OPERATIONAL ASSETS OF ENTERPRISE

1
operational assets -
it is the sum of money,
that was advanced for creation
operational production assets
and funds of circulation, which provide
continuous rotation of
money.

Composition of
operational assets -
it is the total value of
elements of operational
production assets
and fund of
circulation

Structure of operational assets – it is the specific proportion of operational production assets and funds of circulation in total value of operational assets
( in economics of Ukraine structure of operational assets usually divide into: commodity material values - 21,6%, credits for customers – 69,5%, money – 3,9, current financial investments – 1,7.)

Operational assets
Operational production
assets
Funds of circulation
Merchandise in production supplies
Materials in production process
Expenditures of future periods
Goods available for sale
Goods sold in a way to customer
Money
Customers credit
Fixed operational assets
(working capital and ready products)

Operational production assets (working capital)-
it is the objects of labor (raw material, basic
materials and half-finished products,
auxiliary materials, fuel, package materials,
spare parts, etc.);
means of labor with the term of service
less than one year (low value and
quickly used objects
and instruments); uncompleted
production and charges of future periods.

Funds of circulation -
it is the facilities of enterprise
invested in the supplies of ready
products, commodities what are
shipped but unpaid, and also
money in transfer, in the cashdesk
and on the accounts

MONEY
STAGE OF MONEY
READY
PRODUCTS
OBJECTS OF
LABOR
STAGE OF PRODUCT
UNCOMPLETED PRODUCTION
STAGE OF PRODUCTION

CLASSIFICATION OF OPERATIONAL ASSETS
1. BY THE ECONOMIC MEANING:
operational production assets
and funds of circulation
BY THE METHOD OF FORMING:
OWN
BORROWED
3. BY THE METHOD OF PLANNING:
FIXED
UNRATIONED

Methods of value estimation of supplies
by every item cost price;
by average cost price;
Method FIFO (first in – first out);
Method LIFO (last in – first out)

2
The process of setting the norms of operational assets of enterprise is a calculation of optimum size of operational assets, necessary for organization and running normal economic activity of enterprise.

Normative of operational assets — it is the minimum value of operational assets which is enough for continuous run of the production process.
Нос –norm of operational
assets, days
М- value of material
resources for the period, hrv
Т - period

Target of the process of setting the
norms
Determination of rational size of operational assets which are distracted on a certain term in the sphere of production and sphere of circulation

PRINCIPLES OF PLANNING
PRINCIPLE OF DETERMINATION
PRINCIPLE OF SYSTEM WORK
3. PRINCIPLE OF SCIENTIFIC CHARACTER
4. PRINCIPLE OF VALIDATION
5. PRINCIPLE OF PROGRESS CHARACTER

Terms of establishment of norms
on operational assets
Terms of delivery and sale
Distance between the supplier and the consumer
Transport terms
4. Time for the preparation of materials for
the use in the production process
5. Periods of putting raw materials in production
6.Duration of production cycle
7. Forms of accounting, duration
of document circulation

Methods of determination of necessity
in operational assets
METHOD OF THE
DIRECT
CALCULATION
Based on the calculation of
norms on each
of the rationed element of the
operational assets.
Enables more precisely rationing
of the operational assets usage,
taking into account the specific
of enterprise development

ANALYTICAL
METHOD
Used in those cases
when in planned
period it is not foreseen
substantial changes
in the activity of enterprise.
A normative is determined
by comparison between
the rates of growth
productions and
the size of rationed
operational assets

Method of
coefficients
The normative is determined
on the base of previous period
norms by making in them
changes, taking into account
terms of production, deliveries,
realization of products,
calculations

Norm of supply of operational assets - it is the minimum necessary amount of days, for which specific amount of supplies is needed to provide the normal functioning of enterprise.

Norm of supply of operational assets (OA)
Normative of OA
in production supplies
2. Normative of OA
in uncompleted production
3. Normative of OA
in remains of ready products
4. Normative of OA
in charges of future periods

Normative of
production supplies
Insurance supply
Transport
stock
Technological
stock
Current stock
Preparation
stock

Current stock -
basic type of supply
necessary
for providing
continuous work of
enterprise
between deliveries
Зтек = Д * Тпост
Д – daily necessity
for supplies;
Тпост – period of
delivery of the
material resource in days

Insurance supply
created in case of
unforeseen rejections in
delivery and provides continuous work of
enterprise
Determined as
a requirement in the resources
on the period of derangement
deliveries (Тср пост)
Зстрах = Д* Тср пост

A transport stock is created in case of the
exceeding of terms of transport cycle
as compared to terms
of circulation of documents on
the enterprise, sent from suppliers on
considerable distances
Technological stock
created in cases, when
the type of particular raw material needs
previous treatment

