Efficiency included. Why efficiency and profitability are two different things. What key performance indicators are used

04.07.2020

G. Kazarinov

Before trying to talk about freelancers, I would like to immediately indicate my position on such an issue as the efficiency of the use of labor resources.

It seems to me that hiring a freelancer is no different from hiring an employee under other types of employment contracts. That is, the question, in my opinion, is not the employee - in this case, the freelancer - but the employer. To what extent the employer clearly understands whom he attracts in what areas of activity. How clearly calculated is the need to involve one or another employee in order to most effectively follow the goals and objectives of the employer.

Thus, I would like to build my reasoning in the context of the effectiveness and expediency of a freelancer in the interests of the employer. Freelancers can be loved or not loved. The main thing is to clearly understand the following: if here and now, in order to fulfill a clearly formulated task, the most the best option is a freelancer - we work with him. If this option, among others, is less effective, then why do we need such a labor resource?

When we opt for a freelancer, we must also understand that nothing human is alien to him (laziness, whims, ingratitude, etc.), and make an absolutely qualified selection of candidates. Just like when we hire all the other workers. Let me emphasize once again that we must clearly formulate the purpose of this cooperation. The art of managing an employee - whether he is a freelancer or not - is a separate topic, there are many theories, even more practice, but all of them are applicable, in aggregate or separately, in specific realities.

I would like to focus my attention not on the employee, but on the employer. The more detailed the task of the business, and hence the task of this particular employee, is worked out, the more understandable it is for the employer, and therefore, the more clearly formulated for the employee. As soon as there is clarity of goals and objectives, then much in management becomes easier. Let me explain. It's not a secret for anyone that in many enterprises it is very difficult to create a transparent and understandable technical task for the implementation of certain stages of work. And if expectations are not clearly formulated, what should be demanded from the performer?

It is also necessary to talk about the content of a freelancer in the state of the enterprise only from the standpoint of efficiency. Whether the employee is efficient or not. Only this question is important. And then according to the principle "every worker has his own price." Effective for business - we pay this price, if not, we don't pay. Everything else should be unimportant. In my opinion, the benefits of cooperation with a freelancer for any employer, along with such "little things" as workplace and other delights, is as follows. It is much easier and more efficient to deal with a "virtual" employee and get the result of his work than to deal with a real person. Comments are superfluous.

Big business, like any other, should not love or dislike anyone. Here, in my opinion, there should be movement in opposite directions. As soon as a business, including a large one, realizes that hiring freelancers is beneficial to it, it will “love” them. In turn, this will happen when freelancers offer a better set of services, and this, accordingly, is associated with an improvement in the qualifications of people who position themselves as freelancers.

Speaking of coercion in cooperation with a freelancer, it must be remembered that coercion to work is slavery. Slave labor is inefficient. But talking about "love" is also useless. There must be a clear motivation for cooperation - both the employee and the employer.

In connection with the foregoing, the competent building of industrial relations, the employer must begin with himself. Let's think about whether the employer needs hypocrisy in the relationship with the employee. Indeed, for any manager, sincerity and transparency in relations with an employee are more effective, and not his “mandatory smile”.

With the proper building of industrial relations with a freelancer, any employer should take a pragmatic approach to this kind of relationship and avoid the dependence of the main business process on one person, even a genius. It is not difficult to foresee this, the main thing is to be able to see, and even better, to be able to qualitatively calculate the prospect.

“Freelancers, as free people, constantly bring some interesting news, funny “gadgets” that enliven the standard technologies of the project ...” And this idea has the right to life. It is only necessary to avoid a situation where “gadgets” become the main contribution of an employee to the project technology.

How many freelancers should work at the enterprise? No need to chase the fashion for a new word. There should be as many as needed. No more and no less. And some recommendations should be followed, clearly understanding that these are just recommendations.

With a competent and clear construction of work, freelancers have exactly the same number of minuses as other workers. If these disadvantages “pull back”, do not contribute to the efficiency of work, no matter how the employee is positioned, freelancer or not, they do not cooperate with him. They say that a freelancer is lonely - in every sense of the word. Loneliness - as a human condition (like any other feelings or emotions) - is possible after hours.

