested in obtaining economic benefits from investing capital in a given business).

Commercial efficiency can be presented as the ratio of the expected and achieved effectiveness of management decisions in the current, financial and investment areas of activity, which are the objects of management. By effectiveness we mean a comprehensive characteristic of the success of an economic entity, the content of which is the ratio of various results and costs corresponding to these results.

This approach allows us to propose the following system of performance indicators for assessing commercial efficiency:

Productivity as the ratio of the volume of commercial output to its production cost, including administrative expenses;

Profitability (profitability) of current activities as the ratio of profit from sales and cost of sales;

Profitability as the ratio of inflow and outflow of funds for various types of activities and for the enterprise as a whole.

Productivity is the final indicator of the effectiveness of production activities, which is formed as a set of primary indicators (factors):

Level of fulfillment of planned targets for production of products (performance of work, provision of services);

Compliance with standards for the consumption of production resources;

Compliance with the requirements for proper quality of products (works, services).

Productivity should be calculated as the ratio of manufactured commercial products at contract prices to the total costs included in the cost of these products.

We offer a formula for calculating the overall performance coefficient Kpr:

Kpr = From/St (15) where C^t is the volume of commercial products at contract prices,

St - the cost of marketable products, excluding selling expenses.

As private productivity indicators, we propose to use indicators (coefficients) of material productivity, wage productivity and productivity of depreciable capital, in contrast to indicators

92 labor productivity and capital productivity, which are indicators of intensity.

Among the profitability indicators, the only indicator that can be used to assess the profitability of current activities is the profitability of core activities, which is the ratio of profit from sales to the total cost of sales; other profitability indicators are characteristics of the intensity of use of various resources and assessments of the financial condition of the enterprise.

Profitability as an indicator of the effectiveness of current activities is the main market indicator on which the financial well-being of an enterprise and the efficiency of entrepreneurship are built. We believe that the profitability coefficient Kpt can be used as a measure of the profitability of current activities.

To assess the effectiveness of current activities, along with the concept of profitability, the concept of profitability should be applied. Using the profitability coefficient of current activities KDT, you can control a given level of the ratio of income and expenses from current activities in the conditions of the chosen economic strategy. It should be defined as the ratio of cash inflows and outflows from current activities. Since in current activities the objects of management are productivity (productivity), profitability and profitability, it is necessary to evaluate their relationship with indicators of business activity in the production and economic spheres.

Productivity growth is a natural result of increased business activity in the manufacturing sector, since, other things being equal, it ensures a reduction in costs per unit of output produced. That is, an increase in hourly labor productivity has a positive impact on labor productivity (wages). An increase in capital productivity causes an increase in the productivity of depreciable capital.

To assess the influence of factors on material productivity, in our opinion, it is necessary to study the rationality of using materials in production, which is a combination of the influence of internal and external factors. Rationality is ensured through measures to save materials in production, as well as market conditions for the use of material resources. This refers to such environmental factors as the requirements of buyers and customers regarding the range, quantity and quality of materials for the production of products (performance of work, provision of services). We believe that the degree of influence on these factors by management is small. Consequently, efforts to increase material productivity can be aimed primarily at implementing measures to save certain types of resources in the production process.

The profitability and profitability of a business, in turn, determine such characteristics of success as profitability and financial well-being of the organization. Since profit indicators are primarily the basis for calculating various profitability indicators, it is necessary to use profitability indicators as indicators for analyzing and monitoring commercial performance.

Productivity management, in our opinion, should be organized in such a way as to carry out strategic and operational planning and constantly monitor the implementation of activities that increase productivity, as well as measure and evaluate the impact of these activities. That is, in our opinion, it is necessary to carry out: monitoring the fulfillment of contractual obligations to buyers (customers) in relation to the range and quality of materials that are the subject of labor, as well as monitoring compliance with standards for the consumption of materials in production;

Control of the use of the existing fleet of technological equipment in terms of quantity, capacity, shift, productivity;

Monitoring the implementation of the innovation and investment plan;

Development of systems for advanced training and material incentives for employees.

Calculations of profitability and profitability ratios that characterize the performance of economic activities do not have industry specificity, since they are based on indicators, the formation of which is determined by the norms of civil legislation. These coefficients should be calculated using a single algorithm. In this case, problems may arise in the correct application of the norms of various business contracts that determine the moment of transfer of ownership of products and the formation of sales revenue, and, consequently, profit from sales involved in the calculation of the profitability ratio. The variety of types of sales affects the revenue generated on the basis of sales, agency and commission agreements, extending the process of transfer of ownership from the supplier to the buyer over time.

Thus, cash flows and profits of industrial enterprises in different sectors of the economy are formed according to different rules, which affects the values of profitability and profitability indicators. Management influences on the effectiveness and efficiency of the activities of these entities in such conditions, in our opinion, should contain measures to ensure the uniformity and completeness of the receipt of funds from the sale of products.

The criteria for efficiency in terms of profitability here can be the planned indicators of profitability of the main activities, which can be

95 to calculate for each order before its preparation and launch into production at the enterprise. The efficiency criterion for profitability can be a calculated coefficient characterizing the excess of the amount of cash inflow over the amount of outflow for current activities and for the organization as a whole, the value of which depends on the adopted business development strategy (level of aggressiveness).

The conducted research allowed us to propose a system of coefficients characterizing the efficiency of the enterprise (Table 6).

Please note that the scientific texts presented above are posted for informational purposes only and were obtained through original dissertation text recognition (OCR). Therefore, they may contain errors associated with imperfect recognition algorithms. There are no such errors in the PDF files of dissertations and abstracts that we deliver.

Increasing the efficiency of the organization using functional. How to improve the efficiency of an enterprise? the amount of accrued depreciation. This element includes the amount of depreciation charges for complete restoration

1.2 Enterprise performance indicators

What is meant by operational efficiency?

Effectiveness conditions

Tools for increasing efficiency

Factors influencing efficiency

Where should you start?

What might be preventing you from improving your efficiency?

The concept of production efficiency. Economic characteristics of the enterprise. Analysis of economic efficiency indicators of fixed assets, working capital, material resources of the organization. Improving marketing and sales activities.

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