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JPRS ID: 8752 TRANSLATION HANDBOOK FOR ENGINEER-ECONMISTS OF SHIPBUILDING ENTERPRISES

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CIA-RDP82-00850R000200020009-8
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U
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289
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November 1, 2016
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9
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APPROVE~ FOR RELEASE: 2007/02/08: CIA-R~P82-00850R000200020009-8 ~ ' 6 NOVEMBER i979 OF SNIP6UIL~INt3 ENTERPRISES i OF 3 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ~ FOR OFFICIAL USE ONLY ~ JPRS L/8752 = 6 November 1979 ~'ranslat~on HANDBOOK FOR ENGINEER-ECONQMISTS OF SHIPBUILDING ENTERPRISES . FB15 ~OREIGN BROADCAST INFORMATION SERVICE FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 NOTE ' JPRS publications contain information primarily from foreign newspapers, periodicals and books, but also from news agency transmissions and broadcasts. Materials from foreign-language - sources are translated; those from English-language sources are transcribed or reprinted, with the original phrasing and other characteristics retained. Headlines, editorial reports, and material enclosed in brackets are supplied by JPRS. Processing indicators such as [Text] or [ExcerptJ in the first line of each item, or following the - - last line of a brief, indicate how the original information was processed. Where no processing indicator is given, the infor- mation was summarized or extracted. Unfamiliar names rendered phonetically or transliterated are enclosed in parentheses. Words or names preceded by a ques- tion mark and enclosed in parentheses were not clear in the origin~.l but have been supplied as appropriate in context. ~ Other unattributed parenthetical notes within the body of an item originate with the source. Times within items are as given by source. The contents of this publication in no way represent ttie poli- cies, views or attitudes of the U.S. Government. _ For f~rther information on report content call (703) 351-2938 (economic); 3468 (political, sociological, military); 2726 (life sciences); 2725 (physical sciences). COPYRIGHT LAWS AND REGULATIONS GOVERNING OWNERSHIP OF MATERIALS REPRODUCED HEREIN REQUIRE TI~IAT DISSEMINATION OF THIS PUBLICATION BE RESTRICTED FOR OFFICIAL USE ONLY. APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY y JPR5 L/8752 6 November 1979 HANDBOOK FOR ENGINEER-ECONOMISTS - OF S;~IPBUILDING ENTERPRISES Leningrad SPRAVOCHNIK TNZHENERA-EKONOMISTA SUDO5TROITEL'NOGO PREDPRIYATIYA in Russian 1.978 signed to press 13 Jul 78 pp Y-216 [Book by B. S. Dubko, N. M. Zavarikhin, V. Ch. 5amsonov et al., _ "Sudostroyeniye" Publishers, 5,000 copies] CONTENTS PAGE Annotation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 From the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . 2 CHAPTER l: THE ORGANIZATION OF MANAGEMENT AT ~ SHIPBUILDING ENTERPRISE . . . . . . . . . . . . . . . . . . . . . . . 1~ . l. A Socialist State Shipbuilding Enterprise . . . . . . . . . 4 2. A Shop of a Shipbuildi.ng Enterprise . . . . . . . . . . . . 1+ 3. A Shop Section . . . . . . . . . . . . . . . . . . . . . . . 5 4. The Work Area . . . . . . . . . . . . . . . . . . . . . . . 5 ~ 5. The Management System of a Shipbuilciing Enterprise 6 6. Principles and Methods for Maciaging Socialist Production 7 7. Mana~ement Functions . . . . . . . . . . . . . . . . . . . . 8 8. Mana,gement Bodies and Levels . . . . . . . . . . . . . . . . 9 9. The Management Structure . . . . . . . . . . . . . . . . . . 9 - 10. ASUP and Its Tasks . . . . . . . . . . . . . . . . . . . . . 10 11. Technical and Economic Indicators of Management 14 12. Participation of the Workers in Production Management 14 CHAPTER 2: THE ORGANIZATION OF ECOT~OMIC WORK AT A SHTPBUILDTNG ENTL'RPRISE . . . . . . . ' . . . . . . . . . . . . . . . 16 13� Economic Work at a Shipbuilding Enterprise 16 14. The Functions of an Engineer Ecor.,omist . . . . . . . . . . . 17 15� Long-Range and Current Planning . . . . . . . . . . . . . . 18 ~ - a - [II - USSR FOUO] . [III - US5R - 3 ~'OUO] FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE UNLY . Page 16. The T~khpromfinplan, Its Composition and Content 21 17. The Shop Technica~ and Economic Plan . . . . . . . . . . . . 21 - 18. Directive Technical and Economic Indicators of a 'rekhprom f i nplan . . . . . . . . . . . . . . . . . . . . . . 2~ CfIAPTEF; 3: T}IL YRODUCTION PRUGRAM OF A SHIPBUILDING EN`I'LRPRISL ?.5 19. The Content of a Production Program . . . . . . . . . . . . 25 20. Indic~.toi�s of the Production Program and Their Management . 25 21. Normed Net Product . . . . . . . . . . . . . . . . . . . . . 31 22. The Content of a Shop's Production Program and Its Particular Features . . . . . . . . . . . . . . . . . . . . 33 23� The Nlethod of Compiling a Production Program 34 24. The Procedure for Working Out the Shop Production Plan 39 25� ~'lanning Nonshipbuilding Orders and Ship Repairs 40 ~ 26. ~cor~omic Analysis of the Fulfillment of the Production Program . . . . . . . . . . . . . . . . . . . . . . . . . . ~ 1 , 27. The Rhythmical Coefficient . . . . . . . . . . . . . . . . . 1+5 - 28. S,ysi,e:ns of Planning arid Accounting Units . . . . . . . . . . 46 CHAPTER THE ORGANIZATION AND PLAI~TPIING OF WORK OF THE ENTERPRISE 4iIXILIARY SHOPS (SERVICES) . . . . . . . . . . . . . . . ~?8 A. Maintenance Service . . . . . . . . . . . . . . . . . . . . . . ~+8 29. The System of Planned Preventive Repairs (PPR) 4f~ - 30. `!.'ypes of Planned Repairs on Equipment . . . . . . . . . . . 48 31. Standards of the PPR System . . . . . . . . . . . . . . . . 50 32. The Or~anization of Repairs on Production and Materials 51 ' 33. The Planning of Repairs . . . . . . . . . . . . . . . . . . 53 3~+. '~iays of Improving and Reducing the Cost of Repairs 58 u. Power Faci_lities . . . . . . . . . . . . . . . . . . . . . . . 58 37� The PPF. System in Power Facilities . . . . . . . . . . . . . 58 36. Stand~,rds and Calculated Indicators for the PPR System in the Power Facilities . . . . . . . . . . . . . . . . . . . . 59 37. Planning the Demand for Power and Fuel . . . . . . . . . . . 59 38. Indicators Describing Power-To-Labor Ratio at Enterprise 67 C. Tool Department . . . . . . . . . . . . . . . . . . . . . . . . 67 39� Planning the Supply of Tools and Production Fittings for the Enterprise . . . . . . . . . . . . . . . . . . . . . . . 69 ~ D. Transpor~ation Facilities . . . . . . . . . . . . . . . . . . . 73 40. Composition and Classification of Means of Transport 73 41. Freight Turnover and Freight Traffic . . . . . . . . . . . . 75 42. Selection and Calculation of Means of Transport by Freight ~ Traffic . . . . . . . . . . . . . . . . . . . . . . . . . . 75 43. Planning the Operation of Transport Shops 77 b ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICTAL USE ONLY Page E. Warehouse Facilities . . . . . . . . . . . . . . . . . . . . . 81 Classification of Warehouse Facilities . . . . . . . . . 81 ~+5� Dates for the Quantitative and Qualitative Acceptance of Freight . . . . . . . . . . . . . . . . . . . . . . . . . . 84 46. Calculation of the Warehouse Area . . . . . . . . . . . . . 85 ~+7� Basic Technical and Economic Indicators for Warehouse ` _ Facilities . . . . . . . . . . . . . . . . . . . . . . . . . 85 ~ CHAPTER 5: PLANNING A RISE IN PRODUCTION EFFICTENCY 86 48. The Plan for Technical Development and the Organization of Production . . . . . . . . . . . . . . . . . . . . . . . . 86 ~+9� Indicators for the Technical and Economic Level of � ~ Production and the Produced Product in Shipbuilding 87 50. Planning a Rise in the Economic Efficiency of Production 87 51. Determining the Efficiency of Introducing New Equipment 95 CHAPTER 6: STANDARDS AND RAlES . . . . . . . . . . . . . . . . . . . 107 52. A Descriptior~ of Standards and Rates . . . . . . . . . . . . 107 53. Basic Provisions in th~ Elaboration of Consumption Standards for Raw Products, Materials, Fuel, Thermal and Electric Power . . . . . . . . . . . . . . . . . . . . . . . 108 _ 5~+� Rates and Standards for the Means of Labor 110 55� The Setting~of Standards and Ra~es for Live La,bor 111 56. Rates for the Organization of Producti.on and Labor 113 57� Standards and Rates of ~'inancial Resources . . . . . . . . . 11~+ 58� The Organizat3on of Work in Elaborating Rates and Standards at a Shi:pb~iilding Enterprise . . . . . . . . . , . 115 CHAPTER 7: CAPITAL CONSTRUCTION . . . . . . . . . . . . . . . . . . 120 59� Planning Capital Construction . . . . . . . . . . . . . 120 60. A Title List . . . . . . . . . . . . . . . . . . . . . 122 61. Expenditures Related to Reconstruction and Technical Reequipping of Existing Enterprises . . . . . . . . . . . . 122 62. Financing Capital Investments . . . . . . . . . . . . . 123 _ 63� Crediting Expenditures on the Technical Reequipping and Reconstruction of Existir~ Enterprises . . . . . . . . . . . 125 6~+. The Composition (Structure) of Capital Investments in Terms of the Basic Types of Capital Fxpenditures 126 65� Determining the Economic Effectiveness of Capital Investments . . . . . . . . . . . . . . . . . . . . . . . . 128 CHAPTER 8: FIXED CAPITAL AP7D PRODUCTIOPI CAPACITY OF A SHIPBUILDING ENTERPRISE . . . . . . . . . . . . . . . . . 129 66. Fixed Capital and Its Classification . . . . . . . . . . . . 129 67. An Evaluation of Fixed Capital . . . . . . . . . . . . . . . 131 c FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY Page - ti8. ~lear ar~d Amortizat,ion of Fixed Capital . . . . . . . . . . 132 ' b9. Indicators and Ways for Increasing the Efficient Use of Fixed Capital . . . . . . . . . . . . . . . . . . . . . . . 135 - 70. Produ~tion Capacity of a Shipbuilding Enterprise 135 CHAPT~R 9: MATFRIAL ~�?'dD TECHNICAL SUPPLY AND WORKING CAPITAL 1~+1+ 71. Planning Material and Technical Supply at a Shipbuilding Enterpr i s e . . . . . . . . . . . . . . . . . . . . . . . . . 141+ 72. Materials Consumption Standards . . . . . . . . . . . . . . 146 ~ 73. The Setting of Rates and Standards for Production Stocks . 1~+8 _ 7~+. Oz�ganizin~ the Fulfillment of the Material and Technical Supply Plan . . . . . . . . . . . . . . . . . . . . . . . . 151 - 75 � Planning tidor�king Capital . . . . . . . . . . . . . . . . . 15~+ 76. PFethods of Setting Standards and Rates for Working Capital. 155 77. The Method of iVorming Working Capital of Industrial ~ ~nterprises . . . . . . . . . . . . . . . . . . . . . . . . 156 78. Working Capital Norming for Stocks of Raw Products and Basic Materials . . . . . . . . . . . . . . . . . . . . . . 157 79� The Norming af Working Ca~ital for Auxiliary Materials 160 80. Setting Rates and Standards of Woricing Capital for Fuel 161 ~1. ~etting Workin~ Capital Rates and Standards for Crating 161 82. The Setting of Rates and Standards for Worl;ing Capital Used for Spare Parts . . . . . . . . . . . . . . . . . . . 162 ~3� Setting Rates and. Standards for Working Capital for Inexpensive and Rapidly tidearing Out Articles 162 _ 8~+. Setting Rates and Standards for Working Capital for Incomplete Production and Expenditures of Future Periods. . 164 _ 85. Calculation of the Working Capital Rate for the Enterprise as a Whole . . . . . . . . . . . . . . . . . . . . . . . . 167 CHAPT~ 10: PLAli1dI~TG i,.~+i3vn AND WAGES . . . . . . . . . . . . . . . 1(8 86. Ttiie Content of the Labor a,nd Wage Plan 168 87. Planning a Rise in Labor Productivity . . . . . . . . . . . 169 88. Planning tre Plumber and Composition of EYnployees 178 89� The l~r.nual ~ffective 4Torking Time Available (The Worlcing Time Balance) . . . . . . . . . . . . . . . . . . . . . . . 182 90. Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 91. The Rate System and Its Role . . . . . . . . . . . . . . . 185 y2. Forms and Systems of T~Tages . . . . . . . . . . . . . . . . 189 93. Calculation of i;he Average Category, the Average Rate Coefficient and the Average Wage Rate . . . . . . . . . . . 191 9~-t� Planning Zaage Funds at an Enterprise . . . . . . . . . . . 192 95. Planning the Labor Indicators for Shops and Sections 200 d FOR OFFI^IAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY Page CHAPTER 11: THE COSTS A1~ID PRICE OF PRODUCTS IN SHIPBUILDING 205 96. The Cost of Shipbuilding Products . . . . . . . . . . . . . 205 97� Classificat~on of Production Expenditures . . . . . . . . . 206 98. Types of Costings Used in Shipbuilding . . . . . . . . . . . 208 99� The Content of Individual Costing Items for Product Costs ' at Shipbuilding Enterprises . . . . . . . . . . . . . . . . 208 100. Planning Production Expenditures . . . . . . . . . . . . . . 218 101. Planning the Costs of Commodity Product . . . . . . . . . . 2~0 102. The Chaxacteristics of Methods for Accounting and Calculating Product Costs . . . . . . . . . . . . . . . . . 221 ~ 103. Analysis of Product Costs in Shipbuilding . . . . . . . . . 222 104. Procedure for Establishing Wholesale Prices for Shi~building Products . . . . . . . . . . . . . . . . . . . 223 CHAF~rER 12: PROFIT AND PROFITABILITY OF PRODUCTION AT A SHIPBUILDING ENTERPRISE . . . . . . . . . . . . . . . . 226 105. The Forming of Profit at an Enterprise . . . . . . . . . . . 226 106. Profitability, Its Types and Indicators . . . . . . . . . . 227 107. Planning Profit and Profitability at an Enterprise 229 108. The Distribution of Enterprise Profit . . . . . . . . . . . 232 CHAPTER 13: ECONOPnIC INCENTIVE FUNDS . . . . . . . . . . . . . . . 237 109. Economic Incentive Funds and Their Classification 237 110. Planning Economic Incentive Funds in a Five-Year Plan 240 111. The Rates for Forming the Economic Incentive Funds 241 112. Determining the Actual Amount of the Econo~ic Incentive Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 2~+4 - 113. The Use of the Material Incentive Fund . . . . . . . . . . . 2~+5 - 114. The Use of the Fund for Sociocultural Measures ~nd Housing Construction . . . . . . . . . . . . . . . . . . . . 246 115. The Use of tY~e Production Development Fund 247 116. The Use of the Other Economic Incentive Funds 21~7 117. Analysis of Economic Incentive Funds . . . . . . . . . . . . 249 CHAPTER 1~+: FINANCIAL WORK AT A SHIPBUTLDTNG ENTF.RPRISE 251 118. The Contents and Organization of Financial Work at a Shipbuilding Enterprise . . . . . . . . . . . . . . . . . . 251 119. The Composition of Working Capital . . . . . . . . . . . . . 252 120. Establishing the Overall Amount of the Own Working Capital Rate . . . . . . . . . . . . . 253 121. Sources of Forming Working Capital . . . . . . . . . . . . . 25~+ 122. Crediting of Shipbuilding Enterprises . . . . . . . . . . . 255 123. E~enditures Covered from Specific Budget Financing 255 124. The Income and Expenditure Balance . . . . . . . . . . . . . 255 125 � The Payment Calendar . . . . . . . . . . < . . , . . , , . . 256 e FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY Page 126. The C.redi.t ~lpplicat;ion , . . . . . , . ~ . , , . , , , , . , 256 127. The C~.sh Plan . . . . . . . . . . . . . . . . . . . . . . . 257 128. Analysis qf Financial Activities and Financial State of an Enterprise . . . . . . . . . . . . . . . . . . . . . . . 257 CHAPTER 15: INTERNAL PLANT ECONOMIC ACCOUNTABILITY 260 129. Easic Principles in the Organization of Economic Accountability in the Subdivisions of a Shipbuilding Enterprise . . . . . . . . ~ . . . . . . . . . . . . . . . . 260 130. The Choice of a System of Indicators for the Economic Accountability Activities of Shops . . . . . . . . . . . . . 261 131. Planning Production and Economic ActivitiQs of the Self-Financing Shops in Basic Production . . . . . . . . . . 262 132� Planning the Production and Economic Activities of the Self-Financing Shops of Auxiliary Production . 26b 133. Accounting and Analysis of Operational Results of Self- Self-Financing Shops . . . . . . . . . . . . . . . . . . . . 264 13~+� Economic Accountability in Sections and Brigades 266 135� r'he Use of the Principles of Economic Accountability in the Functional Departments of the Plant Administration 266 136. ~raluating the Work Results of the Self-Financing Subdivions and the System of Material Incentive 267 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26g , f FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 roK orFiCrAL USE ONLY PUBLICATION DATA English title " , HANDBOOK FOR ENGINEER-ECONOMISTS OF SHIPBUILDING ENTERPRISES Russian title . SPRAVOCHDTIK INZHENERA-EKONOMISTA SI3.~OSTROITEL' NOGO PRIDPRIYATIYA Author (s) . B. S. Dubko, N. M. Zavarikhin, F. S. Samsor.ov et al Editor (s) Publishing House . Sudostroyeniye Place of Publication . Leningrad Date of Publication . 1978 Signed to press . 13 Jul 78 ~ Copies , 5,000 COPYRIGHT . Izdatel'stvo "Sudostroyeniye", Leningrad, 1978 -R- FOR OFFICIAL USE ONLY _ . - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL iJSE ONLY [Annotation] - [Text] The ha,ndbook examines the basic questions of management, long-range and current planning on the basis of a tekhpromfinplan [technical, indus- trial and financial plan] of a shipbuilding enterprise. Widely represented are the methods of calculating various tecl,nical and economic indicators. Reference data are given used in planning`the economic activities of a ship- building enterprise. The use of the book`s materials can help in improvin~ the level of economic work at ari enterprise and production efficiency. The handbook is designed for economists, managers, engineers and tecnnicians ai; shipbuilding enterprises. It may also be useful for teachers and students at shipbuilding WZes and faculties, particularly of an engineering-economics specialization. 1 - FOR OFFICIP.L USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY FROM THE AUTHORS - The CPSU and all the Soviet people are directing their efforts at solving one of the most important tasks--providing an all-round rise in production efficiency and an improvement in the qualit~ of work in all the elements of the national economy. The successful solution to this problem is inseparably tied to raising the level of economic work directly at the in3ustrial enterprises and production associations. The better economic work is organized, the higher the cre- _ ative activity of all the workers in seeking out and utilizing production reserves, the more successful.ly the plans outlined by the party and govern- ment will be carried out for a new powerful rise in the economy and the material prosperity af the Soviet people. An important cvndition for L*nproving economic work is a rise in the level of economic knowledge on the part of economic personnel, workers, engineers, technicians and white collar personr~el. The authors, in considerin~ the � ~pecific features of shipbuilding, have endeavored to examine the mast im- ~ portant economic c}uestions in shipbuilding, and to examine them in a most ; accessible form for the workers of the enterprises, and for the instructors ~ and students of the shipbuilding ~UZes and technical schools. The book examines and systematizes the basic questions relating to the mana- gerial organization of a shipbuilding enterprise, economic work, the elabora- tion of a production program, the work of the auxiliary shops, production efficiency, standards and rates, capital construction, the use of fixed productive capital and production capacity, the planning of material- technical supply and working assets, the elaboration of the plan for labor and the wage fund, profit and profitability, the formation of the economic incentive funds., the elaboration of a financial plan, the organizing of internal economic accountability, and so forth. The handbook's materials basically reflect the structure and content of an enterprise tekhpromfinplan. The handbook for an engineer-economist at a shipbuilding enterprise has been prepared on the basis of the current sectorial, intersec~torial procedural and instructional materials, and also practical experience. 1 2 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240020009-8 FOR OFFICIAL i;SE ONLY The ~.uthors are hopeful that the technical and economic inform~.tion provided iri tYic book w~11 help to better provide econnmic leadership, to impr�ove the ~ i'orme, and metliods of economic work, anu more fully utilize the internal product:ion rescrves anc3 cLdvani;ages of the ~ociali st management ^ystem. r'or various rEasons the handbook could not take up all the puestions of economic work at a shipbuilding enterprise. The authors will be grateful to receive prefessional notes and requests. The individual chapters have been written by the following persons: Chapters - 1, 4, 5, 7, 3, 9, 10 by B. S. Dubko (including Chapter 8 jointly with V. Ch. Li); Chapters 11, 13, 1~+ and 15 by N. D1. Zavarikhin; Chapters 6, 8 a,nd 12 by _ V. Ch. Li (including Chapter 8 join~ly with B. S. Dubko); Chapters 2 and 3 _ by F. S. Samsonov. 3 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 , 'r FOR OFFICIAL USE ONLY , ' CHAPTER 1: THE ORGANI~ATION OF MANAGII~IENT AT A SHIPBUILDING ENTERPRISE l. A socialist state shipbuilding enterprise, like any other socialist state production enterprise, is a basic ele:nent of the Soviet national economy. It must turn out a shipbuilding product of suitable quality for the needs of the continuously developing national econo~}r. A shipbuilding enterprise, in utilizing the means of production assigned to it by trie state or at its disposal, carries out its production and economic _ activities in accord with the quotas of the national economic plan and un- ' der the leadership of the superior body. It operates on the ~basis of the principles of economic accountability, it possesses the rights of a 1ega1 _ entity, and independently enters into economic ties with other enterprises and organizations.l 2. A shop of a shipbuilding enterprise is the basic structural subdivision of a shipbuilding enterprise operating on the principles of in- ternal economic accountability. In participating in the general process of _ production at the given enterprise, a shop carries out definite functions to ma.nufacture the basic products or in the area of the technical or eco- nomic servicing of basic production and the enterprise as a whole. Depend- ing upon the shop's purpose, they are divided into basic (production), auxiliary, service, subsidiary and ancillary. Basic (produetion) shops carry out the production processes of manufactur- ing the basic product of the enterprise. Ordinarily they are organized along production lines such as preparatory, machining and assembly shops. AZIxZZZQ2'l~f. shops technically serve basic production and the enterprise as a whole. These include: Repair-machine, electric power, tool, modeling, repair-construction, and so forth. 1The rights and duties of an enterprise are determined by the Statute Governing a Socialist State Production Enterprise approved by the Decree of the USSR Council oP Ministers of 4 October 1965. FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY Service shops (systems) carry out the functioning of the economic servicing of basic produc~ion and the enterprise. These are the transport shops, the waxehouse system, the computer and accounting machine stations, and the com- munications and signaling services. ~ubnidi~xrb shn.pe (~sr~cl,.i~m;~) mc~nufac~ture c:rc~i:I.n~; f.or intern~~] ncedu, ~,nd n1;so prepare certain ~Lruc~;ural material~ foi� the direct-labor method and other purposes. AnciZZary shops produce out of production wastes consumer goods and chip- board, certain building materials, and so forth. The operational and economic activities of the shop are defined by a special statute approved by the enterprise leader. 3. A shop section is a production subdivision within a shop which per- forms a certain portion of technologically similar or a group of different operations in the preduction process. The sections are divided into pro- duction and auxiliary. The production sections can be organized by produc- ~ tion features or in terms of the article produced or the same type of equip- ment. The sections which are organized according to the production feature carry out only a certain type of operations relating to different products. The product sections are set up for manufacturing a certain type of article or assembly, for example, in shipbuilding the shaft section, the assembly and welding of sections, and so forth. Here all operations are performed which comprise the production process on the given article. The organiza- tion of sections by the product feature is the most progressive, as it - helps to introduce elements of assembly-line production and provides a significant economic effect (a reduction in the duration of the production cycle, a rise in labor productivity, the opportunity of combining profes- - sions, and so forth). The following sections can be organized along the lines of the same type of equipment: Large lathes, small or medium sized presses, forging machines, and so forth. 4. The wo r k ar ea is the primary element in the production structure of the enterprise, the zone of the labor activities of a worker or group of workers (brigade) outfitted and equipped with everything necessary in ac- cord with the nature of the jobs performed. In addition to the production equipment (mechanisms) and attachments by which the various elements (operations) of the production process are per- formed, the work area has the necessary means for the equipping of the work area (production supplies, furniture, means of transport, and so forth). . 5 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY The correct organization and serving of the work areas are a most important task of P10T [scientific organization of labor], since labor activity occurs precisely at the work area, and conditions are created which to a signifi- cant degree determine production efficiency. Work areas can be stationary and mobile (route). In shipbuilding the work areas of many professions are mobile (route). 5. ihe management system of a shipbuilding enterprise is the _ aggregate of interrelated organizational, economic and technical measures related to controlling the praduction process at the enterprise. The aggregate of particular production pi�ocesses within the enterprise rep- _ - resents direct production (with its servicing) and is the ob,ject of ms,nage- - ment; the rggregate of information processes influencing production repre- sents the management system or the managing object. ~ The relationship of the production process and the management process at the enterprise is shown in Fig. l. ' Managing Object (Management Process) o v rd ~ ~ ~ ~ ~ 0 0 a-, ~ Object of Management H (Production Process) Fig. l. Diagram of Produc~Lion Management The management system is a specific type of human activity aimed at regu- lating and coordinating the material processes for the purpose of obtaining the greatest production results with the least material, labor and monetary outlays on producing a unit of product. Consequently the people organized into the management personnel are one of the most important elements of the management system. For efficient production management, the workers of the management personnel at an enterprise should utilize various technical de- vices which perform various operations related to converting production in- formation into optimum command decisions. The management system should be organized on the basis of current principles and methods for managing socialist production. The organizing documents of the management system are: a) The structural diagram of enterprise management; 6 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 I FOR OFFICIAL USE ONLY b) The information system which encompasses all the paperwork of the enterprise and all methods and means of data processing; c) The system of office work, as well as the statutes on the line elements and thc functional subdivisions. ~ 6. Principles and methods for managing socialist production management in the broadest understanding is the process of a specific influ- ence on production by the planned shaping of its system, and providing its constant improvement and development. The scientific bases for the management of socialist production were tho- - roughly worked out by V. I. Lenin, and in particular, he advanced and es- tablished the principles and methods for managing social production. The many years experience of socialist construction have shown their great vital force. The Communist Party, in consistently carrying out Lenin's manage- ment principles, has cre~.tively developed them under the new conditions of - economic construction, and has constantly improved the management system considering the acquired experience of socialist management both in our nation as well as in the fraternal socialist countries. Among the most important principles for managing socialist production are: The unity of political and economic leadership, democratic centralism; one- man responsibility and collectivism in production management; the planned management of the national economy and the combining of territorial manage- ment and planning with sectorial; the correct recruitment, placement and � indoctrination of the personnel; the combining of material incentive and moral encouragement; thriftiness based upon the maximum use of scientific and technical achievements in the national economy; control and verifica- tion of execution. The process of production management is based not only on principles but also on methods of economic leadership. Combined in management practices are crganizational-administrative, economic, indoctrinational and socio- psychological methods of leadership. The organizational-administrative metnods of production management are manifested as organizational and administrative effects on the controlled process of material production. They provide for the elaboration of opti- mu*n structures and decisions, the determining of the necessary resources, - the time for carrying out producti�~n quotas, and the establishing of the persons responsible for this. The indoctrinational methods of production management are aimed at the _ greatest possible development of creative initiative and high awareness among the enterprise employees by raising their ideological-political and cultural-technical level. The leader of each production section should clearyy define the range of rights and duties for each worker, and instill in them independence in work and a feeling of responsibility for one's work ~ 7 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY section. Political indoctrination holds an important place in the area of personnel indoctrination, and is carried out by the party, trade union and public organizations. Economic management methods are related to the understanding and utilization of the economic laws of socialism expressed in the directive plan quotas and reflected in the "economic levers." The directive plan quotas are approved centrally by the superior leadership bodies. With their aid the state provides a centralized economic effect on the development of the enterprises by employing a system of economic indi- cators which objectively measure the amount of work and the results of labor by the collectives, as well as the centralized allocation of resources re- quired to carry out the plan quotas. The economic levers are economic ac- countability, prices, profit, the material incentive funds, costs, profit- ability, and so forth. - The sociopsychological methods are based upon an understanding and use of the patterns in the shaping and development of the human psyche, considera- tion of his individual traits and capabilities in performing one or another job (or in the position occupied), and on the use of moral incentives for - labor. The study and use of the sociopsychological labor conditions of - production collectives at the enterprises have a substantial impact on the development of the individual, and through it on production activity or labor productivity. The creation of a good sociopsychological "climate" at an enterprise should be actually expressed in the elaboration and realization of plans for the social development of the enterprise production collectives. _ 7. Management functions. Social pro~3uction which brings together the collective or workers cannot be carried out without management as this pro- vides a unity of actions, coordination and purposefulness in the work of all its subdivisions. The folllowing functions of production mana~ement tiave been established: a) General functions which arise out of the movement of the entire produc- tion organism. These are such functions by which, in the first place, the most important questions of production management are solved and which have _ - a common nature for the entire enterprise, and, secondly, provide a unity of actions for all the component parts of the given production collective. These general functions include: Planning, the coordination and regulation of production, accounting and control; b) Special functions which reflect the specific features of the given enterprise. These functions provide an organizing effect on the special aspects in the activities of the given enterpri.;e. For example, the tech- nological preparation of production, product quality control, leadership of the repair services, and so forth. The special functions of a technical, 8 FOR OFFICIAL USE ONLY _ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY production, economic and management nature make it possible to carry out the necessary organization of production in all its stages; c) Auxiliary functions which provide for the servicing of the processes of general and special management. For example, effice work, plant mainten- � ance, security, forwarding, archives, and so forth. The necessary condi- tions are created by them for the normal activities of all the management elements. 8. Management bodies and levels. In terms of their involvement in ~ the production process, management workers are divided into two categories: the line personnel providing the overall leadership of the enterprise, shop and section, and the functional personnel which assists the line per- sonnel in preparing o?~timum decisions and instructions relating to produc- , tion management. The line personnel is given the right to direct the production and economic activities of the enterprise (shop or section), and here this personnel uses the principle of one-man responsibility and the granted right of authority. The functional personnel provides for the collection and processing of pro- duction information, the preparation of the necessary decisions and in- structions, thereby contributing to effective production management by the line personnel. Along the horizontal the management personnel is divided into functional groups: Department, bureau, ~.roup; along the vertical into management levels: foremen, or leader of a section, shop or enterprise. The levels of the management personnel show a sequence of subordination for the m~.nage- men~ bodies from the bottom up. Thus, the foreman is the first level, the section chief (senior foreman) is the second, the shop chief is the third, and the director provides for the management of the enterprise as a whole. Each level (from the top down) issues planning quotas and indicators to the inferior level. � The composition and relationship of the line and functional management units are expressed in the enterprise management structure. 9� The management structure is an organizatioal form in which the ~ management process is carried out on the basis of the delimitation of management functions by separate administrative subdivisions or management bodies. In the management structure the chain of corrm~and is established Lo the line leaders of both the functional management bodies as well as the production subdivisions. The management structure characterizes the dividing of the enterprise into management stages. Thus, a shopless structure has two and three management levels (director--foreman; director--senior foreman--forman). A shop struc- ture had three and more levels (director--shop chief--foreman; director-- shop chief--section chief--senior foreman--foreman). 9 - { FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 ~ FOR OFFICIAL USE ONLY The enterprise management structure is established in the management scheme, the staff schedule.s and the statutes governing the rights, obligations and relationships of the structural subdivisions, as well as the ,job instruc- tions for the executors. Regardless of the difference in the scale and type:s of pr.oduction, the management functions at shipbuildin~g enterprise:~ are busically homogeneous and expreas merely one or another combination of the management bodies. The structure of the management staff at a shipbuilding enterprise is worked out considering ~the requirements of production, the individual features of shipbuilding work, and the internal and external ties. As the basis for elaborating a rational production struc�':zre it would be possible to use the procedural instructions of the Scientific Research In- stitute for Labor as approved by the State Co~nittee of the USSR Council of Ministers on the Questions of Labor and Wages, as well as the sectorial materials of the standard management schemes and staffs for a shipbuilding enterprise. The organizational management structure of the enterprise and the staffs - worked out in accord with the sectorial stand~rd structures and staffs are approved by the enterprise director. , 10. A SUP and its t asks. An automated enterprise management system (ASUP) is an organizational and technical complex which provides for the most efficient execution of production management functions on the basis of the broad use of mathematical economics methods and electronic computers. ~ The main task of the ASUP is to subordinate all the processes in the ob,ject - of management to the main goal of the enterprise, that is, to increasing the output of proper-quality products with the least material, labor and monetary expenditures. In working out and introducing the automated management systems for an en- terprise (association) it is essential to be guided by the general sectorial procedural materials, including: 1) "General Sectorial Procedural Materials on Creating Automated Enterprise Management Systems." Part 12; 2) "In- structional Guide on Working Out and Introducing Sectorial Automated Man- agement Systems OASU"3; 3) "Procedure for Determining the Economic Efficiency of Automated Management Systems for Enterprises and Production Associations."4 2The collection: "Avtomatizirovanyye Sistemy Upravleniya" [Automated Manage- - ment Systems], Moscow, Ekonomika, 1972. 3Ibid. 4iMatodika Opredeleniya Ekonomicheskoy Effektivnosti Avtomatizirovannykh Sistem Upravleniya Predpriyatiyami i Proizvodstvennymi Ob"yedineniyami" - [Procedure for Determining the Economic Efficiency of Automated Management Systems for Enterprises and Production Associations], Mosc~w, Statistika, 1976. lo FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY Table 1 Calculation of Technical and Economic Indicators Relating to Management [92] Indicators and Calculation Formulas Explanation [b] - [a] a) Rate of expenditures on Py -the ncrmed average listed number of em- ~ enterprise management ployees in the management personnel at the enterprise (association), persons; ~r1y--average annual wages of management em- C= P W 1+ d-~ + C ployees, rubles; y y y 100 e dny--rate of administrative management ex- , penditures (office, business trip, post- al and so forth) in percent of wages of management employees; Ce -annual total expenditures related to the - upkeep and operation of management equip- ment (electric power, film, punch caxds, repairs and so forth), without the wages of employees considered as administrative- management personnel, rubles. c) Coe�ficient~for technical Fb--balance sheet (actual) value of used equipping of engineer and mechanization for engineer and manage- management labor ment labor, rubles; Fy -the equipping rate with mechanization Fb (office equipment) as an average per Kt = P F- engineer or management employee, rubles ~ y per person; P~--the average listed number of engineer and management personnel at the enter- prise, persons. c) Use factor for mechani- Fa--the actual total time of using mechani- zation of engineer and zation (office equipment) by engineer management labor and management labor, hours; Fn--total normed (ca.lculated) use time for Fa this equipment in the given period, Ku = F hours n 11 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY continuation of Table 1 a b d) Mechanization factor for Tm -volume of the given type of work in engineer and management physical units or labor intensiveness as labor carried out using mechanization over the given period, norm-hours; Tm ET--the total amount of this same type of ~ ET work in physical units or labor intensity and performed during the same period, norm-hours e) Average weighted mechani- Kmi--mechanization factor for type i~job; zation factor for all Pi--number of workers employea in performing types of engineer and type i~ob; management jobs at the 1, 2, n--total number of type i,jobs enterprise n G KmiPi 1 Kms - EPi f) Level of technical equip- Fb--balance sheet value of various types of ping of engineer and mechanization (office equipment) fQr - management labor engineer and management labor at the F enterprise for its subdivisions (depart- Yt = Pb ments, services), thousand rubles; y Py -average listed number of engineer and management personnel at the enterprise or in the corresponding subdivisions, persons g) Number of engineer and Ni--the number of units of type i mechaniza- management workers re- tion for engineer and management labor; leased as a result of Epi--the number of workers released in intro- introducing mechanization ducing type i of inechanization, persons; (office equipment) at the qZ--the integral use factor of type i mech- enterprise anization during the shift; q~--the shift factor for the use of type i n of.mechanization during the day; En - G NiEpiqzqc 1, 2, n--the number of i types of inech- i=1 anization - ~ . 12 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY continuation of Table 1 a b h) Proportional amount of Ce--expenditures on the upkeep and operati~n ' expenditures related to of all.mechanization of management labor, " the mechani^ation of rubles; management labor Co--total amount of expenditures on manage- ment at the given enterprise, rubl.es Ce YZ C~ i) Coefficient of~management PZi--number of engineers, technicians and function centralization white collar personnel employed in the plant management and perfarming function K _ PZi i, persons; ~ Poi Poi--the total number of engineers, techni- cians and white collar personnel en- gaged in performing management function i at the enterprise (association) as a whole, including the staffs of these employees located in shops, sections and other subdivisions, persons n ~j) Quality coefficient for ~tni--total losses of working time in the - performance of management 1 various subdivisions over a definite functions period and caused by the delayed and improper execution of function i, hours; n m L tni GFto--the total working time fund of sub- 1 1 divisions i over the same time period, Ky = 1 - m hours; ~ Fto l, 2, m--the number of i subdivisions; 1, 2, n--the number of i management functions k) Coefficient of economic- An--the number of subdivisions provided by ness of management the standard structure which correspond personnel to the established rates of their forma- tion by size; A p Aa--the actual number of structural sub- Ke = Aa Pa divisions at the given enterprise; Pn~ Pa--~orrespondingly the normed and ac- tual number of management employees in all the structural subdivisions, persons (in the event Pa< Pn, thei~ ratio is considered equal to 1) 13 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY continuation of Table 1 t The given coefficient is designed for evaluating +,he degree to which the actual structure and size of the management personnel corresponds to the standaxd structure and normed size established for a specific enterprise (subdivision). 11. Techr.ical and economic indicators of management. In the prac- tical work of analyzing, evaluating a.nd planning the measures for the scien- tific organization of labor of ma.nagement employees, indicators are used and the calculation of them is given in Table 1. 12. Participation of the workers in production management. The management of state enterprises and associations is carried out on the basis of a correct combination of one-man leadership and collectivism in the discussion and resolving of basic questions relating to guiding the activities of the enterprise (association). The socialist management system ob,jectively gives rise to conditions for the inv~lvement of the workers in productiori management. The right of worker pasticipation in production management is reflected in the new USSR Constitution and legislation. The party organizations of enterprises play the leading role in developing the creative activeness of the workers in mar~.agement, and these bring to- gether millions of workers, engineers, technicians and white collax per- so~nel. The trade uniori committees of enterprises play an enormous role in developing the initiaiive of the workers and involving them in manage- ment. The rights of these cor?mmittees are defined in the statute approved by the Ukase of the Presidium of the USSR Supreme Soviet.5 In the practices of socialist management, a whole series of effective forms _ has been elaborated for the direct involvement of the workers and the en- tire collective in discussing and resolving fundamental questions of enter- ~ prise activities. The worker meetings and the permanent production conferences at the enter- prises, in operating under the leadership of the trade union organizations, represent the most massive and effective form of worker participation in production management. They make it possible to find correct decisions, arid they contribute to the political indoctrination of the workers and to mobilizing their creative efforts to carry out the tasks of co~nunist con- struction. SSee: VIDOMISTI VE'RKHOVNOGO SOVETA SSSR, No 39, 1971, Article 382. 1~+ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY The creative initiative of the employees of state enterprises is particu- larly sharply expressed in the mass movement inherent to socialist produc- tion, that is, the socialist competition. The Komsomol organizations, the primary organizations of the Al1-Union Society of Inventors and Rationalizers (VOIR) and the scientific-technical socie~ies (NTO) also participate actively in the labor life of the collec- tive. 15 FOR OFFICIAL USE ONLY i APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240020009-8 FOR OFFICIAL USE ONLY CHAPTER 2: THE ORGANIZATION OF ECONOMIC WORK AT A SHIPBUILDING ENTERPRISE - 13. Economic work at a shipbuilding enterprise is one of the most important components of enterprise management, including planning, control, accounting, financial work, economic accountability and economic analysis. - Its major purpose is to ~.etermine the economic efficiency of new technology, production methods and org~.nization. Economic work at an enterprise is closely tied to the organization of production, labor and wages, to material- . technical supply and the maxketing of products, and to the technical develop- _ ment of the.enterprise. Its basic task is to improve planning, accounting, ` control and the other economic levers for improving the economic indicators - of enterprise operations. The solving of this problem should help to raise production, to rationally utilize labor, material and monetary resources, to improve product assortment and quality, to increase labor productivity, to reduce product costs, to increase profitability, and to improve the financial system. PZanning is one of the most import ant elements in economic work at an enter- prise. It includes the elaborat;ing of all the work indicators for each - shop and production section in accord with the quotas of the state plan, and determines the most rational ways for carrying out the plan quotas. The plan indicators are figured considering the organizational and techni- cal level achieved by the enterprise and the obligatory ful.fil]ment of the technical development pla.n. ?lanning is not restricted to technical and economic indicators, but should include the elaboration of the calex~dar de- tailed and stage-by-stage schedule plans of production for all elements in operational ~roduction planning. Another important element in economic work a't an enterprise is controZ which is aimed at preventing all violations of the plan, the consumption and inventory standards, as well as losses and shortages. Control is closely tied to the organization of accounting. It should correctly reflect the entire course of work in carrying out the plan, the presence and movement _ of a11 assets, the financial results, the state and.utilization of resources, - and their safekeeping. The system of accounting at an enterprise includes bookkeeping, statistical and operational-technical accounting. Very im- port~.nt is the coordinating of all types of accounting, and the subordinating 16 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY of them to the requirements of operational management of the enterprise and its individual subdivisions. The primary documents used in accounting should be organized in such a manner that they record all deviations from the r,ormal production conditions, and provide comparability of' the actual data with the plar.ned for all the essential areas. Financial work as a most important element of economic work r~.t an enterprise , provides for the planned receipt of money from product sales, the use of bank credit and budget funds, as well as their correct channeling to pay - for raw products and materials, wages, the retirement of obligations owed to the banks and the budget. The financial state of an enterprise depends upon the fulfillment of the production plan. At the same time financial work infl.uences production, in exercising ruble control over the observance of planning and financial discipline and the ensuring of the set level of production profitability. Of important significance in the economic work at an enterprise is economic accountabiZitz~ as a method of the planned running of the system o:~ the basis of comeasuring expenditures with production results (in monetary terms) not only as a whole for the enterprise, but also for the shops, sections and brigades. Economic accountability is an active means for raising the level of economic work at the enterprise and its individual subdivisions. Economic anaZysis is an essential and inseparable part of economic work at an enterprise, and includes a study of enterprise operations, an assessment of its results, the disclosure of unutilized reserves and their mobiliza- tion for the best fulfillment and overfulfillment of the plans. Operational economic analysis is an essential means for directing the work of all the enterprise subdivisions, and it helps to strengthen economic accountability and the observance or thriftiness. Economic analysis provides an oppor- tunity not only to check and assess plan fulfillment, but also makes it possible to incorporate the necessary co~rections and improve financial _ work. Economic work at an enterprise is carried out by all the enterprise sub- divisions, but it is directed by the bodies of the economic services, in- cluding: PEO [economic planning department], PDO [production dispatcher - department], ONTIZ [department for the scientific organization of labor and wages], the financial department and the bookkeeping office. The remaining services work closely with them. In economic work an important role is played by the volunteer organizations and bureaus of economic analysis, norm setting, people's control, the technical and economic councils, and - so forth. 14. The functions of an engineer economist. The professional content of the work done by an engineer economist is determined by his theoretical and practical skills required for carrying out a certain range of economic work. The general functions of an engineer economist stem from the tasks which the various economic services of an enterprise must carry 17 FOR OFFICIAL USE ONLY ' APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY out. The basic ones are: Organizing work in the area of planning, norm setting and the analysis of economic operations; disclosing and utilizing internal production reserves; conducting economic research on individual - questions of enterprise economics (labor productivity, costs, profitability, a~nd sr~ forth); calculating the economic efficiency of the capital invest- ments, new equipment, production methods, the output of new types of prod- ucts, the use of new forms and methods for organizing production and labor; � ~the economic background studies for the further development of production specialization and cooperation; improving the existing system of labor ex- penditure standards; the consumption of raw products and materials and working assets; improving the systems of intraplant and intrashop planning; the introduction of intraplant economic accountability and using it to en- sure strict observance of thriftiness in all stages of enterprise produc- tion activities; rationalization of the existing office work system used in planning and accountin~; studying, generalizing and disseminating advanced , experience of production innovators and th~~ best organizing of economic , work at the enterprise; the organizing of ecanomic training amon~ the ~ workers, engineers, technicians and white collar personnel of the enter- _ prise; providing daily procedural and professional help to the public eco- nomic analysis bureaus and groups. In accord wi-~h the basic.tasks, the specific functions of an engineer econo- mist in the department of the plant administration or shop bureau are de- termined by i?is position (instructions). An engineer economist takes an active part in the activities of an enter- prise on a volunteer basis: In the management of the enterprise through the permanent production conferences (PDPS); in the work of the tecnnical economic council; in the work of the plant social organizations such as _ the NTO, VOIR, the BRiZ [Bureau of Rationalization and Invention], and so _ forth. 15. Long-range and current planning. The elaborating of long-range five-year plans is the leading and most important stage of planning. Its task is to convert the production association or industrial enterprise to a higher organizational and technical level, to replace the product range and improve the quality of the manufactured products, to bring about a sub- stantial rise in labor productivity and production efficiency. The produc- tion collective of a shipbuilding enterprise works ot~t a draft plan for its five-year period, in being guided by the control figures of the superior organization such as the all-Union or republic industrial association or the ministry. These figures define the place of the given enterprise in the work of the entire sectorial economic system. The figures for general economic growth are given through the control figures to the enterprises in the form of general indicators. The collectives of the enterprises, in accepting these figures as the basis, concretize their opportunities con- sidering the detected internal broduction reserves, and assume additional obligations in the form of counterplans. ' 18 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY The superior economic body thoroughly examines the draft five-year plan of the enterprise with the p~,rticipation of its leaders, and proceeding from the quotas fo~ the sector as set in the national economic plan, approves the basic indicators which are a state planning quota for the enterprise (asso- ciation). A five-year plan of shipbuilding enterpri~e contains 11 basic section:~, including: I. Product production and sales. II. Technical development and organization of production. III. Indicators fo~ improving economic effi- ciency of production. IV. Standards and rates. V. Capital con~truction. VI. Demand for basic material resources. VII. Labor and personnel. VIII. Costs, profit and profitability of production. IX. Economic incentive funds. X. Financial plan. XI. Social development of the collective. The plan for the production and sale of products is the first and most im- portant section. To a significant degree its indicators determine the eco- _ nomic results of the collective of the enterprise (association). In compiling the draft plan for the production and sale of products, the ~ enterprise proceeds from the control figures for the production of the m.ost important product types (by range and assortment) which are issued by the superior organization, as well as from the system of existing economic ties. Relying on contracts with the consumer and client enterprises, the enter- prise independently adjusts and supplements the control figures. Here in order to know its possibilities for expanding the production volume, the enterprises establish this by the calculations of production capacity. As the amount of capacity they use the maximum possible product output under _ the best conditions: With the complete utilization of equipment, progres- . sive production methods, and providing a scientific organization of produc- tion and labor. A consistent incz�ease in production over the years of the five-year period can be achieved both by improving the utilization of existing machinery a.nd equipment, as well as by completing and operating new capacity. Al1 of this is reflected in the planning balance of production capacity at the enterprise on the basis of which the production program is drawn up and the output of commodity product is determined. The latter is calculated by multiplying each type of the planned product range by the established whole- sale price. On the basis of the thus obtained overall cost of finished products, the volume of product sales is figured. Broad opportunities for improving the planning of product output and sales can be found by creating production and industrial associations. These lasge economic structures establish.stable ties between themselves, and for this reason in their plans they make more accurate provision for recip- rocal deliveries of the required products and the rendering of services. The sales plan becomes sounder and more stable. The "corrm~~rcial" or market- ing and financial activities~in many instances are shifted to the associaW tion, while the enterprises and production affiliates can focus their atten- tion more fully on utilizing the internal production reserves, planning E, 19 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY technical development, and the introduction of scientific and technical achievements. The incorporation of an additional indicator for evaluating enterprise operations, the fulfillment of quotas and obligations for product deliveries, introduces new features into working out the plan for the production and sale of products ~,t them. The use of this indicator which provides monthly reporting on its fulfillment requires the preparation of a precise delivery plan, where the obligations of the supplier should be strictly fixed in accord with the approved plans for the production and sales of products and the concluded contracts, with the aupplier bearing responsibility to the . clients for their fulfillment. Thus, in contrast to previous practices, the delivery plan has been turned from an internal working doc~ent of the marketin~ service to an important planning doctur?ent which should be care- fully coordinated with the production program of the enterprise and the association. This requires a complete and closer coordinating of produc- _ tion and marketing activities by the workers of all the plant services in - the process of working out the plan of indicators in order to ensure strict _ observance of economic discipline. Of great importance are the second and third sections of a plant five-year plan, the "plan for the technical development and arganiza.tion of produc- tion" and the "plan for improving the economic efficiency of production." Since scientific and technical progress is the main factor which determines the accelerated course of economic activities in our times, the indicators of the second section of a five-year plan become the base ones for the other plan sections. The elaboration of the plan for technical development and the organization of production provides broad scope for the engineers, workers and the en- tire collective to show technical creativity and to disclose new reserves and organize their finding. Along with the measures to develop the technology and production methods and to improve product quality within this section measures are formulated to improve NOT, the management system and the organization of production at the enterprise, to protect nature and to make rational use of the natural. resources. One of the important sections in an enterprise five-yeax plan is the system of planning technical and economic standards and rates. The long-range standards and races are worked out in accord with the planned measures to improve production efficiency, and they embody advanced experience. The soundness.of planning depends laxgely upon the progressiveness of the standards and rates. Of primary significance is the correct norming of material expenditures (approximately 70 percent of the cost of shipbuild- ' ing products), but it is also essential to more accurately determine the standards for the use of equipment, labor expen3itures, and so forth. 