To control the operation of the enterprise, a special scorecard is used. With their help, it turns out to explore different aspects of the organization, to identify the weaknesses of the processes. Having developed a number of measures, the company can eliminate the negative trends that have emerged in the manufacturing sector. This allows you to produce competitive, cost-effective products. What performance indicators are used in the analysis? Examples of their calculation will be presented below.
General concept of indicators
Indicators are the results of a qualitative and quantitative assessment of the state of the object of study, expressed in numerical form. There are different groups of indicators that allow you to evaluate the effectiveness of the organization from different points of view.
Considering the concept of production indicators, it should be noted that they are studied in the process of the company, which is associated with the production of goods, the provision of services. The analysis takes into account qualitative and quantitative indicators. The latter are expressed in numerical terms. Some types of indicators are regulated at the legislative level. Others are introduced during the course of the company. Production indicators are grouped as follows:
- norms;
- indicators of time spent;
- labor resources;
- production of finished goods;
- financial performance.
Applying such groups during the analysis, it is possible to comprehensively evaluate production efficiency, as well as find reserves for improving this process at the enterprise.
The main production indicators are divided into the following groups:
- Large-scale. Demonstrate the level that the company has achieved in the course of its production activities. To do this, explore working capital, fixed assets, registered capital and so on.
- Absolute. This is the total value, which is determined per unit of time, for example, profit, turnover, costs and so on.
- Relative. This is the ratio (comparison) of two indicators of the first two groups.
- Structural. Reflect the share of an individual element in the total. The indicators of the production structure are often considered in dynamics, which increases the information content of the methodology.
- Incremental. Reflect the change in indicators for a certain period in relation to the initial value.
Norms
In the study of production indicators, standards are often used to determine the required amount of resources and profits. Rationing allows periodic monitoring of the implementation of production programs. To do this, develop a system of maximum permissible values. These criteria must meet the basic performance indicators. This indicates the effectiveness of the organization.
Norms of production indicators are divided into groups by types of resources. This allows you to comprehensively evaluate the manufacturing process. The following production resources are subject to standardization:
- time;
- labor resources;
- consumption of materials;
- energy resources;
- instruments;
- spare parts.
If the listed indicators go beyond the established standards, this indicates non-compliance with production technology. Such facts lead to the manufacture of less quality products, increase their cost, reduce turnover and output. Therefore, during the production cycle, the presented indicators are constantly monitored in order to prevent exceeding the limits of standards, and to maintain the manufacturing process at the right level.
In the process of evaluating production indicators, the main standardized characteristics are considered. The main ones include:
- unit production time;
- the number of manufactured products per unit time;
- the number of workers per unit of production serviced equipment;
- output by one employee per unit of time;
- the consumption of materials, semi-finished products, raw materials, energy resources that need to be spent on the production of a unit of production.
To perform the calculation, the presented indicators are expressed in numbers. This allows you to compare them with the planned value. For example, the rate of release of the quantity of finished products per unit time is 150 thousand parts per month for the workshop. In fact, 155 thousand parts were manufactured. The workshop exceeded the norm by 5 thousand parts, which is a positive trend, indicating the proper organization of the production process.
The disadvantage of this technique is the fact that not all indicators can be normalized. At the same time, it takes time to improve the methodology and adjust it to existing production conditions. The creation of standardization criteria should be based on extensive experience, as well as in-depth research.
Time spent and number of workers
When assessing the performance of industrial products, the time taken for which it was manufactured is taken into account. This allows you to evaluate the work of the organization’s staff. This implies the norms of labor productivity, determines the amount of labor spent on manufacturing products.
The time indicator is considered from different points of view and can be:
- calendar
- actual;
- spontaneous.
The most common, abstract is the calendar time indicator. It is divided into a nominal value and a regulated period of rest. The latter includes all weekends and holidays in the period.
Actual runtime is less than nominal. This is due to the presence of a certain number of days during which employees are officially allowed not to go to work. This includes the period of vacation, sick leave, as well as the days allowed for managers to pass the company.
Apparent time is determined by deducting from the actual rate of absenteeism. To understand how the accounting of production indicators of time is carried out, you need to consider an example. So, in October, the employee was on vacation for 7 days. After that, he did not go to work for 1 day.
In this case, the calendar time is calculated as follows: 31 days - 9 days off = 22 days.
The actual time is calculated as follows: 22 days - 7 days = 15 days.
Opening hours: 15 days - 1 day = 14 days.
The number of workers is determined by the indicators of the alignment and payroll staff. In the first case, the number of personnel is determined by the jobs in the enterprise. This allows you to determine service standards for units, machine tools and other equipment, as well as labor productivity.
The payroll staff consists of the alignment staff and the reserve of employees for vacation time, sick leave, and other regulated holidays.
Finished Product Manufacturing
Indicators of industrial products are considered from different perspectives during the study. This is necessary to determine the hidden reserves for the development of various areas. Industrial products can be primary, secondary and related.
The first category includes the result of the company, which does not include waste, defective products. It makes up most of the company's sales.
By-product is called a product that is produced along with the main one. It has a certain value, but is not the goal of the company. For example, in the metallurgical industry, special dust collectors are installed on pipes. Other enterprises can use these products as raw materials.
Sometimes in the production of products from one raw material, several types of products are obtained at the same time, which are called conjugated.
To analyze the main production indicators, the company keeps a record of the product range. With its help, you can explore the main specialization of the company, as well as the direction of its production activities. For each item of the item may be several different products. They differ in appearance, design and other characteristics.
