Rationing working capital solves two main problems. The first is to constantly maintain the necessary correspondence between the size of the enterprise's working capital and the need for funds to ensure the minimum required reserves of material assets. This means that for each enterprise it is necessary to establish a standard, the use of which would allow the enterprise, during normal economic activity, not to experience financial difficulties to ensure the reproduction process. Another task is more complex: to manage the size of inventories based on rationing. Rationing is intended to stimulate the improvement of economic activity, the search for additional reserves and the formation of a reasonable combination of supply methods, etc. The first stage of rationing is the development of stock standards for each element of working capital. Rationing of working capital involves determining the norms of their stock in days and the norms of working capital in monetary terms as a whole, including for each element. Working capital standards are determined by the operating conditions of the enterprise, namely: the duration of the production cycle; time to prepare materials for production; the procedure for processing and using waste, the territorial location of suppliers; frequency and uniformity of deliveries, size of supplied batches of materials and products; system and form of payments, other conditions of supply and sales. When establishing working capital standards, the following indicators are used: volume of production and sales of products; production costs; norms of working capital by type of inventory, expressed in days. The internal needs of the enterprise - the buyer of raw materials and materials - are determined on the basis of data on production volume, product sales and information on costs at the enterprise. The enterprise's need for working capital depends on external conditions, namely on the work of suppliers and transport; for this purpose, the working capital rate in days is calculated. Rationing of working capital is carried out according to three main positions: rationing of working capital for raw materials, materials, purchased products; rationing of working capital for work in progress; rationing of working capital for finished products. The rate of working capital for raw materials, materials and purchased products is calculated as the sum of the time: the stay of material assets paid for by the enterprise in transit (transport stock); necessary for unloading, delivery of material to the enterprise, acceptance and storage; necessary to prepare materials for production; presence of materials in the current and insurance stocks. The first element of the working capital norm for raw materials, basic materials and purchased products - transport stock - includes the presence of materials in transit from the moment the supplier's invoice is paid until the cargo arrives at the consumer's warehouse. Over a certain period of time, material assets are withdrawn from the sphere of production - the supplier sent them to the consumer and can no longer use them, and the buyer has not yet received them and, accordingly, does not have the opportunity to consume them (this is especially significant if there is a a number of intermediaries). It is during the period of diversion of material assets from the production sector that working capital is required for the supplier and the consumer.
For the supplier - for the period from shipment until payment by the buyer, for the consumer - from the moment of payment until the materials arrive at the buyer's warehouse. During the shipment of products by the supplier, there is a simultaneous movement of material assets by various modes of transport (material flow) and payment documents (document flow), and the movement of material assets and payment documents may not coincide in time and most often does not coincide. The following options are possible: the enterprise receives payment documents, pays the cost of raw materials, materials, semi-finished products before the receipt of material assets. In this case, he needs a certain amount of working capital to pay for material assets that will be in transit for some time; payment documents and material assets arrive at the same time; material assets arrive earlier than payment documents. In the second and third cases, the company does not need working capital to pay for materials in transit. The size of the transport stock is calculated based on the cost of materials in transit and the daily consumption of materials according to reporting data. The second element of time, which makes up the working capital norm for raw materials, basic materials and purchased products, is the time required for receiving, unloading, sorting and storing materials. As a rule, it is determined by technical standardization of these operations or timing. This norm depends on: the specifics of logistics, organization of loading and unloading operations and other similar factors. In addition, this indicator is greatly influenced by the type of materials and the features of their design. The most difficult thing is to calculate the residence time of materials and raw materials in the current and safety stocks. Current inventories are the main part of the working capital norm. Current (warehouse) stock is a constant supply of materials fully prepared for launch into production. Its purpose is to ensure uninterrupted production activities of the enterprise. The amount of stock depends on the frequency of deliveries of this type of raw material and material. Another element of the working capital norm is the reserve or safety stock, which should neutralize the influence of random factors on the turnover of these funds. It is designed to ensure uninterrupted operation of the enterprise in case of violation of the deadline or the established volume of deliveries, in the event of receipt of supplies that do not comply with regulatory documents, or incomplete materials. In economic and methodological literature, it is recommended to calculate the safety stock norm at 50% of the current stock norm. The working capital rate for each type of materials is calculated by adding the number of days obtained for each element that exceed the number of days of inventory. To estimate the cost of working capital norms, it is necessary to multiply the number of days by the average daily consumption of this type in value terms. Work in progress includes products at various stages of processing - from the launch of raw materials, supplies and components into production to the acceptance of finished products by the technical control department. Work in progress is determined by the amount of advanced funds invested in the costs of raw materials, main and auxiliary materials, fuel, electricity, depreciation and other expenses. All these costs for each product increase as you move along the technological chain. The amount of working capital diverted in work in progress depends on the duration of the production cycle, the cost of manufactured products and the rate of increase in costs during the production process. Determining the size of working capital in work in progress is the most difficult part of calculating the full amount of working capital. The rate of working capital employed in work in progress (Nnp) is calculated as:
where Zsd - average daily costs, rub.; Tdts is the duration of the production cycle for the manufacture of this product, days; k is the cost increase coefficient. The production period, or the duration of the production cycle, is determined by the time that passes from the start of production of the first machine part put into production until the acceptance of the finished machine by the technical control department (QC). With a uniform increase in production costs, the cost increase coefficient is calculated using the formula: 
where Zmp - planned costs for basic materials; Zpr - other cost elements; C is the planned cost per unit of production.
