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Introduction
1. Theoretical justification of economic efficiency of production
1.1 Concept of economic efficiency
1.2 Economic efficiency indicators
1.3 Ways to increase the economic efficiency of production
2. Current state of activities of Chkalovsky LLC
2.1 Organizational and economic characteristics of the enterprise
2.2 Analysis of production and commercial activities of Chkalovsky LLC
2.3 Analysis of the economic efficiency of enterprise production
3. Increasing the economic efficiency of production
3.1 Ways to increase economic efficiency in the modern period
3.2 Ways to increase the economic efficiency of production at Chkalovsky LLC
Conclusions and offers
Bibliography

Introduction

Dairy farming is one of the most important branches of livestock farming. It serves as a source of such valuable food products as milk, meat, as well as a source of raw materials for industry. Milk is an almost irreplaceable basis of nutrition in childhood, both for humans and animals. It contains all the necessary nutrients. In terms of its diverse composition, none of the food products known to man can compete with it. Milk contains almost all currently known vitamins.
As a result of milk processing, sour cream, kefir, butter, cheese, cottage cheese and other food products are obtained from it.
Both milk and dairy products play an important role in human nutrition.
The features that characterize dairy cattle breeding are: the ubiquity of the production of milk and dairy products for an uninterrupted supply of them to the population, the need for an organic combination of dairy cattle breeding with other branches of agriculture, significant labor intensity and a large share of the products of this industry in the entire volume of agricultural production in most regions of the country . Dairy farming has a great impact on the economy of all agriculture, so milk production is of great economic importance.
However, the current situation in the country's livestock industry is of great concern and concern and requires serious analysis and determination of strategies and tactics in the development of individual industries.
The main reasons for the reduction in production are the continuing decline in the number of livestock and animal productivity.
Increasing milk production and increasing its efficiency is an important task for livestock workers. Its solution is related to the improvement of production activities. Under these conditions, the importance of analyzing and assessing the performance of agricultural enterprises and their divisions increases. When analyzing, one should take into account both quantitative indicators of milk production (production volume, productivity) and qualitative indicators (fat content).
The purpose of my course work is to, based on a scientific analysis of the current state of milk production, justify development directions and develop recommendations for increasing the efficiency of its production in market conditions.
In this regard, the objective of the course work is to analyze the economic efficiency of milk production at Chkalovsky LLC.

1. Theoretical substantiation of the economic efficiency of milk production.

1.1 The concept of economic efficiency.

The agricultural production process is based on the interrelationship of three main elements: fixed capital, working capital and labor. The use of means of production by workers in the material sphere ensures the production of agricultural products. Comparison of the final result of an enterprise's economic activity (effect) with the costs of living and embodied labor to achieve it reflects production efficiency.
Efficiency as the final result of economic activity is characterized by various cost and natural indicators. For example, the volume of production, profit, savings on individual cost elements, overall savings from reducing product costs.
All costs associated with achieving the effect are divided into current and one-time ones. Current include payment of living labor, the cost of consumed material resources, depreciation, costs of maintaining fixed capital in working order (repair costs) and other expenses included in the full cost of agricultural products. Non-recurring costs are current and non-recurring costs. Current include payment of living labor, the cost of consumed material resources, depreciation, costs of maintaining fixed capital in working order (repair costs) and other expenses included in the full cost of agricultural products. One-time costs are the costs advanced for the expanded reproduction of fixed capital.

1.2 Economic efficiency indicators.

Economic efficiency is measured by two types of indicators: some characterize the results of production per capita, others - the ratio of results and costs.
The most important indicators of the first type are: gross national product per capita and national income per capita.
Efficiency indicators that compare production results with its costs are:
1. Social labor productivity is the ratio of national income to the number of workers in material production or to the working time spent in material production. This indicator expresses the amount of national income that is created on average by one worker in material production; or on average per unit of working time in material production. In addition to social labor productivity, labor productivity indicators are calculated in the main sectors of the economy: industry, agriculture, construction, and transport.
2. Material intensity of national income - the ratio of material costs to national income. Sometimes more specific indicators are calculated: metal intensity, energy intensity and others. Material intensity can also be calculated based on the gross national product (instead of national income). It characterizes the level of costs of labor items per unit of final product.
3. Capital productivity - the ratio of national income (or GNP) to the value of production assets. It shows the output of final products per unit of production assets. Sometimes, instead of capital productivity, the capital intensity indicator, which is the reciprocal of capital productivity, can be used.
The general criterion for the economic efficiency of social production is the level of productivity of social labor.
The productivity of social labor P total is measured by the ratio of the produced national income NDk to the average number of workers employed in sectors of material production,
P total = ND/Chm
As is known, national income represents the value newly created in the branches of material production. In other words, it is that part of the gross social product that remains after deducting the raw materials, fuel, energy and other means of production consumed in the production process. National income is calculated as the sum of the net output of all branches of material production. In turn, the net output of a particular industry is defined as the difference between gross output and material production costs.
In certain branches of material production, productivity is calculated by gross output. When comparing growth rates of social labor productivity, it is necessary to maintain comparability of indicators. In this case, national income should be calculated in comparable prices.
The most important indicators of the economic efficiency of social production are labor intensity, material intensity, capital intensity and capital intensity.
As already noted, the level of productivity of social labor serves as a general criterion for the economic efficiency of labor spent at the previous stages of social production and embodied in raw materials, materials, fuel, energy, and tools.
The labor intensity of products is the inverse value of the productivity of living labor, defined as the ratio of the amount of labor expended in the sphere of material production to the total volume of products produced:
t=T/Q
where t is the labor intensity of the product;
T - the amount of labor expended in the sphere of material production;

The material intensity of a social product is calculated as the ratio of the costs of raw materials, materials, fuel, energy and other items of labor to the gross social product. The material intensity of the products of an industry (association, enterprise) is defined as the ratio of material costs to the total volume of products produced:
t = M/Q
where t is the level of material intensity of products;
M is the total volume of material costs for production in value terms;
Q is the total volume of output produced (usually gross output).
Reducing the material intensity of products is effective for the national economy of the country.
In addition, in the cost of production of the largest sector of the national economy - industry, almost 3/5 of the costs are for raw materials, basic and auxiliary materials, fuel and energy.
To a certain extent, the indicators of capital intensity and capital intensity of production are close to each other. The indicator of capital intensity of production shows the ratio of the amount of capital investments to the increase in the volume of output determined by them:
Kq = K/DQ,
where Kq is the capital intensity of products;
K is the total volume of capital investments;
DQ - increase in output volume. Capital intensity can also be calculated in relation to the increase in produced national income.
The capital intensity of production is calculated as the ratio of the average cost of fixed production assets of the national economy to the total volume of production:
¦ = F/Q
where ¦ - capital intensity of production;
F is the average cost of fixed production assets of the national economy;
Q is the total volume of output produced (usually gross output).
Capital intensity, like capital intensity, can also be calculated in relation to the national income produced.
In the national economy, in its individual sectors, in particular in industry, the capital productivity indicator, the inverse of the capital intensity indicator, is widely used. Capital productivity is calculated as the ratio of the volume of production 0 to the average cost of fixed production assets R.
According to data for a number of recent years, the capital productivity indicator in the national economy as a whole and in industry has a negative downward trend, and the capital intensity indicator has an upward trend.