20 - FOR OFFICIAL USE ONLY _ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 ' FOR OFFICIAL USE ONLY ~ Inherent to each of the subsequent sections of the long-range plan (capital construction, material resources, labor and personnel, costs, profit and profitability of production, the economic incentive funds, finances, and the social development of the collective) are its own functions and tasks in developing and improving enterprise production efficiency. 16. The tekhpromfinplan, its composition and content. The tekh- promfinplan [technical, industrial and financial plan] is a full-scale pro- gram for all the production, economic and social activities of the enter- prise collective aimed at carrying out the quotas of the five-year (annual) plan with the fullest and most rational utilization of the material, labor, financial and natural resources. The new system of planning and economic incentive has introduced substantial changes into the content and nature of the enterprise tekhpromfinplan. At present, under the conditions of broad enterprise independence and the con- tinuous rise in production efficiency, the demands are also rising for work- ing out a tekhpromfinplan which would become an effective instrument in or- ganizing the most effective activities of the collective. ~ Considering the demands made by the new management system, the USSR Gosplan has approved (Decree of 19 October 1977, No 125) a standard procedure for - working out the tekhpromfinplan of a production association (enterprise).1 _ The tekhpromfinplan of a production association or enterprise in the ship- building sector is worked out for the following sections: I. Production and sales of products. II. Technical development and organization of pro- duction. III. Indicators for raising economic efficiency of production. IV. Standards and rates. V. Capital investments and capital construction. VI. Ma~erial and technical supply. VII. Labor and personnel. VIII. Costs, profit and profitability of production. IX. Economic .incentive funds. X. Financial plan. XI. Social development of collective. XII. Conserva- tion of nature and rational use of natural resources. XIII. Plan of ex- ternal economic ties. XIV. Plan for creating automated management systems and computer subdivisions. 17. The shop technical and economic plan. Internal plant tecLlnical and economic pla,nning is carried out by working out annual (with a quarterly breakdown) and quarterly (with a monthly breakdown) plans for the produc- tion and economic activities of each enterprise structural subdivision (shop). The internal plant shop plans and the technical and economic indicators for the year bein.g planned a.re worked out in two stages. In the first stage, 1See: "Basic Procedural Provisions and the Procedure of Elaborating a - Tekhpromfinplan," EKONOMICHESKAYA GAZETA, No 50 (December), 1977. 21 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY on the basis of the directive indicators of the enterprise tekhpromfinplan, _ the corresponding departments under the procedural leadership of the eco- nomic planning depaxtment and with the participation of the shops, worked out the basic planning quotas for each of the shops and these are coordi- nated with the final indicators for the enterprise. The most important in- dicators for the production activities of the shops are approved by the enterprise director, including: 1) The folume of gross product determined - in the plan on the basis of the summary schedule for building ships and the sper_ific shop-stages of the given shop; 2) commodity product which is de- termined in the plan from the cost of the fully completed shop-stages or machine-sets; 3) commodity output as the tota.l value of payments for the partial completion of ships the obtaining of which by the plant to a deci- sive degree depends upon the work of the given shop; 1+) the basic range of jobs in pY~ysical units and this in the annual plans is given in a consoli- dated form; 5) the number of employees; 6) labor productivity; 7) total wage fund; 8) cost of a unit of shop product; 9) the quotas for introducing new technology including plant-wide measures; 10) material incentive fund; 11) percentage of shop expenditures. _ In the second stage of technical and economic planning, on the basis of the apFroved basic indicators, the shops work out a complete program of their production and economic activities for the year, and this is called the tel:hekonomplan [technical and economic plan]. The tekhekonomplan is aimed at the fulfillment of the directive indicators set for the shop with a continuous rise in production efficiency and the fullest utilization of the production area and equipment. The tekhekonomplan, the elaboration of which involves the shop collective, r includes the following sections and documents: 1) The general plan indi- cators; 2) the stage schedule for ship construction; 3) the annual produc- tion plan; a complete plan for gross product; 5) a full plan for co~odity product; 6) the calculation of the wage fland by employee categories; 7) staff schedule for engineers, technicians, white collar personnel and junior serv- ice personnel; 8) a plan for improving the technical level of production; - 9) a calculation of the planned cost of each unit and the entire coimnodity product of the shop; 10) an estimate of shop expenses. The individual sections of the tekhekonomplan are coordinated with the cor- responding functional departments of the plant administration, and the en- tire tekhekonomplan is approved by the economic planning department. 18. Directive technical and economic indic~.tors of a tekhprom- . finplan. For shipbuilding enterprises, the directive indicators are the following: a) For production--the volume of sold product in thousand rubles; co~nodity output (paid for) in thousand rubles and the production of the most important product types in physical units; here individually given are: 22 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 ~ FOR OFFICIAL USE ONLY i) For shipbuilding: the construction and delivery of vessels i~.i the num- ber of units for all plans; the total percentage of the advancemtint of � technical completion according to the plans as a whole for all the ships, � as well as for the ma~or auxiliary, seagoing and fishing vessels (with a building cycle of over 1 year); _ ii) For ship rep~,ir and reequipping: the riumber of vessels undergoing re- " pairs and reequipping; the volume of commodity output according to the plans, thousand rubles; iii) For export deliveries (with the exception of shipbuilding); the total volume of sold product, thousand rubles, including to be sold for freely convertible currency; the delivery of products in units (sets) according to the established range; iv) For the products of interplant cooperation (MZK): the total volume of sold product, thousand rubles; the delivery of products in units (sets) according to the established range; v) For cultural and household cou~odities: the total voliune of sold prod- uct, thousand rubles; the delivery of products in units (sets) according to the established range; vi) For intersectorial deliveries (to other ministries): the total volume - of sold product, thousand rubles; product delivery in units (sets) accord- ing to the established range; vii) For other products: the tonnage of finished castings, forged and ~ stamped pieces; delivery of products in units (sets) according to the es- tablished range; b) For labor: the tetal wage fund, thousand rubles; labor productivity (product output per worker); c) For capital construction: the total volume of centralized capital in- vestments, including "reconstruction," and "technical reequipping," thou- sand rubles; the completion of fixed capital from the centralized capital investments, thousand rubles; d) For introducing new equipment: the quotas for developing the produc- tion of new types of products and introducing new production processes, mechaniza~tion and automation of production having particularly important significance for the development of shipbuilding; e) For material and technical supply: the volume of deliveries to the enterprise of raw products, materials and equipment allocated by the min- istry in physical and monetary units; - f) For finances: the total balance sheet profit, thousand rubles~ total profitability (to the total fixed productive capital and normed working 23 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY capital), percent; payments to the budget, including payments for the fixed productive capital and norm~d working capital, thousand rubles; the pay- ment of the free profit balance, thousand rubles; allocations from the budget, including for: capital investments, thousand rubles; the running of childxen's preschool institutions, thousand rubles; the increase in the working capital rate, and so forth; g) For the economic incentive funds: total, thousand rubles, including: material incentive fund, thousand rubles; the fund of sociocultural measures and housing construction; production development fund, thousand rubles. , 2~+ FOR.OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY ~ CHAPTER 3: THE PRODUCTION PROGRAM OF A SHIPBUILDING ENTERPRISE 19� The content of a production program. The basic division of a tekhpromfinplan which defines the entire quantitative and to a significant degree the qualitative aspect of an enterprise's production and economic activities is the plan for the production and sale of products. The produetion program is a list of products manufactured by the enterprzse, the quantity of the products in physical and cost terms, and the output dates. The production program serves as the initial basis for calculating the de- ma,nd for materials, ship equipment and preassembled articles, as well as for labor and monetary resources. The product structure and volume set in it determine the nature of organizing the production process, and they cre- ate the prerequisite for the introduction and use of new equipment. The range, assortment and output dates of the products have a great effect on the use of enterprise capacity, the level of labor productivity, production costs and profitability. All of this necessitates a careful setting of the production structure and volume, and raises a number of demands on compiling the production program. - These demands include: 1) the ensuring of high, steady growth rates of , general and monthly product output;.2) the fullest utilization of the ca- p~,city of the enterprise and its shops; 3) a deepening of the process of general plant and intraplant production specialization and cooperation; a rational distribution of produced product by calendar dates within the planning period considering the full utilization of the fixed capital and the creation of prerequisites for an even course of production. ' 20. Indicators of the production program and their measurement. The list of the industrial product manufactured by the enterprise is called the rcznge of the production progrcnn; the quantity of the product produced by Each type and as a whole for the enterprise is the product voZtane. The enterprise's product volume is measured in physical and cost units. ~ The physical units for the product volume axe pieces, sets, tons, cubic 25 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY meters, and so forth. In shipbuilding, considering the extended buildin~ cycle of the vessels, specific physical units are used such as the percent- age of the technical completion of the v~essel and tlie advance of the tech- nical completion of the vessel over a, certain period. A physical measurement can express the volume of only a uniform (same-type) product. But a shipbuilding enterprise builds vessels simultaneously under several plans, it manufactures scores of types of products, and delivers them under interplant cooperation to other enterprises, as well as produces several types of consumer goods and other products. It is possible to unify - these diverse articles for determining the product volume as a whole for the enterprise only by a cost measurement of them and this is achieved through the wholesale prices of each product type. In practice for these purposes two types of prices are used: the wholesale prices current in the given year and f~xed (comparable) prices. The latter type of prices is essential for comparing the product volume over a number of years and disclosing its dynamics. The product volume of each enterprise is assessed not by one indicator, but rather by a group of interrelated indicators, each of which reflects the product volume in one or another type corresponding to the individual stage - of its production or sales. In industry there are the following types of product volu.~nes: The volume of sold product, commodity product, incomplete production and gross product. The volume of sold product represents the value of the finished products, semifinished articles and various products oF the auxiliary shops sold on the outside,.to one's own capital construction and to one's nonindustrial facilities. The volume of sold product also includes: the value of the work of an.industrial nature carried out under orders from the outside or from one's nonindustrial facilities and organizations; the value of the ma~or overhaul of equipment and transport, and equipment of one's own produc- tion listed among the fixed capital of the enterprise. Thus, by the voZume of soZd product one understands the sold co~nodity product reflecting the results of the industrial and economic activities of a given enterprise. The composition of the sold product differs from the composition of the com- _ modity product over the corresponding period in the fact that the sold prod- uct does not include the value of the finished articles at the enterprise's warehouses as well as the value of the shipped articles the money for which _ has not been fully received at the payment or special loan account of the enterprise by the end of the planning period (year, month) as well as in the fact that the volume of sold product should include the value of the articles produced in the period preceding the planned one the money for which has been received by the enterprise during the planning period. 26 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY In contrast to the general industrial method, in shipbuildin~ soZd product for large ann medium vessels paid for in terms of partial completion is con- sidered to be a vessel which has~ not been paid Por but accepted by the orderer (at the moment of signing the act of acceptance). For small vessels which are paid for by a single payment with 100 percent completion of the vessel, the determining of sold product corresponds to the general industrial method, that is, the vessel paid for by the orderer is considered to be the sold product. The sold valuable materials (raw products, materials, intermediate products, fuel and so forth) which are not the result of the production activities of a given enterprise are not included in the volume of either the sold or the commodity product. Also not included as part of the sold product are the work and services of a nonindustrial nature (the products of the sursidiary facilities and agriculture, work of a construction nature, and so forth) which are planned and accounted for in the corresponding national economic sectors. The planned total of sold product (PS) is calculated proceeding from the ~ production volume of commodity product using the following formula: PS = TP + ZS - Ze where TP--commodity product in wholesale prices; ZS--balance of unsold product at start of planned period; Ze--balance of unsold product at end of planned period. The volume of sold product is determined in the plan in the wholesale prices of the enterprises (without the turnover tax) effective in the planning i period or in prices equivalent to them (retail minus the turnover tax, the trade and marketing rebates, the various zonal prices and so forth), that is, in the prices used for calculating the volume of co~nodity product. For determining the planned gro-,ath rate of sales using these prices, the report data on the sales volume of the previous (base) year are recalculated using the methodology accepted in the year being planned. As the prices current in the planning period, they use: a) the fixed whole- sale prices in effect at the moment of compiling the plan when these prices do not change during the year being planned; b) the fixed wholesale prices to be introduced on 1 January of the year.being planned and approved in the proper order; c) temporary price~ the effective time of which does not lapse by the beginning of the year being planned; d) conditional contractual prices which are set in the event that by the moment of concluding the prices _ for the delivery of new product types, a temporary price has not been set and then only for those product types for which the setting of such prices is allowed. 27 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY With a change in the wholesale prices for the product after the setting of the production and sales plan, the indicators for the volume of sold product are reviewed and reset in the establisfied manner. The volume of commodity product at a shipbuilding enterprise includes the following: finished products manufactured and sold in the period being planned, as well as the products manufactured and delivered to the ware- house for sale in subsequent periods. The voZume of corrnnoditz~ product is defined as the total value of: The ves- sels built and delivered to the orderers; the finished and semifinished prod- ucts which have been produced in the period being planned and are destined for outside (including for capital construction and the nonindustrial facili- ties of one's own enterprise); the finished machine building products manu- factured under the subcontracting plan. Commodity product is defined as follows: for vessels, by multiplying the current wholesale price by the number of completed vessels of the given design; for finished and semifinished products, proceeding from the current _ price and the corresponding quantity of the given product. Commodity product includes the fully completed articles and semifinished products which meet the standaxds and technical conditions. Re,jected prod- ucts are not included in the volume of commodity, sold or gross product, if they have not been shipped to the outside. The value of a vessel which has been completed and turned over to the orderer under the act of acceptance is considered to be the coirmiodity product for an individual vessel. The volume of commodity product Tp for the enterprise as a whole can be com- puted using the following formula: m TP - G niPi + Mt + Yt ~ i=1 where ni--the number of vessels i delivered to the orderer; _ Pi--the wholesale price of vessel i delivered to the orderer, thousand rubles; Mt--commodity product of the machine building products, thousand rubles; Yt--corrunodity product of other products and services, thousand rubles; m--number of classes (designs) oP vessels. The volume of commodity product is planned in the wholesale prices of the enterprises (without the turnover tax) existing at the moment of compiling the plan. The produ.cts manufactured under individual orders fer which there are no approved wholesale prices are assessed at prices agreed upon in the delivery contract or at the planned prices. The value of the ma,jor overhaul 28 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ~ on equipment and transportation of the enterprise is assessed using the - planning estimates for the enterprise repair and machine shop. The total product volume produced by the enterprise regardless of the degree of ats completion is termed the gross product. According to the plant method the gross product is considered to be the value of all the finished and semifinished products produced over the report period minus the value of the product used for internal production and consumed for industrial and produc- tion needs inside the given enterprise during the report period (regardless of whether the consumed product was produced during the report period or earlier), as iaell as the value of the work performed of an industrial nature (under outside orders, for indus~rial facilities and organizations of one's own enterprise, for major overhaul and capital construction). The volume of the gross product for shipbuilding Bps is planned proceeding _ from the zaholesale price of each vessel and the planned percentage of the advance of its technical completion, and is determined by the formula: nc ai Bps G P1100 ' i=1 The total volume of gross product at a shipbuilding enterprise consists of the gross product for shipbuilding, machine building and all types of in- dustrial services: nC ai BS L Pl 100+Bm+Yt~ i=1 where BS--the gross product total for all vessels, for machine building and for all types of services, thousand rubles; Pi--the wholesale price of vessel i, thousand rubles; ai--the advance of the technical completion of vessel i, thousand - rubles; _ n--number of vessels (of all designs) according to production plan; Bm--the gross product of machine building in comparable prices, thousand rubles; Yt--the commodity product of other articles and services (the value of all types of industrial services performed both for the outside as well as for the home enterprise), thousand rubles. The gross product of machine building includes the commodity product with the addition of the value of the increase (with a plus sign) or decrease (with a minus sign) for incamplete production. The formula for calculating gross product has the following.form: ~ = Mt+ (Pe-PS), 29 = FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY where Bm--gross product in comparable prices, thousand rubles; Mt--commodity product in comparable prices, thousand rubles; Pe--incomplete production at the end o2' the period being planned; PS--same for the begi:nning of the peri:od lieing planned, thousand rubles; ~Pe-Ps~--change in the balance of incomplete production over the period being planned, thousand rubles. For simplifying the calculation of gross product, it has been established that a chan~e in incomplete production is considered only for products for . which the production cycle exceeds 2 months. For all other machine building . products and services, the vol~e of gross product is considered equal to the commodity product. The technical completion of each vessel at the beginning and end of the period being planned is determined on the basis of a system of planning and accounting units employed for the internal plant planning and accounting of shipbuilding. The official document which defines the composition of the ir~dicators for sold, commodity and gross product is the Standard Instructions for Compiling the Reports of Industrial Enterprises on Plan Fulfillment for the Products as approved by the USSR TsSU [Central Statistical Administration] with the agreement of the USSR Gosplan and the USSR Ministry of Finances. At present, in effect are the provisions of the Standard Instructions approved by the USSR TsSU on 11 May 1971, No 4-104 (Moscow, Statistika, 1971). Corrmtoditz~ output (sold output The indicator of sold product in ship- building is characterized by significant unevenness. This is explained by the fact that the building cycle for medium and large vessels runs into many months and even years, and the wholesale price of the vessels is hundreds of thousands and millions of rubles. In building medium and large vessels, the product realized for them arises periodically after significant intervals of time. For this reason, along with the indicators of co~nnodity and sold product, in shipbuilding an additional indicator is used, the com- modity output (sold) which reflects the termination of the basic stages of building the vessels. For each completed stage of building the vessel, a shipbuilding enterprise receives a certain amount of the value.of the vessel from the client. The total of the received intermediate payments for the completed stages of building the vess.el comprises the amount.of the sold commodity output. The volume of the sold commodity output at a shipbuilding enterprise con- sists of two paxts: the value of the intermediate payments by the orderers for the partial completion of the vessels under construction when these pay- ments have been deposited to its payment account, and from the sales volume of the remaining products. 30 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240020009-8 FOR OFFICIAL USE ONLY - Paymt~nt scY~edules are wor�ked out for the p~,ymente for the vessels under construction c~,nd Por planning the solci commodity output upon agreement be- tween the slii~building enterprise and the orderer. The approved lisi; of payment stages with tlie indicating of the proportional significance of each of them in percent of the wholesale price is termed the payment seheduZe. The proportional significance of each payment stage is determined proportionately to the labor intensiveness of the group of ,jobs encompassed in the given stage. The number of payment stages depends upon the size and complexity of the vessel, and upon the duration of its - construction; it varies from 10 to 100. The soZd corrunod2ty output for an individual vessel is the name given to the value of the intermediate payments paid by the orderer (with the excep- tion of the last) from the moment the money is deposited on the enterprise's payment account. The final delivery payment is included in the sold commodity output after signing the act of acceptance (regardless of the moment the last payment is made). - The volume of the sold commodity output in the plan is calculated in current wholesale prices of the enterprise as set in the plan for calculating the volume of conunodity product. The planned ~rowth rate in the volume of sold corru~odi~y output essential for figuring the planned amount of the economic incentive funds is determined in comparable prices. For this the sold com- modity output of the base year is recalculated in the prices of the year being pl~.nned. The procedure for calculating the volume of commodity output in a comparable estimate is given in Point 105 of the Instructions on Planning and Account- ing for Production and Costs at Shipbuilding Yards. 21. Normed net product. At a ma,jority of enterprises in the shipbuild- ing industry, as in other sectors, the production volume is measured on the basis of the indicator of gross product, as well as labor productivity, the return on investment, and the utilization of the wage funds is assessed. However, the production volume and the volume of gross product are not iden- tical indicators. Crross product characterizes the total value of the produced product, includ- ing the value of the consumed means of production and the newly created value. The production volume is only +,he portion of gross product which characterizes tlie result of the particular eFforts of the employees at a given enterprise in manufacturing the product. The produc~ion vol~une in its amount equals tlie newly created value which in economic theory has _ gained the si.mplified name of net product, that is, the product created by the "live" labor of the employees of a given collective but which does not consider in its amount the value of the consumed means of production. 31 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY If an enterprise year in and year out produces the same range of products ~with a fixed proportional amount of each product in the total product volume, then the dynamics of the product volume and the production volume virtually coincide. Tn this instance gros~ product can witli suf.~icient reliability serve as an estimate Por the dynamics of the production volume, for calculat- ing labor productivity and the return on investment, as well as for con- trolling the use of the wage fund. At a ma,jority of shipbuilding enterprises, product range and the proportional a.mount of the same products in the total product volume are constantly chang- , ing. Under these conditions the gross product indicator provides a distorted notion of the actual rise in the production voliune and the other indicators _ stemming from it, since each type of product has its own unique ratio be- tween the value of the cons~ed means of production and the newly created value. This circumstance leads to the appearance of "advantageous" and "disadvantageous" products from the viewpoint of achieving the set volunies of gross product and a labor productivity level. The "advantageous" products are those which in their total value have a high proportional amount of material expenditures with relatively low labor expenditures for manufactur- _ _ ing them. Zhe "varying advantage" of products requires that individual production leaders seek out "advantageous" products for incorporation in the plan of the forthcoming period. In the course of carrying out the set plan, work is artificially sped up for the "advantageous" orders, and with the overall limitation on the labor capabilities of the collective, this leads to a d~- cline in the output of the "disadvantageous" articles. As a result of such "assortment shifts," the gross product provides a dis- torted notion of the actual operating results of the enterpr.ise for the most important axeas of the dynamics of the producti,:,n voltm?e, the level of labor productivity, and so forth. The essence of planning and calculating the production volumes on the basis of the net product indicator consists in the following. In the sa.me manner that each a:rticle should have a wholesale price for determining the volume - of gross product, for determining the volume of net product the appropriate rates should be establi.shed. The volume of net product is determined by multiplying the planned and actual output of products in physical units by the established rate of net product for each type of product. For this reason, the production volume set by the designated method is termed the normed net product.. For the shipbuilding enterprises, two types of net product rates have been set: 1) specific rates per unit of.product which are employed for planning the products included in the enterpri:se plan in the form of a s.eparate range; - 2) specific rates employed for reea~culating the gross product into the normed _ net product in planning relatively small products each type of which is indi- cated in the plan by one general name. 32 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY At shipbuilding enterprises, the volume o#' the normed net product is de- tei~rnined in the following manner: a) for the shipbuilding orders, the per- . centa~e of.thc~ advance of the technical carripletion of each vessel i~ multi- - plied by the corresponding net product rate; for macfiine building prod- ucts which have a specific net product rate and for which a change in the balance of incompZete production is not considered in determining gross product, the quantity of uniform products is multiplied by the correspond- ing net product rate; c) for product (jobs) having a proportional net prod- uct rate, the volume of the gross product is multiplied by the correspond- ing proportional net product rate. The indicator of normed net product is designed to assess the amount of ~aork done by the enterprise itself and the dynamics of this. On the basis of this indicator, labor productivity and the return on investment are measured, and in addition the necessary wage fund of the enterprise's industrial-production personnel is determined. 22. The content of a shop's production program and its particular f eatures. A shop production plan establishes the range and amount of work done by a shop; together with the plans of the other shops it provides for the fulfillment of the set plan for the production and sale of products by ~the enterprise. In the annual shop tekhekonomplan the production plan is br�oken down for the quarters. With the start of each quarter, this plan is ad,justed and broken down by the months. The gr�oss product of a shop for the vessels includes the amount of work on fully completed production complexes, and for nonshipbuilding products, the amount of work for completed machine sets. If a machine building product has an extended manufacturing cycle, then its machine sets are divided into ~ indi.vidual assemblies (subsets), and the amount of work on the completed assemblies is included in the shop's gross product. The corn~~nodity product of a shop includes: for vessels the volumes of work on fully completed shop-stages, and for the nonshipbuilding products, the ti-olumes of work for fully completed machine sets. The value of the payment stages assigned to a shop for the vessels under ccnstruction wit.h the addition of its commodity product for nonshipbuilding orders is c~nsidered to be the eommodit~ output of a shop. In contrast to the commodity output of an enterprise, the value of the payment stages are included in the shop's report for this indicator from the moment of signing the certificate on comp].eting the work for the ~iven payment stage, and not from the moment of the depositing of the money in the enterprise's payment account. ~ In a shop's annual plan for production, the most important product range is considered to be the list of vessels to be built with the shop's partici- pation during tlie year, including the head and delivery vessels, as well as the list and quantity of ma,jor machine building products the machine sets 33 FOR OFFICIAL US~ ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY ' of which should be manufactured by the shop without fail. In the quarterly production plans, the range of the most important products of the shop is - given in a more detailed Porm, by shop-stage~~ In a shop's production plan for a month, the range of tlie most important product~ is detailed even further. It includes a list of the production set~ whicfi provide a work- front for ad~acent shops, the rec~iving of payments and other important moments in the building of the vessel. 23. The method of compiling a production program. A production program, as was gointed out in �19, is a list of the products manufactured by the enterprise with the indicating of their quantity in physical and cost terms~and the output dates. The indicators of a production program are: the range of produced product, its quantity in pnysical units and the indi- cators of �~ze product volume (gross, co~odity and sold product and commodity - output). A sample form of an annual plan (program) xor the production and sale of products at a shipbuilding enterprise is given in Table 2. The plan for the production and sale of groducts for the year being planned is worked out on the basis of the followin~: The enterprise long-range ' plans, the directive quotas of the superior organization, the calculations of production capacity and the planning technical-economic standards and rates. The basic document which determines the indicators of the production program in shipbuilding is the summary shipbuilding schedule. The summaxy schedule is worked out by the enterprise's economic planning department with the paxticipation of the production dispatcher department, the technologic~l service and the builders of the ships. It includes all the vessel's to be built in the year being planned, regardless of the state of their completion. The summary building schedule for refrigerator ves- sels of the so-called cascade form is given in Table 3. Such a schedule is most convenient for depicting the building of the vessels using the flow- position method; with a more complicated program it is constructed in a line form.. - From the graph it can be seen that during the year, seven refrigerator ves- sels will be under construction. Each vessel is recorded in the plan (see Table 2) in a separate line, and on the basis of the data of the summary schedule a11 the indicators characterizing the construction of the vessel are placed in the lines of the plan. For example, the vessel of the plant No 8 at the beginning of the year is 70 percent ~inished and should be de- livered in April, that is, 100 percent complete at the end of the year. These data are inserted in columns 7 and 8. The difference between comple- tion at the end and start of. the year is 30 percent (100-70), and this amount is placed in column 9"Advance of Completioii." By multiplyin~ the compared price of the ve~ssel (12.8 mil.lion rubles).by the advance of its technical completion (30 percent), we obtain the volume of gross product for this vessel during the year, 3.8~+ million rt~bles (see colwnn 10). Then from the graph we establish that in January-April, for ship No 8, 18 pay- ments were to be received, Nos 33-50, and the total proportional amount of 3~+ FOR OFFICIAL USE ONLY - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY :'~nnual Plen (Program) for the Production and Sale of (figures ~ pric~ tech. c ~ ~ 1000 R pletion, . a T u a �J a product ~ ~ Q ; b ~ _ ~ ~ ` � ~ ' o m c: o u ~ Q x ~ q Y ' . ~q C1 ? S ~ ~ ~ m~ o ~ Y m ~ m q C C 1 2 3TI ~ b 6 7 8 I Pe�~pNmepaTOp~? npoex�ra A 8 12 800 12 800 70 100 9 12 800 12 500 45 100 10 12 800 12 500 10 100 11 12 800 12 500 3 65 12 12 800 12 500 - 40 13 12 800 12 500 - 15 14 12 800 12 500 - b I Total far A design _ _ 2 I'I3A~1HA MC3K38BOACKO$ KO- - _ _ , _ onepauxx (M3K) 3 NsAe.nxA ~eNCOTpacneso~ - - _ _ ~ xoonepauHx ' 4 HaAenxR xaponHOxoss~5- - _ _ _ _ craeHxoro nnaxz - . e, B ~{oM 4xcae: - b J a) XNMN4@CK02 o6opy- - _ _ _ Aoeaxxe C~ 6) xapKac~t TpaxTOp- 15 000 - - - _ _ x~x npxuenoe 5 Ns1te.~xx xapoRxoro no- - - _ _ _ TpeC)JI2HHA, B TOM 4NCJI@ - - _ _ _ 111QC)211b JjBpeBAHHBA 6 I7poeag npoAyxuxa - _ _ _ _ e, B Toa~ yxc~ce: d) a) no YKCY - - - _ _ - e ] 6) fS8IIAY8RbH61~1 P2MOHT - - _ Total - - - - - - Key: [number at left ma,rgin] 1--A-design refrigerator vessels; 2--products of interplant cooperation (MZK); 3--products of intersectorial cooperation; k-- products of national economic plan; a--including; b--chemical equipment; c-- tractor trailer frames; 5--consluner products, including wooden f~Zrniture; 6-- other products; d--capital construction dept.; d--ma.~or overhauls; [numbers at top] 3--quantity; ~+--plant vessel number; 5--compareble on 1 Jan 75; 6-- current; 7--at yeex's start; 8--at year's end. 35 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 f FOR OFFICIAL USE ONLY ~ Table 2 Products by Shipbuilding Enterprise conditional) co~nodity b ~ ~ output ~ ; ~ ` m ~yment oy ~ a ~ 9,; _ ~ !1 rg~li ~S F S Yv po A ~ ~�a+ ~ a ~ ~ ~ ~ a o i ~ ao^ :a ~ C C u ~ ~ ~e0 a f ~ N a~o ~ m ~M �m �m mp~ s=~o a' = C oQ a4i '~P 7,N^., ~9 q0. ~oa yiA~ ~ O. O V O 4 9 ~ n a O v A~ va 10 Y~ 00~ s Tn ~ .T~m Fh S~"~�~ OK.: 9 10 I1 l2 18 l4 ]S 18 17 30 3 840 33-50 35 4 500 - 12 800 - 12 800 55 7 050 22-50 60 7 500 - 12 500 - 12 500 90 11 520 10-50 90 11 250 - 12 500 - 12 5pp 62 7 940 1-32 65 8 140 - - - _ 40 5 120 1-20 38 4?60 - - - - 15 1 920 1-5 10 ! 250 - - - - 5 660 - - - - - - - I ~9? 38 050 - - 37 400 - 37 800 - 37 800 - 2 500 - - ~ 2 400 -{-100 2 400 - l50 2 550 - 1 400 - - 1 450 -50 1 450 - t. 450 - 1900 - - 1875 -{-25 1875 -}-50 1825 - 550 - - 575 . -25 575 . -50 625 - 1 350 - - 1 300 -~-50 1 300 ! 00 1 200 - 1800 - - 1800 - 1800 -75 17475 - ~ - - 650 ' - 650 -25 675 - 375 - - 375 - 375 - 375 - 150 - - 150 - 150 - 150 - 225 - - 225 - 225 - 225 - 36 025 - - 35 300 - 45 650 - 45 875 Key: 9--advance of completion, 10--gross product, 1000 rubles; 11-- stage number; 12--proportional amount; 13--total, 1000 rubles (6)�(12); 14-- change in balance of incomplete production; 15--commodity output*, 1000 _ rubles (10)-(14); 16--cha.nge in balance of unsold product, 1000 rublea; 17--volimte of product sales*, 1000 rubles (15)-(16). * Calcule,tion formula valid only Por nonshipbuilding products. ~ 36 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY i ~ ~ i ~ ~ ,c~ m ~ ~ . ~ ~aQ a ~x ' ~ a~i~~a y ~ ~ aqi c�~ ~ ~ ~ ~oH ~ o a~v~i mb - m _ o w ~ ~ o~ ~ b ~ b da o~o+'..,.., ~ S ~ o �i o,~ a ay,~ H o,~ : - n~ ~ i �i w~~� i~~-�~ TnP ' ~ ~~N o ca ~ a~ p, ao q u~ ~ o ~r O~0 ri ~ ?d ~ ~F ~ = af Gl Fi �rl N � ~ +~~~~~~0 N 4~ o � m N�~i ~ a ~ Z N Pi y .~o ~d~ ~ �i o~v�'ia'~a~'~d ~ ~ w oa a ~ Q ~ O~ F-~ F3 i~+ U ~ o o 'z~~ r~ q u I~i N ~ ~ r qa3 a ~ ~ ~ ~ ~ . s~ i~ v u~ ao 'i U ri 40 i~ ~ ~r bo~~~~ a na~caw,auu � ~ a~ nw~oHgo~uoz w^ N~ h ~ m ~ o� Q'' U q~~~ ''~i o an;~nu~a,adnH ^ ~ ~ ~ ~ ~ a~ ~ anNatinye~ao avap,~ �j ~ � ^ ~ ~ h o ~ p, ~ ~.o b a1 DUDWE ~ N c~O.~ r~ j .~T �j ~ W 4-i r-I ~ ~ ~ ~ i ~ O F~ O p�rl ~ 020N~JC8lUAUU !/BWOy ~ h ^O ~ N N ~ ~ ~ ~ U~ ~ rd ~ O . DH(1~~ AUIOOHpGU/02 ~ p O N h o C I mt~ W _ 3-~ 2! BnHD(L~DCIDf/ ~ ~ h ~o m I O to Gd ~ N R j y I N ~ ncu~o~wao h'dcu ~ ~ ~ ~ v anya,sDyc aoHquap,~ � ~ � ~ ~ ^ ~ ~n � o w ~ C ~b ~ G1 .r~j C~,f~O L N U] ~ i . ~ 0 7C 7C e ~ ~ N~O ~ U Ny, ~ b~i C ~ o~' C c�Si C = ~ pl CI W~ N td .~j E~5 b c~ b C C b C b .~~J ^ ep ~ 4-{ iy ~ N`3 ~ A Q~ ~ F 4 ~ ~ q v Qv ~ q a~ O O - ~ p o b b i i 0 � U b ~ Q I^ fi ~J t n ? W 1- 1 4 i Q D y, F a ~ ~ o a V ~ , 4 a~ tp ~ P ,O^ Cl r-( O m V p Dl1DlllE 020Y. ^ N ~ N y -~8hAi0U0N~T8(// d8W0 " N I ~ h ~ a~ ~ ad O N p ad W O ~ - . ~ ~C ~ 37 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY them is 35 percent of the current price of the vessel. These data are shown in columns 11 and 12. By multiplying the current price of the vessel (12.8 million rubles) by the proportional amount of the payments to be made ~35 percent), we obtain a volume of commodity output for this vessel of ~+.5 million rubles (see column 13). Since the vessel is to be brought up - to 100 percent completion, then its cost according to the current price is shown in column 15 "Commodity Product" and simultaneously in column 17 "Volume of Product Sales," since for the vessels the moments of sale and the inclusion of the vessel in commodity product occur simultaneously, upon the signing of the act of acceptance for the vessel. In an analogous manner, the indicators are inserted in the plan for the building of all other ships given in the summary schedule. The plan indicators are formed somewhat differently for the production of nonshipbuilding products of the enterprise. The order portfolio for products to be supplied under interplant cooperation is formed from the orders of other shipbuilding enterprises and these are drawn up by them on the basis of the known existing specialization. The order portfolio for the MZK products includes scores and hundreds of types. For this reason, to avoid a cumbersome plan, these products are usually indicated under one common name of "MZK products," but appended to the plan is a detailed breakdown of the entire product range with the indicat- ing of the quantity, price and quarterly delivery date for each product (ship set). The production plan is formed in the same manner for the products which are delivered under intersectorial cooperation and for the frames of tractor trailers. The plan for the production of consumer goods is completely set by the min- istry proceeding from the principle of its annual growth for the maximum possible satisfaction of consumer needs. In calculating the volume indicators for nonshipbuilding products, indi- vidual calculations are used to determine the change in the balances of in- complete production and unsold product. These calculations are carried out - for each product group of the enterprise, and their results are taken into account in determining the ar.iount of commodity and gross product. As a rule, these changes in the balances are not shown separately in the plan for the production and sales of products, bu~ they are in the given example (see Table 2, columns 14 and 16). From the example of the MZK products it is possible to see how the amount of the volume indicators is set considering changes in the balances of unsold product and incomplete production. 38 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY I'irst of all, on the basis of the delivery contracts for these products, the sales volume is determined, some 2.55 million rubles (see the table, column 17). By a separate calculation tT~e cFian~e is shown ~or tfi e balance of un- - sold MZK products, that is, the products at the enterpri~e warehouse or dispatched but not paid for, considering the clearing dates. Let us assi.une that tYiese balances have declined by 150,000 rubles. The result of this calculation is shown in column 16. The commodity product for the MZK equals the sales volume plus (minus) the change in the balance of unsold product. In the given instance, commodity product equals 2.4 million rubles (2,550 - 150). Analogously to this, the gross product for the MZK products (see column 10) equals the volume of commodity product plus (minus) the change in the balance of incomplete production. If these balances have inereased - by 100,000 rubles (see column l~+), then the gross product for the MZK equals 2.5 million rubles (2,~+00 + 100). The amount of the change in the . balances of incomplete production is set by a separate calculation. 24. The procedure for working out the shop production plan. The initial materials for working out the shop production plans are the plant production program, the summary shipbuilding schedule and the registers for the planning and accounting units for building the ships as these indi- cate the degree of participation by each ship in building a vessel of the given design. The wa,ys shop participates in the fourth, fifth and sixth production stages of building the refrigerator vessels, in carrying out its work in assemblin~ the units and in two positions of the ways assembly of the hulls. On the basis of this from the summary shipbuilding schedule (see Tab1e 3) it is _ established that during the year the ship should participate in building vessels from No 9 through No 12, of which two vessels should be delivered to the orderer and for this reason be the most important product range of the shop. At the start of the year vessel No 9 is ~+0 percent complete in terms of the work of the ways shop. Since it should be delivered to the orderer, the completion of the vessel by the end of the year is 100 percent, and the advance of completion is 60 percent. The gross product of the shop for this vessel is determined by multiplying the advance of completion by the total value of the shop's work in comparable prices. This is 2.1 million rubles (0.60 x 3,500). In a similar manner the volume of gross product is _ determined for the planned labor intensiveness. _ The ways shop by its work provides the receipt of 17 payments by the enter- prise for each vessel from the 16th through the 32d stage (Table 3). For vessel PTo 9 during the year being pianned, payments from N~ 22 through No 32 were to be received, and the proportional amount of them is 25 percent of the current price of the vessel. With a current price of 12.5 million rubles, the commodity output of the *aays shop for vessel No 9 will be 3.13 million rubles. 39 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY As was pointed out, the planning and accounting unit of a shop for corrunodity product is the volume of work in terms o~' completed shop-stages. Of the three shop-si;ages which the wa,ys shop has Por each vessel, on ves~el No the shop should complete the work for two shop stages (on the first and second ways positions). The value of tlie two shop-stages, for example 3.1 million rubles, is the commodity product of the shop. In an analogous manner, the amount of work is determined for the remaining vessels, and the overall total is estimated for the indicators of the shop shipbuilding program. The ways shop, as a rule, does not participate in the work of the plant of manufacturing nonshipbuilding products. For this reason the range of its work, in addition to the shipbuilding program, may include work only in manufacturing fittings for the prototype vessel and for internal plant cir- - culation. 25� Planning nonshipbuilding orders and ship repairs. The non- shipbuilding orders are planned on the basis of the production plan of the work and an estimated costing for each order. From these doctunents the labor intensiveness and cost of the work are determined for each shop in- volved in manufacturing the order as well as for the enterprise as a whole. The beginning and end of carrying out the work are set in accord with the directive or contractual dates. For large nonshipbuilding orders, a schedule _ is 3rawn up for carrying out the work relating to the order, and for series orders a starting-up and output schedule. The total output volume for non- shipbuilding products for the period being planned is expressed in wholesale prices and labor intensiveness. The nonshipbuilding orders (including prod- ucts for interplant cooperation) with a manufacturing cycle of over 3 months are broken down into planning and accounting units for the purposes of planning and operational accounting of the gross product for the shop and the enterprise. The accounting of gross product for a previously stipulated range of non- shipbuilding orders is carried ou~ on the basis of special monthly account statements which determine the gross product as the algebraic total of com- modity product with a change in the balance of incomplete production in the sholesale cost. Auxiliary production is planned for the.following sections: a) ma~jor over- haul and medium repairs on equipment; b) the demand for tools and universal fittings; c) the output of product from.the power shop; d) the work of the transport shop and floating equipment~ The fulfillment of plans for aua~iliary production is worked out and accounted _ for by the corresponding enterprise services using the current provisions. Work related to the manufacturing of fittings (special tools, special attach- ments, models and dies) for building the prototype and series vessels are 40 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 ~ FOR OFFICIAL USE ONLY ' planned under a separate fittings order. The value of manufacturing the fittings is included in the price of the prototype vessel. With the par- tial or comp~ete manufacturing of fittings, af'ter the delivery of the proto- type vessel. the cost o~ the fi:ttings is incorporated in the cost of the subsequent series vessels. Expenditures on fittings are planned and accounted ror as follows: for gross product in terms of the completeness of the individual articles or structural assemblies of the fittings (apart from the percentage of the advancement of the vessel's completion); for commodity product, simultane- ously with the delivery of the prototype vessel in the cost of which the fittings have been included. Ship repairs after the establishing of the range and volume of work on the basis of the flaw detection lists and statements are broken down into plan- ning and accounting units. After this the ship repairs at a shipbuildiilg enterprise are planned and accounted for analogously to the planning and accounting of the building of new vessels. 26. Economic analysis of the fulfillment of the production pro- gr am. The basic tasks of analyzing product production and sales during the report period include: a) assessing the degree of tautness in the plan; b) assessing the level of plan fulfillment and determining the amount of deviations; c) assessing the influence of the individual units of the enter- - prise ~.nd the individual aspects of its operations on the results of plan fulfillment (deviations); d) the drawing up of conclusions and proposals on using reserves in ensuring the fulfillment of taut plan quotas in sub- sequent periods. Economic analysis is carried out by employing various methods. The main ones axe the comparison method and the breakdown method. The comparison method consists in comparing the actual amount of a specific indicator with the planned amount or with the actual amount of this indi- cator in a previous period or for the corresponding period in the preceding year, as well as with the corresponding operating indicators of other en- terprises (shops or sections). For example, the actual amount of the shop's gross product for March 1976 (hypothetical figures) was 1,583,000 rubles with a plan of 1,530,000 rubles, in February 1956, the gross product of the plan was 1.5 million rubles, and in March 1975, 1.~+8 million rubles. By the comparison method for these data, the following preliminary conclusions can be drawn: 1) In March 1976, the shop overfulfilled the plan for gross product, as the percentage of fulfillment for.the monthly plan was: (1583 : 1530) 100 = 103.5%; ~ 2) The shop increases product output, since in relation to February 1976, the increase in gross product equaled: 41 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY (1583 -1500 ) : 1500� l00 = 5 � 5%; and in relation to the corresponding period of 1975 (to March 1975): (1583 -1480 ) : 1~+80 � 100 = 7%. By the comparison method it is possible to establish how the plan was ful- filled for a specific indicator, and what its dynamics was in comparison with other periods. But it is still impossible to draw final conclusions on the basis of this method, since it makes it possible to see only the ex- ternal aspect of the question, and does not provide an answer to the main questions in economic analysis as to from what and under the influence of what factors the corresponding results have been obtained. The breakdown method is the basic one in analytical work, as it provides an understanding of the basic factors behind various positive or negative changes in work, that is, it provides an understanding of the internal eco- nomic essence of the given phenomenon. Using this method in the course of analysis, the examined indicators are broken down into their component paxts, each of which is analyzed separately, its influence on the indicator as a whole is established, and the reasons for this influence and the place of their manifestation are ascertained. Let us examine the previous example which involves an analysis of the fulfillment of the gross product plan by a shop, in using the breakdown method. For this, in addition to the data on gross product, let us take the following indicators: The range of the shop's production program, the labor intensiveness of the product, and the number of working days. The range of the shop's production program according to the plan and by actual fulfillment is given in Table 4. Having broken down the fulfillment of the shop's gross product plan into the individual product types (two designs of vessels and other work), we _ learn that the work range plan was not fulfilled and the overfulfillment of the gross product plan by 3.5 percent was achieved by a substantial over- fulfillment of the work plan for the A design vessel. The nonfulfillment - of the work range plan is a negative fact in the shop's operations. By subsequent analysis it is possible to establish what was the cause of this nonfulfillment: either a consequence of the delayed supply of the ways shop with the products from other enterprise shops for the B design vessel, because of which the shop was forced, to avoid worker stoppages, to have them work on the A design vessel, or as a result of the reorganization of the shop's operations. Let us now examine how the given structural shift influenced the actual results of the shop's operations for gross produc~:: For ascertaining this influence it is essential to break down the labor intensiveness of the shop's production program (see Table 4). - ~+2 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ~ ~ ~ h�OIidOH 'ORt . M O ~ ~ ~ ~soysd v,ooxnaoV~Cds ~ ~ ~ g 1 rl ~ -N U ~ U ~ ~g H a0 d ~-I �g6d �oAi ~~sxh o a ~ri e+~ ~ r- ai rf -H~SVOdu ~eaoveg ~ o~ a~ o rl ~ ~ 4i P ~ ~ ~ ~ h�ORdOH '~N1 ~ N ~ ~ O ~ uoged v.aoHw~otf~(dy ~ ~ N O U ~ i-� w 0 f~'~ ~ u p �g~id �awi ~~sxn ~i ~ ~ ~ u~ �rl �i �x~iVodu ~eaoveg a~ ~ qy ~ a ~ , a a~ ~ > o % 'Oi~OH ~ �eoioa @oHOahexYa~. ~ ~ ~ uNi ~ ~ ~ asxa~cxeVodu e~ c~ ~ ~ N I OO m ~ ~ U ~ I b-OAdOH '~T9.1 ~ ~ ~ ~ ~ ~ ~ uoped viooxRaoV6dy O rl ~ ~ ~ ~ ^ O rl ^ C~' o q ~ .9Rd �o~a.t. ~esan ~ c$ ~ ~ b~ a' �H~ittodv saeovsg , d' ~ 0 ~ ~ ~ ~ ' ~ ~ ~ ~~~oA o ~ . rd ~ �60SOJ 80N~ihARXi1 ~ ~ I I U ~ . Q rL,i 2HH07R8Q1fOd],[ ' 3 a ~ ~ a~ a ~ o o a~i o'~ aq/~.z�u OOOT � ~ I I ~I ~ N U ~ AU ~ N ~ LI N q-i O ~ o ~ O~~T ~ 5i ~ ~ ~ q ~o a`~iw ~ ~ a~ ~ a ~o '~iu, ~ y o f~v O ~C1 y~ 0 ~ ~ a~d i~-i N'd ~M MQO '3 41 ri (3~ O V1 tA ~y ~ ~ +'w b b ~ cn ~ a~ o ~ - ~ C C1 !7 k3 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ~ FOR OFFICIAL USE ONLY ` Having studied the report plan for the labor intensiveness of the produc- _ tion program, it is.possible to be certain that the vessels of the A and B designs hav~e a differing "advan~age" in term~ oP tfie a,mount of gross product per norm-hour: a) In building an A design vessel for each planned norm-hour there are 14.3 rubles (3 million rubles : 210,000 norm-hours); - b) In building vessels of the B design, the cost of one planned norm-hour is 6.