The final element of the working capital norm is the working capital norm for finished products. This includes products completed in production, accepted by the quality control department and delivered to the finished goods warehouse. The rate of working capital for finished products is determined by the time from the moment the products are accepted into the warehouse until they are paid for by the customer and depends on the time required for: acceptance of finished products from the workshops; completing and selecting products to the size of the shipment and in the range corresponding to orders, orders, contracts; packaging, product labeling; delivery of packaged products from the enterprise warehouse to the railway station, pier, etc.; loading products into vehicles; storage of products in a warehouse. Working capital standard (Ngp) in finished product inventories in the warehouse:
where Psd is the average daily output of each product at production cost, rub.; Ngpd - working capital norm, days.
24. Turnover of working capital. Working capital turnover indicators*
The efficiency of using working capital is determined mainly by their turnover indicators. The significance of accelerating the turnover of working capital is as follows:
1). Accelerating turnover, all other things being equal, makes it possible to ensure the same volume of products sold, using less funds.
2). Accelerating turnover allows you to get more profit.
3). Accelerating turnover allows you to reduce the need for borrowed funds, or use the freed funds for highly profitable short-term investments.
4). Accelerating turnover allows you to increase the profitability of current assets.
Indicators
1). Turnover ratio (turnover rate) – expresses the number of turnovers made by working capital during the analyzed period. The rapid turnover of funds allows enterprises, even with a small volume of production, to receive significant profits from current activities.
This coefficient is calculated as the ratio of the volume of produced (sold) products in value terms to the average balance of working capital.
2). Turnover period (or duration of one turnover of working capital)
It is calculated as the ratio of the number of days in the analyzed period to the turnover ratio.
3). Working capital consolidation coefficient (load factor) is the inverse coefficient of the turnover ratio and shows how much working capital is accounted for per 1 ruble of manufactured or sold products.
4). The effect of accelerating the turnover of working capital is reflected in the indicators of their release or additional involvement in turnover.
The absolute release of working capital occurs when the production program is fulfilled or exceeded. The relative release of working capital is calculated using the following formula:
25. Labor resources, personnel and personnel of the enterprise.
Personnel of an enterprise is the main composition of qualified employees of an enterprise, company, or organization. Typically, enterprise personnel are divided into production personnel and personnel employed in non-production departments.
Production personnel - workers engaged in production and its maintenance - make up the bulk of the enterprise's labor resources.
The most numerous and basic category of production personnel are workers of enterprises (firms) - persons (workers) directly engaged in the creation of material assets or work to provide production services and move goods. Workers are divided into main and auxiliary. The main workers include workers who directly create commercial products of enterprises and are engaged in the implementation of technological processes, i.e., changing the shape, size, position, condition, structure, physical, chemical and other properties of objects of labor.
Auxiliary workers include workers engaged in servicing equipment and workplaces in production shops, as well as all workers in auxiliary shops and farms.
Auxiliary workers can be divided into functional groups: transport and loading, control, repair, tool, housekeeping, warehouse, etc.
Managers are employees holding management positions at the enterprise (director, foreman, chief specialist, etc.).
Specialists - workers with higher or secondary specialized education, as well as workers who do not have special education, but occupy a certain position.
Employees – workers who prepare and process documents, accounting and control, and business services (agents, cashiers, clerks, secretaries, statisticians, etc.).
Junior service personnel - persons occupying positions in the care of office premises (janitors, cleaners, etc.), as well as in servicing workers and employees (couriers, delivery boys, etc.).
The ratio of different categories of workers in their total number characterizes the personnel structure of an enterprise, workshop, or site. The personnel structure can also be determined by such characteristics as age, gender, level of education, work experience, qualifications, degree of compliance with standards, etc.
The professional and qualification structure of personnel is formed under the influence of the professional and qualification division of labor. A profession is usually understood as a type (kind) of work activity that requires certain training. Qualification characterizes the extent to which workers have mastered a given profession and is reflected in qualification (tariff) categories. Tariff categories and categories are also indicators characterizing the level of complexity of work. In relation to the nature of the professional preparedness of workers, such a concept as a specialty is also used, which determines the type of work activity within the same profession (for example, the profession is a turner, and the specialties are a lathe-borer, a turner-carousel operator). Differentiation in specialties for the same working profession is most often associated with the specifics of the equipment used.
26. Quantitative characteristics of the personnel composition of the enterprise.
The quantitative characteristics of the enterprise's personnel are measured by indicators of the payroll, average and attendance numbers of employees.
The payroll reflects the movement of the number of all employees - hiring and dismissal from it, etc. It takes into account all permanent and temporary employees, including employees on business trips and vacations, hired on a part-time or part-time basis, as well as those with whom labor relations have been established. To determine the number of employees for a specific period, the average number of employees is calculated, which is used in calculating average labor productivity, average wages, staff turnover, etc. To calculate it, accounting data from working time sheets is used.
Turnout refers to the number of workers who are actually at work during a certain day.
Determining the number of personnel
Determination of personnel requirements at an enterprise (firm) is carried out separately by groups of industrial and non-industrial personnel. The initial data for determining the number of employees are: production program; time, production and maintenance standards; nominal (real) working time budget for the year; measures to reduce labor costs, etc.
The main methods for calculating quantitative personnel requirements are calculations based on the labor intensity of the production program; production standards; service standards; jobs.
1. Calculation of the standard number (Nch) for the labor intensity of the production program.
When using this method, the total labor intensity of the production program (ltr. floor) is determined as the sum of the labor intensity of technological (ltr. tech.), maintenance (ltr. obs.) and management (ltr. control): ltr. floor. = ltr. those. +ltr. obs.
