Material consumption is one of the main indicators of the economic efficiency of social production. Material consumption characterizes the specific (per unit of output) consumption of material resources (main and auxiliary materials, fuel, energy, depreciation of fixed assets) for the manufacture of products. Material consumption can be measured in cost and physical terms. The indicator Material consumption is used in the analysis of the production and economic activities of industrial enterprises, in particular the cost of production, when comparative analysis unit costs in various industries, as well as with enlarged methods of planning material and technical resources, establishing 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 consumption of products.
To achieve this goal it is necessary:
Expand the concept of material consumption of products,
Describe the value of the material consumption of products.
1. Economic significance of material consumption
The material consumption of products is one of the most important generalizing indicators characterizing in monetary terms the costs of material resources per unit of output (work, services).
The material intensity of production is determined by the ratio of the totality of current material costs (without depreciation) in industries, enterprises or other objects of material production to the total value of the gross output of the corresponding objects, i.e. characterizes the value of these costs per 1 ruble of products (works, services).
You can determine the material intensity by dividing the cost of material costs by the cost of the product produced with their help:
Where M h - the cost of material costs;
P - the 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 is determined 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. The level of use of material resources is also reflected in the output indicators finished products from a unit of raw materials, 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 their cost structure and amount to many industries 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, the reduction of material consumption, the all-round saving of material resources are of great importance for increasing the efficiency of the country's economy and each enterprise, providing a reduction in production costs, an increase in profits, profitability and competitiveness of the economy.
Ways and reserves to reduce 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 technology, low-waste and waste-free technology, and integrated processing of raw materials. A great effect is the use of the most economical and progressive high-quality types of material resources, including substitutes that meet the most modern requirements in terms of quality, shape, section, size, chemical composition and other indicators. Significant savings reserves are associated with the reduction of scrap and production waste, their recycling and reuse, improvement of storage facilities, storage and transportation of material and fuel resources. 2. Evaluation of the efficiency of the use of material resources
In the process of consumption of material resources in production, they are transformed into material costs, so 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 generalizing and particular indicators is used (Table 2).
The use of generalizing indicators in the analysis allows you to get a general idea of the level of efficiency in the use of material resources and the reserves for its increase.
Partial 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 decrease in the material consumption of individual products (specific material consumption).
table 2
Indicators of efficiency of material resources
|
Indicators |
Calculation formula |
Economic interpretation of the indicator |
|
1. General indicators |
||
|
Material consumption of products (ME) |
Reflects the amount of material costs attributable to 1 rub. manufactured products |
|
|
Material return of products (MO) |
|
It characterizes the output of products from each ruble of consumed material resources |
|
The share of material costs in the cost of production (UM) |
Reflects the level of use of material resources, as well as the structure (material consumption of products) |
|
|
Material Utilization Factor (KM) |
|
Shows the level of efficiency in the use of materials, compliance with the norms of their consumption |
|
2. Private indicators |
||
|
Raw material consumption of products (CME) Metal consumption of products (MME) Fuel consumption of products (TME) Energy Intensity of Products (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 can be: raw material intensity - in the processing industry; metal consumption - in mechanical engineering and metalworking industry; fuel intensity and energy intensity - at CHPP enterprises; semi-finished products - in assembly plants, etc.
The specific material consumption of individual products can be calculated both in cost and in conditionally natural and physical terms.
In the process of analysis, the actual level of indicators of the efficiency of the use of materials is compared with the planned one, their dynamics and the reasons for the change are studied.
The specifics of accounting at the enterprise assumes that each organization itself establishes a list of material costs and fixes it in its accounting policy. Accounting for material costs at the enterprise at the same time is unified on accounts 20-29 of the plan established by the Ministry of Finance. Therefore, there are certain methods of how to calculate the material costs of the balance sheet and, on their basis, derive the main coefficients for evaluating the company's activities.
Material costs: formula for calculating the balance
Let's look at the regulated reporting forms and determine how to find material costs in the balance sheet.
