The average annual capacity of the enterprise is determined. Calculation of production capacities

Production capacity is a calculated indicator of the maximum or optimal production volume for a certain period (decade, month, quarter, year).

Optimal production volume they calculate to determine the moment at which the fact of providing the products with the needs of the market will be achieved, as well as the necessary stock of finished products in case of a change in the situation on the market or force majeure.

Calculation of the maximum production volume necessary for the analysis of the reserve of products, when the company is working at the limit of its capabilities. In practice, to visualize production capacity, an annual production plan (production program) is drawn up.

Production capacity of the enterprise evaluate in order to analyze the level of technical equipment of production, to identify intra-production reserves for increasing the efficiency of using production capacities.

If the production capacity of the enterprise is not fully used, this leads to an increase in the share of fixed costs, an increase in cost, and a decrease in profitability. Therefore, in the process of analysis, it is necessary to establish what changes have occurred in the production capacity of the enterprise, how fully it is used and how this affects the cost, profit, break-even and other indicators.

Calculation of the production capacity of the enterprise

Production capacity is determined both for the entire enterprise as a whole, and for individual workshops or production sites. To determine the maximum possible volume of output, the leading production sites are taken as a basis, which are involved in the main technological operations for the manufacture of products and perform the greatest amount of work in terms of complexity and labor intensity.

Power calculation

In general productive capacity (PM) of the enterprise can be calculated using the following formula:

PM \u003d EPI / Tr,

where EPI is the effective fund of the enterprise's operating time;
Tr - the complexity of manufacturing a unit of production.

Efficient working time fund calculated based on the number of working days in a year, the number of working shifts in one working day, the duration of one working shift, minus the planned loss of working time.

As a rule, enterprises maintain statistics on the loss of working time (absenteeism due to illness, study leave, etc.), which can be reflected in the balance of working time necessary to analyze the use of working time by employees of the enterprise.

Let's calculate the production capacity of Alfa LLC, which manufactures chairs. If the enterprise works in eight-hour work shifts only on weekdays, we will use the data of the production calendar for the corresponding year and find data on the number of working days in a year.

The effective fund of the enterprise will be:

EFI \u003d (247 working days x 8 hours) - 14.2% \u003d 1693 h.

The complexity of manufacturing a unit of production should be reflected in the internal regulatory documents of the enterprise. As a rule, for each type of product, a manufacturing enterprise forms the standard labor intensity, measured in standard hours. In our case, consider the standard for the manufacture of one wooden chair at a manufacturing enterprise, equal to 34 standard hours.

Productive capacity Alpha LLC will be:

PM = 1693 h / 34 standard hours = 50 units.

The calculation takes into account the amount of equipment. The more equipment an enterprise has, the more products of the same name can be produced. If an enterprise has one machine required for the production of wooden chairs, then it will produce only 50 units per year, if two machines - 100 units. etc.

note

The value of production capacity is dynamic, during the planning period it may change due to the commissioning of new capacities, modernization and increase in equipment productivity, its wear and tear, etc. Therefore, the calculation of production capacity is carried out in relation to a certain period or a specific date.

Depending on the calculation time, input, output and average annual production capacity are distinguished.

1. Input production capacity (PM in) - the maximum possible volume of output at the beginning of the reporting or planning period (for example, January 1). We will conditionally consider the indicator calculated above as the input production capacity of the enterprise.

2. output production capacity (PM out) is calculated at the end of the reporting or planning period, taking into account the disposal or commissioning of new equipment or new production facilities (for example, December 31). Calculation formula:

PM out \u003d PM in + PM pr - PM vyb,

where PM pr is the increase in production capacity (for example, due to the commissioning of new equipment);
PM vyb - retired production capacity.

3. Average annual production capacity (PM sr/g) is calculated as the average of the enterprise's capacity in certain periods:

PM sr / g \u003d PM in + (PM pr x T fact1) / 12 – (PM select? T fact2) / 12,

Where T fact1 - the period (number of months) of input of production capacity;
T fact2 - the period (number of months) of the disposal of production capacity.

When calculating the production capacity, all available equipment (with the exception of reserve equipment) is taken into account, taking into account the full load, the maximum possible fund of its operation time, as well as the most advanced methods of organizing and managing production. They do not take into account equipment downtime caused by deficiencies in the use of labor, raw materials, fuel, electricity, etc.

Comprehensive capacity assessment

For a comprehensive assessment of the use of production capacities, the dynamics of the above indicators, the reasons for their change, and the implementation of the plan are studied. To analyze the use of production capacity, you can use the data in Table. 1.

Table 1. Use of the production capacity of Alfa LLC
Index	Indicator value		Change
Index	last year	reporting year	Change
Output volume, pcs.
Production capacity, pcs.
Increase in production capacity due to the commissioning of new equipment, pcs.
Level of production capacity utilization, %

According to the data in Table. 1 during the reporting period, the production capacity of the enterprise increased by 522 products due to the commissioning of new equipment, and the level of its use decreased. The reserve of production capacity in the reporting year is 11.83% (in the previous year - 4%).

The production capacity reserve is considered to be 5 % (to eliminate malfunctions and normal functioning of the enterprise). In this case, it turns out that the created production potential is not fully used.

Production capacity is the material basis of the production plan, therefore, the justification of the production program by calculations of production capacity is the main link in production planning. For production planning, they also use the calculation of the production capacity of machine-type equipment based on the effective time fund of each type of machine (Table 2).

Table 2. Production capacity of the enterprise by types of equipment
Index	Type of equipment
Index	equipment number 1	equipment number 2	equipment number 3
Number of equipment, pcs.
Effective equipment time fund, h
Total effective equipment time fund, h
The norm of time for the product, h
Production capacity of the enterprise by types of equipment, pcs.

In practice, it is also used analysis of the degree of use of production areas, calculating the indicator of the output of finished products per 1 m 2 of production area, which to some extent complements the characteristic of the use of the enterprise's production capacities (Table 3).

Table 3. Analysis of the use of the production area of the enterprise
Index	Indicator value		Change
Index	last year	reporting year	Change
Output volume, pcs.
Production area, m 2
Production output per 1 m 2 of production area, pcs.

If the indicator of output per 1 m 2 of the production area increases, this contributes to an increase in the volume of production and a decrease in its cost. In the case under consideration (see Table 3), we observe a decrease in the indicator, which indicates an insufficient use of production space.

note

Incomplete use of production capacity leads to a decrease in the volume of output, an increase in its cost, since there are more fixed costs per unit of production.

