How To Determine The Increase In Production

Table of contents:

How To Determine The Increase In Production
How To Determine The Increase In Production

Video: How To Determine The Increase In Production

Video: How To Determine The Increase In Production
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An increase in production at an enterprise is an increase in such an economic indicator as the number of manufactured goods in relation to their base value and initial value.

How to determine the increase in production
How to determine the increase in production

Instructions

Step 1

Determine the increase in production in the firm by increasing the indicator of labor productivity. At the same time, a number of main factors, which are divided into extensive (quantitative) and intensive, that is, qualitative growth factors, which characterize the degree of application of quantitative factors, have a simultaneous and direct effect on the change in the value of the volume of production.

Step 2

Calculate the sum of the extensive factors. To do this, add up the following indicators: the number of employees, the cost of fixed assets, the cost of material resources and capital costs.

Step 3

Calculate the sum of the intensive factors. To do this, add up the necessary available indicators: labor productivity, capital productivity, material intensity and capital intensity.

Step 4

Calculate the rate of increase in production. For example, the following data are available: the volume of production for 2010 is equal to 100 thousand rubles, and for 2011 - 150 thousand rubles. In this case, it is necessary to calculate the total change in production volumes: 150-100 = 50.

Step 5

Find the change, the increase in the number of employees. To do this, also subtract the available data for the previous year from the number of workers for this year.

Step 6

Determine the size of the increase in production in the company by changing the value of labor productivity. To do this, calculate the average output per worker (labor productivity) and multiply by the number of workers.

Step 7

Calculate the size of the increase in the volume of production when the number of employees changes. In this case, the increase in the number of employees must be multiplied by the average output per employee (labor productivity). At the same time, it is simply impossible to achieve an increase in production volumes by increasing only quantitative factors, therefore it is necessary to follow the path of the best use of all those resources that are available at a given enterprise, that is, by intensifying production.

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