~ rubles. Thus, if in fulfilling the gross product plan for vessels of the A pla.n by ~ 110 percent and for vessels of the B plan by 94 percent the total plan ful- fillment as a whole is 103.5 percent, then in the labor evaluation the situ- ation with the fulfillment of the plan changes substantially, and is ~ust 100.06 percent. This means that in practical terms the plan has been ~ust fulfilled. Here the significant overfulfillment of the plan by the shop (by 3.5 percent) is a consequence of a product range "shift" within the composition of the actually performed work in comparison with the plan. In the given instance this shift has occurred toward the material intensive and "advantageous" product (the A design ships): the plan for the ships of the A design was overfulfilled by 10 percent, but was not fulfilled for the labor-intensive and "disadvantageous" products (for the vessels of the B design and for other work). Above, in using the comparison method, it was established that in March the shop increased product output by 5.5 percent in comparison with February 1976, but in comparison with the corresponding period of the previous year (with March) by 7 percent. On the basis of these data a preliminary con-~ clusion was drawn that the shop is increasing product output. Let us check the correctness of this preliminary conclusion in using the breakdown method. The three compared months contained a different riumber of work days: 23 days . in March 1976, 21 in February 1976, and 22 in March 1975. Let us determine the average daily output of gros~ product. It was: In March 1976, 1583: 23 = 68,700 rubles; In February 1g76, 1500 : 21 = 71,500 rubles; In March 1975, 1480: 22 = 67,300 rubles. The data on the average daily output of gross product fully refute the ten- tative conclusion that in March the sfiop increased product output in com- parison with the previous month. Formally the product volume in March was 83,000 rubles more than in February, but this was a consequence of a circum- stance which did not depend upon the shop, namely there were two more work- in~ days in ~Iarch than in February. In actual terms the average daily out- put of gross product in March was 3.9 percent less than in February: 68. 7- 71. 5.loo =-3. 9~ � , 71.5 1+4 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ' FOR OFFICIAL ?JSE ONLY As for the increa:~e in product output in comp~rison with March 1975, this was actually affirmed, but not to the same degree as this was tentati~~ely assumed. Acc~rding to the preliminary estimate, this increase was 7 per- cent, but considering the number o~ work days, ~ust 2.8 percent: 68.7 - 67.3 . loo = 2.8~. 67.3 From an analysis of the fulfillment of the production program, the follow- ing conclusions can be drawn: l. The plan of March 1976 in terms of gross product was formally fulfilled - by 103.5 percent, but here the plan for the work range was not fulfilled. The structural shift which occurred toward the "advantageous" jobs was the basic factor providing the fulfillment of the plan for gross product by 103.5 - percent. The related calculation made for the planned and actual labor in- tensiveness of the production program showed that the shop plan was fulfilled by ~ust 100.06 percent in terms of it:, labor measurement. 2. In comparison with February 1976, the volume of the shop's gross product in average daily terms declined by 3.9 percent, and in comparison with March 1975, it increased but only by 2.8 percent, and this was clearly in- sufficient. 3. An evaluation of the shop's work for March 1976 cannot be considered - satisfactory. The given example of analyzing the fulfillment of a shop production program provides a concrete notion of the methods of analytical work and the sequence of carrying it out. An analysis is made in appraximately the same manner for the other aspects of the production and economic activities of the en- terprise and its subdivisions. In shipbuilding, the most important indicators in the analysis are: the duration the ships are on the ways, the coefficient for the use of the shipbuilding berths and outfitting quays, the coefficient for rhythmical product output, and so forth. - 27. The rhythmical coefficient. In evaluating the operations of the basic production shops, the rhythmicalness of their operation during the _ month is considered. By the rhythmicalness of production one understands the steadily repeating fulfillment of the same or increasing a.mount of work stipulated by the production program on the part of each enterprise sub- division (section or shop). The indicator oY rhythmicalness is expressed ~ by the rhythmical coefficient which is determined by the ratio of the ac- tual fulfillment of the volume of work (in the established units of ineasure- ment) in a finite planning period (month, 10-day period, day, shift or hour) to the plan quota, and an overfulfillment of the quota is not taken into account. 45 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY RY~ythmical work under shipbuilding conditions means even work during t~ie = month to produce the gross product. Rhythmicalness (evenness~ of produc- tion in shipbuilding during the month (.considering the part~cule,r features of the employed plannirig and accountfing units ) is ~ssessed on the b~,sis of the data t'or the 10-day periods using the formula: ED Kr=~Da, ~ where Kr--the rhythmical (evenness) coe~'ficient; Da--the actual fulfillment of the plan for the 10 days, q; D--the actual fulfillment of the plan for the 10 da;~s, not counting ' ~ - overfulfillment, q. � ~ The use of the given formula is illustrated by the example given in Table 5. Table.. 5 Data for Calculating Rhythmical Coefficient for the Month for a Shop , (figures hypothetical) 10-Day Periods Indicators Unit EDa, ED l 2 3 1. Gross product plan norm=hour 150,000 150,000 150,000 ~ 2. Report norm-hour 135,000 1~+0,000 170,000 3. Actual fulfillment Da % 9~ 93 113 296.0 4. Actual fulfillment of plan for 10 days _ not counting over- fulfillinent D % 9~ 93 100 283 283 _ . Kr = 296 - 0.96 . 28. Systems of planning and accounting units . For intershop oper- ational planning for production and.accourating of the fulfillment of the , work plan.at shipbuilding enterprises, a system of planning and accounting units (PUYe) is used and these units chaxacterize a certain amount of work related to,building tY~e ship as expressed in norm-hours. The system of planning and accounting units for building a ship reflects the production sequence in the passa~e of the individual structural elements of the vessel through the stages of the production process. The planning and accounting units used for planning the corrunodity product of the shops and ~ " 46 ~ FOR OFFICIAL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY - its cost are called the basic PUYe. The basic PUYe are chosen depending upon the dimensions, displacement, design features, cost, series run and duration of building the vessels. Hex~e tlie decisiv~e criteria for selectin~ the basic PUYe are: a) tlie duration of the complete fulfillment of work within the volume of the given PUYe should not exceed 1 or, as an exception, 2 months; b) the pres~nce (possibility) of workin~ out the initial documen- tation for planning the costs of the given PUYe (lists of materials, semi- finished products, purchased products, labor intensiveness and wages); c) the possibility of inechanized bookkeeping of product costs for the ex- penditure stages broken down for the selected basic PUYe. , With the simultaneous building of several designs of vessels at the enter- prise, a basic PUYe can be established for each of them. With a varying _ proportional contribution of the enterprise shops in the labor intensiveness _ of the work on the vessel as a whole or for the production stages, various PUYe can be set as the basic PUYe for the vessels of one design for the _ different shops. In accord with this, at the enterprises of the shi-r}�t?i.ld- - in~ sector, as the basic PUYe, the following are used: Shop-vessel, shap-,� stage, group-shop-stage, and production set. ' A shop-vesseZ is employed, as a rule, for shops with a small proportional amount of work in building the ship, when the duration of the work does not exceed 1 month. In this instance in planning and accounting for costs, ex- penditures for the,shop-vessel. are incorporated in that production stage the wor~c of which predominates in the given shop. ~ A shop-stage is a component of the production stage, representing the volume ~ of work done by one shop-section in the total volume of work relating to the production stage. The shop-sta~e, as the basic PUYe (payment PUYe) is em- ployed for shops for which the durrj,tion of work relating to the shop-stage does not exceed 1-2 months. . A group-shop-stage is a compo~lent of the shop-stage bringing together into groups the primary PUYe (production sets) for one design section of the vessel. A group-shop-stage as a basic PUYe is employed for shops where there is a very significant volume of work relating to the shop-stage. A production set is an aggregate of similar ~jobs performed by one shop sec- tion (desir~.bly by o:~e foreman) in a strict production sequence and within the limits of the time for carrying out the production stage. A production set is the primary PUYe of the group-sliop-stage for one design section of the vessel, and is carried out without production breaks. For plannin~ the MZK machine building and other nonshipbuilding products, it is recommended that a machine-set be used as the basic PUYe. A machine - set is the name given to the amount of work of each shop for the range of parts (assemblies) assigned to it in the quantity required far a product or batch of products relating to one order~ Detailed instructions on the procedure and sequence for working out the PUYe are given in the basic provisions on breaking down the work into PUYe in building the vessels. 1+7 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY ' CHAPTER 4: THE ORGANIZATION AND PLANNING OF WORK OF THE ENTERPRISE AUXILIARY SHOPS (SII3VICES) A. Maintenance Service 29. The system of planned preventive repairs (PPR The PPR sys- tem lies at the basis of organizing repairs and maintenance on equipment, and this is a complex of diverse jobs relating to technical maintenance and . repair on equipment and carried out according to a previously compiled plan for the purpose of preventing premature wear and emergency equipment fail- ures as well as for maintaining the equipment in a working state. The PPR system includes: a) routine maintenance on the equipment such as - lubricating, cleaning and wiping, that is, work done during each shift by the production workers themselves; b) maintenance between repairs which is the inspecting and ad,justing of equipment, the eliminating of~minor defects, the adding of oil to tanks and other ~obs performed by the machinists, elec- - tricians, lubricators and production workers on duty; c) inspections or testin~ for precision, the washing out of assemblies and parts, and the - changing of oil in lubricating systems, minor repairs, ascertaining the amount of work in forthcoming repairs to be performed by special schedules of the department of' the chief inechanical engineer; d) planned repairs which differ in their scope and periodicity and are performed by specialized brigades from the shops or repair bases which are under the chief inechanical engineer. 30. Types of planned repairs on equipment. Planned repairs in the PPR system include: Minor repairs, medium repairs and ma~or overhauls. Minor repairs is the name given to the type of repairs whereby individual - worn out parts are replaced, fastenings are tightened, mechanisms are ad- justed, oil is changed and other analogous ~obs are performed. Medium repair includes the partial disassembly of the equipment, a ma~or overhaul of individual assemblies and~mechanisms, the replacing of worn out parts, assembly and ad,justment of the equipment for precision. 1+8 . FOR OFFICIAL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY hlaTjor overhrzul. is the greatest repair in terms of scope and complexity durint~ which the equipment is completely disassembled and all the worn out ~ parts and anit;s are replaced. _ Unplanned repairs which arise becauae of equipment failures or other reasons are carried out under a separate schedule and list of work. Expenditures on maintenance between repair and minor repairs are covered - from current (operating) expenses, and those for medium repairs and ma~or overhauls from amortization deductions. Expenditure~ on equipment moderni- zation, if these are not coVered by amortization deductions, are paid from ~ the production development fund. Al1 repair work is carried out at the time intervals established by the PPR system or the periods between repairs (the period between two planned repairs). The period of a unit's operation between two ma~or overhauls (.or from the moment of installation to the first ma~or~~overhaul) is termed the repair cycle. The period of operating a unit (equipment) between repairs and a planned inspection (or between t~ inspections) is called the inspection � period. The quantity and alternat~on.ot' repairs and inspections in the re- pair cycle is called the cycle structure and.th3s is strictly controlled for the corresponding equipnent grvups. C~rtain types of repair cycle structures are given in Table 6 as an�~xeanple. Table 6 - Types of Repair Cycle Structures Number of Equipment Alternation of Repairs Repairs Inspections Ma~jor Medium Minor l. Metal cutting K-0-M-0-I~l-0-C-0-M-0-M-0 1 2 6 9 weighing up to . 10 tons Same, produced C-0-M-0-M-0-C-0-M-0-M-0-K 1 1 6 since 1967 2. Presses: mechanical and C-0-0-M-0-0-M-0-0-C-0-0- 1 2 6 18 _ friction M-0-0-M-0-0-C-0-0-M-0- _ 0-M-0-0-K Hydraulic K-0-0-M-0-0-M-0-0-M-0-0- 1 1 6 16 C-0-0-M-0-0-M-0-0-M-0- - 0-K 3. Molding K-0-0-M-0-0-C-0-0-M-0-0-K 1 1 2 3 machines with a capacity up to 30o kg ~ Note. K--major overhaul, C--medium, M--minor, 0--inspection. The numbers of the same types of repairs in the repair cycle are shown by the figures. ; ~+9 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY ~ 31. Standards of the PPR system. The basi:c standards for the PPR sys- tem are: The repair cycle, the repair period, the inspection period, labor intensiveness of repairs, and maintenance between repairs. - `.~he duration of the repair cycle, the repair and inspection periods is set for each equipment group depending upon the number of hours or shifts worked by it. When records are not kept at the enterprise for the hours worked, - the designated standards are set by the calendar time for the operating of the equipment (machines) considering its use factor in time or any other equivalent amount characterizing the number of working hours of the equip- ment. For determining the duration of the repair cycles, the repair and inspection periods, the data of the sectorial standards are used, and if these are absent, the YeSPPR standards.i The PPR system also provides for the use of the corresponding labor and material standaxds. For these purposes each equipment model is described by a category of repa,ir complexity and this depends upon the design and operating features of the given equipment, and establishes its complexity ~ category in relation to the accepted standard. For planning calculations of the volume and labor intensiveness of repairs, along with the repair complexity category, the concept of a"repair unit" is employed and this is designated by r. The repair unit represents the labor intensiveness of repairs on a unit of the first repair complexity category, that is, R. For an individual unit, the repair complexity cate- gory R and the number of repair units r corresponding to this unit coincide. Repair complexity categories have been established for all the basic models of production and materials handling equipment and these are given in the corresponding YeSPPR tables. - The labor intensiveness rates for all types of repairs on production and materials handling equipment per unit of repair complexity, as used at ship- building enterprises, are given in Table 7. The standards for maintenance between repairs are worked out in terms of a certain type of production or types cf equipment. They indicate the number of repair units which can be served by one worker (machinist, lathe operator, repairman, oiler, and so forth) or~ a work shift. The standards for 1"Yedinaya Sistema Planovo-Predupreditel'nogo Remonta i Ratsional'noy Ekspluatatsii Tekhnologicheskogo Oborudovaniya Mashinostroitel'nykh Predpriyatiy (YeSPPR)" [Unifired System of Planned Preventive Repairs and the Rational Operation of Production Equipment at Machine Building Enter- prises (YeSPPR)], Moscow, Mashinostroyeniye, 1967. 50 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY Table 7 - Time Rates per Unit of Repair Complexity (in hours) for Production and Materials Handling Equipment Types of Repair and Work for Technical Maintenance Work a b c d e f g Machining 0.35 0.4 1.0 0.75 ~+.0 16.0 23.0 Turning 0.1 0.1 2.0 7.0 10.0 Other (painting, 0.1 0.5 2.0 welding and so forth) , Total 0.35 0.~+ 1.1 0.85 6.1 23.5 35.0 Key: a- ?~7ashing; b--Accuracy check; c--Inspection before ma,jor over- haul; d--Inspection (plan); e--Minor repair; f--Medium repair; g--major overhaul Notes: l. The rates are given for equipment which has been operated less than 20 years. For eqiiipment which has been in use over 20 years, the rates for performing machining and turning work can be increased by 10 percent. 2. The rates for turning work provide for the produc- tion of stair parts manufactured centrally within the limits of up to 10 percent of the total consumed quantity; in obtaining from out- side over 10 percent of the total consumed number, the rates should be correspondingly reduced. 3. For forging and stamping equipment above 5 tons, with the absence of permanent materials handling equip- _ ment in the shop (cranes, ,jibs, and so forth) which can handle the assembly of equipment parts and units, the time standards per repair unit for mechining work can be increased by 20 percent. - maintenance between repairs for series and single-unit types of production per worker per shift are given (for consolidated calculations of the number of auxiliary workers) in Table 8. 32. The organization of repairs on production and materials handling equipment . The organization of repairs at an enterprise re- quires the carrying out of the following measures: 1) compiling the speci- fications for replacement parts and units indicating their quality charac- teristics and number per unit; 2) the working out of blueprint albums for replacement parts to be manufactured and repaired at the enterprise (for , the types of equipment); 3) the elaborating of production methods for re- _nlacement parts for carrying out repairs; preliminary manufacturing and receiving through centralized supply of spare parts and the organizirig of their storage; 5) establishing the required standards of planned preventive repairs (in the absence of standard ones); 6) the working out of instructions 51 FOR OFFICIAL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY ~ Table 8 ~ - Standards for Maintenance between Repair for Production and Material ~ Handling Equipment per Worker per Shift for the Conditions pf Series and Individual Types of Production Lathe ~ Operators Machinists Oilers Saddlers Standard . Equipment Standard in repair units .,in physical nnits of equipment* l. Met,al cutting: a) Light and medium (except automatic and , semiautomatic machines) 1,650 500 1,000 300 b) Automatic and semiauto- matic machines 1,650 400 900 300 c) Heavy and special-made 900 350 500 200 ~ 2. Mechanical (automatic lines) 1,350 350 900 3. Woodworking 1,35~ 25~ ~+50 150 4. Foundry 750 150 500 250 5. Forging 900 ~ 200 500 250 6. Press I,35~ 300 600 300 7. Materials handling 350 200 ~Equipment using belt drives. Notes: 1. In mass and large-series production the standards for main- _ tenance between repairs can be reduced by 15 percent. 2. For grinding and sharpening machines and other equipment using abrasive, the standards can be reduced by 5 percent. 3. For equipment operated over 20 years, the standards can be reduced by 10 percent. on equipment maintenance and the carrying out of repairs; 7) the compiling of flaw lists and costings for the types of repairs and type of equipment. For consolidated planning of the length of stoppages (for metal cutting, woodworking, forging-stamping, foundry and materials handling equipment) during repairs, the standards recommended by the PPR system (Table 9) can be used. 52 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 . FOR QFFICIAL USE ONLY Table 9 Standarc~s for the Duration of Equipment Stoppages in Repairs (in days) per Unit of Repair Complexity Standard for A11 Equipment* Types of Work with the Work of a Repair Brigade - One Shift Two Shifts Three Shifts Accuracy check as independent operation 0.1 0.05 0.0~+ Minor repair 0.25 0.14 0.10 Medium repair 0.6 0.33 0.25 Ma,jor overhaul 1.0 0.54 0.41 _ ~Metal cutting, woodworking, forging-stamping, foundry and materials handling. _ 33. The planning of repairs. The initial base for working out the long-range, annual and operational (quarterly and monthly) equipment repair ~ pl~.ns are the standards of the PPR system. " The basic document for the long-range repair plan is the plan schedule drawn up for the entire repair cycle. For heavy and special-made production equipment, in ~he long-range plan schedule they show separately each unit of equipment, and for the remainder it is possible to give total data for the type of equipment (Table 10). The data of the long-range plan schedule are used for determining over the long run the number of workers, the quantity and range of machines engaged in repairs and manufacturing spare parts for the production equipment. The annual calendar plan for equipment repairs is a component part of the enterprise ~ekhpromfinplan (Table 11). On the basis of it each month (or quarterlyj for eacr subdivision of the repair service, an ad,justed opera- tional equipment repairs plan is drawn up. The ad,justed operational plans which establish the specific dates for put- ting the equipment in repair and the time of equipment stoppages should be a,pproved by the services of the chief production engineer and operational productional planning to avoid lapses in the fulfillment of the production ' program by the enterprise. . The planning technical and economic indicators used in the PPR system are determined by calculation (Table 12). 53 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY ~ ? I I I ~ ~ ~ I I I ,r,, r. ~~3 ~ a ~ ~ ~ _ I I I -~3~ ~ ~ x~ xu ~o ~ ~ " H ~ - I I I . ~ a o ' I I I +~w'- ~ m .a'~' I I I ,g~ o g ~ a~o ~ ~ o ~ ~ - i I I ~ ~ ~ ~o ~ ~ x~ x~ a0 ~o v ~ ~ ~ " I I ~ ~ ~ ~a-I ~ ~ ~ ~ ~ ~ c~i 4~ ,p~ ~ ~ _,R ~ c~ .F I 1 ~ ~a eo cv c~ ~ m H ~ ~ ~ ~ c~b~ v~ ~ ' x u x u v~ 40 a ~ ~ ~ ~ ~ w~ t~ u ~ ~ ~ I ~ I I ~ ~ ~ _ I I I ~ ~ o ~ ~ ~ a~ ~ - I I I N~ o ,~d~ C xu H a ~ I I I ~ a~ ~ ~ ~ ? I I ~ ~ � i w� ~ ~ N ~ ~ I I I ~8 ~ ~ w ~ y~ ~ W ~ ~3 fZ ~ - ~ ( ~ x ~ x u �rl al b ~ ~ - i i i b~ ~ ~ ~ ~ o~ ~ ~ ~ ~ ~ S w ~ ~a ~ ~ ~ ~ ~ ~ N ~ g ~oF ~ o ~ ~~o ~ r~'S~ ~ d H ~ I ~ o+ ~ ~ ~ .z Q'~ ~ ~i 9~ r-I ri ~ ~~E Cu o`�.m~3 ~ y ~ N o a~'i ~ ~ , 5~+ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY v vi ~ o ' d+ ~ o u esey F~ ~ o X~ o= o ~xieoNad ~seeoxan ~ ~ s m= u ~ xan eHaan ~ - ~p m = � u ~ ~HNBX2M�OHIHOFIaG X N ~ ~ ~ ~ ~ U1 ~ . ~ w ~ . n ~ v ~ X6HV XNh09Bd tl HO1JOd(j N~ a ~ f~ O ~ m 00 O ~ o ~ aNeodu ~ rf W q �W N 1 t7 �rl U1 43 ~ ~ o' a O C~ N~.~' 'r~ H ` o ~ aRxeoxeta oo �t~i~ cd ,q d = ~ f~ ~ t3 u ~ ~ m O~ aAedeaatr~ N ~ ~ ~ d. rl 'r+ O 0-1 T1 �r-1 40 ~ O E3~ +~~~Nira~ rO I I X ~ I N ~dq ~ U O~~~ri ..{C.~ a1 ~ ~a ~ P~ ~ i~ IX ~ m o I+ q 1 1 4-+ Q I O~ 'rl ~O I N W X (~J ~ rl ~ � rl ~ s a X I I ~ i~ id t~ ~ u v v ~ a I I1 A ~ r-'~I f: RI o~ .54 .i7 ~v - Y~ rti ~ ~'~1 O O O~ $ F I IA ~ ~ u~ +-a ~ 1~ 4-~ ~ ~ a IA ~ W.~ '~d r~i r~-I ~ U K T I E~ Li ~~p 40~�~-I fa O M H 1 ~ O ~d? ~ W�~-~I ad � ~ ^ p af ~ W ~ ~ ~ ~ Q ni c5'I ~ a~q'a a, ~ ~ a 40 N ~ bq ~n I ~ d III ~ ~ �rl N f',a RJ I O N N ~ i~ ~ ~ ~d O ~ I I � ~ b.~ j N~~ tA ri ~ UTJ ~W~ td P~ i ~ rd W�~ �ri iv-~ O~ iq ~1 ~ c~ ~ 5C o+ 4~ ~ I cd ~ n ~ N p g ,s~ u~ a aiHO~ad olaxttav~ou t[xe x eie~ ~ ~ ~ ~ v ~ 1 m O N ~ ; ~ W N N ~1 ~ ~ b ~''1 xiaoxHCO~ ~xdo~aiex ~ ~ ~ ~ ~ ~ ~ ~ ~ ,rJ . ~ N =Q ~ ~ ~~~i~ ~ ~ xxa ~ : N v ~ ~ ~1 fq o Q~ a c~~n �rl fti ~~c~ al ~ N ~a� ~s~=N~ H'd ?4M+~ WP - ~ xrs x~~ F o a+�~ ~a~ E"~~~z ri m N~ i a, i ~ ~ �w danox y~AxdeiaaaxH ~ ~ ~ ~ N ~N ~ O~ N4~ ~ O ,Q O v1 55 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY The planned expenditures for repairs are calculated using costing items: 1) basic materials; 2) purchased semifinished products, spare parts and articles; 3) wages of basic repair workers; expenditures on the upkeep and operation of equipment; 5) shop expenditures (of the repair machine shop); 6) general plant expenses (in carrying out ma,jor overhauls and medium repairs on equipment and with a repair periodicity of over 1 year). Table 12 Indicators for Repair Service Indicators and Calculation Formulas Explanation a) Volume of repairs in units of re- noi--number of units of type i pair complexity equipment; ri--complexity category of type i Nru = Enoiri equipment b) Labor intensiveness of repairs by Nru -total volwne of repairs (given types of repair type of repair) in units of repair complexity; Tr - Nrutn tri -calculated labor intensiveness of 1 unit of repair complexity for given type of repair, norm- hours c) Equipment stoppages in repairs (in H--the rate of labor intensiveness days) with given method and organi- for machining work per repair zation of repairs unit of the corresponding type of repair, hr; Dr = ~ R--group of equipment repair com- p~1K2 plexity; p--number of simultaiieously work- : ing repair workers; h--duration of work shift, hr; m--number of work shifts; K1--coefficient for fulfillment of standards by repair workers; K2--coefficient for use of working time 56 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY [continuation of Table 12) Indicators and Calculation Formulas Explanation - d) Annual consumption of repair ENk, EN~, ENm -the total number of materials (alloyed steel, steel repair units for equipment to castings, nonferrous metals and undergo, correspondingly, ma~jor, so forth) medium and minor repairs during Ma = ENkqk + ENc qc + ENmqm year ; qk~ qc~ ~lm--the material consumption rate, correspondingly, for ma~or, medium and minor repairs on equipment per repair unit, kg e) Planned number of repair workers by Tr--labor intensiveness of all re- types of repair pair jobs by types of repair, T norm-hour; r Pr = FuKf Fu--available time fund of one average listed worker, hr; Kf--planned coefficient for ful- fillment of standards f) Planned number of workers employed Nru--total volume of maintenance in in maintenance between repairs repair units (ru); N Am -the planned maintenance rate Po = A u CK~ in repair units; _ m C--the number of operating shifts for equipment (units); K~--conversion factor for the present number of workers into the listed . g) Labor productivity of repair work- N~k--total volume of inedium repairs ers engaged in carrying out medium and major overhauls, in re- repairs and ma,jor overhauls, in pair units; repair units P~k--number of repair workers V carrying out medium repair Pt = ~k and major overhaul on equip- Pck ment h) Cost of repairs related to one re- Cr--expenditures on carrying out pair unit all types of repairs, rubles; ~r No--number of repair units of oper- Cru = N ating equipment 0 57 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 BOR OFFICIAL USE ONLY - 34. Ways of improving and reducing the cost of repairs. The basic ways for improving aiid reducing the cost of repairs are: 1) central- ization of ma,jor overhauls at specialized shops (bases) and enterprises; 2) improving the level of the technical equipping of repairs by making greater use of inechanical tools; 3) creating a complete set of spa.re Farts and the monitorin~ of their inventories; improving the system of stand- ` ards in the repair services; 5) improving planning and accounting of re- pairs; 6) improving material and technical supply ior repairs; 7) organiz- ing the manufacturing of spare parts without deviation from the technical requirements; 8) improving the organization of maintenance between repairs; - 9) improving the systems of wages and material incentives for the repair workers; 10) working out and introducing standard and group production processes for repairs; 11) introducing internal plant economic accounta- bility in the enterprise repair services. B. Power Facilities 35� The PPR system in power facilities consists of technical main- tenance and planned repairs on power equipment. Teehnieal maintenance is a range of jobs to maintain electrical equipment in a workable state during the process of operation. This is carried out during the period between two regular repairs, and is one of the chief measures to ensure the reliable and continuous operation of power equip- - ment. In accord with the purpose, content and periodicity of carrying out the work, technical maintenance is divided into routine and planned technical mainten- ance. Routine technical maintenance is carried out�by the operating personnel during work breaks without disrupting the production process, while plan- _ ned maintenance is performed at the dates stipulated by the technieal op- erating rules and by the schedules of the department of the chief power engineer (OGE). PZanned repairs in the PPR system of the power facilities are carried out - in two types: routine repairs and ma~or overhauls. The PPR system for power equipment is organized on the basis of the rates for the duration of the repair cycle and the period between repairs. The labor intensiveness of repairs and the amount of repair work in repair units are calculated depending upon the repair complexity category of the power equipment. The concepts of "repair complexity category" and "repair unit" are analogous to the concepts for the PPR system of the production equipment with the sole difference that for evaluating the repair of power equipment using standards to which the first category of repair complexity has been given, different units are employed. For example, for electrical 58 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY production equipment, the standard is an asynchronous squirrel-cage pro- tected electric motor of the AZl-4 type with a rated power of 0.6 kilowatts; for power engineering, gas, compressor and refrigeration equipment, the standaxd unit is a 2K-6 type centrifugal single-stage pump; for sanitation- engineering equipment it is an exhaust unit with a power of 7.0 kilowatts without dust cleaners and with not more than 10 air intakes; for communi- � cations and signaling equipment it is a six-number telephone concentrator. An annual schedule plan for technical maintenance and repair of power equip- ment is drawn up using the following form: F Q a e b C= d~ ~ HAd TtXHH9CCKOfO OGCIIyMIHDBNHR p O p ~ De ~ H pCMOH't8 !10 MECA4BY ~i 8 x ~ =s a a io~. ~ ag~ 0 o`w = es a a o = o r a. ~ ~ � * u 4 o_ a R ti a z~' _ ~ �r.a om S =O ` u * =ox r, Qp t7 ~ q ~ n~= Z ~ x o S ~L u C a�a x DC iC DC C c I i Key: a--equipment code number; b--equipment name; c--inventory number; d--repair complexity category; e--planned shift factor of equipment; f--types of technical maintenance and repair by month; g--duration of repair, days. 36. Standards and calculated indicators for the PPR system in t h e pow e r f a c i 1 i t i e s. For the purposes of planning and accounting for repairs, the following standards are used: a) the duration of repairs (Table 13); b) for technical maintenance (Table 14); c) for inspections and cleaning of power equipment (Table 15); d) the time of repair of elec- trical engineering equipment (Table 16); e) the time for repair of thermal engineering equipment (Table 17); f) consumption of spare parts (Table 18); basic planning indicators in PPR system for power facilities (Table 19). The estimate of expenditures on carrying out planned ma~or overhauls on power equipment is grouped by analogous costing items of expenditures as in the PPR system for production equipment. 37� Planning the demand for power and fuel. Planning the demand of a shipbuilding enterprise for the various types of energy ~,nd fuel is based upon the balance method. The initial data for elaborating the power balances are: The production program of the enterprise, the progressive standards for the proportional consumption of energy per unit of product or per thousand rubles of gross product, the energy consumption rates for internal needs (for the production of various types of energy), the limits 59 FOR OFFICIAL USE ONLY d I APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY - Table 13 St~.ndards for Duration of Equipment Repairs (in days) with Single-ShiPt Work of Repair Brigade Norm for Duration of Repairs per Repair Unit, days Repairs Thermal power, Flectrical ~ compressor and Ventilating engineering pump equipment units equipment Routine 0.41 0.41 0.~+45 Major 1.14 l.l~+ 1.0 Notes: 1. The duration of repair is rounded off to a higher figure with a major overhaul up to an entire day and with routine repair up to an entire day. 2. With a complication of repairs, at the discretion of the chief power engineer, the designated standards can be increased up to 15 percent. on the consumption or energy for operating needs (heating, lighting, venti- lation and other auxiliary needs), ~the energy loss rates in the plant net- works. The energy balances are included in the group of the material balances of i;he shipbuilding ex~terprises, and help to organize the more efficient use of energy and fuel at the enterprise. The demand of the enter rise for ener p gy resources is determined for the types of energy, the paxameters of the energy sources, the energy processes, the specific purpose, the consumed energy and for the ob~ects of energy consumption. The overall formula for calculating the total demand for energy resources is: EE = nNt+Ep+E,Q+Eh+EV+Eo+EW+Eot~ n--the planned volume of product output (in corresponding units); Nt--the planned consumption rate of energy for production processes per unit of product (or per thousand rubles of gross product), kilowatt- - hours; EP, E,~, Eh, EV, Eo, r.W, Eot--the cons~ption of energy, resgectively, for power, lighting, heating, ventilation, outside delivery, losses in plant netwr~rks, and other needs. In planning the energy resources of an enterprise, the long-range and cur- rent energy balances are used. 60 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY Table 14 = Standexds for carrying out ~rork of planned technical maintenance on power equipment per ~rorker per shift na~ture of working worker rofession equipment co~~ditions a b c d e f standaxds ru electrical clean and dry rooms 1100 , engineering cold working sY~ops 8e 1100 assembly shops hot working shops 730 woodworking shopa 610 equipment instelled 500 outside axea furnace 2000 lining ~ mechanical part of 860 1100 furn~,ces = thermal cold metalworking shops, power assembly a.nd wood- 1050 equipmer.t working shops hot metalworking 860 650 . and gal~ranizing shops ventilating machine shops 1050 units and gystems forging-pressing 830 woodworking 710 . foundry and galvanizing 710 _ shops Key: a--electricians; b--mechanics; c--sanitary engineering mechanics; d--venti].e,tion mechanic; e--lathe operators; f--furnace liners. The long-range balances are drawn up for a 5-year period, and are used in planning the development of production and the power facilities of the enterprise. In compiling the long-range balances, consideration is given to the ch~.nges envisaged by the long-range production development plan in - tne production processes, in the production volume, the nroduct range, in . the volume and structure of subcontracting arrangements, and so forth. 61 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 i FOR OFFICIAL USE ONLY - Table 15 Time Standards for Inspections and Cleaning of Electrical Equipment Time Standards per Repair Unit, Equipment norm-hour Planned Inspections Planned Cleanings Electrical engineering 0.2 0.3 Thermal power l~,5 - Compressor and pump t+,5 Pipeiine networks l~,5 ~ Ventilation units 1.0 1.4 ~ Table 16 Time Standard in Hours for Repair for Electrical Engineering Equipment Time Standard in Norm-Hour per Repair Unit Equipment Jobs . Routine Ma~or - Repairs Overhaul Electrical engineering Mechanical and other 3.5 10.0 Turning 0.5 2.0 Total . 0 12 . 0 Electric furnaces Lining 2.5 7.0 Other 0.5 3.0 - _ Total 3.0 10.0 The current power balances are drawn up for the year with a breakdown for the quarters. These are the basic form of planning the consumption and use - of power resources at the enterprise. The most important task in working out the ciarrent power balance is to es- tablish the planned demand of the enterprise for energy and fuel for carrying 62 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY Table 17 Time Standard for Repair of Thermal Power Equipment Time Standard per Repair Unit, Norm-Hour Including Equipment Repair All Mechanical, Work Facing, Rolling Welding Turning Other Boilers and Routine 16.0 10.5 1.0 3.5 1.0 auxiliary boiler Major ~t0.0 26.0 2.5 9�~ 2�5 equipment Table 18 Rate of Spare Parts Expenditure on Equipment Repairs Standard, . Rubles per Repair Unit Equipment In series and In series, small-series large-series and production mass production Thermal engineering 10.0 10.0 Electrical engineering, communications _ and signaling equipment 1.0 2.0 out the production program, as well as for establishing and calculating the ~ other technical and economic indicators in the enterprise tekhpromfinplan. _ The scheme for compiling a particular electric power balance for the enter- prise is shown from a hypothetical example (Table 20). The required a.mount of electric power for production purposes is determined , by multiplying the approved conslunption rate by the quantity of planned product units in the planned period. The amount of electric power required for power pro~esses in the planning period is determined depending upon the capacity of the engines and units installed in the shops. The annual consumption of electric power, in kilowatt-hours, for these purposes is determined by the formula: ~ 63 ~ FOR OFFICIAL USE OATLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY . Table 19 Basic Planning mechnical and Economic Indicators = in the PPR System for the Power Facilities ~ Indicators and Calculation Methods Explanation a) Planned labor intensiveness of Tt, Tk--time rate per repair unit, repairs on given group of power respectively, for routine repair equipment, by types of repair: and major overhaul, norm-hours; Routine rt, rk--total quantity of repair com- plexity units, respectively, for _ Tt = TtErt, for rou+ine repairs and ma~or - overhauls according to repair Ma,jor schedule, repair units Tg = TkErk b) Required number of workers for Er--total number of repair units of carrying out work related to tech- maintained power equipment; nical maintenance on power equip- N--the technical maintenance rate ment per worker, repair units (Table gs Tom~+Trtr 1.4 ) ~ Pm ~r N+ F K KS--shift coefficient for the opera- u f tion of the maintained power equipment; ~ To, Tr--time standard per repair unit, - respectively, for inspection and cleaning of power equipment, norm- hours; mo, mr--average number of inspections and cleanings per year according to annual schedule; - Fu--available time fund of worker for technical maintenance, hours; Kf--coefficient for fulfillment of standards - c) Required number of workers for a--coefficient considering auxiliary carrying out planned repairs on time on repair work (becoming ac- power equipment quainted with specifications, re- as(Tt + Tk + Tm) ceiving materials, tools and so Ppr = forth); FuKf s--coefficient considering increase in amount of work on unplanned repairs (established by OGE); . 64 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY [continuation of Table 19] - Indicators and Calculation Methods Fxplanation Tt, Tk, Tm--labor intensiveness of repairs, respectively, for rou- tine, ma~or and modernization (carried out simultaneously with a ma~or overhaul), norm-hours - d) Required amount of materials for Re--category of repair complexity~for = planned repairs on given type of given type of power equipment; - power equipment nt, ng--number of repairs, respec- Re~ntNt + nkNk~ tively, routine and ma~or; , Nt, Nk--standard for expenditure of a gi~:en material per repair unit, respectively, with routine re- pairs and ma,jor overhauls e) Total annual demand for given a--coefficient considering consump- material for repair and technical tion of material on technical maintenance of power equipment maintenanc:~ (a=1-1.15); _ Qa a~Qm s--coeffici!~:nt considering expendi- _ ture of material on unplanned repairs (~=1-1.3) MFeCK,~Kn " ~ Kn~~f ' where Ep--the annual demand of electric power for power processes in the shops, kilowatt-hours; M--the installed capacity of the electric motors of the fleet of equipment and material handling devices, kilowatts; Fe--the effective time fund of equipment operation, hours; C--the number of equipment operating shifts, days; K,~--the equipment load factor (K,~=O. 65-0.75 Kri -the coefficient for the simultaneous operation of equipment (0.5-0.65); Kn,~--the coefficient considering losses in networks (Kn,~=0.95-0�97); Ef--efficiency of electric motor (Ef=0.80-0.85), The amount of electric pcwer needed for lighting, heating, ventilating, ~ service and other needs is determined by the standards for auxiliary services or by a direct calculation. 65 FOR OFF'ICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY Table 20 Partial Electric Power Balance of Enterprise (figures hypothetical) Elements of Balance Electric Power, mil. kw. hrs. Note Demand 1. Effective use: 1) for production purposes 24,3 2) for power processes in shops 8.2 3) for lighting 0.78 for water supply 0.9 ~ 5) for heating, ventilating and service needs 1,9p 6) for compressed air and air blast 0.55 _ Total effective use 36.63 _ ~ 2. Delivered outside 15.0 Construction organization Total effective use considering delivery outside 51.63 3. Losses at plant: 1) in electric networks 1.10 2) in transformers, electric motors, electri.c pumps, compressors l,sp Total losses at plant 2.60 Total consumption 53.23 Supply Sources 1) Enterprise electric plant 15.10 - 2) Receiving electric power from network of regional TETs 38.13 Total delivery 53.23 The amount of electric power planned to cover the network losses is deter- mined on the basis of the loss rates. 66 � FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 ' FOR OFFICIAL USE ONLY The fuel bala:ice is compiled for its individual typ~s and a slunmary for the enterprise as a whole. As a consequence of the diversity of the fuel and ' its varying heating value, its demand in the balance is measured in condi- ` tional fuel units of 7,000 kilocalories per kilogram, Natural fuel is re- calculated i.nto fuel units using the formula: . @ E~ 7 , 000 ' where Q--the lower effective heating power of the given type of fuel, kilo- calories per kg (Table 21). Table 21 Heating Value of Various Types of Fuel Fuel kcal/kg Fuel kcal/icg Wood 2,000-2,700 Anthracite power gas 1,050 Peat 2,000-1+,000 Same from coke 800 Unclean brown coal 2,500 Dry charcoal 8,000 Lump bro~m coal 5,000 Oil 10,000 - Brown coal in pellets ~+,300 Kerosene 10,800 Coke 5,500-7,200 Gasoline 11,000 ' Alcohol, 95% 6,700 Tar 9,500 Household gas ~+,200 Coal tar 8,200-8.500 Natural gas 8,000 38. Indicators describing power-to-labor ratio at enterprise. In the pl.anning and analysis of the power facilities at an enterprise, in- dicators given in Table 22 are frequently utilized. C. Tool Department The basic tasks of the tool department are: a) uninterrupted supply of the shops and work areas with the necessary quantity and assortment of highly ~ efficient tools and attachments; b) the creating and maintaining of the necessary level of complete inventories of tools and attachments at the enterprise; c) the obtaining of a high quality product by employing the - corresponding production fittings and tools; d) a systematic reduction in ' the tool consumption rates per unit of product; e) the organizing of the repair and rebuilding of worn out tools and attachments; f) the organiza- tion of proper storage and accounting of in-coming tools; g) the organiz- ing of daily technical supervision over the operation of the tools and fittings. ' 67 FOR OFFICIAL USE ONLY ; APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY Table 22 Indicators for the Power Available to Labor and Production Indicators and Calculation Formulas Explanation a) Proportional consumption of energy ~__the consumption of the energy (fuel) for a conditional unit of resource; end product Qp--product quantity (in accepted unit s ) Ye - F'P' QP b) Coefficient of potential power-to- ENj,r--total power of energy units in- labor ratio stalled at enterprise (prime ENW movers, electric motors, elec- Kpe - p trical equipment), kilowatts; n Pn -number of workers in the laxg- est shift c) Coefficient for planned (actual) Ea--mechanical and electrical energy power-to-labor ratio planned for consumption (actual Ea consumption) in production, Kp.~ - p kilowatt-hours or kilocalorie; Pa PPa -planned (actual) average listed number of workers in same period or number of worked man-hours d) Electricity-to-labor ratio Determined in the same manner as the power-to-labor ratio with the sole difference that in the numerator one uses the power of only the electric receivers or the amount of consumed electric power e) Coefficient of the power intensive- Ea--actually expended mechanical ness (electric intensiveness) of (electrical) energy on produc- the product tion, kilowatt; Ea Qa -amount of produced product, in Ken = Qa accepted units (tons, pieces, thousand rubles of produ~t, and so forth); 68 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY ~ [continuation of Tab.le Indicn.tors and Cn,lculntion T'ormule.s Explanation f) Coefficient of the amount of power ENW--total power of power (electric) (electricity) available to produc- units at enterprise, kilowatt; tion Cf~--value of fixed productive capi- ENW tal at enterprise or its compo- Kpr = C nent part fc 39� Planning the supply of tools and production fittings for ~ the ent erpr i s e. Planning tools and production fittings encompasses the establishing of the following: a) the assortment and quantitative demand of the enterprise for tools and fittings; b) the sources for covering de- mand; c) the actual balances of tools and fittings at the start of the period being planned. The demand for tools and fittings is determined by the planned consumption and planable change in the circulating stock. The supply plan is drawn up in the form of a balance. It reflects, on the one hand, the demand for tools and fittings for basic and auxiliary production, experimental work, new equipment and operating needs, and on the other, the sources for covering the demand (receipt by allocation, own production, rebuilding and z�epairs, and actual balances at the beginning of the period ~ being planned). Of great importance for sound planning is the correct norming of the ex- penditure of production fittings and tools for the period being planned. Consumption norming provides an opportunity to establish the expendable stock of production fittings and tools for the program, and inventory norm- ing makes it possible to set the circulating stock. The total demand of an enterprise for tools I for the period being planned is determined for each type of tools using the formula I = In+IW-Ia where Iri -the normed consumption fund of tools for the entire period being planned, units; Ij,~--the normed circulating stock of tools, pieces; Ia--the actual availability of the given tool at the start of the period being planned, pieces. The calculating of the demand of the consiunption fund starts by establish- ing the product range and the standards for the wearing out of production fitti.ngs and tools. 6g FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY In mass and large-series production, the basic range of the employed fit- tings and tools is set from the operational flow sheets for the machining of the parts (products) and the part lists for production equipping. Under the conditions of single-unit and small-series production, the planned range of fittings and tools is set from the existing equipment and the de- scription of the tool employed in performing typical ,jobs previously. An approximate quantitative calculation of the constunption and circulating stocks of production fittings and tools needed by the enterprise for en- suring its uninterrupted operation during the period being planned can be carried out using the formulas of Table 23. - Table 23 Methods for Calculating the Demand for the Consumption and Circulating Stocks or Fittings and Tools for a Program and for Production Inventories Methods and Calculation Formulas Explanation Consumption Stock a) Consumption of cutting tools for N--number of parts (products) to be the program for mass and large- processed in the planned periad series production using the given tool, units; Nt Tm -machine operating time of the m given tool in machining one part I~m TW(1-n) (product), hour; TW--operating time of tool (durability standard) until complete wearing out, hour; r~--coefficient of accidental loss of tool (0.03-0.10) b) Consumption of attachments (fit- TS--the service life (durab~lity - tings) for program standard) of an attachment until Nt its next repair, hour; Icf = m N--acceptable number of repairs on _ Ts~n+l~ given attachment until complete wearing out ~ c) Consumption stock of cutting too , Ti--the calculated number of operating (of one type) for program in in- hours of group i of equipment, dividual and small-series produc hour; tion ' Ymi--proportional amount of machine ~ time in the work of the equipment ~ ` of group i; 70 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY (continuation of Table 23) - Methods and Calculation Formulas Explanation n YPi--the proportional amount of use of G TiYmiYpi the given tool in the machine time i=1 of group i of equipment; Ics T n--number of e ui w q pment gruops in which the given tool is used d) Calculated time for use of cut- m--the number of possible resharpen- ting tool (durability standard) ings (determined depending upon until complete wearing out the size of the cutting edge of Tw =(m + 1, )tsts the tool and the amount of its wearing down in one resharpening); tst--the operating time of the tool between two resharpenings, hours; S--correction factor considering the premature wear on the tool as a consequence of the chipping of - the working edge or breaking (0.80-0.85) e) Tool consumption per thousand Ct--value of tool consumed during re- rubles of gross product port period, including expendi- ~t tures on sharpening and repair, I~g = G rubles; p Gp -volume of the gross product for the report period, thousand rubles _ f) Consumption of abrasive tools N--number of parts (products) to be NT machined in plan period, units; Iab - T m Tm--machine time per operation, hour W (minutes); Tw--time until complete wearing out of disc (taken from manual), hour g) Coefficient for the use of cut- tai--machine time actually worked using - ting toolsn given tool for group i of equipment C during report period, hour; K_ i=1ta1 Tw -calculated machine time for work Twni of tool until complete wearing out according to standards, hour; 71 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/48: CIA-RDP82-00850R000200024409-8 FOR OFFICIAL USE ONLY [continuation of Table 23] Me~;hods and Calculation Formulas Explanation , ni--quantity of given tool consumed over report period for group i of equipment, units; n--number of equipment groups for which the given tool is used Circulating Stock a) General plant tool circulating Iy~--total shop circulating stocks of stock tools; n Icis--the stock of tools at the CIS I = ~IT,,~ + Icis ~central tool store]; ~ n--number of shops 1 b) Shop circulating stock for each nWa -quantity of the tool at work type of tool areas, units; nr--quantity of the tool in repair I~ = nqa + nr + ntis (sharpening, testing), units; ntis--the quantity of the tool in the operating store of the TIS [tool issuing store] (including also the reserve inventory), units c) The quantity of the tool at the r--the number of work areas using the work axeas ~ given tool; m--the average quantity of tool units ` nWa = rm(1 + a) employed simultaneously at one - work area; a--coefficient for reserve inventory (0.3-0.5) d) Quantity of the tool in repair TS--sharpening cycle of the tool (sharpening, testing) (counting from the moment replaced T at the work area to its return to nr = TS rm the storeroom), hour; _ P TP--periodicity of issuing the tool from the TIS to the work areas, hour; 72 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240020009-8 FOR OFFICIAL USE ONLY [continuation of Table 23] Methods and Calculation Formulas Explanation e) Quantity of the tool in the oper- ncon--consumption of tool in interval ating sspply of the TIS (includ- between two regular deliveries ing the emergency supply) from the CIS, units; ak--coefficient for tool reserve stock ntis - ncon~l + ak~ at the TIS (0.2-0.3) or approximately 20-30 percent of the tools 2t the work areas f) Tooi supply at the CIS n--number of issues of the given type Scis - n~~2 + ar~ of tool from the storeroom between regular redeliveries; c--average quantity of tools for each . issue by the shop issuing stor~- room, pieces; ar--coefficient for the storeroom re- serve supply (0.2-0.3) Note. As a~:~nsequence of the absence of complete data under the conditions of single-unit and small-series production, the consump- tion of one or another type of production fittings (tools) for the p-rogra.m is determined rou~hly in terms of the calculated number of eouipment operating Yiours or per 1,000 rubles of gross product using the previous rates. D. Transportation Facilities _ 40. Composition and classification of ineans of transport. Internal plant transport at a shipbuilding enterprise is a portion of its fixed productive capital, and includes the transport facilities and devices, the moving tracked and untracked means of transport, water transport and = materials handling equipment (Table 2~+). - The chief task of internal plant transport is to provide the continuous movement of basic and auxiliary materials, parts, elements, finished prod- ucts, production wastes and other freight on the territory ~f the enter- prise in accord with the requirements of the production process. In terms of the operating sphere, the means of transpor~ are divided into external, intershop and intrashop. The external transport provides the ~ link between the enterprise and the receiving-delivery points of public " transportation (railroad stations, harbors and airports) and the local 73 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 _ti _ FOR OFFICIAL USE ONLY ~ N ^ N :r01 N U1 ~-I ad ~ ?d O - U Cj N " U+~ w I S ~ ~ u~ N a~'i~ Pb ~o ~ ~ y N a~ a, u ~ a o ~o ~ua~i�1~ ~ ~a~i ri O ~ O!~ ~ N tA ri H a~d j~ a~d U ~ ~ 'q U ~ ,~j ~ ~ ~ m ~ ~ U ~ t!1 O ~d N N ~ O ~ ^ tA ' ~ S-i ~d ~ N ~ ~ v c~ v ~ my, H T~ W~c! 0.1 ~d p s7 u1 F~ ~ O aT ~ ~ N ~ ~ aa~i ~ b i ;a u o ~ ~ v .b ~ N ~d ~ ~ ~ ~ 40 ~ ~ u~ ~ ~ a+~d N ~ ~ ~ ~ .s~4 ~ w a~i ~ ~ ~ pi 43 ~ Q~ -F~ �r{ w ~ ' a ~ ~ o ~ u o ~ ~ ~ ~ ~ a`~i ~ N ^ o ~ q o ~ ~ ~ a~i 'c~i ~ _ ~ s~ ~n m ~ s~ H a~ ~ q a~ ~ q ~ ~ ~ ~ ~ ri ~ ~t ~ ~ u ~ H .1~ q N Q C ~ N~ O _ ~ ^ ~d p af ~ p ~ ~ 0 0~ m m.e4 v a a-+ w ~ ~ O ~ Qj ~ ~ ~ .r ~i ~ ~ ~ : p~.~ ~ ~ O 3 _ 'd 4U U C~ Ny, ~ a3 QD id ~ ~ ~ ~ ~ v N N ~ ~ U ~ �r~l U fA N t!I cd . Cf ~~~rl ,4~ I U I I ~ ' I I 3G U ~ U .