1.3 Ways to increase the economic efficiency of production.

The transition to market relations requires profound changes in the economy - a decisive sphere of human activity. It is necessary to make a sharp turn towards the intensification of production, to reorient every enterprise, organization, and firm towards the full and primary use of quality factors of economic growth. A transition to an economy of higher organization and efficiency with comprehensively developed productive forces and production relations, and a well-functioning economic mechanism must be ensured. To a large extent, the necessary conditions for this are created by a market economy.
The most important factor in increasing the efficiency of social production and ensuring its high efficiency has been and remains scientific and technological progress. Until recently, scientific and technological progress proceeded essentially in an evolutionary manner. Preference was given to improving existing technologies and partial modernization of machinery and equipment. Such measures produced a certain but insignificant return.
There were insufficient incentives for the development and implementation of measures for new technology. In modern conditions of the formation of market relations, revolutionary, qualitative changes are needed, a transition to fundamentally new technologies, to technology of subsequent generations - a radical re-equipment of all sectors of the national economy based on the latest achievements of science and technology.
The most important areas of scientific and technological progress: widespread development of advanced technologies, membrane, laser, plasma, technologies using ultra-high pressures and pulsed loads, etc.;
- production automation - the rapid development of robotics, rotary and rotary-conveyor lines, flexible automated production, which ensures high labor productivity;
- creation and use of new types of metal products, plastics, composites, metal powders, ceramics and other advanced structural materials.
In the context of the transition to a market economy, its initial stage, scientific and technical activities are very important. Enterprise teams and their managers pay the main attention to material incentives for labor. Most of the after-tax profits go to the consumption fund. This situation is not normal. Obviously, as market relations develop, enterprises will begin to pay due attention to the development of production for the future, and will direct the necessary funds to new equipment, renovation of production, and to the development and production of new products.
In addition, it is necessary to create organizational prerequisites, economic and social motivations for the creative work of scientists, designers, engineers, and workers. Radical transformations in engineering and technology, the mobilization of all, not only technical, but also organizational, economic and social factors, will create the prerequisites for a significant increase in labor productivity. It is necessary to ensure the introduction of the latest equipment and technology, to widely apply progressive forms of scientific organization of labor in production, to improve its standardization, to achieve an increase in production culture, strengthening order and discipline, and the stability of work collectives.
One of the important factors in intensifying and increasing production efficiency is the economy mode. Resource conservation must become a decisive source of meeting the growing needs for fuel, energy, raw materials and materials. Industry plays an important role in resolving all these issues. It is necessary to create and equip the national economy with machines and equipment that ensure high efficiency in the use of structural and other materials, raw materials and fuel and energy resources, the creation and use of highly efficient low-waste and waste-free technological processes.
Increasing the efficiency of social production largely depends on the better use of fixed assets.
It is necessary to more intensively use the created production potential, achieve rhythmicity of production, maximum equipment load, significantly increase the shift of its work and, on this basis, increase the production output from each piece of equipment, from each square meter of production area.
One of the factors for intensifying production and increasing its efficiency is improving the structure of the economy. It is necessary to develop at a faster pace the industries that ensure scientific and technological progress and the successful solution of social problems, to achieve an improvement in the proportions between the production of means of production and consumer goods, and sectors of the agro-industrial complex.
Investment policy is designed to ensure increased efficiency of capital investments. It is necessary to redistribute funds in favor of industries that meet social needs and accelerate scientific and technological progress. An increasingly large share of funds should be allocated to technical re-equipment and reconstruction of existing enterprises as opposed to new construction.
Mechanical engineering, the basis of scientific and technological progress in all sectors of the national economy, should receive accelerated development. In this case, priorities are given to the machine tool industry, electrical engineering industry, microelectronics, computer technology, instrument making, and the computer science industry - catalysts for accelerating scientific and technical progress.
Improving the structure of the fuel and energy balance will occur in the direction of developing nuclear energy while maximizing its safety, widespread use of renewable energy sources, and consistent active and targeted work in all sectors of the national economy to save fuel and energy resources.
Among the measures for the structural restructuring of social production are ensuring accelerated growth in the production of consumer goods and the entire service sector, the development of small businesses, the conversion of military production at defense enterprises; technical re-equipment and improvement of the efficiency of transport, electrical, oil and gas supply systems, communications and information support for all sectors of production infrastructure.
Organizational and economic factors, including management, play an important role in increasing production efficiency. Their role especially increases with the growth of the scale of social production and the complication of economic relations. First of all, this is the development and improvement of rational forms of production organization - concentration, specialization, cooperation and combination.
The production social infrastructure, which has a significant impact on the level of production efficiency, requires further development and improvement. In management, this is the improvement of the very forms and methods of planning management, economic stimulation of the entire economic mechanism. In planning - balance and reality of plans, an optimally constructed system of planned indicators, which does not constrain the primary links of the national economy (enterprises, associations, organizations), but gives them wide scope for activity. This same group of factors includes the widespread use of various levers of economic accounting and material incentives, financial responsibility and other self-supporting economic incentives.
Science has a major role to play in solving problems of efficient management, creation and implementation of resource-saving equipment and technology. It will have to intensify fundamental and applied research on current problems of accelerating scientific and technological progress in order to reduce labor intensity, material intensity and energy intensity of production, strengthen the economy regime and improve product quality.
A special place in intensifying the economy and reducing specific resource consumption belongs to improving product quality. The results of the work carried out in the national economy to improve the technical level, quality of products and work performed do not meet modern requirements. This task should become nationwide, the subject of constant attention and control, the main factor in assessing the activities of each work collective.
The possibilities of action of all factors for increasing production efficiency in the conditions of the formation of market relations are significantly expanded. A structural restructuring of the national economy is being carried out, reorienting it towards the consumer; modernization of the most important sectors of the national economy - industry, construction, transport and communications based on high technologies; overcoming the gap from the world scientific and technological level; thoughtful conversion of military production; transition to a mixed economy, in which various forms of ownership are created on equal rights - public and private, joint-stock and cooperative; free development of all collective and private forms of management; financial recovery of the economy; organic inclusion of the country in world economic relations.
As a result of all this, a regulated, civilized market economy will be formed, which will be an effective means of stimulating the growth of labor productivity, increasing the efficiency of all social production, and increasing public wealth in the interests of improving the well-being of the people.

2. The current state of activity of Chkalovsky LLC.

2.1 Organizational and economic characteristics of the enterprise.

Chkalovsky LLC is one of the leading agricultural enterprises.
Chkalovsky LLC is located in the Orenburg region, Chkalov village. The land use of the enterprise is located in the central part of the region.
Industry (type of activity): production and sale of agricultural products (etc. according to the Charter). Chkalovsky LLC is a legal entity, has a seal with its name, a stamp, letterheads, and bank accounts in accordance with current legislation.

T Table 2.1 – Composition and structure of commercial products
Product type 2010
thousand roubles. 2011
thousand roubles. 2012
thousand rubles 2012 to 2010
%
Cereals and legumes 6586 9099 7817 118.7
Wheat 5292 7848 7205 136.1
Oats 1294 401 433 34.5
Peas - 521 15 -
Other crop products 219 1690 725 131.1
Total for crop production 6805 10799 8542 146.0
Milk 9758 10395 14248 125.5
Cattle meat 2367 2235 1915 80.9
Other livestock products 775 801 716 92.4
Total livestock 12900 13437 16879 130.8
Other products and services 740 1883 1999 270.1

Analyzing this table, we can say that the farm specializes in the production of milk and grain. Commercial crop production increased by 25.5% from 2010 to 2012, which led to an increase in revenue and profit. Commercial livestock production also increased by 30.8%, but the main role in this was played by an increase in milk production by 46%. The growth of commercial output in both sectors led to an increase in the total commercial output of the economy as a whole. The main industries are dairy farming and grain production, since they occupy dominant positions in the structure of marketable products, 52% and 28.5%, respectively.

Figure 2.1 - Organizational structure of Chkalovsky LLC

2.2. Analysis of the production and commercial activities of Chkalovsky LLC.

Analysis of gross milk yield.
Milk productivity is the main indicator of the productivity of dairy cows, i.e. cows intended for milk production, auxiliary indicators of productivity of beef cows used for suckling calves. Naturally, when calculating milk productivity indicators, mixing these two indicators is inappropriate. Therefore, in the practice of agricultural statistics, when determining the average milk productivity from the total number of cows on farms, cows of specialized beef herds with suckling calves are excluded, as well as cows actually used for group suckling calves, and cows culled for fattening and slaughter. Of course, in this case, from the total milk yield one should exclude the part that was received during the milking of the indicated groups of cows.
Indicators of the level of milk productivity include:
1) average annual milk yield per forage cow;
2) average annual milk yield per dairy cow;
3) average milk yield per dairy cow during the lactation period.
It is known that the volume of livestock production depends on the number and productivity of animals, the provision of livestock with feed and housing, feeding rations, the breed of animals, and the conditions of their keeping. The number and productivity of animals have a direct impact on the volume of production and are functionally dependent on it. All other factors have an indirect effect.

Table 2.3 – Analysis of gross milk yield
Indicators 2010 2011 2012 2012 to 2010
Average annual number of cows, head 687 609 620 90.2
Gross milk yield, c 29720 25110 25608 86.2
Milk yield per cow, c 43.3 41.2 41.3 95.4

Analyzing this table, we see that the number of productive livestock has decreased sharply and amounted to 90.2% of the base year; due to the decrease in livestock, the gross milk yield has decreased and currently it is 86.2% of the base year.
Analysis of the cost of milk.
Cost is the most important indicator of the economic efficiency of agricultural production. It synthesizes all aspects of economic activity and accumulates the results of using all production resources. Its reduction is one of the primary tasks of any society, every industry, and enterprise. The level of production costs determines the amount of profit and the level of profitability, the financial condition of the enterprise and its solvency, the amount of contributions to savings and social funds, the rate of expanded reproduction, the level of purchase and retail prices for agricultural products. The problem of cost reduction is acquiring particular relevance at the present stage. Finding reserves to reduce it helps many farms avoid bankruptcy and survive in a market economy.
The main sources of information for analyzing the cost of agricultural products are: costs of main production, production and cost of crop products, production and cost of livestock products, feed consumption, production reports of teams and farms, personal accounts of tenants, a log of income and expenses of the farmer, as well as primary documents on accounting for production costs, planned and regulatory data.
The problem of cost reduction is acquiring particular relevance at the present stage.

Table 2.4 – Dynamics of the cost of livestock products

Types of products 2010 2011 2012 2012 to 2010, %
Milk: 120.7
Products received, c 24720 25170 25608
Cost of 1c, rub 351,343.94 409.48
Total cost, thousand rubles 8690 8657 10482
Cattle: 163.4
Products received 1328 3138 4228
Cost price 1c, rub 1332 3857 5138
Total cost, thousand rubles 1662 4156 6908

According to this table, you can see that over the course of 3 years there was a constant increase in cost and this led to the fact that the cost of milk increased by 20.7% compared to the base. The main factor influencing the cost is the increase in the price of energy, fuel and feed.
Financial results of production.
Profit represents part of the net income created in the production process and realized in the sphere of circulation, which is directly received by the enterprise. After the sale of products, net income takes the form of profit. Calculated profit can be defined as the difference between revenue and the total cost of products sold. Consequently, the financial results of an enterprise should be studied in close connection with the use and sale of products. The expansion of the crop and livestock industries, as well as the growth of marketability of production and the financial condition of the enterprise, depend on the rational use of products of own production.

Table 2.5 – Analysis of financial results of milk production
Indicator 2010 2011 2012 2012 to 2010, %
Revenue, thousand rubles 9758 10395 14248 146.0
Total cost, thousand rubles 8455 8537 10185 120.5
Net revenue, thousand rubles 1303 1858 4063 311.8
Profitability level, % 15.4 21.8 39.9 259.1

From the data in this table it follows that net revenue in the reporting year is in a huge “plus” and compared to the base it amounted to 211.8%. This suggests that it is profitable for the company to produce milk. Net profit covers all production costs and the company has free cash left. The profitability level in the reporting year was 39.9%, which is 159.1% more than the base level. The company receives approximately 40% of its total profit from milk.

