Economic effect: calculation. The economic effect of the introduction of events
Each company is committed to continuous improvement in economic performance. Practical measures related to the achievement of the desired indicators can be implemented in the widest range. It is important not only to introduce appropriate methods of increasing economic efficiency, but also to correctly evaluate the results of the measures taken. What tasks can prejudge the activity data? On the basis of what criteria is the introduction of certain innovations in the production structure of the organization evaluated?
Determination of economic effect
The term "economic effect" is commonly understood to be the result of a certain business process, reflecting the achievement by any subject of the relevant relationship of goals.Among researchers there are other interpretations of the phenomenon under consideration. Thus, some experts believe that the economic effect is the difference between the product of economic activities and the costs incurred in its manufacture. That is, it can be expressed in the form of profit or, conversely, a loss.
There is a point of view according to which the economic effect is determined on the basis of the results of investing in this or that economic process. For example, investments in the modernization of production may cause a quick payback of the respective investments or may not affect the increase in the turnover of goods release.
The term “economic effect” can correlate with the social component of economic communications. This can be traced by the example of situations where the result of relevant activities will be some social consequences. For example, if it is a question of increasing the intensity of production of goods by a factory, then it is quite likely that additional jobs will appear. Their presence is one of the key criteria for the success of the socio-economic development of a city, region or state as a whole.
Ways to calculate the economic effect
Modern researchers identify several categories of indicators characterizing the economic effect. Consider them.
First, these are annual indicators. Calculating them involves determining the difference between the product and cost (if you follow the appropriate methodology) on the basis of figures accumulated over 12 months. Thus, the annual economic effect is fixed.
Secondly, these are integral indicators. It is assumed to summarize the localized (for example, in terms of the release of a particular product) effects for one year or several years.
Thirdly, these are average indicators. Calculated on the basis of the corresponding values for a specific period. For example, you can sum up the annual economic effect over several years, and then calculate its arithmetic average.
Calculation with a combination of approaches
Many modern enterprises take into account all three types of indicators. Most business processes can be analyzed for effectiveness when each of the selected indicators is activated. For example, with regard to sales, they can be, firstly, investigated for the year,secondly, they were studied in the aspect of specific commodity items; thirdly, they were examined in the context of averages for a given period of time.
The specifics of the implementation of events
The introduction of certain innovations in production and other environments in which economic activities are carried out is implemented through specialized activities. The calculation of the economic effect in this case can be based on the identification of cost indicators or natural.
When determining the results of relevant activities, it is necessary to identify in a timely manner the dependence of specific economic achievements on the facts of the implementation of certain activities. For what? It may well be that, for example, the natural growth of business turnovers - as an option, due to increased market demand, will be mistakenly defined as an economic effect from the implementation of measures.
It is necessary to develop criteria for determining the dependence of business processes on specific innovations. For example, if it comes to upgrading software on factory lines,then the managers of the enterprise should evaluate the effectiveness of the relevant event not on sales of finished products, but on numbers reflecting their production in combination with the basic costs.
Evaluation of the effectiveness of activities
There are many methods by which the actual economic effect of the implementation of measures can be determined. Modern researchers have identified several key approaches.
First, you can compare the final results of events with those that were achieved at the initial base (for example, in terms of the performance of fixed assets).
Secondly, it is possible to compare the effectiveness of innovations recorded at a particular factory with indicators at other industries.
Thirdly, it is possible to calculate the economic effect of measures on the basis of any regulatory indicators established by a particular company.
Marked approaches can be practiced simultaneously or in certain combinations.
Direct and indirect indicators
The main measure of economic efficiency is, on the one hand, revenue, on the other - costs.Their combination determines the overall profitability of the enterprise. At the same time, following the results of measures aimed at increasing the economic efficiency of production, indirect indicators of success can be identified. For example, the increased demand for the company's securities, which may indicate an increase in investor interest in businesses that have implemented complex production upgrades.
Cost effectiveness factors
What are the factors influencing the economic effect of the proposed measures to improve the economic performance of the enterprise? Researchers classify them into several varieties.
First, these are factors that can be measured in terms of value. They are amenable to various calculations. Corresponding factors may be the costs that affect the cost of production, the level of demand, which largely determines the revenue and profitability of the business.
Secondly, these are factors that in some cases are difficult to measure by means of cost estimates, but affecting the profitability of the enterprise’s activities. These include labor productivity in positions not related to the production process, for example, secretaries, HR managers, company executives.
Thirdly, these are factors that are formed outside the corporate environment, but affect the profitability indicators. Their essence may be different. Among those factors - the rate of the national currency or, for example, the policy of the legislator in the process of regulating commercial relations. In some cases, foreign policy communications are important. It happens that under the influence of processes taking place at an appropriate level, economic criteria fade into the background.
External and internal factors
It would be logical to classify the factors in question, into internal ones, with respect to communications carried out in the company and external ones. The costs that affect the cost of production - an example of the first. The political factor, the exchange rate, the legislative regulation can be considered, in turn, external factors of the economic efficiency of the enterprise.
Calculation of costs for the implementation of measures
Consider the aspect of the costs associated with measures that stimulate the economic effect. The formula for calculating them may look different. As a rule, in the structure of the relevant costs are taken into account costs that are associated:
- with the purchase of the necessary material resources (equipment, technology);
- with the remuneration of specialists - both those already working at the enterprise and those invited;
- with the necessary training of employees to use new material resources.
Of course, this list may be supplemented by other costs. For example, if the equipment was purchased on credit, then in the cost structure there will be interest paid to the bank. When managers of an enterprise calculate the economic effect, the formula used by them will include the totality of marked costs.
Methods to improve the economic efficiency of enterprises
By what methods can appropriate economic modernization of the enterprise’s activities be carried out? The calculation of the economic effect is carried out, first of all, in correlation with specific sources of innovation. What can they be?
First of all, it can be measures aimed at improving the use of resources that the specialists of the enterprise use in their work activities. The essence of these activities may consist in the acquisition of new PCs, machines, robots, etc. In this case, costs may be associated with the direct payment for the supply of relevant equipment, and, for example, with the organization of training for employees -that such items of expenditure can be recorded, we have already said above.
Activities implemented with the aim of gaining tangible social and economic benefits may be associated with an increase in the capacity of production lines so that the factory will begin to feel the need for more employees. Also, the process of release of goods can be upgraded in such a way that the company will need to attract highly qualified personnel with the necessary narrow specialization to work with new technological solutions.
Retraining can also be one of the methods to improve the economic efficiency of enterprises. At the same time, it is not necessary that new equipment will be purchased: the company's managers may well ensure an increase in the intensity of production by training specialists in innovative techniques for using current capacity. Evaluation of the economic effect in this case involves taking into account not only the direct costs that accompany the relevant event, but also indirect costs. That is, if an enterprise has sent its employees to specialized educational institutions, then in this case they will be taken into account as expenses related to the payment for the services of these institutions,and lost profit, which arose as a result of a pause in the process of release of goods, while specialists working on factory lines undergo retraining.
Another option to modernize the company's business activities is to improve the production structure. Employees in this case can continue to perform the same work on the old equipment, however, the mechanism characterizing the cycles of release of goods will be revised by managers. At the same time, the economic effect of the proposed measures to improve the structure of production can be extremely high, since in this case the company may not have any additional costs. The managers working in it, by virtue of their duties, perform similar tasks. It is expected that their qualifications will be enough to implement the relevant plans. But it is quite possible that the enterprise will decide to involve outside consultants in order to ensure the necessary adjustments to the production structure. In this case, the calculation of the economic effect will be based on the costs of paying for the services of specialists from other organizations.