How to calculate the efficiency of use. Economic efficiency of the organization: concept and assessment
Overall Equipment Effectiveness (OEE) is beautiful way calculation of the efficiency of the production process and the use of equipment. But how to calculate correctly? And is there an ideal OEE?
Overall Equipment Efficiency (OEE) calculations help you see how efficiently you are using your equipment, as well as identify the six most significant and common sources of efficiency loss that Lean aims to eliminate.
The six most significant causes of efficiency loss are:
1. Stops - unscheduled tool changes and unscheduled maintenance, general stops, failure of auxiliary equipment, etc.
2. Setup or adjustment - changeovers, scheduled tool changes, downtime due to lack of materials or operators, time to start equipment, etc.
3. Minor Stops/Downtimes - Usually these are stops up to 5 minutes that do not require intervention support staff. They can occur due to minor problems, interruptions in the delivery of materials, cleaning / checking.
4. Decreased performance - these are any problems that reduce the speed of the equipment in comparison with the nameplate (equipment wear, power reduction, increase in boot time)
5. Scrap at start-up - a scrap produced during the start-up, warm-up or other initial stages equipment operation.
6. Manufacturing defect - a defect obtained in the process of production.
All these 6 reasons affect the value of the indicators used to calculate OEE.
Standard formula OEE = %A x %T x %Q, where
- %A (Availability) Availability is the ratio of the equipment's available working time to the total working time. The value of this indicator is influenced by stopping and setting / adjusting equipment, i.e. 1 and 2 reasons for the loss of efficiency.
- %T (Throughput) Throughput is the ratio of actual uptime to net operating time. Here, 3 and 4 reasons play a significant role: small downtime and reduced productivity.
- %Q (Quality) Quality is the ratio of quality products to the total quantity of products. This indicator depends on the last two reasons: efficiency loss: start-up defects and manufacturing defects.
When using this method, in addition to the OEE value itself, you can also get information about in which direction you should improve the operation of the equipment. For example, if you got the values A = 64%, T = 95%, Q=90%, then in addition to the OEE value of 55%, you can also conclude that the main efforts should be focused on improving the availability of equipment. In this case, it is worthwhile to carefully work on unscheduled stops and stops associated with setting up and adjusting equipment.
The second method of calculating OEE, also known as the throughput factor method, is very convenient for estimating overall process or lines.
OEE = (AT)/(TPR x SOT) where
- AT (Actual Throughput) Actual throughput is the amount of quality output
- TPR (Theoretical Processing Rate) The theoretical processing rate is the processing speed at the system bottleneck under ideal conditions
- SOT (Scheduled Operating Time) scheduled production time is the amount of time scheduled by the system (including production and maintenance)
But in order to use OEE as the main indicator production activities to make the most of it, make sure you don't make the mistakes below:
- Not using the ideal machine speed or processing time. Do not underestimate the bar using the average speed of the equipment. You run the risk of not seeing the impact of the top six reasons for loss of efficiency in your production.
- Do not take into account changeover time. Changeover is not production, but production increases throughput, which, in fact, is our main goal. This means that every minute spent on changeover is a minute stolen from throughput.
- Do not define the bottleneck of the line. The second formula for calculating OEE only works if you know the location of the bottleneck on production line, i.e. section (operation, step) with a minimum throughput. It is this place that sets the pace for the entire line, so its importance cannot be underestimated.
- Focus on the OEE number, not on the underlying issues. Very often, while doing the calculation of performance indicators, we forget that the goal is not the calculation of numbers itself, but the implementation of corrective measures.
Speaking of the meaning of OEE. There is no ideal OEE figure to reach. More importantly, take necessary measures to improve performance and see how the result of the formula OEE = %A x %T x %Q changes for the better.
The creation of a formula for calculating economic efficiency could greatly facilitate the life of enterprises. In order to increase profits, every company is trying to improve the quality of products and increase their income or invest money in manufacturing process in order to reduce costs.
Types of efficiency
Efficiency falls into two categories. The first is economic. The second is socio-economic.
With economic efficiency, the criterion is the company's ability to maximize its profits. The criterion of socio-economic efficiency is the level of satisfaction of the interests and needs of the population.