And in conclusion, I would like to dwell on the “chosenness of God” of freelancers. In December, I read in one blog that a freelancer is the God of his world. And after the author asked the question: “And to whom and for what should God be grateful?” And the following answer was born: "God (freelancer) should be grateful to clergymen (employers) - for the fact that they do not let people forget about God."

Establishing clear performance criteria in effective contracts, on the basis of which it is possible to realistically evaluate the performance of an employee and assign appropriate incentive payments to him, in practice remains difficult. The Ministry of Culture proposed its own approach to solving this problem. The Federal Ministry issued guidelines, which clearly showed what the interconnection of indicators from the federal level to a particular employee is.

About Introduction to Industries social sphere interconnected systems of performance indicators from the federal level to a specific institution and employee have been discussed for a long time. In particular, the need for such a step in order to improve the system of incentive payments in institutions was indicated in sec.IV Program approved Decree of the Government of the Russian Federation of November 26, 2012 No. 2190-r(Further - Program No. 2190-r).

However, how exactly the general targets set at the federal level can be transformed into specific indicators applicable to the work of institutions and their employees was not further explained. This gap was filled by the Ministry of Culture by proposing a methodology for “transferring” indicators “from general to specific”. And although the recommendations are intended for use by cultural institutions and their founders, they can also be useful to institutions with a different profile of activity. Let's dwell on the main provisions of this technique and reinforce them. regulatory framework related to different industries.

Where to look for indicators?

The main targets that determine the development of a particular industry are approved in state and federal targeted programs . So, in the state program "Development of culture and tourism" the following indicators are given:

the number of visits to cultural organizations in relation to the level of 2010 (reflects the demand among the population for state and municipal services in the field of culture);
an increase in the number of cultural and educational events held by cultural organizations in educational institutions, compared to 2012 (demonstrates the success of involving students and pupils educational institutions in cultural activities);
an increase in the number of Russian laureates of international competitions and festivals in the field of culture in relation to 2012 (indicates an increase in the level of professional skills of Russian participants in these competitions and festivals); and etc.

In turn, the state program "Development of Education" sets, for example, the following targets:

availability of preschool education;
the ratio of the average USE score in 10% of schools with the best results to the average USE score in 10% of schools with the worst results;
proportion of graduates of organizations vocational education last year graduation, employed in the received specialty;
coverage of the population with programs of additional professional education.

Guidelines for the development of institutions, and hence, for increasing the efficiency of their activities, are also set in other documents of the federal, regional and municipal levels. In particular, road maps , developed in the public sector sectors, contain their own systems of indicators that refine indicators from state programs.

Next level - departmental lists of state (municipal) services (works) formed by the founders. These lists indicate the names of services, categories of consumers, units of measurement of services and indicators characterizing their quality. These points correspond to the targets set in the state programs and are the main indicators of the effectiveness of institutions. It is important that the indicators given in the lists are quantitatively measurable and can be compared for similar reporting periods (month, quarter, half year, year).

Then comes a level that is even closer to the institutions - the establishment by the founder state (municipal) task . It defines “targeted” performance targets for each specific institution.

On this basis, an effective contract is based, concluded with the head and employees of institutions. Targets from the state task are either directly reflected in the specified contract (this is possible in the case of a manager, whose performance is often equated with the performance of the institution), or are broken down into more specific indicators (for employees).

The relationship of performance indicators established in federal regulations and descending to the level of a particular employee of the institution, we will present in the form of a diagram.

In this way, a unified system of performance indicators is being built . It defines the goals, objectives and indicators of development of a particular industry, measures to achieve them at the level of institutions and a mechanism for bringing performance indicators to each employee. In turn, the fulfillment of the parameters set for the employee and the institution contributes to the achievement of the overall goals specified in the state programs and road maps.

Criteria for managers

The establishment of indicators at the top four levels displayed in the diagram belongs to the powers of the authorities and the founders. Efficiency indicators are, as a rule, communicated to institutions in the appropriate columns of the state (municipal) task (or in an agreement on the provision of subsidies for financial support for the implementation of the state task). However, difficulties often arise precisely when indicators are “transferred” to a lower level, that is, when criteria are established in effective contracts.

For the first persons of institutions, the criteria for effectiveness are also determined by the founder. These positions directly affect the amount of incentive payments, the conditions for receiving which must be reflected in the employment contract with the manager ( type form agreement approved Decree of the Government of the Russian Federation of 12.04.2013 No. 329). Such a relationship will help to increase the efficiency of the head, and hence the implementation of the goals and objectives set for the institution.

