Advice 1: How to calculate the shift factor

For analysis of the major funds on the balance sheet are calculated indicators of efficiency of their use. One of them is the shift factor. This indicator shows the number of shifts worked each piece of equipment for a certain period of time.
How to calculate the shift factor
You will need
  • The formula for calculation of the shift factor of the equipment:
  • KSM = CHS / N
  • where CHS is actually worked the number of machines (mechanical shift) per day;
  • N is the total number of cash machines (cars).
Count actually worked the number of machines per day. Consider the following example of calculation. Let's say your shop is 10 units. Work is being done in three shifts per day (each shift 8 hours). The first shift worked 8 units of equipment in the second shift - 9 units, third shift - 10 units. Fold three numbers (8+9+10)=27. This number indicates how many units of equipment have worked in your shop in all shifts for the day.
Calculate the ratio shift according to the above formula. Divide actually worked the number of machines per day the total number of machines in the shop. In our example this is 10 pieces of equipment. So, dividing the number 27 for 10 get ratio shift, is 2.7. Maximum coefficient of utilization of equipment in three-shift chart is equal to 3. In our example, the equipment is not fully loaded, the unused reserves of the plant was 30% (i.e., 3 - 2,7 = 0,3*100%=30%). Similarly, the calculated ratios of the shift of equipment in an average month for the year.
Analyze the results by calculating the coefficient ofs shift for various periods. Review the trend in the change factor. Its increase testifies to more complete use of production equipment without additional capital investments. If the ratio shift has tended to decline, look for the reasons of incomplete loading machines, take measures to eliminate these causes, consider the possibility of a more full use of the equipment of your company.
Useful advice
To improve the efficiency of the production equipment needed to improve the level of organization of workers, increase their specialization and, of course, to prevent downtime of machines.

Advice 2: How to calculate performance indicators

The efficiency of the company is among the most important economic criteria. In the most General form it can be represented as a ratio of expenses necessary for production and the result obtained in the course of its implementation.
How to calculate performance indicators
The most common indicator of the efficiency of production is the labor productivity which is defined as the ratio of total revenue to number of workers employed in manufacturing. The growth of labor productivity with the same number of employees indicates increasing the efficiency of use of labour resources. The reciprocal of this indicator is the complexity. It shows how much human labor is used for production of a particular product.
Another indicator of the effectiveness of production – consumption. It is calculated as the ratio of production costs (raw materials, materials, fuel, etc.) to value added products. This ratio shows how many material resources it took to produce one monetary unit of earnings. Indicator, reverse this – materialattach reflects the volume of production per rouble of material costs.
Similarly is calculated as the coefficient of efficiency of production – capital ratio and a reverse – return on assets. Unlike the previous indicator, it reflects the efficiency of fixed assets.
Capital intensity is calculated as the ratio invested in the production of capital to the value of the output. It shows the costs of the investment necessary to produce one unit of output.
In addition to indicators of the efficiency of production are the profitability ratios. The total ROI is calculated as the ratio of profit of enterprise to the cost of fixed and current assets. Profit margin is determined by dividing the profit for the cost of goods manufactured, and return on equity on the equity value of the firm.
Is the advice useful?