Preparation stock created because of the necessity
of reception, unloading,
sorting and warehousing
production supplies.
The norms of time are set
by a time-study
Maximum stock size (Змах):
Змах = Зтіп + Зпот
Average stock
Зср = Зтіп+ 0.5*Зпот

Normative of production supplies (Нпр.з)
Нпр.з. = Д*Здн
Daily necessity, items.
Д =Мо/360
Мо – overall necessity in particular type of resources, items
Мо =
Ni- number of products
q – weight of one base item
Мі – net weight of one item
Квм – coefficient of the use of metal

Normative of operational assets in uncompleted production
Ннезав. =
Ср – cost price of annual volume of production
Тц – duration of production cycle
Кнз – coeficient of increasing of cost, which shows the degree of completing of the product
Кнз = =
М – sum of material expenditures on production of one item
С1 - cost price of one item without material expenditures
С0 - one-time expenditures at the moment of the starting of production
Сп – current expenditures on production

Normative of operational assets in remains of ready product (Нгп)
Нгп = Пс*Здн
Пс – value of daily production volume by production cost
Здн – norm of stock in days
The norm of supply consists of amount of days which are needed for preparation of products to realization (acquisition, packing, shipping users et cetera)

Normative of OA
in charges of future periods
(Нмп))
Calculates with taking into account the remains of money on beginning of period and sum of charges which must be carried out in the planned period after deduction of the sum for future redemption of charges due to an unit cost
Нмп = Сн + Зпл – Зпог
Сн – remains of money on beginning of period
Зпл – charges which must be carried out in the planned period
Зпог - sum for future redemption of charges due to an unit cost

3
effective use of operational assets
it is their functioning during which is provided the stable state of financial resources and the most high results of activity at the minimum charges of enterprise

Circulation of operational assets is the duration of complete circulation of facilities from the moment of acquisition of operational assets (purchase of raw material, materials etc) to the output and realization of the ready products.

Indicators of circulation of operational assets
Indicator of circulation
shows
How many turns can do operating assets for certain period of time
Calculated as
Коб =
РП - annual sold products
Ос – average remains of operating assets per year

Coefficient of load
shows
How many operational assets of enterprise are on the 1 grivna of the sold products
Calculated as
Кз =

Duration of one turn
shows
Duration of one turn of operational assets in days
Calculated as
Тоб =

Average remains of operating assets per year (Ос)
О1, О2, О12 – average remains of operating assets per month

Acceleration of circulation of operational assets
An increase of volume of produced products on every hryvna of current expenditures of enterprise
Enables to free part of assets and use them to create additional reserves for expansion of production

Freed volume, or the additionally involved operational assets
РПо - volume of produced and sold products in the actual period
Тб, Тз – average duration of one turn of operational assets in basic and actual period

Comparative economy of operational assets
Оз, Об– average remains of operational assets in actual and basic period
РПз, РПб – volume of sold products in actual and basic year

Sum of increase of income, got due to the change of circulation of operational assets
Пз, Пб – an income from sold products in actual and basic period respectively
Оз, Об– average remains of operational assets in actual and basic period
РПз, РПб – volume of sold products in actual and basic year

Influence of the use of operational assets on the level of profitability
ΔR - a change of level of general profitability due to the change of remains of the fixed operational assets
П1 – balance income in actual year
OФ – average annual cost of capital production assets
R1 – general profitability of production in actual year, %

Increase of efficiency of operational assets use could be achieved due to such measures:
▶diminishing of terms of products making as the result of mechanizations of works,
improvement of technological processes;
▶diminishing the normative of production
supplies by the improvement of organization of
material and technical deliveries by
diminishing of their transporting distance

▶ economy of financial resources, better
storage and account, severe observance of
norms of expenditures of materials per one unit
▶ improvement of calculations
with customers and introduction
other methods on an improvement
financial and payment discipline
▶arrangement of pricing, application of
functioning system of economic stimulation.

Exercise
In a actual year the amount of the fixed operational assets on the enterprise made 460 thousand of hrv. Duration of one turn of operational assets – 56 days. Next (planned) year the volume of the sold products will be increased on 27 %. Define, on how many days time of one turn will be less at the unchangeable size of the fixed operational assets.

У звітному році сума нормованих оборотних засобів на підприємстві склала 460 тис. грн. Тривалість одного обороту оборотних засобів - 56 днів. В наступному році обсяг реалізованої продукції збільшиться на 27 %. Визначити, на скільки днів скоротиться час одного обороту при тій же величині нормованих оборотних коштів.