2.3 Analysis of the economic efficiency of enterprise production.

One of the most important factors in increasing the volume of production is the provision of the enterprise with fixed assets in the required quantity and range, as well as their effective use.
Indicators characterizing the level of provision of an enterprise with fixed production assets include capital-labor ratio and capital-supply ratio.
Capital-labor ratio is the ratio of the cost of fixed production assets to the average number of workers.
Capital security is the cost of fixed assets per 100 hectares of agricultural land.
To summarize the efficiency of using fixed production assets, the following indicators are used:
Capital productivity is the ratio of the cost of manufactured products to the cost of fixed production assets.
Capital intensity is the ratio of the cost of fixed production assets to the cost of manufactured products for the reporting period.

Table 2.6 – Analysis of security and efficiency of use of fixed production assets

Cost of OPF, thousand rubles 31276 35606 39749 127.1
Area of ​​agricultural land, ha 8247 8247 13159 159.6
Cost of gross output, thousand rubles 34504 36153 41946 121.6
Average annual number of workers, people 304 276 282 92.8
Capital-labor ratio, thousand rubles/person 102.88 129 140.95 137.0
Capital productivity, rub 1.1 1.02 1.06 96.4
Capital intensity, rub 0.91 0.98 0.95 104.4
Fund availability, thousand rubles 379.2 431.7 302.1 79.2

From this table it follows that at the end of 2012 the cost of fixed agricultural production assets amounted to 39,749 thousand rubles and increased by 27.1% compared to 2010. Accordingly, the capital-labor ratio increased – 140.95 thousand rubles/person.
Due to the fact that the growth rate of fixed production assets exceeds the growth rate of the value of gross output, capital productivity decreased slightly from 1.1 rubles. in 2010 to 1.06 rubles. in 2012. Along with this, the capital intensity increases to 0.95 rubles.
This situation suggests that although the enterprise is equipped with fixed assets, it uses them ineffectively.
Let's consider the dynamics of the main economic indicators of Chkalovsky LLC.

Table 2.7 - Main economic indicators of the enterprise.
Indicators 2010 2011 2012 2012 to 2010, %
Revenue from product sales, thousand rubles 21346 26109 27420 128.5
Cost of products sold, thousand rubles 20321 25001 26442 130.1
Profit from sales, thousand rubles 1025 1108 978 95.4
Profit (loss) before taxation,
thousand rubles 4732 10582 5522 116.7
Net profit (loss), thousand rubles 4829 10582 5522 114.4
Profitability level, % 23.76 42.32 20.88 - 2.88

Having analyzed the main economic indicators, we can conclude that the enterprise’s activities are profitable, since sales revenue exceeds production costs, while the profit from sales in 2012 amounted to 978 thousand rubles, which is 4.6% less than the base indicator.
The level of profitability of the farm as a whole was 20.88% in 2012, while in 2009 it was 23.76%. This indicates that, along with the growth in sales revenue, the cost of products sold also increases, and therefore the amount of net profit decreases and the level of profitability decreases.

3. Increasing the economic efficiency of production.

3.1 Ways to increase economic efficiency in the modern period.

When justifying and analyzing all indicators of economic efficiency, factors for increasing production efficiency in the main areas of development and improvement of production are taken into account. These areas cover complexes of technical, organizational and socio-economic measures, on the basis of which savings in living labor, costs and resources are achieved, and improvement in the quality and competitiveness of products. The most important factors for increasing production efficiency here are:
accelerating scientific and technological progress, increasing technical
level of production, manufactured and mastered products (improving their quality), innovation policy;
structural restructuring of the economy, its orientation towards production
consumer goods, conversion of defense enterprises and industries, improvement of the reproductive structure of capital investments (priority of reconstruction and technical re-equipment of existing enterprises), accelerated development of knowledge-intensive, high-tech industries;
improving the development of diversification, specialization and
cooperation, combination and territorial organization of production, improvement of the organization of production and labor in enterprises and associations;
denationalization and privatization of the economy, improvement
state regulation, economic accounting and work motivation systems;
strengthening of socio-psychological factors, activation
human factor based on democratization and decentralization of management, increasing the responsibility and creative initiative of workers, comprehensive personal development, strengthening the social orientation in the development of production (increasing the general educational and professional level of workers, improving working conditions and safety precautions, improving production culture, improving the environment).
Among all the factors for increasing efficiency and increasing intensification
production, a decisive place belongs to the denationalization and privatization of the economy, scientific and technological progress and the intensification of human activity, strengthening the personal factor (communication, cooperation, coordination, commitment), increasing the role of people in the production process. All other factors are interdependent on these decisive factors.

3.2 Ways to increase the economic efficiency of production at Chkalovsky LLC.

The main ways to increase the economic efficiency of production can be the introduction of the latest milking and feeding technologies into production; this technology allows saving manual labor, and, accordingly, wages, feed and energy resources. When operating milking parlors of a new generation, only one operator is needed to serve the entire herd of cattle. It is also necessary to use milk coolers in parallel; they can reduce losses of raw milk, and also preserve the grade and fat content of this perishable product. When introducing diets with fortified supplements, the productivity of dairy cows increases and, as a result, the gross milk yield increases. It is necessary to reduce the use of milk for internal needs (feeding calves); this will perfectly replace milk replacer - a substitute for whole milk; its composition is similar to the natural product, only its cost is lower. It is possible to reduce fixed production costs (maintenance and repair of buildings and structures, machinery and equipment) by using free-stall herd keeping and maximum use of pastures.

Conclusions and offers.

Economic efficiency (Pareto efficiency) is a state of the economy in which it is impossible to change the distribution of resources so that an increase in the satisfaction of the needs of one subject does not lead to a decrease in the satisfaction of the needs of another.
The main factor in increasing economic efficiency is scientific and technical progress, improvement of equipment and production technology, implementation of large national economic scientific and technical programs with maximum interest of enterprises in using these results; in this regard, the transition to the market promises great changes for the better.
Economic efficiency largely depends on the organization of production and management.
The crisis state of our economy is accompanied by a decrease in its efficiency. With overcoming the crisis, stabilizing the economy, and then ensuring its recovery based on the unleashing of initiative and independence of commodity producers, competition between them, economic efficiency will begin to increase.
In the first chapter, I examined the theoretical foundations of the economic efficiency of milk production, methods for determining economic efficiency, and also considered possible ways to increase the economic efficiency of production. From this we can conclude that the industry needs to improve its efficiency. This is due to a number of factors: the genetic potential of animals is not fully used, in many farms the level of feeding and keeping of animals does not meet the standards, and others. Increasing the economic efficiency of milk production involves improving the state of the feed supply and feeding animals, creating modern livestock buildings and structures, increasing the interest of workers in production results, etc.
In the second chapter, we gave the economic characteristics of the Chkalovsky agricultural production complex, determined that the specialization of the farm was grain with developed milk production, examined the breed composition, structure of the herd, food supply, conditions for keeping livestock, organization of labor of dairy cattle workers. In general, this industry in the economy is profitable, but there are tendencies to fluctuate its level, the economy uses outdated tariff schedules, there is a decrease in the number of workers, the average annual milk yield also fluctuates from year to year, but in general tends to increase.
One of the ways is to increase the interest of workers in work, thereby increasing labor productivity.
By improving veterinary control and better animal care, it is planned to eliminate barrenness and reduce the incidence of mastitis in cows, which will lead to an increase in the average annual milk yield and an increase in the gross milk yield.

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For the convenience of studying the material, the article on economic efficiency is divided into topics:

In economic theory and practice, a distinction is made between economic and social efficiency of production.

The level of efficiency of social production is determined using a system of indicators.

In the most general form, the economic efficiency of social production is defined as the “results - costs” ratio according to the formula:

Production efficiency = Production result divided by production costs.

However, this indicator is very generalized, since it characterizes the efficiency of all total costs that fall on the output of a unit of output. Therefore, to determine the effective use of each factor of production separately, a system of specific indicators is used: labor productivity, labor intensity, capital productivity, capital intensity, material productivity, material intensity, energy intensity, environmental efficiency.

Thus, the level and dynamics of labor productivity are assessed using different indicators.

Labor productivity is the capacity of labor. At the micro level, it is defined as the ratio of the volume of products produced to the number of workers employed in its production, or to the number of man-hours worked over a certain period of time.

Labor productivity = Volume of production divided by the number of workers creating it

Labor productivity at the macro level is defined as the ratio of gross domestic product or net national income to the average number of workers employed in its creation.

Labor productivity = GDP divided by average number of workers

Labor intensity is an indicator inverse to labor productivity, which determines the cost of living labor expended on the production of a unit of output.

Labor intensity = Cost of expended living labor divided by the cost of manufactured products

Capital productivity is an indicator that characterizes the efficiency of using fixed capital (implements of labor). It is calculated as the ratio of the cost of manufactured products to the cost of fixed capital.

Return on capital = cost of manufactured goods divided by cost of fixed capital

Capital intensity is the inverse indicator of capital productivity, which fixes the cost of fixed capital expenditure per unit of output.

Capital intensity = cost of fixed capital divided by cost of manufactured goods

Material return characterizes the efficiency of using objects of labor, i.e. it shows how much product is produced from the spent material resources (raw materials, materials, fuel, etc.). It is calculated as the ratio of the cost of manufactured products to the cost of consumed material resources.

Material productivity = cost of production divided by cost of materials

Material intensity is the inverse indicator of material return, which characterizes the cost of material resources spent per unit of production.

Material intensity = cost of materials divided by cost of production

Energy intensity characterizes the cost of energy resources per unit of production.

Energy intensity = energy cost divided by product cost

Eco-efficiency. Modern economic science believes that, along with indicators of economic efficiency, it is necessary to determine the efficiency of an economic entity using the indicator of environmental and economic efficiency using the following formula:

E=Eo-(A+B+C)
Where Eо is the general economic effect of an economic entity;
A – cost of environmental protection measures;
B – losses from damage to the natural environment;
C – cost of natural resources.

This indicator characterizes the relationship between the amount of resources used in the production process and the resulting amount of output (result of activity). More output obtained from a given amount of input indicates increased efficiency. Less output for a given amount of input indicates decreased efficiency.

