Analysis of use of material resources in the enterprise

Any product that is produced at the plant or factory requires a cost, which requires certain material resources. The same thing happens in trading-economic sphere, where the level and condition of the resource depends not only on the company's ability to compete with other manufacturers, but also the very survival on the market. In this regard, the competent leadership of the company periodically performs an analysis of the use of material resources, which allows us to determine such issues as the rationality of using a particular raw material, the effectiveness of training internal staff to compare information and software from competing firms and so on.

One of the most important elements of improvement and streamlining of production is a holistic approach which includes the use of more efficient materials, reducing production costs, increasing the production of goods, as well as improving the financial condition of the company. Periodic updating of the range and the expansion of productive capacity is caused by the growth of the population's needs in material things.

The Material resources of the company are raw materials, materials, electricity, fuel, components and semi-finished products that the firm buys and uses with the goal of using all this in trading activities. This ensures that the manufacturer has the ability to provide services or conduct business.

The Analysis of use of material resources includes the decision that some tasks:

to study the effects of various factors on the change material of finished products;

- assessment of the impact of logistics and supply on the volume of production and cost of operations;

- identify those opportunities that have not yet been used in the company. In other words it is the search for internal reserves, which is carried out on the basis of information such as the business plan, operational accounting data and financial report information about expenses and balances of material resources;

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- identification of losses and equipment downtime due to the lack of materials and components in the warehouse;

- determine the level of security of the subject with all the necessary resources that are divided according to grades types and timing of deliveries.

Producing an analysis of the material resources you can find out the real picture of all that is spent in the company and in this regard to adjust the plan for the near future. It is noteworthy that the financial resources are moving in material costs, resulting in capitallabor in the enterprise. The calculation of the total aggregate expenses of material resources make up about 70%, indicating a high material intensity of products. The decrease of this index is the most important task at each company, as will enable the company to conduct an economic activity with great advantage among the competitors.

Competent analysis of use of material resources necessarily involves accounting for so-called production waste, which are inevitable in any production. The growth in production volumes is linked to optimizing costs and increasing efficiency of all production in General. The holistic interconnectedness of all composite indicators can be expressed in the following formula:

V = MZ * Mo or V = MZ * (1/Me) (5.1) where

The intensity of production - this is Me

Materialattach products is the Mo

The amount of material ZAT­rat is MZ

As a result, it is possible to find out the volume of production (V) and to identify the percentage compliance of all component parts of the main figure. Qualitative analysis of use of material resources is a very important factor that has a direct impact on the entire operations of the company.

Summing up, it should again be emphasized that the material resources of any company play a crucial role in its economic and trade activities. In this respect, the analysis of material resources of the enterprise is essential, because it allows to optimize the costs and to reduce production costs.