~7 ~ ~ ~ O . W ~g O cd ~ ~ ~ ~ �rl id O ~U O �rl U] ~ - - ~ U N~ Sj 40 y~1 tA r~ v~ ~7 y 'p'~ ~ ~ N ~ N ~ ~ ~ v m ~ ~ w R~ t~ U rl t-'y ~d q cd ya ~ t1~ v1 �rl O f~ ?4 i-~ �r1 W O O�r1 ~ N ~ rl u a~ c~ LI ~1-~ ~ri 41 4-I U F~ W W~ c�~ ~ a ~ ~ r-~i ~ a a~d u~' o� ~ c'~i . ~ pq 7 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY enterprises and partners. Intershop transport handles the moving of basic and auxiliary materials, parts, elements, preassembled products and other freight between the shops, the basic warehouses and the building quays. = The intrashop transport (general shop and interprocess) is used for carry- i.ng out transport operations within the shop. The external and intershop transport as a rule is under the ent~rprise transport shops, and the intrashop is under the corresponding shops. Many technical and economic indicators of the enterprise depend upon the effi- cient work af internal plant transport. _ ~+1. Freight turnover and freight traffic. Data on freight turnover and freight traffic are used as the basis of designing and organizing in- ternal plant t.ransport. Freight turnover is t,he total volume of freight moved on the territory of the enterprise, shop, warehouse and so forth per unit of time, for example, during a gear, quarter, month or day. The _ freigl:t turnover is the total amount of the freight deliveries, that is, the amount of freight transportable per unit of time between two receiving and dispatching points. The freight turnover of an enterprise is divided into external and internal. The external freignt turnover is comprised of the transporting oi freight arriving on the territory of tne enterprise and dispatched from it, while the internal is comprised of the intershop transporting of various freight. The fz~eight traffic is the name given to the quantity of freight moved in a certain direction between two points, the point of departure and destina- tion. The calculating of the freight turnover and freight traffic starts by establishing the range and volume of freight to be transported between the corresponding subdivisions in the forthcoming period being planned. The volwne of freight to be transported iG calculated for each individual freight delivery. The data on the freight turnover and freight traffic is recorded in input-output freight turnover tables (Table 25), which are drawn up for the individual shops and warehouses, and then for the enter- prise as a whole. These are used as the basis for the balance of the ar- - rival and dispatch of freight, with the exception of individual freight - deliveries, when in terms of.the conditions and the nature of production, the incoming freight turnover may not equal the outgoing freight turnover. ~t~. Selection and calculation of ineans of transport by freight. tr a�fic. For calculating the required amount of ineans of transport, all ~the freight to be transported for internal and external freight traffic is classified into three basic categories: Loose, liquid and piece. Each of these categories is differentiated into groups in terms of the uniformity - of the requirements made upon transporting. Depending upon the nature of - the freight, its weight and size characteristics, the most acceptable types of transport, rolling stock and crating are selected. ` 75 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY ~ 5~ a1 c�~ rn c~o ~n $��o g Z5 ~ g . O .f a. M a0 ~ tD N M ^ N tA 0~0 ~ ~ P N �tt �i x ewov ~ g~ $ I I I I $ y.~ N -ouvQiaw veuN~ ~ 3 y A rl ^ N ~ �d I H ~~8~ dPNaev1 ~ ~ ~ g $ M I I I ~ ~ ~ a~ a~ a pQ ~ U1 ~ N6H91tdL0)j I ~ I ~ I I O I I p ~ ~ i~ ~ ~ ^ ^ ~ r-~ - ~ cd g ~ ~ - BoNVL01 ~BVN~ ~ I I I I I I I I ~ ~o ~ ~ ~ ~ ~ ~ N �r~i -~aVgooea arj ~ ~ ~ ~ ~ ~ g ~ n~ ~ - ''i 4-1 ~~rl ~ v ~40 ~ ~ aAxnodee~ ~ ~o ~�n ~ ~ ~ ~ ~ ~-oxeodoy~ ~ `c~ ~ ~ ~ ~ m ~ w~ g ~ ~ g ~q~ bHN~ I I I I w ~ N tf~ anxxeYayY N ~ ~ ~ ~ ~ o o ~ g 1 ~ ~ O dAxnaus,fx ~ S $ ~ ~ g ~ ~ ~ a~ (Yl ~ W ~i C.~" ~ . ~ O W O g_~ w~ m bRxba~.xu g I~ I~ g I 1~ ~ i ao ~ N O ~ Q N ^ ^ I E3 �~sexa $ �o ~7S go ~ o~i ~ ~ ~1 40 ~ ~ U �VO66~atfHhHB1~ N N N N I I ~ O~ ~ ~ _ H ~ ~ ~ ~ t~ 03 N O ~ ~ ~1 5 ' ~ ~ ~ ~ ~ o S ea I C~ S~ cxi m o x o t~A ~ p+ 'd �w ,s a m ti q O 40 f+ ~ m ~ ? ? c ~c s ~ S ~ ~ u ~ : s 7 S c�o ~ a~ eQ al r1 m ~ N .s d" o m o ~o d N~d 1 = o a`" ~ a~ i a`~i ~ ~ ~ K x ~ u a ~ ~ ~ ~ ~-i ~ ~-I ' U~ M.~ u~ \O l~- U~4 t~ V _ N r-i N o~ O~ O r-I '~4' r-~ rl 76 FOR OFFICIAL USE ONLY i APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 ~ FOR OFFICIAL USE ONLY The calculation of the required amount of ineans of transport is carried out for the averaae or ma.ximum daily freignt turnover, The average daily freight ~ ~turnover Qa i:~ determined ty the ratio of the annual freight turnover to the number of working days of the transport during the year (Qy : Dt), The maaimum daily freight turnover is determined considerin~ the possible uneven arrival and departure of the freight (both during the year as well as per day) using the formula ~nax - ~ag~ where k--the coefficient of unevenness (for outside incoming freight from 1.3 to 1.5; for freight dispatched to the outside network from 1.1 to 1.3; for internal plant deliveries from 1.0 to 1.2). The maximum dail,y freight ' turnover is used as the basis for calculating the quantity of required cars, rnotor vehicles, bat~Lery operated plant trucks and other means of ~ransport. It is also the basis for determining the length of the loadino and unload- ing fronts, for example, the length of the railroad tracks (or trestles) allocated for the unloading of incoming (in a simultaneous batch) freight in cars. The required amourt of ineans of transportation, rolling stock and crating is calculated using the formulas given in Table 26. r ~3. Planning the operation of transport shops . The system of cur- rent planning for the operation of transport shops includes: technical- economic, operational (calendar planning) and the dispatcher system. Techr,ical and economie planning consists in working out the annual plan for the operation of internal plant transport. This plan defines: The total freight turnover of the enterprise and the volume of freight handling work; the demand for the means of transport and cargo handling mechanisms; the required amount o� materials for repair and operating needs; the number of personnel; the wage fund, the cost of transport deliveries (loading and un- loading work) and the most important technical and economic indicators. The basis of the annual planning for the operation of internal plant trans- port is the enterprise tekhpromfinplan. Operational (calendar) planning consists in working out the monthly or shorter-period shipping plans. The annual plans det~rmine only the ap- proximate shippir~g volumes which are later ad~usted ~n working out the monthly and d~~ily shift plans which are the bases for operational piunning of internal plant shipments. _ Dai~~ shift pZans are drawn up broken down for the individual routes and specific amounts of freight handling work indicating the types of freight, the points of departure and delivery, the time for carrying out the work, and so forth. With stable freight flows, the daily shift schedules for - internal plant transport and the operation of the materials handling 77 _ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 ; FOR OFFICIAL USE ONLY _ Table 26 Calculation Formulas for Required Quantity of Means of Transport, Rolling Stock and Crating Indicators and Calculation Formulas Explanation a) Quantity of ineans of transport qm~ -daily maximum freight flow, tons; (motor vehicles, tractors, batter ~trt--the time of one round trip (con- operated and internal combustion sidering the loading time, the run engine plant trucks, and so forth). in both directions and unloading), handl~:.ng a certain freight flow hours; ~lmaxtrt Fd--the daily operating time fund of na F R K K the transport equipment, hours; d m.2 d Rm--the capacity of a transport unit, tons; K,~--the coefficient for the use of the capacity of a transport unit (established depending upon the nature of the freight (0.7-0.9); Kd--coefficient considering acci- dental delays in time (repairs, fueling, recharging of batteries, track failure, and so forth) (0.85-0.95) b) Number of locomotives for each T,~--the time of one locomotive round ' type of deliveries trip, hours; T,~m~ M~--the daily number of shipments n,~ = F~P~Kd calculated in cars considering capacity; F~--daily operating time fund of a locomotive; ~ P~--the number of cars dispatched per trip; - Kd--coefficient considering accidental delays in time (0.85-0.95) c) Number of cars for each type of m~, T,~, Kd--see above; delivery with around-the-clock 24--number of hours in the day operation m~T,e n~ 21+Kd 78 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY [continuation of Table 26] Indicators and Calculation Formulas Explanation d) Time of one locomotive round trip t,~--loading time; 2tru -run time in both directions, T,~ = t,~ + 2tru + tu + tr considering time expenditures on station track and servicing; tu -unloading time; tr -reserve running time for locomo- tive in moving from one point to another (set as equal to the run of a locomotive with a consist) e) TYie quantity of continuous trans- 9.max 'daily maximum freight flow, tons; port equipment (conveyers, trans- Ft--the daily time fund of the given porters and so forth) essential mechanism, hours; " for mechanizing the given freight NPr--hourly productivity of the given flow, mechanism, tons per hour qmax nt = FtNpr f) Quantity of production crating, Qy--the annual volume of the freight in units flow, tons; _ 0__dK d--freight storage standard and np~ - y~- amount of stock, days w d = dl + d2, where dl--tYie freight storage stanciard at the enterprise warehouse, ware- house reserve in days; ~ d2--the size of the stock of the given semifinished product in the pro- duction shops; K--coefficient considering the crat- ing in movement within the enter- prise and under repair (K = 1.15- 1.20); _ W--the average capacity of the crat- - ing, tons; Dw -the quantity of work days in a year equipment are long-term standard plans. With unstable freight flows, these reflect the current demand of the enterprise for shipments and freight hand- ling work carried out under single orders from the shops. ' 79 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY ~ Table 27 . Ma~or Indicators for the Operation of Internal Plant Transport Indicators Calculation Method Turnaround time of railroad cars Planned turnaround of cars is set - of the fleet of the Ministry of by contract between the enterprise Railroads in loading operations on and the railroad administration. sidings, hours Actual turnaround is the ratio of the ~ number of car-hours on the enterprise tracks to the quantity of processed cars Same for own fleet of cars, hours Ratio of number of car-hours in ' operation to the number of car- loadings performed ~ Productivity of ineans of trans- Ratio of ton-l~n carried out to port, ton-km quantity of transport units in work- ing fleet Average daily run of ineans of Ratio of distance traveled by all transport, l~n means of transport to the quantity of transport units in the order Fleet use factor Ratio of the number of machine- hours in the order to the number of machine-hours of the inventory fleet Run use factor Ratio of number of kilometers traveled with a load to total run in - kilometers (with load and unloaded) Use factor for motor vehicle ton- Actual quantity of transported ~ ' nage freight in tons divided by the prod- uct of the nominal load capacity of a t,ransport unit and by the quantity of the trips made , ~0 . FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY . [continuation of Table 27] Indicators Calculation Method Use factor for operating time of Ratio of effective operating time intershop transport equipment over accounting period to calenda,r time in the same period Fuel consumption by types of Planned--according to the currer.t machines per 100 lan of run (kg or established standards or specifica- liter) tions data. Actual--by actual con- sumption per 100 l~n of run Shipping costs of 1 ton-~an, Total of all operating expenditures rubles (including amortization) divided by quantity of ton-lffn carried out Cost of 1 vehicle-hour, rubles of Same divided by number of vehicle- vehicle [sic] hours in schedule Cost of shipping 1 ton of freight, Total of all operating expenses rubles divided by quantity of transported tons Cost of 1 ton of freight handling The ratio of the total of all ex- work, rubles (separately for that penditures for freight handling work done by hand and that by equipment) to the quantity of handled tons of freight - J The dispateher sz~stem consists in control over the observance of the permar.~nt operating schedules of the means of transport, the carrying out of the daily shift quotas and the regulating of the operation of internal plant transport. The transport activities and the degree ~f utilizing the means of trans- port are characterized by a series of technical and econoL?ic indicators, the most important of which are given in Table 27. E. Warehouse Facilities ~+4. Classification of warehouse facilities. Warehouse facilities at shipbuilding en~terprises are classified depending upon: a) their role 81 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY m m~ q~d O N U r~l N o+~ O~ i ~D fy 'd a-+ u~--i w 4~, s~ ,ct a, o a~ o 'a v q�,~ ~ o a~ ~ ~ t w l~ ~ 'a~i 'P+ ad c~i ~ ~ o ~ G! m N+~ ,'s .ti v q N 0~ ti r'~ ~ 'O � F~ i~ rl ~ 00.}~ W~ U p~ a~~ ~ ~ op a~i a~i a~ib a~ ~~b '~b"~a, ,d ~ ~v ~ ~ ~ s�, ~ t�a oo v ao o v ~ ~ a,~ u~~ a a~ ti N iy A w aa ~ ~ ~ ~ ~ ~v pa~ic�~io +~om~~ ~ ~ ~ ~ ~ a~ w u a~ ~ .�s~ m a a~'i ~ o-~ ~ ~ ~ i v .o ~ o ct ~ ~ ~'a~'o~~ ai ~'a~'i.~c~i�m Q ~ o s~ �'~d a~i o~~ �~+'~d o p' } ~�o~'w ~~~a~ ~o ~ ~ ~ ~ ~ ~ a~i ~ ~ a~i ~ A ~d O N~ ~ y~ ~ oa~i ~o~dy o ~~y 4-, ~ ~d ~ zi a~ o o ~ ~ c~ cn ~ ~ ,c~ �a � ~ ~ ~ u ~ ~ ~ 41 4-~i O O 4"~ 40 N 1 ~ ~ ~ N a ~d ~ ~ ~ ~ a, ~ ~ 4~+ O U O da O~ ~ a1 �rl cd ~ ~I h0 ~ ~ ~ v o a~i ~b.~ w~ ~~d~ A ~ ~ A ~-~-I ~ ~ A ~ ~ ~ ~i N W u o ~ ~ ao aNi uai c~d ~ ~ - H ~ 'N U ~ L~~i ~ ~ ~ ~ ~ ~p V 82 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY Table 29 Technical and Economic Indice,tors for Warehouse Facilities Indi.cators and C~.lculation Method Explanation a) Planned (actual) turnover rate of Qai--the established average materials materials in days stock standard, tons; QaiTp Tp -the duration of the period being Dt = P planned, days; ~ Pm -consumption of the given material for period being planned, tons b) Use factor for area (volume) of Su--usable area of warehouse, m2(m3); warehouse ~ St--total area of waxehouse, m2(m3) Su Ku St c) Average load per m of warehouse See above (usable) area _ ~c - Qai ~ Su d) Natural loss of material Pr--consumption of material over ~Pr + Pb~TaYn report period, ton; Ym 100Tst Pb--balance of given material at given date, ton; Ta -average storage period, months; Yn -measurement of loss (by natural loss rates), q; Tst--storage life for which thP natural loss rate is set, months e) Annual operating expenses (costs) Ca -total annual operating expenses, for internal warehouse handing of rubles; 1 ton of material Qt--quantity of processed (loaded, ~ unloaded) material during year, ~ _ a t Qt tons f) Total annual operating expenses Wa -annual expenditures on basic and . supplementary wages and social Ca = Wa + Pe + Pm + Am + Pr + A,~ security deductions, rubles; . 83 FOR OFFICIAL USE ONLY i~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY [continuation of Table 291 Indicators and Calculation Method Explanation Pe -annual expenditures on electric power (fuel), rubles; Pm -expenditures on zuxiliary materi- als, rubles; Am--annual deductions for amortiza- tion of machines and equipment, rubles; Pr--zxpenditures on routine repair of - machinery and equipment, rubles; - A~-annual deductions for amortiza- tion and repair of warehouse and other installations assigned to warehouse, rubles in the production process and jurisdiction as supply warehouses under the material and technical supply service and delivering production raw prod- ucts, materials, purchaseci semifinished and preassembled products; produc- tion warehouses which are under the production dispatcher service and de- signed to store own-produced semifinished products and production fittings; marketing warehouses which are under the marketing department and are de- signed for storing finished products; b) the nature and range of the stored materials into: universal warehouses (main si:ores) designed for storing ship preassembled equipment, fittings and various scarce materials, and specialized warehouses used for storing uniform materials (the warehouse for lumber, rolled sheet, tools, and so forth); c) the service sphere, into: general plant (central) warehouses and shop; d) design features, into: ~ covered (heatable and unheated) warehouses, semicovered warehouses (sheds) and open (equipped and unequipped). The quantity, type and location of the warehouse facilities are determined proceeding from the particular features of the enterprise general plan, its production str~xcture, the production process, the scale and type of produc- . tion, as well as upon the nature of the ties of the enterprise with the out- side suppliers of materials. 45. Dates for the quantitative and qualitative acceptance of f r eight. All materials axriving at enterprise warehouses axe sub~ected to quantitative and qualitative acceptance. By the decree of the State Arbitration Committee under the USSR Council of PQinisters of 15 June 1965, No 8-85, the dates for the quantative and qualitative acceptance of freight axe set depending upon the territorial location of the supplier and the type of crating (Table 28). . 84 ~ FOR OFFICIAL USE ONL`1 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY 46. Calcul.ation of the warehouse area. The area of a waxehouse is divided into the usable which is directly occupied by materials or equip- ment for their storage, and operational which is designed to provide normal : operation of the warehouse (receiving-sorting, issuing and weighing areas, passageways and service facilities). The total area of a warehouse Sw is determined (roughly) by the load method using the formula Qmax Sw = qtku , where Qm~--the maximum storage rate for the supply of the material, tons; qt--the tolerable load per m2 of warehouse floor, tons; ku -use factor for the total warehouse area (determined by ~he ~ ratio of the usable warehouse area to the total. For freight stored in stacks, ku 0.40-0.70; for freight stored on racks, ku 0.3-0.4), The area occupied by passa.geways is determined depending upon the type of materials, the nature and type of employed warehouse equipment for mech- anizing freight han~3ling work and the transport. Usually this area ;0-70 percent of the usable area of the warehouse. The service areas of the warehouses are designed proceeding from a rat~ of 1+.6-6 m2 per worker. ~7. Basic technical a;1d economic indicators for warehouse f aciliti es. For describing the operation of warehouse facilities, sep- ara.te tec~inical and economic indicators are used, and the method of calcu- lating ~these is given in Table 29. 85 FOR OFFICIAL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY CHAPTER 5: PLANNING A RISE IN PRODUCTION EFFICIENCY 48. The plan for technical development and the organization of production. In long-range and current planning, the basic doclunent which determines the increase in production efficiency is the plan for technical development and the organization of prod~ction. This is determined by technical progress which consists in the continuous development of new equip- ment, the introduction of progressive production methods, the mechanization and automation of the production processes, and an improvement in the organ- ization of production and management. The initial data for working out the plan are: 1) the scientific and tech- nical f~recasts relating to the most important problems of the development of the sector, the association and enterprise; 2) the control figures and quotas from the superior organizations on the state and develogment of production of the new types of products, and the introduction of new pro- _ duction processes which are of paxticularly important significance in the development of the sector; 3) the results of completed scientific research - by the sectorial institutes and design bureaus; the results of analyzing the technical and economic indicators for the production level at the given enterprise or association in compaxison with the overall level of techni- cal development in the sector and the scientific and technical achievements; 5) licenses, patents and proposals of inventors and production rationalizers, and the results of completed scientif'ic research by the engineer enterprises of the enterprise and association. For coordinating the plan for the technical development and organization of ~ production with the other sections of the five-year (current) plan and com- plete accounting in the plans far eco~omic efficiency from the use of sci- entific and technical achievements, the efficiency calculations should be carried out for the years of the period being planned considering the in- troduction of new equipment, the demand for additional capital investments and other expenditures on the development and introduction of new equipment. Here the designated calculations must determine the influence of the intro- duction of the measures on the basic techni~al ar.3 economic indicators of the five-year (current) plan, including: 1) the rise in the production vol~m?e and the increase in the proportional amount of superior quality 86 FOR OFFICIAL USE ONLY y ~ ~ . . ~ . . . . . . . APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240020009-8 ~ FOR OFFICIAL USE ONLY products; 2) t'~e rise in labor productivity, the savings of the number of workers of production planning personnel (PPP) and the wage fund; 3) the reduction in p~~oduct costs; 4) the rise in production profit and profit- - a.bility; 5) the i.mprovement in the use of fixed productive capital and production capacity. The plan for the technical development and organization of production is worked out for the following subsections: 1) the develQpment of new types of products and an improvement in the qua,lity of the produced product; 2) the introduction of progressive production methods, mechanization and auto~nation of the production proceses; 3) the improvement in production management, planning and organization; 4) the scientific organization of labor of workers, engineers, technicians and white collar personnel; 5) scientific reseaxch and experimental design; 6) indicators for the technical and economic level of production and the produced product (see �56); 7) standardization of the most important types of products (articles); 8) the c conservation of :~ature and the rational use of natural resources. The results of calculating all the subsections of the five-year (annual) plan being planned are reduced to a common form (Table 30) which reflects all the technical and economic indicators.for the measures to be intro- duced under the plan for the technical development and organization of pro- duction, and are to be accounted for in the independent indicators far the operation of the enterprise, association and ministry.l ~+9. Indicators for the technical and economic level of produc- tion and the produced product in shipbuilding. As the general indicators for the technical and economic level of production and the pro-- duced product, the five-yeax plans use the following system of indicators 9 (Table 31). Along with the gensral indicators for the technical and economic level of production and the produced product, provision is also made for specific indicators which take into account the sectorial features. Such indicators sr.ould describe: 1) the quality and structural changes of the produced product; 2) trA level of tha technical b~,se and use of equipment; 3) the m~.terial intensiveness of production; the volume of production for prod- uc~cs employing the most important efficient production processes and pro- progressive equipment; 5) labor productivity in physical units. 50. Planning a rise in the economic efficiency of production. A rise in the efficiency of social production is the ba5ic task of the eco- nomic policy of our state and is an ob~ective economic category of ~eveloped socialism which is insepaxably linked with its economic laws and conununist 1For a detailed description see the sectorial procedural instructions on the elaboration,.of five-year plans. _ 87 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVE~ FOR RELEASE: 2007/02/OS: CIA-R~P82-00850R000200020009-5 ~ 6 NOVEMBER i9T9 OF SNIPBUIL~INQ ENTERPRISES 2 OF 3 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-00850R000200024409-8 ~ FOR OFFICIAL USE ONLY _ q q ~J O . w .,-1 . 1~ i~ i~ O �rpi O ~ ;j ~ O ~ . . ~ ad ~ f-i ~ W cd rU-~ p~ - O r-1 '9~d �a~u ~~Ma~~a o v~ 40 ri a1 U F+ ~ ad M _ ~ ~~xoae~noxo�c yoaoMo,~ - , ~ p ~ ~ j v ~ ~ N N ~-i y, ri .b r-I ~ �~rab ~xtaoa U .vr'f. ~ ri ~ ~ i t~" ~ I a!. m �eavaea"aaaaVxoyoa ~ri i-+ O~�~ O q�r~ ~ ~ N p,T �~N8 iONqiliJ,8~OH10 g rCl O ~d r-I v.}.~ " ~ ~ ~ y=~ ~ b a ^ .n ~U ~ . ~ 0 9~ f d A a u~ i7 Z~ ~ q 4~-i O - ?a ~ ~ m 'lBd.LB6 XRNqIfBAd ~ (z~ ~ ~ ~ -acvw axRar:ex~ ~ p ~ N FS t~A N N" ' m�1 �i:- N+~ G! ~ U~ t7 Tem-~ �q~Sd �~A.r. ~xxtiHdti O~~ ~~-I a b a O~ I ` ~ ~ y m -Odil BOAdBHOt N1~ON u~ a$ -qataaqaa seuanc o N r~-I O v~ f~-i ~ v~ ~d ~ ~ ~A ' �aea ,co KAW'7HONE N i-i ~ W Pi ~ .n - ~ ~ba �u~~~~a~ 871NNhOS~R ~ s ~,F~ a w m R ae~~Cdj~ t~A P~l O~ F'w 1~ a O~O _'w U U O ~ i iy s 4 m~ o rl rl U~~rl N,t~ W a6 e, 0 9 axVadk ~ p u m G O N ~ U ~ u ' ~ u � .tl ~ a1 ~ ~ U 4-~ ~ 00 '?a ,d O Y ~ ~ =i0 - W N ~ ~ .N O 4-~ ~ ~ ~ N a a ~�c x eat~ttoa 'd v cd ii O W~ U',~ ~ a' u$ -xas a uH ~ 3 u t~ ~ s: ~ pi' m aNd at 4, ~,oao ~d i+~a~ a H o - ww ~~w ca a+~ m+ o o a~ q a-~ o ~ ~ ~ ~ o~aa ~ ~ ~ ~ ~ y, v i~ ~ ~ w f7 O ~ H o ~aao ~'~~>a~~~ o N ~i ~ c~i p' 'c~i o~'~ a~ ~ 8nltsxduodalt ostaaext;ok c~ ` ~ ~ ~ rd ~ 4-~ I~1-~ N r~i ~ p u] M m N^ Nu~ N O ~ I cd U 00 r~-1 ~ nxwvuaeu ttos ~v ~ W ~ ~ ~ o ~ ~ ~ ~ o ~ a3 ~ ^ v ~ a~ _ . ~ U ~ ~ o~ ~ u ~d tAOdsa y,r) a~em ~ aNi ~d ~-I ~i ~ ~ ~ W ~ I~ _ �r~1 ~ o . ~~a~ ~wao~>'a, o ~ m ~ � ~ w o~o ~d x W ~ � ~ ~ H ~ � ~ O O 3~ fi td ~ ~d ` og o � a . ~ .'U~r~i~ ~ 1 4~i ~r-I~ y ~ ~ ~ � a~ 'd ~ c~ ~ ti- fy a ~ - rl N e~ a+ s ~ O i~~i F~' O~i ~1 O f~ cd A � u ~ ~ p~ N ~ N m~d p , ~ ~ a~ < d o : ~d `o o U.}.~i m0 ~p+~ ~ '~'i m ~ C e � ~ O T1 ~ O qq~~ ae ?S ~ .F.~ ~ - H~ o q w u ' ~ W ~ q ~ rl N~ 4~-~ ~ O ~ =g ~S a; ~a a a�,~ ~ aq~ a o w ~ H q m a~ m u 4-~ q s~ ~ ,a, ~ y o H � G~' �r1 O O 1 N T~ U~~ N ~ 4-~i ~ ~ CO , V f+' f~ d' ii~ ~ �r~i ~ U] ~d W O+~ -F~ r'~ o~ O O~ o T~ cd v N�rl q u S�~ F., z aN ~o~o~ ww ao 88 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY - Table 31 . Techni~al and Economic Indicators of the Production Level Indica.tors Unit l. Products the technical and economic Types, sizes, names in ~ ' indicators of which eithPr mee+, the of the toi;al quantity of types, highest achievements of Soviet, and sizes and names of the producE~d foreign science and technolo~- or product surpass them (superior category) 2. Sales volume of these products Million rubles, ~ of total volume of product sales 3. Products the technical and economic Types, sizes and names in ~ of indicators of which do not meet the the total amount of types, sizes modern requirements, are obsolete and names of the produced prod- and are to be modernized or taken ucts out of production (2d category) _ The sales volume of these products Million rubles, % of total - volume of sold products 5. Obsolete products to be taken out Types, sizes and names in ~ of of production total quantity of types, sizes - ana names of produced products 6. Products being developed by Pro- Same duction for the first time 7. Products produced up to 3 ye~~:rs Same inclusively 8. Production volume of these products Million rubles, ~ of total volume of sold product 9. Increase in the volume of sold Nfillion rubles prodt;.ct by introducing new tech- nology _ 1C. Degree of inechanization and auto- mation of labor: ~ a) Number of workers performing ~job Thousand persons, q of total by fully mechanized method number of workers b) Number of workers to be trans- Thousand persons, ~ of number ferred in the period being of workers engaged in ma.nual planned from manual labor to labor in basic production - mechanized and automated labor ' _ in basic production c) In auxiliary production Thousand persons, q of total number of workers engaged in manual labor in auxiliary pro- ~ duction _ Sg , FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFTCIAL USE ONLY [continuation of Table 31] Indicators Unit 11. Absolute decline in the number of Thousand persons, ~ of number - workers engaged in manual labor in of workers engaged in manual basic production and auxiliary ~obs labor in corresponding production (for the year being planned) and auxiliary jobs 12. Rela~;ive reduction in number of Thousand persons, q of total workers due to measures of increas- relative savings of personnel ing the technical level. of produc- ~ ~;ion 13� Reduction in the cost of commodity � Million rubles, ~ of total product in the period being plan- volume of reducing the cost of ned due to measures which raise commodity product in the period - technical level of production being planned 14. Rise in labor productivity due to q increase in technical level of pro- duction 15. Rise in use factor of production q capacity and production equipment 16. Rise in share of progressive Thousand rubles, ~ of total machines, equipment and instru- volume of productive capital ments in the productive capital 17� Increase in share of product manu- Million rubles, ~ of total factured by new equipment savings from decline in the cost . of comparable products 18. Reduction in proportional expendi- tures of raw products, materials, ftzel and energy per unit of com- modity product 19. Increase in profits from introduc- ~fillion rubles, ~ of total tion of new equipment volume of net product or to vol- ume of sold product [sic] 20. Expenditures included in capital Million rubles in~trestments for introduction of new equipment and raising the tech- - nical level of production and product output _ construction. The basic factors involved in increasing the efficiency of social production are: The rapid introduction of scientific and technical achievements; the acceleration of scientific and technical progress; the 9~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ~ improving of~the forms of t'~e organization of labar and pr~duction; im- " proving the use of productive capital (capital investments) and production - capacity; im~~�oving the methods of economic management. The realization of these factors is a most important task at each production associat~or~ and enterprise. Of important significance is the optimizing of the plans on the basis of - the broader use of mathematical economics models and electronic computers and the use of progressive.standards and rates. For the purposes of raising the scientific and technical soundness of the plans for all levels of national economic planning, a unified system of indicators is used and this was approved by the Decree of the USSR Gosplan, - No ~+8, of 22 April 1971~. Production efficiency at the shipbuilding enterprises (associations) is planned on the basis of the principles which are common to all the elements of the national economy, that is, by correlating the production results (the effect) with the expenditures or the employed resources. Planning a rise in the economic effectiveness of production is directly linked ~to the elaboration of all the sections of the five-year (annual) plan. ~ The high growth rates for the economic efficiency of all production are based upon high growth rates of labor productivity which are provided for in the labor section; on ~the growth rates of production profit and profit- ability; on raising the return on investment, increasing the effectiveness of capital investments provided in the capital construction section; on , improving the utilization of raw products and material resources, and so forth. For assessing the efficiency of production, a system of general and differ- entiated ind.icators is used. The general indicators characterize the overall level and dynamics of production efficiency at the enterprise or association, while the differentiated ones describe the degree of utilizing individual types of resources, for example, live labor, fixed capital, _ material expenditures, and so forth. The system of such indicators for assessing the economic efficiency of pro- duction as used in the production associations and enterprises is given in - Table 32. In the course of drawing up both the long-range and current plans, the efficiency indicators should be computed for the end of the plan period. ' A comparison of the calculated indicators with the indicators for the start of the plan period makes it possible to show the dynamics of efficiency and ~ its influence on a change in the production results. The formulas for calculating the influence of the indicators for a rise in production efficiency on the overall results oP the operation of an enter- prise or association are given in Table 33. 91 _ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ~ FOR JFFICIAL USE ONLY ' ~ ~ o - ~ tiw i ;~,~,w'~u I , o~ al v o q~~d ~ o 0 0 - ~aa,'~m ~~:~�ua ~w~w m ~ ~~.v ~ ~ ~ ~ � v ~ � N � ~ ~o ~a~i~%~ ~a~ia~~~o ~a~~pa~'i,o ~ a ~ o a~i ~ ~ ~ ~0 ~ ~ o ~ p, ~d ~ 1 I 4-~ G) O 40 f~ W N 40 rl 00 N o A F+ ~ u F~ q o ~,~a a o ~ a~,~cs a~.~~ ~~~,a+~ a~a~ ~ ~ ~ i ~ w � .d ap~,.q �~y a+~ ~ ~ o~ a~.-.'~w,-~ ~ ~ ~ N O a~r~ ~ r~-I ~ ~ i~ ~j F+ 40 q O tA �r~ G3 ti-~I ~ u O a.~i ~ 4? 0 CS W O ~ �ri :-1 a~ m~e ~ v v a~ a~+~+~ ~ o ~ o ~ ~ a s~ o o~ d y � r- i A r-~ I r l u y, rI N N~ ~ U] r1 �ri ad iy w+> W A ~ N ~ ra ~ a ~ b ~ v~+~ ~ a ~ a ao o a~ a ~ ~ ~I w r-I ca b�~ o u�aQ a~ o.r{ r~ ~I 4-~ f- ~ 4 1 a t N~ a l u o a i ~ t a i~ R 7 N V- i t~i o~~~ v N ~~.~i ~ c~ r1 4-~ O O+~ � e'~ ~ Jy U N TJ R~ f~ O N O N}~ ~ ad - w 4-~ rt H ~ a ~ ~ o ~ o ~ u t~ > ~d m ~I m v, ,fl a~ a aa a~ b ~a c~ a a~ a, ~ Tj a a� w u~~~~ a o+~ou~,a a,ou�~....~wqq ~ ~~u ~ ~,a~u~ ia,~ sao~ ~oa~~~~o+~a, a~as o af o a a~ a~ ~d i o o~ b a-~ i a~ q z~ ~ c s q�~ m u o +~+~a~ oao ~,oa,u~ ~,~,oo~aau .N~,o~, w+~+~�~ s7 c~ m q�,~ aa ~d o~ a~ a~ o o ti ~ m a~ s, a~ o m v, ti~ v'~ c~'i a~i e~~' aa ~�a a~ w ao o�w~ ~y aaau a ` w ~~~N +~~w~oa-~ aaa�~,,~ ~ ~ ~ d ~ ~ ~d ad ad .a ~ ~ ~ ~ ~ ad ,c~ ~ a o ~ a ~ ~a ,o ~ ~ o-~ _ ~ ~ a s~ m ~ ~ a ~ ~ o ~ ~ ~ a ~ a~ .o u u o u ad a~ m cd ~ ~ ~ ~ U ~ 'T~ ~ ri ~ 1d 4i rl ~d ~d m G1 U rd Rj O ' 50 O O� O W�rl OQ-~ wo w ~ o~ wo a~ o : ~ N~ ~ y~a, o~ w a'a~i ~ ~n a ~ a rl H+~ a~ A ~ N f, ci o m.~ ~ a o - a o a o c t o o t~ a*'a~ U~,s~~, �~u,or~~,~w o+~ o .~~ooao ~a~ooaoan~~~-~� ~ a~o~wa~~�~ aa~ ~ a w o a~ o .a~ ~a~a Na�~~,n ~wo~.a~, m i ~ b ~ a N � a~ s~ a~ a o ~ H t11 f.~" O ~ M ~ r~l 40 ti O O ri 4~ O~`T~a ~ i7 N 4~0 ~ ?d iS ~~rl O W~~ u a w o~" ~ a b ~ a, a~ q o~ a~ o ~ p v~ � o o ~~d y, a, ~ ~d ~d o ~ a~ s~ ~ ~ ^ ~ ~a m ~ d~ %do~ a~ao�~+~ ~~aaa~ ~'~mN~a,~w� ss s~ ~ o~, ~d u s~ ~n ca b ~ w�~ ~ a w oa a o ~ o ~d a~ s~ ~ o a � . v~ zi �~v~va~~ ~w~~a~+~~+~ ~ .a ~ a~'i ~O ~ u. a'~.~.~ ~w~ ~w+~+~ og o ~ m~~-I ' o b~i u a a~ w u q c, id ~ a ~ b+~ ad ~ v�~i ~ ~ ~ o ~ ~e ~ a~ ~ o a~i m'~ a ~'o w�~ ,a a~d a~ ~ a~ ,n u ~d o w ~ o . 9~ - FOR OFFICIAL USE ONLY ' APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY , Table 33 Influence of a Rise in Efficiency on the Overall Results ~ of Enterprise Operations Indicators Explanation a) Increr~.se in net, co~odity (gross) PP--rise in personnel, - product from rise in labor produc- Gp--increase in net, commodity (gross) tivity product in period being planned,~ P _ IPr = 1 - ~ 100 P b) Indicators for production of net, Pri -the volume of net, coirunodity commodity (gross) product per (gross) product (individu:~lly ruble of expenditures for the periods), rubles; p C--total expenditures (costs) on Gp = ~ producing the product (separately for the periods), rubles c) Relative savings (overexpenditure) Ff,Q, Ffp--the average annual value of in fixed productive capital the fixed productive capital in the base and planned year, Ef~ = F f,QKi-F fp rubles; Ki--index for the growth of the pro- duction volume of net, commodity (gross) product in year being planned in comparison with base year ~ d) Relative savings (overexpenditure) Fwb, FWp--average annual value of in nor~ed working capital normed working capital, respec- tively, in base and planned Ewc - FwbKi-Fwp periods e) Relative savings (overexpenditure) Meb, Mep--material expenditures on of material ou-tl~,ys production of corrunodity (gross) product, correspondingly, in Em = M~bKi-Mep base :~nd plan periods . 93 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ~ FOR OFFICIAL USE ONLY ' ~continuation of Table 33] Indicators Explanation f) Relative savings (overexpenditure) F~b, F~p -the wage fund (wages and in wage fund (wages and material material incentives), respec- incentives) tively, in base and plan periods ~ - F~bKl-F~P ~ Relative savin~s in live labor Phb~ php--number of industrial- - (in annual workers) production personnel, respec- tively, in base and plan periods ~ Eh = PhbKi-Php h) Level of overall (absolute) Pn--the v~lume of net, commodity _ efficiency (gross) product separately for Here the following calculation the periods., tho~sand rubles; variations are possible: Ff--fixed productive capital (separ- ately for the periods); p F~--working capital (separately for n Ea F f+ F~ 7 Fw ~ the periods Fw -wage fund (separately for the pn periods); ~ Ea C+ EnFpr ' C--product costs (separately for the periods); pn En--standard efficiency coefficient Ea - pnWa + EnFpr ~~.15); - Fpr--productive capital (separately ~ for the periods); Pn--the number of employees (separ- ately for the periods); = ' Wa--average wages of one employee ' (for periods) The relative savings in resources is determined for the years of the five- year plan as the ratio to the previous year as well as to the base year in a running tota.l. The savings for the individual types of resources in- - volved in the production of net commodity (gross) product is compared with the corresponding savings during the previous analogous period. The rise in total production profitability should be achieved primarily from a rise in profit as a result of reducing product costs and lowering the capital intensiveness. Expenditures per ruble of commodity (gross) product are calculated by dividing the expenditures for the full costs of the commodity product by the product volume. 94. FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY = The planned cost of commodity product is calculated by determining the in- _ fluence of the technical and economic factors on the change in expenditures in com~arison wi�h the level of the preplan (base) ,year. The relative share - of ~the increase in product due to a rise in production efficiency can be ` _ deterrnined from the formula: Rise in production volume on growth of expenditures basis of increase in efficient~ = 100 - 100~. use of resources ) growth of production _ volume 51. Determining the efficiency of introducing new equipment.2 The economic efficiency of using new equipment, inventions and rationaliza- tion proposals in the national econom~ is characterized not by any one uni- _ versal indicator but rather by a group of basic and supplementary ones. The basic indicators which determine the economic efficiency of new equip- ~ - ment include: The amount of capital investment; product costs; the annual - economic effect; labor productivity; the profitability of new equipment to be introduced. The list and nature of the supplementary indicators in each specific in- sta.nce is deter~nined by the content of the new equipment. These indicators are economic, technical-economic and technical. The supplementary indicators can include: Labor intensiveness, metal in- tensiveness, the length of the production cycle, the turnover rate and amount of aorking assets, the quantity of equipment, the working conditions ' and labor safety, the level of inechanization and automation, capital in- � - tensiveness, and so forth. Here, while in calculating the economic ef'fi- ciency of new equipment the basic indicators are required, of the supple- mentary oizes only ~those are considered which undergo change or are neces- sary for a fuller assessment of the new equipmPnt. - The effectiveness of developing and intraducing new equipment is determined by comparing the value and physical indicators for t;he new equipment with a certain standard or base. The choice of the base (standard) for compari- son depends upon the purpose cf the economic analysis: a) if the question is of creating and introducing new equipment, then as the base they emplo,y the indicators of the best equipment desigr.ed in the USSR (for foreign equipment which could be purchased in the necessary quantity or developed ; in the USSR on the basis of acquiring a license); b) if it is necessary to - 2See: "Procedure (Basic Provisions) for Determining the Economic Efficiency of Using New Equipment, Inventions and Rationalization Proposals in the National Economy," EKONOMICHESKAYA GAZETA, No 10, 1977� - 95 FOR OFFICIAL USE ONLY ~ I APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY work out or select the most efficient variation of a production process, mechanization or organization of the production process, then the basis y for comparison should be the indicators of the best variations which are to be replaced; c) if it is necessary to determine the real amount of the eco- - nomic effect which would be obtained from introducing the new means of labor - under the specific conditions of the given enterprise, then as the base - one uses: in existing production, the equipment or methods of manufactur- _ - irig the product existing in the sections, shops or at the enterprise prior - to introducing the new means of labor; in new production, the equipment or methods of manufacturing the product which are most acceptable under exist- ~ ing production. ~ Ir determining the annual economic effect, it is essential to employ for the base variation the technical indicators which will be achieved in the - calculated year. The determining of the annual economic effect is based upon a comparison of the calculated expenditures for the base and new equipment. The calcu- lated expenditures are the total of the cost and the standard profit 0 = C + EnK, where 0--the calculated expenditures of a unit of product (work), rubles; C--the cost of a unit of product (work), rubles; En--the normed coefficient fc~r the efficiency of capital investments (0.15); K--the proportional capital investments into productive capital, rubles. In assessing the economic effectiveness of the new equipment being intro- duced (planned), it is essential to provide comparability of the indicators for the different variations of the means of labor. This is achieved by _ using a production volume which is the same for all the variations, com- paxable prices for equipment, materials, energy, fuel, and so forth. The cost of a unit of product in using the base means of labor is corrected on the basis of analyzing the planned costing. When the plan expenditures for the individual product cost items for the base variation are under- sta~ted or overstated, these indicators are determined by the direct calcu- lation method based upon progressive standards, and in the event that they are below the standard, they are corrected for the r~inimiun actual expendi- tures. _ The composition of the cost items for industrial products, the methods of - calculating them and the general metY~ads of costing are applied in accord with the "Basic Provisions on Planning, Accounting For and Costing Indus- trial Products" as approved by the USSR Gosplan, the USSR Ministry of Finances, the State Price Committee and the USSR TsSU and put into effect as of 1 ~7anuary 1971. 96 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 I FOR OFFICIAL USE ONLY - T~,ble 3~+ Formulas for Determining the Economic Efficiency of Using New Equipment, Inventions and Rationalization Proposals in the National Economy, According to the Standard Method Indicators and Calculation Formulas Explanation ~a) (b) l. Annual economic effect from em- O1, 02--calculated expenditures of a ploying new production processes, unit of product (work) produced the mechanization and automation using the ba.se and new equipment of production and labor which pro- determined from the formula 0= viae a savings in production re- C+EnK; ~ sources with the output of the C--the cost of a unit of product same product (work), rubles; K--proportional capital investments - Ea =(O1 - 02)A2 into productive capital, rubles; En--the standard coefficient for the ~ efficiency of capital invest- ments (En = 0.15); A--annual voliune of the production of product (work) produced using - the new equipment in the calcu- lated year, in physical units 2. Annual economic effect from the O1 and 02--calculated expenditures production and use of new means of of a unit, respectively, of the labor in extended use (machinery, base and new means of labor, equipment, instruments, and so rubles; ~ . forth) with an improvement in B2/B1--coefficient considering rise quality performance (productivity, in productivity of a unit of the . durability, operating costs, and new means of lab~~r in comparison so forth) with the base; B1 and B2--annual volumes of product B P+ (work) produced in using a unit, Ea ~1 B2 P1 + En + respectively, of the base and 1 2 n new means of labor, in physical ~I1-22~ - En(K2-Ki ) units; + P2 + En _ ~ i +En P2iEn coefficient considering change in the service life of - 02 A2 the new means of labor in com- parison with the base; P1 and P2--share of deductions from the balance sheet value for com- plete replacement (renovation) 97 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY [continuation of Table 34] a b of the base and new means of labor. Calcul~,ted as amounts in- verse to the service lives of means of labor determined con- sidering their obsolescence; En--standard efficiency coefficient (0.15) ~Ii-I2) -En~K2-T~i) P2 + En --savings for con- sumer in current operating outlays and deductions from accompanying capital in- vestments over entire service li~'e of the new means of labor in comparison with the base, _ rubles; Kiand K2--corresponding capit al in- vestments of the consumer (not considering the value of the examined means of labor) in using the base and new means of labor in the calculation for the volume - of product (work) produced by the new means of labor, rubles; Ii and I2--annual operating outlays ~ of the consiuner in its use of the base and new means of iabor calculated for the voliune of product (work) produced using the new means of labor, rubles. These outlays consider only a portion of amortization earmarked for the ma~ or overhau7. of the means of labor, that is, not counting the funds for its reno- vation, as well as the amortiza- tion deductions for the accom- panying capital investments by the consumer; A2--annual voltune for the production of the new means of labor in tk~e calculated year, in physical units ~ 98 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 . FOR OFFICIAL USE ONLY [continuation of Table 3~+] a b 3. Annual economic effect from the Oi, 02--calculated expenditures of a production and use of new or im- unit, respectively, of the base proved means of labor (materials, and new subject of labor; - raw products, fuel) as well as the Y1, Y2--proportional expenditures, means of labor with a service life respectively, of the base and less than 1 year new sub~ect of labor, calculated per unit of product (work) pro- Y1 (Ii-I2)-En(K2-Ki) duce3 by the consumer, in physi- Ea = O1 Y2+ Y2 ~ cal units; Ii, I2--expenditures per unit of product (work) produced by the consumer in using the base or - 02 A2 new subject of labor w~+.hout ~ cQnsidering their value, rubles K1, K2--accompanying capita,l invest- ments by the consumer in his use of the base or new sub,ject of labor calculated per unit of � produc~t (work) produced using the new subject of labor, rubles; A2--annual production volume of the new subject of labor in the cal- culated year, in physical units 4. Annual economic effect from the P--profit from the sale of the new production of a new product or product or increase in profit superior quality product (with a (1'2-P1) from the sale of superior hi~her price) for satisf~ring the quality product (P2--profit from ' " needs of the population, as well the sale of superior quality . as a new product a.nd superior product, P1--profit from sale of quality product based on inven- product with previ~~us quality), tions and rationalization pro- rubies; posals K--proportional capital investments ~ for the production of the new Ea =(P - EnK)A2 product or proportional additional capital investments related to improving product quality, rubles; ' ~ En--standard efficiency coefficient ~0.15); . A2--annual volume of new product or superior quality product in cal- culated year., in physical units 99 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY [continuation of Table 34] a b ~ Reflection of Economic Efficiency from New Equipment in Standards, Rates, in Planning and Report Indicators l. Planned (actual) increase in Zt and Ct--wholesale price (without profit from the production of a turnover tax) and production new product in yeax t cost of a unit of product in the - planned year t, rubles; ~Pt - ~Zt ' ~t~ ~t - ~Z1-~1~ A1 Z1 and C1--wholesale price (minus ~ turnover tax) and production cost of a unit of product to be replaced in the year preceding ' the introduction of new equip- ment, rubles; At and A1--productian voltune of new products iri yeax t being planned and the product to be replaced in the year preceding the intro- duction of the new equipment, in physical units 2. Planned (actual) reduction in C1 and Ct--production cost of a unit costs (increase in profit) from of product in year t being plan- introduction of new production ned and the year preceding the methods, mechanization and automa- introduction cf new equipment, tion, scientific organization of rubles; labor, as well as from the use of At--production volume in year t be- new products by the consumer ing planned, in pY~ysical units Ct = (C1-Ct) At 3� Planned .(actual) reduction in the ~Nt--hypothetical release of workers number of industrial-production in year t being planned, persons; personnel (hypothetical release of T1 and Tt--labor intensiveness of a workers) at areas where new equip- unit of product in physical (or ment is to be introduced cost) units prior to introduction of new equipment and in year t ~Nt'= (T1 - Tt) At or being planned, persons; Bbl, Bbt--labor productivity prior to DNt - ZtA~ - ZB A~ introducing new equipment and in ~1 bt year t being planned, rubles/man; At--production voltm?e in year t being planned in physical units 100 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-00850R000200024409-8 FOR,OFFICIAL USE ONLY - [continuation of Table 3~+] a b Planned (actual) savir.gs of capi- K1 and K2--proportional capital in- ta1 investments vestments into base and new equipment, rubles; g2 B1 and B2--annual voltunes of product ~Ke = K1 B1 - K2 A2 (work) produced in.using the base and new equipment, in phys- ical units; A2--annual production volume of product (work) in variation for new equipment in calculated yeax, in physical units 5� Planned (actual) reduction in Mt and M1--material expenditures per m~,terial expenditures as the re- unit of product in year t being sult of introducing new equipment planned and in year preceding introduction of new equipment, Mt = ~M1- Mt)At rubles; At--production volume in year t be- ing planned in physical units 6. Repayment time of capital invest- Kt and Kadd--planned and supplement- ments planned for the introduction ary capital investments into of new equipment and supplementary new equipment, rubles; ~ capital inv~stments: Pt and ~Pt--planned (absolute) and _ additional (in comparison with KZ Kadd base equipment) profit from the T= P~ ; T1 = ~Pt realization of the annual volume of new equipment for year t of production to be planned, rubles After correcting the cost of a unit of product, the total cost of the annual output for the base variation is corrected by the production volume in the year being calculated. .The volume of capital investments under the base variation is also ad,justed in accord with the planned volwne of production in the year being calculated. This correction is made by a direct calcu- lation of the demand for equipment, production areas and other items of capital outlays. ~ The capital investments of the manufacturers and consumers of new equipment consider both the direct capital investments related to the development and introduction of the new equipment, as well as the accompanying one-shot ~ 101 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-00850R000200024409-8 FOR OFFICIAL USE ONLY _ Table 35 Formulas for Calculating Changing Elements in the Cost of Manufactured Product E;cpenditure ~tems and ' Calculation Formulas Explanation ~a). (b) 1. Expenditures on basic mate.rials N~--consumption rate of material and semifinished products (semifinished product per arti- ~ cle), kg; ~N P(100+d ) Pm -the cost of a unit of material, c m t rubles; Om = 1 - EQ,,~P,~ Q,~--the amount of wastes, kg; 100 p~__value of a unit of wastes, Same for purchased articles rubles; dt--transport and preparatory ex- m penditures, - ~NbPb(100+dt) Nb--consumption rate of pizrcnased ~ 1 article; ~ 100 1'b--cost of a unit of purchased article, rubles; r,1--number of types and sizes 2. Amount of wastes which can be N~--consumption rate of materials sold per article, kg/m; Qd--net weight of the piece, kg; _ Qe = N~ - Qd - Qw - Qm Qy~--weight of irrecoverable losses of materials (forging, stamping PTote. Irrecoverable losses with and so forth), kg; hot stampin~ and forging per heat- Qm -same with machining, kg ing are 2-3q of the initial weight of the material, with machining approximately 3~ of the weight of the chips 3� Wages of production piece and time tu--piece time rate, hour; workers: Ct--average hourly rate (consider- - ing piece-bonus and piece- Wp = tuCtN; progressive surpayments), - rubles; _ Wt = tuCbN N--annual program; Cb--average hourly rate of ti~ne workers (considering time-bonus surpayments), rubles 102 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY - [continuation of Table 35~ a b ~xpenditures on upkeep and opera- u--equipment duty factor; tion of equipment Rm, Re, Rf--the number of repair units, respectively, on the In m m mechanical, electrical and iur- Oe = U~Rm(Hm+Hn+Ht)+~HeRe+~gfRf nace part of the equipment; 1 1 1 H~, Hn, Ht--correspondingly the average amount of expenditures on a repair unit of the mechani- cal part of the equiprnent per year; the average amount of ex- penditures on the wages of re- pairman per repair unit (per year); average amount of expendi- tures on production purposes per repair unit per year, rubles; He, Hf--average amount of expendi- tures per repair unit per year, respectively, for the electrical and furnace parts; m--nur.~ber of equipment types per production group - 5. Expenditures on amortization of V~--the initial (replacement) value - equipment of the fixed capital, rubles; - a--amortization percentage; _ mC V~au u--eqLlipment duty factor; - ~a G 100 m--number of equipment types - 1 . 6. Expenditures on routine equipment See above - repair m m ~ - Or = u ~HmRm + ~HeRe = 1 1 7. Expenditures on power electric Ny--total installed capacity; energy Fe--available (calculated) annual 1 equipment time fund, hour; ~e =(N:vFeKtKu~ P u Kt--coefficient for equipment use in l EFF e time; Ku--equipment use coefficient for capacity; 103 FOR OFFICIAL USE ONLY , . [ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY [continuation of Table 35~ a b _ EFF--efficiency; Pe--cost of 1 kilowatt hour of elec- tric energy; u--equipment duty factor 8. Fxpenditures on compressed air n--number of compressed air re- - ceivers; ~ nyaFegul:5, Ya--constunption of compressed air ~a 1,000 Pau per receiver with continuous use, m3 per hour; Fe--available (calculated) annual time fund for oparation of re- ceiver, hour ' Ku--equipment use coefficient (Ku = 0.3-0.5)~ 1.5--coefficient considering air loss; Pa--cost of 1,000 m3 of compressed air, rubles; u--equipment duty factor 9. Expenditures on gas for production Cg--proportional hourly consumption purposes of gas by one user with continu- ous operation, m3 per hour; m Fe--available (calculated) annual Og =~CgFeK,~Pgu operating time fund of the user, hour; K,~--load factor of consumer; Pg--the price of 1 m3 of gas, ruble; u--duty factor of consumer; m--number of consumers 10. Expenditures on operation of ~ Ctr--average cost of shipping 1 ton transport of freight, ruble/ton; - Qfr"quantity of freight transported ~tr - ~trQfr per year, tons 11. Expenditures on tools Ih--constunption rate of tools per hour of equipment operation, ~i = ZhFeu kopeck/hour; - Fe--available (calculated) annual operating time fund of the equip- ment, hour; 10~+ ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFI~IAL USE ONLY [continuation of Table 35~ a b ~ u--equipment duty factor 12. Expenditures on operation and re- Cf--value of fittings and attach- pair of fittings ments, rubles; ~ u--equipment duty factor; Of = 0.6Cfu 0.6--coefficient considering annual amortization deductions (50q) and repair exper.ditures (10~) 13. Expenditures on steam HS--average hourly steam consumption per unit of equipment, ton/hour; ~S = HSFP1�2PSu Fe--actual (calculated) annual oper- ating time fund of the equipment, hour ; - PS--price of 1 ton of steam, ruble; u--equipment duty factor; 1.2--coefficient considering.steam losses in network 14. Annual savings from the reduction H3,--total conditionally fixed ex- in product costs from a relative penditures for the given.type decline in the conditionally fixed of product calculated for the portion of shop expenditures annual program prior to the in- troduction of the measure, ES = HyKp - Hy(l+:~cc ) rubles; KP--coefficient reflecting the ratio of the planned annual output of the product N2 to the b~,se N1 prior to the introduction of the measure; K~~--coefficient expressing the rise in the conditionally fixed por- ' tion of the shop expenditures ' with a set pe~^entage of a rise in the produci:ion vollune 15. Amount of the conditionally fixed Oe--expenditures related to the oper- _ portion of shop.expenditures'for ation of the equipment according the base variation to the base variation for the annual output prior to introduc- Hy = OeYco tion of ineasure, rubles; - 105 ~ , FOR OFFICiAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY [continuation of Table 35~ a b Yco--ratio of the conditionally fixed - portion of the shop expenditures to the variable expenditures necessary for the development and use of the equi~anent, regard- less of the financing sources. Such expenditures include: a) the expendi- tures on scientific research and experiment~.l design, including the testing and adjustment of the experimental models (only in the variation for new equipment); b) expenditures on the acquisition, delivery, assembly, dis- assembly, technical preparation, ad~ustment and development of production; c) expenditures on the replenishment of working assets related to the de- velopment and use of new equipment; d) the cost of the necessary production areas and ~ther elements of fixed capital directly linked to production and the use of the new and base equipment; e) expenditures on technical meas- ures and units preventing the negative consequences of the influence of the use of the equipment on the environment, as well as on working conditions; f) a loss (with a plus sign) or profit (with a minus sign) from the produc- tion and sale of products during the production development period preced- ing the year being calculated. - In the calculations for the annual economic effect of the new equi.pment, the time factor is considered in those instances when the capital invest- ments are carried out over a number of years, as well as when the current production outlays, as a consequence of a change in the operating condi- tions at the site of the new equipment, change substantially over the years of operation. The introduction of new equipment and productian methods, as a rule, intro- duces changes into the various cost elements. Thus in mechanizin~ the pro- duction process, expenditures of live labor are reduced, and this lea,ds to a savings in the share of wages, the wage surpayments and expenditures on labor sa#'ety in product costs, but here expenditures on amortization, repair and upkeep of,equipment are increased. In calculating the economic efficiency of introducing new equipment; pro- duction methods, as well as the mechanization and automation of production, it is advisable to consider only the variable cost elements. If a compari- son is made of the manufacturing methods for products employed in differ- ent subdivisions, then it is essential to determine the full costs in one or the other subdivision. _ The calculation formulas for determining economic efficiency from the in- troduction of new equipment are given in Table 34, and the variable elements in the costs of the manufactured products are to be found in Table 35� . l06 FOR OFFICIAL USE OIVT~Y APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY CHAPT~R 6: STANDARDS AND RATES _ 52. A description of standards and rates. An essential condition for increasing the level of the scientific soundness of plans is the de- velopment of progressive technical and economic standards and rages at the enterprise. The efficient and complete use of a scientifically based system - of standards in the practical activities of the enterprises is one of the important elements for a planned rise in produ^tion efficiency. A standard is the maximum possible amount of the absolute consumption of raw products, materials, fuel, energy, live labor and so forth for manufac- turing a unit of product (or performing a job) of the established quality under the production conditions of the year being planned. A rate is an indicator characterizing the relative amount or degree of util- izing the implements and su'ojects.of labor, their conswnpti~or~ per unit of area, weight, vol~une arid so forth (for example, the use factor of material, ~ product output per m2 of production area, the percentage of losses, and so forth). - Progressive technical and economic standards and rates serve as the initial b~,sis in working out the tekhpromfinplan and the indicators for the economic efficiency of prod.uction at the enterprise. The technical and economic standaxds and rates are c.lassifie~ by a number of features: a)'in terms of the time of action of the planning period into - long-range, annual and current; b) in terms of the nature of distribution into intersectorial, sectorial and local; c) in terms of the nature of re- source utilization (raw products and basic materials, auxiliary materials, fuel and energy, and so forth); d) in terms of the ob~ject of norm setting into a unit of finished product, semifinished product, type of work or pro- duction stage; e) in terms of the scale of use into group and individual; _ f) in terms of the degree of detailing into specific standards or summary standards; g) in terms of the methods (procedures) of working out the standards and rates into calculation-analytical, experimental and report- statistical. 