These calculations of performance indicators are necessary to make certain optimal decisions.

Firstly, they are needed to assess the level of use of different types of resources, their costs, organizational and technical activities carried out and the overall performance of the enterprise’s production activities over a certain period.

Secondly, with their help, the best options for business decisions regarding the use of new equipment, technology, production organization, improving quality and updating the product range, etc. are justified and determined.

In foreign scientific literature, the economic concept of “efficiency” is closely related to the alternative choice of resource use. In this approach, efficiency is viewed as the ratio of what an enterprise actually produces to what it could produce with existing resources, knowledge and capabilities. In this case, the alternative is the choice of different types of activities, and the basis for evaluating efficiency is a comparison of the profits received and lost. The latter personifies profitable activities that the enterprise had to abandon for various reasons. In this case, there may be two reasons for the ineffective activity of the enterprise. The first is unnecessary costs, including a large amount of waste, the second is an ineffective system for selecting waste, when resources are incorrectly distributed between different types of activities.

Indicators of social efficiency of production

The social efficiency of social (national, domestic) production shows how much its development meets the achievement of its main goal - to serve the consumer, to satisfy the personal needs of each person.

The criterion for the economic efficiency of an enterprise over all years of its existence is the growth of its value, which is determined as follows:

The purpose of determining the level and dynamics of the economic efficiency of an enterprise is to substantiate recommendations for its improvement.

There are two approaches to the study of economic efficiency: from private indicators - to generalizing ones and a criterion, or from a criterion and generalizing indicators - to private ones.

Requirements for choosing a system of economic efficiency indicators:

The number of parameters depends on the specific purpose of the analysis or planning;
- the economic meaning of each indicator must be clear for perception and unambiguous for interpretation;
- for each indicator, objective quantitative information must be provided based on accounting or statistical data;
- each indicator must have a digital range of fluctuation (from minimum to maximum value);
- to calculate private indicators, natural, labor, cost measures and their relative expressions (coefficients, percentages, indices) can be used;
- to calculate general indicators of economic efficiency, only cost measurements of costs and results and their relative expressions are used.

Social and economic efficiency

Indicators of the socio-economic efficiency of an innovation and investment project reflect the effectiveness of this project from the point of view of the interests of the entire society, with the fact that it bears all the costs associated with the implementation of the project. These indicators reflect the feasibility of spending resources on the implementation of a particular project.

However, it should be recognized that the main method for assessing the social effectiveness of a project remains the expert method.

Examination of the expected social consequences of scientific and technological innovations can be organized in various forms:

Individual and (or) collective examination with the involvement of qualified specialists from various fields of activity;
sociological surveys of workers and the population;
national referendums held on projects affecting the interests of various sectors of society or the region.

When determining indicators of socio-economic efficiency, the following can be considered as results from the implementation of the project:

The final results of production (from the sale of our products in the domestic and foreign markets);
revenue from the sale of intellectual property (know-how, computer programs, licenses for the right to use inventions, etc.) and property that was created by all project participants;
environmental and social results of the project, which are calculated based on the joint impact of the entire set of participants in this investment project on the social and environmental situation in a particular region, as well as the possible consequences of the project for public health;
directly financial results of the project (for example, taxes, profit).

When determining the social results of the project, the calculation of the effectiveness of the innovation and investment project reflects:

The economic efficiency of an event is measured in monetary terms, for example, a reduction in production costs and an increase in profits. In some cases, an increase may cause its price to rise slightly. If the release of an improved quality petroleum product is accompanied by an increase in the selling price, then economic efficiency is defined as an increase in the profitability of this product.

The economic efficiency of plan activities that require one-time (capital) costs is defined as the difference between the calculated savings and additional operating costs caused by the commissioning of new ones. Such expenses include depreciation, current repairs and maintenance of fixed assets, fuel and energy, payment of personnel (if their number has increased), etc. Profit is calculated accordingly.

The economic efficiency of the measures in the production efficiency improvement plan (without costs) is equal to the profit or the full amount of the estimated savings.

The economic efficiency of measures to introduce new technology is determined using the above-mentioned main indicators of comparative economic efficiency, as well as additional natural technical and economic indicators specific to this sub-industry of mechanical engineering.

The economic efficiency of measures to improve the reliability and durability of products is determined when carrying out measures in relation to raw materials, materials and other items of labor - in accordance with the instructions given on page.

The economic efficiency of measures to introduce new technology is determined using the above-mentioned main indicators of comparative economic efficiency.

Determining the economic efficiency of measures to improve management based on assessing their impact only on the state of the management apparatus and the results of the activities of management employees not only unreasonably narrows the very content of the work to improve management, but also significantly distorts the idea of ​​the actual effectiveness of this work.

Determining the economic efficiency of measures to improve management includes calculating the costs of developing and implementing measures to improve management and the effect expected as a result of the implementation of the planned measures.

Accounting for the economic efficiency of measures to improve product quality in practice is carried out on the basis of direct identification of additional costs to improve quality, but most often by calculating them taking into account its quality.

Calculation of the economic efficiency of measures to improve the organization and regulation of labor is mainly based on the same principles as determining the effectiveness of new technology. If these measures are implemented in conjunction with measures to improve equipment, technology and production organization, then the total savings from the implementation of the entire complex of measures are determined.

An analysis of the economic efficiency of fuel saving measures showed that the price of fuel is one of the decisive factors determining the effectiveness of any measures.

Determining the economic efficiency of measures to protect the atmosphere from pollution and checking the validity of these project estimates is carried out in accordance with the current Temporary Standard Methodology for determining the economic efficiency of implementing environmental protection measures and assessing the economic damage caused to the national economy by environmental pollution (Moscow, 1983) and industry methodologies .

Assessment of the economic efficiency of measures to intensify production at gas fields is carried out according to the formula if the increase in production requires costs other than in the base case. In this case, the reduced costs for additional gas production obtained from new wells at a given field are used as H, and in the absence of reserve points for drilling, the average reduced costs for production of 1000 m3 in the area where the gas field is located.

Calculations of the economic efficiency of NOT activities are carried out in order to:

1) justification of the most effective forms of labor organization;
2) determining labor productivity and the amount of annual economic effect from the implementation of activities on NOT;
3) establishing the amount of bonuses for the implementation of activities on NOT.

Determine the economic efficiency of measures to eliminate losses if, after their implementation, the workload of each worker increases from 390 to 410 minutes per shift, and the costs of these measures will amount to 3-5 thousand rubles. in year.

There are social, engineering, technical and economic efficiency of activities.

The economic efficiency of labor protection measures should be understood as reducing costs per unit of output and increasing production efficiency.

Then the economic efficiency of plant protection measures is determined.

The most complete economic efficiency of activities is characterized by comparing the cost of production before and after the implementation of the activity.

When assessing the economic efficiency of measures to increase gas efficiency, it is necessary to take into account the effect not only of improving the economic indicators of gas production, but also of using additional amounts of gas in the national economy - the most economical fuel. The additional gas produced is assessed based on the costs of the trailing fuel.

The main indicators of the economic efficiency of activities on NOT are poetic labor productivity and annual economic effect.

In calculations of the economic efficiency of measures for the introduction of new equipment in oil and gas production and drilling, the payback period for additional investments is given if the value of specific capital investments after the implementation of the measure is greater than before implementation.

When determining the economic efficiency of measures, cost calculation is carried out only for those elements that change according to the options.

When determining the economic efficiency of measures to improve management, all possible changes in the various elements and links of the management system, as well as in the relationships between them, which the implementation of a particular measure may lead to, should be identified and taken into account, regardless of the forms and place of manifestation of these results.

When calculating the economic efficiency of measures related to the need to select an electronic device from a number of analogue products that have different data on reliability and durability, indicators of comparative economic efficiency are used, and the calculation is carried out at a minimum of reduced costs. When replacing an electronic device in operation with another one that has different reliability and durability data from the first one, the calculation of economic efficiency is carried out based on indicators of overall economic efficiency.

When assessing the economic efficiency of measures in oil and gas production, the most difficult thing, due to the dynamism of the process and the variety of factors affecting it, is the selection of technical and economic indicators that make it possible to reliably and unambiguously determine the presence of an effect and its magnitude.

To identify the economic efficiency of plant protection measures, analysis of the structure of all costs by their elements is of great importance. This allows us to find ways to reduce the cost of certain types of work and recommend those that provide maximum economic efficiency at the lowest cost.

When determining the economic efficiency of measures, the indicators of the best available solutions to a given economic problem are taken as the basis for comparison, and when introducing new technology, the indicators of the best implemented (or developed in projects) domestic and foreign equipment. The indicators of the capital investment options under consideration are compared with standards and economic efficiency indicators achieved in previous periods.

After calculating the economic efficiency of measures, it is advisable to determine the expected improvement in the most important economic indicators of the enterprise as a result of their implementation. To calculate the economic efficiency of measures to improve the atmosphere, it is necessary to use a standard methodology for determining the economic efficiency of capital investments.

When determining the economic efficiency of measures to save material resources, it is necessary to provide material incentives for workers who ensure their rational use.

When analyzing the cost-effectiveness of activities, it is necessary to determine whether the basis for comparison is correctly selected. When assessing the effectiveness of creating new machines, instruments and equipment, the indicators of the best implemented (or developed in projects) domestic and foreign technology are taken as the basis for comparison. To determine the magnitude of the economic effect from the introduction of measures to increase the technical and organizational level of production at the enterprise, the indicators of replaced or similar equipment, the most common in the industry, are taken as the basis for comparison.

When determining the economic efficiency of project activities, the actual data of a specific ATP on the operation of buses on the route or the technical, operational and economic indicators of the original option proposed in the individual task are taken as the basis for comparison.

Economic efficiency of the project

According to American statistics, only one out of eight brings profit to the company, six bring losses, and one breaks even. Why do companies strive so hard to innovate? Yes, because the profit that a company can receive from a successful project will not only cover all losses incurred from failures, but will also bring significant income. How to evaluate a project and how to choose the most effective one from several projects, but at the same time successfully manage the entire portfolio of projects? Let's look at how to set the criteria and failures of a project using the example of our real innovation project.

