How to increase the profitability of an enterprise. Ways to increase profitability at an industrial enterprise (using the example of the MAMZ unitary enterprise)

As noted above, profit is the final indicator of the activity of enterprises in the industry. This is also the most important economic indicator. However, profit does not show or characterize at what price it was achieved or with what amount of funds. Profit does not reflect the size of the production potential with which it is obtained.

To compare the amount of profit and the amount of funds used to achieve it in a sectoral economy, the indicator of profitability of production is used.

Profitability of production is the most general, qualitative indicator of the economic efficiency of production, the efficiency of functioning of enterprises in the industry. The profitability of production precisely commensurates the amount of profit received with the size of those funds - fixed assets and working capital, with the help of which it was obtained. These means used in production to obtain a certain profit are, as it were, its price. And the lower this price, i.e. The less funds required for the same amount of profit received, the more efficient production is, of course, and the enterprise operates with greater efficiency. All of the above is true in the absence of a fixed profitability, approved in a number of regions to maintain a certain price level. Over time this should not happen.

Profitability of production in itself general view in sectoral economics is defined as:

where P is profitability, %

P - amount of profit, rub.

OF - cost of fixed assets, rub.

OS - cost of working capital, rub.

The period of operation of an enterprise can be different - a month, a quarter, a year, and therefore the cost of fixed assets and working capital is calculated at an average value. The profitability of production can generally be determined in any time range, during any period of target operation, in order to know the effectiveness of the production operations carried out. As a rule, with stable operation it is calculated per quarter and per year.

In industrial economics, a distinction is made between general and estimated production profitability. The overall profitability is almost identical to the previously determined profitability:

Profit is taken in the form of a total, balance sheet amount, and the cost of working capital was determined up to its standardized part, which is incorrect. It is necessary to take into account the entire used value of working capital - own and borrowed.

Estimated profitability as an indicator of efficiency has lost its meaning and essentially does not have any practical significance. It can only characterize at what price and by what amount of funds the profit remaining at the disposal of the enterprise was obtained.

Of much greater interest is the indicator of product profitability, calculated as the ratio of profit to the total cost of production:

where Ri is product profitability, %

P - profit from sales of products, rub.

Sp - total cost of production, rub.

If there is only one product, then the formula takes the form:

where C is the unit price of the product

Cn is the total cost per unit of this product.

And the profitability of all sold (manufactured) products is calculated as the ratio of all profit received from the sale of products to the total cost of products sold.

This indicator is very important for making current and strategic decisions. During the analysis, this indicator shows the profitability or unprofitability of manufactured products, the degree of their profitability and unprofitability. In the market where the goal entrepreneurial activity- obtaining maximum profit, the enterprise, after such an analysis, must make an appropriate decision - get rid of unprofitable and low-profitable products and, conversely, increase highly profitable types of products. If the industry is subsidized or individual products are subsidized, then certain adjustments should be made.

Analysis of the profitability of individual types of products, as well as its entirety, will help to identify internal reserves for reducing product costs, ways to improve product quality for a possible corresponding increase in prices, which in any case will increase the profitability of products, and therefore improve the financial, socio-economic position of the industry enterprise.

As can be seen from the general formula for production profitability

its growth factors will be:

1. Amount of profit

2. Cost and efficiency of use of fixed assets.

3. Cost and efficiency of use of working capital

The higher the profit, the lower the cost of fixed assets and working capital it is achieved and the more efficiently they are used, the higher the profitability of production, and therefore the higher the economic efficiency of the industry. And vice versa.

Thus, from the factors of production profitability, the main ways to increase it follow.

In industrial economics, the most general ways to increase production profitability include the following.

1. All ways that increase the amount of profit.

2. All ways to improve the efficiency of use of fixed assets.

3. All ways to improve the efficiency of using working capital.

In economic practice, many specific profitability indicators are used. They all play a certain role in the economy. However, for a sectoral economy, for general view on economic processes, the indicators presented here are quite sufficient and correct.

In a normally functioning economy, the level of profitability of production in industry is in the range of 20-25%, and in agriculture - 40-50%.

Introduction

Profit is a multi-valued economic category. The effectiveness of commercial calculations, pricing and other economic levers of management depends on the depth of its knowledge and rational use. Being a source of production and social development, profit occupies a leading place in ensuring the self-financing of enterprises and associations, the capabilities of which are largely determined by the extent to which income exceeds costs.