Its asset looks like this:
As you can see, there is no line for material costs in the balance sheet, although there are several accounts for their calculation in accounting:
- 20 main production
- 21 accounting of semi-finished products
- 23 ancillary production
- 25 and 26 - overhead and business expenses
- 29 service farms
According to PBU 4/99, accounts 25 and 26 have no balances, and are closed at the end of each reporting period. It turns out that for material costs, the calculation formula is based on the balances of accounts 20-23, 29, and is reflected in the balance sheet in the line “Inventories” of the II section of the Asset. It is this position that is the main one in the construction of cost forecasts, costing and analysis of efficiency. It is generally accepted that material costs in the balance sheet are a line with code 1210, if you use regulated coding, or “Inventories” by its name in the form 0710001 according to OKUD.
Analysis of the efficiency of the enterprise by costs
To estimate the costs of the company, the following values are used:
- Profit per ruble of material costs
The amount of profit per 1 rub. MZ is the main indicator of the efficiency of material turnover in a particular production. It is calculated as the ratio of profit from the main activity to the amount of material costs incurred. For example, if you need to calculate this parameter for reporting for the past year, you need to take the profit / loss from sales in line 2200 of the income statement
and correlate it with the amount of reserves in section 4 of the notes to the balance sheet:
Please note that in this section, inventory should be reported by group or type, for example: raw materials, goods for resale, basic materials, finished goods, "work in progress". Thus, it is possible to calculate the profit per 1 ruble of material costs in the context of any expense of the main industries.
- Product material consumption parameter
Material consumption is calculated as the ratio of material costs to output products in its cost estimate. The calculated value characterizes the volume of MZ per unit of manufactured product. When evaluating the dynamics of the indicator, its decrease is assessed positively, and its growth is negative.
- The value of material yield per unit of product
If material consumption is the ratio of material costs to the cost of output, then material productivity is determined as the result of dividing the cost of production of a batch of products by the materials spent on its creation and other material costs. This parameter characterizes how much production was obtained in the cost estimate from each ruble of the consumed resource.
- The share of material costs in the cost
The share of material costs to the total cost shows the dynamics of material consumption, and if for profit per 1 ruble of material costs the formula is Pr / MZ, then to calculate the specific weight, it is necessary to correlate MZ / Cst full, where Cst full is the total cost of production.
- Material cost factor
All the main indicators in dynamics can be expressed in terms of coefficients that clearly show the growth / growth or decline in output and / or costs, therefore, the calculation of material costs is carried out both in absolute and in relative terms. Correct staging statistical studies will allow you to understand how wisely the business is being conducted and whether there are resources for profit growth. An increase in material costs indicates not only an increase in output, but also an inefficient use of resources and an increase in the cost of a unit of product. For the coefficient of material costs, the calculation formula is usually used as follows: they relate the actual value of material costs to its planned parameter. The resulting value characterizes how economically resources are used, whether there is an overrun. The coefficients of total material costs can be greater than one, then economists will record overspending, but if the indicator is less than one, resources are used sparingly. Accounting for material and labor costs in dynamics is carried out precisely from the point of view of management efficiency.
- Profitability of material costs
If we talk about the profitability of the Ministry of Health, then this indicator shows how much real income is received from 1 invested ruble of material resources. As a rule, for its calculation, the amount of net profit and the total costs of a material nature are correlated.
ROI based on financial statements
Accounting for material and labor costs involves monitoring the effectiveness of their use. Let's look at the example of the financial statements of the Passive company, what will be the profit per ruble of material costs, the formula for calculating it and how to operate with the obtained coefficients in practice. Here is form 0710002 from a pulp and wood pulp company.
Calculating Rcosts using the VP/Cst formula, we obtain a coefficient of 0.25 (200/800), which shows that for each ruble invested in pulp production, the company receives 25 kopecks of gross profit, and last year this value was similar with a gross profit of only 80 thousand roubles. It turns out that the cost recovery has not changed with the increase in production.
Assessing the effectiveness of sales by the formula:
Sales profit (line 2200)/(Cst(line 2120)+Comm.exp.(2210)+Exp.management(line2220))
We get: in 2014 and 2015, the coefficient is 0.14 - the efficiency is the same.