Ltr. ex. The sum of the first two terms reflects the labor costs of main and auxiliary workers and, accordingly, forms the actual production labor intensity (ltr. pr.), and the third reflects the labor costs of employees.
2. According to production standards. Loс = Qvyp / (Nв* Teff), where Qvyp is the volume of work performed in accepted units of measurement; Nв - planned production rate per unit of working time; Teff is the effective working time fund.
3. According to service standards. used to determine the number of key workers whose activities are difficult to regulate. This applies to workers who operate units, furnaces, devices, machines and other equipment and control the progress of technological processes. The average number of workers is calculated using the formula: Lр =n* Lр. ag* h *(Ts.pl. / Ts.f.), where n is the number of working units; Lр. ag. - the number of workers required to service one unit during a shift; Ts. pl. - number of days of operation of the unit as planned
period; Shh. f. - actual number of days of work.
4. By workplace it is used when planning the number of those groups of auxiliary workers for which neither the volume of work nor service standards can be established, since their work is performed at certain
workplaces and is associated with a specific service object (crane operator, storekeeper, etc.). In these cases, the calculation is carried out according to the formula: Lvs = Nm * h * ksp, where Nm is the number of jobs; h - number of shifts per day; ksp - payroll coefficient.
The number of service personnel can also be determined by aggregated service standards, for example, the number of cleaners can be determined by the number of square meters of premises, wardrobe attendants - by the number of people served, etc. The number of employees can be determined based on the analysis of industry average data, and in their absence - according to the standards developed by the enterprise. The number of managers can be determined taking into account controllability standards and a number of other factors.
27. Qualitative characteristics of the personnel of the enterprise
The qualitative characteristics of the personnel of an enterprise are determined by the structure of personnel, the degree of professional and qualified suitability of workers to achieve the goals of the enterprise and perform the work it performs.
When determining the personnel structure, employees engaged in the main and non-core activities are distinguished. Employees of the enterprise directly related to the main activity (production) represent the industrial production personnel of the enterprise. In addition to them, at any enterprise there are employees who are not directly related to the core activities of the enterprise, that is, they are engaged in non-core activities (employees of healthcare institutions, public catering, culture, trade, subsidiary agricultural facilities, etc.). Workers engaged in non-core activities constitute non-production personnel of the enterprise.
Employees of industrial production personnel include workers of main, auxiliary, auxiliary and service workshops (see below), research, design, technological organizations and laboratories, plant management, services engaged in major and current repairs of equipment and vehicles. Industrial production personnel are divided into workers and employees.
Workers include people directly involved in the production of material assets, as well as servicing this production. Workers are divided into main and auxiliary. The main workers are busy working in the divisions of the main production that produce core products, while the auxiliary workers are in the auxiliary, secondary, service, and ancillary divisions that ensure the uninterrupted operation of all departments (inter-shop, intra-shop transport, warehousing, etc.) .
Employees include workers in the following three categories: managers, specialists and actual employees. Managers are considered to be the employees who head the enterprise and its structural divisions, as well as their deputies and chief specialists (chief accountant, chief engineer, chief mechanic, chief technologist, chief power engineer, chief metallurgist, chief metrologist, etc.). Specialists include workers performing engineering, technical, economic, accounting, legal and other similar activities. The actual employees include workers who prepare and process documentation, accounting and control, and business services (timekeepers, bookkeepers, secretaries, office clerks, etc.). Along with the structure of personnel, the quality indicators of personnel include the professional and qualification suitability of personnel, which is determined by the profession, specialty and level of qualifications of enterprise employees. A profession is a special type of activity that requires certain theoretical knowledge and practical skills. A specialty is a type of activity within one profession that has specific characteristics and requires additional special knowledge and skills from workers) A high degree of qualification is fixed by assigning the employee the appropriate qualification categories (tariff categories), which characterize not only the complexity of the work performed within the profession and specialty, but also the degree of remuneration through tariff coefficients corresponding to tariff categories (the higher the tariff category, the higher the tariff coefficient and wages). At a specific enterprise, the professional qualification structure is reflected in a special document, approved annually by the head of the enterprise and representing a list of positions and specialties for each division (department, workshop, site, etc.). This document is called the staffing table.
One of the main components of working capital is productive reserves - a complex group of working capital, including raw materials, basic materials and purchased semi-finished products, fuel, containers, spare parts, special tools and devices, etc. Due to the different nature of their functioning in the production process, the methods for rationing individual elements of industrial inventories are not the same.
Rationing of working capital for stocks of raw materials, basic materials and purchased semi-finished products
The working capital standard for this group is calculated on the basis of one-day consumption (P) and the average stock rate in days. The average rate of working capital, in turn, is defined as a weighted average based on the rate of working capital for individual types or groups of raw materials, basic materials and purchased semi-finished products and their daily consumption.
The rate of working capital for each type or homogeneous group of materials takes into account the time spent in current (N), insurance (N s), transport (N m), technological (N a), and also preparatory stocks (N p).
Thus, working capital standard for production inventories of raw materials, basic materials and purchased semi-finished products(1T PZ) is determined by the formula:
Current stock- the main type of stock, therefore the rate of working capital in the current stock is the determining value of the entire rate of stock in days. The size of the current stock is influenced by the frequency of supplies of materials under contracts (supply cycle), as well as the volume of their consumption in production.
If deliveries are planned regularly and the material is consumed evenly, the average interval between deliveries is determined by dividing the number of days in a year by the number of planned deliveries, taking into account the timing of the coincidence of receipts from different suppliers: when receiving the same material or semi-finished product from several suppliers on the same day, such receipts are considered as one delivery. The issue is resolved in a similar way when raw materials are received from one supplier for several days in a row, but provided that one payment document is issued for all shipments.
