Product material consumption formula for calculating the balance. Factor analysis of material productivity. Factor analysis of material consumption

Enterprises with large production volumes must carefully control their material costs. For this purpose, special indicators are used that make it possible to calculate the material intensity of finished products and workpieces.

If you correctly optimize material consumption indicators, the company will be able to make greater profits in the reporting period. For this reason, material intensity is considered the most important factor that cannot be ignored.

DEFINITION

Material consumption is an indicator by which the resources available to an enterprise are characterized. Basically, this is the consumption of inventory for each monetary unit of finished goods.

Material consumption has an inverse indicator, which is called material productivity. Both coefficients are considered general indicators of the efficiency of use of resources that are used in the production of the enterprise's products.

If material consumption decreases, we can talk about a positive trend, since it becomes possible to minimize costs and produce more competitive products.

Material consumption formula

The material intensity formula is used to analyze the activities of an enterprise and is calculated by the ratio of material costs to the volume of output.

The general formula for material intensity is as follows:

Me = MZ/Q

Here Me is an indicator of material intensity,

MZ – the amount of material costs,

Q is a cost or physical indicator of the total costs of material.

The resulting value is most often compared with the planned value, and by relating the fact to the plan, the coefficient of normative use of resources can be obtained. In the case when this coefficient exceeds one, we can talk about excess consumption in the production process. Savings can be observed when the coefficient is less than 1.

Types of material consumption

The material intensity formula is a general way of measuring resource consumption during a production cycle. There are several types of material consumption:

• Absolute material intensity, which determines the rate of resource consumption for the production of each unit of product, including the degree of inventory consumption and net weight;
• Structural material intensity, reflecting the share of selected products in the overall material intensity indicator;
• Specific material consumption is a structural variety that is reduced to a natural unit.

Ways to improve material consumption

When studying material intensity indicators, financial managers conduct analysis in the appropriate sequence:

• First of all, the quality of the technological process support planning carried out in advance is determined, and an analysis of the fact’s compliance with the developed standard is carried out.
• Determining the enterprise’s need for such resources;
• Assessing the efficiency of materials use;
• Conducting factor analysis, which will allow us to understand which components require more resources, and which area requires a decrease in the indicator;
• Calculation of the impact of the cost of materials on production volume;
• Making decisions about measures to improve the situation.

Examples of problem solving

EXAMPLE 1

Exercise	Calculate material consumption for the planned and reporting year if the enterprise has the following indicators: Gross output Reporting year – 243,000 thousand rubles, Planned year – 269,000 thousand rubles, Material costs for production Reporting year – 139,000 thousand rubles, Planned year – 136,000 thousand rubles.
Solution	The material consumption formula for solving this problem is as follows: Me = MZ/Q Me (reporting period) = 139000/243000 = 0.57 rub. for every ruble of products, Me (planned period) = 136000/269000 = 0.51 rub. for every ruble of products, Conclusion. We see that the company plans to reduce the material intensity of its products in the planned period.
Answer	Me = 0.57 and 0.51 rub.

In this article, we will consider the material intensity of the enterprise’s products and the formula for calculating the indicator for the business plan.

Material consumption of products

What is material intensity?

Material consumption- this is an indicator that characterizes the consumption of materials per 1 ruble of manufactured products. This indicator is measured in money. It is used in the analysis and accounting of inventories in an enterprise. The indicator is the inverse of the indicator material productivity. Material productivity characterizes the amount of products produced from each ruble of reserves.

Formula for calculating material consumption by balance next:

The material intensity of a product shows the ratio of the cost of material inputs to the cost of the manufactured product. It reflects the costs of raw materials, inventories and other resources per unit of production. The lower the material intensity indicator, the more finished products the enterprise can produce. Based on this formula, you can obtain an indicator of material productivity, which is the inverse of material intensity. The formula for calculating it on the balance sheet of the enterprise is as follows:

where: V is the cost of the manufactured product, M is the cost of material costs.

Material consumption types

The following types of material intensity of products are distinguished: absolute, structural and specific. Absolute material consumption shows the consumption rate for one finished product. Structural material intensity characterizes the share of a group of materials in the manufacture of the finished product. Specific material consumption is the structural material consumption reduced to a natural unit of measurement (meters, liters, etc.).

