Ways to minimize costs of flour milling enterprises of Ukraine

Abstract

Introduction. The competitiveness of products of flour milling enterprises is quite low on the world flour market due to the high cost. In order to achieve leading positions in foreign markets, Ukrainian flour mills need the formation of stable competitive advantages, which, in turn, is possible on the basis of reducing the cost of production. Goal. The purpose of the article is to find ways to reduce production costs of flour milling enterprises of Ukraine based on the definition of inefficient production costs. Methodology. The research used the method of generalization - to determine the essence of the concept of "costs"; the method of analysis and synthesis, the graphic method and the statistical method of the analysis of general indicators - for the analysis of the component costs of flour milling enterprises. The results. The article reveals three approaches to the interpretation of the concept of "costs" and substantiates the definition of costs as an estimate of the cost of the company's spent resources. The dynamics of the component costs of flour milling enterprises of Ukraine were analyzed: the cost of raw materials and materials, wages, social deductions, depreciation and operating costs. A comparative characterization of the financial indicators of flour milling enterprises of Ukraine in monetary and percentage terms was carried out. The trend towards growth of the studied component costs is determined, which is not always due to the growth of production volumes. Recommendations for improving the production process of flour milling enterprises have been developed. It is proposed to implement the specified recommendations based on the lean production system, which allows minimizing production costs without significant capital investments. Prospective areas of research are the analysis of lean production tools and the production process of flour milling enterprises to eliminate inefficient production costs and reduce the cost of the production process.