For love or for convenience?

A certain company decided to implement an innovative project - to build an unprecedented metallurgical plant for the production of rare metal. Innovative in this case is the equipment that allows you to smelt rare and expensive metal so economically that its cost is reduced by 30%. How? When smelting using the traditional method, a third of the raw material literally flies down the pipe, that is, it evaporates. The new technology should ensure the complete absence of evaporation. But that's not all. The furnaces will be designed in such a way that it will be possible, if necessary, to smelt ingots of different volumes, whereas throughout the world this metal is sold in the form of standard ingots. In addition, the smelting technology itself will allow for significant energy savings. Attractive? Certainly. Moreover, the idea has already been embodied in research and development projects.

And yet it is even obvious: an attractive project must first be assessed from the point of view of its economic feasibility. After all, the costly part of the project is very large, it includes quite expensive developments, design, equipment manufacturing, construction and installation work, equipment installation, installation supervision, start-up melts, start-up tests, etc. And only after that, if the tests are completed successfully, metal sales and refunds will begin.

The investor’s task is to provide money for this project for a sufficiently long time. It is necessary to very clearly calculate in time the financing schedule for all work on the project, including the creation of the organizational structure of the enterprise, the training of engineering and technical personnel, workers, marketing and sales departments. It is also necessary to take care in advance about concluding futures contracts for the supply of metal so that sales begin on time, and, therefore, money begins to arrive faster.

It would seem that assessing the economic efficiency of a project is quite simple, because we are talking about fairly objective indicators - money. However, profit is obtained, as a rule, not immediately after the completion of the project, but as a result of using the project product. Therefore, assessing the attractiveness of a business project covers a period significantly longer than the life cycle of the project itself.

There is another very important point - the value of money changes over time. And not only because of inflation. Investing in the implementation of a project competes with other options: for example, with the opportunity to deposit money in a reliable bank. Let's say that your organization knows the possibility of a reliable investment of money at 10% per annum. Then it is enough to put 91 kopecks in the bank today to receive hryvnia in a year. Therefore, expenses expected in a year are cheaper today - it is enough to reserve money in the described way. The same applies to income.

How profitable is the above project? This can be calculated using basic economic indicators that take into account the depreciation of money over time.

Net Present Value (the present value of future earnings minus current costs). If NPV > 0, then investing money in the project is more profitable than simply keeping it in the bank, i.e. the project is worth executing. If NPV = 0, the project makes sense if its implementation will give the investor something other than money. If NPV
But the same NPV can be obtained with large and small investments, so it is also necessary to calculate the following indicator - Profitability, designed to demonstrate to the investor how effectively his money is used. IRR shows what interest rate at a hypothetical bank corresponds to the efficiency of the project. This rate is calculated based on the condition: NPV = 0.

But, besides this, the investor is interested in when his costs will pay off. The payback period (determines the moment at which the NPV becomes zero) of this project is two years. The term is short, which is very attractive for investors. And not only because he can quickly return his money and start making a profit. And also because long-term projects (especially in our unstable legal environment) are fraught with great risks that are sometimes impossible to predict.

Project, move over!

As our experience shows, it is necessary to evaluate a project for its financial efficiency not only in order to decide whether it is worth taking on, but also in order to be able to compare different projects. After all, if a company simultaneously implements several of them, sooner or later they begin to compete with each other for the organization’s limited internal resources, i.e., for finances, people, mechanisms, equipment, information. In order for the company's resources to be used optimally (which is the most important task of project portfolio management), priorities should be set and those projects that will give the maximum effect should be selected.

The company in question has another project - expanding the network of branches and entering non-CIS countries. It requires the same costs as building a plant and is also quite attractive. The company is not able to implement both projects at the same time due to limited financial resources. Which project should you prefer? Of course, the one that will bring greater economic effect.

The comparison on the main indicators was clearly not in favor of the second project: with equal GNI, the NPV of the “plant” project is 1.6 times higher than the NPV of the “branch network” project. And the payback period of the plant is less than a year. So, having compared the main economic indicators of both projects, the company came to the conclusion - to give preference to the construction of the plant.

The project management team must evaluate whether it is worth spending money to speed up implementation, or saving money but being late

In this case, it is clear why project No. 1 took the palm - it was clearly the leader in terms of project efficiency indicators. But what to do if there is no such obvious advantage, if one project pays off faster, while another has a higher GNI? Which project will take over the company's limited resources? It depends on the organization's policy. A cautious organization, first of all, thinks about the fastest return on investment and minimizes risks, and a risk-prone organization primarily looks at IRR.

An investor who invests money in an innovative project expects both a high GNI and a quick payback period. But at the same time there is a significant risk.

It is clear how homogeneous (in this case, commercial) projects compete. But what about heterogeneous projects? After all, investment projects can be commercial and social or political. A commercial or business project is focused on obtaining maximum profit, but a social (political) project does not have such a goal, since the benefit received by the company implementing this project is not measured in monetary terms. This is rather work for the company’s reputation, for the future, this is an opportunity for the company to express itself.

Often a project cannot be implemented without the infrastructure designed to implement it. And the creation of such an internal structure is also a project, only an organizational or infrastructural one.

Do business projects always have priority over social (political) ones? Not at all. After all, social projects in the future can bring in money that significantly exceeds the “quick” profit from a commercial project. Therefore, we recommend that for such projects we give estimates of future income associated with their successful implementation (even if they are expert estimates).

Another approach to assessing the profitability of projects is also possible: make a list of the main indicators by which you determine the attractiveness of projects.

For example:

* NPV
* payback period
* social significance (for the company)
* duration, etc.

Now rate the importance of these indicators in points (for example, on a 10-point system). Then evaluate each project on each of the indicators (also in points). Multiply the importance rating by the project rating and add up the resulting points. Now that you have ranked your projects, first of all, implement those that received the maximum score and for which your resources and investments are sufficient.

Organizational (infrastructural) projects related to internal ones, in most cases, can be considered as part of investment projects, and it would be incorrect to say that they compete for resources with commercial projects. Often, the success of a business project directly depends on how successful the implementation of the organizational project for the reorganization of the company will be. And no matter how expensive the reorganization is, it is worth it.

In this case, part of the commercial project “Construction of a plant” is an organizational project - a new organizational structure is created that is capable of managing the project, a new system of accounting, reporting, control, etc. is introduced.

If changes are not made in the organizational structure of the company, it will not be possible to effectively manage the innovative business project itself, it will be impossible to monitor execution, optimize the use of resources, prevent risks, control production - this is the experience of our company.

As part of this same commercial project there is also a social one - the construction of housing for the needs of the area in which the plant will be located. This social project is clearly unprofitable for the company, but its implementation was one of the conditions for the allocation of land for the construction of the plant. Even the fact that this commercial project is burdened by two others - organizational and social - did not make it unprofitable for the company.

What you need to succeed

Before we begin the project, we will define the criteria for success and failure. The first criterion for the success of the “Construction of a metallurgical plant” project is the timely completion of construction and commissioning of the facility. Second criterion: the first heat must confirm the quality of the product and its compliance with international standards. If this does not happen for any reason, the project can be considered a failure - and this is one of the most significant risks. Therefore, the second criterion is so important that you can sacrifice the first one slightly, for example, slightly shift the deadlines, if necessary, conduct not one or two (as planned), but four or five test swims. The third criterion for the success of a project is no longer associated with the commissioning of the plant, but with the operation itself, with reaching its design capacity. And also within a certain time frame. The fourth - reaching the break-even point.

When the plant is fully operational, the success of the project will be characterized by timely sales. The key to success in this case is the conclusion of futures contracts for supplies. Contracts must be concluded in advance, as soon as tests show that the product is not inferior in quality to world analogues. Concluding a little earlier is a risk. Later - you can lose time, and, consequently, money. It is important at this moment to give the go-ahead to the project manager to conclude futures contracts. Because from the moment it reaches full capacity, the countdown of lost profits begins.

Traditionally, a project completed on time and within budget is considered successful. But what if the project finished early but was over budget? What if the project was late, but saved significant money? Multiple criteria for success make management difficult. Therefore, it is advisable to bring these two indicators to a common denominator, because time in project management is the same as money. That is, every day of delay results in a certain amount of lost profit. This way you can easily calculate whether it is worth making additional infusions in order to be on time. Or work within the planned budget, but exceed the deadlines. When you select a priority project from a portfolio, you are guided by some criteria, for example, maximum IRR and NPV or minimum payback period. In fact, these are the criteria for project success.

The project management team must clearly rely on forecasts of future income when assessing economic feasibility - this opinion is shared by all consultants of Spider Management Technologies Ukraine. This gives the team the opportunity to evaluate whether it is worth spending money to speed up implementation, or saving money but being late. A certain level of profit (loss) is set at a certain point in time. Project success is exceeding a given profit (reducing losses). All current decisions are determined by whether we increase or decrease profits at this moment. In fact, it turns out that the cost of a day of late implementation of the project is set, as well as the cost of each day of advance.

A similar approach is possible for social (political) and organizational projects: the planned completion date, the planned project budget and, additionally, the cost of a day ahead and late are determined. In this case, the question becomes relevant and justified: “Is it worth spending additional funds to speed up execution.”

Project portfolio management is simplified because you can compare and evaluate what, for example, transferring resources from one project to another gives, and how to optimally distribute limited finances.

Similarly to the criterion of success, it is necessary to determine the criterion of failure - such indicators of economic efficiency, failure to achieve which means that the project ceases to be economically attractive (minimum IRR, maximum payback period, minimum level of profit (loss) at a certain point).