Factor analysis of material consumption

The material intensity of products primarily depends on the cost of production volume and the amount of material costs for its production. The cost of output volume may change due to output volume, product mix and product selling prices. Material costs are also influenced by the volume of production, its structure, material consumption per unit of production and prices for material resources.

Summary

Analysis of material consumption allows us to draw conclusions about the efficiency of using the organization's reserves in the manufacture of finished products. Based on it, it is possible to identify reserves for reducing costs for energy resources, raw materials and materials. The main purpose of using and calculating the material intensity of products is to save production costs and increase the efficiency of the enterprise’s economic activities.

Material consumption is one of the main indicators of the economic efficiency of social production. Material intensity characterizes the specific (per unit of product) consumption of material resources (basic and auxiliary materials, fuel, energy, depreciation of fixed assets) for the manufacture of products. Material intensity can be measured in monetary and physical terms. The indicator Material intensity is used in the analysis of production and economic activities of industrial enterprises, in particular the cost of production, in a comparative analysis of unit costs in various industries, as well as in integrated methods of planning material and technical resources, setting wholesale prices for new products, and the like. This determines the relevance of this study.

The purpose of this work is to study the problems of reducing the material intensity of products.

To achieve this goal it is necessary:

Expand the concept of material intensity of products,

Characterize the value of material intensity of products.

1. Economic importance of material consumption

Material intensity of products is one of the most important general indicators that characterize in monetary terms the costs of material resources per unit of product (work, services).

The material intensity of products is determined by the ratio of the entire set of current material costs (without depreciation) in industries, enterprises or other objects of material production to the total cost of gross output of the corresponding objects, i.e. it characterizes the value of these costs per 1 ruble of products (works, services).

Material intensity can be determined by dividing the cost of material costs by the cost of the product produced with their help:

Where M z is the cost of material costs;

P – cost of the product produced

The material intensity of products and the level of use of material resources can also be characterized by various natural and specific indicators. For example, in physical terms, fuel consumption for the production of 1 kW/h of electricity, gasoline consumption per 100 km of track, electricity consumption for smelting 1 ton of aluminum, etc. are determined. The level of use of material resources is also reflected by the indicators of the output of finished products from a unit of raw materials. , for example, the amount of metal or other useful component obtained from 1 ton of ore, etc. All material resources consumed in the process of production and sale of products (works, services) are included in the structure of their cost and in many industries constitute the predominant part of the total costs. Thus, the share of material costs in production costs in 1999 was 64.6 percent in domestic industry, 66.3 percent in agriculture, and 56.1 percent in construction. Therefore, reducing material consumption and all-round saving of material resources are of great importance for increasing the efficiency of the country’s economy and each enterprise, ensuring a reduction in production costs, an increase in profits, profitability and competitiveness of the economy.

The ways and reserves for reducing the material consumption of products are extremely diverse. They exist and can be implemented at every enterprise, in every industry. The leading role is played by various innovative activities, including the widespread introduction of material and energy-saving equipment, low-waste and non-waste technology, and integrated processing of raw materials. The use of the most economical and progressive high-quality types of material resources, including substitutes that meet the most modern requirements in their quality, shape, cross-section, size, chemical composition and other indicators, has a great effect. Significant savings reserves are associated with the reduction of scrap and production waste, their disposal and recycling, improvement of warehousing, storage and transportation of material and fuel resources. 2. Assessing the efficiency of use of material resources

In the process of consuming material resources in production, they are transformed into material costs, therefore the level of their consumption is determined through indicators calculated based on the amount of material costs.

To assess the effectiveness of material resources, a system of general and specific indicators is used (Table 2).

The use of general indicators in the analysis allows us to get a general idea of ​​the level of efficiency in the use of material resources and the reserves for increasing it.

