How to determine the annual output

Instruction
Planning of production depends largely on the direction of the enterprise. If manufactured products of daily demand, the main criteria for calculating its volume are the capabilities of the company for production and marketing. An important role is played by the issues of timely receipt of raw materials, if it is necessary.
In the event that an enterprise is busy with the production of fairly complex piece products, in order to determine the volume of annual output, it is necessary to pre-form a portfolio of orders. For example, an enterprise produces forge presses or bridge farms. Such goods are not sold in the store, it is necessary to receive orders in advance. Having a portfolio of orders and knowing the capabilities of the enterprise, you can easily determine the annual volume of output.
Of great importance in determining the volume of output is the correct determination of the level of demand.If demand increases, the number of products can be increased. If falls, production volumes must be reduced. To determine the level of demand, different methods are used - for example, graphical, in which sales figures are plotted on a chart. Analyzing the graph, you can evaluate the existing patterns and predict the future increase or decrease in demand. Of great importance and expert assessments associated with the analysis of the current market situation.
According to the results of the analysis of the situation, a production program of the enterprise is drawn up, in which the annual volume, nomenclature and timing of the release of goods demanded by the market are determined. The program specifies the indicators of production that must be achieved within certain calendar periods. With this in mind, the work of all departments of the enterprise is also planned.
The planned production program should be consistent with the capabilities of the enterprise, that is, its production capacity, which determines the maximum possible annual output. Production capacity is determined at the beginning of the year (input power) and at its end (output power).The first is calculated taking into account the available production assets, the number of employees and other necessary resources. The second is determined at the end of the year, taking into account the changes that have occurred - in particular, changes in demand. With proper planning, it is necessary to closely monitor the dynamics of demand and, when it falls, take the necessary measures. For example, to update the range of products, to improve its characteristics.


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