The Ministry of Culture in the recommendations under consideration notes that the performance indicators of institutions, provided with statistical accounting, serve as the basis for the development of appropriate criteria for managers and are disaggregated into performance indicators for the main category of employees. Conversion of the aggregated indicator to the original components (that is, disaggregation) is the essence of the methodology proposed by the Ministry.

However, the effectiveness of the work of the head is still determined based on the achievement of indicators set for the institution for the corresponding period, as well as on the basis of the use material resources and the labor capital of the institution (in other words, the performance indicators in this case are usually not disaggregated). And here it is important to take into account indicators in two planes:

obligatory achievement of volumetric indicators at the expense of the financial capabilities of the institution (budget allocations, funds received from optimization measures, funds from income-generating activities);
mandatory achievement of quality indicators through more efficient use of all resources of the institution (material, financial capabilities, as well as labor capital and the human factor).

Fulfillment of these requirements serves as the basis for the accrual of incentive payments to the head in the prescribed amount.

In addition, in order to objectively evaluate the work of the first persons of institutions, the founders, according to the Ministry of Culture, when developing regulations on the remuneration of managers subordinate institutions it is advisable to provide:

Criteria for deputies and heads of departments

The development of performance indicators for specific employees, linked to the performance indicators of the institution, is the prerogative of the head of the institution. According to the provisions sec.IVProgram No. 2190-r such indicators are set locally regulations institutions, collective agreements, agreements and labor contracts.

When developing these criteria, the manager needs to take into account that the performance indicators of the institution are achieved through the individual work of each employee, as well as through their joint activities. Therefore, there is a need to disaggregate one indicator into another.

In particular, when defining criteria for deputy heads and chiefs structural divisions it is proposed to take into account the distribution of activities among executives. And since in this case the results of collective work should be evaluated , for the management, both aggregated (defined for the institution in the state or municipal assignment) and disaggregated indicators should be established. If necessary, you can summarize the disaggregated performance indicators of the employees of the relevant unit.

For example, if the indicator “Average occupancy of the hall at the stationary (main stage), excluding experimental performances (%)” is set in the state task for the theater, the head of the audience department, the head of the sales department, the head of the press services. For these employees, this indicator can be transformed into the following: "Number of spectators according to tickets sold (planned/actual)", "Number of outreach activities with spectators (planned/actual)".

Criteria for employees

With regard to the performance indicators of employees, the Ministry of Culture also proposes to apply two levels of their calculation and, accordingly, assessments for remuneration:

normative (included in the terms of payment according to the official salary);
incentive (provides for various incentive payments for achieving parameters that exceed the standard performance levels job duties).

The performance indicator can be the level of performance by the employee of his duties (labor standards). As a rule, the individual performance of an employee is compared with the average values for the institution and, in case of their significant excess, is stimulated by the establishment of a bonus for a certain period for high achievements in work.

In addition, they can be used additional criteria (in the case when the degree of their manifestation in an employee exceeds the average):

initiative;
reduction of deadlines for the performance of work against the established deadlines;
contributing to the achievement of the overall performance of the unit in which the employee works;
transfer of work experience to other members of the team;
commendable reviews about the employee from the consumers of the services of the institution; and etc.

The established indicators should be communicated to specific employees in the form of an appendix to the employment contract and, if necessary, as part of their job (work) instructions.

Disaggregation Method

essence this method, used primarily in the establishment of employee performance indicators, is to identify in the composition job description specific employee types of work or labor function directly affecting the performance of the corresponding indicator. The quantitative and qualitative characteristics of the work that determine the effectiveness of the work of a specialist are accepted as disaggregated indicators of its effectiveness.

The Ministry of Culture gives an example of disaggregation. One of the indicators established for evaluating the activities of cultural and leisure institutions is the number of cultural and leisure activities held by the institution (units). The fulfillment of this indicator depends on the employees of the following positions: a specialist in the methodology of club work, a director of mass performances, a manager of cultural and mass leisure, a cultural organizer, leaders of club formations, a manager of a dance evening, a disco host, a head of the musical part of a disco. For these employees, the following indicator of their activity can be set: “The number (share) of cultural and leisure activities prepared or conducted with the participation of the employee (according to plan / actually)”. This criterion, like the indicator for the institution, has a quantitative dimension.