In a large production environment, it is very important to control material costs. To do this, use indicators that allow you to calculate the material consumption of finished products and blanks.
With proper optimization of the presented indicators, the company receives a large profit in reporting period. Therefore, material consumption is an important factor that should not be ignored. How to calculate and interpret it should be considered in more detail.
general characteristics
Material consumption is an indicator that can reflect the picture of the use of the resources available to the enterprise. This is the expense of inventory, which falls on the monetary unit of finished products.
This technique is used to evaluate the means of production of the organization. The reciprocal of this indicator will be the material yield coefficient.
These are general indicators of the effectiveness of the use of resources used to manufacture the company's products. If the material consumption of products decreases, this is a positive trend.
Such examples allow minimizing the cost and producing more competitive products, respectively, at the end of the reporting period, the organization's profit from the sale of goods and services increases. It is for this reason that analysts, when studying the financial and economic situation at an enterprise, necessarily calculate a system of indicators of material consumption.
Indicator group
Material consumption is one of the indicators that allow you to evaluate the use of enterprise resources. To carry out a full analysis of the company's production activities in the field of reserves, several methods are used. 
To do this, together with the material consumption, the indicators of material efficiency and the cutting coefficient of the material are necessarily examined. All of them are important for a comprehensive assessment.
As mentioned above, material productivity is the inverse of material consumption. It shows how much output was obtained from the consumed resources.
The cutting ratio makes it possible to understand whether existing stocks have been correctly processed. To do this, add the natural values of all the blanks (length, weight, etc.) that were produced from a specific number of resources, and then divide this result by the mass of the original resources. The most important in this evaluation system is the material consumption.
Calculation formula
Material consumption, the formula of which is used by analysts in the research process, deserves separate consideration. It is calculated by dividing the material costs by the volume of output of finished products. The formula looks like this:
Me \u003d Mz / N, where Mz- total material costs, N- the volume of output (in natural or value form).
The resulting indicator is compared with the planned value. By dividing the fact by the plan, the ratio of the standard use of resources is obtained. If it is greater than 1, there is a consumption overrun in production. Savings are determined when the coefficient is less than 1.
Types of material consumption
Material intensity, the formula of which was presented above, is a general method for determining the consumption of resources in production cycle. But there are several varieties of this indicator. 
Material consumption can be specific, structural and absolute. The last of these allows the financial manager to determine the rate of resource consumption for the production of a unit of finished goods, its net weight and the degree of inventory consumption.
The structural variety will show the share of sample products in the overall indicator of material consumption. And the specific type of this indicator is a structural variant, which was reduced to a natural common unit. It is used only for products of one group of goods.
Ways to improve
Exploring the indicators of material consumption, the financial manager analyzes in a certain sequence.
- Initially, the quality of the previously performed supply planning is clarified. technological process, and the compliance of the fact with the developed standards is analyzed.
- Then the organization's need for such resources is determined. The effectiveness of the use of materials is evaluated. Carrying out a factor analysis at this stage will make it possible to understand which component requires more resources, in which areas a decrease in the indicator is required.
- The study completes the calculation of the impact of the cost of materials on the volume of production.
Based on the calculations made, decisions are made on measures aimed at improving the situation.
The manager can do the following. A method of conducting low-waste production and the integrated use of raw materials is being thought out. It is also possible to use more synthetic materials and improve the quality of finished products. To do this, it is necessary to carefully prepare raw materials for the production of basic products.
The organization of the regulatory framework should be improved. It will also be necessary to optimize the number working capital, upgrade machinery and production technology.
Personnel must adhere to the rules of careful attitude to materials and tools.
Optimization result
Carrying out activities that positively affect the indicators of material consumption of products will lead to a number of changes.
- By reducing costs, sales increase. From the same amount of raw materials, it will be possible to produce more finished products.
- Cost reduction will reduce the price of products, which will increase consumer demand and competitiveness of these products. This will lead to an increase in profits and will allow the introduction of new production technologies and the modernization of equipment.
- Management of material resources will improve the structure of working capital and allow for more harmonious management of capital. This reduces the risk of bankruptcy and increases the investment rating of the company.