Profit is a generalized effective indicator of the production and financial activities of an enterprise and the source of financial savings is profit. There is a lot of convincing evidence in the economic literature important role profit as an indicator that expresses long-term goals for the development of the enterprise’s economic activities; acts as a source of vital activity for the enterprise, the basis for self-financing of the enterprise’s activities.

But in order to assess how efficiently an enterprise uses resources, it is necessary to correlate profits and costs, that is, determine profitability.

Analysis of financial results allows us to identify reserves for increasing profits and profitability of the enterprise.

As a result, profit analysis has important practical implications. It allows you to identify the main factors of its growth, efficient use resources, potential capabilities of the enterprise, as well as determine the influence of external and internal factors on the amount of profit and the procedure for its distribution.

The purpose of the work is to analyze the profit and profitability of the enterprise Stroymaterialy LLC and find ways to increase them.

To achieve this goal, it is necessary to solve the following tasks:

• studying the essence of profit and the main indicators of profitability;
• identification of the main economic factors influencing profit and profitability indicators and their analysis;
• identifying ways to increase profitability at Stroymaterialy LLC.

The essence of profit, its functions, types

Indicators of financial results characterize the efficiency of the enterprise's management. The most important such indicators are profit and profitability.

Profit is one of the main indicators of planning and evaluation of the financial and economic activities of an organization.

Profit is the final result of entrepreneurial activity, in general terms representing the difference between revenue from sales of products and the cost of products sold.

Profit is formed by comparing income and expenses. The organization's income and expenses are presented in Fig. 1.

The essence of profit is expressed in its functions. The profit functions are presented in Fig. 2.

When costs exceed revenue, a business entity receives losses - this is an area of ​​critical risk, which puts the business entity in a critical financial situation that does not exclude bankruptcy. However, they also play a role. Losses highlight errors and miscalculations in the use of funds, organization of production and sales of products.

Consequently, profit is a source of income not only for the enterprise, its owners, employees, but also for the state. That is, the more efficient the economic activity, the greater the profit and, therefore, the more funds can be used to finance expanded production, social development and material incentives for workers.

Ways to increase profitability

The main ways to increase profitability are the following:

Increasing the amount of profit from product sales;

Cost reduction commercial products.

Ways to increase profits are determined for each type of commercial product.

Reserves for increasing profits:

Increasing the volume of product sales. To do this, you can launch the production of a new product, which is planned to be done at the enterprise.

Reducing production costs.

Increasing prices due to:

Quality improvement;

Search for more profitable markets;

Implementation in a more optimal time frame.

Sources of reducing the cost of industrial products:

1. Increasing production volume due to more complete use of the enterprise's production capacity.

2. Reducing production costs by increasing the level of labor productivity, economical use raw materials, materials, fuel, equipment, etc.

The growth factors of any profitability indicator depend on common economic phenomena and processes. This is first of all:

Improving the production management system in a market economy based on overcoming the crisis in the financial, credit and monetary systems;

Increasing the efficiency of use of resources by enterprises based on stabilization of mutual settlements and the system of settlement and payment relations;

Indexation of working capital and clear identification of the sources of their formation.

An important factor in the growth of profitability in the current conditions is the work of enterprises to save resources, which leads to a reduction in costs and, consequently, an increase in profits. The fact is that developing production by saving resources at this stage is much cheaper than developing new deposits and involving new resources in production.

Reducing costs should be the main condition for increasing profitability and profitability of production. The company plans to reduce costs by purchasing ready-made printed circuit boards. Previously, they were manufactured at the enterprise.

Profit as the main result of entrepreneurial activity meets the needs of the enterprise itself and the state as a whole. Therefore, first of all, it is important to determine the composition of the enterprise’s profit. The total profit of a business is gross income. The amount of gross income is influenced by a combination of many factors, both dependent and independent of business activity.

Important factors in profit growth that depend on the activities of enterprises are an increase in the volume of products produced in accordance with contractual terms, a reduction in its cost, an increase in quality, an improvement in the range, and an increase in the efficiency of use of production assets. Increased labor productivity.

Factors that do not depend on the activities of the enterprise include changes in state regulated prices for products sold, the influence of natural, geographical, transport and technical conditions on the production and sale of products, etc.

Under the influence of both those and other factors, the gross income of enterprises is formed.

