Analysis of production and sales
Questions: Challenges and sources of analysis of production and sales. Assessment of the dynamics of production and sales. Analysis of production nomenclature and assortment. Analysis of the influence of various factors on the volume of production. Analysis of the impact of structural changes in the volume of production. Analyzes the rhythm of work. Evaluation and analysis of competitiveness.
Task analysis and sources of production and sales
The main objectives of the analysis of production and sales:
- Assessment of the plan and dynamics of production and sales;
- Determination of the influence factors on the change in the value of these indicators;
- Identification of internal reserves to increase production and sales of products;
- Development of measures for the development of the identified reserves.
Sources Analysis: Business plan of the enterprise, its financial and statistical reporting, operational accounting, synthetic and analytical account of finished goods and its implementation.
The volume of production and sales figures are interdependent. With limited production capacity and an unlimited demand priority to production volume, which determines the volume of sales? But as market saturation and increased competition not production determines the volume of sales, but on the contrary, the potential sales is the basis for the development of the production program. The company should produce only those goods and to the extent that it can be realized.
Assessment of the dynamics of production and sales
The growth rate of production and sales volumes, improved product quality directly affect the amount of costs, profits and profitability of the enterprise. Therefore, the analysis of these indicators is important. The main objectives of the analysis: assessment of the plan and dynamics of production and sales; determination of the influence factors on the change in the value of these indicators; find internal reserves to increase production and sales of products; development of measures for the development of the identified reserves. The volume of production and sales can be expressed in natural, semi-natural, labor and cost gauges. Generalizing indicators of volume of the company prepared by the valuation, which use comparable or current prices. Sales volume is defined or shipment of products to customers, or to pay, revenue; can be expressed in comparable, planned and current prices. In a market economy, this figure is of paramount importance. On how the products are sold, any demand for it in the market depends on the volume of production.
Equally important for the evaluation of the production program and have the physical indicators of production and sales of products (pieces, meters, tons). They are used in the analysis of production and sales of products for certain types or groups of similar products. Conditionally physical indicators, as well as cost applied to the generalized characteristics of the volume of production, such as canneries used indicators such as the thousands of standard cans on the number of repair shops contingent repairs in the shoe industry conditional pair of shoes, calculated on the basis of their labor input coefficients.
Statutory labor costs are also used to assess the generalized production volumes - in cases where a lot of product in a production is not possible to use natural or semi-natural meters.
The analysis begins with a study of the dynamics of production and sales of products, the calculation of basic and chain growth and growth. If production growth outpaced sales of products, it indicates that the accumulated balance of unsold goods in warehouses and businesses are not paid by the buyer.
Evaluation of the implementation plan for the production and sale of products made by the appropriate procedure. If you plan to produce the finished product exceeded, and to implement the underfulfilled, it shows the growth of residual unsold products.
Operational analysis of the production and shipment of products is based on the calculation, which reflects the planned and actual information on the production and shipment of products in terms of volume and range of the day, cumulative from the beginning of the month, as well as the deviation from the plan.
Analysis of sales is closely linked with the analysis of the fulfillment of contractual obligations to supply products. Shortfall Plan on contracts for the company turns a decrease in revenue, profit, payment of penalties. In addition, in a competitive environment, the company may lose sales markets, which would entail a decline in production.
Short delivery products negatively affect not only the results of the enterprise, but also on the work of trade organizations, allied enterprises, transport organizations. In the analysis of product sales, special attention should be paid to the implementation of the commitments under government contracts, supplies and cooperating on export products.
In an analysis of production and sales is necessary to assess the risk of unclaimed goods, which may arise as a result of falling demand for it; it is determined by the potential for material and moral damage to the company caused by this cause. Every company needs to know the amount of loss, if any of the products will be unrealized. To avoid the consequences of lack of demand for products, it is necessary to examine the factors of its occurrence to find ways to avoid or minimize losses.
Analysis of production nomenclature and assortment
A great impact on the operating results has range (nomenclature) and the structure of production and sales. During the formation of the range and structure of production, the company must take into account, on the one hand, the demand for these types of products, and the other - the most efficient use of labor, raw materials, technical, technological, financial and other resources at its disposal. The system of formation of assortment includes: determining current and future needs of customers; assess the level of competitiveness of or planned to be produced; the study of the life cycle of products in the markets, to take timely measures to introduce new and improved products and withdrawal from the production program of obsolete and inefficient products; assessment of the cost-effectiveness and risk of changes in product mix.
General characteristic changes in product mix gives the ratio of the same name, the level of which is determined by the ratio of the volume of production credited to the implementation of the plan to the range, the planned (baseline) production output. In the implementation of the plan on assortment counts actual output of each type, but not more than planned. The magnitude of this coefficient can be judged on the changes in the assortment policy of the enterprise.
Analysis of the influence of various factors on the volume of production
After studying the dynamics and performance of the plan for the production and sale of products, it is necessary to identify factors change its volume. Calculation of the influence factors on the volume of sales made by comparing actual levels of factor indicators with the planned data and calculation of absolute and relative increases of each of them. To study the effect of these factors is analyzed balance of marketable products.