107 ~ FOR OFFICIAL USE ONLY in4~......,.... . . . ~ . . . . . . ~ . . . . . . . . ~ . . ~ . . � APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 - FOR OFFICIAL USE ONLY The most accurate and scientifically sound are the standards and rates ~ worked out by the calculation-analytical method. They are of a progressive nature, and they reflect the achievements of scientific and technical prog- ress, the best organization of production and labor, and the advanced ex- perience of the enterprises and production innovators. In an enterprise tekhpromfinplan, the standards and rates are put in a separate section. The normative base of the enterprises is systematically replaced considering the influence of the measures in the plan for increas- ing production efficiency. The enterprises work out and employ the following groups of standards and rates: Standards for raw products and materials; consumption standards for fuel and power resources; standards for the consumption of live labor; standards and rates for the use of equipment, the development of production capacity; calendar planning standards and rates; financial rates and stand- ards. At the enterprises, for the purpose of systematizing the standards and rates, for analyzing the dynamics of their chan~es, and for monitoring the observ- ance of the rates set in the plan, it is advisable to create a file of rates and standards or other similar types of normative specifications de- - pending upon the degree of automation and the use of computers in production ~ management. 53. Basic provisions in the elaboration of consumption standards for raw products, materials, fuel, thermal and electric power. The standards and rates for the consumption of raw products and materials, thermal and electric power are used for determining their demand in produc- tion for the period being planned, for improving economy, for organizing ~;he production process, as well as for calculating other indicators in the _ current and long-range enterprise plans.l The materials consumption standard consists of the following standard-setting _ elements: the weight of the material, production taastes and losses. The - weight sets the amount of material which physically comprises the finished article or is effectively used in the production process. The production wastes and losses are those expenditures of material resources which axe caused by the production process. The consumption standard for basic materials per unit of product should not include the following: Losses related to damaged products or a deviation 1See: "Statute on the Organization of Work and the Procedure for Setting Consumption Standards i'or Materials in the Shipbuilding Industry," 1972; "Instructions on Setting Consumption Standards for Materials in Basic Machine Building Production (Standard)," Moscow, Ekonomika, 1972. - 108 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY _ from the prescribed production process, operating conditions, and so forth; _ losses from tr~ansporting and storage; losses caused by deviations from the requirements for materials quality and grade; expenditures on the ad,justment and repair of equipment, on fittings, the manufacturing of automation and mechanization, on test models and other analogous t,ypes of expenditures. In terms of the purpose of the materials and their varying role in the pro- duction process and involvement in the formation of the finished product or ves~el, the standards are divided into consumption sta,ndards for basic - and auxiliary materials. The basic materials a,re directly constuned in - manufacturing the fir_ished product (the article or the vessel), and they physically comprise it, forming the material base. The auxiliary materials are used in the process of manufacturing the given article or the vessel - for supporting the normal production process. The basic initial data for calculating the individual consumption standards " of m~,terials per part, article or vessel are: a) the plan-established product range; b) the plan quotas for the average reduction in the consump- tion standards and the saving of materi~.ls; c) data from design and produc- tion specifications; d) indicators provided by the technical conditions for manufacturing the product; e) the approved rates for production wa~tes and los~es of materials considered in calculating the standards; f) indicators for the proportional consumption of materials per unit of surface, weight, leng~th, and so forth; g) the indicators of the plan for the introduction of. new equipment into production and the organizational and technical measures~ to save materials. ~ At the shipbuildin~ enterprises, the following standards are used: design, production and for the future period. ~ ~ ~ The design standards for the consumption of materials are worked out by the design organizations for the head vessels or machine building products us- ing the data of the technical plans. The production consumption standards for materials to build vessels, for the manufacturin~ of machines, mechanisms, equipment, instruments as well � as the consumption standards of materials for the foundry and metallur~ical shops are worked out by the plant production subdivisions as the blueprints and other technical specifications are received from the design organization. These are worked out on the basis of a part-by-part calculation of the con- sumption standards for materials, the charts and lists for laying out ma- terials, as well as a calculation for the proportional consumption stand- ' ards of those materials from which the parts are directly not manufactured _ (painting materials, glues, and so forth). Production consumption standards _ are not worked out for materials to be used on vessels or machine building products which are manufactured once. In working out the consumption standards for material resources in produc- tion for a long-range period, the initial data include: The quotas for the long-range period for saving material resources and reducing the consumption l09 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY standards of materials in production as sei:~ by the dir�.:ctives for compila.ng the long-range plan, proceeding from.the act.ievements and forecasts in the development of science and technology; indicators for the plan of ineasures to save material resources with a distribution in terms of specific areas and years of the long-range period with an indication of the volume of measures to be introduced and the amount of savings in materials in produc- ing the planned product for the niinistry in achieving the fulfillment of the quotas stipulated by the directives; the product range of the national economic plan over the long-range period as set in accord with the Union- wide classifier of industrial and agricultural products; +he production volumes of the corresponding product for years of the long-range period; the base consumption standards for material resources in producing the corresponding product for the year preceding the start of the long-range period. For a tekhpromfinplan, consumption standards for the means of labor, live labor as well as ma.terial and other resources should be worked out and ap- proved at an enterprise. 54. Rates and standards for the means of labor. All means of labor at an enterprise, dPpending upon the purpose and nature of their use in the production process, are divided into active and passive. The active portion includes transfer devices, power machines and equipment, operating machines and equipment, metering and control devices and assemblies, means of transport, tools, fittings and production supplies. The passive portion includes predominantly the production buildings and installations. The ratio between these parts is of important econo:~ic significance. The higher the proportional amount of the active portion in the fixed productive capi- - tal the higher the indicators for the efficiency of their use, and conse- quently, production efficiency as a whole. The setting of standards for the means of labor consists in working out standards and rates for the demand for equipment, its use and repair. The standards and rates for the demand for equipment are worked out for deter- mining the fleet of equipment for basic production, for general use and for auxiliary-service production. The availability of the designated standards and norrns is essential for establishing the planned production voltunes for the enterprise and its production subdivisions, as well as the degree to whic~ the current production capacity is utilized. The standards and rates at an enterprise are worked out in accord with the current sectorial procedural ancl instructional materials. r The active portion of the means of labor is given norms for the following groups: a) transfer devices; b) power machines ana equipment; c) working machines and equipment; d) metering and control devices and instruments; e) means of transport; f) tools and fittings; g) production and office supplies and inventory. 110 FOR OFFICIAL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 F~R OFFICIAL USE ONLY For all the listed means of labor, service rates, operating conditions and r�epair conditions are worked out. These are essential for setting the amount and de6ree of utilizing capacity ~.n the production subdivisic+ns and as a whole for the enterprise. This, in turn,�contribu~es to the more ac- curate establishing of the product production volumes in each planned _ period. 55� The setting of standards and rates for live labor. The standards and rates for the expenditures of live labor are essential for setting the growth rates of labor productivity and for determining the re- quired number oi employees and the wa.ge funds. They stlould reflect the achievements of scientific and technical progress, advanced experience of the production innovators (at related enterprises), as well as progressive and methods for organizing production and labor. _ For setting the standards for the expenditures of live labor, the following are used: time rates, service or manning rates and employee rates. T2me rates are a calculated amount of time expenditures needed for perform- ing individual elements of a job (operations) with the most rational organ- izational and technical production conditions. These are worked out for Eypes of expenditures: Rates of basic (production) times, auxiliaxy time for ser~vicing a, work area, rest and personal needs, and preparatory- concluding time. A manning standard is the stipulated quanti.ty of equipment, units, devices, area, and so forth which during a work shift or month should be served by one ,~rorker or group of workers. Basically the manning standards are set for various categories of auxiliary workers (the manning standard for units, _ a unit of equipment, area cleaned, and so forth). ~ The etrrploz~ee~ raf,e is the regulated number of employees necessary for carry- ing ou~; a unit of the voltune of work or an individual function. The em- ployee standards are used for determining the number of workers for manning the equipment, work areas, units of materials handling equipment, and so forth, or in determining labor expenditures for the professions and special- ties, the groups and types of work, and certain functions on a shop scale a.nd for the enterprise as a whole, considering the established amount of wo~k and the rational organizational and technical production conditions. The time standards and rates, depending upon the sphere of use, are divided into: intersectorial, sectorial and local (plant). The intersectorial standards are designed for setting standards for labor at enterprises of the various industrial sectors. The sectorial rates are usea for setting labor standards for all enterprises or for groups of enterprises comprising one sector. As a rule they are worked. out b~ the sectorial scientific research institutes and organizations. 111 FOR OFFICIAL USE ONLY ' APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Table 36 Basic Dependences Between Time and Output Standards . and Their Change Indicator Symbol Initial data Calculation Formula Output standard, Ko Normed hours, Tm T l~~ ~ Actually w~rked hours Ko = m T Ta f Reworking of R Percentage of output R=~_ 100 standards, % I{o Rise in output ~ P Percentage of rigid P_ Y100 standards, ~ standards Y 100 - Y' Old time standard No N 100 New time standard Nn P= N - 100 n Rigid time Y Percentage of rise in Ko100 standards (q of output standards Ko Y 100 +ICo' time saved Old time standard No Nn100 New time standard Nn Y= 100 - N 0 Fulfillment of Kn Percentage of output standards with of old standards Ko Ko100 old productivity Percentage of in- Kn = 100 + R crease in standards R Old time standard No New time standard Nn Percent of hardening 100 - Y time standard Y Nn - N� 100 Old time standard No N 100 Percentage of in- Nn = o 100 + R creasing output standard R The local (plant) time rates are worked out at the enterprise by the plant - scientific research subdivisions and services. These are used only at the _ given enterprise considering the specific production conditions. 112 ' FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY On the basis of the established rates, ti.me standards and output standards _ ar e calculated, and the labor intensiveness of manufacturing a unit of product is determined. In shipbuilding the most promising would re the method of technical rate and standard setting using detail plans on the basis of consolidated rates.2 The basic dependences between the time standards, the output standards and their change are given in Table 36. 56. Rates for the organization of production and labor. An essential condition for improving and raising the level of internal plant _ planning is the creation of rates and standards for the organization of the production process at the enterprise. Among the most important rates for the organization of the production process are the calendar planning rates, and the quality of their elaboration largely determines the degree of usi~g fixed and working capital, the growth rate of labor productivity and the decline in product costs. The composition of the calendar planning rates depends upon the type of production organization (Table 37). Table 37 Areas of Using Calendar Planning Rates Depending Upon Type of Production Indicators Type of Production Duration of production cycle In individual, sma~l-series, series and - large-series production Incomplete production In individual and small-series produc- tion Calendar lead for production stages In individual and small-series produc- tion Pace of building a series of ships In series production Size of output batch, output of In series and large-series production products and articles Periodicity of repeat of batch of In series and large-series production parts or articles Inventories of parts and articles In large-series and mass production Pace of assembly line In mass production 2See: R. N. Gordon, "Novyye Printsipy Tekhnicheskogo Normirovaniya v Sudostroyenii" [New Principles in Technical Rate a,nd Standard Setting in Shipbuilding], Leningrad, Sudostroyeniye, 1973� 113 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2047102/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY In shipbuilding, with its individual and small-series type of production, the most widely found calendar planning rates are: The duration of the production cycle for building the vessel; the volumes of incomplete produc- tion; the calendar lead for production stages; planning and accounting units (PUYe), and other data. The building pace of the vessel is calculated for estimates in rY~ythmical series production of vessels as a calendar planning rate. The duration of the production eycZe is the calendar period of time from the start of working the metal until the full completion of building the _ vessel and its delivery to the client. The production cycle for building a vessel is determined by the duration of carrying out the basic leading ~obs in all stages of building it, and in shipbuilding is measured in working days. Other ,jobs which are carried out along with the leading ones in building a vessel do not influence the overall shipbuilding cycle, and are not considered in determining it. Here it is essential to provide the maximum possible parallel execution of the ~obs. Calculating the duration of the production cycle makes it possible to correctly determine the amount of leads and backlogs necessaxy for promptly putting the individual elements of the vessel into production for a11 stages of building it, and to compile a schedule for carrying out the ~obs for all the periods of buildi.ng the vessel, namely: Preparatory, unit, wa,ys, outfitting and delivery. The production cycle of the leading work D~ can be calculated using the following formula: tf . Dc = Pkfh , where tf--labor intensivenes~ of carrying out the leading work; p--number of workers in brigade simultaneously carrying out given ~ob; k~--planned coefficient for fulfilling the output standards; h--duration of work shift, hours. IncompZete production is the na.me given to the incomplete products which - axe in the production process or are awaiting making up at the warehouse. The quantity of such products in their physical units (pieces, sets, and so forth) is usually termed the stock, and its monetary expression is the incomplete production. The volume of incomplete production in individual and small-series production can be determined using schedules for the rise in total expenditures (in rubles) or labor expenditures (in norm-hours). 57� Standards and x~ates of financial resources. The standards and rates for financial resources are essential in.working out the finan- cial plan, the economic incentive funds and other financial and economic indicators. 11~+ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-00850R000200024409-8 FOR OFFICIAL USE ONLY For this they use the following rates and standards for financial resources: a) the payment rate for productive capital, fixed and rent payments, inter- est on bank credit (to the state bank and investment bank); b) deduction rates fbr ttie funds : Mr~terir~l incentive, s~ciocultural measurFS and hou; - ~ing construction, and production development; c).amortization deduction rates; d) deduction rates for the fund for the development of new equipment; e) aeduction rates for the bor.us fund for creating and introducing new equipment and the rates for determining the a.mounts of bonuses far inven- tions and rationalization measures; f) deduction rates for the reserve of th~ ministry for providing financial aid to the enterprises; g) profit and profitability rates used in setting wholesale prices, and profitability rates used in determining profit deductions for the incentive funds; h) turnover tax rates; i) rates for own working capital. 58. The organization of work in elaborating rates and standards at a shipbuilding enterprise. Under the conditions of a further deep- ening of the scientific and technical revolution, it is essential to see to it that the standards most fu11y reflect the achievements of scient~fic - and technical progress. Al1 the appropriate technical, economic and production services at an enter- prise should be involved in developing the standards and rates and in re- - vising them. Table 38 shows the relationship of the enterprise rate and standard base witti the technical and economic indicators calculated using the correspond- in~ rates and standards. The continuous improvement in equipment and production methods and the in- _ troduction of new methods for the organization of labor and management have led to the necessity of a systematic revision of the rates and standards. In this regard the rate and standard base should be dynamic, although stable for the corresponding planning periods. The work involved in preparing the rates and standards for revision at enterprises and or~anizations should be carried out systematically durin~ the year. Changes in the approved draft standards for the constunption of material resources are made by the design bureaus and design institutes, while changes are made by the manufacturing plants in the production standards. _ The designers, after gaining approval of the changes from the corresponding or~;anizations in the established procedure put out notifications which are issued to the plants no later than 5 days after agreement. The notifica- tions s~;ipulate the dates for introducing the changes, the delivery dates and the number of the vessels and products for which they are to be intro- - duced. The designers append to the notification a corrected list of the material consumption standards for the vessel or article. . 115 - FOR OFFICIAL USE ONLY ;i ' ~l . : APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Table 38 - Relationship of Rates and Standards with Indicators of Enterprise Tekhpromfinplan Those Responsible Rates and Standards ~'ea of Using for Working Out Rates and Standards Corresponding - Rates and Standards Rates and standards for = consumption of materiaZs, fueZ, thermaZ and e Zec- - tric power _ Consumption rate for raw Plan for material and Bureau (sector) for ~ products and basic materi- technical supply material rates - als per unit of product Planning costings for (BMN) (PUYe) individual product type Consumption standards for Plan of material and BMN ' auxiliaxy materials, fu~l, technical supply thermal and electric power Estimates of shop ex- for production needs penditures and expendi- ~ tures on maintenance and operation of equip- ment Co~sumption standaxds of Plan of material- Department of ~ materials for repair and technical supply and chief inechanical operating needs equipment repairs. engineer (OGM) Estimate of expendi- tures for upkeep and operation of equipment Consumption standards for Fuel and energy OGM and chief fuel and electric power for ba~ances power engineer ~enerating various types of Estimate of expendi- (OGE) energy in the auxiliary shops tures for shops in auxiliary production , Consumption standards of Estimates of shop and OGM and OGE fuel and electric power for general plant expendi- internal needs tures and auxiliary production Consumption standards for Plan Por material and Tool department materials used in manufactur- technical supply, plan (OI) ing tools and special fit- costings tings 1~6 _ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ~ ' [continuation of Table 38] Those Responsible lZ~,tes r~.rid St~,ndar. ds Area of U3in~; for Work:in~r Out Rates and Standards ~Corresponding Rates and Standards Efficiency (EFF) Fuel balance OGM and OGE Power coefficient Balance of electric OGE ' power Norms and standards for means of Zabor Equipment ~oad factor Calculation of produc- Department of chief " tion capacity production engineer (OGT) Shift factor for operation Same Same of equipment Return on investment, product Calculation of produc- Production plannin~ output per ruble of fixed pro- tion capacity department (PPO) = ductive capital Plan for increasing production efficiency Pz�oduct output per m of Plan for raising pro- PPO . area duction efficiency Standards for productivity Same OGT and operating conditions of equipment Repair and operating rates Same ~ ~OGM and OGE and standards ~ Rates and standards for Zive Zabor Labor intensiveness stand- Labor intensiveness Department for ards for parts, assemblies, of production program organization of sections, PUYe and products in labor and wage plan labor and wages ~ Planning costings of (OOTiZP) individual products Av~,ilable working time fund Number of workers in OOTiZP of one worker rated ~obs Planned coefficient for ful- Same OOTiZP filling standards 117 FOR OFFICIAL USE ONLY . APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ~ [continuation of Table 38] Those Responsible Rates and Standards ~'ea of Usin~ for Working Out Rates and standards Corresponding Ra~es and Standards Equipment manning standards Number of workers in OOTiZP, OGT, OGM P ~obs without standards and OGE Staff schedules for engi- Number and wage fund OOTiZP neers, technicians and white of engineers, techni- collar personnel cians and white collar ' personnel Consumption standards for Wage fund of piece OOTiZP wages of workers for pieces, workers _ assemblies, sections, PUYe and articles Standards for planned sur- Wage funds for em- OOTiZP payments in percent of direct ployee categories wages Rates and standards for or- Production plan in PPO ganization of production product sales, calcu- process lation or production capacity Ra,tes of financial resources Economic incentive Pinancial bod:ies funds. Financial plan " In revising the standards for the following year, the plants are obliged to ensure the fulfillment of the percentages of their average reduction as set by the superior organizations. For this first of all the consumption standards for materials are revised for those vessels and articles for which the greatest savings is possible, as well as for the scarcest materi- als. In the first quarter of the current year, the plants draw up the re- sults of this worl~ for the current period in the form of a statement of the demand calculation, the consumption and saving standards for materials in product output, and approve standards for the consumption of materials for the vessel or product for the following year. In revising the produc- tion standards, all the changes should be considered which have been made in the plans and production processes accepted in the current year. All changes in the production standards should be fixed in all the normative documents used at the plant. For ensuring the planned work of increasing the output a.nd manning stand- ards (for the reduction in the time standards and employee rates) at t;~e 118 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000200020009-8 FOR OFFIC,IAL USE ONLY enterprises bef'ore the start of the planned year, calendar plans should be worked out for revising the current standards, and these plans are a com- ponent part of the tekhpromfinplan. The calendar plans are worked out on the basis of the measures planned for introduction in the area of raising production efficiency and ensuring the ft~lfillment. of the quotas for the growth of labor productivity set in the annual and five-year plans. The _ - calendar plan for the revision of standards is brought up for discussion by the permanent production meeting or worker assembly, and considering their recommendations is approved by the enterprise leader with the agreement of - the trade union committee. The employees should be notified of the revised output, time and mannin~ standards and rates no later than 2 weeks before their introduction.3 In accord with the measures stipulated in the tekhpromfinplan to accelerate . scientific and technical progress, to raise production efficiency and to save live and embodied labor in the period being planned a revision is also carried out in the rates of the means of labor and the calendar planning rates. 3See: EKONOMICHESKAYA GAZETA, No ~+9, 1975, p 1~+. 11g FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY CHAPTER 7: CAPITAL CONSTRUCTION 59� Planning capital construction. The capital construction plan at a shipbuilding enterprise is a component part of the capital construction plan of the ministry and one of the basic sections of a tekhpromfinplan. The basic form of capital construction plannin~ is the five-year plan, the . quotas of which are concretized and ad~usted in the cu~rent annual capital construction plans (of the given five-year plan) considering the require- ments of production and changes in resources. In working out the capital _ construction plan, consideration is given to the maximum possible use of the existing fixed productive capital and capacity. Capital investments i~,re planned in those areas where the existing fixed capital and capacity ~ � d~~~not ensure the fulfillment of the tasks confronting the enterprise. . The~:~olan quotas should be coordinated with the financial and material re- sources and with the delivery dates for the preassembled equipment. The i:~itial base for working out capital construction includes: a) the long- range pian for eriterprise development and the quotas for the development of new product types; b) the control figures of the production plan; c) data from an analysis of the balance and indicators for the use and develo~�nent of existing productive capital and capacity; d) the plan for the technical development arid organization of production; e) the presence of design and estimate specification; f) technical and economic background studies for the construction of new objects and the reconstruction of existing produc- tion shops and sections; g) data on the existing and planned stocks and in- complete construction. The technical and economic background study is the basic condition for in- cluding various projects (construction, reconstruction or rennovation) in �the capital.construction plan. In terms of the specific features, the capi- tal construction pro,jects are divided into industrial construction, housing, cultural-servi:ce, administrative, hydraulic engineering and transport.. In building~of one sort or another, the capital investment voltune includes the value of the following: a) constrnction and installation work; b) pro- duction, power and materials handling equipment; c) tools and supplies ~ 120 FOR OFFICIAL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000200020009-8 ~ FOR OFFICIAL USE ONLY included as part of fixed capital; d) design and research work; e) other work, acquisitions and expenditures provided in the estimate or title list. 'I'he ratio between tl~ese expenditures forms the production structure of ttie ca~:i.t~.l irivc~:~i~Tn~ntc~. An improvement in the capital investment producti.an - structure rise in the proportional amount of equipment) is a most'impor- tant reserve for increasing their economic efficiency and an important fac- tor in raising the efficiency of social production. The elaboratic:n of the capital construction plan must be started by measures and jobs carri,:ed out from the production development fund, the fund for~ sociocultural'measures and housing construction, and then bank credits and _ other noncentralized capital investment sources. Here first of all the plan is drawn up for completing fixed capital and production capacity by measures in the plan for the technical development and organization of pro- duction. The individual sections of the capital construction plan are: a) the plan for the completion of fixed capital and production capacity; b) the title lists which define the direction ~.nd dates for beginning and completing the construction of individual pro,jects. The aesign capacity is put into operation on the dates corresponding to the standards for the period of its development as approved by the USSR Gosplan on 17 October 1g69, in accord with the Decree of the USSR Council of Min- ' isters of November 1g6E [66]. Capital construction at ~the enterprises and associations is carried out by two methods: contractual and direct labor. The basic one is the contrac- tual method of construction whereby the construction and installation ~obs are performed by specialized construction and installation organizations on the basis of contracts concluded with the client. The direct labor . method of construction is carried out by the enterprise without involving contractual organizations. It is used at operating enterprises in build- - ing small projects, and is.carried out under the leadership of the capital - construction department. The basic indicators in the capital construction plan are: a) the rise in production capacity at existing production associations and enterprises , from their technical reequipping.and .the carrying out of organiza~cional - and technical measures; b) the completion of fixed productive and nonpro- ductive capital; c) the volume of capital investments and construction- installation work; d) the volume of incomplete canstruction at the end of th~ five-year plan (year). The indicators of the capital construction plan are determined on the basis of the pro~ect,title lists which have been worked out and approved in the proper procedure. ! At existing enterprises., a unified capital investment plan is drawn up and its financing and crediting are carried out solely through the institutions of the USSR Stroybank, regardless~of the financial sources. 121 ~ . FOR OFFICIAL USE ONLY , � . , . APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY � 60. A title list is a specific list giving the names of the pro,jects to be included in the capital construction plan. The title list reflects: The dates for the beginning and completion of construction on the pro,ject; estimated ualue, the volume of construction and installation work; the quota for completing production capacity and fixed capital; the yearly volumes - of work for the entire construction period. The approved title list for capital construction is the basic document for opening up construction financ- ing and for concluding contracts with a contracting construction organization and the equipment suppliers. Recently each year on the basis of the approved title lists, for each pro,j- - ect internal pro,ject title lists have been compiled for concretizing the plan quotas for the given plan period. The Decree of the USSR Council of Ministers, No 643, of 10 July 196? estab- lished the procedure for approving the title lists of construction sites.l According to this decree, the title lists for newly commenced construction projects for facilities with an estimated value of 2.5 million rubles and above should be approved by the USSR Council of Ministers upon proposal of the USSR Gosplan; projects from 1 to 2.5 million are approved by the USSR ministries and departments and the Union republic councils of ministers; from 1 million rubles and lower, by the procedure set by the USSR ministries and departments and by the Union republic councils of ministers. 61. Expenditures related to reconstruction and technical re- equipping of existing enterprises.2 The reconstzruction of an exist- ing enterprise includes: The complete or partial reequipping and reorgan- ization of production carried out under a single plan with the replacement of obsolete and physically worn out equipment, the mechanizatior and auto- mation of production, and the construction of new shops and pr~~ects. The technicaZ reequipping of an existing enterprise includes: The carrying _ out of a range of ineasures (without an expansion of the existing area) in i accord with the enterprise's (association's) plan for technical development and ~he organization of production to raise the technical level of the in- dividual production areas up to modern requirements by introducing new equip- ment and production methods, by mechanizing and automating the production processes, by improving the organization and structure of production and the general plant system, as well~as other organizational and tecYinical measures aimed at bringing about an increase in product, an improvement in 1rSbornik Postanovleniy Pravitel'stva SSSR," No 17, 1967, Article 119. 2See: "Provisional Instructions on the Procedure for Financing and Long- Term Crediting of Capital Investments for Technical Reequipping and Re- construction of Existing Enterprises," Stroybank SSSR, Moscow, 1977. 122 FOR OFFICIAT~ USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000200020009-8 , FOR OFFICIAL USE ONLY . . its quality, a rise in productivity, an improvement in the conditions f~r the orfr~.nization of labor, and so forth. Such expenditures also include: Expenditures on the acquisition, manufactur- ing and installation~of new equipment, machines and mechanisms; the reequip- ping and adapting of production areas needed to carry out measures to intro- duce new equipment; to convert boiler and other units from solid.fuel to liquid and gas, including expenditures on connecting them to the main gas . lines, i;he heat lines and power transmission lines; to improve and modernize the ventilating systems, to employ radio, telephone and television in con- trolling production, as well as other measures related to.the scientific ~ . organization of labor; to reequip special means of transport; to replace fixed capital, to purchase freight transport designed for production pur- poses, as well as other measures to develop production (ineluding for organ- ' izing the production of consumer goods) without new construction; to inten- ~ sify the production processes (the use of higher speeds, voltages, pressures, temperatures and so forth); for the additional installation of new equipmer~t at existing production areas; to improve the quality and composition of raw products, materials and fuel; to expand cooperation and raise the level of production specialization; to increase the equipment shift factor. 62. Financin~ capital investments. The financing and crediting of capita.l investrnents for all national economic sectors (with the exception of the Ministry of Agriculture, the Ministry of Reclamation and Water Re- sources, the State Forestry Committee of the USSR Council of Ministers, USSR Sel'khoztekhnika and other organizations the financing and crediting of which are carried out by institutions of the USSR Gosbank) for recon- struction and technical reequipping of existing enterprises are carried out. by the USSR Stroybank within the limits of the funds provided by the finan- cia~ plans of the enterprises (organizations) and the cre.dit plans af the local USSR Stroybank institutions. Financing of capital investments is carried out: 1) P'or the technical reequipping and reconstruction of existing enterprises (without construction and expansion of the existing basic production shops), including expenditures of future years, primarily from the money of the pro- duction development fund, the enterprise fund, and money earmarked for con- struction of production pro,jer_ts in other economic incentive funds; as well as fron enterprise profits and amortization deductions earmarked for the com- plete replacement of fixed capital and for the lacking part, from bank credits; 2j For the technical reequipping and reconstruction of the planned-loss and . low-profit enterprises, in addition to the fund for the development of pro- � duction, it is also possible to use money from amortization deductions ear- marked for the complete replacement of fixed capital, profit and allocations from the state budget. Here the state budget allocations can be used.for reconstruction and technical reequipping only with permission from the USSR. Council of Ministers; 123 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY 3) For acquiring equipment for a replacement to be carried out under the f capital construction plan for maintaining existing capacity, as well as equip- ment not included in the construction estimates (railroad rolling stock, air- planes, helicopters, maritime and river fleet vessels, motor vehicles, buses, motor transport road equipment, streetcars, construction machinery, - and so forth) from the production development fund, the enterprise fund and money earmarked for construction of production pro~ects in other economic " incentive funds, a portion of profits and amortization deductions for the complete replacement of fixed capital, and with a shortage, using money of the state budget. The financing sources for capital investments for the technical reequipping and reconstruction of existing enterprises are provided in the financing plans (forms No 12, 5). Credit for technical reequipping is provided for a period up to 6 years from the time the first loan is granted under the condition of the repayment of the expenditures within the stipulated time. The financing and crediting of expenditures on the technical reequipping and reconstruction of enterprises are carried out under the condition of the incorporation of the designated expenditures in the capital construction 9 plan and the title lists which are provided with the properly approved tech- nical specifications within the limits of the standard (planned) times and the approved estimated cost. The overall need for credit is determined as the difference between the estimated cost of expenditures for� carrying out - all the measures related to the technical reequipping and reconstruction of operating enterprises and the total of their own assets earmarked for the given financing. Crediting is carried out on the basis of credit agreements which set the conditions for granting the credit, the efficiency of the ex- - penditures to be credited, the sources and dates of retiring the credit, and the responsibility of the parties. The financing of capital investments which have been allocated to existing enterprise~ for the construction of _ nonproduction projects is carried out in the generally established procedure. A credit obtained for the construction of new enterprises or the expansion of existing ones under the centralized state financial capital investment plan i.s repaid from the prof.it and a portion of the amortization deductions going into the full replacement of fixed capital. The credit extended for expenditures on the reconstruction and technical re- equipping of operating enterprises is repaid from money of the production development fund. The credit issued for expenditures to increase the output of consumer goods is repaid irom money of the production development fund, and with an insufficiency of this fund, from the profits (savings) and 50 percent of the total turnover tax received from the sale of the designated - goods. 124 FOR OFFICIAL USE ONLY - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY � 63. Crediting expenditures on the technical reequipping and re- - construction of existing enterprises. The financing and crediting of expenditures on the technical reequipping and reconstruction of existing en- terprises, regardless of the sources, are carried out by the USSR Stroybank on the basis of the properly approved capital construction plans (form No 7) and the financing of capital investments (form No 5). For opening the financing and crediting of expenditures on the above-indicated - purposes, the client enterprise submits to the financing bank the documents provided by the Rules Governing Capital Construction Contracts as well as a credit agreement worked out on the basis of the approved pro,ject technical and economic indicators. The capital construction plans of the enterprises and organizations (form N~ 7) which have been granted capital investments for technical reequipping or reconstruction indicate in a separate line the increase in production capacitf ar.d the volume of capital investments separately for "Technical Reequipping" or "Reconstruction," depending upon to what type of construc- tion the capital investments of the given enterprise are related. In those ~ - instances when the existing enterprises simultaneously are granted capital investments for expansion and for technical reequipping, the internal project title lists should give the expenditures separately with the state- ment "fc-r technical reequipping." The amount of c~redit for the year being planned is set by the client, pro- - ceeding from the capital investment projects considering the enterprise's own assets, the mobilization (immobilization) of the working assets and changes in the total constantly carried forward debt. T}ie basic portion of the credits goes on expenditures to introduce new equip- ment, mechan~zation and improvement in production methods, the replacement of eqiiipment, the automation of production processes, the modernization of eouipment and for carrying out other measures related to the technical im- provement and bettering of the production organization. !1 rank ci�edit is granted to organizations and enterprises with a shortage of money in the production development fund and under the condition of national economic advisability, economic efficiency and the repayment of the planned expenditures over the set limit crediting times, the providing of them with the necessary material and technical resources, capacity at contracting organizations and a labor force, and an additional amount of raw materials sufficient for the comple+e utilization of the new capacity and the marketing of the additional product. The corresponding data should te considered in working out the capital construction and financing plans. ~ The banking institutions grant credits for the technical reequipping and -reconstruction of existing enterprises on the basis of the approved capital investment plans and a credit agreement.between the parties, that is, the client (enterprise) and the institution of the USSR Stroybank. Appended to ' the petition for the obtaining of a credit are the estimate and financial 125 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY calculation (the summary estimate financial calculation), a calculation of the effectiveness of the measure being credited and the credit repayment date, and data on the allocated amount of own capital investments. fIere the dates for using the credits are figured from the moment of granting the first loan. The enterprises and organizations can be granted credits for workin~; out design and estimate specifications needed for carrying,out the tFChnical reequipping and reconstruction, as well as other measures related to the in- ti�oduction of new equipment, and the expansion and organization of consumer goods production. Loans for these purposes are granted with the permission of the leader of the corresponding Stroybank institution. In grantino the loans, they proceed from the total expenditures on carrying out the entire measure, including the cost of the design and research and this is determined - from a preliminary calculation compiled on the basis of consolidated measure- rnents, analogs or other indicators, regardless of whether these specifications are worked out by the borrower enterprise or an outside organization. The enterprises and organizations draw up and submit a calculation of the demand for credit to the corresponding Stroybank institutions for obtaining a credit on expenditures related to technical reequipping and construction and the expansion of consumer goods production. With the contract method of executing the work, the payments with the con- tracting organizations are made in accord with the construction financing rules. The loans are granted within the total amoun~ of the permitted credit. ~n'hen the work is performed by the direct labor method, the money for paying wages to workers employed in construction and installation work is provided above the wage fund approved for the enterprise, but not over 40 percent of the total expenditures on the measure being credited. In granting these funds, they proceed from the totals provided by the i'inancial estimate cal- culation. The calculation of the time for repaying the credit is drawn up by the en- terprises and organizations on the basis of the data of the efficiency cal- culations and the repayment of the credited measures. The fixed productive capital created from the money of the production development fund and the bank credit are freed from budget payments until the complete repayment of the credit. 64. The composition (structure) of capital investments in terms of the basic types of capital expenditures. The total volume of capital investments is: K = C~+Cm+Ct+Ci+Ck+Cp, where C~--the cost of all types of cons~ruction work; Cm--the cost of work related to equipment installation; Ct--the cost of production, power, materials handling, pump-compre'ssor ; and other equipment (both requiring and not requiring installation) ~ i26 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY stipulated in the construction (.reconstruction) estimates; Ci--the co:~t of tools and supplies included in the building (recon- struction) estimates and entered as fixed capital; - C~;--the cost of machinery and equipment not included in the estimate of the structures, if these machines (equipment) are acquired from capital irrvestmerits; ~ Cp--other capital work and expenditures (including expenditures on design-research and drilling work). ~ The volume (cost) of construction worY is: C~ = Ce+CSt+Cf+~PP+C,~+Cp+Cu+~h+Ca, ~ where Ce--expenditures on erection, expansion, reconstruction and rebuilding of permanent buildings and structures and the related work of the installation of reinforced concrete, metal, wooden and other str~ic- tural elements; Cst--the cost of sanitary-technical devices, water supply and sewage, the erection of installations for purifying industrial waste water and ~as and ash traps, the laying of li~hting wire, the buildin~ of gas arid heating networks, oil pipelines, product pipelines, gas lines, overhead and underground power transmission lines, c^~nmuni- cations lines, the building of bridges and quays,, roadwork, under wwter engineering, diver and other types of special work in con- struction, as well as the cost of the sanitary-technical equipment provided by the construction standards and rules (heatin~ boilers, boilers, radiators and heaters); Cf--eYpenditures on the construction of footings, foundations and support elements under equipment, the cladding and lining of - boilers, furnaces a,nd other units; ' C~p--expenditures on the development of sections, preparation and plan- ning of the construction territories, including the building up of the territories and the related demolition of structures, felling of' timber, uprooting of stumps, drainage, vertical plannin~, and so forth; C~--the cost of landscaping and other amenities on the developed ter- ritory as well as settlements and towns; , Cp--expenditures on the alignment of the ground, land reclamation (irrigation and drainage), the building of hothouses, forcing frames, bottom-deepening, bank-retaining and swamp preparation work, except track repair work, work on maintaining the depths on navigable rivers, canals and port waters, ship repair yards and fleet repair and operating bases, as well as for draining swamps - at existing peat enterprises; Cu--expenditures on mining work (except work carried out from operat- ing expenditures of existing enterprises); ~ Ch--expenditures on hydrological work (drilling, pit sampling, pump- ing out of water and so forth) involved with the construction of buildings and installations; - 127 . FOR OFFICIAL USE ONLY , : ~ , . ~ ~ I APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY Ca--additional expenditures related to carrying out construction work durin~ the wintertime, wage surpayments (set for individual re- gions of the country, as well as for individual sectors and con- struction projects for ~obs carried out under alpine conditions as stipulated in the uniform estimates), and other types of con- struction work and expenditures not li.sted above and prov:ided for in the construction standards and rules. The volume (cost) of work related to the installation of equipment is: Cm = Cai + Chu + CiS + Cip + Caw~ where Cai--the cost of the assembly and installation of production, power, materials handling and other equipment, including the testing of installation quality; Chu--the cost of de~rices for delivery to the equipment (delivery of water, air, steam, cooling fluids, the laying, suspending and in- - stallation of cables, electric wires and communications wires) in the amounts stipulated by the price lists; ~ Cis--the cost of the installation and installment of service areas, ladders and other metal structural elements which are related to the equipment; - Cip--the cost of insulating and painting the installed equipment and pipeline; Caj,T---additional expenditures related to carrying out installation work in wintertime. P1ot included in the amount of installation work is the following: a) expend- itures on disassembly and assembly of equipment made during starting-up and adjustment work; b) work related to assembly and disassembly of construction machinery and mechanisms. 65. Determining the economic effectiveness of capital investments. The economic effectiveness of capital investments is determined in accord with the standard procedure for determining the economic effectiveness of capitsl investm ents [96] and the sectorial procedur~,l instructions. 128 FOR OFFICIAL"USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-00850R000200024409-8 FOR OFFICIAL USE ONLY CHAPTER S: FIXED CAPITAL AND PRODUCTION CAPACITY OF A SHIPBUILDING ~ ENTERPRISE 66. Fixed capital and its classification. One of the~ most important tasks in improving production efficiency is the most rational use of fixed capital and pr~duction capacity at the enterprises. Fixed capital in the national economy is divided into productive and non- productive. The productive fixed capital includes that fixed capital which is directly in the sphere of material production, it is operated for an ex- tended time, therein maintaining its physical form, and transfers its value to the manufactured product piecemeal, as it wears out. The nonproductive industrial fixed capital includes the installations for nonproduction purposes (housing, nurseries and creches, schools, hospitals and other public health and cultural-service facilities) which are run by the in.dustrial enterprises and have an indirect effect upon the production processes. ~ The fixed productive capital of a shipbuilding enterprise comprises an im- portant pl~.ce in its chartered capital, and its proportional amount is about 60 percent. The classification of fixed capital of the shipbuilding enterprises en- visages its dividing into the following groups: I. Buildings: of the basic, auxiliary and service shops, as well as the ehterprise administrative buildings. II.~ Installations: production (ways, dxy and floating docks, floating docks, slipways, slips, quays and~outfitting basins), hydraulic engineering (canals, dams, rising towers), transport (roads, bridges and track), and so forth. Here an inventory item is considered to be each individual struc- tL:re with all the devices comprising a.single whole with it, for example, a ' ~ dock with the materials handling equipment, and so ~ortYi. : ~ 129 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ~ FOR OFFICIAL USE ONLY III. Transmission devices: power networks, heating networks, gas networks, _ the distribution networks of water mains, water towers, steam lines, trans- missions, and so forth. TV. 1'owcr. mrlchit~c:, ~nd equi~ment: ste~,m en~;ines, i;urbinc^, internnl corn- bustion en~iries, electric motors, electr7c machines, i;ractor.s and ~elf- propelled chassis, starters, measuring and power transformers, converters, and other power equipment. _ V. Working machines and equipment: machines, devices and equipment used for a mechanical, technical or chemical effect on the sub~ect of labor and _ its movement through the process of creating the production-type product or service (metalworki:lg and woodworking lathes, forging-stamping equipment, ~ electrical welding equipment, materials handling equipment, conveyors, ~ cranes, attachments and tools which are part of the given machine, and other basic and auxiliary equipment). VI. Metering and recording devices and laboratory equipment: instruments and devices designed for all sorts of ineasurements, controlling the parame- ters of production processes, as well as for testing materials, carrying out experiments and research (ammeters, water flow meters, indicators, manome- ters,.chronometers, automatic control panels, microscopes, stabilizers, and so forth). VII. Means of transport: all types of ineans of transport used for moving people and freight, including the railroad rolling stock, motor vehicles and vessels, as well as production transport (internal combustion engine and battery operated pla:Zt trucks, carts, motorcycles, scooters, and so forth). VIII. Tools: mechanized and unmechanized general tools (cutting, pressure, impact, and so forth) with a service life of over 1 year. IX. Producti.on and office supplies. Production supplies include: produc- tion artic],es which are used to support operations during work (ber_~hes, trestles); equipment providing labor safety (group machinery guards, and so forth); containers for storing liquid and loose articles (barrels, tanks, vats and so forth); regular crating, technical articles which could be con- sidered as working machines (for example, frames, copiers, and so forth). Office supplies: office articles such as office furniture, racks, cabinets, sofas, desks, chairs, fireproof cabinets and boxes, typewriters, duplicating - equipment, beds, rugs, curtains, as well as firefighting equipment (hand sprayers, standpipes, ladders, and so forth). X. Other fixed capital: library holdings (regardless of the value of in- dividual books), and capital nxpenditures on least fixed capital accounted for on the balance sheet of the lessor. Each of the ten groups of the given classification, in turn, is divided into subgroups which consist of more uniform fixed capital with approximately the same service lives, amortization rates and operating conditions. 