Analysis of the use of material resources in the enterprise

Any product that is produced in a factory or factory requires costs, which requires certain material resources. The same thing happens in the trade and economic sphere, where the level and condition of resources depend not only on the company's ability to compete with other producers, but also on survival itself on the market. In this regard, the competent management of the firm periodically analyzes the use of material resources, which makes it possible to clarify such issues as the rationality of the use of a given raw material, the efficiency of training of internal staff, compare information software with competing firms, and so on.

One of the most important elements of improving and rationalizing production is the use of an integrated approach, which includes the use of more efficient materials, a reduction in the cost of production, an increase in the output of goods, and an improvement in the financial condition of the company. Periodic renewal of the range and expansion of production opportunities is conditioned by the growing demand of the population for material things.

The material resources of the enterprise are raw materials, various materials, electricity, fuel, components and semi-finished products that the firm buys and uses to use all this in trading activities. Due to this, the manufacturer has the opportunity to provide services or conduct economic activities.

Analysis of the use of material resources includes the solution of the following tasks:

- study of the impact of various factors and groups on the change in the material intensity of finished products;

- assessment of the impact of material and technical support and supply on the volume of products and the cost of work;

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

- Identification of losses, as well as equipment downtime due to the lack of materials and components in the warehouse;

- Determination of the level of the provision of the subject is required by all resources, which are divided according to grades, brands, types and terms of supply.

By analyzing material resources, you can find out the real picture of all that is spent at the enterprise and in connection with this already adjust the plan for the near future. It is noteworthy that material resources are gradually transferred to material costs, as a result of which the company's capital turnover is ensured. When calculating the total cost of material resources are about 70%, which indicates a high material consumption of products. Decrease of this indicator is the most important task at each enterprise, as it will enable the company to conduct economic activity with a big advantage among competitors.

A competent analysis of the use of material resources necessarily includes the accounting of so-called production wastes, which are inevitable in any production. Growth of volumes of production is connected both with optimization of expenses, and with growth of efficiency of all manufacture as a whole. A holistic relationship of all composite indicators can be reflected in the following formula:

V = M3 * Mo or V = M3 * (1 / Me) (5.1), where

Material consumption of products is Me

Material output of products is Mo

The amount of material costs is the MoH

As a result, you can determine the volume of output (V) and determine the percentage compliance of all the components of the main indicator. A qualitative analysis of the use of material resources is a very important factor that has a direct impact on the entire economic activity of the company.

Summing up, it should be emphasized once again that the material resources of any firm play a major role in its trade and economic activities. In this regard, the analysis of the use of material resources of the enterprise is extremely necessary, since it allows to optimize all costs and reduce the cost of manufactured products.