To evaluate the features of production and the dynamics of indicators of all products at the enterprise, their range is analyzed. This is a more extended list than nomenclature. It includes products that differ in size, quality, and other characteristics. The study of the assortment and nomenclature allows us to study the structure of output.
Costs
Considering the types of production indicators, it is worth noting such an important category as expenses. They are tracked in dynamics, investigated structural changes and compared with the result.
Costs are the sum of the costs of the purchase of raw materials, materials, energy, tools. Also here include organizational and preparatory procedures, depreciation.
The company may also incur expenses for the repair and maintenance of equipment, administrative apparatus, and wages of employees. If the premises for production are leased, certain funds are allocated for it. It is also an organization’s expenses. The use of credit leads to costs for the payment of interest on the use of this capital. To assess the relationship of costs with the end result, the classification of cost elements is applied. For the analysis of production indicators expect:
- Production costs. This is the cost of all the efforts that were made in order to obtain finished products (goods or services). These are the costs that arise in the process of production activity, as well as the costs of sales, advertising, operations on monetary and intellectual investments. They are needed in order to produce not just products, but goods or services that the buyer needs, for which he is willing to pay.
- Collateral expenses. They are not aimed at creating certain values. But they are necessary in order to deliver finished products to the consumer, place an order. This includes staff development costs. In reality, the result of the company's activities largely depends on this item of expenses. Many organizations seek to minimize such cost items. But here it is important to determine which of them should be allocated financing, and which can be dispensed with.
- Costs of security, warning type. They are aimed at preventing the development of adverse events and situations. This cost item is required for all enterprises. This allows you to prevent the development of a malfunction in the field of sales, to predict and prevent the negative consequences of changes in consumer demand in case of improper actions of suppliers.
- Unproductive expenses. This is the cost of efforts that do not lead to results. These are such unfavorable factors as equipment downtime, idle vehicle mileage, etc. This type of expense requires careful study and minimization. To do this, apply new, advanced technologies, conduct thoughtful marketing policies, etc.
Cost price
Considering the characteristics of production indicators, it is worth noting such an important category as the cost of production. This is the sum of current costs, expressed in cash. They arose at the enterprise in the reporting period and are associated with sales and production. This includes past labor results transferred to products, for example, depreciation, the cost of raw materials and other material resources, as well as labor costs for workers of all categories, other current costs.
The calculation of the cost is made on the calculation items. For this, a simple formula is used: production cost = material costs + employee wages + depreciation + other expenses.
Other expenses include industry-wide and general production costs, as well as targeted financial investments. The costing formula may include different cost items. They arise exclusively during the production activities of the enterprise. Considering each article of the calculation in dynamics, you can determine the structural changes of this indicator, draw conclusions about the main activities of the organization.
Considering examples of production indicators, it is worth noting that to determine net profit, which is an important characteristic of the efficiency of an enterprise, a special calculation is used:
- Sales revenue - cost = gross profit.
- Gross profit - (selling expenses + taxes + dividends) = net profit.
The result obtained is used in the course of calculating the profitability of the enterprise, which allows us to evaluate the effectiveness and appropriateness of the use of enterprise resources.
Calculation Example
To understand the principle of determining cost, you need to consider the calculation of production indicators by example. So, the company in the reporting period incurred the following costs:
- raw materials - 50 million rubles;
- semi-finished products - 3 million rubles;
- residual materials - 0.9 million rubles;
- salary - 45 million rubles;
- energy costs - 6 million rubles;
- employee bonuses - 8 million rubles;
- contributions to the Pension Fund - 13.78 million rubles;
- expenses of the general production group - 13.55 million rubles;
- the cost of the work of tool shops is 3.3 million rubles;
- total household expenses - 17.6 million rubles;
- marriage - 0.94 million rubles;
- shortage within the normal range - 0.92 million rubles;
- shortage above the norm - 2.15 million rubles;
- work in progress - 24.6 million rubles;
At the first stage, material costs are determined: 50 - 0.9 = 49.1 million rubles.
Further added are the costs of semi-finished products, energy: 49.1 + 6 + 3 = 58.1 million rubles.
The next step will be the calculation of labor costs: 8 + 45 + 58.1 + 13.78 = 124.88 million rubles.
General production and general business expenses are added to the obtained value: 13.55 + 3.3 + 124.88 + 17.6 = 159.33 million rubles.
From the indicator of the shortage, which turned out to be above the norm, you need to subtract the result of the shortage normalized: 159.33 + 2.15 - 0.92 = 160.56 million rubles.
In the reporting period, you need to subtract the amount of costs for construction in progress, since it will be taken into account in the following period: 160.56 - 24.6 = 135.96 million rubles.
The result obtained is the sum of production costs.
Profitability
Among the indicators of production activity, one of the most important is profitability.
It reflects how efficiently the company used its resources to make a profit. Most often, during the analysis, the following indicators are used:
- Profitability of production allows us to assess the feasibility of using the organization’s assets in the reporting period. For calculations, the profit indicator is divided into production assets.
- Product profitability - allows you to characterize the degree of efficiency of the use of resources in the process of production. For this, revenue from sales is divided into the cost of production.
Efficiency of using separate cost items
To assess the impact on the overall result of private production indicators, their effectiveness is determined in the context of certain cost items. So, it is possible to determine whether material and labor resources, production assets, etc., were used correctly in the reporting period.
For this, private production indicators are used. So, to determine the efficiency of use of fixed assets, the coefficients of capital intensity, return on assets are calculated. To determine the results of the use of materials and raw materials, indicators of material consumption and material output are used. Similar indicators are calculated in the field of labor resources:
- Return of labor costs = volume of finished products / labor costs.
- Labor input = labor costs / volume of production.
