Average annual production per employee

Efficient use of resources is a condition that ensures the implementation of production plans. For the purpose of analysis, the organization’s staff is divided into production and administrative. Based on the name, it is clear that the first group includes workers directly involved in the main activities of the enterprise, and the second group includes all the rest. For each of these groups, the average annual output is calculated and the quality of labor utilization is analyzed.

Basic concepts

In the course of labor analysis, labor productivity is investigated . It shows how many products are manufactured per hour (day, month, year). To calculate this indicator, you need to determine the average annual output and labor intensity. They best reflect labor efficiency. Increased productivity leads to higher production volumes and lower salaries.

Resourcing

Of great importance is the number of employed people in the enterprise. When analyzing the supply of labor resources, the actual number is compared with the planned and indicators for the previous period for each group of workers. A positive trend is the one in which the average annual output grows against the background of a change (decrease) in the number of any of the groups of employed employees.

The reduction of support staff is achieved by increasing the level of specialization of people engaged in the adjustment and repair of equipment, the growth of mechanization and the improvement of labor.

The number of employees is determined by industry standards and the rational use of working time necessary to perform certain functions:

1. Workers: H = Labor input: (Annual fund of working time * Coefficient of performance standards).

2. Hardware workers: H = Number of units * Number of workers in this area * Load factor.

Qualification Level Analysis

The number of employees by specialty is compared with the normative. The analysis reveals the surplus (shortage) of workers in a particular profession.

The assessment of the qualification level is calculated by summing the tariff categories for each type of work. If the actual value is below the planned, then this will indicate a decrease in product quality and the need to improve the qualifications of personnel. The opposite situation suggests that workers need to pay an additional payment for qualifications.

Management staff is checked for compliance with the level of education of the position. The qualification of an employee depends on age and length of service. These parameters are also taken into account in the analysis. The specific gravity of employed and retired employees is calculated, including for negative reasons. At the next stage, the use of working time by such an algorithm is analyzed:

1. Nominal mode = 365 days - The number of days off and holidays.

2. Appearance mode = Nominal mode - The number of days of absenteeism (vacation, illness, absenteeism, decision of the administration, etc.).

3. Useful fund of working time = Turn-around mode * Duration of the working day - The number of downtime, breaks, reduced hours.

Loss of working time

The working time fund (FRV) is the product of the number of employees (H), the average number of days worked per year by one person (D) and the length of the day (T). If the annual average production is lower than planned, then the time losses are calculated:

• = ( - ) * * - daily.
• Tp = (Tf - Tp) * Df * Bf * H - sentries.

The reasons for such losses may be absenteeism to work with the permission of the administration, due to illness, absenteeism, downtime due to lack of raw materials or equipment malfunction. Each of these reasons is analyzed in detail. A reserve for increasing FRV is to reduce losses, which depend on the labor collective.

Separate time losses are calculated in connection with the manufacture and correction of defective products according to this algorithm:

- the proportion of workers' salaries in production costs;

- the amount of salary in the cost of marriage;

- the share of workers' salaries in the cost minus material costs;

- the proportion of the salary of workers involved in the correction of marriage;

- average hourly wage;

- the time spent on the manufacture and correction of the marriage.

Reduction of losses = Loss of time * Average annual output.

Losses can be compensated not only by a decrease in production volumes, but also by an increase in labor intensity.

Performance

This indicator reflects the ratio of the volume of manufactured (sold) products to the number of employees. In this case, generalizing, partial and auxiliary coefficients are calculated. The first group includes, in particular, the average annual output. Formula:

B = Volume of production / Number of employees = Volume of production / Amount of time spent.

The change in average annual output may be due to:

• adjustment of the number of employees;
• decrease in labor input;
• increase in non-production costs;
• labor organization - the growth of day-long downtime, absenteeism with the permission of the directorate, due to illness, truancy;
• change in product structure.

Numeric indicators are the time in kind calculated for one person-day (person-hour).

Labor input

Labor input is the time spent on manufacturing a unit of production:

Tr = FRVi / FRVo, where:

• FRVi - time to create the final type of product;
• FRVo - the general fund of working time.

Annual average production is the inverse indicator of labor input:

• T = Cost of time / Volume of production.
• T = Headcount / Volume of products.

In order to calculate the productivity of one employee, in the above formula in the numerator you need to put a unit. The average annual output per worker is the inverse indicator of labor intensity. It not only reflects the performance of a particular employee, but also makes it possible to draw up a plan for next year.

With a decrease in labor intensity, labor productivity increases. This is achieved through the introduction of scientific and technical progress, mechanization, automation, revision of production standards , etc. The complexity should be analyzed not only with planned indicators, but also with other enterprises in the industry.

The development and labor intensity reflect the results of real work, on the basis of which it is possible to identify resources for development, increase productivity, save time, reduce staff.

Performance index

This is another indicator of employee performance. It shows productivity growth rates.

Δ = [(1 - 0) / 0] * 100% = [(1 - 1) / 1] * 100%, where:

• B1 - the average annual output of one employee in the reporting period;
• T1 - the complexity of the reporting period ;
• B0 - the average annual output of a worker in the base period;
• T0 - the complexity of the base period;

As can be seen from the above formulas, the index can be calculated according to production and productivity.

