How To Analyze Production

Table of contents:

How To Analyze Production
How To Analyze Production

Video: How To Analyze Production

Video: How To Analyze Production
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Analysis of production allows you to fully assess its effectiveness. The study of the main parameters of the enterprise should be carried out not from case to case, but periodically, in accordance with the plan. Based on the results of the analysis, a decision is usually made to amend the production management structure.

How to analyze production
How to analyze production

Instructions

Step 1

Analyze your products. Estimate the volume of goods and services produced. Highlight the size of the products sold in a separate line. Count the number of unsold finished goods stored in warehouses.

Step 2

When calculating, use a comparison of the indicators of products released into circulation with the same parameters relating to the previous period. In doing so, be sure to take into account the duration of a specific production cycle, and not the calendar measurement of time.

Step 3

Calculate the indicator of the company's internal turnover. If between the structural divisions of the enterprise there is no transfer of products that are at the stage of manufacturing and processing, the turnover should be equal to one.

Step 4

Take into account when calculating the indicator of the share of production, expressed in the value of gross production (the so-called marketability ratio). If there is work in progress, the coefficient will also be equal to one. Otherwise, there are product balances at the end of the analyzed period.

Step 5

Conduct a product composition study using availability factor. If there is a tendency towards a decrease in the indicator over the past several periods, it can be concluded that the share of semi-finished products in the total volume of marketable products is increasing. This state of affairs may require a change in the structure of production.

Step 6

At the last stage, analyze the planned values of the cost of commercial products. Include production cost items in the analysis, including the salaries of production workers; material costs; fare; expenses for carrying out current and major repairs. Compare the amount of planned production costs with the actual costs.

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