Equipment fleet wear analysis

Analyzing the condition of the equipment, special attention is paid to its physical and moral wear and tear (equipment can completely fail due to wear and tear).

Physical deterioration- this is a loss of consumer value or material wear (change in consumer properties or technical and economic indicators). Physical wear is characterized by the gradual wear of individual elements of equipment under the influence of various factors: the service life, the degree of loading, the quality of repairs, corrosion, oxidation, etc.

An assessment of the degree of physical wear and tear is necessary, since the consequences of wear are manifested in various aspects of the enterprise's activities (in a decrease in the quality of products, a drop in equipment power and a decrease in its technical performance, an increase in the cost of maintaining and operating equipment).

Obsolescence This is functional wear. Equipment wears out due to the appearance of new means of labor, in comparison with which the social and economic efficiency of old equipment is reduced.

The essence of obsolescence is to reduce the initial cost of equipment as a result of the emergence of more modern, productive and economical types.

The main factors determining the amount of obsolescence:

frequency of creation of new types of equipment;
duration of the development period;
degree of improvement of technical and economic characteristics of new technology.

The situation is considered ideal when the period of physical wear and tear coincides with the moral one, but in real life this is extremely rare. Obsolescence usually sets in much earlier than the life of the equipment expires.

To ensure a continuous production process, there are the following main depreciation forms: repair, replacement and modernization. For each type of equipment, the technical services of the enterprise determine the optimal ratio of forms of wear compensation that meets the requirements of the organizational and technical development of the enterprise in modern conditions.

Depreciation

Equipment, being a durable object, wears out and transfers its value to products gradually, through depreciation. In other words, this is the accumulation of funds for the restoration of equipment, which is made in parts due to wear and tear.

According to the Tax Code of the Russian Federation, depreciable property is property with a useful life of more than 12 months and an initial cost of more than 100,000 rubles.

Depreciation deductions- this is a monetary expression of the degree of depreciation of fixed assets (OS), which is included in the production costs and forms a source of funds for the purchase of equipment to replace worn out equipment or a way to return capital advanced in equipment.

Depreciation groups and their respective useful lives are established in accordance with Decree of the Government of the Russian Federation dated January 1, 2002 No. 1 (as amended on July 7, 2016) “On the Classification of Fixed Assets Included in Depreciation Groups”. At the same time, the residual value of fixed assets is determined as the difference between the initial cost and the amount of depreciation of fixed assets.

Calculate depreciation amounts by years(linear method) (Table 4).

Table 4. Accounting for depreciation of equipment in the company "Alfa"
Name of fixed asset	Depreciation group	Useful life	Initial cost, rub.	Annual depreciation amount, rub.	Years of operation of fixed assets
Name of fixed asset	Depreciation group	Useful life	Initial cost, rub.	Annual depreciation amount, rub.	first	second
Equipment No. 1
Equipment No. 2
Total			103 664,88	51 832,44

When the entire cost of the fixed asset is transferred to the cost of manufactured products at the expense of depreciation, then the amount of deductions will correspond to the original cost of the fixed asset, depreciation will no longer be charged.

Economic efficiency of using fixed assets

To analyze the economic efficiency of the use of fixed assets, a number of indicators are used. Some indicators give an assessment of the technical condition, others measure the output of finished products in relation to fixed assets.

Indicators characterizing the technical condition of the equipment

Wear factor (To out) reflects the actual depreciation of fixed assets:

K out \u003d Am / C first x 100%,

where Am - the amount of accrued depreciation, rubles;
From the first - the initial cost of fixed assets, rubles.

Alpha Company acquired in January 2016 fixed assets (see Table 4) with a useful life of two years. Wear is:

RUB 51,832.44 / RUB 103,664.88 x 100% = 50%.

This indicator characterizes a high degree of wear. This is due to the fact that the fixed assets of the enterprise belong to the first depreciation group with a short useful life.

Fixed asset shelf life (By the year) is the reciprocal of the wear factor. It shows what proportion is the residual value of fixed assets from their original cost:

K good \u003d 100% - To wear.

Calculate shelf life fixed assets of Alfa: 100% - 50% = 50 % .

The level of suitable fixed assets is 50%, which indicates a strong depreciation of fixed assets due to a short useful life.

Age composition of equipment

In order to develop measures to improve the use of equipment, it is necessary to control the age composition of different types of equipment, determining suitability. The age composition is characterized by grouping the equipment according to the terms of its operation (Table 5). Analysis of the age composition by groups of equipment is carried out in the context of workshops and production sites.

Table 5. Analysis of the age composition of equipment, %
Equipment age groups	Indicator value		Change
Equipment age groups	last year	reporting year	Change

5 to 10 years
10 to 20 years
Over 20 years

A positive trend is the increase in the proportion of young equipment (age groups 1 and 2) with a service life of up to 10 years. In this case (see Table 5), we can conclude that the enterprise has put new equipment into operation, as a result of which the share of young equipment in the reporting year was 27,20 % (5.70% + 21.50%) compared to 27% (5.10% + 21.90%) last year.

Remarks

1. With long service life, significantly exceeding the standard, the technical and economic characteristics of the equipment operation (the accuracy of parts processing, equipment productivity, the growth rate of production volumes) worsen, the quality of products deteriorates, and manufacturing defects increase. At the same time, the costs of repairing equipment and its operation are growing significantly.

2. With the growth of physical wear and tear, unscheduled downtime associated with equipment malfunction increases, the duration of the repair cycle changes, maintenance and repair costs increase.

Economic indicators characterizing the efficiency of the use of fixed assets

return on assets (F otd) - a generalizing indicator characterizing the output of finished products per 1 rub. fixed assets. If the coefficient decreases, then this can be explained by the fact that the increase in labor productivity is less than the increase in fixed assets (the reason for this situation is the depreciation of fixed assets and high costs for their repair and maintenance). In general, the coefficient shows how efficiently all groups of equipment are used:

F otd = Q real / C sr / y,

Where Q real - sales volume in the reporting period, rub.;
C sr/y - the average annual cost of fixed assets, rub. (arithmetic mean between the cost of fixed assets at the beginning and end of the reporting period).

Calculate the return on assets for Alpha LLC under the following conditions:

planned sales volume - 3190 units. chairs at a price of 24,000 rubles. for a unit;
the average annual cost of fixed assets is 25,916.22 rubles.