Particular indicators are used to characterize the efficiency of consumption of individual elements of material resources (basic, auxiliary materials, fuel, energy, etc.), as well as to establish a reduction in the material intensity of individual products (specific material intensity).

table 2

Indicators of efficiency of material resources

Indicators	Calculation formula	Economic interpretation of the indicator
1. General indicators
Product material intensity (ME)		Reflects the amount of material costs attributable to 1 rub. released products
Material productivity of products (MO)		Characterizes the output from each ruble of material resources consumed
Share of material costs in the cost of production (CP)		Reflects the level of use of material resources, as well as the structure (material intensity of products)
Material utilization rate (KM)		Shows the level of efficiency in the use of materials and compliance with their consumption standards
2. Partial indicators
Product raw material intensity (CME) Product metal intensity (MME) Product fuel capacity (TME) Product Energy Intensity (EME)		The indicators reflect the efficiency of consumption of individual elements of material resources per 1 ruble. released products
Specific material consumption of the product (UME)		Characterizes the amount of material costs spent on one product

Depending on the specifics of production, private indicators may be: raw material intensity - in the processing industry; metal intensity – in mechanical engineering and metalworking industry; fuel intensity and energy intensity - at thermal power plant enterprises; semi-finished product capacity - in assembly plants, etc.

The specific material consumption of individual products can be calculated both in value and in conditionally natural and natural terms.

During the analysis process, the actual level of material use efficiency indicators is compared with the planned level, their dynamics and reasons for change are studied.

The growth of production volumes and improvement of quality largely depend on the enterprise’s provision of material resources and the efficiency of their use.

Timely receipt and efficient use of material resources ensure uninterrupted, rhythmic work, implementation of the plan and increased profits. An unreasonable excess of material resources can lead to a slowdown in the turnover of working capital, and consequently, a deterioration in financial condition.

The analysis of an enterprise's supply of material resources begins with a comparison of the planned need for materials (taking into account their stocks at the beginning of the year, balances at the end, needs for repairs) with data on the actual receipt of materials at the enterprise's warehouse.

Full provision of the need for material resources with sources of coverage is a condition for uninterrupted operation.

Coverage sources are divided into external(material resources coming from suppliers in accordance with concluded contracts, or resources at wholesale bases) and internal(use of recycled materials, reduction of waste of raw materials, in-house production of semi-finished products, savings on storage).

When determining the real need for the import of materials from outside, it is necessary to establish general need in a certain type of materials, which is calculated as the sum of the need for material resources for the production program, adjusted for changes in the balance of materials at the beginning and end of the year, plus the need for material resources for major repairs and for the maintenance of other support services.

Real need in the import of material resources from outside is equal to the difference between the total need and the amount of one’s own internal sources of coverage.

The object of analysis is complexity of supply, i.e., maintaining certain relationships between the most important types of material resources. Violation of the complexity of supply, as a rule, leads to violation of production deadlines, assortment and a possible decrease in production volume.

The uninterrupted operation of an economic entity is impossible without creating the optimal amount of reserves for the implementation of the production program. In the process of analysis, the compliance of the actual size of reserves of the most important types of raw materials and materials with the standard sizes is determined. For this purpose, based on data on the actual availability of material resources in kind and their average daily consumption, their actual supply of materials in days is determined and compared with the standard value.

25. Material consumption and material productivity

General indicators of the efficiency of use of material resources are material productivity, material intensity, the share of material costs in the cost of production, the coefficient of material costs, profit per ruble of material costs.

Material efficiency(Mo) characterizes the output per 1 rub. material costs (M), i.e. the amount of products produced from each ruble of material resources consumed:

Mo = V / M, (4)

where V is the volume of products sold.

Material consumption(Me) is an indicator inverse to material productivity, characterizing the amount of material costs per 1 ruble. manufactured products:

Me = M / V. (5)

Share of material costs in production costs characterizes the amount of material costs in the total cost of manufactured products. The dynamics of the indicator characterizes the change in the material intensity of products.

Material cost ratio- this is the ratio of the actual amount of material costs to the planned amount, recalculated to the actual volume of manufactured products. This indicator characterizes how economically materials are used in production, and whether there are overruns compared to established standards. Overconsumption of materials is indicated by a coefficient exceeding one.

The efficiency of using certain types of material resources is characterized by specific indicators of material intensity.

Specific material intensity is defined as the ratio of the cost of all consumed materials per unit of product to its wholesale price.

The material intensity indicator is more analytical; it actually reflects the level of use of materials in production; A 1% reduction in material costs brings a greater economic effect than a reduction in other types of costs.