Gross profit takes into account profits from all types of activities. First of all, gross income from the sale of marketable products, calculated by deducting value added tax and excise taxes from the total amount of revenue from the sale of these products (works, services). Revenue from sales of commercial products is the main part of gross income.

Secondly, gross income includes profit from the sale of other non-commodity products and services, i.e. profit (or loss) of subsidiary rural farms, motor vehicles, logging and other farms that are on the balance sheet of the main enterprise.

Gross income also includes profit from the sale of fixed assets and other property.

Finally, non-operating income and expenses are reflected in gross income, i.e. results of non-operating operations.

Due to the fact that enterprises receive the overwhelming majority of gross income (95 - 97%) from the sale of commercial products, this part of the income should be given primary attention. The factors noted above, both dependent and independent of the activities of the enterprise, affect mainly the income from sales of products. The main of these factors are subject to detailed study and analysis.

The most important factor influencing the amount of income from product sales is changes in the volume of production and sales of products. The larger the sales volume ultimately, the more profit the company will receive, and vice versa. The dependence of the profit of this factor with other equal conditions directly proportional. The thesis project will use this factor to improve profitability. It is planned to increase the production volume of one of the products.

A fall in production volume under current economic conditions, not counting a number of counteracting factors such as rising prices, inevitably entails a reduction in profits. Hence the conclusion about the need to take urgent measures to ensure growth in production volumes based on technical updating and increasing production efficiency. In turn, improving settlement and payment relations between enterprises will help improve the conditions for selling products, and consequently, increase profits.

No less important factor, affecting the amount of income from the sale of commercial products is a change in the cost of production. If a change in sales volume affects the amount of profit in direct proportion, then the relationship between the amount of profit and the level of cost is inverse. The lower the cost of production, determined by the level of costs for its production and sale, the higher the profit, and vice versa. This factor, in turn, is influenced by many reasons. Therefore, when analyzing changes in the cost level, the reasons for its decrease or increase must be identified in order to develop measures to reduce the level of costs for production and sales of products, and, consequently, increase profits.

In addition to the above factors, the amount of income from sales is, of course, influenced by changes in the structure of manufactured and sold products. The higher the share of more profitable products (calculated as the ratio of profit to the total cost of these products), the more profit the enterprise will receive. An increase in the share of low-profit products will lead to a reduction in profits.

In addition to profit from the sale of products, gross income includes profit from the sale of other non-commodity products and services. This profit accounts for several percent of gross income. The results from other implementations can be both positive and negative. Transport enterprises, subsidiary farms, trade organizations, which are on the balance sheet of an enterprise, may have from the sale of their products, works, services not only profits, but also losses, which will accordingly affect the volume of gross income.

Separate integral part Gross income includes profit from the sale of fixed assets and other property. Enterprises may develop excess material assets as a result of changes in production volume, deficiencies in the supply system, sales and other reasons. Long-term storage of these valuables in conditions of inflation leads to the fact that the proceeds from their sale will be lower than the purchase prices. Therefore, from the sale of unnecessary inventory items, not only profits are generated, but also losses.

The last element of gross output is non-operating income and expenses, i.e. those that are not directly related to the production and sale of products. These non-operating results include the following income (expenses): income from equity participation in the activities of other enterprises; income from property rental; dividends, interest on shares, bonds and other securities owned by the enterprise; amounts received and paid economic sanctions(fines, penalties, penalties, etc.).

Thus, in the gross income of an enterprise, the leading role is played by profit from the sale of products (works, services), a relatively small role of profit from other sales, as well as from the sale of fixed assets and other property, and the increasing importance of non-operating income and expenses in the context of business development.

Introduction........................................................ ........................................................ .......3

Chapter 1. Theoretical basis profitability management

enterprises........................................................ ........................................................ .6

1.1. The essence and concept of enterprise profitability.................................................6

1.2. Profitability indicators................................................... ...................10

1.3. Factors influencing increased profitability of work

enterprises........................................................ ...........................................25

Chapter 2. Analysis of enterprise profitability using an example

LLC "Sarvent S"................................................. ...........................................28

2.1. general characteristics enterprises........................................................ ....28

2.2. Organization of enterprise accounting................................................31

2.3. Organizational structure enterprises................................................36

2.4. Enterprise profitability analysis................................................................... .....38

Chapter 3. Ways to increase the profitability of an enterprise.................................47

3.1. Ways to increase and reserves for growth of trading profitability

enterprises........................................................ ...........................................47

Conclusion................................................. ........................................................ ...54

List of used literature......................................................... .........58

Application................................................. ........................................................ ..60

Introduction

Currently, in a market economy, more and more trading enterprises are appearing. Every company strives to make as much profit as possible at minimal cost. To ensure the profitability of his business, an entrepreneur should deeply analyze the current situation on the market, as well as within his enterprise. Achieving the main goal - maximizing profits - is possible only with proper and thoughtful planning of the activities of a trading enterprise.