F dep \u003d 3190 units. x 24 000 rub. / RUB 25,916.22 = 2954.13 rubles.

This is a very high figure, indicating that for 1 rub. fixed assets accounts for 2954.13 rubles. finished products. There are two explanations for this situation: 1) the production of chairs is not automated, the workers do most of the work manually; 2) the cost of some equipment is below 100,000 rubles and is not depreciated according to tax legislation.

Remarks

1. A positive trend is considered to be an increase in the volume of sales of products with a decrease in the cost of fixed assets. In this case, a conclusion is made about the effective use of fixed assets.

2. The return on assets ratio can be influenced by optimizing the loading of equipment, increasing labor productivity and the number of work shifts.

capital intensity (F emk) - an indicator that is the return on assets, characterizing the cost of fixed assets attributable to 1 rub. finished products. The ratio allows you to establish the impact of changes in the use of fixed assets on the overall need for them. The reduction in the need for fixed assets can be viewed as conditionally achieved savings in additional long-term financial investments. Capital intensity calculation formula:

F emk \u003d C sr / g / Q real.

Calculate the value of the indicator for the analyzed enterprise:

F emk \u003d 25,916.22 rubles. / (3190 units x 24,000.00 rubles) = 0.00034.

The coefficient shows that for 1 rub. finished products account for 0.00034 rubles. cost of fixed assets. This indicates the efficiency of the use of fixed assets.

Important detail: a decrease in the value of capital intensity means an increase in the efficiency of the organization of the production process.

capital-labor ratio (F vrzh) characterizes the degree of labor equipment of the main production workers and shows how many rubles of the cost of equipment fall on one worker:

F vrzh \u003d C sr / g / C number,

where C number - the average number of employees, pers.

Let's calculate the capital-labor ratio for the Alfa company if the average number of employees is 52 people.

F vrzh = 25,916.22 rubles. / 52 people = RUB 498.39.

There are 498.39 rubles per one main production worker of the Alpha company. value of fixed assets.

Remarks

1. The capital-labor ratio directly depends on the labor productivity of workers in the main production, it is measured by the number of products manufactured by one worker.

2. A positive trend is the growth of capital-labor ratio along with the growth of labor productivity of the main production workers.

Profitability of fixed assets (return on equity, R OS) - characterizes the profitability of fixed assets of the enterprise. This indicator contains information on how much profit (revenue) was received per 1 ruble. fixed assets. The indicator is calculated as the ratio of net profit (sales proceeds, profit before tax) to the average annual cost of fixed assets (arithmetic mean between the cost of fixed assets at the beginning and end of the reporting period):

R OS \u003d PE / C sr / y,

where PE - net profit, rub.

Let us calculate the value of the return on investment ratio for the analyzed enterprise, provided that its net profit in the reporting period is 4,970,000.00 rubles.

R OS = RUB 4,970,000.00 / RUB 25,916.22 = 191,77 .

Remarks

1. The indicator of profitability of fixed assets does not have a standard value, but its growth in dynamics is positive.

2. The higher the value of the coefficient, the higher the efficiency of the use of fixed assets of the enterprise.

Refresh rate (K about) - characterizes the rate and degree of renewal of fixed assets, is calculated as the ratio of the book value of received fixed assets to the book value of fixed assets at the end of the reporting period (the initial data for calculation is taken from the financial statements):

K about \u003d C new. OS / S k,

where C new. OS - the cost of acquired fixed assets for the reporting period, rub.

C to - the cost of fixed assets at the end of the reporting period, rub.

The fixed assets renewal ratio shows what part of the fixed assets available at the end of the reporting period are new fixed assets. A positive effect is the tendency to increase the coefficient in dynamics (evidence of a high rate of renewal of fixed assets).

Important detail: when analyzing the renewal of fixed assets, it is necessary to simultaneously evaluate their disposal (for example, due to sale, write-off, transfer to other enterprises, etc.).

Retirement rate (K sb) - an indicator that characterizes the degree and rate of disposal of fixed assets from the production sector. It is the ratio of the value of retired fixed assets ( From sb) to the value of fixed assets at the beginning of the reporting period ( C n) (initial data for the calculation is taken from the financial statements):

To vyb = With vyb / With n.

This ratio shows what part of the fixed assets that the company had at the beginning of the reporting period retired due to sale, wear, transfer, etc. The retirement ratio is analyzed simultaneously with the analysis of the fixed assets renewal ratio. If the value of the renewal coefficient is higher than the value of the retirement coefficient, then there is a tendency to update the equipment fleet.

Capacity Utilization Factor- an indicator determined by the ratio of the annual volume of planned or actual production of products to its average annual capacity.

The planned output of the enterprise is 3700 units, the average annual production capacity (the maximum number of products) is 4200 units. Hence the degree of utilization of production capacity:

3700 pcs. / 4200 pcs. = 0,88 , or 88%.

Remarks

1. The production capacity utilization factor can also be applied at the preliminary stages of the formation of the production program.

2. The value of the utilization factor cannot exceed one or 100%, since the production capacity represents the maximum possible output under the best production conditions.

3. Ideally, a utilization rate of 95% is considered, with the remaining 5% intended to ensure flexibility and continuity of the production process.

Shift ratio (K cm) - an indicator that reflects the ratio of the actual hours worked to the maximum possible operating time of the equipment for the analyzed period (can be calculated for the entire workshop or group of equipment). Calculation formula:

K cm = F cm / Q total,

where F cm - the number of actually worked machine shifts;
Q total - the total number of equipment.

The company has installed 61 pieces of equipment. Only 48 units of equipment worked during the first shift, and 44 units during the second. Calculate the shift ratio: (48 units + 44 units) / 61 units. = 1,5 .

Remarks

1. The shift coefficient characterizes the intensity of the use of fixed assets and shows how many shifts on average annually (or per day) each piece of equipment works.

2. The value of the shift ratio is always less than the value of the number of shifts.

Equipment load factor (K h. about) - an indicator that is calculated on the basis of the production program and technical standards for the production time of products. It characterizes the use of the effective fund of equipment operation time for a certain period and shows what kind of equipment loading the production program provides. It can be calculated for each unit, machine or group of equipment. Calculation formula:

K h. about \u003d Tr pl / (F pl x K vnv),

where Tr pl - planned labor intensity of the production program, standard hours;

Ф pl - planned fund of equipment operation time, h;
K vnv - coefficient of performance of production standards, which is determined using the average percentage of performance of production standards.

