What is the production capacity of the enterprise?
What is the production capacity of the enterprise? This concept includes the volume of the maximum probable output. At the same time it is necessary to observe certain conditions. Firstly, all manufactured goods must necessarily be of high quality. In addition, in the production process equipment must be fully involved.The calculation is made taking into account the introduced advanced technology and modern technology, with the highest level in the organization of all units, as well as other optimal conditions.
Varieties of indicators
The production capacity of the enterprise is measured in the same units as the volume of production. These include the value expression of output, semi-natural and natural units. In the process of the enterprise, the value of the production capacity indicator undergoes certain changes.This happens in connection with the introduction of new equipment and the cancellation of already worn out. Such actions lead to a change in the quantitative values of the volume of goods that are produced by the enterprise. There are only 3 types of power. All of them belong to the production. First of all, this is the input power. It is calculated on the beginning of the period for which the planning is carried out. There is power output. It is calculated at the end of the scheduled period. And finally, the third type - the average annual rate.
Calculation of production capacity
For proper planning of the enterprise’s work, it is imperative to determine the volume of products that will be released by them. The production capacity of the enterprise is directly dependent on the capacity of the leading divisions. These include those areas or workshops, which are entrusted with the task of performing the most massive, responsible and labor-intensive work. If we take the machine-building industry, then the leading divisions of its enterprises are assembly and machine shops. For metallurgy, these are open-hearth, blast furnaces and melting furnaces.
Conditions for calculation
When determining the volume of finished products, certain points must be taken into account:
1. The production capacity of the enterprise is calculated from the bottom up. This chain moves from homogeneous equipment to a specific production site. After grouping all the information, the calculation covers each workshop and ends with the whole enterprise.
2. When calculating the size of the production capacity of each unit, the standards for unit time and generation are taken into account. In this special formulas takes into account the entire range of products.
3. The volume of finished products is determined on the scheduled date. This is necessary due to the variability of the indicator when writing off or entering equipment, and also due to the need to apply new process conditions, etc.
4. Calculation for assembly shops is required not to be carried out using the equipment available in them, but according to their production area.
5. Preliminary determination of the volume of production should not take into account the loss of working time, which is caused by certain shortcomings in the technical and organizational support of the production process. Not taken into account and marriage.Only those unavoidable losses of time that are within the limits of the approved standard are subject to accounting.
In practice, there are situations where the production capacity of individual units differs from the capacity of the leading link. In this case, the discrepancies can be either up or down. In this situation, there are non-synchronized units of the enterprise.
In the case when the calculations indicate the excess of this indicator of one of the units over that of the leading level, certain measures should be taken immediately. The administration of the enterprise should either maximally load the available in excess of capacity, or agree that there will be backup equipment in this division. If the calculations made indicate a larger indicator of the production capacity of the main driving unit, then the problem of the so-called bottleneck arises. Then the manager must decide on the expansion of the problem unit. For this purpose, additional workplaces can be introduced, the equipment use time is extended, or one-time orders are transferred to the side.
The sequence of calculation
Determining the volume of output using the equipment available at the plant passes the following steps:
- the indicator of production capacity is calculated for the leading group of machines and equipment operating in the leading section;
- determined by the calculation of the capacity of the enterprise is analyzed to identify bottlenecks of the entire production complex;
- certain management decisions are made to eliminate problem areas;
- the newly appeared bottlenecks are installed;
- calculation of the production capacity;
- set the coefficients characterizing the use of the entire production capacity, both for individual units, and for the enterprise as a whole.
Production capacity indicators
The maximum possible volume of finished products is calculated under the condition of the best organization of labor and under ideal conditions of the technological process. In reality, this is impossible to achieve. That is why in fact the volume of output is always lower than that which corresponds to the calculated figure.To adjust the planning there is a need to determine the level of capacity utilization of the enterprise. In quantitative terms, this value is equal to the ratio of the actual annual production to the volume of output determined for the same period. The level obtained during the calculation, which shows the percentage of utilization of the entire production capacity, directly depends on internal and external factors that manifest themselves in relation to the technological process. The first of them are those that are directly related to the release of products (equipment modernization, operation mode, etc.). And external factors are the state of the market, the competitiveness of goods, the demand for them, etc.
Conditions for increasing output
In the market conditions, the most important factor in the growth of enterprise efficiency is an increase in the use of production capacity. However, this makes sense only when the entire volume of goods produced will be in customer demand. Otherwise, the company will overstock products.
If the market is developed well enough and the demand for products is high, then the production capacity can be used in the amount of eighty-eighty-five percent. If the necessary conditions are not met, then the amount of equipment involved in the process is able to fall to a coefficient of 0.3.
Parameter indicating the possibility of growth
The production potential of the enterprise is an indicator characterizing the ability of the enterprise to release goods. Some economists consider this concept similar to production capacity. However, there is no consensus on this issue. In individual works, the production potential is considered as a certain set of enterprise resources without taking into account technological processes. In another interpretation, this concept takes into account only those resources, the use of which contributes to the reproduction of material goods.