Classic efficiency calculation
The general formula for calculating economic efficiency is as follows:
EkEf \u003d R / Z, where
ЕкЕф - economic efficiency;
Р - the result received from investment;
Z - the costs incurred to achieve the result.
This formula can be used to calculate the cost-effectiveness of activities whose duration is designed for a short period of time. In another case, this indicator is not able to reflect the feasibility of investments, since additional variables appear in the formula that are not included in the above formula.
Absolute Efficiency
There is also a formula that displays the absolute efficiency. It looks like this:
EE abs \u003d (Eph 1 - Eph 0) / (I + K * K n), where
ITS abs - economic efficiency;
Ef 1 - the overall result after the events;
Eph 0 - the result before the events;
I - total costs;
K - capital investments for holding events;
Regulatory coefficient
This index shows what the minimum allowable efficiency in a particular area can be. The parameter is the same for all types of activities in a particular industry, but may differ depending on the area.
The value of the coefficient is in the range from 10 to 33 percent. In trade, this figure is 25%, in the industrial sector - 16%.
Efficiency in the use of factors of production
Any enterprise has labor resources, fixed and working capital. Without them, the production process is unrealistic. Companies are also trying to improve their investment performance to improve performance.
To calculate the effectiveness of the use of each of these factors, their own methods are used. Some of them are based on the same principles.
Staff efficiency
In order to measure how effectively an enterprise uses its workers, two parameters are used. The first is production. The second indicator is labor intensity. The output is calculated as the ratio of the number of goods produced to the cost of personnel:
B = O / Z, where
B - production;
The labor intensity indicator is the reverse of the previous indicator and displays how many Money it is necessary to spend on the personnel of the enterprise so that one unit of production is manufactured.
T \u003d W / O \u003d B -1 \u003d 1 / B, where
T - labor intensity;
B - production;
O - the volume of products manufactured at the enterprise;
Z - the costs incurred by the enterprise for labor resources.
Formula for calculating economic efficiency for labor resources companies can be displayed as follows:
EE tr \u003d ((O 1 * C - Z 1) - (O 0 * C - Z 0)) / And, where
ITS tr - economic efficiency for labor resources;
О 1 - the volume of manufactured products after investment in personnel;
C - the price of products;
О 0 - the volume of product sales before investment in labor resources;
Fixed assets (PF)
There are two main parameters for calculating the efficiency of using fixed assets: capital productivity and capital intensity. The return on assets is calculated as the ratio of the value of all products that were produced by the enterprise within one year to the average annual value of funds.
F o \u003d VP / C this year, where
VP - all products of the company in monetary terms (including the cost of semi-finished products and work in progress);
F o - return on assets;
Since this year - the cost of the OF in the calculation for 1 year on average.
The index of capital intensity is the inverse of the return on fixed assets. You can determine the value of the coefficient using several formulas.
F e \u003d (F o) -1 \u003d 1 / F o, where
F e - capital intensity;
F o - return on assets.
In the event that the return on fixed assets (OS) is not found, capital intensity can be determined as follows:
F e \u003d (S.g. / VP), where
F e - capital intensity;
VP - the value of gross output in monetary terms;
Since this year - the average annual cost of fixed assets.
All companies are trying to reduce capital intensity and increase capital productivity. An example formula for calculating the economic efficiency of investments in fixed assets is presented below:
EE of \u003d ((O 1 * C 1 - Z 1) - (O 0 * C 0 - Z 0)) / And, where
ITS of - economic efficiency for fixed assets;
О 1 - the volume of manufactured products after investment in OF;
C 1 - the price of products after investment;
P 2 - the price of products before investing in fixed assets;
Z 1 - the cost of production after the events;
О 0 - sales volume before investments in fixed assets;
Z 0 - the cost of production before the events.
Working capital (Ob. C.)
To determine the effectiveness of the use of working capital of the enterprise, three indicators are used:
- turnover ratio;
- turnover period;
- load factor FROM.
Turnover ratio C. Is the same as the return on assets for the OS. It is calculated according to the formula:
K about \u003d RP / C obs, where
K about - turnover ratio;
The workload ratio is the inverse of the turnover ratio:
K s \u003d (K about) -1 \u003d 1 / K about \u003d C obs / RP, where
K s - load factor;
K about - turnover ratio;
RP - implemented by the company goods in monetary terms;
C obs - the average amount of the balance Obs. FROM.