The main analytical indicators characterizing the use of materials in production: material intensity of all commercial products; material consumption of individual products.

Calculation and analysis of particular indicators of material intensity make it possible to identify the structure of material costs, the level of material intensity of certain types of material resources, and reserves for reducing the material intensity of products.

To correctly determine the most important areas for increasing the economic efficiency of social production, criteria and performance indicators have been formed.

The most important indicators of the economic efficiency of social production are labor intensity, material intensity, capital intensity and capital intensity.

The material intensity of a social product is calculated as the ratio of the costs of raw materials, materials, fuel, energy and other items of labor to the gross social product. The material intensity of the products of an industry, association or enterprise is defined as the ratio of material costs to the total volume of products produced:

Where m is the level of material consumption.

M is the total volume of material costs for production in cost terms.

Q is the total volume of production output.

The overall cost efficiency is calculated for the entire national economy, individual industries, enterprises, and individual means of new technology and production organization.

To determine the overall efficiency, indicators of two kinds are used - general ones, which in summary form take into account the level of use of production costs and resources, and private ones, which take into account the level of use of individual types of costs and resources - fixed assets, living labor materials, etc. At any level of social production, both promising and private indicators of overall efficiency can be used. However, the nature of the indicators will be different depending on the object for which efficiency is calculated.

Reducing the material intensity of products is effective for the country's national economy. Only, for example, in industry, a reduction in the material intensity of products by 1% makes it possible to achieve savings on a large scale. This is especially important because In the cost of production in industry, almost 3/5 of the costs are for raw materials, basic and auxiliary materials, fuel and energy.

Material costs in all sectors of the national economy (except mining) occupy the main share in the cost of production. They include raw materials and basic materials, purchased semi-finished products, product components, auxiliary materials, fuel, energy, containers, packaging materials, tools, custom parts, etc.

In the composition of costs, the main share is material costs - 54%, and in industry and agriculture over 60%. Cost structures vary significantly across economic sectors. Depending on the predominant share of individual elements in the total cost, the following types of industries and productions are distinguished: material-intensive (food industry - 70%, meat industry - 95%); labor-intensive (trade, logging, etc.), capital-intensive (transport, mining industry), energy-intensive (non-ferrous metallurgy), etc.

The cost structure does not remain constant, it is dynamic.

Reducing and optimizing costs is one of the main directions for improving the economic activity of each enterprise, determining its competitiveness, reliability and financial stability. Consequently, the general and initial characteristic of material resources in production inventories and the reserves in the production process is the indicator of material intensity of products.

Material intensity, as already mentioned, is the cost of raw materials, supplies and other material resources per unit of production.

The material consumption of a product can be absolute, structural and specific.

Absolute material consumption shows the rate of consumption of materials Np per product, m/m3, its net mass Qr, m, and the degree of use of materials, characterized by a utilization factor

Risi=UQr/UNp

In the General case, the total absolute consumption of material for the product.

УNp= Npa + Npb+ Np.d.

where Npa, Npb, Npz.d. - consumption rates, for example, reinforcement, concrete and embedded parts.

Structural material intensity shows the share of individual groups of materials in the total material intensity of products.

In general, structural material intensity can be written as the equation

R - number of types of materials;

The share of the corresponding material in the total material intensity (structural material intensity coefficient).

Specific material consumption is the structural material consumption reduced to the physical unit of measurement of a structure of a certain type (m, m2, m3, etc.).

Thus, material intensity is measured in physical units, in monetary terms or as a percentage, which is the cost of materials in the total costs of production, in cost.

Material intensity can be determined by dividing the cost of material costs by the cost of the product produced with their help.

Indicators of general economic efficiency, including indicators of the use of production assets, which include the indicator of material intensity, characterize the effectiveness of the choice of already realized, past costs. With their help, the feasibility of the costs incurred is determined, and reserves for increasing production efficiency are identified. Indicators are also used in management and control activities.

The system of indicators of material intensity of products is closely related to the system of norms for the consumption of material resources, since the main source of analysis of material intensity, along with reports on the actual consumption of materials for a specific period, are their consumption norms.

All indicators of material intensity are closely interrelated and are used to analyze the consumption of material resources at various stages of the production process and planning level, to identify losses of material resources and reserves for reducing their consumption.