If the specified criterion for the success of the project is not achieved, this does not mean that the project is unsuccessful from the point of view of the company’s interests - our company’s consultants repeatedly repeat this. Perhaps the project management team made a mistake, unforeseen risks arose, or performance deteriorated for some other reason. As long as the project performance does not become worse than the minimum acceptable, the project should be continued; it remains economically attractive.

However, as soon as the forecast shows that the minimum indicators will not be met, the team is obliged to raise the question of stopping further execution of the project. At the same time, it is extremely important that the company does not associate the failure of the project with the failure of the team.

It is necessary that timely termination of the project execution and replenishment of the company's knowledge base be given credit to the team. It is necessary that project management be considered successful both in the case of achieving a positive result and in the case of timely termination of the project and replenishment of the organization’s knowledge base.

Three options for success

What else is important to know. In fact, both the deadlines and the budget of any project (this project “Construction of a metallurgical plant” in particular) are not the same for all project participants. Each of them - investor, project manager and contractor - has its own deadlines and budget. Both the criteria for success and failure of each participant’s work are determined based on indicators defined only for them. For example, the contractor has a deadline in which the object must be “brought to completion” - 1 year 8 months, for the project manager - 1 year 10 months, and the investor has reserved another 2 months for himself. For him, the project will be successful if construction is completed and the facility is put into operation within two years. Same with the budget. The project manager is allocated, say, $17 million, but the investor always has a management reserve, for example, another $3 million. What is this money reserved for? In fact, no matter how we calculate project risks, there is always the possibility of unplanned, unaccounted for risks.

The fact that success is invariant should in no way discourage the project manager. He will be rewarded or punished for exceeding his budget of 17 million and the period of 1 year 10 months. An additional 2 months and 3 million are not his money and not his time frame.

What where When…

All information necessary for the implementation of the project must be recorded in a separate document - “Internal Regulations for the Preparation of the Investment Process”. The absence or superficial nature of this document is a sure sign that the company has poorly analyzed the attractiveness of the project. Compliance with the regulations also allows you to carry out calculations that make it possible to make an informed decision on which of the competing investment projects to choose for implementation.

The internal regulations for the preparation of an investment project should first of all define and clearly document the project in the context of the company’s strategic goals.

An important part of the regulations is a description of the distribution of responsibilities within the organization for training:

* economic justification;
* technical and engineering parts;
* ;
* financial strategy and financial calculations;
* systems .

The regulations must also reflect the procedure for approving an investment project. The next chapter should contain the organizational structure of the project (implementation stages and those responsible for them), a description of the implementation of the stages. It should also define the scope of authority and responsibility.

Implementation of a project is impossible without clear monitoring of its condition and control of its execution. A created analytical group should deal with this. Its activities (centralized planning, centralized control of execution) and main task (two independent channels of information for the first person and decision makers) must also be clearly described.

In addition, the “Regulations” must include requirements for the risk management system of an investment project, including risks (risk nodes) and recommendations for developing a risk mitigation strategy. Based on the “Regulations,” the project manager draws up a plan for his work.

Efficiency of economic systems

The effectiveness of the economic system depends little on the size of the country's territory, population size or natural and climatic conditions. The economic power of a state is determined by how much the people understand and support the goals chosen by their government, what attitude in society towards absolute values ​​- a person and his life

What (which products and in what quantities) should be produced? This question can only be answered by consumers by the fact of paying with their own money for the goods created.

How should these products be produced (by whom, how much, from what resources, using what technology)? The issue is resolved through risk and entrepreneurial choice.

For whom is the product produced, i.e. how is the national product divided between individuals and families?

Each economic system solves these questions in its own way, for one the first place is the question For whom?. Other systems prioritize the questions What? And How?

But in any system, the solution to these problems is connected with the fact that, on the one hand, the material needs of society are unlimited, and on the other hand, i.e. funds for production of products are limited.

There are at least three reasons that prevent the achievement of high economic results through the creation and certification of insurance companies.

The first reason is that the goals of enterprise managers are not always correct. When making management decisions on carrying out activities on , they do not pursue the goal of creating an effectively functioning insurance company that will actually guarantee the quality of products in accordance with the needs and expectations of consumers, namely obtaining a certificate. The presence of such a document gives the company a serious competitive advantage. On the domestic market, this is an opportunity to obtain a government order, which is sometimes the only means of ensuring the survival, especially of defense enterprises. The foreign market for domestic enterprises that do not have a quality assurance system based on ISO 9000 series standards is practically closed. Therefore, enterprise administrations are primarily interested in the timing of obtaining an international quality certificate. And issues related to the volume of labor, material, technical and financial resources necessary for the implementation and certification of the QS and, most importantly, to ensure its cost-effective operation, fade into the background.

The second reason preventing the achievement of high economic results is that most enterprises implementing the ISO 9000 series do not keep track of quality costs, since the 1994 version of ISO standards did not require quality cost management. In the 2000 version, mandatory accounting of quality costs was introduced as an element of the QS. Maintaining such a report requires creating new forms, since existing forms allow you to isolate only one element of quality costs - losses from defects.

The introduction of new management accounting for quality costs is labor-intensive and requires material costs. In addition, the implementation of MS ISO 9000 series involves an almost complete change in the enterprise documentation, which also entails material costs. Therefore, for many enterprises, achieving compliance of documents with the mandatory requirements of ISO standards comes to the fore, and the problem of accounting for quality costs is ignored. As a result, as research by specialists in the Tambov region has shown, even senior employees of the bureaus and quality departments of enterprises preparing QS for certification cannot give at least an approximate estimate of the share of costs for ensuring product quality in the total costs of the enterprise, have little idea of ​​the organization of collection work, accounting and analysis of data on the costs of creating and certifying the insurance system.

The third and, in our opinion, the most serious reason preventing the achievement of economic effect is the lack of a reliable method for quantitative assessment of the economic efficiency of the creation, certification and functioning of the insurance system in enterprises. Its existence is due to the presence of the first two. On the one hand, without knowing the real volumes of expenditure of all types of resources on the implementation and operation of the insurance system, it is impossible to give an accurate assessment of its effectiveness. On the other hand, the difficulty lies in the fact that it is difficult, and in some cases almost impossible, to highlight in monetary form that part of the profit that is received through the functioning of a certified quality assurance system, and not other quality measures. However, the authors of the article tried to assess the effectiveness of implementing ISO 9000 series standards at Russian enterprises. One of the Russian enterprises (let's call it plant N), which received a certificate of compliance with the requirements of MS ISO 9002 "Quality system. Model of a quality system in production and installation", was chosen as the object of research.

If the economy moves along a convex production possibilities curve to the right and downward, this means that opportunity costs are increasing.

Let's say you need to produce two goods - guns and oil. These products are generally used to illustrate the alternative nature of civilian and military production. For example, if absolutely all resources are allocated to the production of butter, then its production volume will be 5 million kg. An alternative to “oil paradise” is cannon production in the amount of 15 thousand pieces. at the same level of resource and technological support.

However, if society reduces its oil production, it will be able to have guns. Moreover, the production volumes of oil and guns are not only alternative, but also mutually pollinating, taking into account the limited resources.

This can be illustrated on a graph of the production possibilities curve, where the horizontal line is the amount of oil and the vertical line is the number of guns. By fixing the numbers on the graph and connecting them, we get the CPV.

Alternative possibilities for the production of oil and guns KPV gives an idea of ​​four interrelated concepts:

1) limited (rarity) resources;
2) economic efficiency;
3) economic choice;
4) opportunity costs.

The production possibilities curve shows the alternative combination of goods given a given amount of input. It gives an idea of ​​the rarity, which lies in the limitation that the CPV outlines: outside its borders, the country cannot produce with these technologies.

An efficient combination of resources is one in which it is impossible to increase the production of one good without reducing the production of another. The principle of efficient allocation of resources is called Pareto efficiency after the Italian economist Vilfredo Pareto. In the English-Russian dictionary “Economics”, efficiency, according to Pareto, is defined as “a state of the economy in which society extracts maximum utility from available resources and technologies, and it is no longer possible increase the production of one good without reducing the production of another good.” Production is efficient if it ensures full use of all available resources.

Thus, in an economy operating under conditions of full employment and full use of all resources on a constant technological basis, in order to increase the production of means of production, it is necessary to reduce the production of consumer goods. The point located inside the production possibilities curve (to the left) characterizes the inefficient use of available resources (that is, not all available resources are employed in production). The point on the right, above the production possibilities curve, shows the volume of production that is unattainable for society. Points that lie on the production possibilities curve are called efficient, and points that lie outside this curve are called inefficient.

Economic efficiency criteria

The general criterion for the economic efficiency of social production is the level of productivity of social labor.

Criterion (from Latin criterion) is a sign on the basis of which an assessment, definition or classification of something is made, i.e. measure of evaluation.

As you know, GDP represents newly created value. In other words, it is that part of the created domestic product that remains after deducting the raw materials, fuel, energy and other means of production consumed in production. GDP is calculated as the sum of the net output of all sectors of material production.

When comparing growth rates of social labor productivity, it is necessary to maintain comparability of indicators. In this case, GDP should be calculated in constant prices.

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Introduction

At the present stage of development of Russia, ensuring the stable operation of enterprises producing competitive products is a task of paramount importance for managers at all levels. The most important qualitative characteristic of management at all levels is production efficiency

The problem of determining and measuring the economic efficiency of production is that it is impossible to measure the level of efficiency using one indicator, since it is formed under the influence of many factors, sometimes counteracting each other. Therefore, among the entire set of indicators, it is customary to single out one that most fully characterizes the level of efficiency, having not only quantitative, but also qualitative certainty.

Chapter 1. Economic efficiency of production

1.1 The essence and significance of economic efficiency of production

The term "efficiency" is universal. It is used in all spheres of human activity: economics, politics, science, technology, culture, etc.