Changes in the index are determined based on the planned savings in headcount:

ΔPT = [E / (H - E)] * 100%, where E is the planned population reduction.

The index shows the change in performance in the base period compared to the previous one. Productivity depends on the competence of workers, the availability of necessary equipment, financial flows.

Alternative

The following formula allows you to calculate more accurate performance:

P = (Volume of production * (1 - Downtime rate) / (Labor costs * Number).

With this approach, idle hours are not taken into account. The volume of production may be expressed in units, labor or monetary units.

Factor analysis

Since labor productivity is calculated on the basis of the quantity of products manufactured per unit of time, it is these indicators that are subject to detailed analysis. In the course of calculations, the level of task fulfillment, tension, growth in output, reserves for productivity growth and their use are determined.

Factors that affect labor productivity can be grouped in groups related to:

- increasing the technical level;

- improvement of labor organization;

- advanced training of employees, the level of education of workers, strengthening discipline and improving the system of accrual and payment of salaries.

Labor productivity is analyzed in the following areas:

• an assessment of the level of generalizing indicators;
• factors affecting hourly average production are analyzed;
• reserves for increasing productivity are identified;
• investigated the complexity of products.

Example 1

Based on the data presented in the table below, you need to determine what the company has an average annual and hourly average output.

Productivity gain due to reduced labor intensity:

- according to plan: (4.7 * 100) / (100-4.7) = 4.91%;

- in fact: (9.03 * 100) / (100 - 9.03) = 9.92%.

The labor-intensive plan was overfulfilled by 4.33%. As a result, the average annual output increased by 5.01%.

Features

• The number of employees in optimal conditions should be calculated on the average. Each employee is counted once a day.
• Performance can be determined by revenue data from the statement of financial performance.
• Labor and time are also reflected in the accounting documentation.

Other indicators

The average productivity is determined if there is a large number of products with different complexity, according to this formula:

Vsr = Σ Volume of production of a product type * Labor input coefficient of a product type.

The value (K _i ) at the positions with the minimum complexity is equal to one. For other types of products, this indicator is calculated by dividing the labor intensity of a particular product by the minimum.

Labor productivity per worker:

Pr = (Volume of output * (1 - K _i ) / T.

The same indicator can be calculated on the basis of balance sheet data:

Pr = (p. 2130 * (1 - K)) / (T * H).

Productivity must be constantly improved through the use of new equipment, training of workers, organization of production.

Payroll (wage bill)

The analysis of the wage bill begins with the calculation of the deviations of the actual (wage bill) and planned (wage bill) salaries:

FZPa (rub) = FZPf - FZPp.

The relative deviation takes into account the implementation of the production plan. To calculate it, the variable part of the salary is multiplied by the coefficient of fulfillment of the plan, and the constant part remains unchanged. Piecework salaries, bonuses for production results, vacation pay and other payments, which depend on the volume of production, relate to the variable part. Salaries calculated at tariffs relate to the fixed part. Relative deviation of the wage bill:

FZP = FZP f - (FZPper * K + ZP post.).

Further, factors are analyzed, due to which these deviations arise:

• volume of production (O);
• production structure (C);
• specific labor intensity of products (UT);
• salary for one person-hour (OT).

FZP per = O * C * UT * OT.

Before analyzing each of the factors, it is necessary to carry out intermediate calculations. Namely: define the FZP variable:

• according to plan: FZP pl = O * C * OT;
• according to plan, taking into account a given volume of production: FZP conv. 1 = FZP pl * K;
• according to the plan, calculated with the actual volume of production and structure: FZP conv. 2 = O * YT * OT;
• actual at specific labor intensity and a given level of labor remuneration: wage protection standard conv. 3 = Of * Utf * Otf.

Then you need to multiply each of the obtained values ​​by the absolute and relative deviation. So you can determine the influence of each of the factors on the variable part of the salary.

The constant part of the wage bill is affected by:

• headcount (H);
• the number of days worked per year (K);
• average shift duration (t);
• hourly average wage (PPP).

FZP f = H * K * t * ChZP.

The influence of each of the factors on the final result can be determined in exactly the same way. First, the changes of each of the four indicators are calculated, and then the obtained values ​​are multiplied with absolute and relative deviations.

The next stage of the analysis is the calculation of the effectiveness of the use of the wage bill. For expanded reproduction, profit, profitability, it is necessary that productivity growth is ahead of the growth of wage protection. If this condition is not met, then there is an increase in cost and decrease in profit:

• earnings (J ) = Average salary for the reporting period / Average salary for the planning period;
• annual average production (J pt) = Production for the reporting period / Production for the planning period;
• labor productivity: (To _op ) / To _{op =} J pt / J sn;
• FZP saving: E ​​= FZPf * ((J zp - J fr) / J zp).

Example 2

Based on the above data, it is necessary to calculate the output:

• production volume - 20 million rubles;
• the average annual number is 1,200 people;
• over the year, the organization’s employees worked 1.72 million people / h and 0.34 million people / day.

Decision:

1. Hourly production of one worker = Volume of production / Spent man-hours = 20 / 1.72 = 11.63 rubles.
2. Daily output = 20 / 0.34 = 58.82 rubles.
3. Annual output = 20 / 1.2 = 16.66 rubles.