Example 7.7-
Calculation of the average delivery interval. Material comes from three suppliers in accordance with calendar schedules. From the first supplier - 1 and 16th, from the second - 6 and 16th, and from the third - 6, 14 and 21st. Consequently, the consumer has five deliveries during the month (1, 6, 14, 16 and 21st), and over the year - 60 deliveries (5-12). The average delivery interval is 6 days (365: 60).
The average supply interval is calculated on the basis of planned information or the regime of resource receipt that has developed in the reporting period. When using planned information, the stock rate is calculated on the basis of contracts, delivery schedules, work orders, stock notices and other similar documents in which the volume is determined and delivery dates are set. If the contracts do not specify specific delivery times, the average interval between deliveries can be determined as arithmetic mean, or weighted average, value, which depends on fluctuations in delivery times and volumes. In this case, one-time small deliveries are not taken into account, and excessively large receipts are reduced to the average size of deliveries.
Insurance (warranty) stock - the second largest type of stock, determining the general norm. It is necessary in every organization to guarantee the continuity of the production process in cases of violation of the terms and conditions for the supply of materials by contractors, transport, or the shipment of incomplete batches.
When calculating the time spent by materials in a warehouse in the form of an insurance (warranty) stock, the rate of working capital in days is usually set within the limits of up to 50% of the rate of the current stock, if this material is received in transit from out-of-town suppliers. The safety stock rate increases beyond 50% in the following cases:
- ? Unique, high-quality materials are periodically consumed, as well as materials manufactured only for a given organization by one supplier;
- ? the consumer is located far from convenient transport routes or delivery of materials is possible only at certain times of the year;
- ? When certain materials are continuously consumed in large quantities, delivery intervals range from one to five days.
The closer the suppliers are located, the less frequent the interruptions in product delivery, the smaller the safety stock. If materials are delivered from warehouses by road, safety stock is not provided. Only if these warehouses are remote, the rate of working capital in the safety stock is set at up to 30% of the rate of working capital in the current stock. The amount of safety stock can also be determined on the basis of actual reporting data on deviations from the average delivery interval.
Example 7.8-
Calculation of the safety stock norm. For the calculation, you should select the number of deliveries without taking into account random, small and other atypical deliveries (Table 7.6).
Table 7.6
|
Date of receipt of materials from suppliers |
Scope of delivery |
Volume of selected supplies |
Number of selected deliveries |
Actual interval until next delivery, days |
Average delivery interval, days |
Excess over the average interval, days. (gr. 5 - gr. 6) |
Number of exceedances |
Reasons for non-acceptance of delivery |
|
supply |
||||||||
|
supply |
||||||||
|
Etc. until the end of the planning period |
||||||||
Calculation of safety stock norms based on actual reporting data on material supplies
The average size of the selected supplies in this example is 400 tons (4800:12). The total number of deliveries given is 16 (6500: 400). The average delivery interval under these conditions is 22 days (365: 16). The working capital norm in terms of safety stock is assumed to be 5.5 days (60: 11).
Transport stock is created in case of exceeding the terms of cargo turnover in comparison with the terms of document flow. Transport stock is not created if the period of cargo turnover coincides with the period of document circulation or is less than it. When delivering materials over long distances, the deadline for payment of settlement documents is ahead of the deadline for the arrival of material assets. While the materials are in transit after payment of the payment documents, the buyer needs funds.
The amount of transport stock is calculated by direct and analytical methods. Direct counting method used when there is a small range of consumable material resources coming from a limited number of suppliers. Based on the results of the previous period, the average duration of cargo travel from the supplier to the consumer is determined. From this time the following is subtracted: time for issuing payment documents and their processing at the supplier’s bank, postal travel time for payment documents from the supplier’s bank to the buyer’s bank, time for processing documents at the buyer’s bank, time for acceptance.
With a large number of suppliers and a significant range of consumed resources, the norm of transport stock is determined analytical method. For this purpose, data on the balances of inventory items in transit at the beginning of each quarter is used, minus the cost of resources delayed in transit beyond the established deadlines.
The average balance of paid material assets en route is determined by the formula:
where O avg is the average balance of paid material assets en route for the past period (excluding the cost of goods delayed in transit beyond the established time limits, as well as excess and unnecessary materials), rub.;
Oj,..., O i - balances of paid material assets in transit at the beginning of the quarter for the reporting period, rub.;
P- the number of quarterly balances accepted for calculation.
Based on the calculated average balance of material assets en route, the actual time spent in the transport stock is determined using the formula:
where N is the rate of working capital for inventory items in transit, days;
R day - one-day consumption of inventory items according to the production cost estimate for the reporting period, rub.
The resulting indicator is adjusted for the proximity of suppliers and consumers, improvement of transport performance, acceleration of calculations in the planning period and is taken as the transport stock norm.
Example 7.9-
Calculation of transport stock norms.
- 1. Direct counting method. The movement of cargo from the supplier to the buyer takes 15 days. Postal mileage for payment documents is five days. Processing of documents at the supplier and at bank branches is carried out within four days. The acceptance period is three days. Under these conditions, the rate of working capital in the transport stock will be three days [15 - (5 + 4 + 3)].
