PRODUCTION COST MANAGEMENT STRATEGY FOR OPTIMIZING LABOR PRODUCTIVITY IN INDUSTRIAL ENTERPRISES
Abstract
The article is devoted to the consideration of theoretical and practical issues of the influence of labor productivity on the cost of production, since cost is a key indicator of the economic activity of an industrial enterprise. It is determined that in the modern world labor productivity is directly related to the technical and innovative level of development of enterprises in the country. It has been established that states with a high level of technical and intellectual development are constantly modernizing and improving their production technologies in order to obtain high profits. It is noted that it is not easy for domestic enterprises to withstand the struggle for the product market with foreign manufacturers, since the modern buyer estimates not only the cost of the goods, but also its quality. It is well known that the main source of reducing the cost of industrial products is cost reduction by increasing labor productivity. Statistics show that the level of labor productivity in Ukraine is quite low; in order to change the actual situation, industrial enterprises need to manage profits wisely and look for reserves to increase labor productivity. The main factor for reducing production costs – is on increase of labor productivity as a general indicator of the use of labor resources. The efficiency of the use of labor resources is ensured by complex economic and organizational measures of management decisions at industrial enterprises. The main indicators of reserves for reducing production costs due to labor productivity and their impact on the example of PJSC “Zaporizhzhya Abrasive Plant” for 2017–2018 are analyzed. The estimated forecast of production cost by means of optimization of labor productivity at PJSC “Zaporizhzhya Abrasive Plant” is carried out. Based on the source data of the enterprise under study, the composition of the costs of the wage fund was analyzed. Its influence on the formation of cost and the final result, profitability of production is analyzed. Proposals were made to reduce costs due to the effective organization of work in production, optimization of personnel structure on investigated industrial enterprise.
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