130 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 _ FOR OFFICIAL USE ONLY . Not all the elements of fixed capital play the sarae role in the production - process. The work.ing machines and equipment, the tools, the metering and ~ control devices and instruments, and the technical installations take a _ direct part in the production process, they directly influence the incre~se of product outp~.tt and for this reason are considered as the active portion of fixed capit~Ll. The other e].ements of fixed capital (producti.on build- in~*s and office sizpplies) have only an indirect influence upon product out- put, and for this reason they arz termed the passive portion of fixed capi- t al . 67. An evalua~ion oi' fixed capital. Por the purposes of accounting _ and planning the reproduction of fixed productive capital, physical and mone- tary indicators are used for evaluating the fixed capital. A physical evalu- ation of fixed capital (in units and sets) is required for gaining a notion of its physical state, as well as for calculating the production capacity of tlie shipbuilding enterpr'ise, the operation of the capital, the organization - of repairs,.th~ replacing of worn out fixed capital, and the drawing up of the equigment balance. A monetary evaluation of the capital is required for considering its dynamics, for planning ex_panded reproduction, for establishing weax, for calculating amortization, for determining product costs and profitability of production, as weJ_1 as for carryin~ out economic accountability. General plannin~ and accounting of enterprise fixed capital as a whole are carried out basically in monetary terms. There are two methods for a mone- tary Evaluation of fixed capital: in terms of initial value, the replace- rnent value and in terms of the initial (or replaeement) value minus wear. The in~~tiaZ (baZance sheet) vaZue reflects the amount of actual expendi- tures on the creation of fixed capital,.construction, and the acc~uisition of equipmen~t, incllading its delivery, installation and erection. Proceed- ing from this value, the enterprises make deductions to the budget in the f'orm of a payment for fiYed productive capital, they figure the ~nortiza- tion totals, the profitability level, the return on investment and other ii?dic~,tors. ~ ~ InitiaZ vaZue minus wear reflects the value of the fixed capital which has not yet been trar.sferred to the manufactured product. This is less than the �ull initial val.ue by the amount of the wear on the fixed capital and is oiten termed the residual value. The method of evaluating f~.xed capital in terms of the initial (replacement) value minus wear is usea for setting the degree of wear and for determining the amount of the fixed capital value which still has not been transferred to the new product. ~ These two types of the monetary evaluation impede the comparability of data on fixed capital dynamics, since prices for equipment and the c:ost of con- struction change, while the fixed capital acquired (or built) in various years is expressed in mixed prices. 131 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ~ . FOR OFFICIAL USE ONLY " Uniformity in ~.n evaluation o~ the sarrte elements of fixed capital created in different ycars can be ini;rociuced by assessing the capital in terms of ' replacemen~t value. The fuZZ repZacement vaZue is the value of reproducing the fixed capital under new production conditions (of the given year). An evaluation of fixed capital in terms of replacement cost is a complicated and labor intensive process requiring sig_~ificant outlays of time and money for revaluing all the fixed capital elements. Fixed capital is revalued periodically upon a governmental decree. In accord with the Decree of the USSR Council of Ministers approved on 7 April 1969, from 1 August through 31 December 1971, a regular revaluation of fixed capital was carried out at the state self-financing enterprises and - organizations, and this determined the degree of capital wear as of 1 January 1.972 . 68. Wear and amortization of fixed capital. Fixed capital located at enterprises is gradually worn out. Physical wear occurs as a result of using fixed capital in the production process as well as in the period of its idleness. Idle fixec' capital wears out if it is exposed to natural processes (atmospheric phenomena, and because of this corrosion of inetal parts, the buckling and rotting of wooden parts, and so forth). This type of physical wear causes great losses. As for operating fixed capital, its phfsical wear depends upon a number of factors, including upon the quality of the fixed capital (the materials from which it is manufactured, upon the technical progressiveness of the design, the quality of construction and installation), upon the load factor (the number of shifts and operating hours per day, the duration of work per year, the intensiveness of use in each unit oi working time), upon particular features of the production process and the degree of protecting the fixed capital against the influerice of outside conditions, including against aggressive media (temperature, humidity, and so forth), upon the quality of maintenance (promptness of cleaning, lubricating, painting, the regularity and quality of repair), upon the skills of the workers and their attitude toward the fixed capital. The fixed capital, in being sub~jected to physical wear in the production - process, each year loses a portion of its value equal to that amount which has been transferred to the product manufactured during this year. For example, with an equipment service life of 10 years, after the second year - of its operation, the amount of wear will be 20 percent. This amount is determined by the following formula: Tp Wf = T 100, a where Wf--wear on fixed capital, percerit; Tf--actual period of operation of fixed capital, years; . _ Ta--standard service life (amortization period) of fixed capital, years. . 132 - ~ FOR OFFICIAL~USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY � Fixed capita,l undergoes not only physical wear but also obsolescence. Obso- - lescence consists in the fact that one or a,nother type of fixed capital (for. example, equipment) even before its complete wearing out is useless as a consequence of the development of new, more advanced similar elements, machines and equipment. Their use makes it possible to increase t}ie produc- tion volume, to raise labor productivity, to reduce the conswnption of oper- ating materials (fuel, electric power, lubricants and so forth), and in certain instances machine-processed basic materials as well, to reduce ex- penditures on the production of a unit of product and provide higher manufac- turing quality. Thus, the second form of wear occurs when the machine is technically obsolete and is replaced by a more advanced one. ~rlith this form of wear, in using obsolete equipment, more working time is lost in producing the same quantity of product. In practical terms the solving~of the problem of obsolescence consists in � carrying out organizational and economic measures. It is essential to use the machines and mechanisms with a ma,;sirc~um load in order to accelerate the return of their useful effect prior to the occurrence of aging. This is why it is so important to reduce the construction times of new pro,jects,.and to see to it that the produced machines are not Y:eld up at warehouses or in installation. Wear and amortization are not identical concepts. Amortization only in a monetary form expresses the wear of fixed capital. It may not coincide with the amount oi wear in individual intervals of the year, since the fixed capi- ta,l wears out unevenly, while amortization is calculated in even shares over the entire operating period. Amort2zation in socialist industry is the planned recovery of the value of fixed capital (as it wears out) by transferring this value to the manufac- tured product. It performs the following basic tasks: 1) makes it possible to determine the aggregate social production outlays. In this role on the enterprise scale amortization is essential for calculatin~ the volume and increase dynamics of net product; 2) in a general form it characterizes the de~ree of wear on fixed capital, and this is essential for planning the process of its reproduction; 3) it creates the monetary amortization fund ~ for replaci~:lg worn out means of labor and their major overhaul. The amount of value to be incoz�porated by amortization in the production costs represen~ts the amortizat2on deductions. Amortization deductions are made on the basis of established rates. The amortization rates are set for each type of fixed capital. They are determined by relating the total a.nnual amortization deductions to the value of the fixed capital, and they are expressed in percentages as is seen from the following formula: N = F 100, where N--annual amortization rate; 133 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY _ A--amount of amortization deductions per year; F--value (initial or replacement) of fixed capital. ~ Since the amount af amortization deductions over the year depends upon the initial value of the f~:sed capital at the moment of its acquisition, the pro- posed service life, the outlays on medium repairs and major overhaul over the entire amortization period, as well as upon the residual (liquidation) value of the fixed capital, hence the annual amortization rate is F+Rm-L N = F~ , ~ where Rm--expenditures on medium repair and major overhaul (including modern- ization) during service life of fixed capital; L--liquidation value of fixed capital taken out of operation; C--amortization period (service life) of fixed capital. From 1 January 1975, new standard amortization rates for fixed capital were introduced, and these were differentiated according to the types (elements) of fixed capital in accord with their different service lives. Uniform amortization rates were set for the corresponding groups of fixed capital - having an analogous purpose with relatively uniform service lives and ex- penditures on ma~jor overhauls. Each of these rates was divided, in turn, , into two parts: one was designed for the ma,jor overhaul of fixed capital, including equipment modernization and expenditures on medium repairs (if these existed) carried out with a periodicity of over 1 year, and the other was for the complete replacement of the fixed capital (for renewal). I'or such types of fixed capital as buildings, installations and transmission devices having an extended service life, the amortization rates were sig- nificantly lower than, for example, for machinery and equipment and means of transport which are a more active part of fixed capital. In the overall amortization rate for industrial fixed capital, there is a rather high pro- portional amount of amortization deductions going for major overhaul (about 47 percent). For individual types of fixed capital (buildings, power as well as working machines and equipment, and means of transport) this reaches 50-54 percent. A portion of the amortization deductions which is earmarked for the ma~jor overhaul of fixed capita,l is available to the enterprises and is spent by - them in accord with the repair plans; the other portion which is earmarked for replacement is spent until recently through centralized channels. More- - over, within the established procedure for the purposes of the most rational utilization of the amortization deductions earmarked for major overhauls, the enterprise turns over up to 10 percent of the total volume of these deductions to the superior body for creating a r~serve to provide aid to those enterprises which do not have sufficient of their own funds for carry- ing out major overhauls. 13~+ ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY For improving the composition and use o.f the fixed capital, the "Statute Governing a Soc:ialist State Production Enterprise" gives the industrial en- terprises the right to independently dispose of tlie funds earmarked for ma~or overhauls, using them also for modernization of the fixed capital, and � acquir�in~ the necessary assemblies and parts. Moreover, the er~terprises have ~;t~ined the ri~;ht (with the economic advisability) of acquiring new equipment _ using these funds. In accord with the decisions of the September (1965) Plenum of the CPSU Central Committee; the enterprises operating under the new co~ditions of ~ planning and economic incentive have been given the right to channel a sig- ' nificant portion of the amortization deductions earmarked for full replace- ment of the fixed capital (including ~+5 percent for the shipbuilding industry) into the production development fund.l 69. Indicators and ways for increasing the efficient use of fixed capit al. These are employed for analyzing and planning the compo- sition, structure, movement and state of productive capital. The basic technical and economic indicators for planning and analyzing fixed capital at a shipbuilding enterprise are given in Table 39� The return on investment is a general indicator which to the greatest de~;ree describes the complete evaluation of the level of use for fixed productive capital. In drawing up the enterprise tekhpromfinplan, measures are worked out to increase the efficient use of fixed productive capital (the return on investment). A rise in the level of the return on investment is planned considering the influence of the following factors: An increase in the shift factor for equipment operation, a reduction in the time for reaching full production capacity, a decline in the cost of a unit of capacity, an increase in the share of the active part of the fixed capital in the total value of this capital, the replacement of the equipment fleet and a rise in ~the technical and economic indicators for the use of productive capital, and so forth. 70. Production capacity of a shipbuilding enterprise. By produe- tion capacity of an enterprise, one understands the maximum possible.annual output of ships, ship machine building products and stock in the established range and quantitative ratios with the full use of the production equipment and areas considering the employing of progressive rates and standards, ad- vance production methods and organization. Ttie calculating of production capacity is a most important elenient in the technica:: and economic background studies for the possible product production 1The collection "Khozyaystvennaya Reforma v SSSR" [The Economic Reform in ' the USSR], Moscow,~Pravda, 196g, p 258. 135 . FOR OFFIC~A~ USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 n ~ ~ ~ FOR OFFICIAL USE ONLY . . h_ ~ Table 39 Indicators for the Use of Fixed Capital at a Shipbuilding Enterprise lndica.tor Description of T.ndicn,t~r (ra) . (t~) Proportional amount of fixed Ratio of the value of fixed productive productive capital in its total capital to the total value of enterprise value, % fixed capital Proportional amount of nonpro- Ratio of value of nonproductive fixed ductive fixed capital in total capital to total value of enterprise value, % fixed capital Proportional amount of each Ratio of value of each group of fixed group of fixed productive capital productive capital of an enterprise of' enterprise (shop) in its total (shop) to the total value of fixed pro- value, ~ ductive capital, o _ Completion of newly installed Range, quantity and value (rubles) for and operating production and annual period other equipment, and production areas Withdrawal of production and Range, quantity and value (rubles) for other equipment and production annual period areas Replacement factor for fixed Ratio of value of completed fixed pro- productive capital ductive capital to balance sheet value of initial composition of fixed produc- tive capital Withdrati~al coefficient for Ratio of value of withdrawn fixed pro- _ fixed productive capital ductive capital to tota.l balance sheet . value of available fixed productive capital Increase coefficient for fixed Ratio of difference in value between productive capital newly completed and withdrawn fixed pro- ductive capital to overall balance sheet value of fixed productive capital Proportional amount of active Ratio of value o~ active portion of - part of fixed productive capital fixed productive capital to its total in its total value value . Proportional amount of highly Ratio of quantity and value of highly productive equipment in active productive equipment to the total quan- part of fixed productive capital tity and tlie value of equipment in the (automatic and semiautomatic ma- active portion of the fixed productive ~chines, machine tools with numer- capital . ical program.control, and so ~ forth) 136 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ~ FOR OFFICIAL USE ONLY [continuation of Table 39~ a ~ ~ervicability coefficient of ~escribes condition of fixed productive fixed productive capital Kf capital Ff- W Kf = Ff , where Ff--balance sheet value of fixed productive capital; W--total amount of wear on fixed productive capital during en- tire period of op.eration Coefficient of physical wear on Ratio of total wear of fixed productive ~ fixed productive capital capital to its initial balance sheet value Average age of equipment in the Ratio of total number of years of use fixed productive capital of equ'ipment by groups (types) to the - total number of units in the equipment group (type) Proportional amount of obsoles- Ratio of value, the number of units of cence of production equipment obsolete equipment to the overall balance sheet value or number of units of the ex- ~ isting equipment fleet Use fr~.ctor of available equip- Ratio of number of units of installed ment . equipment to their available number , Use factor of installed equip- Ratio of number of units of operating ment ~ equipment to the total quantity of in- stalled equipment as an average per d~y ~ Shift factor Ksh Tsh Ksh = Pln , where Tsh--number of worked machine-shifts per day; ~ ~ Pin--quantity of installed equipment This method of determining the shift ~ factor for the operata.on of equipment is possible on the basis of data obtained as ~ a result of one-shot observations. How- ever it does not provide a notion of i:he _ average shift factor for one or another period. In this instance, another method _ is used to determine the shift factor: 137 . FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ~ FOR OFFICIAL USE ONLY [continuation of Table 39~ a b Tsh Ksh ~Pin-~~'1+P2)~Dp ' where Tsh--the number of worked machine- shifts in the report (planned) _ period; - P1~-quantity of installed equipment in reserve in accord with the - instructions of the directive bodies; P2--the quantity of installed equip- - ment in the shops and sections specially set aside for practi- cal training of students from vocational-technical schools - and school children; Dp--number of working days in re- port (planned) period Coefficient for internal shift Calculated for studying the internal use of equipment KiS shift use of the equipment as the ratio of the total actually worked machine- - hours in a shift to the shift time fund of the established equipment Coefficient of extensive equip- Ratio of actual equipment operating ment use KeX time to maximum possible equipment operat- ~ ing time per year Coefficient of intensive equip- Qf ment use Kin g. - . in ~ ~ where Qf--actually produced product per unit of time by one machine or by all machines per year; Qm~--maximum possible product out- put in a unit of time by one or all machines Load factor for work area K~ K_ PQ . .2 p~ ~ where P~--planned load for calculation ~ period (product in physical units: pieces, Yeight, meters and so forth); " P~--capacity in the same units and in the same calculation period 138 FOR OFFICIAL USE ONLY - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY [continuation of Table 39~ ~ b Product output per m2 of area Ratio of the volume of the manufactured product to the working area of the shop, section (or to the entire area consider- ing the area occupied by auxiliary and service facilities) ~ Return on investment, rubles or ~ ~ kopecks, Fo~ F�C Ffa ~ ~ ~ where Qgp -the value of the gross (com- modity) or normed net product; Ffa--average annual value of the ~ fixed productive capital Product capital intensiveness Value inverse to the return on invest- ment. Describes the value of the fixed productive capital per ruble of produced product Capital-to-labor ratio Ratio of value of fixed productive cap- ital to total number of industrial- production personnel (or ~ust production workers) Equipment-to-labor ratio Ratio of value of active portion of fixed productive capital to the.number of production workers Energy-to-labor ratio (the~ Characterized by the ratio of total potential coefficient for the capacity of electric motors to number of energy-to-labor ratio of one workers employed on the largest shift worker of industrial-production personnel or one production worker) , volumes in the period being planned with the given means of labor. The amount of production capacity depends upon the quantity and productivity of the active means of labor. For this reason a rise in their share in the fixed productive capital and an increase in their productivity are a most ~ important condition for increasing the production volume and improving its . ~ efficiency. The production capacity of a shipbuilding enterprise, shop or ` section can be increased both by extensive factors by using additional capital investments, as well as by intensive factors, that is, by improving production organization, by modernization of the equipment and a reduction in its stoppages, the mechanization and automation of production processes, the use of the scientific organization of labor, a rise inthe shift factor, and so forth. 139 FOR OFFICIAL USE ONLY , , . , ~ . , , , : APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ~'Pl~e :~econd w~y i~ the inost efficient for existin~ enterprises. The concept of the production capacity of a shipbuilding enterprise, shop _ or section must be distinguished from the concept of the designed capacity, ttiat is, the capacity of the enterprise provided in the plan specifications, as well as the concept of the production program. While the production capacity characterizes the ob~ectively existing conditions for the maximum possible product output at the given enterprise, the production program reflects the quota for using these capabilities in the planning period pro- ceeding from the product quantity which at the given time is required by the national economy and the production of which is supplied with labor, - material and energy resources. A rise in production capacity is planned considering the planned product vollune and the degree of carrying out the stipulated program using the existing capacity. The difference between the necessary and existing capacity considering an improvement in its use com- prises the amount of the required increase in production capacity and when necessary capital investments are allocated for creating this capacity. For these purposes the enterprises annually draw up production capacity balances. Oti the basis of the calculations carried out, reserves are discovered for a rise in production, and the volume of product output is set. The calcula- tions of production capacity are also used for establishing the economically . advisable specialization and cooperation of the enterprise and the planned capital investment volume. The production capacity of a shipbuilding enterprise is calculated for the entire range of product to be produced by it, and this should conform most closely to the specialty and structure of the fixed productive capital at the given enterprise. The production capacity of a shipbuilding enterprise is calculated in the ~ame physical units as the production program. If the enterprise produces many types of products (vessels), then the production capacity is figured for a consolidated range in terms of representative products. In this in- stance all the products (particularly this applies to enterprises in ship machine building) are grouped in terms of similarity of the production process. In each group the most chaxacteristic product, that is, the rep- resentative product, i~ selected. All the remaining products in the given group are reduced to this representative using coefficients which have been obtained by dividing the labor intensiveness of the product to be converted in machine-hours by the labor intensiveness of the representative product. The production capacity of an enterprise as a whole is determined from the capacity of the leading production shops which carry out the basic produc- tion processes involved in manufacturing the given product. In determining the production capacity of the shipbuilding portion oP the plant (the yard), these leading shops are: Hull assembly, assembly-welding and ways, ar.d in ship machine building they are accessories and machine-assP.mbly. 1~+0 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Table 40 Methods for Calculating Production Capacity Capac:i.i;y Indicators and Explanr~,tioii Calcula~;ion Formulas ~b~ (a) ~ l. Annual producton capacity of ways n--number of ways areas according shops (slips) to production plan; . Dp -number of working days in year; nD RP--building pace, days MS~ R P - 2. Building pace of vessels N--normed labor intensiveness of ~ ways work, norm-hours N P--average number of workers on Rp = PhKf ways according to production plan; h--number of hours of work on ways, days; Kf--coefficient for fulfilling standaxds in ways ~jobs 3. Production capacity of ways shops R,~--pace of assembly or flow line, with ilow-position building of the days ~ vessels ~ , _ ~ .Mfp-R~ ~ 1~, Pace of flow line N,~--the standard of labor intensive- ness for building one vessel in N,~ all positions, norm-hour; R,Q = P~h~Kf . P,~--average number of workers in - all positions of the flow line, days; . h~--duration of the work shift, hours; ~ l~+l FOR OFFICIAL USE ONLY _ . ~ , ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY [continuation of Tnble 40] ~ b 5. Production capacity of machine- C--number of ac^,cmbly work areas; rs.~:~embly :;hc~p~ P--avera~e number of workers at onc work area; CPFuKShKf Fu -annual effective ti.me fund of M~na - T~ one worker, hour; Ksh--shift factor; T~--labor intensiveness of assemb- ling one product, norm-hour 6. Production capacity of machine C--average annual amount of in- shops stalled equipment in shop; Fe--effective working time fund of CFeKfKSh equipment per shit, hours; . Mm,= T To--standaxd of labor intensiveness � for turning out a unit of prod- uct, machine-hour 7. Effective working time fund of Dp--number of working days per year; ~ equipment h--number of hours of equipment . operation per day; Fe - Dph~1-S) S--coefficient for equipment stop- pages during repairs (s= 0.04- ~ 0.50) 8. Production capacity by production S--total production area of a shop; area Fu -effective time fund of area, hours; SFuKf w--average area occupied by one Max - ~ product; . p Tp -the standard of labor intensive- ness for work or one product, norm-hour Of important significance is the coordination of capacity among all the shops and production areas. For this reason at the enterprises they also calculate the.capacity of all the remaining production and auxiliary shops, sections or systems. Here if a discrepancy is discovered between the capacity of the individual shops, then organizational and technical meas- ures are worked out to eliminate them or to load up the surplus capacity with other work.~ The calculation of an enterprise's production capacity , 142 ~ FOR OFFICIAi~ USE ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240020009-8 I FOR OFFICIAL US~ ONLY includes all production equipment assigned to the shops (both operating and idle as a consequence of a malfunction, repairs or modernization).. Reserve equipment the list and quantity of which are approved by the superior organ- izations is not considered in the calculation for production capacity. The productiori cap~.city of an enterprise is calculated on the basis of advanced 'y i,cchnical or ciesign standards for equipment productivity, advanced product:i.on methods and the organization of production. The methods of calculating pro- duction capacity at shops and the enterprise are given in Table 40. ~ Production capacity is calculated proceeding from the maximum possible equip- ment working time fund. At enterprises with a broken production process, the annual time fund is calculated from the number of working days a year multiplied by the number of hours of work per day considering the shortened working time on days before hoiidays. Equipment shoppages during planned repairs are also excluded from the annual time fund. The production capacity of each enterprise is determined for two dates: the incoming on 1 Januaxy of the curren+, year and the outgoing on 1 January of the following year. For the purposes of planning and accounting for the use of production capac- - ity, the average annual amount of production capacity is also determined MShl - Mwh2 Ma = Min + 12 ' wY~ere Min--incoming capacity on 1 January of the year being planned; MS--capacity newly completed in the year being planned; - Mj,,T--capacity being withdrawn in year being planned; ~ hl, h2--number of months, respectively, for operation and withdrawal of capacity bef~re year's end. The outgoing capacity is determined from the formula Mo = Min + Ms - MW . . ~ The degree of utilizing the average annual production capacity is determined by a coefficient which is expressed in the form of the ratio of annual prod- - uct output to average annual capacity in the given year. An improvement in . tYie use of the fixed productive capital is an important reserve for overful- filling the enterprise production plans and increasing production efficiency. 1~+3 FOR OFFICIAL USE ONLY ' I . APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240020009-8 FOR OFFICIAL USE ONLY - CHAPTER 9: MATERIAL AND TECHNICAL SUPPLY AND WORKING CAPITAL _ 71. Planning material and technical supply at a shipbuilding en t erpr ise. The system.of material and technical supply [MTS] at enter- prises is based upon the strictly planned satisfying of their demand for material resources. The continuity, promptness and completeness of deliver- ies are essential conditions for its functioning. The annual, semiannual and quarterly material and technical supply plans at shipbuilding enterprises are worked out in accord with the production program using the forms and on the dates stipulated by the Glavsnab [main supply ~.dministration] of the ministry and by the territorial administrations of the USSR Gossnab. The demand of an enterprise for materials to develop rotating production ~ stocks is determined on the basis of the instructions and procedures for the norming of working capital and production stocks. The basic sources for covering the demand for materials are: the expected balances of materials, the internal resources of the enterprise, the receipts under decentralized procurement and the predominant share in the form of re- ceipts under allocations centrally assigned for the given planning period. r " The amount of the expected balance of the material at the beginning of the planning year is MeX = M f+ ReX - pp, where P~f--the actual balance of material on the first of the month in which the material supply plan is worked out; - ReX--the expected�receipt of the given material over the period from _ thE date for which the actual balance has been taken until the end of the current year; Pp -the Pxpected consumption of the given material over the same in- terval of the current y~ar. The amount of the delivery of materials under noncentralized allocations is determined on the basis of the material balance: � 144 . FOR OFFICIAL USE ONLY ~ , APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY PPr+Pnt+Pre+Pfi+Ped+Psr+pst - M~X+D~+B~+P~,, . � wlir~rr I'--t.}te ~ic.~mci,ncl Cor~ mri.~l-,c:~r~i ~1.1,,, re;;pectivel,y: l~'p1.--for i,h~ }.roducti on pro~;ram; - Pn~--for new equipment; Pre--for repair and operating needs; Pfi"'for fittings; ~ - Ped-'for experimental design work; - Psr--for scientific research; = Pst� for creating the carryover production stocks; MeX--the expected balances of materials at the enterprise warehouses by _ the start of the planning period; Dd--receipts from decentralized de~.~veries; ~ Bp -the amount of covering the demand for materials by mobilizing in- ternal resources; F~--the amount of material deliveries under decentralized allocations ~ (the request~.ble allocation). ~ The amount of the requestable allocation equals ~ F~ = P - ~Mex + Bp + Dd ) , where P--the ~total demand o.f the enterprise for the given material (the total of the indicators on the lefthand side of the material balance). - The annual MTS plan for a shipbuilding enterprise is worked out in two stages. At the first stage (March-April), a preliminary plan is drawn up in the form of requests containing the calculations and the total dema.nd for individual types of materials and these are used as the basis for.working out the national economic supply plans (the material balances and the allocation plans). At the second stage (December of t~he current year--January of the year bein~ planned), the annual MTS plan, in accord with the approved production pro- gram, is adjusted and it assumes a final form. The quarterly supply plans are worked out in a specific form for the entire range of materials essential for the enterprise in the plan period. The enterprise MTS plan is worked out both in physical and monetary units for the purpose of monitoring the state of working capital invested in pro- duction stocks, for comparing the actual expenditures with planned expendi- tures in product costs, and so forth. An essential condition for correctly determining the demand of an enterprise for material resources during the period being planned is the use of the appropriate normative or standards base. The basic standards used in working out the MTS plans are given in Fig. 2. _ 11+5 ~ FOR OFFICIAL USE ONLY _ . . APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Normative base for material-technical supply Standards for consumption and Standards considered - use of material resources in planning MTS - consumption rate for raw prod- - standards for production inven- ucts, basic materials and semi- tories of materials; finished product; - transit standards for ordering - consumption rate of auxiliary and dispatch in terms of types of material; materials and equipment; - consumption rate of preassembled - mark-up of supply and marketing article; organization; - consumption rate of fuel and - rates for preparatory and ware- thermal power; housing expenditure; - consumption rate of electric - rates of natural loss by types of power; material; ~ - rate of using materials, tools - standards of proportional amounts and equipment Fig. 2. Normative MTS Base of an Enterprise 72. Materials consumption standards. One of the most important as- pects in material and technical planning is the elaboration and approving of progressive consumption rates. Consumption standards and rates comprise the basis of the MTS plan. Using the rates, the demand of the enterprise is de- termined for material resources, the delivery plans are cirawn up, the plans for the material supply of the shops, sections and work areas are organized, and standards for the issuing of materials for production are worked out. A consumption rate is the maximum necessary quantity of raw products, materi- als, fuel or energy needed for producing (manufacturing) a unit of product , of the established quality considering the specific organizational and tech- _ nical production conditions. For assessing the level of the progressiveness of constnnption rates or, in other words, the degree of the rational use of material resources, a system of indicators is employed. The basic ones are: The materials use factor, the indicator for the reduction of material consumption and the indicator of the progressiveness (economicness) of the material consumption rates. 11+6 ~ , FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ' Tl~e mal;erial use fac.tor Ku is the ratio of the net weight of the product to ~;he est~,blished r�ou~h material con~~unption rate and is expressed eithcr in _ percentages, or by a number lesse~ or equal to one: ' ICu = Pn : Pr , _ where Pri -the net weight of the piece (article); Pr--the rough weight of the material for the piece (article) according to the standard. The percentage of the reduction of the consumption rate R~ is determined from the formula _ K~- Kb . Rc - K ~ P where KP, Kb--the mater.ial use factors, respectively, in the plan and base ~ periods. ~ The indicator for the progressiveness of the rate Rd expresses the amount of additional product which can be obtained as a result of a rise in the material use factor: - K Kb . ~ Rp = -PK 100. b In terms of the degree of detailing, the rates are classified into specific rates or rates which establish the consumption of a specific material (with the indication of the type-size, grade, shape, composition and so forth) per unit of product; summary rates or rates which set the consumption of a uni- - form type of material per unit of product, and are used for drawing up the annual plans (orders). The piece, assembly and article consumption rates for shipbuilding enter- prises are employed mainly for operational planning in the material.and tech= nical supply of the enterprise shops and facilities. In working out the consumption rates, a prime task is to optimize the amount of the normed losses and wastes for the entire production chain in manufac- - turing the product. Ar~y individual consumption rate is set considering the consumption structure. _ Izi a general form the structure of the material consumption rate is: Am = qe+E(qo-qu)+E(qot-9.ou)~ ~ where qe -the effective or net material consumption; . qo--the total quantity of production waste and material losses; 147 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY qu--the usable portion of production wastes; q~~~--other technical a,nd organiza';~�ional expenditure~ and losses; q~ti 't}~e ~xsable portion of the other technical and or~ar~ization~,l wt~stes. I'rom the formula it follows tna,t the structure of the individual material _ consumption rate consists of three basic elements: The effective (net) cor~- swnption, production wastes formed in the production process, and other losses in the process of storing and transporting the materials. The effective consumption includes that quantity of materials which is direct- ly part of the finished product or is effectively used in the production process. The production wastes and losses include those which are related to product _ output under the conditions of the given production process. The production wastes can be usable and unusable. The other technical and organizational expenditures and losses are formed outside the production process. These include waste materials arising from incorrect sizing, excessive tolerances, and so forth. In those instances when the existing organizational and technical conditions do not make it pos- sible to fully eliminate such wastes, a minimum of them is included in the rate. 73� The setting of rates and standards for production stocks. In order to protect the enterprise against possible interruptions in material a.nd technical supply, a certain production stock of material resources should be set up at it. The produet2on stoek is the maximum acceptable average . level of material resources (raw products, materials, preassembled articles, fuel, and so forth) which in the next plan period should ensure the uninter- rupted and steady operation of the enterprise in carryir.g out the set product production plan. In quantitative terms the production stock standard represents the total of the individually calculated rates for the current, reserve (guarantee), preparator�y and seasonal stocks.' The current reserve is necessary,for th~ enterprise to ensure uninterrupted operations in the intervals between regu- lar delivery; the reserve (guarantee) for ensuring normal production activi- ties in the event of possible interruptions in supply or fluctuations in the production volume. The preparatory stock is created for the,operation of the enterprise in the period of preparing the materials for use and delivery to the work areas. The seasona.l stock is caused by seasonal fluctuations in the delivery of various materials or in thei.r consumption. The necessity of a seasonal stock may also be caused.by interruptions in transport operations as a consequence - of the territorial location of the supplier and consumer. - 11+8 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY The material ::tock standards are set separately for materials received from suppliers in transit or from the warehouses of the supply and marketing or- ganizations. The differenti~ted calculation of stock rates by types and sizes of materials (with the subsequent consolidation into product ~;roup:~) does not exc:l.i~de t}ic po:7s.ibility of the con~olidated cal.culatiori of stanci- ards for materials which have the same or similar delivery conditions, ttiat. is, consumption volume, form and interval between deliveries. In stock norming, it is essential to be guided by the following general pro- visions: 1) the standards for production stocks calculated in da,ys of supply , should have a stable nature and be in effect for 3-5 years.~ For recalculat- ing the stock standards in the event of a change in the production and supply conditions, permission is required from the superior organization; 2) the number of days in a yeax is set at 360, in a quarter there are 90, and in a month 30; 3) the composition of the production stocks of an enterprise does not include en route; the basis for calculating the stock standards is the actual data on deliveries and for not less than 12 months; 5) the re- serve stock is provided for only for those materials supplied in transit, but for materials which the enterprise receives from the depots and ware- houses of the supply and marketing organizatios within the system of the USSR Gossnab and the departmental depots, no reserve stock is planned. It = is also not calculated in setting the seasonal stock. The standards for production stocks of normed materials are calculated in accord with the current procedure for determining the production stock standards.l Calculation of the current stock standard. The current stock standard is the amount of the average current stock defined as one-half of the delivery interval (in days of supply) or as one-half the volume of the planning and ~ calculation delivery batch (in physical units). = ~ For :Pinding the amount of the planning and calculation batch and the delivery interval, the following method is used: 1) Prom the log for recording the delivery of freight to the enterprise - warehouses, one copies out the actual dates and lots of receipt of transit deliveries of a normed material delivered by various types of tr.ansport, that is, by rail, truck, water and so forth. If several lots of material - have been delivered on one day, these volumes are added up, and the number of deliveries on this day is set as equal to one. 2) After a~ careful analysis and correcting of the number of deliveries, the total delivery volume of the given material is determined for the period 1"Procedure for Determining Production Stock Standards for Raw Products and Materials (Provisionsl)," Moscow, NIIPIN under the USSR Gosplan, 1967. 149 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY being analyzed (for not less than 12 months), and its average daily consump- tion by the enterprise. 3) The amount of the planning and calculation delivery batch is determined f,,y ~]ividi.nf~ f.l~r~ tottl]. v~li.une o.f the recei.ved norrned m~.terin.l t~y tli~ corrr.ci~,ed niunt~crl� oi' iie:liverie:. ~ 4) The average calculated interval between deliveries is determined by dividing the volume of the planning and calculation delivery by the average daily consumption of the given material (see the example). Example (hypothetical). The receipt of rolled ferrous metals at an enter- prise has been determined as 27 deliveries (according to the warehouse rec- ords) with a total weight of 9,000 tons. On the basis of a careful analy- sis and the excluding of accidental individual small and excessively large deliveries, 24 deliveries were used in the calculation with a total weight of 7,200 tons. The average amount of the planning and calculation delivery in this in- stance equals 300 tons (7,200:2~). The given total number of deliveries in the given year will be 30 (900:300). The a~aerage interval between deliver- = ies is set at 12 days (360:30). P'or materials which are consumed in small quantities and are supplied from tYze warehouses of supply and marketing organizations.and which are stipu- lated in certain standards (not less than one carload, one tank carload, truckload, and so forth), the average interval is determined by the time during which the given material can be consumed in production and which has been received in the amount of the given delivery batch which is most ad- visable for transporting. For this the amount of the most advisable de- livery batch for transporting is divided by the one-day consump+ion.of the given mater~al in praduction. With the daily delivery of the normed material, the current stock standard is set in the amount of 1 day. With deliveries of material once or twice a year, the stock standard in.days of availability is set, accordingly, at 180 and 90 days. In determining the current stock standard for materials which are produced by the enterprise and are to be used in internal production consumption _ (for the internal allocations), the volume bf the current stock is set as equal to the time of manufacturing a batch of the given material. The planning of the emergency stock standards is based upon comparing the actual receipt of materials at the enterprise warehouse. For this they use the same information (the receipt dates of the batches and the delivery volumes) on the basis of which the plan and calculation delivery batch was set. 150 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY The planning of the emergency stock standards is based on a comparison of the actual delivery intervals and volumes with their avera~e wei~rhted values. /Is the emer~;ency ,tock ^tand~.rd, they u~e 25 percent of the l~,rper of two _ ?n~ix irnum dev i~,1, i on: : towrard tln incrcr~se in i:errn:~ of the clel_ iv~ry intervn:l:,, - n.nd to~rard decrr~,se for the deliver,y volume. Thi^ amount corresponds to the ps�obably devir~tion in the deli.very volume and the interval in the plan period. The emergency stock standard should not exceed the standard of the current stock. The setting of rates and standards for the preparatory stock presupposes i.ndividual planning of its ~rdinary and special parts. The ordinary pre- paratory stock (the time for performing operations involved in loading and unloading work, the quantitative and qualitative acceptance of materials, grading, and so forth), as a ru1e, axe set as equal to 1 day. - The special preparatory stock of materials is formed at an enterprise be- cause certain mai~erials before being put into production should undergo preparatory production operations (cLrying, the special saturating of ltunber, the special superficial and internal chemical treatment of materials, _ corrosion-retarding surfacing, and so forth). As the rate for the special preparatory stocks one uses the maximum amount of time needed to carry out the preparato.ry operations in accord with the employed preduction method. The largest amounts of seasonal stocks occur at the end of the seasonal ~ receipt or by the be~inning of the seasonal conslunption of materials, and the least occur at the beginning of the seasonal receipt or the ~nd of the seasonal consumption. The least amount of seasonal production stocks is determined by multiplying the average daily consump+~ion (the arinual consump- tion divi~.ed by 360) by the number of days of interruption established in each individual case depending upon the specific delivery and consumption ' conditions. The standard for the production carryover stock is calculated using Table 41. 7b. Organizing the fulfillment of the material and techical sup p1y pl an. The annual MTS plan of a shipbuilding enterprise determines i:he delivery volume, as a rule, in a consolidated group range. The concre- tizing by grade is carried out in the period of specifying the allocations. The work of specifying the~allocations is an important stage in organizing the fulfillment of the P4TS plan. The allocations are specified for ferrous and nonferrous metal, steal and iron pipe and hardware for a 6-month period. Equipment, chemicals, paint and vaxnish materials, and industrial rubber products are specified proceeding from the annual allocations. Lumber, bv.ildino materials, fuels and lubricants and others are specified proceed- iri~ from the quarterly allocations. The compiling of the specifications is preceded by a careful analysis of the availability of each type of material from the resources of the current period, as a result of which the specific demand for allocations is ascer- tained. 151 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY . Table 41 Calculation of the Rate for the Production Carryover Stock Enterprise Ministry ~ 1� � IInaaoeaA W z b Hopwa npoaaeoqereexqoro nepe~:oAe~4eco aanaca m ~ 8norpe6- a�_ ~Hopwa Iio,qroroee- ' �n e xocrb .reKyu~ero CrpaxoeoA ~bxdl! Bcero , 1 a p8 _ o sanaca a, sanac e aanac . n o x a ~ o� M ~ F~ K d x W x W S ~7 ~C a u ou = y S 'a S.. ~ ~ r' C S S S S ? S N1 ~ Q a Q Gy 9� O. ~ K � m ~ m~, a~I z aFi u d o yo m ~ a a m c, . u m m ~ ~ K ~ ci, k K" K C S m ~h o c. =o 30 ~ ~ m ~ o ~n ~oa ~ ~a ~a a^ _ , � ~S x Q ~ 3cT ~ w~ W �v w~- e~ aa a , \ = o O.~'.. Y OxG ' G F y~ R h y R F a+D 2 C S 6 q q T'6' S 10 V 17 t0 S C S ef ma uc o a S~a a sa W ~S sc G sc ~t =d 'a ~ m m r-. U C r ~ m mb 7t w w..~. n a.�S n e.`3 C 1 2 3 4 5 6 7 8 9 l0 11 12 t3 14 15 l6 ~ ~ I Key: 1--number; 2--name of material type, grade or size; 3--amount of plan and calculation delivery; � ~+--annual; 5--average daily (column 4:360); . 5--planned delivery interval by calculation (column 3:column 5) or by approved schedule; 7--in days(0.5 of column 6); 8--in physical amounts (column 5 x 7); g--maximum deviation; 10--in days (0.25 of column 9); 11--in physical amounts (coliunn 5 x column 10); 12--in days; 13--in physical amounts (column 5 x column 12); 1~+--in days; 15--in physical amounts~(column 8+ column 10 + column 13); 16--note; a--planned de- mand for 19 ; b--rate of production carryover stock; c--current stock rate; d--reserve stock; e--preparatory stock; f--total. The specification orders for metal products are drawn up for more tr.?~n a quarter prior to the start of the 6 months being planned. The compilation of the speci.fied orders, depending upon the assigned product range, are submitted either tc~ the supply bodies of the MSP [Ministry of Shipbuilding ~ Industry] or to the bodies of the territorial administrations of the USSR Gosbank. 152 FOR OFFICIAL USE ONLY ' APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY `i'he specificati~~ns are coordinated with the product production plans and the consumer enter~~rises ~,re assi~ned to the suppliers by the soyuzsnabsbyts - [all-Union suppl,y and marketin~r administrations], to~;ether with the g;lav- snabs [main supply administrations] of the ministries, the Union republics and the territorial MTS administrations. Simultaneously with specifyin~ the allocations, the form of supply is estab- ~ lisY:ed. In practice two forms of deliveries are employed: transit and warehouse. The most effective form of delivery is the one which meets the following requirements: Promptness and completeness of delivery, the full- est utilization of the means of transportation, the least transport prepara- tory expenditures, and a minimum of material stocks. The transit form of supply has a number of advantages over the warehouse one. It reduces the time of delivering the materials from the supplier to the consumer, it excludes intermediate loading and unloading operations at the _ warehouses of the supply and marketing organizations, and reduces the transport-preparatory expenditures. However, the transit form of deliver:es can lead for certain types of materials to an increase in the production stocks in comparison with the warehouse form. The warehouse form of de- - liveries is employed basically for those materials which the enterprise con- sumes in quantities less than the transit form. Tne relationships of the shipbuilding enterprises with the supplier~st_.of material and technical products are regulated by the conditions of cYbntracts concluded on the basis of the orders, the allocation notifications and other documents proving the allocating of supplies. The concluding of contracts for the delivery of products is an important stage in organizing the materi- al and technical supply of the entc~';prise. In forming economic ties, the eziterprises (consumers and suppliei~s) should be guided by the "Statizte on t,he Deliveries of Production and Technical Products" approved by the USSR Council of Ministers on 9 April 1969; the Decree of the USSR Council of i~Iinisters of 27 October 1967 "On Material Liability of Enterprises and Organizations for the Nonfulfillment of Quotas and Obligations"; the Decree of the US.SR Council of Nlinisters of 28 April 1969 "On Measures to Further Improve Niaterial and Technical Supply of the National Economy"; the Special~ Delivery Conditions for Individual Product Types approved by the decrees of the USSR Gossnab and the USSR State Arbitration Co~nittee, as well as by the other legislative enactments. - The economic ties of the consumer enterprises are organized both directly with the supplier enterprises and with the territorial supply bodies. `Che most progressive form of relationships making it possible for the in- volved parties to maintain direct professional ties is the direct contract which establishes extended and stable ties between the consluner enterprises. In concluding direct long-term economic contracts, it is essential to fol- low the "Statute Governing Deliveries of Products for Production and Tech- nical Purposes" which provides a common product delivery procedure for all suppliers and consumers, and the Decree of the USSR Gossnab of 15 July 1971. 153 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY "On the Procedure of Assignin~; Consumer ~nterprises to Supplier Enterpr~~es for Direct Long-Term Economic Ties Relating to Product Deliveries." The next sta.ge of material r~.nd technical suppl,y at an enterprise is the organizing of the operationr3,l prepaxatory worlc. This is expressed in t}~e elaborating of quarterly and monthly operational preparatory plans in which the demand is claxified for material resources in terms of the delivery _ volume and dates, as well as all changes disclosed since the time oF draw- ing up the annual plan. On the basis of these plans, direct ties are es- tablished with the supplier enterprises and the delivery of raw products and materials to the enterprise warehouses is organized. '1'he most important task of operational work is the supervising of the stock , level and controlling the fulfillment of the contractual obligations by sup- pliers for the delivery of raw products and materials at the dates stipu- lated by the plan. 75� Planning working .capital. Each production enterprise, along with fixed productive capital, possesses working capital. Working production capitaZ is the money of the enterprise invested in the production stocks of raw products, basic and auxiliary materials, preassembled ship equipment, fuel, spare parts, crating, inexpensive and rapidly worn out articles, in- complete production and own-manufactured semifinished products, as well as expenditures of future periods. Enterprise working capital is divided into normed and unnormed. The normed is those elements of working capital for which a planning rate is set, that is, a permanent minimum balance. These include all commodities and materi- als of val.ue, such as: Production stocks, incomplete production, expendi- tures of future periods, and finished products. The remaining elements of working capital at an er~terprise are not normed. Simultaneously, the sources for forming working assets are divided into own or internal and borrowed. The internal assets include the money allocated and assigned to the enterprise in the form of the charter capital, while the borrowed is the temporarily used money in the form of short-term bank loans and debt. , The planning of worxing capital includes a defining of both the aggregate demand of the enterprises for working capital as well as separately the sources of its formation, internal working capital and borrowed. The tvorking capitaZ standard is an indicator which describes the ratio of - the necessary balance of various types of materials in monetary unit s to a certain indicator of enterprise operations. For example, at industrial enterprises the working capital standard for materials is expressed in days in relation to the consumption of these materials. Thus, if the standard is 20 days, then the value of the average materials balance at the given enterprise according to the plan equals their 20-day consumption. . , 15~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY The working ea~.