Particular attention is paid to the influence of the factors that determine the volume of production and sales. They can be grouped into three categories:
- Security of the company human resources and their effective use;
-Provide enterprise fixed assets and the effectiveness of their use;
- Availability of raw materials and production materials and efficiency of their use.
Sources reserves increased production and sales can be grouped as follows:
1) reserves growth in production;
2) the potential for reducing residual unsold products.
Reserves growth in production:
1.1. By improving the use of labor resources;
1.2. By improving the use of fixed assets;
1.3. By improving the use of raw materials.
Improving the utilization of labor resources:
1.1.1. Creation of new jobs;
1.1.2. Reducing loss of working time;
1.1.3. Increased productivity.
Improving the use of fixed assets:
1.2.1. Acquisition of additional machinery and equipment;
1.2.2. Fuller use of their working time fund;
1.2.3. Increasing the intensity of the use of machinery and equipment.
Improving the use of raw materials:
1.3.1. The additional purchase of raw materials;
1.3.2. Reducing excessive waste of raw materials;
1.3.3. Reduction consumption of raw materials per unit of output.
In determining reserves to increase sales of products must also take into account the above-plan remnants of finished goods in warehouses of the enterprise and shipped to customers. It should take into account the demand for a particular kind of product and the real possibility of its implementation, as well as the risk of unclaimed goods. To identify these reserves, a more detailed analysis of the use of labor resources, tools and objects of labor in the enterprise.
Analysis of the impact of structural changes in the volume of production
The increase in production (sales) for one species and a reduction in other types of products lead to a change in its structure, that is, the proportion of some products increases, and the other - is reduced. Changes in the structure of production have a significant impact on all economic indicators: production volume in the valuation, consumption of materials, cost of commodity products, profit margins. If you increase the proportion of more expensive products, the volume of its production in terms of value increases, and vice versa. The same thing happens with the profit margins by increasing the proportion of highly profitable and, consequently, with a decrease in the proportion of low-profit products. The calculation of the structure of production at the level of these indicators can be made of chain substitutions method that allows abstracting from all factors, except for the structure of production. You can also determine the effect of the structure of sales in the amount of revenue and other indicators of activity: labor intensity, material consumption, total cost, profit, profitability and other economic indicators that will enable an integrated, comprehensive product line and evaluate the effectiveness of the structural policy of the enterprise.
Analysis of the rhythm of work
Rhythm - a uniform production and shipment of products in accordance with the schedule in the volume and range provided by the plan. Rhythmic work is fundamental to timely production and sales. Unevenness worsens all economic indicators: reduced product quality; increases the amount of work in progress and finished goods in surplus balances in warehouses and as a result slows the turnover of capital; are not met by supply contracts, and the company pays fines for late shipment of products; untimely enters revenue, which is why there is a shortage of cash flow; Overspending payroll due to the fact that in the early months of pay for work stoppages, and in the end - for overtime work. All this leads to an increase in production costs, reduce the amount of profit deterioration of the financial situation of the company. To assess the rhythm of work using direct and indirect indicators. Direct indicators - a factor of rhythm, the coefficient of variation.
Indirect indicators of rhythm - is the presence of pay for overtime work, payment of downtime due to the fault of the enterprise, loss of marriage, payment of fines for failure and delayed shipment of production, and others. One of the most common indicators - the coefficient of rhythm - is determined by summing the actual share of output for each period, but no more than the planned level. The coefficient of variation is defined as the ratio of the standard deviations from the planned target for the planned production output. Causes of Arrhythmia - difficulties of sales, the lowest level of organization, technology and logistics of production, as well as planning and control. It also analyzes the rhythm of shipment and sales. In conclusion, developing specific activities to address the causes spasmodic work.
Evaluation and analysis of the competitiveness of products
Under the competitiveness understand the characteristics of products, which set it apart from competing products both in the extent to which specific public need and cost to its satisfaction. Assessment of the competitiveness of products is based on a study of customer needs and market requirements. Goods to satisfy the needs of the buyer, it must meet certain criteria: technical (product features, its scope and purpose); aesthetic (appearance); ergonomic (conformity to the properties of the human body); regulations (of conformity with current regulations and standards); economic (level of valuable goods, sales of his service, the amount of funds available to the consumer to meet this requirement).
To assess the competitiveness of products is necessary to compare the parameters of the analyzed products and competing products. In addition to the rating of competitiveness of products to determine the actual position of the product in a particular market can determine the market share controlled by this company. The higher the percentage, the higher the actual competitiveness of the goods of the company in this market. For the same purpose, and this figure is calculated as the ratio of the share occupied by the market to the share of largest competitor. If the ratio is greater than one, then the share of firms considered high, if less - low. An important way to improve the competitiveness of products - improving the organization of trade, service customers, advertising products, which are powerful tools to stimulate demand.
Questions for self-control
1. What are the main problems of the analysis of production and sales?
2. What is the significance analysis of production and sales?
3. What are the sources of the analysis of production and sales?
4. How is the analysis of the dynamics of production and sales?
5. What is the value of the analysis of production on the range and range?
6. What factors affect the volume of production and sales?
7. What is the impact on the financial results of the structural changes in the volume of production?
8. What is the analysis of the rhythm of the enterprise?
9. What is the value of the analysis of competitiveness of production?