- 2. Analytical method. According to the reporting data, the amount of materials in transit, minus those delayed beyond the normal terms of progress, is: as of 01/01/2016 - 18 thousand rubles, as of 04/01/2016 - 17 thousand rubles, as of 07/01/2016 - 19 thousand rubles. , as of 10/01/2016 - 23 thousand rubles, as of 01/01/2017 - 24 thousand rubles. The average daily consumption of materials in 2016 is 10 thousand rubles.
The average balance of materials in transit for the current year is determined in the amount of 20 thousand rubles. (18,000: 2 + 17,000 + 19,000 + 23,000 + 24,000: 2): 4, and the working capital rate for materials in transit is two days (20,000: 10,000). The obtained result is adjusted taking into account planned measures to improve supply and calculations.
Technological stock is created for the period of preparation of materials for production, including analysis and laboratory tests. This stock is taken into account if it is not part of the production process. For example, when preparing for the production of certain types of raw materials and materials, time is required for drying, heating, grinding, settling, bringing to certain concentrations, etc.
Preparatory stock, necessary for the period of unloading, delivery, acceptance and storage of materials, is also taken into account the stock norms for raw materials, basic materials and purchased semi-finished products. The time for preparing materials for production is determined by the list of relevant operations and the conditions for their implementation, based on technological calculations or by timing. If the material is put into production in parts, the preparation time is limited by the cost of the first batch. When contracts with suppliers provide for their performance of relevant preparatory operations, a standard is not planned.
Calculation of working capital standards for inventories of raw materials, basic materials and purchased semi-finished products
Table 7.7
|
Group material values |
Norm preparatory stock, days |
Current stock norm, days. |
Safety stock norm, days. |
Total (gr. 2 + gr. 3 + gr. 4), days. |
One-day consumption, thousand rubles. |
Working capital standard (group 5 x group 6), thousand rubles. |
|
Basic materials |
||||||
|
Purchased semi-finished products |
||||||
|
Material assets on the way |
||||||
|
Total |
The working capital standard is an indicator that determines the minimum amount of availability of which is sufficient to ensure the normal flow of the technological process. This value does not have a constant value for a given business entity. The working capital standard is directly dependent on the volume of products produced, as well as on the work of the supply and sales service, the assortment list of goods and forms of settlements with customers. In the financial sphere of the enterprise's activity, this indicator is the most volatile.
At the second stage of calculating the indicator, the amount of working resources is determined, the volume of which is necessary in order to create the amount of stock required for the continuity of the production cycle for each element included in the technological process. Thus, private standards are determined. Each element is calculated using a formula. It expresses the product of the norm of the stock of funds in circulation for a particular element by the quotient obtained by dividing the consumption of this component for the planned period by the value of the given period.
The working capital standard calculated for the enterprise consists of a value that is determined by summing up the partial indicators of inventories of production resources. Its size expresses the minimum volumes of goods and material assets that will ensure the uninterrupted functioning of the enterprise.
The working capital ratio is the amount:
Inventory standards for production purposes;
Work in progress standard;
Standards for released finished goods;
The standard for expenses related to upcoming periods.
The value of the indicator for inventories related to the production of products delimits resources into their individual types or homogeneous groups of materials. The size of this standard directly depends on the time the valuables are in the preparation stage, as well as during the period of implementation of the technological process. Safety stocks are also taken into account.
The working capital standard for work in progress is directly dependent on four main factors. These include:
Volume and composition of products;
Time indicator of the technological cycle;
The nature of the increase in costs during the process of releasing goods.
If there is a volume of resources at the enterprise that is insufficient to bring it to the standard value, processes occur that contribute to:
Reducing the production of goods;
Interruptions in production, as well as sales and, as a result, failure to meet planned targets;
Violations of delivery schedules for goods to customers.
In modern market conditions, the importance of calculating working capital standards is increasingly increasing. Their correct application in practice leads to strengthening the financial condition of a business entity and its solvency.
Rationing of working capital is to develop standards for types of inventory and costs, as well as measures to improve the efficiency of using working capital.
The value of normalization of working capital:
Ensures continuity and uninterrupted production and sales of products;
Allows efficient use of working capital at each enterprise;
Contributes to strengthening the economy regime, identifying and using on-farm reserves;
Ensures optimal need for working capital;
Provides inventory size management.
Working capital rationing refers to the process of determining the minimum, but sufficient (for the normal flow of the production process) amount of working capital at the enterprise.
When rationing working capital, it is necessary to take into account the dependence on the following factors:
Duration of the production cycle for manufacturing products;
Consistency and clarity in the work of procurement, processing and production shops;
Supply conditions;
Distance of suppliers from consumers;
Speed of transportation, type and uninterrupted operation of transport;
Time to prepare materials to start their production;
Conditions for the sale of products;
Payment systems and forms, document flow speed, factoring capabilities and forecasting.
The following elements of working capital are standardized:
Productive reserves;
Unfinished production;
Future expenses;
Finished products in the enterprise warehouse;
Cash in hand and in storage.
In the process of rationing working capital, norms and standards are developed.
Working capital norm– this is a relative value corresponding to the minimum, economically justified stock of inventory items. It is set in days.
Working capital ratio- this is the minimum required amount of funds to ensure the economic activities of the enterprise.
If working capital standards can be established for a relatively long period, then the standards are calculated for a specific period of a year (quarter, month, decade).
Rationing of working capital includes:
Determination of working capital stock norms in days;
Determination of standards for all working capital in monetary terms, including for each element.
General standard of working capital or total need for working capital of the enterprise(Ntot) is defined as the sum of private standards calculated for individual elements of working capital using the formula:
Ntot = Npz + Nnp + Nbr + Ngp + VAT,
where oil refinery is the production reserve standard; Nnp - work-in-progress standard; Nbr - standard for future expenses; Ngp - finished product standard; VAT is the standard for cash on hand and in storage.