In terms of meaning, efficiency is associated, firstly, with the effectiveness of a work or action, and secondly, with efficiency, that is, the minimum amount of costs for performing a given work or action. Efficiency alone is not able to comprehensively characterize effectiveness, since a result may be achieved, but not the best. Profitability also does not characterize efficiency, since there may be minimal costs with low results. Therefore, efficiency is understood as the level (degree) of the effectiveness of a work or action in comparison with the costs incurred.

In the economics of an enterprise, in its most general form, efficiency means the effectiveness of economic activity, the relationship between the results achieved and the costs of living and material labor. The level of efficiency characterizes the level of development of productive forces and is the most important indicator of economic development. In an enterprise, costs take the form of advanced fixed and working capital, and the final results take the form of profit. Thus, the economic efficiency indicator gives an idea of ​​​​the price at which the company makes a profit. Comparison of costs and results is used in the practice of justifying business decisions.

The level of efficiency is determined by comparing two quantities - the economic effect (result) and the expenditure of resources with the help of which it was achieved

When assessing effectiveness, it is necessary to distinguish between criteria and indicators.

Economic efficiency indicators give an idea of ​​the cost of resources to achieve an economic effect. That is, with their help the level of efficiency of production and economic activities is measured.

It is impossible to measure the level of efficiency using one indicator, since it is formed under the influence of many factors, sometimes counteracting each other. Therefore, among the entire set of indicators, it is customary to single out one that most fully characterizes the level of efficiency, having not only quantitative, but also qualitative certainty. In economics, such an indicator is usually called a criterion.

Various indicators can serve as criteria:

At the enterprise level - maximum profit per unit of resources;

On the scale of the national economy - maximum GDP per unit of resources consumed.

Analysis shows that these indicators rather characterize production goals, their relationship between costs and results. To the greatest extent, the requirements for assessing economic efficiency are met by such an indicator as labor productivity. Most often it is called as a criterion for the efficiency of production and economic activities of an enterprise. As for private indicators of economic efficiency, their nomenclature depends on the purpose and object of evaluation.

Sometimes the concepts “criterion” and “indicator” are used interchangeably. This approach cannot be called justified. The fact is that the result of production and economic activity or the implementation of certain organizational, technical, economic and other activities can be expressed qualitatively and quantitatively, that is, it has qualitative and quantitative certainty. The qualitative side of the production result is reflected by the criterion, and the quantitative side - by performance indicators. Performance indicators that quantitatively express any criterion differ in the completeness with which they characterize effectiveness. Thus, the indicator of productivity of living labor is local in relation to the indicator of productivity of total labor; it covers only part of the sphere of labor functioning.

There are natural, cost, conditional and other indicators for assessing economic efficiency. Using each of them has its positive and negative sides. Natural indicators, such as product output in physical terms, have become widely used in assessing efficiency. Their use eliminates the side effects, for example, of prices on the results of performance measurements. But the use of natural indicators is very limited. It is possible only by comparing homogeneous products or qualitatively homogeneous labor.

The search for the possibility of comparing products of different quality and labor of different quality with some synthetic indicator without the use of cost categories led to the development of various conditional indicators (net production, added value, standard labor intensity). The main disadvantage of the currently existing calculated, conditional indicators is their weak scientific validity. All this suggests that universal, comprehensive performance indicators have not yet been developed. The choice of the most suitable of the available ones must be made based on the specific conditions for determining efficiency at each enterprise.

The effectiveness of various types of economic activities is determined in order to solve two economic planning problems. Firstly, to identify and assess the level of use of certain types of costs and resources, as well as the economic efficiency of production at its various levels (national economy, industry, enterprise, individual economic activity). Secondly, for the economic justification and selection of the best (optimal) production and economic solutions (introduction of new equipment, technology and organization of production, labor and management, location of enterprises, investment options, etc.).

In accordance with the named objects and calculation methods, a distinction is made between general (absolute) and comparative (relative) economic efficiency of production.

General (absolute) is used to analyze and evaluate general economic results, production efficiency at various levels of the economy for a certain period and over time. It characterizes the magnitude of the economic effect in comparison with costs and resources. Its definition is based on the calculation of generalizing and differentiated indicators that reflect the level of efficiency of costs and resources. For example, at the level of the national economy, such an indicator will be the ratio of GDP to the number of workers in the sphere of material production, at the enterprise level - production profitability.

Comparative (relative) efficiency is determined in order to substantiate the socio-economic advantages of any option for solving a production and economic problem, to select from the options under consideration the most effective in terms of the ratio of current and one-time costs during its implementation. If, for example, one of the compared options, when implemented, requires less capital investment and at the same time provides a lower cost of production, then, other things being equal, it is recognized as economically more profitable in terms of comparative efficiency. In this case, a double effect is achieved: savings from reducing production costs and savings on production assets and capital investments. There may be cases when additional capital investments are introduced that reduce the cost of products, works and services. The feasibility of their implementation can also be assessed using comparative effectiveness. Comparative efficiency is determined as the ratio of current cost savings to the inverse difference in capital investments for the options.

Calculations of general and comparative efficiency complement each other, that is, all known methods for assessing the effectiveness of business decisions, for example investment projects, are a combination of indicators of general and comparative efficiency.

It should be borne in mind that indicators of overall economic efficiency can be used when choosing one of several alternative options for solving a production and economic problem. But the opposite is not possible: comparative economic efficiency indicators cannot characterize absolute efficiency. This circumstance is explained by the fact that absolute efficiency indicators are universal, and comparative efficiency indicators were introduced into assessment practice to solve particular problems and calculations when comparing different options and are based on a comparison of current costs and investments.

In the methodology for assessing efficiency, in addition to economic efficiency, it is customary to highlight socio-economic efficiency. It reflects not only the efficiency of consumption of labor results. The problem is that many socio-economic activities carried out at the enterprise, in terms of absolute and comparative efficiency, can be unprofitable, since there is no direct connection between the human factor they influence and the results of economic activity. Socio-economic efficiency can be expressed in such indicators as the degree of satisfaction of members of the work team with the results of work, working conditions and safety, fatigue, load on the external environmental environment, quality of life, etc. In a number of projects, socio-economic efficiency can be a decisive factor their implementation. Indicators of socio-economic efficiency complement calculations of absolute and comparative efficiency, making the assessment of efficiency more systematic and comprehensive.

Production efficiency– the effectiveness of production and economic activities, the relationship between the results of economic activities and the costs of living and material labor, resources expressing the achieved level of productive forces and the degree of their use. From this definition it follows that the level of economic efficiency is a comparison of two quantities: economic effect and production costs and resources.

Economic effect– the result of the implementation of an economic activity, expressed in valuation. Typically, the beneficial outcome is profit or savings in costs and resources. The economic effect from the implementation of a business operation or event is an absolute value, depending on the scale of product sales and cost savings. Thus, the effectiveness of a business event depends on the economic effect, as well as on the costs that determined this effect.

An important role in the system of business performance indicators belongs to such an indicator as profitability. If profit is an absolute indicator of profitability, then the level of profitability is relative.

An enterprise is profitable if the amount of revenue from sales of products is sufficient not only to cover the costs of production and sales, but also to generate profit. Thus, profitability characterizes the efficiency of the enterprise and gives an idea of ​​the enterprise’s ability to increase capital.

When calculating profitability, different profit indicators can be used. This makes it possible to identify not only the overall economic efficiency of the enterprise, but also to evaluate other aspects of its activities.

Profitability can be calculated in different ways. The main indicator is the indicator overall profitability or indicator return on assets, which is calculated by the formula:

, (20)

Where Ra– return on assets, %; P– balance sheet profit, rub.; A– the amount of assets of the enterprise, rub.

This profitability ratio shows how much profit is generated per 1 ruble of invested capital.

In addition to return on assets, the indicator is widely used in the process of analyzing the business activities of enterprises product profitability:

(21)

Where R pr– product profitability, %; P– gross profit of the enterprise, rub.; S p– total cost of products sold, rub.

For trade and catering establishments it is calculated profitability of turnover according to the following formula:

Where R t– profitability of turnover, %; P– the amount of profit from sales; T– volume of trade turnover (excluding VAT).

Profitability of production assets enterprise is determined by the following formula:

, (23)

Where R f– return on fixed assets, %; P– amount of profit (gross or net); OF– average cost of fixed assets (funds); MS– average cost of working capital.

From the point of view of the owners of the enterprise’s capital, it is important to know what the return on the capital they invested is, i.e. the level return on equity. To characterize the efficiency of using equity capital, determine the share of profit in equity capital (equity) in relation to profit ( P) and average equity capital ( K s) :

. (24)

The return on equity indicator is important for the shareholders of the enterprise. It serves as a criterion for assessing the level of quotation of shares of a joint-stock company on the stock exchange; this indicator allows investors to assess the potential income from investing in shares and other securities.

One of the important performance indicators is the cost per ruble of products sold, which shows the amount of costs invested to obtain one ruble of products. This indicator is calculated using the formula:

Where SRP– total cost of goods, products, works, services sold, rub.; Vpr– revenue from the sale of goods, products, works, services, rub. If the cost of one ruble of sales is less than a ruble, then the enterprise makes a profit; if the value of the indicator is greater than one, then this indicates that the enterprise is unprofitable. A reduction in costs per ruble of sales indicates an increase in the efficiency of the enterprise.

The efficiency of using any one type of costs and resources is expressed in the system differentiated performance indicators. These include: labor productivity and labor intensity, material productivity and material intensity of products, capital productivity and capital intensity, capital productivity and capital intensity. Differentiated efficiency indicators are calculated as the ratio of product output to individual types of costs or resources, or vice versa - costs or resources to product output.

Concept, functions, purpose of a business plan

Business plan– a document that represents an objective assessment of the enterprise’s or firm’s own business activities and, at the same time, a necessary tool for project and investment decisions in accordance with the needs of the market and the current situation. It reveals the main aspects of the future business enterprise, analyzes with sufficient completeness the problems that it will encounter, and determines, using the most modern methods, ways to solve these problems. It is on the basis of this document that partners and investors provide funds.