There are two main indicators of the effectiveness of an enterprise's trading activities: profit and profitability. The first of them, strictly speaking, is the goal of the enterprise, the second indicator - the profitability indicator - allows you to accurately assess the level of development of a trading enterprise both as a whole and from various aspects.

A general indicator of economic efficiency is the profitability indicator. Profitability means the profitability of an enterprise. It is calculated by comparing gross revenue or profit with costs or resources used.

Based on the analysis of average profitability levels, it is possible to determine which types of products and which business units provide greater profitability. This becomes especially important in modern, market conditions, where the financial stability of the enterprise depends on the specialization and concentration of production.

In a market economy, the performance of a trading enterprise is assessed by a system of indicators, the main one of which is profitability. Profitability is defined as the ratio of profit to one of the indicators of the functioning of a trading enterprise. When calculating profitability, various profit indicators are used. Profitability indicators make it possible to identify not only the overall efficiency of a trading enterprise, but also to evaluate various aspects of its activities.

There are systems of profitability indicators, the main one of which is the indicator of the overall economic profitability of a trading enterprise.

The next indicator is an indicator characterizing the efficiency of using equity capital.

This indicator is important for shareholders of a trading company. It serves as a criterion for assessing the level of quotation of shares of a joint-stock trading enterprise on the stock exchange. This indicator allows investors to assess the potential income from investing in stocks and other securities. There is also an indicator of return on total capital, which is found by dividing the amount of profit by the amount of total capital.

Along with the main profitability indicators, it is used a large number of private indicators, such as: profitability of current costs (ratio of profit to distribution costs), profitability of living labor costs (ratio of profit to wages), profitability of working capital (ratio of profit to the average value of working capital), profitability of efficiency of use work force(ratio of profit to the number of workers employed at the enterprise), profitability of the efficiency of use of retail space, profitability of the efficiency of use of fixed capital, etc. Particular profitability indicators characterize the efficiency of use of certain types of resources by trading enterprises.

Profitability is one of the most important indicators of the economic activity of a trading enterprise, therefore, in the analysis, along with profitability indicators, their dynamics are used.

The topic of the thesis is of obvious theoretical and practical interest. The relevance of the topic is explained by the fact that the market economy necessitates increasing production efficiency primarily at the micro level, i.e. at the level of individual enterprises, since it is enterprises (with any form of ownership) that form the basis of a market economy.

The object of the study is Sarvent S LLC. The subject of the study is organizational and economic relations related to increasing the profitability of the enterprise.

The purpose of this thesis is:

Explore theoretical aspects, the essence and concept of enterprise profitability;

Identify key profitability indicators;

Conduct an analysis of the financial and economic activities of Sarvent S LLC;

Suggest measures aimed at increasing production profitability.

The following internal materials were used in this work:

Charter of Sarvent S LLC;

Regulations on accounting policy LLC "Sarent S";

Accounting statements for 2008 – 2009

The thesis consists of an introduction, three main chapters, a conclusion, a list of references and applications.

Chapter 1. Theoretical foundations of enterprise profitability management

1.1. The essence and concept of enterprise profitability

In economic analysis, the performance of enterprises can be assessed by indicators such as production volume, sales volume, and profit. However, the values ​​of the listed indicators are not enough to form an opinion about the effectiveness of its activities. This is due to the fact that these indicators are absolute characteristics of the enterprise’s activities, and their correct interpretation for assessing performance can only be carried out in conjunction with other indicators that reflect the funds invested in the enterprise. Therefore, to characterize the efficiency of the enterprise as a whole, the profitability of various areas of activity (economic, financial, entrepreneurial) in economic analysis, profitability indicators are calculated.

Profitability (from German rentabel - profitable, profitable), an indicator of the economic efficiency of production in enterprises. Complexly reflects the use of material, labor and monetary resources. An enterprise that makes a profit is considered profitable.