The production inventory standard consists of current, insurance, transport and technological reserves.
Current stock(TK) is intended to provide the production process with material resources between two deliveries. Its value is usually determined within half the average interval between deliveries. The maximum value of the current stock in natural units of measurement (tons) is calculated based on the stock rate in days (T n) and the average daily consumption of materials (R day) in tons. In this case, the maximum value of the current stock is determined by the formula:
TZ = Tn x R day
Safety stock(SD) can be calculated in two ways: by the average deviation of actual delivery times from planned ones or by the time required for urgent ordering and delivery of material resources from the supplier to the consumer. In case of an aggregated assessment, it can be taken in the amount of 50% of the average daily consumption of material (Рsut), multiplied by the gap in the supply interval (I str), i.e. the difference between the actual delivery time (If) and the planned one (Ipl) and is determined by the formula:
SZ=Rsut (If – Ipl)*0.5
The need to have a safety stock is explained by the constant violation of delivery deadlines for material resources by the supplier. If this violation is associated with a transport organization, a transport stock is created, including those working capital that are diverted from the day the supplier's invoice is paid until the cargo arrives at the warehouse.
Transport stock(T rZ) is created in case of exceeding the terms of cargo turnover in comparison with the terms of document flow. Its calculation is carried out similarly to the calculation of safety stock using the formula:
T r Z = Rsut* (If – Ipl)*0.5
Technological stock(T ex Z) is created when the supplied material resources do not fully meet the requirements of the technological process and must undergo appropriate processing (for example, removing rust from the metal surface) before being put into production and is determined by the formula:
T ex Z = (TZ + SZ + T r Z) * K tech
where K tech is the coefficient of manufacturability of the material, which is set as a percentage by a commission of representatives of suppliers and consumers.
Material delivery volume(refinery) is equal to the sum of four reserves and is determined by the formula:
Npz = TZ + SZ + T r Z + T ex Z
Calculation of material supply in value terms(Npz st) is determined by the formula:
Npz st = C m, *Npz
where C m is the purchase price of the material.
General standard of industrial reserves determined by the formula:
Npz total =∑Зj,
where Зj is the production stock for a particular type (group) of material.
Example: Determine the cost of supplying material resources if the average daily consumption of material is 7.2 tons, the price of 1 t C m = 10 thousand rubles, the planned delivery interval I pl = 9 days, safety stock SZ = 3 days, transport stock T r Z = 2 days, technological reserve T ex Z = 3%.
Current stock: 7.2*9=64.8 tons. Safety stock: 7.2*3*0.5=10.8 tons. Transport stock: 7.2*2*0.5=7.2 tons. Technological reserve: (64.8 + 10.8 + 7.2) * 0.03 = 2.48 tons. Total volume of supply in physical terms: Refinery total = 64.8 + 10.8 + 7.2 + 2, 48 = 85.28 tons. Cost of supply of material resources: 10 * (64.8 + 10.8 + 7.2 + 2.48) = 852.8 thousand rubles.
The working capital standard for work in progress (N np) is determined by the formula:
N np = V d * T p * K z
where V d – average daily production at cost, thousand rubles; T p – duration of the production cycle; Kz – cost increase coefficient.
The increase in costs in the production process can occur evenly and unevenly.
With a uniform increase in costs, i.e. to enterprises with uniform output cost increase factor determined by the formula:
where a is the initial costs (for raw materials, supplies, purchased semi-finished products); c – all other costs; 0.5 – coefficient characterizing the uniformity of increase in subsequent costs.
Working capital standard for future expenses determined by the formula:
N bp = O n + Z bpl - Z spl,
where O n is the balance of deferred expenses at the beginning of the planned year (thousand rubles); Z bpl – deferred expenses in the coming year, provided for by the relevant estimates (thousand rubles); Z spl - deferred expenses subject to write-off to the cost of production for the coming year in accordance with the production estimate (thousand rubles).
Working capital standard in finished product inventories(NGP) is the product of the planned cost of the average daily output of marketable products by the time from their arrival at the warehouse to their departure from the station, taking into account the time for processing transport settlement documents according to the formula:
N gp = GP one * N g,
where GP one – one-day production of finished products at cost (thousand rubles); N g – stock norm of finished products (days).
Example: Turnover of goods at purchase prices for the quarter is 1,900 thousand rubles, the norm of stock of goods is 3 days. Determine the standard in working capital for inventories of goods, thousand rubles.
GP one = 1900/90 = 21 thousand. rub.
N gp = 21*3 = 63 thousand rubles.
2.2.4. Efficiency of using working capital: indicators,
ways to improve
To analyze the use of working capital, assess the financial condition of an industrial enterprise and develop organizational and technical measures to accelerate their turnover, a system of indicators is used that characterize the real process of movement of working capital and the amount of their release (Fig. 2.2).
Rational and efficient use of working capital helps to increase the financial stability of the enterprise and its solvency. Under these conditions, the enterprise fulfills settlement and payment obligations in a timely and complete manner, which allows it to successfully carry out business activities.
Key indicators of efficiency in the use of working capital
Turnover coefficient coefficient coefficient
(turnover time) load turnover turnover efficiency
(turnover rate) of funds or profitability of working capital
Rice. 2. 2.2. Indicators of the use of working capital
Example: The volume of products sold at cost of production for the reporting year amounted to 60,000 thousand rubles. with the amount of working capital at the end of the reporting year being 5,000 thousand rubles. Profit from the sale of commercial products is 1500 thousand rubles.