>itaZ rate is the minimum necessary avert~~;e halance of com- moditie:; and mrLter.ials for the enterprise in monetary unit~. T}~e rate cle- pends upon the volume of expenditures and the working capital standard. As a rule, it is figured by dividing the standard by that indicator in relation to which the standard was set. The working capit~.1 standards are calculated for the individual working capital elements in terms of the items of the bookkeeping balance, and here consideration is given to the particular features oi' the operation of enterprises in the shipbuilding industry. 76. Meth~ds of setting standards and rates for working capital. In the planning and norming of enterprise working capital, three basic methods are used: The direct calculation method, the statistical-analytical - - method, and the coefficient method. The direct ca7,cuZation method for working capital means a monetary evalua- tion of the materials of value necessary for ensuring the normal operation of the enterprise on the basis of their consumption and stock rates. _ ~ direct calculation presupposes stability of the plan, and steadiness of material-technical supply and the range of the produced product. These conditions are essential for the normal operation of the enterprise, and for this reason at present the direc~ calculation method underlies all warkinb c2.pit~,l calculations. The statisticaZ and anaZz~ticaZ method consists in determining the required - _ working capital proceeding from the report data for the previous period. Hyre the actual balance of working capital is taken as its planned amount. Tl:e actual balances of the normable assets undergo careful analysis�for the purpose of excluding materials which are surplus, unnecessary or not ~zsed at the enterprise for a long time, as well as the expenditures which have been the result of a deviation from the plan or those which should not be repeated in the future. A detailed analysis of the actual data ca,n be carried out only directly on the spot, and for this reason the sta- tis~'tical and analytical method is applicable chiefly at enterprises. In other instances, report data on surplus a:~d unnecessary assets axe used for ad~usting the actual balances. The eoeffieient method consists in an increase or decrease in the current w~rlcing capital rates depending upon a change in the production volume. Here all working capital is divided into three groups: Productive (raw products and basic materials, incomplete production and finished products), iionproductive (spare parts, inexpensive supplies) and specific. The latter � include individual working capital elements of a number of industrial sec- tors, and in parrticular, expenditures of future periods. Here the working capital rate for production elements is increased pro- pcrtionately to the rise in the production volume, and for the nonproductive 155 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2047102/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ones, for a certain part of the gr owth, and for the specific elements is determined by direct calculation. The calculating of working capital rates using the coefficients is marked t~y a combination of simple calculating techniqi~es, but nt the sa.me time can lead to :.naccurate calculations. With this method, miscalculations arise caused by shifts iri the production structure. The development of the norming of working capital at enterprises by direct calculation does not eliminate the necessity of using the above-indicated and other consolidated calculation methods. 77. The method of norming working capital of industrial enter- p rise s. The method of norming working capital is based upon the direct calculation method. This method, as was pointed out, best ensures the elab- oration of economically sound rates at each enterprise, as it considers all the factors related to the particular features of production, supply and product sales. Many factors influence the amount of the working capital rate, and in par- ticular, this would include the supply and sales conditions (the frequency and sizes of delivery lots, the periodicity of dispatching finished prod- ucts, and so forth); the production conditions (the duration of the produc- tion cycle, the type of production, and so forth). Due to the fact that the working capital rates are set For the end of the year, for calculatin~ them one employs the estimate of production expenditures and the correspond- ing calculations for it in the fourth quarter at enterprises with ~,r~on- seasonal type of production, where these expenditures grow gradually, in increasing toward the end of the year. Proceeding from the quarterly estimate of production expenditures and the corresponding calculations for it, by dividing by 90, one can determine the 1-day expenditures for the individual working capital elements. A 1-day expenditure is set for raw products, materials and fuel, 1-day ex- penditures for incomplete production, and a 1-day dispatch for finished products. In relation to the 1-day expenditures for each working capital element, standards are figured which describe the demand for working capital ex- pressed in relative amounts (Table ~+2). The general rate formula for the given element of internal working capital in monetary units is as follows: P N = 9~ D, . where P--the turnover for the given working capital element according to the estimate of production expenditures (c~nsidering the ad~ust- ment) in the fourth quarter of the year being planned, rubles; 156 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-00850R000200024409-8 ~ FOR OFFICIAL USE ONLY D--the k~orking capital rate in relative amounts for the given type of commodities and materials, days. _ Table 42 ~ Working Capital Standards Expressed in Relative Amounts Working Capital Elements Wr~rking Capital Standard 1. Raw products, basic materials In days for consumption according to - and purchased semifinished production expenditure estimate products 2. Auxiliary materials Same 3. Fuel Same 4. Crating In rubles per 1000 rubles of commodity ` product in wholesale prices 5. Spare parts In rubles per 1000 rubles of equip- ment according to balance-sheet value without deducting wear 6. Inexpensive and rapidly In rubles per enterprise employee wearing out supplies (without ~ ~ special tools and attachments) 7. Special tools and attachments In rubles per 1000 rubles of commodity (gross) product in wholesale prices 8. Incompyete production In da~rs of gross product by~costs g. Finished products In days of commodity product according to factory-plant costs Economically sound working capital standards can be used for a,number of ; years if there are no substantial changes in the conditions of product out- put, supply and sales. 78. Working capital norming for stocks of raw products and b a s i c mat er i al s. The working capital standard for raw products and mater.ials is determined in days of their consumption, and is calculated considering the supply conditions, the periodicity of the constunption of each type of raw product and materials, as well as the conditions for pay- ~ ments with suppliers. Like the l-day consumption, this is set for each _ type of raw product and material. For reducing the labor intensiveness of the calculations and ensuring the ~ correct setting of the working capital standards, it is essential to divide the raw products and materials into groups which include varieties of 157 . . FOR OFFICIAL USE ONLY . . l f.~ . . ' . . ~ . . . . . . . ~ . APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-00850R000200024409-8 ~ FOR OFFICIAL USE ONLY materials with more or less the same delivery and cons~.miption conditions, The working capital standard can be calculated by direct calculation only for a portion of the product types in each group, the proportional a.mount of which is at least 70-80 percent of materials consumption for the giv en group in monetary units. ~ _ On the basis of the calculated standards for these varieties, an average weighted standard is determined and this can be used as the standard for the entir? group, that is, it is extended to all the materials in the given ~;roup. With a broad range of raw products and materials, the calculating of the standards by the direct calculation method can be carried out for the basic types of materials which comprise 70-80 percent of the total ex- = penditure of all types of consumed materials. For the remaining types of materials, the working capital standard is determined as a whole for the ~roup proceeding from an analysis of the actual balances dvxing the ~re- vious year. , In determining the full working capital standard for raw products and basic materials, the following times are calculated: The time the materials paid for by the enterprise remain en route; the time required for unloading, grading and preparing the materials f.or production; the time the materials remain in the form of a current stock; the time the materials remain in the form of the guarantee (reserve) stock (see g73). Each of the component parts of the working capital standard is set depending upon the factors which influence its for~ation and size. The duration of freight turnover for all types of raw products and materials � received from supplier enterprises is determined on the basis of data for the previous period. The duration of paper work includes, in addition to the time of the direct sending of documents by mail from the supplier bank to the recipient bank, i:he time needed by the enterprise to compile a bill and to handle the docu- ments at the supplier bank on the day of their presentation. ~ The standard for working capital in the form of materials en route is calcu- lated as the difference between the duration of ~'reight turnover and the time of paper work in the following form: (days) Key: 1--Type of raw BuA capbn ( ' BpeMa B eMa Hopra rodliCt OT' materials' unH~ CranquA xaao~:Aexea o~o ore rpoxcnoprxo- P ~ Narepuanoe Rocraeu4eh oTnpasnexaA rpysa e nyTx J(OKy eNT00 ro aanaca 2__Su lier; (rp.4-5) AA 3--Station of de- _ ~ s a 4 5 6 parture; 4--Time _ R freight is en route; - - ~ ~ S--Time of paper - - work; 6---Standard ' ~ ~ for the transport stock (c-~1. ~+-5 ) ~ 158 FOR OFFICIAL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY The workin~ capital standard for materials en route can be also determined - by dividin~ the avera~;e balance of materials considerin~ the chan~es in the delivery conditions for individual types of materials designated in the plan period by the 1-day consumption of materials. In the given instance, the ,i;nndard fbr m~.~L-eri~.ls en route is d.etermi.ned not for each ty~,e o~ rnaterials, �but r~.ther as a wtiole for calculatin~ the standard under the _ itern "[iaw Producte,, Basic Materials and Purcha:~ed Semifinished Products." _ The standard for the preparatory stock includes the time for the ordinary stock (receiving, unloadi.ng and grading~) and the production stock. The former is set, as a rule, in an amount of 1 day, and the second for however much is necessary for carrying out the operations related to preparing the material for production (the cleaning of inetal, passivation, the drying out of wood, and so forth). It is possible to calculate the working capital standard for the preparatory J stock not for each type or size of material, but rather using consolidated - groups (for example, large-section steel, thin sheet, and s~ forth). The current stock is the basic portion of the working cagital standard for raw products and materials. The amount of current stock is influenced by the size and periodicity of receiving individual types of materials, and the quantity of the ty~es of raw products and materials consumed in pro- ducti~n. At a majority of the enterprises, the raw products and materials are con- sumed continuously, on a daily basis and evenly over the year. With such putting of raw products and materials into pr.oduction, the current stock - stand.ards depend upon the average interval between deliveries, and are de- - termined in an amount of one-half its duration. The calculation method for the average interval between deliveries of raw products and materials is - given in �73. ' 2._e demand for working cabital to form a reserve stock of materials is de- . terrnined basically by the deviations in the delivery date~ and the amounts of actually r.eceived material from the average amount of the deliveries. F'or example, if it has turned out that there were three instances of a dis- crepancy of 6, 7 and 4 days, then the average devi~.tion will be 5 days I~'+5*~I. This will also be the standard for the reserve su 1 but it l 3 ~ PP Y~ should not exceed 50 percent of the current stock standard. Often the standa.rd for the reserve stock is set at one-half the standard of the cur- , rent stock, and then it is not calculated separately. Having d?termined all the elements of the working capital standard which correspond to the stages of movement of the raw products and materials, it is possible to calculate the working capital standard as a whole for . - each type of raw product and materials: the time the materials paid for are en route, the tir~e necessa,ry for the receiving, unloading, tirarehousing 159 FOR OFFICIAL USE ONLY n APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ~ FOR OFFICIAL USE ONLY and preparation of the materials for production, the time the materials re- - main in the form of current and reserve stocks using the form: 8 Hopwa o6oporHwx CPCACTD (8 AHAX) Ha BxAd OAHO� norpebxocn CYpbB M M0T!� ~~NCMK)'. AHeexall B O60 OTHNX ocxouxe+r xana Pa3rpyaKy. reKy- ~r axoeoA e xar~A epcACTUax w~~px- p e noAroroeKy ~yHp P HTOro YP' ~r Gxr ~ anos k npoxasoA� 3anac 3anac eA. xau P� P� nyrx crey PY6� l 2 3 4 5 6 7 8 Key: 1--types of raw products and basic materials; ~ 2--materials en route; 3--receiving, unloading, and preparation for production; 4--current stock; - 5--reserve stock; 6--total; 7--1-day consumptian � in physical units or rubles; 8--demand for working , capital (col. 6 x col. 7). On the basis of the working capital standards for eacli type o~ raw product and material, the wcrking capital standard as a whole is figured for the element "raw products and basic materials." 79� The norming of working capital for auxiliary materials. _ The demand for working capital to form the minimum stocks of auxiliary materials needed to ensure the steady operation of the enterprise is de- termined by the same factors and methods as the norming of working capital for the element "raw products and basic materials." However the procedure for setting the standards for working capital for - auxiliary materials differs sdmewhat from the methocl of setting the stand- ards for working capital for raw products and materials. This is deter- mined primarily by the large range of auxiliary materials used at industrial enterprises. A direct detailed calculation of the workin~ capital standards for each type of auxiliary material would be very labor intensive and would not be justified for a number of materials used in insignificant amounts and com- prising a small proportional amount in the consumption of materials. Out of all the auxiliary materials it is possible to isolate the basic ones which are consumed in significant amounts, and to calculate the working capital standards for these types by the direct calculation method. For ~ the remaining auxiliary materials it is advisable to determine the working capital standard as a whole for the group and not for each type. 160 FOR OFFICIAL U:.~ ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 _ FOR OFFICIAL USE ONLY _ Fiaving thus cietermined the working capital standard for all the aiixi.liary materials ancl their 1-da.y consumption considerin~ consumption on production t~nd other ne~�ds, the rec~uired workin~; capital rate fo.r auxiliary materials ~is fi~,ured. 'Phen by dividin~ the total of thi , demand for working capital ~ by the 1-day expenditure of auxiliary materials, the workin~ capital rate is figured for the element "auxiliary materials." The obtained standard can be used in setting rates and standards over a number of years with the appropriate correction for a change in supply conditions. ~ 8~. Setting rates and standards of working capital for fuel. The fuel standard ij c~~",.culated for all types of fuel consumed at the enter- pr~_se, with the exception of gas. The method of determining the workinp; capital star~~ar%1 for fuel is the same as calculating thE standards for ra,w . products and m~~terials. Fuel consumption is set from the estimate of pro- " duction expenditures. - Due to the fact ~hat a rate for gaseous fuel is not calculated, the consump- tion of this fuel is excluded from the total fuel consiunpti:un in the produc- tion expPndituz�e estimate. The value of the fuel consumed in the nonindus- _ trial facilities is added to fuel consumption according to the production expenditure estimate, if this has not been condidered in the expenditure estimate, and in addition the value of the fuel issued to employees from the enterprise stora~;e facilities. The enterprises which use gas r~.s a fuel must have reserve supplies of another type of fuel the rates for which are set by superior organizations. The demand for working capital for reserve fuel supplies is calculated b,y multiplying the average daily consumption of the existing type of fuel by the established standard. - 81. Setting working capital rates and standards for crating. The enterprises use all sorts of crating. The methods of setting rates and Jtar~dards for working capital for crating depend upon the method of acquir- ing the crating (purchase or own-produced), the nature of its use (dispos- able cra~ing or reusable crating which is returned by the consumers), and upon whether the crating is used for packing the finished products or for storing raw products and materials. `rhe enterprises purchase crating or manufacture it themselves for packing finished products. The purchased crating is normed in the same procedure as the materials, proceeding from the conditions of its receipt and the plan of producing that finished product which is to be packed in the crat- _ ing. The working capital standard for own-produced crating is determined by the time of its manufacturing up to the packing of the finished~product in it . . In calculating the working capital standard for crating used on raw prod- ucts and materials, one proceeds from the working capital standard for - those types of raw products and materials which are to be stored in the crating. The standard for the crating equals the time it remains with certain types of raw products and materials, and consequently, it equals the standard in days for these raw products and materials. Also added to - 161 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY this is the ti.mc f~r wa:,hing, repairint; and mrik.iri~, up b~.tches of crr~tin~; For preparin~ it for sale or for reuse at the enterprise. The working c~,pital rate equals the duration of one turnover of the cratin~ _ in cii~tys from Lh~~ c:~tab.li:;hed ti.m~ of pn.,yinE*, for� it imtil t,hc~ t~i:ll i:, :;ul~- mitted to the bank. In the practices of the shipbuilding enterprises, the working capital rate for forming crating stocks is set basically only for purchased crating. 82. The setting of rat,es and standards for working capital used for spare parts. The demand for working capital for spare parts to be used on machines, mechanisms, means of transport and equipment is de- termined by the conditions of supplying the enterprises with spare parts and the conditions of their use. The use of spare parts is not directly related to ~he process of producing the product. However stocks of them are essential for the enterprise in order to ensure the uninterrupted operation of all the equipment. The amount of the necessary stocks of interchangeable parts, assemblies, pieces and other spare parts and the demand of the enterprise for working capital are determined by the composition of the fleet of equipment and means of transport, by the number of machines, by the service life of the spare parts, by their price and by other factors. For this reason the working capital - standard for spare parts is expressed in rubles per 1,000 rubles of the tralue of the equipment and the means of transport (separately for the types of equipment) on the basis of analyzing the actual balances of such spare parts . In order to determine the rate for working capital used for spare parts for the year being planned, this standard is multiplied by the value of the " equipment at the end of the year being planned. ~ 83. Setting rates and standards for working capital for inex- - ~ pensive and rapidly wearing out articles. The inexpensive and rapidly wearing out articles used at shipbuilding enterprises encompass materials which are extremely diverse in their nature, and include: Spe- cial and general tools employed in the productior~ process; office supplies the use of which is not directly linked to the production oF products; special clothing; special footwear, bedding, and so forth. In a ma~ority of instances, in putting the inexper~sive and rapidly wearing out articles into production from the warehouse, one-half their value is written off, and the other half when these articles are withdrawn due to wearing out. Consequently, as an.average their wear with sufficient grounds can be accepted in the calculation as equaling 50 percent of the initial ~ (procurement) value. Articles with a value under 2 rubles per unit are ~ written off as they are issued from the warehouse. For this reason, the , demand for working capital for such articles is planned only at the ware- house. 162 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 , FOR OFFICIAL USE ONLY - Due to the fac~t that by their nature of use in production and employment at the enterprise the inexpensive and rapidly wearing out articles are ex- tremely diverse, for norming the warking capital they are divided into the following groups: Inexpensive and rapidly wearing out general tools; in- c~xpensive nnd rnriclly wc~~.rin~; out office snppl.ies; speci.r~l clothin~*, spe- ci~,l footwea,r anr.i b~ddin~; production packugiri~; specitLl t;ools and speciul fittings. The demand for working capital for the above-indicated groups of articles is determined by direct calculation if special rates are lacking. , Calculating the stocks of general tools and attachments is carried out separately for: Stocks in the central tool storeroom (TsIS) and stocks in operation, at work areas and in the shop issuing stores (TsRK), as well as in the sharpening and repair shops where the sharpening of the tool, the regrinding for other dimensions and repairs are carried out. In this instance the demand for working capital for the tool stock is de- termined by multiplying the calculated circulating stock in terms of tool types by their value considering the transport and preparatory expenses. Often a consolidated method of determining the annual tool consumption is used, in following the consumption standards per 1,000 rubles of gross ~ (commoaity) product or per worker and set experimentally on the basis of analyzing the data for a number of years (in reducing the product volume ' in the instance of a change in price to a comparable series in the prices of the planned year). The demand for working capital for supplies is calculated for the sub- di~isions of ~:he enterprise such as shops, plant administration, dormi- tories, and so forth. The demand for working capital for special clothing and footwear in opera- tion depends upon the length of wear and the value of the individual types of special clothin~ and footwear. For calculating this demand, they use . standards for the supply of one worker in terms of the individual profes- sions as set by the appropriate provisions or collective agreements. ~ The working capital standard for inexpensive and rapidly wearing out gen- eral tools, office supplies, special clothing and bedding is expressed in rubles per worker. The demand for working capital for special tools and attacYunents which ~ also are classified as inexpensive and rapidly wearing out articles de- pends solely upon the particular features of production and is not related to the number of employees at the enterprise. For this reason the work- ing capital standard for special tools and attachments is calculated analytically in relation to that indicator which determines the dema.nd _ for working capital, that is, per 1,000 rubles cf coirBnodi~y (gross) product. - ~ 163 FOR OFFICIAL USE ONLY ` APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY $4. Settin~ r~.tes and standards for working capital for in- corn~~lete production ~.nd expenditure:; of futurc period~,. Thr ~.rnoun~t oi' wor�lcinf; capit~,l ~nvested in incomplete production ie deterrnincd by the total expenditures of the enterprise related directly to the produc- - tion precess, from the moment of the first production operation to the de- livery of the finished product to the enterprise warehouse and the client. The method of calculating the working capital standard in days is most often determined by two procedures: 1) proceeding from the duration of the pro- duction cycle and the expenditure increase coefficient; 2) by dividing the directly calculated amount of stock in the various stages of the production process by the 1-day output of gross product. One of the basic factors influencing the amount of incomplete production is the duration of the production cycle. Here the dependence is a direct one as the longer the process of manufacturing the product, the longer the expenditures are in production, and consequently, the greater the demand - for working capital. _ The production cycle in shipbuilding, in encompassing the work period and breaks, runs into hundreds of days. For setting the rate for working capital, the average duration of the production cycle is determined as a whole for all the articles (of one type) on the basis of the duration of the production cycles of each of them, ihe average duration of the produc- . tion cycle can be calculated as the average weighted amount of the duration of the production cycles for the individual articles and their cost. The demand for working capita.l for incomplete production also depends upon the total expenditures needed by the enterprise in the direct manufacturing of the given product. These expenditures which the enterprise carries out over the entire production process gradually increase and reach a maximum by the end of the production process. If the increase in the expenditures is even over the entire production cycle, then the average amount of the stock standard for incomplete production in days would equal one-half the , duration of the production cycle. However, expenditures in the production process for various types of shipbuilding products grow unevenly. In sueh instances, at enterprises with a long production cycle, for calcu- lating incomplete production, cyclical schedules are drawn up for manufac- _ turing the articles (vessels) with the dividing of the entire cycle into stages. The plan costings for the articles are also organized with the dividing of the expenditures by stages of the production cycle. Here it can be conditionally assumed that the expenditures by stages enter incom- plete production on the first day of each stage. On the b~.sis of such data, the expenditure increase coefficient is deter- mined as follows: 164 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY m G Didi K = i=1 CD~ ' wYiere Oi--thE~ ~unount oI' increase in the expenditures of incomplete produc- tion accordin~ to the plan costin~ for production stage i, rubles; di--the duration of the linking of the increase in expenditures from the beginning of stage i to the delivery of the article (vessel)' to the c].ient, days; C--the cos~ of manufacturing (building) the article (ship),~rubles; D~--the duration of the production cycle, days; m--the number of accounting production stages for the rise in the � expenditures of incomplete production. In pr2.ctical terms, the expenditure increase coefficient in shipbuilding according to the above-given formula is K= 0.55-0.60. On the basis of the calculated average duration of the production cycle and ~ the expenditure increase coefficient, the working capital standar~d for in- complete production is determined as the product of these two amounts. Due to tre fact that the working capital standards for incomplete produc- _ tion a.re calculated in calendar days, and the duration of the production cycle is determined proceeding from the working days, in calculating the warking capital rate, it is essential to introduce a correction factor. This is set by dividing the calendax days (360) by the number of workin~ days per year. ~lnother method. On the basis of the calendar schedule and the stage-by- stage costing at the start of each month for the percentage of technical ' completion one establishes the working capital rate for each article (ves- sel). The total ra,te for the enterprise as a whole is determined by add- ing up the rates for all the articles (vessels) with the addition of the _ rate of incomplete production for nonshipbuilding products to the total. The ratio of the total rate for incomplete production to the 1-day expendi- ! tures shows the stock rate for incomplete production in days. Fox~ the shipbuilding industry plants which manufacture heavy machine build- ing products and vessels with a long production cycle (over 6 months), the ~ working capital rate for incomplete production can also bP calculated by the balance ~nethod, using the formula : Np = Ne+O-B, where Np--incomplete production at the end of the plan year; Ne--Pxpected incomplete production at the start of the plan year; 165 ` FOR OFFICIAL USE ONLY ' ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY 0--expenditures on production determined on the basis of the plans and the cyclical schedules for each article included in the plan; B--product output (~commodity product by plant costs). The amounts of all types of stocks at each shop and in the intershop ware- .houses are determined in quantitative terms by the production department of the enterprise together with the department of the chief production engineer. Table ~+3 Calculation of Average Working Capital Standard and Rate as a Whole for the Enterprise (figures hypothetical) Changes in comparison with Approved by plan of current Elements of working capital plan of ~+th By calculation year _ and calculation indicators quarter of for ~+th quarter current year �f planned year In absolute ~ amount In ~ l. Raw products and basic materials Expenditure for quarter, ' 1,000 rubles 1,312.0 1,218.0 Expenditure for day, 1,000 rubles 14.6 13.5 Working capital standard, days 75 62 -13 -17.3 Rate, 1,000 rubles 1,09~+.0 837.0 -257.0 -23.4 and so forth Having determined by one of the methods the complete demand for working capital for incomplete production, it is possible to calculate the workin~ capital standard by dividing the demand by the 1-day total expenditures on - gross product. The expenditures for developing new types of product are first accumulated in the account "Expenditures of Future Periods" and these are included in - the costs of new products from the moment that they move into series out- put. ~ ~ 166 - FOR OFFICIAL USE ONLY r APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY 'rhe working capital rate for expenditures of future periods can be calcu- l~.ted using the formula N = Be+Pp-Pl, whez�e N--the working capital rate on expenditures of future periods; Be--total money (froni expected execution or bookkeeping t'igures) in- _ Jested in the expenditures of future periods at the start of the _ plan year; PP -expendi~;ures carried out in the plan year provided under the cor- responding estimates properly approved; . Pi--e?cpenditures included in the product costs for the plan year and provided in the production estimate or to be repaid from special sources. - A long-term standard for expenditures of future periods is not set, and the enterprise annually calculates the working capital rate proceeding from the expenditures under this element of working capital for the beginnin~ of the year being planned, the expenditures carried out in the year being planned, and the total repayment of these expenditures included in the product costs of the year being planned. 85. Calculation of the working capital rate for the enterprise as a whole. The working capital standaxds calculated for each element of working capital are the basis fo.r cal.culating the working capital rates foz� these elements for that planning period for the data of which the stand- ard has been worked out. For this reason the working capital standards calculated for each element of working capital are transferred to a summary table which al.so includes ~;he plan indicators for which the standards have beer. ca.lculated (Table 43 ) � - The working capital rate for the enterprise as a whole represents the total of ~he working capital rates calculated for the individual elements at the end of each planned year. The increase or reduction in the working capital r.ate i.s determined as.the difference between the rate at the beginning and end of the year. 167 - FOR OFFICIAI, USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY CHAPTER 10: PLANNING LABOR AND WAGES 86. The content of the labor and wage plan. The labor and wage plan for an industrial (shipbuilding) enterprise is one of the basic sec- tions of a tekhpromfinplan. It includes three ma,jor subdivisions: 1) the labor productivity plan; 2) the plan for the number of industrial-production ~ personnel [PPP]; 3) the plan for the wage fund and average wages of the PPP ~ (separately for the nonindustrial group). The indicators of these subsections are of very important significance for working out and establishing other sections of the tekhpromfinplan and the economic indicators for the production anci economic activities of the enter- prise. For example, the enterprise production program is set considering ~ the growth of labor productivity and the change in the number of employees, the reduction in product costs is related to the saving of labor expendi- . tures, arid so forth. The basic tasks of the labor plan are: 1) the greatest possible and contin- uous rise in labor productivity on the basis of the fullest disclosure and utilization of existing reserves; 2) providing the most rapid growth rate of labor productivity in comparison with the growth rate of average wages; ~ 3) the rational use of working time and a reduction in existing losses; 4) the prevention of overstaffing for workers and management on the basis of introducing progressive standards for working time expenditures and ob- serving the manning rates and staff schedules; 5) providing the required training and skill improvement for the personnel in accord with the require- ments of production development and technical progress; 6) the saving of the wage fund and a reduction in its expenditures per unit of product. The labor plan should be base& on a carefully elaboratei~ pla~ for increasing production efficiency and the planning technical and economic~rates and standards. The content and procedure for elaborating labor plans depends upon whether j~ '~or not the plan is long-range or current (annual). The long-range labor ~.~lans are worked out in two stages at.enterprises. In the i'irst stage they draw up a draft plan based on the ascertained reserves, and i:n the second 1.68 FOR OFFICIAL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY stage they wox�k out a final labor and wage plan based on the basic (direc- tive) indicators which are approved by the superior organization. 'Phe current p].~~.ns are worked out, as a rule, on the basis of the long-ran~,e plans �or the period that the tekhpromfinplan is worked out. This means thai; the basic indicators for tize current plans are already predetermined by the long-ran~e plan and in current planning they are merely corrected, ad~usted and set in more detail in accord with the production plan and the plan for raising production efficiency. 7'he cu.rrent labor plan, like the entire enterprise tekhpromfinplan, is worked out in the second half of the year preceding the one being planned, not only as a whole for the enterprise, bu~: also for the shops, with a quarterly breakdown, and proceeding from the quarterly plans, the shops are given labor quotas for each month. The base indicators for calculating the basic labor indicators axe planned - labor intensiveness and the labor intensiveness standard. PZanned Zabor intensiveness is the conditionally constant labor rate for the individual groups of vessels in the series of one design expressed in norrn-hours. Planned labor intensiveness is used for setting in the fixed indicators the production volume, labor productivity and their dynamics over a number of years. The Zabor intensiveness rate is the labor expenditures by production workers needed to build the given vessel, including the work of ad~usting and im- proving the desig.n in the process of its construction, and the additional labor expenditures related to the practically unavoidable deviations from the production process. The planning and approving of the labor intensiveness for building the ves- sels are carried out in accord with the special sectorial instructions. ~7. Planning a rise in labor productivity. Labor productivity is determined by the quantity of product produced per unit of time (month, quarter or year), or by the amount of working time spent to turn out a unit of product. Labor productivity in the plan is set in absolute terms and in percent of growth over the previous period. The indicator of labor productivity is: 1) For the enterprise, product output per employee of PPP (including the number of ~juveniles): a) in monetary units in a comparable estimate; b) in labor intensiveness in comparable labor intensiveness rates; 2) For the basic shops, product output per employee of the PPP in labor intensiveness in comparable labar intensiveness standards; 169 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200024409-8 FOR OFFICIAL USE ONLY ~i) }~or the sectior~s, product output per production worker in l.abor inten- ~iveness in comparable labor intensiveness standards. Labor productivity is planned at an enterprise by the technical and economic calcula,tions for the pos:;ihle saving of workin~ time according to the fac- tors. The saving of working time in man-hours is expressed in a reduction in the necessary number, tha.t is, it is recalculated in the average savings of the number of PPP. The basic factors which influence the labor productivity level are: I. A rise in the technical level of production. II. An improvement in the organ- ization of production and labor. III. A change in the production vol,sne and the related relative reduction in the number of PPP (without basic workers). IV. A change in the production structure of the products. V. The development of new production capacity. ~ Such a classification of the basic groups of factors is required for all en- terprises in the shipbuilding industry, and from it the enterprises calculate the growth of labor productivity. Each of the designated basic groups in- cludes a nturiber of special factors (Table 44). In calculating the growth of labor productivity for the factors it is es- sential to avoid double counting caused by the fact that individual measures influence a savings in working time for a number of factors, and the influ- ence of each of them cannot be isolated. This savin~s, to avoid double counting, is included in one factor the influence of which is the greatest. The basic possible savings in labor expenditures (the savings in the number of PPP) in the period being planned is the plan for technical development and the organization of production, the concluding of which precedes the working out of the labor plan. . In the plan for increasing production efficiency, the efficiency of all measures which provide a growth in labor productivity is determined. On the basis of the data concerning the efficiency of the measures, the follow- :i.ng standards and rates are worked out, corrected and approved in the es- tablished procedure for calculating the number of PPP: a) the labor inten- siveness standards (the quota for reducing labor intensiveness) in building the ships and manufacturing the product; b) the manning standards and zones for one worker or a group of a certain quantity of equipment, units, devices, areas, and so forth, considering the influence of the effectiveness of the measures; c) the rates for the number of auxiliary workers, engineers, tech- nicians, white collar personnel, junior service personnel and other workers; d) the net annual time fund of one worker for the period being planned (the balance of working time); e) the percentage of fulfilling the time s+andards , in the period being planned. . � Labor productivity considering the savings in the number of workers accord- ing to the factors is determined in the following procedure: initially, the initial number of employees for the period being planned under the 170 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/48: CIA-RDP82-00850R000200024409-8 FOR OFFICIAL USE ONLY condition of maintaining base output; then a possible reduction in it (ac- cording to the calculations) is excluded for all the factors, and as a re- sult of this the number of PPP is found for the period being planned. Hav- ing divided the product volume for the year being planned by the planned calculated number, one obtains the output per employee in the period bein~; planned (labor productivity). The growth of labor productivity due to the influence of organizational and technical factors on altering the niunber of PPP is determined according to the formula: ~ EE�100 PP-Wp_EE' - w}Zere Pp--the percentage of the growth of labor productivity; EE--the total average annual savings in the number of PPP; Ldp--the number of PPP calculated _�or the planned production volume in terms of the output of the base period (year). A percentage of the growth for decline in labor productivity for each factor can be determined individua,lly using the formula: P _ 100 P1 Wr;'- EE ' where PP1--r,ercentage of labor productivity growth for the given factor; E1--savings ir_ number for given factor, persons; � Wp-EE--the number of PPP in the plan period (considering juveniles), persons. In calculating the savings in personnel by the factors it is very important to determine correctly the time of action of the given measure (factor) in the year being planned. For measures which are carried over from t-e previous year or are to be introduced in the year being planned, the average annual savings in the number of PPP must be calculated considering the coefficient for the action of the given measure which is determined by the ratio of the number of months of the action of the measure in the year being planned to 12. For ~ example, if the measure was introduced on the lst of October of the previous (base) year, the coef?i.cient of action for the measure in the plan year will equal 0.75 (9:12); if Lhe measure was introduced under the plan on the lst of August of the year being planned, the coefficient for the action of the measure will equal 0.~+2 (5:12), and so forth. - If the enterprise intends to introduce a range of ineasures (for example, the mechanization of the production process with a simultaneous introduc- tion of NOT), then the possible reduction in the number of workers must be shown for one of the measures having a predominant economic effect. 171 FOR OFFICIAL USE ONLY _ . . : ~r . . . , APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Table ~+1+ Formulas and Methods for Detei~nining the Savings (Increase) in the Number of PPP by Factors - Determining the poss~.ble savings _ (increase) in the number of PPP Explanation ~a) (b) - I. Increase in technical level of production a) From introducing progressive pro- E1--the possible reduction in the num- duction processes ber of basic (production) workers, persons; ~.p~tb_tp~ Qp -the number of product units to be - - E1 = FbKb carried out in the plan period - using the progressive production methods ; ~--the labor intensiveness of a unit ` _ of product under the olcl produc- - tion method, norm-hour; Tp--the same for progressive produc- _ tion methods, norm-hour; Fb--the working time fund worked by a worker in the base period con- sidering overtime; ~ Kb--the average coefficient for ful- filling the standards in the base period . b) From mechar_ization ~,nd automation n0--the number of units of equipment of production equipment (work (work areas) to be automated or areas) mechanized in the year being plan- � np ned; - E2 =(n~NbKsp - q NmKsp)u Nb--the manning standard for the old equipment, persons; . Ksp--the shift factor for the year oe- ing planned; ; Q--the coefficient for the produc- tivity of automated (mechanized) equipment in relati.on to the non- ! automated; P1m--the manning standard for a unit of - automated (mechani.zed) equipment, persons; u--coefficient for the operation of the automated equipment in the year being planned 172 FOR OFFI~IAL USE ONLY -I APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 - FOR OFFICIAL USE ONLY ~ [continuation of Tabl~e ~4] a b c) From mechanizin~ heavy physical Wb--~;he number of woricers in the base labor in auxiliary jobs year the labor of whom is to be - mecnanized in the year being E3 = (Wb - Wp)Kp planned; W~--the number of worlcer: for the prev- ious volume of work after mechaniz- ing the heavy physical ~obs; Kp--the increase factor for the work in the period being planned in comparison with the base - d) From introducing new, more pro- Symbols the same in point "b" of the ductive equipment given group of factors - , n Ew = (npNbI{Sp - q NmKsp)u e) From modernizing existing equip- Symbols same as in point "b" of the ment given group of factors n E5 = ~npNbKsp - q NmKsp)u f) From using new types of materials Qp--the number of units of product to be ca.rrie~ out in the period being Qp~tb_tp~ planned using new types of materi- E6 = als; � FbKb tb--labor intensiveness of a unit of product in using the old materials, _ norm-hour; tp--the same using new materials, _ norm-hour; Fb--the same as in point "a" of the given group of factors; Kb--the same as in point "a" of the given group of factors; II. Improving the organizt~tion of production and labor _ a) From improving the management WbS--the number of management workers structure, the systems of plan- (engineers, technicians and white _ ning and mechanizing planning collar personnel) in the base year; ~ 173 FOR OFFICIAL USE ONLY ' APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 - FOR OFFICIAL USE ONLY [continuation of Table 44] a b and accounting work. The pos- Wps--same in year bein~ planned sible reduction in thc number of ~ _ enginee~s, technicians and white collar personnel is determined by - a direct comparison of the aver- age li.sted number of management workers in the base year with the one being planned, after imple- ~ menting the measures E~ = Wbs - Wps b) By expanding standardization of QS--the quantity of standardized parts, parts, assemblies and urlits assemblies and units; ~tb--the labor intensiveness of a part, QS(tb-tp) assembly or unit in its original Ee = FbKb form, norm-hours; tp -labor intensiveness of the stand- Note. This ~~ne formula is also ardized part, unit or assembly, used in the development of spe- norm-hour; cialization (not related to the Fb, Kb--point I, a introduction of new equipment). - c) From introducing the scientific Qm--the number of units of product to organization of labor be carried out in the year being planned under the revised labor Qm(tb-tp) intensiveness as a result of in- E9 = FbKb troducing the NOT measures; tb--labor intensiveness of a uni~ of product prior to revising the _ time standards, norm-hour; tp -same after revising time standard, norm-hour; - Fb and Kb--see point I, a d) From increasing manning stand- Qm--number of equipment units which ards (extending multitool manning can be switched to multitool man- and the combining of profes- ning in the year being planned; sions) Nb--the manning standard (for equip- ment units) per worker in the base E _ Q~ _ Qm ye~r; 10 - Nb Np Np--same in year being planned ~ 171+ FOR OFFICIAL USE ONLY - i~ ~ 1 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE Oi1LY [ continuation of Table 1+~t ] ~ h e) From increasing the manning Wdb--the numrer of a,uxiliar~r workers standards and zones (combining on duty in b~.se year the profe~.- professions) in auxiliary ~jobs sions of which can bE~ combined, persons; Wdp--same ir_ the plan year after com- E11 =~Wdb - Wdp~Kr bining professional duties in tha~e areas (,jobs) where this is advisable for the base amount of - work; Kr--coefficient for the increase in work in the year being planned (as a result of introducing new production capacity) f) From increasing the use of the Fp--effective working.time fund of one ' , working time fund worker in year being planned, - hour; (F l Fb--same in base year (considering E 12 = I~- 1J Wbp overtime _ l b W~,p--number of basic (production) workers for planned volume of work with the output of base year, persons g) From reducing losses from re- ab--percentage of losses from re,jects jects to cost of gross product in base year; - ab_ ap--same in year being planned; ~'13 - ~ lpp,Wbp ~Tbp--see point "f" h) From reducing deviations from db--the percentage of surpayments for normal operating conditions deviations from normal working conditions to the wage fund of the ' db_dP basic piece workers in the base E1`+ 100,WbpY~ year; dp--same in year being planned; Wbp--see point "f"; Y~--proportional amount of piece work- ers in total number of basic work- _ "ers in year being planned 175 FOR OFFICIAL USE ONLY ; ~ I_ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY [continatuion of Table 44] a b i) F'rom reducin~ the workers who do y~__see above, point "h"' not fulfill the time standards Yo-_the proportional amount of workers in the total number of piece YcYoK workers who raise quota fulfill- E15 - KP Wbp ment from g0 to 100 percent; K--percentage of increase in the ful- fillment of the stiandards by the piece workers who previousl,y did not fulfill the standards; - ~ K.P--average percentage of fulfilling the standards by piece workers in the year being planned; Wbp--see point "f" III. The change in the production volume a) From increasing the production Re--percentage of rise in the volume volume and the related relative of gross product; decline in the number of PPP R~--percentage of the necessary in- (without basic workers) crease in number of PPP (without basic workers) accepted foa^ the R.e_Rn calculation in line with the E16 ~ 100,WaP growth in the production volume; Wap--the number of PPP (auxiliary ~ Note. Ori the basis of many years workers, engineers, technicians, of practical experience, it has white collar personnel, MOP, been established that the in- students and security) in base crease in the service personnel year _ per 100 persons of the increase in basic workers (calculated for the planned production volume for base output) is: - to 25 persons for shipbuilding enterprises; - to 35 persons for machine building and instrument build- . ing eriterprises 1.76 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ~ - FOR OFFICIAL USE ONLY [ continuation of Table A ~ IV. Change in product production structure a) From a change in production pro- TP -proportional labor intensiveness duction structure, that is, from per 1,000 rubles of gross product a change in the proportional in the year being planned; labor intensiveness per 1,000 ~--same in base year; rubles of gross product, includ- Wbp--number of basic (production) ing subcontracting deliveries workers calculated for planned (increase in number reduction volume of work with base output . 'I`b_Tp El ~ ( ,Pb Wbp b) Including from a change in the Ab--proportional amount of subcon- proportional amount of subcon- tracting deliveries in gross tracting deliveries (increase in product of base year, number recuction Ap--same for year being planned, q 10~ E~ ~100-Ab,Wbp V. Development of new production capacity a) Possible increase (reductic.~n) in Qp--volume of gross product planned the PPP during the period of" de- in shop (section) newly put into veloping production capacity operation; which has been newly put into BP--planned output in shop (section) operation (increase in number newly put into operation per i reduction worker; - Bb--output in existing shop (section) of analogous specialty in base E18 = ~ - ~ year per worker . The general formulas and methods for determining the possible savings (in- crease) in the number of PPP (calculated per year) for the groups of factors which influence the rise (reduction) in labor productivity are given in Table 4~+.. ~ 177 . FOR OFFICIAL USE ONLY ~ ~ ~ ~ ~l ~ ~ ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY The calculated growth of labor productivity can be achieved only with care- ful and strict supervision over the course of implementin~ the desi~nated measures both in terms of the dates of their introduction and in terms of the degree of t!~eir actual efficiency. When necessary the appropriate measures should be promptly taken which would ensure their fulfillment and a possible reduction in the times. 88. Planning the number and composition of employees. The number of employees at a shipbuilding enterprise is~planned for the corresponding ~ groups and categories.l All the entergrise employees are divided into two groups: industrial-production personnel (PPP) and nonindustrial personnel. The PPP comprises the basic composition of enterprise employees, and this includes the employees engaged in production and servicing it. The nonin- dustrial personnel includes the employees of the housing and utility system, nurseries and creches, cultural and educational organizations, medical and sanitary facilities, and so forth. Depending upon the functions performed, the entire composition of the indus- trial personnel is divided into the following categories: Workers, engineers and technicians (ITR), office personnel (SKP), junicr service personnel (MOP), students and security. The workers are divided according to the nature of their involvement in pro- duction into basic who are directly related to manufacturing the product, and the auxiliary who serve the basic workers and provide basic production ~ith everything necessary including tools, transport, repairs, power supply, ~,nd so forth. The suxiliary workers are divided into the auxiliary workers of the basic shops and workers of the auxiliary shops. According to the planning mEthods, a distinction is drawn between the work- - ers engaged in normed ,jobs (piece workers) and unnormed jobs (time workers). In addition, the workers are differentiated by professions and skill. In shipbuilding there is a multiplicity of different professions, each of one is further divided into specialties and categories depending upon the skill level. All of this is of important signific;ance in planning, since each enterprise should be provided with personnel of basic and at~iliary workers with the corresponding professions, specialties and skills. The group of engineer.s, technicians and white collar personnel is divided into management and production personnel. ~ ~ 1The enterprise employees axe classified in the appropriate gr~ups and cate- gories in accord with the Instructions of the USSR TsSU of 10 March 1965 No ~+-82, as well as considering the Decree of the CPSU Central Committee and the USSR Council of Ministers of 2 February 1966, No 83, as well as other directive documents. 