The turnover period is the number of days it takes to working capital made one complete revolution, is calculated as follows:
T about \u003d D / K about \u003d D * C obs / RP, where
T about - turnover time;
D - the number of days of the analyzed period;
K about - turnover ratio;
RP - goods sold by the company in monetary terms;
C obs - the average amount of the balance Obs. FROM.
The formula for improving the use of working capital is based not so much on additional profit, but on cost reduction.
EE obs \u003d E y / I, where
ITS obs - economic efficiency of working capital;
E y - conditional savings of working capital;
And - the size of investments.
Economical effect
Cost-effectiveness formulas have found widespread use among companies that make short-term cash injections to improve certain aspects of their operations. The formula for its calculation is as follows:
Eph \u003d D - I * K, where
Ef - economic effect;
D - income or savings from events;
I - the cost of events;
K n - normative coefficient.
Advertising effectiveness
Advertising is a combination marketing tools, the purpose of which is to disseminate information about goods, services, people, companies, as well as to attract customers. The formula for calculating the economic efficiency of advertising displays the result obtained after the advertising campaign. The formula for determining the coefficient looks like this:
EE p \u003d (VD 1 - VD 0) / And, where
When calculating the effectiveness of the use advertising media it is very difficult to determine how much the gross income of the enterprise has grown precisely because of advertising. There is no guarantee that the company's revenue would not have increased if the company had not advertised itself or its product. Despite this, the cost-effectiveness of advertising is still considered.
Economic efficiency of the company
The main indicator in the work of the company is net profit, the part of the proceeds that remains after all costs are deducted and all taxes paid. There is no point in increasing revenues if costs increase at the same or even greater rate.
Thus, the classical calculation of economic efficiency cannot always show how the proposed measures will eventually affect the final result. This is due to the fact that it is calculated as the ratio of the result to the costs only to achieve it. In cases where the result is gross income, the economic efficiency indicator is not accurate, as it does not take into account the possible increase in production costs.
The formula for calculating the economic efficiency of an enterprise can be expressed as follows:
ITS n \u003d (PE 1 - PE 0) / And, where
EE n - economic efficiency of the enterprise;
PE 1 - net profit after investment;
BH 0 - net profit before investment.
Long-term investment project
All of the above methods of calculating efficiency can only be used for short-term activities (up to one year). AT long term the calculation formula does not take into account discount factors that make it possible to calculate the feasibility of holding, taking into account alternative incomes.
As such, there is no formula for calculating the economic efficiency of a project that is designed for a long period of time. The feasibility of an investment is calculated on the basis of the net present value, as well as the payback period, which reflects how much time is needed in order to investment project paid off in full and began to make a profit.
Net is calculated as the sum of all payments and income from the investment, taking into account discount factors for each period. The NTS formula can be represented as follows:
PTS = (CF / (1 + p) 1) + (CF / (1 + p) 2) + (CF / (1 + p) 3) + ... + (CF / (1 + p) n), where
NPV - net present value;
CF - payment flow (difference between income and expenses);
p - calculation percentage;
n - the term of the investment project.
This parameter shows how efficiently the investment funds are used. If the NPV is higher or equal to zero, this means that it is expedient to carry out an investment project. In the case where the net present value is shown to be negative, the internal interest calculation should be done to see how much the money has paid off.
How to determine the main indicators of economic efficiency? What methods of calculation of indicators can be used? Let's talk about it in the article.
You will learn:
- What is the essence of the economic efficiency of the enterprise, why should it be calculated.
- What indicators for evaluating economic efficiency are known.
- What formulas can be used to calculate economic efficiency indicators commercial activities.
- What are the methods for calculating economic efficiency indicators.
What is the essence of the calculation of economic efficiency
The economic efficiency of an enterprise is the overall performance of its commercial activities, which is expressed in the ratio of the product obtained and the resources expended. To obtain the coefficient of economic efficiency, it is necessary to correlate the indicators of profitability of the enterprise and the total cost of the resources used. Business project will be effective if the first indicator exceeds the second component.
