To evaluate production efficiency, several indicators are taken into account.
Performance
Productivity is considered the most important factor in evaluation. It helps to find out how much production was produced in a year, month, shift or even hour. If we take into account one employee, then this indicator is called output.
Productivity can be used to assess how effectively human resources are spent. Often, tracking it can help change the work strategy and improve the indicators. For example, it may be due to poor employee awareness or incorrect scheduling, or employees are simply burned out and lack motivation. Productivity is calculated using the formula:
P = Q / N,
Here:
Q – quantity of manufactured products per unit of time.
N is the number of people dentist data package involved in the production of this product per unit of time.
Labor productivity is often calculated as the ratio of value added to total working time.
Profitability
This point shows how well the money was distributed and whether it is worth continuing.
Profitability can be calculated using the formula:
P = Net Profit / Cost of Production
Material efficiency
Here, it is calculated how many goods were produced from one ruble spent. Thanks to this item, it is possible to understand how rationally materials are used. Here, it is even possible to track whether there are losses that can be reduced, for example, whether there is a surplus when throwing out waste or whether there may be theft in production.
Calculation formula:
MO = VP / MZ,
Here:
МЗ – price of all materials (rubles).
VP – gross volume of output or cost of goods produced (rubles).
Return on assets
By calculating the return on assets, an understanding of how well and correctly fixed assets are spent at the enterprise emerges. This concerns tools, transport, production facilities, and machines. And after the calculation, a strategy is built: is it worth adding volumes, is it possible to rent them out, is there a need for sales.
You can calculate it like this:
Return on assets = Revenue from sales of products / Fixed assets
There are a number of other important indicators:
payback period;
how productively energy is spent;
environmental efficiency of production operations, to what extent it meets the requirements;
what is the labor intensity and labor intensity per unit of goods;
the amount of energy that will ensure a full production cycle;
social efficiency, which indicates how well the company meets the needs of its employees and customers.
The analysis of the enterprise's work must always be done in a comprehensive manner. In the case of assessing one of the indicators, the data may be inaccurate, and for a complete picture it is worth paying attention to all factors.
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Alexander Kuleshov
Alexander Kuleshov
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