Concentration of production

click fraud protection

concentration of production - the most important form of social organization of any company.It reflects the laws of economic development, despite the fact that its expression is not straightforward at different times and in different industries.

concentration of production - is the process by which it focuses on the largest enterprises.From its very name implies economic essence of this process, which is two-sided:

1. The steady increase in the specific share of large enterprises in overall production of a particular industry.

2. Continued growth in themselves the size of these large organizations.

concept of a large (large) companies is dynamic.Thus, in virtually all sectors of social production of their average size has increased by 4-5 times.The concentration of production takes a certain level, which is a whole system of indicators.The main one is the share of the largest industrial organizations in overall manufacturing industry:

TEC = Okk / Oop x 100%,

where TEC - the level of concentration in%,

Okk - volumes of the largest enterprises,
Oop - the total volume of the issueproducts.

volumes calculated in money, kind, conditional kind.Complementary indicator is the share of the largest industrial organizations in the various elements of production (mainly revolving fund, the total capacity, the number of personnel).

concentration of production occurs in two forms: cross-industry and industry.Interbranch means focusing production on all large enterprises, producing a variety of products.Their dimensions are increased in this case, due to different production sectors.This process is a variant of diversification.When the concentration of industry growth in the size of the enterprise and its specific share in the total volume of production is due to increase in output specific industry.Large-scale production significantly reduces the cost of manufactured products, so a large enterprise becomes more competitive.

concentration and centralization of production is the law of economic development.They are carried out under certain conditions, different for each industry.These processes vary in space, time and from one branch to another.

concentration of enterprises is developing on the basis of:

- the creation of specialized production with increased production of similar products;
- run universal plants with increased production of different products;
- the creation of large plants on the basis of the combined production;
- diversification of production.

Its reach in the following ways:

- use of the equipment and machines with more power;
- increase in the number of equipment, machines, production lines;
- the simultaneous increase in the number of devices, machines having the technical level and the use of more modern equipment;
- combining several related industries.

economic terms is considered to be the most optimal intensive path of development, in which the use of modern technology, using the latest equipment.In the analysis of the degree of concentration used relative and absolute performance.The relative concentration characterizes the distribution of the total production in this sector among all the enterprises of different sizes.This figure is to some extent characterizes the level of monopolization of enterprises.Absolute characterizes the size of the production of various enterprises.Its level is determined by the following indicators: volume of production, the average annual value of fixed production assets, the average number of employees.