Indicators for calculating the economic efficiency of an enterprise
The system of indicators of overall economic efficiency includes estimated indicators and indicators for the types of resources used. The key performance indicator of an organization is always profit. The estimated indicators also include the following indicators: product profitability, profitability production assets, relative economy fixed and working capital.
These indicators are needed for the development and implementation of new equipment, solutions production issues, including the use of interchangeable materials and products, as well as in the design of construction and reconstruction, the preparation of business plans, the choice of schemes for organizing production in technological and scientific activities.
How are benchmarks determined? To do this, as the value of the economic effect, the savings obtained from the reduction production cost, and as costs - additional capital investments that caused these savings.
Comparative economic efficiency is determined by choosing one of two or more options for solving a particular commercial or economic problem. Thus, you get a characterization of the advantages of one option compared to others.
When comparing two options, a different ratio of the necessary capital investments and the cost of production. The option that needs less capital investment, while providing the most low cost products are considered economically viable.
When comparing options, it is necessary to use the reduced costs calculated for each of them. The given costs for each option are the sum of capital investments and current costs (cost), reduced to a single dimension in accordance with the efficiency standard.
It is also important to understand that the selection economic indicators due to the goals of the functioning of the system under study. For example, when establishing indicators of the comparative economic efficiency of an enterprise in the field of animal husbandry, it is necessary to focus on the growth in production volume, the growth of labor productivity, the payback of the feed used and other costs. Based on this, the following system of indicators can be established: gross output and marketable products per animal, labor productivity, feed payment and cost recovery.
Economic efficiency: calculation formula
The general formula for calculating efficiency is as follows:
E \u003d R / Z, where:
R– production results;
Z- the cost of obtaining this result.
It is rather difficult to apply such an efficiency formula in practice, since the numerator and denominator of a fraction in most cases cannot be quantified and cannot be calculated in common units. In most cases, the results of the commercial activities of the enterprise are diverse and it is impossible to combine them into a common result. In some cases, the result is not expressed in numerical form at all, and can only be qualitative.
Efficiency can be determined in 2 ways:
- As the ratio of the result of production to the cost of its implementation.
- As the ratio of the result of what was produced to what had to be abandoned when choosing an alternative.
How to calculate economic efficiency indicators
You can consider the features of the calculation of the main indicators of the economic efficiency of the enterprise. For example, these include profitability, cost, financial condition and financial and resource management.
Profitability indicators show the ratio of profit to costs, investments, investment costs, that is, they characterize the share of profit per unit of invested costs:
- profitability of products (services) R pr i , i.e. the ratio of the profit of the product (P i) to the cost (С i) of the manufactured unit of production,%:
This indicator is used to identify the most cost-effective products;
- economic profitability of the company's assets (Rf), i.e. the ratio of the annual profit (P year) to the assets of the enterprise (K act) or the sum of the main (K main) and working (K turnover) capital,%:
Level Rf demonstrates the efficiency of the enterprise (use of assets), i.e. shows the share of profit attributable to 1 dollar of assets. P year includes book profit(P ball) plus interest on the loan attributable to cost.
- profitability equity companies (R sc), i.e. the ratio of the company's net annual profit (after taxation) to the equity capital at the end of the reporting period (K int), %:
- return on capital employed (R uk, %) shows the efficiency of both equity and borrowed capital (credits, loans, loans) of the company and is calculated by the formula:
The balance sheet of the company at the beginning and end of each reporting period reflects the cost data on fixed assets - the initial cost, the amount of depreciation ( depreciation), residual value.
During the year, there is a movement of fixed assets, so their availability in accounting is shown monthly. The cost of fixed assets at the end of the period (K of.k) is determined according to the balance sheet:
To off.nach - the cost of fixed assets at the beginning of the period;
To of.p - the cost of acquired fixed assets;
To of.v - the cost of retired fixed assets.
The cost of the purchased equipment includes: the purchase price, transportation costs, insurance, assembly, installation, adjustment.
To assess the level of use of fixed assets, it is necessary to have information on the average annual cost of fixed assets (K cf.).
To office nach - the value of fixed assets at the beginning of the year;
To office k - the value of fixed assets at the end of the year.
How to learn to manage expenses: case
The manager needs to be able to manage the budget of his company. The editors of the magazine "Commercial Director" made up detailed algorithm in order to learn how to competently manage costs and extract the maximum benefit at the lowest cost.