Important detail: the fulfillment of production norms is assumed on the condition that 25% of the advanced main production workers fulfill these norms above the average percentage.

Let's say the workers of the assembly shop in the amount of 50 people. fulfill the production norms as follows: 25 people fulfilled the production norm by 100%, 15 people by 110%, 10 people by 130%.

At the first stage, we determine the average percentage of the fulfillment of production standards:

(25 people x 100%) + (15 people x 110%) + (10 people x 130%) / 50 people = 109 % .

Thus, 25 people can be considered advanced workers who have fulfilled the production rate by more than 109%. The proportion of workers from among the advanced, who fulfilled the production rate by 130%, is 40% (10 people / 25 people x 100%). Therefore, the coefficient of fulfillment of the output norm should be taken in the amount 130 % .

To calculate the equipment load factor, it is necessary to determine the labor intensity of the production program, taking into account the current standards for the types of equipment. For Alpha LLC, the labor intensity of the production program is 99,000 standard hours(the number of equipment - 61 units).

The effective working time fund (EFV per piece of equipment was calculated earlier) will be 103 273 h(1693 h x 61 pieces of equipment).

Let's find the equipment load factor for the analyzed enterprise:

K h. vol \u003d 99,000 standard hours / (103,273 h x 1.3) \u003d 99,000 / 134,254.90 \u003d 0,74 .

As the calculations show, the level of equipment loading allows to fulfill the production program for the planned period.

Remarks

1. The calculated load factor of the equipment has a high value, approaching unity. Its value should not exceed one, otherwise it will be necessary to carry out measures to increase the productivity of the equipment and increase the shift ratio. At the same time, a certain reserve should be provided in the degree of equipment utilization in case of unforeseen downtime, changes in technological operations and restructuring of the production process.

2. In the event of fluctuations in the market (growth / decrease in demand) or force majeure circumstances, the enterprise must promptly respond to any changes. To achieve better product quality and improve its competitiveness, you need to monitor the use of production capacity, and for this you need to constantly improve and update the operation of equipment and increase labor productivity (these two factors underlie the work of any manufacturing enterprise).

How to improve capacity utilization

If the planned sales volume is lower than the production volume, the question of how to improve the utilization of production capacity must be addressed.

To improve capacity utilization necessary:

reduce equipment downtime or replace it with a new one. In the case of a change of equipment, it is worth calculating the economic benefit, since the costs of acquiring new equipment may be higher than the benefits of its implementation;
increase the number of key production workers who will be able to produce more products (at the same time, labor costs will increase as part of conditionally variable costs);
increase the productivity of workers by establishing a shift work schedule or increasing production with the involvement of a bonus system for the implementation of an increased production plan (in this case, there will be an increase in conditionally variable costs per unit of output);
improve the skills of key production workers. Ways of implementation: train existing specialists or hire new highly qualified specialists (in both cases, the enterprise will incur additional costs);
reduce the labor intensity of manufacturing a unit of production. Most often it is achieved by applying the results of scientific and technological progress and re-equipment of production.

1. The concept of the production capacity of the enterprise. Factors that determine it. Calculation of production capacity. Capacity Utilization Indicators

2. Classification of enterprises and their place in the external environment

List of sources used

1. The concept of the production capacity of the enterprise. Factors that determine it. Calculation of production capacity. Capacity Utilization Indicators

Production capacity is the estimated, maximum possible under certain conditions, the volume of output by the enterprise (its divisions, equipment) per unit of time. Under certain conditions is understood: the full use of production equipment and areas, the introduction of new equipment and advanced technology, optimal operating modes, the scientific organization of production and labor, the application of technically sound norms for the use of machinery and equipment, the cost of raw materials and materials. Its calculation is necessary to substantiate the production program, identify internal reserves for its increase and increase the efficiency of production, its cooperation.

The value of production capacity is dynamic and varies depending on the conditions of production and the nature of the products (works, services performed), the availability of labor and its qualifications, the mode of operation of the enterprise and other factors. It is calculated based on the range and range of products established in the plan or corresponding to the actual output, and, as a rule, for a year. In this case, the same units of measurement are used in which the production is planned, sometimes in units of measurement of processed raw materials or in conventional units.

The production capacity should be distinguished from the design one provided for in the design of the enterprise, the actual value of which may be less or more than the production program, but less than the production capacity. At the initial stages of the functioning of enterprises, their production program, as a rule, is less than the production capacity for some time (period), when the development of technological processes takes place, the necessary backlog of work in progress is created, a qualified staff is formulated, cooperative relations are established, etc. Such periods are usually called the period of development of production (development of design capacity).

The periods of development of production are typical not only for newly commissioned enterprises and their production units. In connection with the development of new types of products or processes for their manufacture, they can be periodically repeated on existing ones. At the end of the period of development of output, its volumes reach the design capacity.

In the future, due to the introduction of the achievements of scientific and technical progress into production, for example, more advanced technology and advanced technology, means of mechanization or automation, etc., or vice versa, disposal due to dilapidation of workshops, units, buildings and structures, production capacity may change (increase or decrease). In this regard, a distinction is made between the average annual commissioned and retired, at the end of the year (output) and the average annual production capacity.

The average annual commissioned M s.vv or retired M s.vyb production capacities are defined as the sums of newly commissioned M sv or retired M sb capacities, multiplied by the number of full months of their use during a given year T i and divided by 12, i.e.

M svv = ∑ M iv T i /12; M s.vyb \u003d I M vyb (12 - T i) / 12.

Production capacity at the end of the year (output) M out is defined as the algebraic sum of the input power acting at the beginning of a given year (as of January 1), M in, new capacity introduced during the year, M in and leaving this year M out:

M out \u003d M in + M in -M vyb.

The average annual production capacity M s.g. is the capacity that an enterprise, workshop, site has on average per year, taking into account the growth of new and disposal of available capacities. It is defined as the sum of the input capacity available at the beginning of a given year, M in, the average annual capacity introduced during the year, M s.vv, as well as the average annual retired capacity M s. vyb (comparable in the nomenclature, assortment and units of measurement):

M s.g \u003d M in + M s.vv - M s.out \u003d M in + ∑ M inv T i / 12 - ∑ M vyb (12 - T i) / 12.

