Resource management of any enterprise is a prerequisite for the effective functioning of all systems. Cost reduction leads to lower production costs. One of the main indicators of the analysis is the complexity, the formula of which will reflect the picture of the state of affairs in this production system. Based on the data obtained with its help, the financial service will be able to identify factors constraining development and eliminate them in the future. Therefore, how to calculate the formula for the complexity, it is necessary to consider in more detail.
The value of the labor intensity indicator
The complexity, the formula of which will be discussed in detail below, makes it possible for a financial analyst to conclude on the ratio of the costs of production resources and time. This is an indicator that discloses information about how much time it took the company to produce a unit of production.
When planning this indicator makes it possible to find the maximum permissible level of performance in specific conditions. This leads to a more efficient organization of the company.
The labor intensity formula makes it possible to evaluate the result of work of a labor collective for a certain period of time. It will also be quite easy to identify how much work a single worker was able to perform during this period.
There are several approaches to assessing the complexity. They depend on the composition of the costs included in it. It happens complete, technological, serving or managing production, and also production.
Indicator advantage
The complexity, the calculation formula of which relates to indicators of labor productivity, is calculated with the rate of output. But the first has several advantages. He is able to identify the pattern between labor costs and the volume of finished products.
Considering the example of calculating labor intensity using the generally accepted formula, you can find ways and reserves to increase the level of labor productivity. The study of the structure of production is one of the informative approaches to studying the efficiency of labor use by a company.
Having determined the value of the indicator in different workshops or sections, the analyst can determine where resources are used more rationally and where there are unfavorable trends for the company.
The complexity excludes the impact of changes in the volume of supply for the structural organization of production.
If the nomenclature is too large, then representative products are selected from the total mass of goods. They, as a rule, have a significant share in the total output.
Calculation formula
The formula of labor intensity per unit of output of the enterprise allows us to estimate all the costs of paying workers for the manufacture of one piece of finished products. The result obtained using this method is measured in man-hours. The formula is as follows:
Tp = Amount of time worked by all employees / Volume of production produced during this period.
The numerator in this formula is measured in man-hours. This indicator takes part in the planning process. This process is carried out according to the factors of changing the number of employees of the company or saving working time.
Varieties of calculation
Each of the above indicators of labor intensity is determined in accordance with its economic meaning. The complexity of the products, the calculation formula of which is discussed below, implies the total labor costs of the main and auxiliary employees of the company. It is calculated as follows:
Tpr = Ttehn + Tob, where Ttehn is the cost of labor for all the main workers directly involved in the production; Tob - costs associated with the remuneration of staff.
Total labor input is the most extensive category for research. It includes labor costs for all personnel. It is calculated as follows:
Tp = Ttech + Tob + Tu, where Tu is the cost of paying salaries of managers, security.
Cost saving
The complexity of the work, the formula of which was presented above, allows analysts to find ways to save costs on production. To do this, in the planning process, all factors affecting the indicator are considered, and managers make decisions about appropriate actions in this direction.
To improve the complexity, it is necessary to study a number of areas. This will increase resource efficiency.
Management must constantly improve production technology, introduce new and reconstruct old equipment, improve the quality of raw materials, cutting, and reduce energy costs.
It is necessary to optimize specialization, production management, reduce labor costs. Ways to choose the best volume of production and appropriate reduction in the number of employees, reduce the number of labor-intensive products.
Calculation of savings
The complexity (formula), the calculation example of which allows you to correctly determine the required amount of labor, first requires you to set its planned amount. In the planning period, the indicator is defined as follows:
RSplan = OPplan / Vfact, where OPplan is the planned amount of production; Vfact - production of products in the reporting period.
Next, the savings and the planned number of workers are determined. On this basis, the planned productivity growth is determined:
RP = ER ∙ 100 / (RSplan - ER), where ER - saving the number of workers.
This technique allows analysts to carry out adequate planning and find ways to optimize indicators.
Calculation Example
To correctly understand the assessment system, the planned labor intensity should be considered. The calculation formula, an example of which is discussed below, will help to master this technology.
The company produces soap at a cost of: shavings - 2.2 rubles; laundry - 1.0 rubles. and toilet - 1.8 rubles. In the reporting period, over 170 working hours, 95 tons of shavings, 65 tons of toilet soap and 200 tons of household soap were produced. In the planning period, the company expects to spend 160 hours on the production of finished goods. At the same time, it is assumed that chips of 90 tons, toilet 75 tons and household 100 tons will be produced.
Sales of products in the planning and reporting period is equal to:
- Pn = 100 + 90 ∙ 2.2 + 75 ∙ 1.8 = 433.
- Po = 200 + 1.8 ∙ 65 + 2.2 ∙ 95 = 526.
The complexity is equal in the base and planning period:
- That = 526: 170 = 3.09.
- Mp = 433: 160 = 2.71.
The improvement in labor productivity is: 3.09: 2.71 = 1.143.
Result Value
The complexity, the formula of which was applied above, is an informative tool for assessing labor costs and their impact on productivity in future periods. Thanks to this, the management and financial service of the enterprise can optimize the planned costs for paying employees in various fields of activity.
To conduct an analysis of the effectiveness of the company, the indicators of labor intensity will reflect changes in the productivity of workers in dynamics. This allows you to identify development trends and find constraining factors.
Having become acquainted with such an indicator as labor intensity (the calculation formula is presented above), you can understand the principles of achieving effective organization of the company’s work, track its changes in dynamics and predict future development.
