How to determine product growth
Video: How to Measure and Prioritize Growth by Intercom Sr PM 2024, July
The increase in production at the enterprise represents an increase in such an economic indicator as the number of manufactured goods in relation to their base value and initial value.
Instruction manual
1
Determine the increase in production in the company by increasing the rate of labor productivity. At the same time, a number of key factors that are divided into extensive (quantitative) and intensive, that is, qualitative growth factors that characterize the degree of application of quantitative factors, have a simultaneous and direct effect on the change in the volume of production.
2
Calculate the amount of extensive factors. To do this, add the following indicators: the number of employees, the cost of fixed assets, the cost of material resources and capital costs.
3
Calculate the sum of the intensive factors. To do this, add up the necessary available indicators: labor productivity, capital productivity, material consumption and capital intensity.
4
Calculate the rate of increase in production. For example, the following data are available: the volume of production for 2010 is 100 thousand rubles, and for 2011 - 150 thousand rubles. In this case, it is necessary to calculate the total change in production volumes: 150-100 = 50.
5
Find the change, the increase in the number of employees. To do this, also subtract the available data from the previous year for the number of workers for this year.
6
Determine the size of the growth of production in the company by changing the value of labor productivity. To do this, calculate the average output per employee (labor productivity) and multiply by the number of employees.
7
Calculate the size of the growth in output when the number of employees changes. In this case, the increase in the number of employees should be multiplied by the average output per employee (labor productivity). At the same time, it is simply impossible to achieve growth in production volumes by increasing only quantitative factors; therefore, it is necessary to go through the best use of all the resources that are available at a given enterprise, that is, through intensification of production.
