Abstract

A market economy requires flexibility in the operation of industrial enterprises, prompt adjustment of the nature and directions of production processes. That is why, in modern business conditions, the importance of not only ensuring the efficiency of economic entities, but also the formation of their potential and prospects for further development. It is proved that some modern industrial enterprises are characterized by the inability to really assess the production potential, incomplete use of available resources, the latest technologies, and modern methods of production management. Production potential has been identified as having several specific characteristics: integrity, interchangeability, interconnection, flexibility, or adaptability. It is noted that the potential concentrates three levels of connections and relationships at the same time: reflects the past, characterizes the present in terms of practical application, future-oriented. Six main methods used in the estimation of production potential are investigated and characterized: economic-statistical, method of production functions, method of cost estimation, index, indicator, and matrix methods. The principles that must be followed when diagnosing the production potential of the enterprise are determined: the completeness of the original data and the universality of the information base; reliability and availability of collected data; the possibility of using two types of assessment of production potential: resource-productive and rating; use of the concept of potential in a certain direction; use of basic and additional indicators; availability of certain evaluation criteria for the main and additional indicators. It is substantiated that the interpretation of the definition of “production potential” is ambiguous, as well as the methods of its evaluation. It is noted that without the study of production potential is not possible strategic development and planning of other activities of the enterprise and the process of managing the production potential of an industrial enterprise is aimed at efficient use of all its resources in the long run.

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