In relation to a particular employee, several disaggregated indicators can be set at once. For example, for club leaders criteria may be as follows.

Disaggregated indicator	Performance indicator set for an employee
Number of members of club formations compared to the previous year (%)	The number of regular visitors served by a specialist, including on a paid basis (according to plan / actually)
Number of cultural and leisure activities held by the institution (units)	Number (share) of cultural and leisure activities prepared or carried out with the participation of the employee (according to plan / actually)
Share of activities aimed at development creativity children and youth in the total activities of the institution (%)	The number of regular visitors served by a specialist - children, including on a paid basis (according to plan / actually)
Number of laureates of international, all-Russian, interregional and regional competitions and festivals (persons)	The number of members of the relevant club formations participating in international, all-Russian, interregional and regional competitions and festivals (persons)

Incentive conditions

On the basis of information on the achievement of performance indicators, incentive payments are assigned to employees. To do this, the institution should adopt an appropriate regulation that spells out the procedure and conditions for making such payments.

For example, a provision could specify that bonuses are paid on the basis of:

submitted reporting data on the implementation of employee performance indicators for the reporting period (month, quarter, year);
established deadlines for submitting reports;
an explanatory note that describes the work done to achieve each indicator and indicates the reasons for the decrease (increase) in the implementation of the indicators.

Reports, as a rule, are submitted by the heads of the relevant structural divisions or deputy heads in charge of one or another area of the institution's activities, and decisions on the payment of bonuses are made by a specially created commission. If the employee has met all the target indicators, the maximum amount of evaluation criteria is set for him and, accordingly, the bonus is paid in full (100%). If the indicators are not met or not fully met, the amount of the bonus is reduced in proportion to the sum of the collected evaluation criteria.

Conclusion

Let's summarize what has been said. In order to switch to effective contracts with employees, an institution must have:

state (municipal) task and performance targets approved by the founder;
a system for evaluating the effectiveness of employees' activities (a set of indicators and criteria that allow assessing the quantity and quality of labor expended). When developing such a system, the disaggregation method can be used;
a wage system that takes into account differences in the complexity of the work performed, as well as the quantity and quality of labor expended.

Then it is necessary to include in employment contracts with employees (for example, by concluding additional agreement) detailed (taking into account industry specifics) official duties, performance indicators and conditions for accrual of incentive payments. At the same time, it is important to remember that, due to the requirements of the Labor Code of the Russian Federation, employees are responsible to the employer only for the fulfillment of the labor duties established by them, set out in job (work) instructions and fixed in employment contracts.

Guidelines for linking the system of sectoral performance indicators in the field of culture from the federal level to a specific institution and employee approved. Circular letter of the Ministry of Culture of the Russian Federation dated 08/05/2014 (published on the official website of the department mkrf.ru).

"The program for the gradual improvement of the wage system in state (municipal) institutions for 2012 - 2018."

See, for example, government programs for the development of culture and tourism, education, health, sports, approved. according to the Decrees of the Government of the Russian Federation of April 15, 2014 No. 317, No. 295, No. 294, No. 302.

For example, at the federal level, the orders of the Government of the Russian Federation approved. "road maps" in the field of culture (dated 28.12.2012 No. 2606-r), education and science (dated 30.04.2014 No. 722-r), healthcare (dated 28.12.2012 No. 2599-r).

For federal state institutions, departmental lists are approved, for example, by orders of the Ministry of Culture of the Russian Federation of December 15, 2010 No. 781, of the Ministry of Health of the Russian Federation of December 24, 2013 No. 1058n, of the Ministry of Sports of the Russian Federation of October 14, 2013 No. 801, and also by the Ministry of Education and Science of the Russian Federation of July 18, 2014 No. AP- 47/18.

This requirement complies with the provisions of clause 9 of the Regulations on the establishment of wage systems for employees of federal budgetary, autonomous and state institutions, approved. Decree of the Government of the Russian Federation of 05.08.2008 No. 583.

Approximate form employment contract with an employee of the institution, taking into account the principles of an effective contract, is given in Appendix 3 to Program No. 2190-r.

