Planning the efficiency of forming and using the production potential of industrial enterprise

A generalized vision of the modern formation and development of the economic potential of an industrial enterprise is proposed. Comparison of the concepts of “production potential” and “economic potential” is carried out. We came to the conclusion that today it is more relevant in research to use the concept of economic potential, as the most generalizing indicator of the stability of an industrial enterprise in the modern economic environment. Summarizing the existing approaches to the concept of “potential”, the economic potentials of the country, industry, enterprise are highlighted. The study of individual components of the economic potential of an enterprise and the justification of measures for its development cannot give a positive result, if only because the influence of its components as part of an integral system has not been studied and substantiated. There is an understanding that economic potential can be included as an element in a system of a higher order – in the aggregate potential of an enterprise. Moreover, it can be assessed by two groups of indicators: which directly characterize the economic potential itself and the production and economic activity of the enterprise. The definition of an economic enterprise is directly related to the objectives of the enterprise and includes the following stages: assessment of the structure, dynamics and efficiency of the use of production resources; determination of the level of competitiveness of the main types of products; analysis of real production reserves and loss of economic resources of the enterprise; selection of the main strategy and tactic for developing the potential of the enterprise; planning the development of enterprise potential; implementation of planned activities. The main components of the economic potential of the enterprise are determined: financial potential, human resources, production potential, scientific and technological potential. The development of each component of the economic potential must be considered in conjunction with the potentials of the domestic and foreign markets, competitors, and the country as a whole. Understanding such a division of the components of economic potential also provides for the division into smaller components, and so on. The study, based on the analysis of approaches to clarify this concept, shows that in relation to an individual enterprise, the concept of “economic potential” is characterized not so much by its production capacity as the integrated ability of individual components to meet consumer needs, while rationally using available resources and take into account interests of external economic entities. The economic potential of the enterprise depends on the optimal combination of certain types of economic resources that are involved in the production process, the level of organization of production and labor, the effectiveness of the management system.

Download Full-text

ANALYSIS OF MANAGEMENT OF PRODUCTION POTENTIAL OF MACHINE-BUILDING ENTERPRISES OF KHARKIV REGION

Three Seas Economic Journal ◽

10.30525/2661-5150/2021-3-16 ◽

2021 ◽

Vol 2 (3) ◽

pp. 124-129

Author(s):

Vladyslav Yakovlev ◽

Olena Druhova

Keyword(s):

Economic Activity ◽

Production Capacity ◽

Machine Building ◽

Industrial Enterprise ◽

Building Industry ◽

Production Potential ◽

Industrial Enterprises ◽

Financial Condition ◽

Software Methodology ◽

Building Enterprises

The purpose of the article is to study the management of production potential of machine-building enterprises in the Kharkiv region, 9 enterprises were analyzed and their production indicators were studied. The effectiveness of the production potential is characterized by production, technological, financial and innovative components. It should be noted that since the production potential is a component of the economic potential of the enterprise, the structure presented in Fig. 1 is quite conditional. If we consider the production potential from this point of view, then, for example, its innovative component is inextricably linked with the innovative potential, and the financial component – with the financial potential. Sustainable development and competitiveness of an industrial enterprise depends on the level of production potential, which is the foundation of production activity. The production potential of an industrial enterprise is a complex, dynamic and stochastic system consisting of a number of interconnected components. At the legislative level, an attempt has been made to build a single model of an integrated indicator of the financial condition of large, medium and small enterprises. According to the approved IFI Procedure for assessing the financial condition of a potential beneficiary of an investment project, the level of financial condition of the enterprise is determined depending on the value of the integrated indicator, which allows the classification of enterprises in the industry or region. At the same time, questions about the structure of innovation potential remain controversial in the scientific literature. The development of an integrated module for the assessment of production potential is the first stage of the presented methodological approach. The next step is to improve the information subsystem of monitoring the financial and economic activity of industrial enterprises, which in turn is an integral part of the IT system of enterprise management. At this stage, it is necessary to develop software that provides analysis and comprehensive assessment of production capacity. After integrating the software module with IS monitoring, we have to test the software using the collected database on the financial and economic activity of the enterprise. Comparing the results of the assessment with the assessment from the analytical reports of independent experts will allow to determine the level of adequacy of the presented model and software. Methodology. The analysis was conducted on the basis of financial statements of enterprises of the machine-building industry of Kharkiv region for the period 2018, 2019, 2020. Results of the study show that the enterprises of the machine-building industry have low indicators of production potential, so enterprises need to change the strategy in the market to improve production capacity to increase competitiveness and improve. Practical implications. Given that companies have lost traditional markets in recent years and products are not in high demand in European markets, it is necessary to develop ways to improve the management of the potential of machine-building enterprises, seek new markets and strengthen cooperation with international companies. Value/originality. The study will help the management of enterprises to more effectively manage the enterprise and improve their production capacity.

Download Full-text