When determining production capacity, it is recommended to take into account all available production equipment, incl. inactive due to a malfunction, repair, modernization, assigned to the enterprise (listed on its balance sheet, regardless of location), workshop, section. The reserve, mothballed equipment in the amount determined by the current standards, as well as the equipment of auxiliary and maintenance shops, if it is similar to the equipment used in the main shops, is not taken into account.

One of the important factors in calculating production capacity is technically justified norms for the productivity of equipment, the use of production areas, the consumption of raw materials, etc. The norms taken into account should provide for the release of the largest amount of products per unit of time (per unit area, raw materials, etc.). The value of the production capacity of the enterprise also depends on its specialization, the list and the quantitative ratio of products to be manufactured. Replacing one of them with another causes a corresponding change in power.

The operating mode of the enterprise also has a significant impact on the power value. In accordance with this, the following funds of time are distinguished: calendar, regime or nominal, valid (working). For each piece of equipment, the calendar time fund is calculated as the product of the number of calendar days in a year (billing period) by the number of hours per day; the nominal (regime) fund is equal to the calendar fund minus weekends and holidays, taking into account the shortened working day on holidays. With a continuous process, the regime fund is equal to the calendar one. The actual fund of time is the maximum possible for a given mode of operation, taking into account the time spent on maintenance and repair of equipment.

At enterprises with a discontinuous production process, the maximum possible annual fund of time is calculated based on a three-shift (and when working in four shifts - four-shift) operation of the equipment and taking into account the established duration of shifts in hours. From the annual fund calculated in this way, the standard time required for maintenance, current and other repairs, the time of weekends and holidays, as well as non-working hours in reduced shifts on weekends and holidays are subtracted. In cases where maintenance and repair of equipment is carried out during working hours and this is taken into account in the norms of its productivity, the time spent on their implementation is not deducted from the general time fund.

At enterprises with a seasonal nature of production, the fund of equipment operation time is established in accordance with the approved (accepted) mode of operation, taking into account the optimal number of shifts (days) of operation of technological shops or according to the project. For these enterprises, the time for major and other types of repairs that have a significant duration is not recommended to be taken into account.

It should also be borne in mind that when calculating production capacity, equipment downtime associated, for example, with a lack of workers, fuel (energy) and various organizational problems, as well as various time losses due to manufacturing defects, should not be excluded from the worker fund. time. Production areas taken into account when calculating production capacity include, for example, areas occupied by production equipment, workbenches, assembly stands, vehicles, blanks and parts at workplaces, passages between equipment and workplaces (except for main passages), etc. auxiliary areas include the areas of the tool, repair shops, etc. The total area of the shop is determined as the sum of the production and auxiliary areas.

The production capacity of the enterprise is determined by the capacity of the leading workshops; workshops - with the capacity of the leading sections (lines); plots - the capacity of the leading groups of equipment. Leading shops are understood as shops (areas) in which a significant part of the main equipment is concentrated and occupying the largest share in the total labor intensity of manufacturing products or the most complex and labor-intensive operations of technological processes are performed. So, at ferrous metallurgy plants, such shops include blast-furnace, steel-smelting, rolling; at machine-tool, machine-building, electrical engineering - mechanical and assembly.

If the enterprise has several main (leading) production workshops (sections, units, installations or groups of equipment) that perform individual stages of the technological process, then the production capacity is determined by those that perform the largest amount of work in natural units of measurement or by labor intensity. If there are several workshops (sections, etc.) with a closed (completed) production cycle that produces homogeneous products, it is calculated as the sum of their capacities.

In cases where discrepancies are identified between the capacities of individual workshops, the contingency coefficient is determined - the ratio of the capacity of the leading workshop (site, groups of equipment) to the capacity of other workshops (the rest of the production links). In this case, the so-called "bottlenecks" are identified - workshops, sections, etc., the production capacity of which is less than the leading group of equipment (shop, section), which leads to a violation of the principle of proportionality in the organization of production processes, i.e. to the violation of the same relative throughput of individual divisions of the enterprise.

What is the production capacity of an enterprise? This concept includes the volume of the maximum probable output. In this case, certain conditions must be observed. Firstly, all released goods must certainly be of high quality. In addition, the equipment must be fully involved in the production process.

The calculation is made taking into account the introduced advanced technology and modern technology, at the highest level in the organization of all links, as well as under other optimal conditions.

Varieties of indicators

The production capacity of the enterprise is measured in the same units as the volume of production. These include the cost expression of output, conditionally natural and natural units. In the course of the enterprise's operation, the value of the production capacity indicator undergoes certain changes. This happens in connection with the commissioning of new equipment and the decommissioning of worn-out equipment. Such actions lead to a change in the quantitative values of the volume of goods that are produced by the enterprise. There are only 3 types of power. All of them are classified as industrial. First of all, it is the input power. It is calculated at the beginning of the period for which planning is carried out. There is power output. It is calculated at the end of the scheduled period. And, finally, the third type is the average annual indicator.

Calculation of the value of production capacity

For the correct planning of the work of the enterprise, it is imperative to determine the volume of products that will be produced by them. The production capacity of the enterprise is directly dependent on the capacity of the leading divisions. These include those sections or workshops that are entrusted with the task of performing the most massive, responsible and labor-intensive work. If we take the engineering industry, then the leading divisions of its enterprises are assembly and machine shops. For metallurgy, these are open-hearth, blast and melting furnaces.

Conditions for calculation

When determining the volume of finished products, some points must certainly be taken into account:

1. The production capacity of the enterprise is calculated from the bottom up. This chain moves from homogeneous equipment to a specific production site. After grouping all the information, the calculation covers each workshop and ends with the entire enterprise.
2. When calculating the value of the production capacity of each unit, the norms for piece time, as well as output, are taken into account. At the same time, the entire range of manufactured products is taken into account in special formulas.

3. The volume of finished products is determined on the target date. This is necessary due to the variability of the indicator during decommissioning or commissioning of equipment, and also due to the need to apply new process conditions, etc.
4. The calculation for assembly shops is required to be made not according to the equipment available in them, but according to their production area.
5. The preliminary determination of the volume of output should not take into account the loss of working time caused by certain shortcomings in the technical and organizational support of the production process. Marriage is not taken into account. Only those inevitable losses of time that are within the approved standard are subject to accounting.

Special cases

In practice, situations arise when the production capacity of individual units differs from the capacity of the leading link. In this case, discrepancies can be both up and down. In this situation, there are divisions of the enterprise that are not synchronized in terms of capacity.