EFFICIENCY

(efficiency) Achieving some specific results at the lowest possible cost or obtaining the maximum possible output from a given amount of resources. Consumption efficiency means the distribution of goods among consumers in such a way that no other redistribution can improve someone's consumption without worsening other people's consumption. Efficiency of production means the distribution of available resources among industries in such a way that it is impossible to increase the production of any goods without reducing the production of other goods. The efficiency of choosing goods for production means choosing such a range (or nomenclature) of goods, the change of which, designed to improve the consumption of a certain category of consumers, is impossible without simultaneously worsening the consumption of other categories of consumers. Efficiency is often referred to as Pareto optimality.

Economy. Dictionary. - M.: "INFRA-M", Publishing house "Ves Mir". J. Black. General editorial staff: Doctor of Economics Osadchaya I.M.. 2000 .

EFFICIENCY

relative effect, effectiveness of a process, operation, project, defined as the ratio of the effect, result to the costs, expenses that caused, ensured its receipt.

Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B.. Modern economic dictionary. - 2nd ed., corrected. Moscow: INFRA-M. 479 p.. 1999 .

Economic dictionary . 2000 .

Synonyms:

Antonyms:

See what "EFFICIENCY" is in other dictionaries:

Efficiency … Spelling Dictionary

efficiency- Relationship between the result achieved and the resources used. [GOST R ISO 9000 2008] efficiency The property of an object to satisfy the requirements for a service with given quantitative characteristics. Note This property depends on... ... Technical Translator's Handbook

- (lat. efficientia) achieving any specific results with the lowest possible costs or obtaining the maximum possible volume of production from a given amount of resources. Contents 1 In economics 2 In the natural sciences ... Wikipedia

Efficiency- 1. One of the most common economic concepts do not yet have, apparently, a single generally accepted definition. In our opinion, this is one of the possible (most important, but not the only!) quality characteristics ... ... Economic and Mathematical Dictionary

Useful action, return, coefficient useful action, efficiency; productivity, productivity, efficiency, effectiveness; fruitfulness, reality, efficiency. Ant. inefficiency, inefficiency, unproductiveness, ... ... Synonym dictionary

- (efficiency) 1. Technical efficiency(technical efficiency). An indicator of a manufacturer's ability to produce the maximum amount of acceptable quality products with a minimum input of production factors. It is said that one company ... ... Glossary of business terms

efficiency- and, well. effectif, ve adj. Efficient property. The efficiency of the power plant. BAS 1. The troupe traveled all over Russia and everywhere aroused delight with their choir; it was said that the accessories of the booth were arranged to the last degree of efficiency. FROM.… … Historical Dictionary of Gallicisms of the Russian Language

- (X efficiency) Part of the overall concept of efficiency. Its essence is the possibility of achieving the maximum technically permissible output of products with given resources, or the production of a given volume at the lowest cost used ... ... Economic dictionary

- [efe], efficiency, pl. no, female (book). distraction noun to efficient. The effectiveness of activities. Explanatory Dictionary of Ushakov. D.N. Ushakov. 1935 1940 ... Explanatory Dictionary of Ushakov

In macroeconomic analysis, the indicator of the output of goods and services in the calculation: per unit of costs; or per unit of capital expended; or per unit total costs all production resources. Synonyms: Productivity, Productivity See ... ... Financial vocabulary

When studying questions regarding the prospects of investing in a particular undertaking, the most important criterion is the economic efficiency of the project. In order to avoid misunderstandings in the business environment, there are generally accepted indicators economic efficiency investment projects. They characterize the initiative from different angles, including in terms of lean manufacturing which helps the investor to make informed decisions.

What key performance indicators are used

Any project according to design standards consists of two parts: descriptive and calculation. If the first describes the very essence of the idea, the prospects for its implementation and promotion of goods on the market, then the second contains technical and financial calculations, including the calculation of performance indicators. The definition of economic efficiency is understood as a certain result obtained after a comparison of the level of profitability of production to the resources used and the total costs of it.

The essence and economic efficiency is to get maximum amount products from available resources with the condition of their payback and profit. This concept is multifaceted, it is impossible to evaluate it by any one indicator, it is necessary to approach the issue comprehensively.

The economic efficiency of an investment project is usually evaluated according to the following criteria:

net present value (), or NPV;
internal rate of return (IRR);
internal modified rate of return (MIRR);
yield index (PI);
payback period seed investment(PP);
payback period, discounted for the change in the value of money (DPP);
weighted average rate of return on investment (ARR).