1. Working capital turnover:
O o = (5000 x 360) / 60000 = 30 days
The duration of one revolution is 30 days.
2. Turnover ratio:
Ko = 60000 / 5000 = 12 revolutions
Working capital made 12 revolutions during the year.
3. Working capital load factor:
Kz = 5000 / 60000 = 0.08
For 1 rub. products sold account for 0.08 rubles. working capital.
4. Working capital efficiency ratio:
Kef = 1500 / 5000 = 0.3
For 1 rub. working capital accounts for 0.3 rubles. arrived.
The economic result of accelerating the turnover of working capital is the release of part of these funds from circulation.
Release of working capital May be absolute and relative. The determination of the amount of release of working capital is presented in Fig. 2.2.3.
Release of working capital
absolute release relative release
working capital working capital
Rice. 2.2.3. Release of working capital
Example. The actual volume of commercial products at cost in the current year is 2,500 thousand rubles, the actual amount of all working capital at the end of the current year is 2,800 thousand rubles, the volume of commercial products for the coming year is 3,600 thousand rubles. with an expected acceleration of turnover of working capital by 4 days.
Under these conditions, the turnover of working capital in the current year will be:
O = 2800 / (2500 / 360) = 40 days
The amount of working capital, based on the volume of marketable products in the planning year and turnover in the current year, will be determined in the amount of 4,000 thousand rubles.
(36000 x 40) / 360
The amount of working capital, based on the volume of marketable products, in the coming year, taking into account the acceleration of their turnover, will be 3,600 thousand rubles.
3600 x (40 – 4) / 360
The relative release of working capital as a result of accelerated turnover in the coming year will be equal to 400 thousand rubles.
Accelerating the turnover of working capital and releasing them as a result in any form will allow the enterprise to direct funds to the development of the enterprise without attracting additional financial resources.
When analyzing the operation of an industrial enterprise, various indicators of the beneficial use of material resources are used:
Indicator (coefficient) of the output of finished products from a unit of raw materials;
Indicator of raw material consumption per unit of finished product;
Material utilization coefficient (the ratio of the net mass of the product to the standard or actual consumption);
Material intensity (the ratio of the costs of raw materials, fuel, materials, energy, etc. to production volume);
Material productivity (the ratio of production volume to the costs of raw materials, fuel, materials, energy, etc.);
The better the use of raw materials, materials and other material resources, the lower the material consumption and the higher the material productivity.
To reduce the material consumption of products it is necessary:
Improve the use of labor items;
Reduce waste;
Do not produce defective or low-quality products;
Avoid loss of material resources;
Use cheaper substitutes for resources that do not reduce product quality.
One of the main directions for increasing production efficiency is improving the use of working capital, i.e. an increase in the volume of products sold with a constant cost of working capital or a reduction in the amount of working capital with a constant volume of products sold.
Improving the use of working capital can be achieved through:
Economical and rational use of material resources;
Optimizing the size of inventories and work in progress;
Accelerating the turnover of working capital.
In modern conditions, one of the most important tasks of an enterprise is acceleration of turnover of working capital .
At the stage of industrial reserves, this is the use of economically justified stock standards, bringing suppliers of raw materials, materials, semi-finished products, and components closer to consumers; use of direct connections; expansion of wholesale trade in materials and equipment, comprehensive mechanization, automation of loading and unloading operations in warehouses.
At the stage of work in progress - this is the acceleration of the development of scientific and technological progress, the development of standardization, unification, typification; improvement of forms of organization of industrial production, use of more economical construction materials; improving the system of economic incentives for the economical use of raw materials and fuel and energy resources.
At the circulation stage, this is the approach of consumers to its manufacturers; improvement of the payment system; increase in the volume of products sold based on direct orders; manufacturing products from saved materials.
QUESTIONS AND TASKS FOR SELF-CHECKING KNOWLEDGE
1. What is meant by working capital of an enterprise?
2. Name the characteristics of the classification of working capital.
3. What is meant by revolving funds and what is their composition?
4. What are circulation funds and what is their composition?
5. What factors influence the structure of working capital?
6. What are the stages that form the circulation of working capital?
7. What is the essence of rationing of working capital?
8. What components make up the working capital standard?
9. How is the efficiency of using working capital assessed?
10. Name measures to improve the efficiency of using working capital.
ADDITIONAL LITERATURE
1. Babuk I.M. Economics of enterprise: A textbook for students of the system of advanced training and personnel training / I.M. Babuk, V.I. Demidov, L. Grintsevich, V.T. Pyko. – Mn.: BNTI, 2002. – 263 p.
2. Gruzinov V.I., Gribov V.D. Enterprise Economics: Textbook. manual.-2nd ed., additional. – M.: Finance and Statistics, 2001.
3. Zaitsev N.L. Economics of the organization. - M.: “Exam”, 2000.
4. Kozik P. Management of working capital of an enterprise // NEG, No. 38, 2002.p.21.
5. Leshko V. Working capital management // Economics. Finance. Control. -No. 12.-2000-p.30-32.
6. Directory of an enterprise financier. - 2nd ed., add. and processed – M.: INFRA-M, 2000.
7. Economics of enterprise and industries: Proc. Benefit / Under. ed. A.S. Pelikh. 4th ed. additional and processed – Rostov-on-Don: Phoenix, 2001.