In the event that calculations indicate an excess of this indicator of one of the divisions over the same indicator of the leading link, certain measures should be taken immediately. The administration of the enterprise must either maximize the use of the excess capacity available, or agree that the reserve equipment will be located in this unit. If the calculations made indicate a larger indicator of production capacity at the main leading link, then the problem of the so-called bottleneck arises. Then the manager must decide to expand the problematic unit. For this purpose, additional jobs can be introduced, the time of using the equipment can be increased, or one-time orders are transferred to the side.

Calculation sequence

Determining the volume of products produced using the equipment available at the enterprise goes through the following stages:

The indicator of production capacity is calculated for the leading group of machines and equipment operating in the leading section;
- the capacity of the enterprise determined by the calculation is analyzed to identify bottlenecks of the entire production complex;
certain management decisions are made to eliminate problem areas;

Newly appeared bottlenecks are installed;
- calculation of the value of production capacity;
- coefficients are established that characterize the use of the entire production capacity, both for individual units and for the enterprise as a whole.

Production capacity indicators

The maximum probable volume of finished products is calculated under the condition of the best organization of labor and under ideal conditions for the flow of the technological process. In reality, this is impossible to achieve. That is why the actual volume of output is always lower than that which corresponds to the calculated indicator. To adjust planning, it becomes necessary to determine the level of use of the enterprise's capacities. In quantitative terms, this value is equal to the ratio of the actual annual output to the indicator of output determined for the same period. The level obtained in the calculation, showing the percentage of use of the entire production capacity, directly depends on the internal and external factors that manifest themselves in relation to the technological process. The first of them include those that are directly related to the release of products (modernization of equipment, mode of operation, etc.). And external factors represent the state of the market, the competitiveness of goods, the demand for them, etc.

Conditions for increasing the volume of output

In market conditions, the most important factor in increasing the efficiency of an enterprise is an increase in the use of production capacities. However, this makes sense only when the entire volume of goods produced will be in consumer demand. Otherwise, there will be an overstocking of the enterprise with products.

If the market is well developed and the demand for products is high, then eighty to eighty-five percent of the production capacity can be used. If the necessary conditions are not met, then the amount of equipment involved in the process can fall to a factor of 0.3.

A parameter indicating the possibility of growth

The production potential of an enterprise is an indicator that characterizes the ability of an enterprise to produce goods. Some economists consider this concept analogous to production capacity. However, there is no consensus on this issue. In separate works, the production potential is considered as a certain set of enterprise resources without taking into account technological processes. In another interpretation, this concept takes into account only those resources, the use of which contributes to the reproduction of material wealth.

Under production capacity enterprise is understood as the maximum possible output of products in a certain range, assortment, of the appropriate quality in the planned period with the fullest use of equipment and production facilities, taking into account the use of advanced technology.

Production capacity is determined by the range of manufactured products, taking into account the profile of the enterprise. In conditions when the activity of the enterprise is focused on meeting the demand of consumers, the production capacity is determined based on the portfolio of orders. Production capacity is measured, as a rule, in physical terms or in conventional units of measurement adopted in the plan.

The concepts of "production capacity" and "production program" are not identical. If the first shows the ability of the enterprise under certain conditions to produce the maximum amount of products per unit of time, then the second characterizes the degree of use of capacity in this period of time.

When determining production capacity, one should proceed from the following provisions:

calculation of production capacity is carried out for the entire range of products manufactured by the enterprise. In the conditions of multi-product production, the production capacity is calculated according to typical representatives established for homogeneous groups of products. The criterion for bringing homogeneous products to one type is the coefficient of labor intensity;

the production capacity of an enterprise (workshop) is determined by the capacity of the leading divisions (workshops, sections), taking into account measures to eliminate bottlenecks. Leading division it is considered one in which the main technological operations for the manufacture of products are performed; where the largest share of total living labor is spent and where the main part of fixed assets is concentrated. For example, for machine-building enterprises, assembly and machine shops are leading. Under " bottleneck» means the discrepancy between the capacities of individual workshops, sections, groups of equipment and the capacities of the departments for which the capacity of the workshop, the entire enterprise is established. Suppose that if a machine-building enterprise includes the procurement, mechanical and assembly workshops in the main workshops, and the mechanical workshop is determined as the leader, then the capacity of the entire enterprise will be determined by the capacity of the mechanical workshop. At the same time, the throughput of the procurement and assembly shops and its ratio with the capacity of the leading shop will be calculated, as a result of which “narrow” or “wide” places will be revealed. In turn, under broad place» means the excess of the capacity of individual units of the capacity of the enterprise (workshop) as a whole;

the calculation of capacity is carried out for all production units of the enterprise in sequence from the lowest to the highest: a group of technologically homogeneous equipment → production site → shop → the enterprise as a whole. At the same time, the capacity of the subdivisions is determined, "narrow" and "wide" places are identified. Debottlenecking helps to increase the level of capacity utilization of the respective unit;

production capacity is dynamic. She is subject to change. Therefore, the calculation of production capacity is tied to a specific date - at the beginning and end of the planning period.

The calculation of production capacity is based on the following data: the quantitative composition of the equipment; equipment operation mode; progressive technical standards of labor intensity or equipment productivity; range of manufactured products.

The quantitative composition of the equipment. The calculation of production capacity includes all production equipment assigned to this unit: both operating and inactive due to malfunction, repair, modernization, lack of load. The following are not taken into account: 1) equipment of auxiliary departments of the enterprise (for example, mechanical repair, instrumental, electromechanical), as well as sections of the same purpose in the main production shops; 2) backup equipment.

For shops of a number of enterprises (for example, light industry), as well as assembly shops of machine-building enterprises, the main factor in determining capacity is production areas. Auxiliary areas are not taken into account.

The operating mode of the equipment is set based on the specific production conditions and from the maximum possible fund of equipment operation time:

a) for enterprises with a continuous production process, the maximum possible fund of time is equal to the number of calendar days in a year multiplied by 24 hours, minus the time required for capital and scheduled preventive repairs;

b) in discontinuous production, the maximum possible time fund is determined by the formula:

Where – calendar fund of equipment operation time in days;
- the number of days off in a year;
- the number of holidays in a year;
- the number of shifts;
- duration of one shift in hours;
- time spent on capital and scheduled preventive repairs, hour; – reduction of working hours on all pre-holiday days, hour.