Many specialists, when analyzing the economic efficiency of an investment project, do not study all the indicators in detail, limiting themselves to 3-4 of the most significant of them. It mainly depends on the field of activity or industry in which it is supposed to invest.

a separate enterprise;
legal or to an individual acting as an investor;
shareholders who have invested in the undertaking;
higher level structures;
budgets of different levels;
society in general.

This implies different criteria for the effectiveness of investment projects for different participants:

The effectiveness of the undertaking as a whole characterizes the project implemented by a single participant for his own money. It is analyzed in order to find additional sources of funding or attract other participants.
Effective participation in common project includes indicators of the participation of shareholders, banks, enterprises, various structures (industry or regional) and budgets (from local to federal).

If there are several participants in the implementation of the initiative, then their interests will not necessarily coincide, especially in terms of the priority of the implementation of certain processes. For each participant, special cash flows are formed, and they can expect different results. Therefore, for each of the participants separately, an analysis of the effectiveness of the investment project is carried out.

Absolute criteria by which the project is analyzed

Let us dwell in more detail on those performance indicators of the investment project that characterize the success of investing in the proposed initiative.

First of all, it is considered present net worth, since it characterizes in absolute terms the amount of money that an investor can receive during the life cycle of an undertaking. To calculate the economic efficiency of the project according to this criterion, you need to have information about the nature of the cash flows (expenditure or income) and their distribution over time.

Usually the most significant expense occurs in the pre-production period (preparation of documentation and product development), as well as the time the product is launched. Subsequently, costs are sharply reduced (or stopped altogether), and incomes grow. To calculate this indicator, use the following formula:

NPV is the current net value of the invested money;

ICo - the size of the initial investment;
CFt - cash flow from investment in t - year;
n is the duration of the initiative (its life cycle);
r is the value of the discount rate, it can be the alternative or weighted average cost of capital, the rate of return or the bank lending rate.

Consider an example of calculating the present net worth. The owner invested $200,000 in equipment upgrades. We set the discount rate at the level of profitability of the enterprise - 12%. The return by years, starting from the first accounting year, is:

1 year - 40 thousand dollars;
2 year - 60 thousand dollars;
3 year - 80 thousand dollars;
4 year - 100 thousand dollars

If we substitute these values into the formula, we get the following picture:

NPV = - 200000 + 40000 / (1 + 0.12) + 60000 / (1 + 0.12)2 + 80000 / (1 + 0.12)3 + 100000 / (1 + 0.12)4 = - 200000 + 35714 + 47831 + 56943 + 63552 = $4040.

The net present value of the investment is positive, but its size is small, which should alert the investor, since the indicator can become negative with any market fluctuations. In addition, the discount rate, which we considered as a constant, is a dynamic indicator and can change depending on various factors (refinancing rate, inflation rate, market prices in a particular industry). Therefore, the assessment of the effectiveness of such an initiative is generally positive, the cash flows it generates reimburse costs and increase the value of the company. However, if the main task is to maximize profit, then in this case, with a low positive result, the risks of losses are quite large.

The considered formula shows a situation in which the investor makes only an initial contribution (one-time), but in practice this happens infrequently, since in most industries you cannot do without operating capital and overhead costs. Therefore, taking into account these factors, the formula will take the following form:

ICt = investment investments in the period from i (0) to t;
r is the discount rate;
n is the life cycle of the attachment.

No less important for investors is the issue of how quickly they will return their capital invested in the project. No one wants to freeze their assets in a long-term initiative with high degree depreciation of money. Therefore, the faster the investment returns, the more likely it is to put this money into circulation again.

The calculation of efficiency necessarily includes the calculation payback period of initial investment. Exists general formula, which looks like this:

PP is the payback period for initial investments;
Io is the volume of the initial investment;
CFt is the flow of funds in the t-year;
t - time periods.

The calculation is even more simplified if the conditions allow calculating the average return on investments over the period. Then the following formula is applied:

where CFcr is the average annual (average monthly, average quarterly) income from the initial investment.

However, this approach has a significant drawback - it does not take into account changes in the value of money over time. Therefore, a more effective way is to determine the payback period, taking into account discounting.

r is the discount rate of money;
CFt is the size of the flow in year t.

