Economic efficiency usually is the main indicator of the success of integrated business activities for any company in any industry.
In the simplest terms, production efficiency (EFE) implies a value of the ratio of the results achieved by the company or enterprise and industrial and commercial activity and the costs incurred by the firm or company to achieve this result.Quantitative parameters of this ratio is called the index of economic efficiency and is defined as the relative performance of the entire economic system (here we mean the full production and sales cycle for this particular company).Performance relative parameters determined by the fact that its figures are taken in comparison with indicators of resource costs.
As an integral index, production efficiency expresses the partition of performance indicators at different levels of the economic system (firms) and serves as a comprehensive summary characteristics of economic activity (from a particular company or division, to the economy of the country as a whole).At the same time, as an integrated option, he still possesses the qualities of universality, that is, with the same degree of efficiency characterizes any factors, whether economic efficiency of agriculture, industry, services, or economic efficiency of livestock production.
At the level of microeconomic analysis EFE is calculated as the cost of the final product to the costs of production minus one.This calculation is similar to and at the macroeconomic level, just as the first indicator, the value of all the country's GDP.In addition, calculations are indicative and individual factors of production - capital, personnel, land, means of production.This allows a more detailed analysis of the situation in a particular company or in the country as a whole and generate specific management decisions on the basis of cumulative technology, that is to concentrate investment and other resources on the weakest link in the economic process in terms of its effectiveness.
In global terms, the main criterion is the level of social production to meet the needs of people in the necessary social and economic benefits.A more narrow and specific content to this criterion appears the actual production efficiency, which is characterized by a number of special settings.The most important of these parameters is such an important and widely used indicator such as labor productivity, which expresses the quantitative aspect of production results in relation to the provisional figures.Also labor productivity, very succinctly describe the parameters of efficiency of capital productivity, profitability, and profitability and return on investment.
accepted that a cost-effective method of production in favor of such activities, at which the corresponding volumes of output for a given amount of a specific costs of its release.If the company can not sustain such volumes without additional resources, the production is considered to be ineffective.That is, the effective is the economic activity with the lowest cost.
In this context, the economic efficiency of production differs from the technical efficiency because it allows for a much broader set of indicators, such as compliance with product quality requirements of the market and consumer demands.