Technical standards of labor intensity or equipment productivity. To calculate the production capacity, technical design performance standards are used. Provided that they are achieved, progressive norms based on the steady achievement of the foremost are taken into account. In mechanical engineering, the indicators achieved by the best workers, constituting 20-25% of all workers, for the best quarter are taken as sustainable.

Nomenclature of manufactured products. The production capacity is determined for each item of manufactured products in the planning period. But in multi-product industries (engineering, sewing, knitwear, etc.), the production program can only in rare cases be included in the calculation of power without preliminary processing. It is brought into a more convenient form. To do this, the nomenclature is enlarged by combining different product names into groups according to design and technological similarity and bringing each group to one basic representative product.

At enterprises equipped with the same type of equipment, production capacity can be determined by the formula:

Where Q– quantity of equipment, pcs.;
- regime fund of the operating time of a piece of equipment, hour; P - technical norm of productivity of this equipment, pieces / hour.

In multi-product production, due to the lack of performance data for most process equipment, the following formula is used:

Where
- labor intensity of a set of products manufactured on this equipment, norm-hour / piece.

The production capacity, calculated on the basis of the maximum value of all its components, is the initial one and determines inputpower, that is, the capacity at the beginning of the planning period, usually a year. During the year, the production capacity undergoes a change due to the commissioning (increase) of new capacities and the retirement of capacities. The increase in capacity can be achieved through:

implementation of measures to eliminate "bottlenecks";

increasing the productivity of equipment through modernization;

increasing the amount of equipment;

redistribution of work between individual types and groups of equipment;

possible increase in equipment shifts;

enterprise reconstruction;

commissioning of capacity due to the expansion of the enterprise and as a result of new construction, etc.

Disposal of production capacity is possible in case of liquidation of fixed assets due to depreciation and obsolescence, lease of equipment (leasing), liquidation of capacities due to force majeure, and for other reasons.

A change in the range of products produced can lead to both an increase and a decrease in production capacity.

As a result, the production capacity at the end of the planning period is output power– is defined as follows:

Where
- production capacity at the beginning of the planning period (input capacity);
– commissioning of capacities as a result of construction of new, expansion of existing capacities;
– power increase due to reconstruction;
- increase in capacity as a result of technical re-equipment and other organizational and technical measures;
– increase (decrease) in capacities due to changes in the range of products;
- a decrease in power due to its retirement due to dilapidation and wear and other reasons.

In order to determine the amount of power that will actually function during the planned year, determine the value average annual power:

Where
And
- respectively input and output production capacities in i-th month of the planning period;
- the number of months of operation of the input i-th month of capacities until the end of the year;
- the number of months until the end of the year during which those who retired from work will not function i th month of power.

Design production capacity- the capacity provided by the project of new construction, reconstruction or expansion of the enterprise (workshop). The development of the design capacity is carried out gradually, in accordance with the approved standards. Timely and full development of design capacities is of great importance and is a reserve for increasing the volume of production. With the full development of the design capacity, it is transformed into capacity at the beginning of the planning period (input capacity).

All types of production capacity are reflected in the balance of production capacity, which can be developed by enterprises. The balance is drawn up according to the nomenclature and assortment of products. If there are divisions within an enterprise with a closed production cycle for the production of homogeneous products, the production capacity of the enterprise is determined by the sum of the capacities of these divisions.

So, the balance reflects: production capacity at the beginning of the year; changes (increase, decrease) in power per year; average annual production capacity; the level of use of the average annual capacity.

As already mentioned, production capacity is measured for each type of product in natural units of measurement or conditionally natural. But along with the natural measurement in enterprises with heterogeneous output, cost meters can also be used.

1. Production capacity of the enterprise: concept, types, planning stages

2. Calculation production capacity

3. Production capacity Russian Federation

4. Technical condition of production facilities

Productive capacity - This the maximum possible output of a production unit (industries, enterprises, its divisions, workplace) for a certain .

Productive capacity enterprises: concept, types, stages of planning

The volume of fixed production assets and the degree of their use is determined by the production capacity of the enterprise.

The production capacity of an enterprise (workshop or production site) is characterized by the maximum amount of products of the appropriate quality and range that it can produce per unit of time with full use of fixed production assets under optimal operating conditions.

The simplest and most accurate meters of production capacity are natural units. Production capacities are measured, as a rule, in the same units in which it is planned to manufacture this product in physical terms (tons, pieces, meters). For example, the production capacity of mining enterprises is determined in tons of mining, metallurgical enterprises - in tons of metal smelting and rolled products; machine-building plants - in pieces of manufactured machines; capacity of sugar refineries and other food processing enterprises industry- in tons of raw materials processed into finished products.

During each planning period, production capacity may change. The longer the planned period, the higher such changes. The main reasons for the changes are:

Installation of new pieces of equipment to replace obsolete or emergency ones;

Depreciation of equipment;

Commissioning of new capacities;

Change in equipment productivity due to intensification of its operation mode or due to a change in the quality of raw materials, etc.

Equipment (replacement of nodes, blocks, transport elements, etc.);

Changes in the structure of raw materials, composition of raw materials or semi-finished products;

Duration work equipment during the planned period taking into account stops for repairs, preventive maintenance, technological breaks;

Production specialization;

Mode work equipment (cyclic, continuous);

Repairs and ongoing maintenance.

The following factors influence the value of production capacity:

1. Technical factors:

The quantitative composition of fixed assets and their structure;

Qualitative composition of fixed assets;

Degree of mechanization and automation of technological processes;

The quality of the raw material.

2. Organizational factors:

Degree of specialization, concentration, cooperation of production;

Level companies production, labor and management.

3. Economic factors:

Forms of remuneration and incentives for employees.

4. Social factors:

Qualification level of employees, their professionalism;

General education level of training.

Production capacities can be considered from different positions, based on this, they determine the theoretical, maximum, economic, practical capacity.

The calculation of production capacity is carried out in units of product measurement. The capacity of a larger production unit is determined by the capacity of its leading unit: the capacity of a site is determined by the capacity of the leading group of equipment; workshop capacity - according to the leading section; the capacity of the enterprise - according to the leading shop. The leading division is considered to be the one in which a significant part of the production fixed assets is concentrated, performing the main technological operations for the manufacture of products. The sum of the capacities of individual enterprises for the same type of product is the production capacity industries for this type of product.