Based on the formulas under consideration, you can see that the repayment period, taking into account the discount, is always higher than in a simple formula. For clarity, we will solve a simple problem using both methods. The initial parameters are as follows: the purchase of new equipment cost the owner of the plant 150 thousand euros, the income for the first three years is 50, 100 and 150 thousand euros, respectively.

In a simple method, summing up the income of the first and second years (50,000 + 100,000), we get an indicator of 150 thousand, which indicates that the payback period is exactly two years, and starting from the third year, the owner will pay back the investment and make a profit, you can don't even use the formula.

What will we see if we introduce a discount rate of 15% into the calculation? We will have to bring all annual incomes to the present value:

1 year - 50000 / (1 + 0.15) = 43478 euros;

Year 2 - 100,000 / (1 + 0.15) = 86,956 euros;

Year 3 - 150,000 / (1 + 0.15) = 130,435 euros.

Accordingly, the average annual rate of return for the first 2 years will be:

CFcr = (43478 + 86956) / 2 = 65217.

DPP = 150000 / 65217 = 2.3 years, or 2 years 4 months.

This indicator gives a clear vision of how long it will take to cover the costs incurred, but it has a significant drawback: it cannot be used to understand how financial flows outside the payback period. Consequently, the understanding that is being studied may be distorted.

The above indicators of economic efficiency differ in that they show the result in absolute terms (monetary units and units of time). In addition to them, there are a number of criteria for the potential success of an undertaking, which have the form of numerical coefficients and are more difficult to understand.

Relative Project Success Rates

The calculation of the effectiveness of an investment undertaking can be characterized by several more indicators.

Yield index- This is a coefficient that gives the concept of profitability of each invested monetary unit at a particular point in time. It is calculated like this:

If we apply this formula to the initial data of the problem, on which we calculated

NPV, then you can determine the profitability index:

PI= (35714 + 47831 + 56943 + 63552) / 200000 = 1,02

Thus, we get a result indicating that each dollar invested brings 2 cents of income.

Internal rate of return is calculated based on the condition that the invested investments are equal to the generated by them cash flow subject to discounting.

IRR is the internal rate of return.

This criterion represents the rate of return (average) over the full life cycle of the initiative. In addition, he points to the marginal rate of return of the undertaking, below which it is unacceptable to fall. If the IRR value is below or equal to the discount rate, then the project may become unprofitable, this indicator is used when deciding which business proposal to accept.

With regard to our example, let's try using the method of successive approximation to determine the value of IRR. Consider that NPV at a rate of 12% was quite small ($4,040), so let's try to calculate the indicator by applying a discount rate of 13%:

NPV = - 200000 + 40000 / (1 + 0.13) + 60000 / (1 + 0.13)2 + 80000 / (1 + 0.13)3 + 100000 / (1 + 0.13)4 = - 200000 + 35938 + 46989 + 55444 + 61330 = - $299.

Based on this result, we can conclude that the rate proposed in the initial condition of 12% is equal to IRR, since when the rate changes upwards, the net value, taking into account the discount, becomes negative. Therefore, it is not worth investing at a rate greater than 12% in this project.

If the project is large-scale and requires large investments, then the owner or shareholders may decide to invest part of the profit in the implementation of the undertaking (reinvestment). In such cases, a modified calculation mechanism is used. The formula for the rate of return of the internal modified:

r is the discount rate;
d is the weighted average cost of capital;
CFt - cash flows in year t;
ICt are investment flows in year t;
n is the number of periods.

At the same time, MIRR is always less important than IRR, since the investments of each year are also given at the rate at the start of the project, and all income is at the end of the initiative. It is more accurate than IRR in assessing the state of an investment, taking into account positive and negative inflows.

There is another criterion for the success of an undertaking - investment project efficiency ratio(ARR), which is tied to the payback period, and is its reciprocal.

If there is an indicator of the average annual return on capital CFcr, the coefficient is calculated as follows:

PP is the payback period of the initiative.

If the entire life cycle is calculated, then the formula looks like this:

where If denotes the liquidation cost of the project, which is determined as a result of the sale of all equipment and property after the completion of all work. The PP / 1 formula is applicable when If is equal to zero.