8. Enterprise economics. Workshop: Textbook / A.N.Senko, E.V. Krum. – Mn.: Higher. school, 2002.
From the point of view of production efficiency, the volume of working capital should be optimal, i.e. sufficient to ensure an uninterrupted production process, but at the same time minimal, not leading to the formation of excess reserves, freezing of funds, or increased production and sales costs. The need to form working capital in the optimal amount is caused by the fact that there is a time lag between the time of consumption of material resources in production and the receipt of revenue from sales, which depends on many internal and external factors. The amount of working capital sufficient for the normal functioning of the production process and sales of products is established by rationing working capital, which is the basis for their rational use.
Rationing of working capital - this is the process of determining the minimum, but sufficient for the normal flow of the production process, the amount of working capital at the enterprise.
In a market economy, the importance of standardization of working capital is very great: enterprises must independently establish and control the standard of working capital, since ultimately the efficiency of the enterprise and its financial position (solvency, stability, liquidity) depend on this. An underestimation of the amount of working capital entails an unstable financial position, interruptions in the production process and, as a consequence, a decrease in production volume and profitability. On the contrary, an overestimation of the size of working capital freezes funds in any form (inventory, suspended production, excess raw materials), thereby preventing investment in the expansion and renewal of production.
In the practice of internal production planning, enterprises use the following methods of rationing working capital.
Analytical The method involves calculating the need for working capital in the amount of their actual average balances, taking into account the growth in production volume in the planning period. A detailed analysis of the efficiency of using working capital in the base period is preliminary carried out, factors and reserves for accelerating their turnover are identified. It is used at enterprises in the structure of working capital of which production inventories occupy a large share.
Coefficient The method is based on dividing the elements of working capital into two groups depending on changes in production volume. Working capital included in the first group depends on the volume of production. The need for them is calculated using an analytical method based on their size in the previous period and the expected growth in production volume (raw materials, materials, finished products, work in progress). The second group includes deferred expenses, spare parts, low-value and wearable items, i.e. all types of working capital, the value of which does not depend on changes in production volume. Rationing of working capital of the second group is carried out on the basis of actual average balances for the previous period.
Method direct account consists in calculating the need for standardized working capital for each element. The advantage of this method lies mainly in the fact that it allows you to accurately determine the need for working capital. However, it is quite labor-intensive, requires highly qualified economists and is mainly used for a narrow range of material resources. The method is used to clarify the working capital needs of an existing enterprise or when organizing a new enterprise, when there is no statistical data, no rhythmically operating production, or a formed production program.
The direct counting method requires determining stock standards and average daily consumption for certain types of working capital. When rationing working capital, it is necessary to take into account the dependence of norms and standards on the duration of the production cycle, conditions of logistics (intervals between deliveries, sizes of delivered batches, distance of suppliers, speed of transportation) and conditions of product sales.
The method for calculating the need for working capital using the direct account method is presented below.
General working capital standard represents the sum of private standards:
where Np.z is the standard of production reserves;
Nn p – work in progress standard;
Ng.p – finished product standard;
Nb.r – standard of expenses for future periods.
All components of the general working capital standard must be presented in monetary terms.
Inventory standard determined by the formula:
Where Q cyt – average daily consumption of materials, rub.;
N – stock norm for a given element of working capital, days.
The working capital stock ratio represents the period (number of days) during which working capital is diverted to production inventories. The stock norm consists of current, preparatory, insurance, transport and technological stocks:
Current stock – the main type of stock that ensures the continuity of the production process. The size of the current stock is influenced by the frequency of deliveries under contracts and the volume of materials consumed in production. It is usually accepted at half the average interval between deliveries. The average interval between regular deliveries (supply cycle) is determined by dividing 360 days by the number of planned deliveries.
Insurance or warranty stock is required in case of unforeseen circumstances (for example, in case of shortage of raw materials) and is set, as a rule, at 50% of the current stock, but can be less than this value depending on the location of suppliers and the likelihood of interruptions.
Transport stock will be created only if the cargo turnover timeframe exceeds the document flow timeframe. Document flow – time for sending payment documents and submitting them to the bank, time for processing documents at the bank, postal travel time for documents. In practice, transport stock is determined on the basis of actual data for the previous period.
Technological stock will be created during the preparation of materials for production, including analysis and laboratory testing. Technological inventory is taken into account only if it is not part of the production process.
Preparatory stock is established on the basis of technological calculations or through timing and refers to materials that cannot immediately go into production (wood drying, grain processing).
In some cases, a seasonal stock norm is also established when the type of resource being harvested (sugar beets) or the method of delivery (by water transport) is seasonal.
Working capital standard for work in progress determined by the formula:
Where V сут – planned average daily volume of production at production cost;
T c – duration of the production cycle, days;
Kn.z – cost increase coefficient.
At enterprises with uniform production output, the cost increase coefficient can be determined by the formula:
Where A – costs incurred at a time at the beginning of the production process (raw materials, basic materials, semi-finished products);
V – subsequent costs until the end of production of finished products (for example, wages, depreciation).
Working capital standard for future expenses determined by the formula:
where P is the carryover amount of deferred expenses at the beginning of the planned year (taken from the balance sheet);
P – deferred expenses in the coming year (determined on the basis of the enterprise’s scientific and technical development plan);
C – deferred expenses to be written off against the cost of production for the coming year in accordance with the planned production cost estimate.
Working capital ratio for finished product inventories:
Where T f.p – time required to form a batch to send finished products to the consumer, days;
T o.d – time required to prepare documents for sending cargo to the consumer, days.
As mentioned above, the general standard of working capital at the enterprise is equal to the sum of the standards for all elements. The general norm of all working capital in days is established by dividing the general norm of working capital by the average daily output of marketable products at production cost.
