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Abstract

Contents

Introduction

The modern world dictates as the basis of economic policy an increase in the efficiency and quality of work of all parts of industrial production.

Activities and development in the conditions of developing market relations make it necessary for the enterprise to increase production efficiency, create competitive advantages through the introduction of effective forms of management and production management, the achievements of technology and science, etc. In practice, making a decision that aims to achieve the goal is an assessment of competing, different courses of action and the choice of one’s own option, which is more suitable for the organization’s goals, and this is not feasible if you do not know how to manage projects. With their help, the tactics and strategy of the enterprise are developed, plans and managerial decisions are proved, control is carried out, and reserves for increasing efficiency are identified, the results of the activity of the enterprise and its departments are evaluated.

Effective work of the enterprise is the goal of any team. The results of financial and economic activity depend on the efficient use of raw materials, labor, material, financial resources. Failures in sales and production, deterioration in product quality negatively affect the activities of the enterprise.

1. The purpose and objectives of the study, expected results

The aim of the study is the in-depth development of theoretical knowledge on project management to improve the efficiency of an industrial enterprise.

The main objectives of the study:

  1. Describe efficiency as an economic category;
  2. Summarize the classification of factors affecting the increase in the efficiency of the enterprise;
  3. To analyze ways to improve the efficiency of an industrial enterprise;
  4. Mastering the skills of independent work with special literature.

The object of research are processes aimed at improving the efficiency of an industrial enterprise.

The subject of the study is the theoretical aspects and methodological foundations in managing a project to improve the efficiency of an industrial enterprise.

2. The theoretical basis of production efficiency in the enterprise

To clarify the essence of economic efficiency, determine its criterion and indicators, it is necessary to distinguish between the contents of the concepts of efficiency and effect.

Effect – an absolute value indicating the achieved result of a process. The economic effect is the result of human labor that creates wealth [1].

Economic efficiency characterizes the effectiveness of all social production. From the point of view of the national economy, such a state will be considered effective in which the needs of all members of society with the given limited resources are most fully satisfied [2].

In general terms, efficiency (translated from Latin &ndash effective, productive, yielding results) characterizes the developed various systems, processes, phenomena.

Efficiency acts as an indicator of development. She is his most important incentive. In an effort to increase the effectiveness of a particular type of activity and their combination, specific measures are identified that contribute to the development process, and those that lead to regression are cut off [3].

Efficiency as a concept means productivity. As a category, it has two sides &ndash qualitative and quantitative. The qualitative side reflects its logical, theoretical content, that is, the essence of the category.

The quantitative side reveals the effect of the law of saving time, namely, it reflects the saving of time in achieving the goals of social production during the entire reproduction process and at its individual phases throughout the national economy, its individual regions, industries, and economic entities.

3. Classification of factors affecting the increase in production efficiency at the enterprise

The production efficiency at the enterprises has a multidimensional character. Knowledge of production factors, the ability to determine their influence on performance indicators allow you to influence the level of indicators through factor management, create a mechanism for finding reserves.

Factors in economic analysis that influence the increase in performance can be classified according to various criteria. So, factors can be general, i.e. affecting a number of indicators, or private, specific to this indicator. The generalizing nature of many factors is explained by the relationship and mutual conditionality that exist between the individual indicators [4].

Internal factors are distinguished, or controlled by the enterprise they are divided into main and non-basic, external, little controlled or even uncontrolled [5]. The main internal factors are those that theoretically determine the results of the enterprise. Non-core internal factors, although affecting general indicators, are not directly related to the essence of the indicator in question, for example, violations of economic and technological discipline. External factors do not depend on the activities of the enterprise, but quantitatively determine the level of use of production and financial resources of the enterprise (Fig. 1).

Factors affecting production efficiency at the enterprise

Figure 1 – Factors affecting production efficiency at the enterprise

The use of production and financial resources of the enterprise can be both extensive and intensive. Extensive use of resources and extensive development focus on the involvement of additional resources in the production. The intensification of the economy consists primarily in the fact that the results of production grow faster than the costs of it, so that by involving relatively less resources in production, greater results can be achieved. The basis for intensive development is scientific and technological progress. An analysis of the intensification of production requires the classification of factors of extensive and intensive development (Fig. 2).

Factors of production development at the enterprise (animation: 8 frames, 8 cycles of repetition, 83 kilobytes)

Figure 2 – Factors of production development at the enterprise (animation: 8 frames, 8 cycles of repetition, 83 kilobytes)

4. Ways to improve production efficiency at the enterprise

Ways to increase production efficiency is a set of specific measures to increase production efficiency in given areas [6].

The implementation of ways to increase the economic efficiency of production is interconnected with the saving of material, labor and financial resources. The rationality of the use of resources is determined by the following groups of factors:

In addition, ways to improve the efficiency of the enterprise include activities to better distribute and use the basic resources and funds of the organization. It is necessary to maximize the use of the production potential of the enterprise, to analyze the rhythm of production, the maximum load of equipment. The result of such actions will be an accelerated growth rate of finished products without additional investment and investment.

A special place in reducing the share of resource expenditures and raising the economic level of the entire organization is occupied by measures to improve the quality level of products manufactured for sale. The level of product quality is becoming a fundamental factor that requires close monitoring [8].

A significant impact on cost reduction is exerted by measures that are associated with improved use of working time: an increase in the level of qualification of workers; determination and preservation of the optimal number of employees; optimization of working conditions; motivation of highly productive labor; the use of progressive pay systems, etc. [9].

Increasing production efficiency is possible due to the rationalization of the use of fixed assets of the organization. Such use of fixed assets is reflected in the financial results of the enterprise due to: cost reduction; increase product quality; increase in output; increase in book value.

Conclusions

In a market economy, ensuring the effectiveness of management is the goal of any enterprise, since it is management efficiency that ensures the successful functioning and development of all organizational and economic links of its activities. But there is not a single enterprise that would not encounter a number of factors that to some extent affect the efficiency of enterprise management.

In this paper, we consider the main terms and concepts of efficiency, the classification of external and internal factors of production efficiency and indicate ways to improve production efficiency at the enterprise.

When writing this essay, the master's work is not yet completed. Final completion: June 2020. The full text of the work and materials on the topic can be obtained from the author or his leader after the specified date.

List of sources

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