Economic efficiency is an important characteristic of production

Getting the most profit while maximizing the use of available resources and minimizing costs characterize the economic efficiency of production. This economic indicator characterizes labor productivity and the usefulness of the use of raw materials, materials and production capacities.

Today in the world, the indicator of economic efficiency is expressed in various forms. At the production level, this indicator is defined as the profitability of production, and at the state level it is expressed as national production results per unit of time or work unit.

The characteristic of economic efficiency is a comparison of production results with production costs. Production efficiency is subdivided into several types according to its characteristics: by its consequences - environmental, social and economic; at the place of effect - local (cost accounting) and national economic; by frequency - one-time and animated. The combination of these types reflects the efficiency of production in a single enterprise.

Required costs

To obtain the economic effect, there are necessary costs, which are divided into two groups. Current costs associated with the purchase of raw materials for production, energy costs, payroll and product sales. One-time costs involve investments in the development of working capital, which subsequently serve to update the fixed assets of the organization, to introduce innovative production technologies, capital construction, lending, and the development of new activities.

Improving production efficiency: factors

In the analysis of the effectiveness of the organization should take into account factors that could increase production efficiency. These factors can be divided into vector directions.

The first vector is an increase in the effective use of resources available in production. The second is the stimulation of workers in order to increase the percentage of labor productivity. The third vector is the maximum mobilization of the internal resources of the enterprise. And the fourth is the constant monitoring and analysis of the above factors affecting the efficient operation of the enterprise.