We calculate the coefficient in our problem:

ARR = 280 / 4 / 200 = 0.35, or 35%.

Applying the principles of analysis that were discussed in the article, you can consider different options, choose the most suitable one from them. In addition, a comprehensive study of the proposed initiatives at an early stage will help to avoid some risks and control the increase in the efficiency of the investment project.

Controlling efficiency in lean manufacturing

In recent decades, in developed countries, and now in Russia, there are more and more supporters of the so-called lean production in industry. The most common systems of this kind are: 5S, TQS, Just-in-time, TPM, Multi-process work.

The essence of lean manufacturing is to increase productivity and economic performance through the quality of management and reduce waste. Based on this, management develops a policy and strategy for the enterprise, which is aimed at using resources only for purposes that give a real return. At the same time, not only the work of the entire company, but also of each of its structural divisions is evaluated, which requires the development of a unified assessment methodology (qualitative and quantitative):

a qualitative assessment is made based on production indicators and the quality of products;
quantification - on economic indicators based on financial statements.

General reporting in the evaluation of lean manufacturing in an enterprise may include the following sections:

completeness of the implementation of planned activities;
losses in a particular unit at the beginning and end of the reporting period;
the effectiveness of the introduction of new technologies (in volume, natural and monetary terms) and justification of their costs;
methodological and factual materials (drawings, diagrams, methods, regulations, technological processes).

It is possible to minimize problems or completely solve them only as a result of the complex application of all the tools inherent in lean manufacturing.

It is important to identify hidden losses and neutralize them. The analysis of the efficiency criteria of lean production is carried out after determining the goals and priorities, as well as determining the relationship between the tools of such production and hidden losses, i.e. which tool how reduces certain losses. The closer the planned and actual values, the better.

1. Express diagnostics of the financial and economic state of the enterprise: allows, based on the analysis of data from the previous period of activity, to identify and show causal relationships between individual events and the existing financial result companies, predict the most likely scenarios for the development of the economic situation in the future, introduce the necessary adjustments to goals and objectives to achieve the intended result, correctly assess the efforts required for this.

2. Express assessment of the market value of an enterprise (business): is done as soon as possible according to a certain methodology based on the data provided by the enterprise.

3. Comparative comprehensive assessment of the effectiveness of a number of parameters of individual territorial structural divisions of the enterprise

4. Implementation in the subject of the Russian Federation on the basis of the sectoral ministry (or its departmental subdivision) of an information technology complex for planning, control and management production activities in crop production.

The wide possibilities of the complex allow:

ensure planning, constant monitoring and control of the use of agricultural land throughout the territory of the subject;

carry out digitization (digital mapping) of all agricultural land with the assignment of appropriate numbers to them and the provision of information about their intended purpose and the current state, to create on its basis a single subject (regional, regional, republican) base of lands;

lead comparative analysis efficiency of land use, both in the context of districts and in the context of enterprises, including leased land masses of the municipal and state forms property;

carry out land zoning according to the type and qualitative composition of soils, types of agricultural land, the content of basic nutrients;

control in real time the sources of ignition, the progress and volumes of execution field work, the emergence and development of dangerous weather and climate phenomena, pests, plant diseases and other adverse factors;

to rank the commodity producers of the subject into groups according to the levels of production development (taking into account the indicators of productivity, production cost, etc.);

rank municipalities and enterprises according to the social level of development;

display the placement and progress of investment projects;

to monitor and evaluate the production, economic and social processes taking place in the region, to have a timely (leading) impact on them;

improve the reliability of data provided by producers on the gross harvest of various crops;

to use expanded opportunities for managing the industry by regional (territorial, republican) executive authorities and local government significantly improve the quality and efficiency of their work.

The complex was developed on the basis of Russian software. Its implementation involves the use of satellite monitoring systems, data satellite images and aerial photography, agrochemical survey of land, statistical data, cadastral and other information.

During the development and operation of the complex, special attention was paid to security issues. All information, software and the database is stored on the own server of the organization that installed it. The complex is adapted for use by regional executive authorities and large agricultural enterprises.

Analysis of what is happening in modern agriculture processes indicates the need to improve the quality of operational management of the industry, its strategic planning, which is impossible without systemic control of their progress. special attention also requires the efficient use of state and municipal agricultural lands under lease. The complex is the best way to solve these problems.