One more concept of profitability can be cited: profitability is an indicator representing the ratio of profit to the amount of production costs, monetary investments in organizing commercial operations, or the amount of property of the company used to organize its activities.

Profitability is divided as general - the percentage ratio of balance sheet (total) profit to the average annual total cost of production fixed assets and normalized working capital; and estimated profitability - the ratio of estimated profit to the average annual cost of those production assets from which payment for the assets is charged. An indicator of the level of profitability to current costs is also used - the ratio of profit to the cost of commercial or sold products.

Each enterprise independently carries out its production and economic activity on the principles of self-sufficiency and profitability. The enterprise has certain costs for the manufacture of products and their sale. These costs represent the production costs of a given enterprise (cost price), or individual costs. However, the costs of an individual product for enterprises may deviate from the average costs for the industry, which are taken as socially necessary costs or value, the monetary value of which is the price of the product. The presence of individual costs gives rise to the isolation of another part of the cost of production - profit, and, consequently, its relative measurement - profitability.

However, the absolute value of profit does not provide an idea of ​​the level and changes in the efficiency of production or trade. The amount of profit may increase, but production efficiency may remain the same or even decrease. This happens if the increase in profit is obtained due to extensive (quantitative) factors of production - an increase in the number of employees, an increase in the equipment fleet, etc. If, as the number of workers increases, their productivity remains the same or decreases, then production efficiency accordingly does not change or even decreases. Main distinctive features profitability in the system of trade and industrial relations are as follows:

The ratio of profit to production costs, characterizing the level of profitability of current costs (for the purchase of raw materials, materials, fuel, for depreciation of labor instruments, expenses for management and maintenance of production and wages of workers);

If you write return on sales as a formula, it might look like this:

• return on sales= net profit: sales volume × 100%;
• return on sales= operating profit: revenue × 100%,

where operating profit = gross profit - operating costs.

What will help you understand the profitability of sales:

1. Return on sales will help you understand what is actually happening with the sale of your main products. It is also expected to estimate the share of cost in general process sales
2. Sales profitability makes it possible to control the pricing policy and costs of the enterprise. Various companies use different techniques and strategies that cause differences in profitability ratios. However, even with the same revenue, operating expenses and profit before taxes, companies' return on sales will vary.
3. Return on sales does not reflect the planned effect of long-term investments. If a company plans to change a technological system or purchase innovative equipment, a slight decrease in the profitability ratio is possible. However, when making the right choice modernization strategy, it will restore its original indicators, with their improvement.

Ways to increase sales profitability

Offer a choice of regular and VIP products. This option is common among booksellers. From them you can purchase not only a standard book for 200 rubles, but also a more expensive gift option, which will cost, say, 1,500 rubles.

Additional opportunities for buyers. At Natali Kovaltseva, in order to increase sales margins, it was decided to offer economical LEDs and a control panel along with the standard lamp - making the products more interesting for customers. Yes, the cost of goods increased by 15-20%, but the profitability was 30%.

Offer companion products when placing an order. This method has been adopted by many online stores. When a buyer views products, he sees the position “ perfect couple“- the service, for example, automatically selects accessories that match the style of your handbag.

Launch new products more often. As a rule, the cost of new products is more expensive compared to products from the old collection.

Maintaining statistics. A chain store once analyzed the profitability of brands in its catalog by comparing sales statistics before and during a sale. Brands with maximum margins were identified. After this, the brands are divided into three price categories - good, average and best. The store ultimately identified its brands with the highest profitability, increasing their share of overall purchases. The store eventually managed to achieve an increase in sales profitability of 12%.

Offer an exclusive. Thanks to the creation and production of exclusive designs, the company can increase its profits compared to standard solutions. Thanks to the exclusive manufacture of products and original products, the manufacturer of lighting fixtures achieved an increase in margins by 30%, reaching the level of 60%.

6 ways to increase your sales profitability

1. Selling more expensive goods. First, we attracted the client with a good and inexpensive Chinese product, he buys and leaves satisfied. However, the return on sales does not suit you. But it will not be possible to put a high markup on such a product. How to achieve sales of more expensive products? In this case, the basis for increasing sales profitability is personal relationships with the client. You should not offer him a more expensive product - you should ask his opinion about this product.