There are four motives that require the preparation of a business plan during the planning process:

1. Investing in any, even the most attractive idea contained in a strategic plan, is always associated with risk. The process of developing a business plan involves thinking about the idea, forcing its authors to look critically and impartially at the proposed project in its entirety. Therefore, the plan helps prevent errors and reduce risk.

2. The business plan is an official document that is used for lending and financing the activities of the strategic plan.

3. A business plan is a working tool with the help of which all sections of the technical and economic plan of an enterprise are drawn up. On its basis, an effective enterprise management system is created.

4. A completed business plan materializes an idea, serves as a means of communicating the idea to other interested people and business entities, that is, it is the most important means of communication in contacts with bankers, investors, clients, customers and partners.

The business plan should give a complete picture of all aspects of the project and consist of the following main sections:

1. “Summary”;

2. “Characteristics of the enterprise and industry”;

3. “Description of products (services)”;

4. “Market analysis”

5. "Competition"

6. “Marketing Plan”;

7. “Production plan”;

8. “Organizational plan”;

9. “Financial plan”;

10. “Potential risks”;

11. Applications.

1. "Resume". The summary reflects the main idea of ​​the project and summarizes the main conclusions and results of the sections of the business plan. Its task is to present the essence of the business plan in a concise and accessible form. It is advisable to provide information about the technological novelty of the project (if any) and its social significance.

2. “Characteristics of the enterprise and industry.” This section provides a description of the industry and characteristics of the enterprise, its role and place in the industry hierarchy and the national economy as a whole.

3. “Description of products (services).” This section provides information about the products that the enterprise will produce: scope of application; main characteristics (consumer, sales and functional); compliance with international and national quality standards; and etc.

4. Market analysis: assessment of potential market capacity; assessment of existing market conditions; sales forecast; market segmentation.

5. "Competition". The purpose of this section of the business plan is to justify the choice of competitive tactics of the enterprise in a competitive market.

The section structure can be as follows:

Analysis of the strengths and weaknesses of the enterprise and its main competitors;

Assessing the competitiveness of products and services;

Assessing the competitiveness of an enterprise;

6. Marketing plan: pricing strategy, selection of forms of sales promotion, including development of an advertising campaign plan.

7. “Production plan.” production and sales program; production facilities (buildings, structures, technologies, equipment); logistics; cost (costs) of production and sales of products.

8. “Organizational plan The central place is given to the justification of the organizational structure of the enterprise and the choice of a rational management system for production, personnel, supply, sales and the enterprise as a whole.

9. "Financial plan." The financial plan includes the following independent sections: cost plan, profit plan, calculation of break-even conditions.

Ø 10. “Potential risks Large enterprises require a thorough calculation of risks using a special, rather complex mathematical apparatus of probability theory. For medium and small enterprises, risk analysis using purely expert methods is sufficient

Then measures are developed to reduce losses for each risk factor: organizational measures to prevent and neutralize risks; proposed risk insurance program; How long will it take to achieve the goal if the planned deadlines are missed?

11. "Applications". This is a section not regulated in scope, which includes all materials supplementing the main sections (specifications, technical description of a certificate, patent, results of marketing research, etc.), as well as information about the head of the enterprise (investment project), investors, experts, consultants project, promotional materials, etc.

All performance indicators are estimates. It is clear that to calculate them, you need to have the necessary set of primary indicators that reflect real production processes and the state of the economic system in all its areas. The main source of information for comprehensive economic analysis is data from operational accounting of all types of resources and costs, main results and balance sheet of the enterprise as of the corresponding date.

Determining the economic efficiency of an activity should be based on its own methodological basis.

However, in Russia there is no official and generally defined methodology for comprehensive assessment of performance results. But you can focus on such defining provisions of this technique. An analytical assessment of the economic and social efficiency of production should be based on the results of a comprehensive analysis of farm activity over a certain period of time. Such a comprehensive analysis, covering monitoring, recording actual (expected) values ​​over time and analytical assessment of a certain set of performance indicators, should be carried out according to a predetermined scheme, in several stages.

The objects of economic analysis of most industrial enterprises should be:

• · organizational and technical level and volume of production;
• · use of fixed assets and production capacities, material resources;
• · achieved level of labor productivity;
• · cost of production (current production costs);
• · profitability, profitability;
• · financial condition and its stability;
• · description - characteristics of changes in performance indicators of the assessed enterprise and other enterprises in the industry for the billing period;
• · clearly formulated conclusions based on the results of the economic analysis;
• · reserves for increasing the economic efficiency of production identified in the process of analytical assessment and justified proposals for their practical use in the future.

The construction of production efficiency indicators is based on certain methodological principles. The main ones are:

• · results and costs used to form appropriate indicators of production efficiency must be compared as their ratio or difference;
• · the result of an activity, measured quantitatively, must be complete, that is, take into account all elements that cannot be repeated in further calculations;
• · current expenses cannot contain any elements of the result;
• · It is advisable to divide all production efficiency indicators into two types: resource-based and cost-based.

In other words: it is necessary to highlight separately the efficiency of compliance of the resources used (the totality of embodied and living labor) and consumed (current costs of production) resources, as specific forms of manifestation of the overall efficiency of production.

The formation of a system of indicators for assessing efficiency should be carried out, first of all, depending on the focus of the latter. As you know, the main goal of the owner is to maximally satisfy the needs of the domestic market and receive sufficient absolute and relative profits.

Labor productivity is defined as the ratio of a product to the number of workers employed in its production over a certain period of time.

The inverse indicator - labor intensity - shows how much labor is spent on producing a unit of product. Labor productivity is the most important indicator of the progressiveness of the technological method of production and property relations, which indicates the use of labor. In terms of labor productivity in industry, Ukraine lags behind the developed countries of the world by almost 5-6 times, in agriculture - by 7-8 times. Such a lag in agriculture means that one worker in this field in developed countries of the world creates such an amount of products that can feed up to 130 people, but in Russia - less than 15.

Capital productivity is the ratio of the cost of a product to the means of labor (fixed production assets). It expresses the efficiency of using means of labor, or shows how many finished products are produced per unit of fixed production assets. To increase the capital productivity of equipment, it is necessary to use it in 2 - C changes. Capital productivity in material production in Russia in 2006-2013. decreased by almost 35%.

The capital intensity of products is the inverse indicator of capital productivity.

Material productivity is the ratio of the cost of a product to objects of labor (material costs). Decrease in material productivity in Russia by 1oo rub. would allow us to additionally receive tens of millions of national income.

Material consumption of products is the inverse indicator of material productivity.

The named values ​​(labor productivity, capital productivity and material productivity) are the main indicators of production efficiency. With its increase, labor productivity, capital productivity and material productivity increase, and product quality improves. At the same time, in practice one can observe multidirectional movements of these main indicators. Thus, an increase in product quality may be accompanied by the use of expensive materials, that is, a decrease in capital productivity (or an increase in capital intensity). Therefore, to comprehensively determine labor efficiency, an integrating indicator is used, which takes into account the multidirectional movement of individual indicators:

where E is production efficiency; CC is a pure product, taking into account its composition and quality; P - costs of living labor; M is the amount of materials consumed; F - costs of labor (fixed production assets); V is the coefficient of reduction to a single dimension, which allows you to generalize costs and investments.

Economic efficiency should be considered as the rational and effective use of not only one of the factors of production (for example, labor), but also all production factors (material factors of production), production management, etc., which primarily depends on their optimal distribution.

Economic efficiency must be compared with socio-economic optimality, which provides for the state to carry out such a macroeconomic policy (through taxation of final income, social expenditures, monetary policy, etc.) that would not inhibit incentives for work, entrepreneurial activity, etc. ., on the one hand, and did not give rise to the desire to live only at the expense of the state’s social expenditures, on the other.

1. One of the main indicators is the level of satisfaction of market needs (I), which is calculated by comparing manufactured and sold commercial products (B) and the probable market demand (O) determined in the process of marketing research.

2. An important indicator that reflects one of the many goals of the economy is gross and net profit. However, the absolute value of this indicator characterizes the activity of the farm only to a limited extent. The latter is better reflected by the gross profit growth rate, which is determined by comparing its actual and planned values ​​(Pf and PP, respectively) using the formula:

Kvp = Pf/Pp

3. The most careful approach should be taken to planning and determining profitability as a relative indicator of the profitability of the management system. First of all, production profitability (Pv) is of great importance for assessing activity, to determine which it is necessary to compare the resulting gross (net) profit (Pv / h) with the sum of fixed assets (OSF) and working capital (OBF), i.e.

Rv=Pv / (OsP+ObP)*100%.

Along with the profitability of production, the profitability of individual products (Pt) should also be calculated as the ratio of gross profit (Pv) and the cost of commercial products (STP), i.e. according to the formula

RT=Pv/Stp*100%.

4. The efficiency of production largely depends on the level of use of labor resources. It is most likely characterized by the labor productivity indicator (Vp), which is determined by dividing the volume of marketable products (VTP) by the total number of personnel (PN), i.e.

Vp=Vtp/Chp.

5. One of the main factors of any production process is always fixed assets (technical means of labor in monetary terms). The most general and widely used indicator of the use of fixed assets is capital productivity (in terms of production volume and income received)

Capital productivity on profit (return on fixed assets) is calculated using a similar formula with the difference that in the numerator, instead of the volume of marketable products, the value of gross profit (Pv) is used, i.e.

FVp=Pv/OsF

6. To calculate the wage intensity of products (WEP), use the indicators of the wage fund (WF) and the volume of marketable products (VTP):

ЗЄп=Фзп/Втп

It is also possible and necessary to calculate the inverse indicator - salary productivity (SVP), i.e. the volume of products produced and sold per monetary unit of wages.

7. Finally, among the totality of indicators for the use of farm resources, current costs per unit of commercial output (PV) are distinguished, the value of which is calculated by dividing the cost of commercial output (CTP) by the total volume, that is