Methods for calculating economic efficiency indicators
After we have decided on the systems of the main indicators of economic efficiency, we need to work out the methods of calculation.
Absolute criteria will help analyze the main dynamics of various profit indicators for a certain number of years:
- economic;
- accounting;
- received from sales;
- calculated in its purest form.
Such indicators are more related to arithmetic calculation than to economic. The figures will be obtained in their pure form without taking into account inflationary processes. At the same time, relative indicators will have certain advantages in terms of the fact that they are not subject to inflation.
The calculation of economic efficiency indicators is the volume of products manufactured, work performed or services rendered. They are the basis for meeting all needs, for improving the material condition.
Economic efficiency indicators include:
- The payback of the main costs is the ratio of the volume of gross output to the total cost of living and materialized labor, which is a generalized indicator.
- Profit is the realized part of income in its pure form. The concepts of conducted costs also imply different concepts of making a profit. In the area of economics the term profit refers to a meaning that differs from the definition in the accounting reports.
- Receiving net profit. Includes all net income and payroll. This is the main source of consumption and certain accumulation. In most enterprises, such indicators can only be determined by calculation. Therefore, the obtained "clean" products do not always reflect the actual level of efficiency and the dynamics of production development with maximum accuracy.
In any form of management, enterprises play an important role in the economy of the state. From a macroeconomic point of view, enterprises are the basis for:
increase in national income, gross domestic product, gross national product;
the possibility of the existence of the entire state and the performance of its functions. This is due to the fact that a significant part state budget is formed at the expense of taxes and fees from enterprises;
ensuring the defense capability of the state;
simple and extended reproduction;
development of national science and acceleration of scientific and technological progress;
improving the material well-being of the citizens of the country;
development of medicine, education and culture;
solving the problem of employment and many other social problems.
Enterprises will fulfill this role only if they function effectively.
The efficiency of the enterprise finds a specific quantitative expression in an interconnected system of indicators that characterize the efficiency of the use of the main elements of the production process. The system of indicators of economic efficiency of the enterprise should comply with the following principles:
ensure the interconnection of the criterion and the system of specific indicators of production efficiency;
determine the level of efficiency in the use of all types of resources used in the production;
provide measurement of production efficiency on different levels management;
stimulate the mobilization of intra-production reserves for increasing the efficiency of production.
Taking into account these principles, the following system of production efficiency indicators can be determined (see Table 1.1).
Table 1.1 - Production efficiency indicators
|
Index |
Unit of measurement | ||||||||||||
|
Overall profitability |
net profit: assets x 100% |
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|
Estimated profitability |
sales profit: cost x 100% |
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|
Profitability of sales |
sales profit: revenue x 100% |
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|
return on assets |
revenue: fixed assets |
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|
capital intensity |
fixed assets: revenue |
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|
Profitability of fixed assets |
net income: fixed assets |
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|
Capital intensity of a unit of production |
fixed assets: production volume in units |
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|
Working capital turnover ratio |
revenue: working capital |
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|
The duration of one turnover of working capital |
366 days: turnover ratio |
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Return on working capital |
net income: working capital |
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|
Material consumption of a unit of production |
costs of raw materials and materials: production volume in units |
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|
Working out |
thousand rubles/person |
revenue: average headcount personnel |
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|
Labor intensity |
person hour/unit |
the total fund of working time: the volume of production in units |
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|
Salary intensity of products |
total wage fund: the volume of production in units |
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|
The level of costs per 1 ruble of marketable products |
Before choosing the best organization option economic activity, it is necessary to determine the criteria for evaluating economic efficiency indicators. How to do this, we will tell in this material. You will learn:
Economic efficiency indicators- the main instruments for the implementation of economic strategies at all levels of economic activity (from a particular enterprise to the national economy). Economic efficiency performs a number of tasks:
Each economic entity, be it a state or an individual, is interested in obtaining the maximum possible benefits from the available resources. At the same time, each participant in the production or consumption of these goods seeks to maximize their benefits and minimize costs. That is, to act most efficiently and rationally. Economic efficiency assessmentThe same criterion for any economic activities (innovation, investment, improvement social sphere and management) is:
Criteria for evaluating economic efficiency are divided into types:
Absolute - characterize the magnitude of the effect. They are obtained by subtracting from valuations the results of the economic event of all costs associated with its implementation. These include the cost of funds and objects of labor, labor and other resources spent in the billing period. They are necessary to evaluate and analyze the effectiveness and overall economic results obtained in dynamics and for a certain a period of time at the micro and macro levels of the economy, as well as to compare across regions and enterprises. For example, if the absolute indicator of economic efficiency is the profitability of farming, then the relative indicator is the effectiveness of economic activities in comparison with various factors. When measured, profit can be calculated using the formula: Pr \u003d P O - S P, where: ON- the volume of products (produced, sold) for a specific period; S P- its cost. The calculation of relative indicators is carried out by dividing the cost estimates of economic results by the total resource costs associated with their receipt: E O \u003d E E / Z C, where: E E– the value of the achieved economic effect; W S- the cost of obtaining it.
