Economic sciences / 10. Enterprise economy
Candidate of economical science Gorelova N.S.
Kostanay engineering- economical university named after M.Dulatov,
Production efficiancy formation at
the enterprise
Economic activity management is defined as continuous process which is
achieved expedient impact on manufacturing system to prevent deviations from
the intended target.
If there are unexpected developments , the
recapture happens so quickly that the
real damage to the organization’s normal activities would not occur at all or will be kept to a minimum. Practical impact on the system involves
planning, organization, motivation and control, the whole process, the entire
process needed to formulate and achieve organizational goal. Therefore,
improving production efficiency is the
process of designing and making
managerial decisions on all main formation directions in the organization, i.e.
the output and inputs.
Enterprise production efficiency formation determines the number of
requirements for this process [1], the main are:
1. Integrate with common organizational management. Regardless in which
scope of activity administrative decision was taken, it directly or indirectly
influence output and inputs formation. Organization production efficiency
formation directly connected with the production management, innovation
management, HR management, investment management, financial management and some
other species of functional management. This determines the need for organic
integration of expenses and results formation system with organization
management system.
2. The comprehensive nature of managerial decision formation. All
management decisions in the field of expenses and result formation closely
interrelated and have direct or indirect impact on the production efficiency
level. In some cases, this impact is
contradictory. So for example, highly profitable financial investments
implementation may cause financial resources deficiency that provides
industrial activities, and as a consequence - significantly reduce the
operating efficiency. Therefore, production efficiency formation should be
considered as a complex system of actions that ensures interdependent
management solutions, each of which contributes to expenses and results
formation effectiveness in the entire
organization.
3. Multiplicity
approaches to develop individual administrative decision. This requirement
implementation suggests that the
preparation of every managerial decision in the expenses and results system
should consider alternative
possibilities of action. In the presence of alternative managerial decision project, their realization
should be based on criteria system
that define management efficiency policy
in the organization. The system of such criteria is determined by the company
itself.
4. Focused on organization’s
strategic development. Whatever how profitable seemed some managerial decisions
at the current period; they must be rejected if they come into contradiction
with the organization main aim.
Taking into account the content production efficiency
formation process and specified requirement met
its goals and objectives. The
main production efficiency formation
purpose in the commercial organization
is to furnish maximal result (effect) at minimum cost.
Construct production efficiency formation system calls
systematized list of this administration’s objects. This object control
systematization should on the one hand reflect the office functional approach,
and on the another - different
levels [2].
Production efficiency management functional focus tease out two fundamental kinds: 1) profit formation
management; 2) formation and coast allocation management. Each of these macro
profit management in turn is divided into objects of a lower order, forming a
hierarchical system.
As each management system production efficiency management achieves its
main goal and objectives by implementing certain functions [3]. The
specification of production management efficiency functions is largely determined by enterprises
industry characteristics, their size, as well as the specific legal forms.
The basis of
production efficiency management mechanism at enterprise is planning.
Planning is the process of making development scheme to ensure
production formation efficiency at the
appropriate level in accordance with the enterprise development objectives in the coming period.
Planning at the enterprise is based on the usage of three essential
systems: (1) business production efficiency
forecasting activities; 2) plant's production efficiency current planning; 3) operative planning of enterprise
production efficiency [36-40]. Each type of planning production efficiency has its own form of implementation and
results.
The process of performing production management at the enterprise is based on a well
defined mechanism. In the structure of management mechanism , according to
I.A. Blanca it can include the following elements:
1 State legal and normative regulation
issues of enterprise result
formation and costs distribution. The adoption of laws and other normative
acts, regulating enterprise profit formation and distribution that represents
one of government’s economic policy
direction. Legislative and normative basis of this policy regulating profit determination and distribution of enterprises in various forms. The main of these forms include
: tax regulation; intangible assets and fixed assets depreciation regulating
mechanisms; profit adjustment deductions
to the reserve fund; regulation of minimum wages and other.
2 Market regulating mechanism of
enterprise’s profit formation
and usage Supply and demand on the
commodity and financial markets shape the products price level, attracting loans cost, individual yield, average rate of return
equity . According to market relation
deepening, the role of market regulation mechanisms of enterprise's
profit formation and usage will increase.
3 Internal regulation mechanism of
certain enterprises’
formation, distribution and usage of profit and expenses . The
mechanism of such regulation is formed within the company and, accordingly,
defines those or other operational management decisions on the issues of
formation, distribution and profits usage. Some of these aspects may be
governed by post requirement. Some of these aspects are regulated and formed at
the enterprise profit management
policy . Therewith company can developed and approved the internal system
of standards and requirements on
profit formation, cost distribution.
4 Specific methods and
techniques system that controls cost and result implementation management. In
the process of analysis, planning and production efficiency formation
control used an extensive methods
system by which to required results achieve. The main of them
include methods: the technical-economic calculations, the balance sheet,
economic-statistical, economic and mathematical, comparison and others.
Effective mechanism production efficiency management of efficiency at the enterprise allows to realize in full
standing tasks and objectives, contributes to the effective implementation of
office functions.
Reference:
1. Enterprise Economics, Ed. E.L. Cantor - St. Petersburg: Piter, 2002.-352
p.
2. Keiler V.A. Business Economics: a Course of lectures. - M: INFRA-M;
Novosibirsk: NGAEU, «Siberian agreement», 1999.-132 p.
3. Economics of firms: Textbook for universities/Under . V.A. Shandar. - 3-e Izd., Rev. and extra -
M: UNITY-DANA, 2002.-718 p.