Stable, optimized work of the organization opens up a lot of new opportunities for development.
Material consumption is a significant indicator for evaluating the effectiveness of a company's activities. Its optimization will open many interesting prospects for the company.
Production is the ratio of the amount of material costs to the cost of manufactured products. Essence and meaning material consumption: shows how much material costs need to be made or actually account for the production of a unit of output.
Where MZ - the amount of material costs; VP - the volume of products (works, services).
Service assignment. With the help of an online calculator, a factor analysis of material consumption is carried out due to factors:
- output volume;
- production structures;
- specific consumption of raw materials;
- prices for raw materials and supplies;
- selling prices for products.
Instruction. Fill in the required information, click Next. The solution is saved in MS Word format.
Example. As noted above, the total material consumption depends on the volume of output and the amount of material costs for its production. In turn, the volume of output in value terms (VP) is influenced by such factors as the quantity of manufactured products (VVP), its structure (UDi) and the level of selling prices (CP). The amount of material costs (MC) also depends on the volume of manufactured products, its structure, the consumption of materials per unit of output (UR), the cost of materials (CM).
The influence of these factors on the consumption of materials can be determined by the method of chain substitution, using the data in Table. one.
| Indicator | Calculation algorithm | Amount thousand rubles |
| I. Cost of materials for the production of products: | ||
| a) according to plan | ∑(VVP iPL UR iPL CM iPL) | 35000 |
| b) according to the plan recalculated for the actual output while maintaining the planned structure | MZ PL VP 1 / VP 0 | 33350 |
| c) according to planned norms and planned prices for actual output | ∑(VVP iF UR iPL CM iPL) | 39050 |
| d) actually at planned prices | ∑(VVP iF UR iF CM iPL) | 37600 |
| e) in fact | ∑(VVP iF UR iF CM iF) | 45600 |
| II. Gross output value: | ||
| a) according to plan | ∑(VVP iPL CPU iPL) | 80000 |
| b) actually with a planned structure and planned prices | ∑(VVP iF CPU iPL) ± ∆VP STR | 76000 |
| c) actually at the actual structure and at planned prices | ∑(VVP iF CPU iPL) | 83600 |
| d) actually | ∑(VVP iF CPU iF) | 100320 |
Table 2 - Factor analysis material consumption of products.
| Indicator | Volume of production | Product structure | Material consumption per product | Material prices | Product prices | Calculation of material consumption | The level of material consumption, kop. |
| Plan: ME 0 | Plan | Plan | Plan | Plan | Plan | 35000: 80000 | 43.75 |
| ME conv1 | Fact | Plan | Plan | Plan | Plan | 33350: 76000 | 43.882 |
| ME conv2 | Fact | Fact | Plan | Plan | Plan | 39050: 83600 | 46.711 |
| ME conv3 | Fact | Fact | fact | Plan | Plan | 37600: 83600 | 44.976 |
| ME conv4 | Fact | Fact | Fact | Fact | Plan | 45600: 83600 | 54.545 |
| Fact: ME 1 | Fact | Fact | Fact | Fact | Fact | 45600: 100320 | 45.455 |
output volume: 43.882 - 43.75 = 0.132 kop.
production structure: 46.711 - 43.882 = 2.829 kop.
specific consumption of raw materials: 44.976 - 46.711 = -1.734 kop.
prices for raw materials and supplies: 54.545 - 44.976 = 9.569 kop.
selling prices for products: 45.455 - 54.545 = -9.091 kop.
Thus, we can conclude that in the reporting year the company increased the share of products from more high level material consumption.
As a result of the impact of this factor, the amount of material costs in the cost of production increased by 2838 thousand rubles (0.0283 * 100320)
Achieved some savings in materials compared to the approved standards, resulting in a decrease in material consumption by 1.734 kopecks.
Under the influence of this factor, the amount of material costs in the cost of production decreased by 1740 thousand rubles (-0.0173 * 100320)
The rise in prices for raw materials and supplies due to inflation had the most significant impact on the increase in the material consumption of products.
