The specialization coefficient is a parameter that will allow you to assess how focused your production is on the production of one type of product. It is necessary for both long-term and short-term planning of the development strategy.
Instructions
Step 1
Determine the profile type of activity of the enterprise for a certain period. To do this, analyze the data of the accounting report. Select the type of activity that brings the greatest income or which accounts for the greatest production capacity. If the number of products produced depends on the number of orders for it, then these parameters will coincide, so the definition of the core activity will not change from which one you choose. Otherwise, if you produce a product regardless of demand, proceed from the type of activity or products that are produced in the greatest quantity during the period you have chosen. Write down this value and label it as Cr.
Step 2
Output the total cost of finished goods in fact produced by the enterprise for the reporting period for which you calculated the previous parameter. This can be done on the basis of accounting data, using the report on the release of finished goods. If your company operates according to the principle of a planned economy, i.e. the volume of production does not depend on demand, determine the total cost of finished products based on the production plan of the enterprise. Designate this value with the letter C.
Step 3
Calculate your specialization rate. To do this, divide the data obtained in the first step by the data obtained in the second step. Then multiply the resulting number by 100 to get the percentage. In other words, use the formula Cg / C * 100%, where Cg is the cost of products of core production, and C is the cost of all products manufactured during the reporting period. To obtain a complete picture of the specialization of an enterprise, it is necessary to calculate the specialization coefficient for several months, for example, seven to eight. This will allow you to determine the trend of changes in the specialization of your company. A deeper analysis will reveal the reasons that affect it.