2. Motivation of managers. Fixing the maximum discount percentage. For cheaper sales, the manager needs to agree on an additional discount with the head of the sales department or commercial director. The profitability of sales in this case may be determined by plans for subsequent cooperation with a promising client or the promise of a large order, and not by the manager’s desire to carry out the plan at any cost.

The manager's bonus percentage should depend on meeting the sales profitability plan. The company's sales percentages can be multiplied by a certain coefficient to motivate employees to fulfill the sales profitability plan. This indicator can be 1-1.2. In particular, when the corresponding plan is fulfilled, the coefficient will be 1. If it is overfulfilled, it will be 1.2.

Calculation of the variable part of the salary as a percentage of lost gross profit from received payments.

Encourage the manager to sell particularly profitable products. To do this, the company can assign bonuses for the sale of goods two to three times higher in comparison with other product positions.

3. Level of service. One of the most common questions is how to achieve high-value sales. In fact, the principle and procedure here is clear. It is necessary to achieve an increase in the value of its products, which will exceed its price. The procedure for increasing the value of products can be as follows:

1. Providing free shipping
2. Clear deliveries
3. Sales training for your partners.
4. Ease of ordering on the company’s website, availability of a personal account for a wholesale buyer;
5. The friendliness and competence of their consultants.

4. Increasing the number of items in a receipt. The most natural way to increase sales profitability is to increase the length of the check. The most indicative thing in this regard is sales on the b2c market. Therefore, it is the length of the check that becomes one of the criteria for sellers.

To understand what services or goods you can expand your bill with, you need to step into the client’s shoes. You should understand what difficulties the client may encounter in the process of purchasing a product, what related products he may need or would be interested in. Don't be afraid to try - only proactive individuals achieve success. If a customer purchases something in your store, this already indicates trust. Therefore, it will be easier for him to sell the following goods.

5. Reduce costs. When agreeing on a cost budget, we abandon everything useless - everything that will not help increase our sales. We do not participate in exhibitions. Instead, they placed a big bet on targeted communication to their clients, including potential ones. We conduct individual presentations, targeted mailings, etc.

6. Increase in product prices. However, this principle should be used carefully, taking into account the sensitivity of consumers to serious changes; they may choose another, more stable product. However, some adherents remain trademark ready to purchase goods at any price. You should definitely remember this.

It is generalizing and showing it. After all, a sufficient level of profitability indicates the level of profitability of the enterprise, its profitability. In this regard, increasing the profitability of the enterprise is a key area of ​​activity for increasing income.

How it is calculated by comparing the volume or profit of the enterprise with the production costs incurred or the volume of resources used. By analyzing the average level of profitability, you can determine which products and which divisions of the enterprise produce required level profitability and which ones are unprofitable. This information in a competitive market economy is very important, because financial indicators directly depend on the concentration and specialization of production.

Increasing the profitability of an enterprise in a situation of increased competition is a primary task.

As is known, the main source of free Money The enterprise is revenue from the sale of manufactured products. In this regard, the key activity of the subject is to increase the profitability of production by reducing costs and observing the economy regime, as well as effective application resources available to the enterprise.

After all, these costs determine the level of income and the cost structure. The volume of costs for raw materials occupies a significant share, and therefore, increasing the profitability of the enterprise and reducing the cost of manufactured products will significantly affect the increase in profits. Thanks to this, it is possible to increase profits, which will affect the organization’s break-even performance. In addition to reducing the cost of producing goods, increasing the profitability of sales also significantly affects the increase in the number of products sold. To increase sales, in addition to marketing activities, products must be produced that meet consumer requirements and will be in stable demand.

Each enterprise must have responsible units on an ongoing basis that analyze the cost of manufactured products, as well as implement a full-scale program to reduce it. It must be comprehensive, taking into account all possible factors that influence the formation of production and sales costs.

Positive influence measures aimed at optimizing the working time used increase the profitability of the enterprise.

These include:

Maintaining an optimal number of working personnel;

Reducing costs for units that are related and do not participate in production;

Constant work to improve the level of qualifications of employees, through which labor productivity will improve, ahead of the average wages;

Using progressive payment systems, increasing workers' interest in improving productivity;

Automation of production processes, which reduces labor costs;

Increasing work motivation.

Reducing operating and management overhead costs is also essential. production process. This is facilitated by an increase in production volumes through reconstruction, technical renovation of the enterprise, reducing the size of the administrative and management apparatus and support services, as well as by improving the production management process.