The increase in production volume due to a change in the total amount of material costs can be determined using the following formula:
∆VP = (MZ 1 - MZ 0 / ME 0)
The impact of changes in the efficiency of the use of material resources on the increase in output can be calculated using the following formula:
∆VP = MZ 1 (1 / IU 1 - 1 / IU 0)
Table 3 - Analysis of the material consumption of products. Change in the volume of production by 20320 thousand rubles. was caused by:
- changes in the total amount of material costs: 10600 / 0.438 = 24228.571 thousand rubles.
- changes in the efficiency of the use of material resources: 45600 (1 / 0.455 - 1 / 0.438) = -3908.571 thousand rubles.
With an increase in capital productivity, retail turnover increases per 1 hryvnia. funds invested in fixed assets. Return on assets - production output, the volume of services rendered per unit of fixed assets:
F O \u003d Volume of marketable output / Average annual cost of fixed assets
The capital productivity ratio for the enterprise from 2011 to 2013 increased from 0.54 to 0.63, which indicates an increase in the efficiency of the functioning of capital, its productivity, makes it possible to assess the degree of use of fixed assets, taking into account the entire income, indicates the efficiency of the use of fixed funds. This indicator shows what amount of proceeds from the sale falls on the unit cost of fixed assets. It characterizes the efficiency of the use of fixed assets of the organization, the compliance of the total volume of fixed assets at the disposal of the organization with the scale of its business.
6. Material return.
Material return - the ratio of the cost of revenue from the sale of services to the cost of materials used. The material yield index is calculated by the following formula:
Mo = P / Mz
where: Mo - material efficiency, P - the cost of manufactured products for the year, Mz - material costs.
The material transfer coefficient is dimensionless. The higher the material yield index calculated according to the presented formula, the less material is needed to produce the same volume of products.
Material yield in 2013 increased compared to 2011, which characterizes the growth in the efficiency of the use of materials, i.e. from 1 hryvnia of used materials in 2013 received more revenue than from 1 hryvnia. materials used in 2011
7. Capital-labor ratio.
The higher the equipment of workers with modern commercial equipment, the higher their productivity. To determine the effectiveness of the use of fixed assets is the indicator of capital-labor ratio. The capital-labor ratio is defined as the ratio of the value of fixed assets of an enterprise to the average annual headcount.
FV = SO / PE, Where FV - capital-labor ratio; CO - the cost of fixed assets; PE - the number of personnel (as a rule, production personnel are taken).
In 2011, the capital-labor ratio of the enterprise amounted to 221 UAH/person and 222 UAH/person in 2013. Although not large, an increase in capital-labor ratio contributes to an increase in production volume, the greater the cost of fixed assets and should lead to an increase in profits.
3.3. Practical implementation of the prototype iit "Kvant-b" to increase the company's profits
In order to develop an intelligent IT knowledge base, it is necessary to analyze the performance of the enterprise using the KVANT-B program.
The mode of formation and training is presented in the form of the main form of the program. In this mode, the signs of the decision object (DMA) are set in the table of signs, the table of empirical data is entered, and the results of the program training are viewed in the result output window. This mode is shown in Figure 1.
Initial data:
Rice. 1.Initial data on the training sample
After the training sample is formed, when you click on the "Training" button, the result is displayed (Fig. 2).
Result:
Rice. 2. The quality of the knowledge base on the training sample
The control sample formation mode is available when the features of the ODA in the task are defined. We form a control sample and in order to
to see the quality of the knowledge base on the control, you must press the button
"check on the control sample".
Rice. 3. Quality of the knowledge base for the control sample
Decision Object Identification Mode (DEI)
In the identification mode, the procedure for identifying a new observation is carried out, where n-1 sending features are known and the target feature is unknown, and an explanation of the identification result is given in the result explanation window (Fig. 4).
Rice. 4. Identification mode
ODA extrapolation mode
In the extrapolation mode, the unknown / unknown sender features are determined when the known ones are specified, and the result and an explanation of the result are displayed in the result window (Fig. 5).
Rice. 5. ODA extrapolation mode
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