Economic effect and efficiencyEfficiency economic system determined by many factors:
One of the ways in which the performance of an economy is assessed is through social production, indicating not the growth rate of the volume of the production product, but the resource costs of achieving it. Indicators of economic efficiency of production most fully characterize the economic activity of the state and the individual. When determining them, the effectiveness of the entire state economy, each individual industry, territorial entity, foreign trade, the work of enterprises and each employee. They also determine how effective the process of creating value as a whole and its individual phases, such as distribution, exchange and level of consumption. Methods for calculating economic efficiency indicatorsFormula EE = Result / Cost- is basic. Therefore, when measuring the effectiveness of each factor of various business entities, the indicators of economic efficiency include:
To measure the economic efficiency of production, such direct and inverse indicators are used, such as:
The most common indicator of economic efficiency is the ratio of the effect obtained from economic activity (national income or GDP) and the total costs to achieve it. In macroeconomics, when determining efficiency, 2 indicators are used:
Due to the huge variety of factors affecting the final results, it is impossible to assess how effective this or that activity is, taking into account any one indicator. Therefore, in practical calculations, a system of interrelated indicators (both absolute and relative) is always used. Thanks to this, all important aspects of the functioning of an economic entity are assessed. System of indicators of economic efficiency of productionAccording to the degree of filling, with which the results and costs are taken into account, the relative indicators characterizing economic efficiency are conditionally divided into 3 groups:
In the first case, one or more types of effects and a number of resource costs are measured, which characterize how economically efficient enterprises, territorial entities, and national economies work as a whole. These figures serve as the basis for decision making aimed at change at any level of the economy. In this group, the main indicators of the economic efficiency of the economy will be:
For individual elements of production and economic activity, private indicators are used. They provide an opportunity to show the validity of the decision to improve the selected elements. Thus, general indicators are the goal, and private indicators are a tool for performing calculations and analyzing efficiency. In the table, some examples of two groups of indicators are given.
When choosing indicators for assessing economic efficiency, one should be guided by the following requirements:
But first you need to solve 2 questions:
Methods for optimizing economic efficiency indicatorsIt is impossible to demand that the indicators of the economic efficiency of an enterprise and the national economy completely coincide, just as it is impossible to assess the level of the national economy as a whole by simply summing up its parts. Therefore, when choosing the optimal method for calculating efficiency, it is necessary to take into account the following significant points:
With all the variety of categories and types of economic decisions, practically only 2 fundamentally different optimization methods are implied:
There is also a combined efficiency improvement model that combines the main criteria of the first two options and additionally takes into account other optimization criteria (including natural ones): specifications, effect speed, cash turnover and possible alternatives, area (industry) of activity, similar estimates from competitors, average industry values. This situation is reflected by the following algorithm: EN / WN → max, where N– number of the management decision option under consideration. ConclusionThe choice of method is determined by each leader independently, taking into account the goals, potential capabilities of the enterprise and the market situation. As a rule, if the economy is growing and consumer demand is increasing, it will be appropriate to use the first method, and when there is a decline in production, the second. However, with the duration of the crisis, it is more rational to deal with marketing to boost sales, change profile or reorganize the enterprise. And it's important to always stick to a 100% usage strategy. own resources, even if their purpose changes. | ||||||||||||