GENERALIZATION OF PRODUCTION ACTIVITY EFFICIENCY INDICATORS OF ENTERPRISES USING FACTOR ANALYSIS
Abstract
The article is devoted to the development of a methodological approach to assessing the efficiency of production activities of enterprises, which is based on the generalization of efficiency indicators using factor analysis methods. The use of these methods allows, by generalizing efficiency indicators, to significantly reduce their number, which significantly simplifies the analysis of the efficiency of production activities of enterprises, their comparison, and the selection of the best among them. The approach proposed by the authors is based only on objective information about the production activities of the enterprise; it does not require the use of subjective expert assessments. The statistical data on the results of production activities necessary for the analysis are available to each enterprise, and their volume is minimal. The approach proposed by the authors is illustrated by a specific example: based on data on the production activities of ten enterprises, it was necessary to assess the efficiency of this activity and select the most efficient enterprise. The following indicators were used as the five primary efficiency indicators by which the assessment was carried out: labor productivity of one average annual employee, product profitability, return on capital of fixed assets of production, labor capitalization of one average annual employee, and profitability of fixed assets of production. Using the iterative algorithm of G. Hotelling's method of principal factors, it was possible to leave only two generalized factors in the analysis instead of five primary ones. The informativeness of the first generalized factor was 88%, and the second - 93%. The total commonality of the initial reduced correlation matrix was reproduced by 92%. According to the values of two generalized efficiency indicators, the two most efficient ones were selected from ten enterprises. The method of principal factors and other methods of factor analysis are implemented programmatically in all common statistical packages: STATISTICA, SPSS, etc. The number of primary indicators of the efficiency of the enterprise's production activities can be increased if necessary.
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