When calculating production capacity, data on:

production fixed assets;

the mode of operation of the equipment and the use of space;

progressive standards for the productivity of equipment and the labor intensity of trade items;

workers' qualifications.

If the productivity of the equipment is known, then the production capacity is determined as the product of the passport productivity of the equipment per unit of time and the planned fund of the time of its operation; in the conditions of multi-product production - as a quotient from dividing the fund of equipment operation time by the complexity of the set trade items produced on this equipment.

The degree of use of production capacity is characterized by the coefficient of use of production capacity, which is equal to the ratio of the annual money issue production to the average annual capacity of the given year. To ensure the planned volume of production and determine the need for natural growth, a balance of production capacities is drawn up.

Production capacity calculation

Productive capacity industries industry, enterprises, its divisions, the maximum possible release high quality products or the volume of processing of raw materials per unit of time (usually within a year). In the socialist countries, production capacity is determined in terms of the range and quantitative ratios established by the plan, taking into account the fullest use of production equipment, areas, advanced technology and firms labor. The calculation of the production capacity of the enterprise is carried out in units of measurement of products adopted in the plan. The simplest and most accurate are natural units of measurement (in products, parts, pieces, tons). According to the capacity of the leading group of equipment, the capacity of the section is determined, according to the leading section - the capacity of the workshop, according to the leading workshop - the capacity of the enterprise. The calculation takes into account measures to eliminate bottlenecks. A significant part of the production fixed assets is concentrated in the leading division, the main technological operations for the manufacture of products are performed. The sum of the capacities of individual enterprises for the same type of product is the production capacity of the industry for this type of product.

To calculate the production capacity, the following initial data: production fixed assets, equipment operation mode and space utilization, progressive equipment productivity and labor intensity standards trade items, qualification of workers. If the productivity of the equipment is known, then the production capacity is determined as the product of the passport productivity of the equipment per unit of time and the planned fund of the time of its operation; in conditions of multi-product production - as a quotient of dividing the fund of equipment operation time by the labor intensity of a set of trade items (parts) manufactured on this equipment.

Production capacity is a dynamic value, changing with the development of technology, the growth of labor efficiency, the improvement of the company's production and labor, and the increase in the cultural and technical level of workers. According to the methodology in force in the industry of the USSR, the production capacity is set on January 1 of the accounting year (input) and on January 1 of the next year (output). The average annual power is also determined. With a uniform increase in power during the year, its average annual value is equal to half the sum of the input and output powers. In other cases, the average annual production capacity is determined as the sum of the capacity at the beginning of the year and the average annual capacity added minus the average annual capacity retired.

The degree of production capacity utilization is characterized by the capacity utilization factor, which is expressed as the ratio of the annual issue of securities of the product to the average annual capacity of the given year. To ensure the planned volume of production and determine the need for an increase in the capacity of the growth i balance production capacity.

Production capacity Russian Federation

Power industry Russian Federation is one of the largest energy complexes in the world, almost completely equipped with domestic equipment, using its own fuel resources, covering the needs countries in electrical and thermal energy and providing electricity. At the end of 2000, the total installed capacity of all power plants in the Russian Federation was 213.3 thousand MW, including thermal - 147.3 thousand MW (69.0%), hydraulic - 44.3 thousand MW (20.8% ), nuclear - 21.7 thousand MW (10.2%). Of the total capacity of thermal stations, the capacity of cogeneration plants (CHP) is 56.8%, condensing (CPP) - 42.3%.

The technical basis of the Russian electric power industry is 432 public power plants with an installed capacity of 196.2 thousand MW, including 334 TPPs with a capacity of 131.0 thousand MW, 98 HPPs with a capacity of 44.0 thousand MW and 10 nuclear power plants with a capacity of 21.2 thousand MW. MW.

At the end of 2000, the total installed capacity of power plants producing electricity in the network of the UES of the Russian Federation, amounted to 192.2 thousand MW, including thermal (TPP) - 68%, hydraulic ( hydroelectric power station) - 21%, nuclear (NPP) - 11%.

In the last decade, in the context of a fall in the industrial production index and a corresponding decrease in consumption by 20% electricity and its production, the use of installed capacity by all types of AO-energo power plants is extremely low: in 2000, the total level of installed capacity use was 47.92%, including 46.32% for TPPs, hydroelectric power station- 42.50%, for nuclear power plants - 69.07%. For stations of the federal level, this indicator was equal for TPPs - 38.15%, for HPPs - 54.85%.

Technical condition of production facilities

Underestimation by regulatory authorities of the economically justified level of tariffs for electricity and heat, and, as a result, lending to consumers with cheap energy, led to underinvestment in the electric power industry in the field of updating production capacities. As a result of physical depreciation technological equipment, the available capacity of public power plants does not exceed today 163.5 thousand MW, and the used capacity is 140.0 thousand MW.

The volume of equipment that has exhausted its park resource is growing sharply (the park resource is understood as the minimum reliable service life at which equipment failure will not occur). By 2001, 30% of steam turbines at TPPs with a total capacity of 39.6 thousand MW had exhausted their fleet life. By the end of 2005, 45% of TPP steam turbines with a total capacity of 59.3 thousand MW will be depleted, by 2010 - 62% of TPP steam turbines or 80.5 thousand MW, and by 2015 - 72% of steam turbines or 94 .6 thousand MW.

For HPPs, where turbine equipment with a total capacity of 21.6 thousand MW (50% of their installed capacity) has already reached its standard service life, a technical re-equipment concept has been developed that provides for refurbishment or comprehensive reconstruction. According to preliminary estimates, the refurbishment will extend the life of the HPP by 15 years at a cost of only 15%-25% of the cost of a comprehensive reconstruction

Sources

bse.sci-lib.com Great Soviet Encyclopedia

en.wikipedia.org Wikipedia - the free encyclopedia

cis2000.ru Computer Information Systems

Encyclopedia of the investor. 2013 .

Reference book of a technical translator - industries, enterprises, its subdivisions calculated, the maximum possible volume of output per unit of time with the fullest use of existing equipment and space, labor, given ... ... Economic and Mathematical Dictionary

Productive capacity- - the estimated maximum possible output of products per unit of time under certain conditions. [GOST 14.004 83] Term heading: Economics Encyclopedia headings: Abrasive equipment, Abrasives, Roads ... Encyclopedia of terms, definitions and explanations of building materials

Productive capacity- 34. Production capacity Estimated maximum possible output of products per unit of time under certain conditions