178 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Tn labor planni;~~; i:he superior organizations set for the enterprises only the total number o~ emplo,yees. The questions of planninf; the number of ~ workers for the individual ~roups and categor�ies as well as the providin~* of personnel of the necessary speci~,lty (except specialists with a higher and specialized secondary education) are settled directly by the enterprises. The basic core of personnel at an enterprise is the workers and primarily the basic ones, as the voltune and quality of the produced product and the labor productivity level depend directly on them. Their numbei~ depends directly upon the volume of gross product, while the number of other cate- gories is indirectly related to the production volume, The elaboration of the labor plan should be aimed at improving the personnel structure at each enterprise and be or.ganized on the basis of a careful study and analysis of the actual needs and possibilities of each individual enterprise. It should proceed from the necessity of a maximum savings of labor. This applies par- ticularly to the plannin~ of administrative and management personnel. The listed personnel includes all permanent, temporary and seasonal employees for whom labor booklets are kept. It includes not only those employees - wh o are employed at the given moment (the so-called reporting personnel), but alsa those who a�re not working at the given moment at the enterprise (sick persons, peisons on leave, persons on an official trip, and so forth). The listed personnel changes constantly as a result of hiring and firing, and for this reasan the presence of labor resources is figured in the form of the average listed number of employees. The average Zisted rewnbe� of employees over the month is determined by dividing the total listed personnel for all the days of the month (includ- iiig days off and holidays) b,y the total number of calendar days in the month. Tbe average listed munber of employees for a quarter or a year is determined by dividing the ~total monthly average listed number of employees over the y~ear or quarter by the appropriate number of months. ' 'Pne basic initial data for determining the number of basic production ~aorkers are: aj the production program for the output of gross product expressed in labor intensiveness standards set for the year being planned; b) tYie effective annual time fund of one worker (the balance of working time); c) the planned percentage of fulfilling the quotas. The number of basic production piece workers is determined, as a rule, pro- ceedin~ from the labor intensiveness of ~ross product (calculated in the approved labor intensiveness standaxds for the period being planned), the eFfect;ive annual worY.ing time fund and the planned coefficient for carrying out the quotas according to the formula: _ ~ Wp FuKp , where Tg -the volume of gross product in the labor intetisiveness standards f.br the period being planned, norm-hoar; 179 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Fu--the effective annual time fund of a worker, hour; Kp--the planned coefficient for fulfilling the quotas. The planned coefficient for the fulfilling of the quotas is: KP = Kb(1-K1)K2(1+K3), where Kb--the coefficient for fulfilling the quotas in the base period; K1--coefficient for the hardening of the quotas according to the plan for revisin~ the st~.ndards; K2--coefficient for inereasing the fulfillment of the standards by reducing internal shift losses K _ 100 - P2 2 100 - P1 ' where P2 and Pi--internal shift losses, respectively, in the base and planned - period, KZ--coefficient for increasing the fulfillment of the standards by all workers from increasing the fulfillment of the standards by work- ers who previously did not fulfill them (in practice the calculat- ing of this coefficient is often disregarded, as its value is in- � _ significantly slight). The number of basic production workers (piece and time workers) employed in equipment and instrument ,jobs where the actions of the workers consist basically in controlling mechanized or automated processes is determined from the work areas and the equipment manning standards. The number of auxiliary workers is determined for normed ,jobs analogously ~ to the calculation for the basic production piece workers; for unnormed jobs, by work areas and manning standards. The calculation is carried out - in a tabular form:~ IJumber of Number N~ber of worker Profession Number of Manning I work areas of by plan for 19_ work areas Standard per sh?ft shifts by plan Reporting Averag listed The number of managers, engineers, technicians and white collar personnel for the enterprise and the shops is determined on the basis of the approved staff schedules for each individual category, proceeding from the organiza- tional structure of the enterprise and the rational number needed for en- - suring the management functions. ' 180 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY The number of the individual specific categories of engineers, technicians and white coi.lar personnel is set in accord with the sectorial rates for personnel or by progressive rates worked out by the enterprise. The indi- ~ vidual employee groups such as designers, draftsmen, copiers, timers, planners, timekeepers and wagekeepers are calculated in terms of manning standttirds and the volumes of work. In t~rms of the number of worker5, the number of shift and senior foremen is deterr,iined. For example, at enterprises at least 25 workers should be - under a foreman; the position of senior foreman is established with three aYid more foremen under him. At large sections with a great and diverse product range, in the event that it is necessary to coordinate the work of the shi.fts headed by senior foremen, the position of section chief is es- tablished. The basic and a.uxiliary shops can be set up with at least 100 persons.2 The number of junior service personnel (MOP) is determined from the existing manning standards or from -~he work areas; for security workers in terms of the ntunber of posts and hours (shifts, continuous, and so forth); for students (average listed) in accord with the plan for training neFr p~rson- nel, as well as considering the training time; the personnel of the non- industrial group, according to the standard sectorial rates, the manning standards and in individual instances from the labor intensiveness of the jobs (broken down into groups for: Housing-utility systems, children's in- stitut;ions, building repairs, cultural and sports institutions). Proceeding from the tasks posed by the 25th CPSU Congress in the area of improving planning and management, a number of ministries have introduced a new procedure which is a normed method for planning the number of managers, engineers, technicians and white collar personnel.3 This method is based upon a calculation of the number of managers, engineers, technicians and white collar personnel for each management function indi- vidually, proceeding from the most important factors which influence the volume of worl; related to the carrying out of one or another function. For example, in determining the number of workers in the supply department, they consider such factors as the range of materials to be received and the products to be produced, the number of suppliers and consumers, and so~forth; in determining the number of employees in the power repair service, they 2See: "Pz�ocedural Instructions for Working Out Individual Personnel Rates" as given in the procedure of the Scientzfic Research Institute for Labor in 1.964. . 3See: "Decree of the State Committee of the USSR Council of Ministers on tYie Questions of Labor and Wages, the~USSR Gosplan, the USSR Ministry of _ F'inances and the AJCCTU Secretariat of 28 April 1967," EKOIVOMICHESKAYA G~.ZETA, No 21, 1976. 181 , FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850ROOQ2QOQ2QOQ9-8 FOR OFFICIAL USE ONLY consider the value of the active portion of fixed productive capital, the shift Factor for the operation of the equipment, and the quantity of con- sumed electric power. The us~ of the normative method will be a new step ahead along the path of irnprovinf; the planning ot' the number of engineers, technicinns and white - collar personnel ut the shipbuilding enterprises. 89. The annual effective working time available (the working t ime balance In the structure of the available working time, a distinc- tion is drawn between: a) the available calendar time (the number of calendar days in the plan period); b) the nominal available time (the calendar time - available minus the holidays and days off according to the calendar); c) the effective time available (the nominal time minus the planned losses and ab- sences). In calculating the effective working time available under the conditions of a 5-day workweek, it is essential to bear in mind that the time of planned _ absences for all reasons, with the exception of regular and additional leaves, is calculated in the workdays of a 5-day week. But the duration of the regular and additional leaves is determined proceeding from the duration of the leaves set by the legislation prior to the changeover to the 5-day week, that is, including the second days off (�aturdays) in the working time. For this reason for correctly determining the number of workdays with a 5-day week, it is essential to determine (by a special calculation) the = number of second days off considered in the duration of the regular and additional leaves, and add them to the effective available working days. The time of the planned absences for each factor is determined by a special calculation and then totaled. The absences (failures to report) with the permission of the administration are planned in mini.mum amounts. Absences without leave and whole-day stoppages and overtime are not planned. The given example of calculating the balance of working time for a worker (Table ~+5) has been carried out with a 5-day workweek and a duration of the workday of 8.2 hours (here the working Saturdays axe not considered in the duration of the workday). 90. Wages. Wages in a socialist society represent a monetaxy expression of that portion of gross social product which becomes personal consumption for the employees and is distributed in accord with the quantity and qual- ity of labor expended by them. = The distribution of consumer goods (in the form of monetary payments) among ~ the members of a socialist society in terms of th~ quantity and quality of the ex~~ended labor is a most important principle in organizing wages and an economic law of socialism. 182 FOR OFFICIAL USE ONLY ,I APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850ROOQ2QOQ2QOQ9-8 FOR OFFICIAL USE Ot~LY Table 1+5 Annual Effective Time Available of a Worker (fi~ures hypothetical) Base Planned � o. Indicators Unit Year Year Note 1 2 3 4 5 6 1 Calendar available time days 365 365 2 Number of nonworking days days 110 107 - Including: a) Sundays and holidays days 60 56 By calendar (b) Second days off (Saturdays) days 50 51 3 Number of calendar workdays (nominal available time) days 255 259 ~ Planned absences: a) Regular and additional leave days 17.6 18.3 By calculation b) Training leave days 2.5 2.7 By calculation ~ c) Training leave with 50~ pay days 0.6 0.7 By calculation d) Leave on occasion of birth days 0.8 0.7 On basis of re- port data eon- sidering change in proportional amount of women I in yr being , planned e) Sick leave days 6.0 . ~+.7 In accord with measures f) Fulfilling social and state days 0.7 0.8 On basis of duties analysis data Absences with permission of days l.a 0.6 Same administration h) Absences without leave (only by report) days 0.5 i) Whole-day stoppages days 0.~+ Total planned absences days 30.9 28.5 5 Ptumber of second days of rest considered in regular and additional leaves days 2.9 3.0 By calculation . - 6 Number of workdays in yeax days -:.227.0 233�5 Line 3- line r (effective) li:~e 5 7 Time losses related to reduc- hrs ~ 0.4 0.3 tion of length of working day 183 FOR OFFICIAL USE ONLY r ; , � ~ ~,I . . ~ I APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ~ [continuation of Table 45] 1 2 3 5 6 ~i?~lua;nfJ: a) For thoue engaged in heavy hrs 0.2 0.2 I3y calculation - physica.l and harmful ,jobs b) For nursing mothers hrs 0.03 0.02 By calculation c) For juveniles hrs 0.04 0.05 By calculation d) Internal shift stoppages hrs 0.08 By calculation e) On days before holidays hrs Q,pS 0.03 By calculation 8 Overtime hrs 0.11 9 Average duration of working hrs 7.$p 7.90 8.2--line 7 day (not counting overtime) . 0 Average duration of working hrs 7.y1 7�90 day considering overtime 1 Effective working time avail- hrs 1770.7 1844.6 Line 6 x line 9 able for one worker not counting overtime 2 Effective working time avail- hrs 1795. 6 181+~+.6 Line 6 x line 10 able for one worker consider- ing overtime N~te. If the working time balances for the production and auxiliary orkers have substantial differences, then two balances are drawn up: ne for production workers and the other for auxiliary workers. The orking time balance is calculated for the shops for a year with a quax- erly breakdown, and for the sections quarterly with a monthly breakdown. Equality of people under socialism means that all members~of society are equal in rela.tion to the means of production, they have a guaranteed right to obtain work.in their specialty and skill, and they receive their share of social product`~n equal grounds, regardless of sex, age or nationality. The consistent ob~:ervance of the law of. distribution according to labor is one of the importa;zt factors for the rapic~ development of the socialist economy contributinE~ to the manifesting of the creative abilities of the Soviet people and erisuring a material incentive for the workers to improve their skills and labor productivity. Each member of a socialist society receives a cer+ain real income for sat- isfying his needs, and this income represents his share in the nstional in- come of the country, or more precisely, that share of it which is used for i1 cons~unption. " ~ The basic portion of employee wages is made up oP the w$ge rates or salaries, the amount af which is centrally Pixed by the state. Here a distinction is drawn between nominal and real wages. Nominal wages are the total earnings 18~+ . . FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 20Q7/02148: CIA-RDP82-00850R04Q24Q02Q009-8 FOR OFFICIAL USE ONLY expressed in mor.ey and received by the eiaployee (or group of employees) over a given period (usually a month). The reaZ tuages describe that quantity of ~oods and services which can be acquired by the employee with the given amount of monetary wages and the given price level for goods and services. In keeping with the development of production and the rise in labor produc- - tivit,y, both nominal and rer~l wa~;es rise. !1 second source for increasing the real income of the members of a socialist society is the pubZic consumption funds which are basically forr,ied from the money allocated far sociocultural measures from the state budget, as well as - from the money of the enterprises, trade unions and other public organiza- tions. From the public consumption funds financing is provided for the child~`en's preschool institutions, schools, technical schools, WZes, vocational-technical schools, libraries and certain other cultural ar~d educa- _ tional facilities, as well as hospitals and polyclinics. From these same funds subsidies are received for the housing system, vacation houses, sani- toriums, pensions, scholarships and aid are paid, and so forth. Due to the large and growing public consiunption funds, Soviet people have such benefits as free education and medicine, the world's lowest apartment - rent and the support of cuildren in nurseries and creches. The-direct pay- ments from the public cons~unption funds as well as the benefits provided from thera comprise a substantial contribution to the basic income of the workers. ~ The Soviet state, as social production has grown, has on a planned basis increased the wages of many employee categories, and above all the low- and rnedium-paid ones. The average wages of workers have continuously risen also as a result c~ the growth of labor productivity and workers skills. Due to scientific and technical progress, in the structure of employed persons there has been a systematic increase in the share of skilled workers, and the share of workers engaged in unskilled labor has declined. The concern of the paxt5- and the governrtent for the well-being of the people is expressed also in a continuous increase in the public consumption funds. 91. The rate system and its role. The or~anization of wages for employees is based upon the rate system. The rate system represents an ag- k;regate of rates which determine the differentiation in wages depending upon the quality and conditions of labor. The basic elements in the wage rate system for workers are the rate-skill handbooks, the wage rates and the wa~e networks. Tl~~ labor of managers, en~ineers, technicians and white collar personnel :is paid for on the basis of salaries. One of the important elements in the employee rate system is also the regional coefficients. The,,rate-skiZZ handbooks are used to set the category of the ,jo~s and workers. The entire diversity of jobs for each profession (specialty) is divided de- pending upon their complexity into a series of categories or skill groups 185 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVE~ FOR RELEASE: 2007/02/08: CIA-R~P82-00850R000200020009-8 ~ ' 6 HOVEMeER i979 OF SNIPBUIIDINt3 ENTERPRISES 3 OF 3 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ~ I FOR OFFICIAL USE ONLY called categories. In a majority of sectors, including the shipbuilding - industry, the ,jobs are di.vided int~ six categories. The simplest ,jobs are in the first cate~;ory, and the most complicated in the sixth~ f'o.r or~;anizin~; wa~es it is essential n~t only to determine the cate~ory for - tlie job, but ~,lso to rate the wcrkers, that is, to assign s category to ~ _ them dependin~ upon the level of professional knowledge and the labor skills. P'or these purposes the rate-skiil handbooks ~;ive the necess~.ry requirements (characteristics) which determine the range of professional knowledge (what the worker should know) and the labor s]:ills (a d~scription of the job whic;z he should be able to perform). The handbook also gives examples of the most characteristic and widely spread jobs performed by the worker~ of the given profession (specialty) and category. The rate-skill handbooks should reflect the achieved level of technology, - - the organization of labor and production, and for this reason they must periodically be revised. In industry a majority of the jobs and workers is rated according to a single handbook employed in al~ sectors. The shipbuilding jobs, as the most spe- cific, are rated in the sectorial handbook. Individual categories are given to workers by special commissions consisting of representati.ves from the man,~.f;cment and thc enterprise tr~,de union organi::ation. l1~, a required con- ciition, involved in the work of the commission is tYie foreman of the corres- ponding section who, as a rule, provides information on the assignin~ of one or anottier category to the worker. In being guided by the demands of the sectorial rate-skill handbook, a com- mission checks the theoretical know~_edge and practical skills of the worker, after which it submits to the leadership proposals on establishing the corresponding rate category for him.4 ~ On the basis of recommer.dations by the commission, the enterprise leader, ~rith the approval of the trade union organization, approves the correspond- ' ing category for the worker in an order which is noted in the worker's labor bookl~t and is entered in the wage documents. Wage rates determine the amount of wages per. unit of time. Wage rates can be hourly, daily and monthly (salary). The amount of wages is determined primarily by the amount of the~wage rate. Within the sector the wage rates of the first category are used to differ- - entiate wa,ges depending upon working conditions, the forms of wa~es and the 4A worker who is a member of a brigade is given a c~,tegory not from the d.ifficulty of the work which the bri~ade performs but rather from the dif- ficulty of the job which he performs independently. 186 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ~ intensity of' prcduction. Depending upon thc workin6 conditions, two-four wage rates are ~et for the first categoz�y. For jobs involving heavy and narmful workin~ conaitions, the wage rates are increased by 10-12 percent a.bove the normal, and for ~obs with particularly heavy and harmful workin~ � conditior~s, lE-2~? percent higher. Ttie wa~e~ rates of the first category are diffei�entiated by the industrial :>ectors, arid using them an intersectorial re~ulation of worker wages is carried out. In ord~r that i,he w~m~ rates perform their role most efficiently, they should correspond to a certain level of ~.verage wages. The wage according to the rate should be approximately 80 percent of the level of averagE~ wages for tirne taorkers and 70 percent for piece workers and for this reason as _ avera~e wages rise the wage rates are periodically revised on a centralized - basis. Ther~age net~,~orks are used to sPt the wage ratios depending upon the skill level. These are an aggregate of the rate categories and the corresponding rate coeificients. The ratio of the rate coefficients for a six-category wage ne~;work for work-~ ez�s of macrine b~zilding (shipbuilding) enterprises is given in Table ~+6. _ . _ _ ~ab1e ~46 Rate Coefficients and Their Ratio C; a.;,egory Indicator - I II III IV V VI Rate coefFicients 1.0 I.09 1.20 1.33 1.50 1.71 . Absolute rise in rate ~ coefficierits 0.09 0.11 0.13 0.17 0.21 Relative rise in ra.te ~ coefficients, % 9.0 10.1 10.8 12.8 1~+.0 _ The rate coefficients indicate by how many times the wage rate of the given r~.tegor,y is above the first. The ratio between the rate coefficients of the ~::treme categor.ies is called the range of the wage network. Before the in- crease in the minimum �aage, a majority of the wage networks in industry had a range of 1:2. 4Tith the increase in the minimum wage, the range of the netwurks was reduced approximately to 1:1.7. In keeping with technical progress-and the rise in the general educational level of the wo.rkers, the qualita,titire differences in labor will gradually 187 FOR OI'FICIAL USE ONLY I , . ' � APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ~ - FOR OFFICIAT, USE ONLY be reduced and for this reason the reduction in the range of the rate net- _ work is natural. The number cf catego~ies in the wage networks will a.lso be ~radually reduced. - `['he w~,~e network (the current one in shipbuilding) is or~;anized accordin~ - to tl~e principle of an increasing relative rise in the rate coefficients. _ fler.e tY:e wa~e rate oF the second category is 9.0 percent ~;rer~.ter th~n the _ preceding one, and the sixth is 14.0 percent greater. Proceeding from the basic principles in the organization of wages, the wage networks should provide the necessary material incentive for improving - skills, and not permit wage leveling and~unsound differences in the wages of worlcers in the higher and lower categories. _ The salary systems are the basis of wa~es for managers, engineers, techni- cians and white rollar personnel. They represent a normative documennt which contains lists of all the positions existing in the given sector with an indica,tion of the raonthly salaries. ~ The salaries of manager,tent workers at the enterpriszs depend upon the group of the enterprise. The group is determined by the production volume, its ~ - type (mass, large-series, small-series and individual), by the complexity of the produced product, by the: level of production mechanization and auto- matiori. Shops ar�e divided into four groups in terms of the salary level of the management, and sections into three. ~ The~ ~sa~.ary~ sys~renrs fcsr each position give the minimum and maximum acceptable a.mount of salary, and this provides an opportunity for the leaders in set- - ting the salaries to adjust their amount considering the personal qualities of each worker. Moreover, the enterprises are given the right to set wage ` supplements up to 30 percent of the salary for highly skilled foremen and ~ other engineers and technicians within the limits of the wage fund set for them, using for these purposes l.percent of the enterprise planned wage fund with permission of the superior economic body. The surpayments for combining professions and functions are set in the same amounts for en- ~ineers, technicians and white collar personnel. The salary systems are used for the intrasectorial ad,justing of wages. For this purpose the salaries for managers, engineers, technicians and white ' collar personnel are set on a differentiated basis depending upon a whole _ - series of factors, the most important of which are: mhe work voltune, the degree of responsibility of the employee, the complexity of the ~ob, the skills of the employee and the labor conditions. RegionaZ coefficients are an indicator for increasing the amount of wages depending upon the location of the en~terprise, and they are a means of the interregional adjustment of wages. For a ma~ority of the eastern and northern regions of the country, the regional coefficients have been set at an amount of 1.1-1.3. For a number of regions of' the ~ar North and their equivalent, coefficients of 1.5-2.0 are used. These coefficients are added 188 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY = to earnings not over 300 rubles a month. If earnings exceed this amount, ttien the coeff~cient-is fi.gured for a total of 300 rubles. = 92. I~'orms and s~~stems of wages. Wages for workers, en~rineers, tecli- ~ n:ici~.ns anci white collar pex~:~onnel are ~.d,justed not only by the r~,te sys- - tem, but also by the wage forms and systems. While the rate system is the basis for the qualitative evaluation of various types of labor, the wage forms and systems establish a certain procedure for calculating wages de- pending upon the quantity and qual.ity of expended labor. _ Iri industry (including s':iipbuilding) two forms of wages are used: piece ar~d tirne. With the piece form, wages are paid for each manufactured unit ' of product or performed unit of a volume of work; with time wa~es, accordin~; to a wage rate or salary for the actually worked time. Both piece a.nd time forms have several varieties of wage systems. The piece form ~.s di~vided intc direct piece, piece-bonus, piece progressive, - indirect piece and job systems. Depending upon the form of the organization of labor, they can be individual or brigade (collec'cive). The time form is divided in+o simple time, time-bonus and a salary. Sdith the direct piece system, the earnings of the worker are directly de- pend.ent ~zpon the quantity of product produced by him (the carried out volume ~ of work) and the rates. The latter are figured by dividing the daily or - hourly wage rate by the shift or :~ourly output standard. The actual piece earnings of a wor~cer with the direct piece system are determined by adding _ , up the pz�oducts of the rate by the actual output for each type of work. ~'he enterprise leaders are given the right to pay additions for professional - _ skill of highly skilled workers in the leadirg professions of the fifth and sixth categories and employed in the most important production sections up to 15 gercent of the wage rate of the assigned category and within the limits of the planned wage fund. With the piece-bonus system, the piece worker, in addition to earnings under the direct piece rates, is also paid a bonus for fulfilling and overful- filling the established quantitative and qualitative indicators, including: . - The fulfil]ment and overfulfillment of the production quo'cas or technically - sound output rates, the acceptance of products upon first submission, the increase in the output of good products, the savings of raw produ.cts and materials, and so forth. The bonuses are paid both from the wage fund and . lrom the material incentive fund for the work results over the year.. T~ie piece-bonus system is a very effective system which has been rather widely spread at the shipbuilding enterprises. For successfully employin~ _ it it is essential that the number of bonus indicators be not more than one or two and that they depend completely and directly upon the work re- ~ sults of the worker. Tne introduction of the piece-bonus systems should 189 _ FOR OFFICIAL USE ONLY ~ . ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY be preceded by a calculating of their economic effectiveness. The bonus ~ payments should not exceed the amounts of the actual savings. - With the piece-progressive wa~e system, the workers are paid ~,t the direct - piece r.ates within the established initial quota, and above the initial rluot~.; at increased rates. The rise in the piece rates is determined by :~~eci~ll scale ciependin~ upon the growtYi of output. With this wage system, ~the e~tirnings of the worker grow more rapidly th~.n the productivity of his labor. For this reason it cannot become a mass and permanent form of wages but rather should be employed temporarily and only at production "bottle- necks." - With the indirect piece system which is used to pay certain categories of - auxiliary workers, the wages are figured depending upon the indica+ors which have been achieved by the basic workers being served or by the sections as a whole. - With the ~job system, the amount of the piece rate is set not for each type - of work but rather for the entire volume (complex) of work as a whole (ac- cording to the current quotas and rates). With brigade piece wages, the earnings of the brigade figured for it at the , piece rates are distributed among the brigade members proportionately to the - worked time and the skill (the wage category). - The brigade leaders who have not been released from their basic ,job in the brigade, under the condition that the brigade fulfills the normed quotas for the month, are paid 10 percent of the wage rate for leading the brigade if the brigade has from 5 to 10 members, and 15 percent of the wage rate with more than 10 r~embers in the brigade. With the simple time system, wages are determined by the amount of the wage rate and the quantity of ti.me worked by the worker. With the time-bonus system, in addition to the eaxnings under the wage rates (salaries) the employees are paid a bonus for achieving certain quantitative and qualita- tive indicators according to the provisions. With a salary, the earnings are figured proceeding from fixed monthly rates , and the number of worked workdays over the given month. The labor of engineers, technicians, white collar personnel and junior serv- ice personnel is paid for under salary and time systems, and only individual categories of these employees can be paid piPC?:,ieal. For example, enter- prise leaders have the right, with the agreement of the trade union com- mittee, to introduce piece wages for designers, draftsmen, typists and other categories of white collar personnel in those instances when they perform work according to uniform or sectorial rates. ` - 190 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY The engineers, technicians and white collar personnel receive bonuses pre- dominantly frotr, the materia.l incentive fund. The bonus i.ndicators are :~ct - on a differentxated basis f.or tne individual eategories ~.nc~ ~roups of warlccr~ considerin~r the specific tasks confronting tt~em. - I3onu:~ condii;ions ~.re al^o set. Por example, if the basic indicator for k,onu~es .is the volume of sold product, then tlie required bonus condition:; - can be the fulfillment of the plan for profit and the range of the produced product. In addition to required bonus conditions, where bonuses are not , paid with their nonfulfillment, additional bonus conditions can be set and with the nonfulfillment of them the bonus can be reduced up to 50 percent ~ w:th the agreement of the plant trade union committee. For managers of an enterprise (shop) who have allowed an overexpenditure of the wage iund, the bonus is reduced by the amount of the overexpenditure (but by not more than 50 percent). If within 6 months the overexpenditure is made up, then the designated employees are paid 50 percent of the bonus - which was not paid to them because of the o;rerexpenditure in the wage fund. Enterprise employees also receive remuneration for the w~ork results during the year from the material incentive fund. This remuneration is paid pro- ceeding from the actual earnings of the employee, his length of employment a;t the given enterprise and attitude toward the carrying out of his produc- tion duties. Individual employees can be fully (or partially) depl�ived of bonuses and - remuneration for the worY results of the year both for production over- sights and for violating labor discipline. The depriving or reduction of bonuses or remuneration is drawn up as an order of the leader with an indi- - cation of the established reasons. 93� Calculation of the average category, the average rate coef- ficient ar~d the average wage rate. Along with the individual wage , cateoories, the wage networks and rates, for the purposes of determining the average skill of the workers, for planning the wage funds and for an- - ~.lyzing the labor indicators, the enterprises determine: a) the average ca,tegory of t~ie workers and jobs; b) the average rate coefficient for the work;~rs and job; c) the average wage rate of the workers and jobs. ~ The average category Ra is determined as an average arithmetic amount weighted for the number of workers (jobs): workers R~ - ~--~lPl " _ ~Rtiti a - ~pl , jobs Ra - ~tl ~ where Rpi--the wage category of the workers in group i; pi--the number of workers of category i; Epi--the total number af workers of all categories, persons; ~ Rti--the wage category of type i of jobs; 191 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR Q~'~''~'ii:1F?L uSE ONLY ti--lrzbor intensiveness of category i of jobs; E~i--total labor intensiveness of all ty;~es of ~obs, norm-hour. - The average wage coefficient Ka is determined as an average arithmetic amount weighted for the number of workers (~obs): __l.__ for workers Ka = lpi ; - EPi � EKtiti for ~obs Ka = ~tl , where I{Pi--the wage coefficient for group i of workers (of the given category); - pi--the number of workers in group i, persons; Epi--the total number of workers for which the aver~,~e wage coeffi- cient is being determined, persons; ' K.ti--the wage coefficient for the volume i of jobs; ti--labor intensiveness for volume i of jobs, norm-hour; Eti--total labor intensiveness for all i,jobs. The average wage rate Ca is calculated as the average arithmetic value of the wage rates weighted for the number of workers (labor intensiveness): for workers C~ = lpi - ~ a Epi ~ for obs C~~ - ~Ctiti J a - Et , i where CPi--the hourly i wage rate for the category of the given group of workers, rubles (kopecks); pi--the number of workers paid at wage rate i, persons; Epi--the total ntunber of workers for whom the average wage rate is - determined, persons; - Cti--the hourly wage rate i of the category for ~he given volume of work, rubles (kopecks); ti--labor intensiveness of job i paid for at the given wage rate, norm-hour; Eti--the total labor intensiveness of all jobs. g~+. Planning wage funds at an enterprise. The planned wage fund includes all the monetary payments to the employees under the piece rates, wage rates and salaries; the various additions and surpayments for night - work, on holidays, for leading a brigade, to.women during the nursing of children, to juveniles for the short workday, for the regional coefficients, and bonus payments to workers under the piece-bonus, time-bonus and other s,ystems, with the exception of the bonuses paid from the material incentive fund. 192 FOR OFFICIAL USE ONLY I APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 = FOR OFFICIAL USE ONLY ~1 wa~e fund may be ~n hourly, day or monthly (annual) wa~;e fund, These funds are basec] upon tt~e direct wage .fund and tt~is consists of the p~.yment of piece workei~s by the rates and time workers by the time rate. The otYi~~r ` funds a,re formed by various planned additions which are provided for under the labor legislati.on to the direct w~~;e fund (T~~le ~+7 The amount of the planned wage fund should provide the wages owed all cate- gories of employees for manufacturing the planned product and carrying out the designated jobs. The planned wage fund as a whole for the enterprise is determined: 1) by a consolidated calculation method in working out the draft plan; 2) by the method of calculating the wage f~znd by personnel categories. The wage fund for the shops is determined solely by the calculatio:~ method using worker - categories. ~1ith the consolidated calculation method, the planned wage fund for the en- terprise is determined on the basis of analyzing the expenditure of the wage fund in the current period and the planned rise in labor productivity in the ' period being planned. On the basis of the expected average wage during ~:he current period and the planned growth oF labor productivity, the optimum' ~;rowth of average wages and their absolute amount are pro,jected. Here it is important at each enterprise to ensure the more raFid ~rowth of labor productivity in comparison with the growth of average wages. Only in this instance is a relative savings of wages achieved and the expenditure of wages per unit of product reduced. The amount of the growth of average wages (not counting payments from the material incentive fund and benefits for the Far North) for the shipbuild- in~ enterprises should be set depending upon the proportional amount of en- - gineers, techniciaris and white collar personnel (Table ~+8). IIaving thus determined the amount of the rise in average wages in the cur- rent period and the approximate number considering the growth of labor pro- ductivity, it is possible to calculate(roughly) the total wage fund for the enterprise PPP. In planning the total wage fund by the calculating using employee cate- ~ories, it is essential to have the following initial data: 1) the labor intensiveness of the production program; 2) the working time budget in,the period being planned; 3) the p,~.anned number of workers by profession and skill; the current enterprise wage rates, the staff schedules for en- ~ineers, technicians, white collar personnel, MOP and security, salaries and bonus system~. The wage fund for the basic production workers of an enterprise (shop) is calculated proceeding from the wage rate (the expenditures on wages per norm-hour considering additional wages) and the production plan expressed in labor intensiveness quotas. 193 � - FOR OFFICIAL-'JSE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Table ~+7 _ Wa~e Funds and Types oP Additions Addition~ `.Cypc:~ oi' Wr3,~r,c F~'und:, p.tanned Unplanned Func3 for Fund for piece time rates rates Direct wage fund I For piece-bonus and For piece workers per- piece-progressive forming job below systems. assigned category Bonuses of time worker To average day earn- lddition to hourly fund~ For night work ings of worker in For class rating previous month For brigade leaders for For deviation in _ directing brigade normal working con- Payment on holidays ditions For training students Other additions Payment to day fund For juveniles f'or short For overtime workday For work on holidays . Payment for breaks in Paymer.t for re~ects work of nursing mothers not faizlt of worker Payment for stoppages within shift - Day wage fund Payment of regular and Payment of compensa- additional leaves tion for unused ' Payment for time per- leave Addition to monthly forming social and Payment for severance (annual) fund state duties aid Payment for workers sent Payment for whole-day to other enterprises or stoppages - Monthly (annual) for study wage fund Cost of free utility services Other additions - 194 FOR OFFICIAL USE ONLY - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 - FOR OFFICIAL USE ONLY Table l~~i ftate for Tncrease in Average Wages (Approximate) for 1~ Rise in Labor Productivity Proportionp.l amount of Growth of ~.verage wages (not engineers, technicians counting payments from material and white collar personnel incentive fund and benefits of in total number of PPP, ~ the Far North) per l~ rise in labor productivity, % to 25 0.30 from 25 to 30 ~.25 from 30 and over 0.20 - Table ~+9 ~ Calculation of Average Weighted Wage Coefficient of Jobs (volume of work hypothetical) Product of the wage Volume of work, coefficient and the in 1,000 norm-hr volume of work Category Wage (or number of (or number of ~ coefficient workers) worker~) 1 1.0 2 1.09 200.0 218.9 3 1.20 250.0 300.0 4 1.33 400.0 532.0 5 1.50 150.0 225.0 6 1.71 50.0 85�5 Total 1,050.0 1,360.5 Note. The average wage coefficient for the jobs is 1.3 (1360.5:1050). - The wage rate (considering all additions) is calculated for each shop once a year and is approved by an order of the enterprise director.5 ~5With significant changes in the structure of the production program caucing a sharp change in the rating of the jobs, the rate can be revised and re- . approved by an order of the enterprise director. 195 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Table 50 _ Calculation of Average Hourly Wage Rate of First Category (witliout additions) (figures hypothetical) Product of Volume Wage rate volume of Types of ~obs Network and category of work, of lst work and - of ~obs 1,000 category, rate of lst norm-hr kopecks category Marking Piece-cold 50.0 47.9 2,400.0 ' Cold metal � , cutting 100.0 47.9 1+,790.0 Assembly Piece-hot 55~�~ 53.9 29,500.0 Welding " 300.0 - 53.9 16,100.0 Forging Particularly heavy 50.0 57.6 2,880.0 Tota1 1,05~ 55,670.0 Note. The average weighted wage rate of the first category (without - addition) is 53-1 kopecks (55670.0:1050). The rate for the value (for wages) of 1 norm-hour and ~the total wage fund for ~:he production workers are calculated in the following procedure: 1) the~average weighted wage coefficient for the jobs in the shop is calculated (Table 49); 2) the average wage rate of the first category (without addi- tions) is calculated (Table 50); 3) the average value (for wages) of 1 norm- hour is determined; the amount of additions and additional wages is de- termined as a whole (in absolute and relative terms in relation to direct wages) (Table 51); 5) the full planned rate for the value (in terms of wages) of 1 norm-hour and the total wage Yund for the production workers are de- termined (Table 52). 1. The average wage coefficient for the ,jobs will be 1.3 (1360.5:1050) (Table 49). 2. The average weighted wage rate of the first category (withou+ additions) . will be 53.1 kopecks (55670.0:1050) (Table 50). 3. The average value (for wages) of 1 norm-hour considering the wage rate of the ,jobs is 53.1 x 1.3 = 69. 0 kopecks. The calculation of the amount of additions and additional wages as a whole (in absolute and relative terms) for the basic production workers is given in Table 51. For the example the volume of gross product of the shop 196 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Table 51 Calculation of Additions and Additional Wages ~ (figures hypothetical) llbsolute ~ _ No. Content of parts of wages Unit value Note 1 2 3 1~ 5 - 1 Volume of gross product of norm-hr 600,000 Set hypothetically planned period 2 Direct wa,ge fund rubles 41~+, 000 69. 0� 600, 000 100 ~ Addition to hourly fund ~ ~ - a) xor piece-progressive system " 12,5G0 By calculation b) for piece-bonus system " 35,800 " c) for night work " 1~5pp d) working brigade leaders " 850 " e) for training students " 1,100 " f) for holiday work " 530 Determined from report g) other additions " 9~+0 data for previous peri od 3 Total additions to ?:ourly fund rubles 53,220 � 4 Additions to hourly fund in percent of direct fund q 12.9 (53220:414000)�1000 5 Total hourly wage fund rubles 467,220 (414000 + 53220) Addition to day wage gund a) for juveniles for short workday rubles 1,200 By calculation b) for nursing mothers " 950 r~ c) other additions " 580 Determined from re- port data for previous year 6 Total additions to day fund rubles 2,730 ~ 7 Additions to day fund in / of direct fund ~ 0.66 (2730:41~+000)�100 8 Total day wage fund rubles 469,950 (2730 + 467220) 197 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 - FOR OFFICIAL USE 011iLY - [continuation of Table 51] 1 ~ 3 4 5 Additions to monthly (annual) wage fund a) payment of regular and additional leaves rubles 25,500 By calculation b) payment of training leaves " 4,100 " c) payment of 50~ of pay- ment leaves " 500 " - d) payment for time spent carrying out state and social duties " 1,200 " e) severance aid " 730 Determined from re- f) payment for years em- port data for ployed " 3,100 previous year g) other additions " 1,~+20 9 Total additions to monthly (annual) fund rubles 36,~+50 - 10 Additions to monthly (annual) fund in ~ of direct fund ~ 8.9 ~36530:41~+000)�100 11 Total monthly (annual) wage fund rubles 506,400 (36450 +1t69950) 12 Total additions to direct fund " 92, 400 ( 53220 + 2730 + 36~+50 ) 13 Total percentage oi additions to direct fund % 22.b (92~+00:~+14000)�100 Note. The calculation of the full planned cost rate (for wages) of 1 norm-hour and the monthly (annual) wage fund for basic production workers is given in Table 52� (enterprise) in the 7_abor intensiveness quotas has conditionally been set as equal to 600,000 norm-hours. 5� The calculation of the full planned rate for the value (in terms of wages) of 1 norm-hour and the monthly (annual) wage fund for the basic producti~n workers is given in Table 52. 198 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240020009-8 FOR OFFICIAL USE ONLY _ Table 52 Calculation of Rate and General Wage Fund for Production Workers of a Shop (fi~ures h othetical) No. of Absolute - ~ection Content of Parts of Wages Unit Value. Note 1 Average cost of norm-hr without kopeck 69.0 By calculation additions - 2 Additional wages in ~ of direct By calculation, f ~d ~ 22. Table 51 3 Same in absolute terms kopeck 15 (69.0 x 22. 100 , 4 Full planned wage rate for basic production workers per norm-hr kopeck 8~+.1+ (69,0+15,4) 5 Planred volume of tross product per shop per year in labor in- From conditior. tensiveness quotas norm-hr 600,000 of example 6 Total annual wage fund for ( 600000 x 8~+. ) basic production workers rubles 506,400 100 The rate wage fund for auxiliary workers paid piecemeal is determined in an ~ ~ analogous manner as for the basic production workers. For the production program they use the volume of auxiliary ,jobs in labor intensiveness quotas. The rate wage fund for time workers is determined proceeding from the hourly wage rate of the corresponding work.er category (considering the working con- ditions), the number of time workers by categories and the available working ` time in the plan period. Additional wages to the wage fund of auxiliary workers are determined in the . same manner as for basic workers. The planned wage fund for students [apprentices] is calculated proceeding from the wage rate of a student, the number of students, the period of in- struction and payment conditions, tliat is, this is the product of the monthly wage rate of the student, the coefficient for fulfilling the quotas (with ~ piece wages), the number of students and the period of instruction (in months). The planned wa~e fund f'or engineers, technicians, white collar personnel, - MOP and security is determined on the basis of the approved staff schedules and sa,laries. The wage fund for these categories (with the exception of 199 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240020009-8 - FOR OFFICIAL iJSE ONLY uecur.ity) sho~ild be reduced by the amount of unp~,id absences (for sickness, - statutory leaves, and so forth), and a coefficient considering these ab- ~ences is set on the basis of report data. In addition, for these employee cate~;ories, leave pay, the carrying out of state and social duties, additions _ for breaks to nursing mothers and other such additions are not planned sep- _ ~.ratel,y. Additions for night work are also not planned for engineers, tech- nicians and white collar personnel. The annual planr.~:d wage fund for engineers, technicians and white collar personnel is calcul~,ted in a tabular form: Planned Average Annual wage Total planned Employee annual fund by Coefficient annual wa e category number, ;;alar considering ~ y, salaries, fund in persons rubles rubles ~Paid absences 1,000 rubles At enterprises which are in areas with an increased regional coefficier~t, in the planned wage fund for all categories of the PPP, they consider additions for the regional coefficient within the established amounts. In the planned wage fund provision is also made for wages to the studerits of vocational-~;echnical schools (PTU) for work performed by them during the period of job training. This fund i.s calculated on the basis of report - data on the a.mount of student earnings and the number of them. _ The calculated wages for the work performed, as a rule, are transferred and paid out at the PTU. The formulas and methods for calculatin~ additions to the direct wage fund are given in Table 53. 95� Planning the labor indicators for shops and sections. The - basic (directive) indicators of the labor and wage plan for the shops (for the year, quarter and month) are worked out at the department for l~,bor and wages (OTiZ). They are approved by the enterprise leader. The labor and wage plans for the sections are worked out and approved by the shop leader- ship. Providing a cor_tinuous rise in labor productivity at a pace that outstrips the growth of average wages (considering payments from the material incen- tive funds) is a basic task both for the enterprise leadership and the ~ shops. 200 F'OR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONL`I - Table 53 - I'ormulas and Methods of Calculati:ng Additions (additional wages) - Name of Additions and Calculation Method Fxplanation (a) ~b~ . Additions to hourly wage fund: a) Bonuses for piece-progressive A~--the wa~;e fund for basic production _ system workers by basic piece rates, - rubles; P_B P--planned percentage of fulfilling _ Dpr = Ac p~ the quotas; . B--initial base for calculating addi- - tions, Kp--coefficient for an increase in piece rates for each percentage of ~ overfulfilling the quotas above initial base . b) F3onuses for piece-bonus system A~g--the wage fund for basic piece rates (separately for first and second worker groups), rubles; , Usp = A~~ P-B Kp Ppr--established bonus percentage ac- pr cording to current statute (sep- arately for first and second - worker groups) _ c) For night worY. Ca--average hourly wage rate, kopecks - Kn--coefficient for addition to wage C K T W rate for each hour of night work D_ a n n n - n - 100 ~1/7)~ Tn--available night work per year per - worker, hour; Wn--number of workers on night work, persons d) Working brigade leaders for leading brigade: from 5 to 10 persons--l0o (of monthly rate of brigade _ leader) 201 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICLAL USE ONLY - [continuation of Table 53] ~ b from 10 persons and more--15~ (of monthly rate of brigacie leader) e) Total additions to workers for Payi~~ent for each student per month trainin~ students is determined with simultaneous instruction respec- by multiplying the cost of tively with ordinary working condi- training one student by number tions and harmful and hard: ~ of trainees in period being 1 student 7 rubles-10 rubles ~ planned 2 students 5-8 3 students 4-6 - 1+ an~i more 3.5~-5 � f) Additions for work on holidays Determined from report data for pre- and other addi�:ions (except vious period and from other sources those listed above) describing their amount Additions to Day Wage Fund a) To ,juveniles for short workday Ca--average hourly wage rate of juveniles, kopecks; C hW� h--number of preferential hours per ~ D~ = 100 year per juvenile; W~--number of juveniles, persons b) For breaks for nursing mothers Ah--hourly wage fund of workers, rubles; - Yb-~-proportional amount (in q) of Ahyb breaks for nursing child in total ~ 100 available working time is deter- - mined by formula Yb = b~ 100; � P b--losses of working time in nursing _ child (set from working time bal- ance), hr; DP-=number of working days in year be- - ing planned; Fp--effective available working time, hours 202 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 = FOR OFFICIAL USE ONLY [continuation of ~1'able 53) - ~ b - c) Ott?er additions to day fund Determined from report data for pre- (except those listed above) vious period wit~ corresponding ad- ~ustment Additions to Monthly (Annual) Wage Fund a) Payment of regular and addi- Ad--day wage fund, rubles; tional ieaves Dp--number of working days in year being planned; ,qddo do--average planned daration of leave, D,e = D days P b) I'or time of training leaves Ad--day wage fund; Dp--number of working days in planned AdD year; . Dtr = D Dy -average duration of t.rai-ing P leaves - Note. In calculating additions = for leaves paid at 50%, a coef- - ficient of 0.5 is added to the formula c) For tim~ spent carrying out Ad--day wa~;e fund; f state and social duties DP -number of work days in year being planned; A D DS--average duration spent carrying _ DS = D S out state and social duties , p d), e), f) Severance aid, payment Determined from report data for pre- for number of years employed vious year and from other sources . and other additions to monthly describing their amount . (annual) wage fund ror determining the percentage of growth for the production voltune and labor productivity to the corresponding base period, it is essential to calculate the planned production volume in the labor intensiveness quotas . for the base and planned periods. With these data available, it is possible ' 203 FOR OFFICIAL USE ONLY ~ ~ , ~.r . - . . . ~ . APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 _ . FOR OFFICIAL USE ONLY to determine the reduction factor for the labor intensiveness of the planned period (as the quotient of divida.ng the planned production volume in labor intensiveness quotas for the planned pe~iod hy tlie same production volume in the labor intensiveness quotas of.tlie base period~. With the aid of the found coefficient, the production vollune of the base ~ period in the labor intensiveness quotas of the period being planned is ad,justed. As a result the output of the base and planned periods become comparable, and it correctly reflects the percentage of growth of labor pro- , ductivity. Such a calculation is made once a year. Its results depend upon the preciseness of working out, approving and systematizing the labor inten- siveness quotas for the shops as well as for the orders and the years. The labor and wage plan of a shop should include the d.irective indicators ` which are approved by the enterprise leader and the internal shop calculation indicators approved by the shop chief. - The directive indicators include: Output per worker in norm-hours and in - percent of the corresponding period of the previous year; the total number - of PPP; the total wage fund; the material incentive fund; average wages of one employee (considering payments from the material incentive fund) and in percent of the previous year; the full planned wage rate for basic workers - per norm-hour (considering additional wages). The internal shop calculation indicators for the labor plan include: The number of personnel by categories; the wage fund by categories; the systemat- ization of the labor intensiveness quotas for the articles (orders) and as a whole for the shop. :[t is recommended that the labor and wage plan of a section include the following indicators: a) the production volume in labor intensiveness quotas for the period being planned; b) output per worker in norm-hours; _ . c) the number of production workers; d) the wage fund of production workers, including the fund of the foreman. 20~+ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ~ CHAPTER 11: THE COSTS AND PRICE OF PRODUCTS IN SHIPBUILDING 96. The cost of shipbuilding products. Costs represent the expendi- tures of the shipbuilding enterprises on producing the product and selling it. Product costs express the value of the consumed working capital, the share of fixed capital which wears out in the production process (amortiza- tion deductions), the share of live labor paid directly to the employees in the form of wages, and the share of surplus product in the form of deduc- tions for social security of the enterprise employees. Product costs are a portion of the value of the product expressed in a mone- tary form. There is a quantitative and qualitative distinction between product costs and its value. The quantitative difference is that the accu- _ mulation created at the enterprise is not included in the product costs, except the deductions for social security. The qualitative difference in product costs from its value is, in the first place, that there is a sub- stantial difference between the expenditures of the consumed means of pro- duction and their monetary expression, and this difference depends upon the - price level set for the means of production, and secondly, product costs - axe determined proceeding from the individual labor expenditures and the production conditions ~t individual enterprises, while the expenditures of socially necessary labor U~nderlie product value. ~ In addition, it is essential to bear in mind that the individual product costs of the separate enterprises do not coincide with the real outlays on their procluction, since a portaon of the expenditures of necessary labor .relating economically to the enterprise is not included in its product costs. Tn par.ticular, the costs of a self-financing enterprise do not include a number of expenditures which axe recovered from the following sources: From profit in its redistribution, including the expenditures (with the ex- _ ception of amortization) on the maintenance of buildings and installations ' of the.cultural and educational.institutions, health and physical culture measures, on the running of nurseries, parks and pioneer camps, the losses of the housing and utility system, and credit interest; from a direct re- duction of financial results, including unproductive expenditures such as penalties, losses and fines paid, losses from canceled orders, losses from natural disasters, and from operations of previous years discovered in the ~ 205 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY report year; from economic incentive funds~ including bonuses for engineers, technicians and white collar personnel as a portion of their wage; by pur- chaser enterprises (organizations1 to suppliers in the price (c.i.f, the station of the consignee) and including the average value of transportin~, the freight.l Regardless of the common economic content of the expenditures to be included in the cost of industrial products, the forming of costs in the individual industrial sectors and subsectors has its particular features. In ship- building, the most import~,nt are: The conditional nature of cost planning - for the prototype and first vessels in a series, the paxticular features of including expenditures on additional work in product costs; the procedure for determining the amount of reducing the cost of subsequent vessels in a series; the particular features of including the expenditures related to developing new ship designs in the costs of shipbuilding products; the pro- cedure for assessing incomplete production for shipbuilding products; the incomparability of the total amount of expenditures with the production volume; the use of specific planning and accounting units, and so forth. � 97� Classification of production expenditures , All ex~enditures - on the production of products at industrial enterprises are calculated in different ways. One of the most important ways for clas~ifying production outlays is to divide them into the economic expenditure elements and the expenditure costing items. The grouping of expenditures by economic elements _ is used for compiling the expenditure estimate for production, and by cost- ing items for calculating and analyzing the costs of co~nodity product. - In shipbuilding, the composition of the economic cost elements and the cost- ing items differs somewhat from the ones used in machine building generally (Table 54). In turn, production eYpenditures are furthez� classified depending upon: Their participation in the production process, into basic expenditures which are directly related to the production process, and expenditures related to the serving of production and. management; upon the method of classifying expenditures in the costs of a unit of product, into direct and indirect ex- penditures; the relation of the given type of expenditures to the production volume of the enterprise, into proportional expenditures, that is, those which rise directly pzoportional to the growth of the production vollune, and nonproportional, that is, they change not directly dependent upon the product output volume. In addition to the above-indicated ways of classi- fying expenditures, they are also divided into expenditures which depend upon the operation of the given enterprise, and those which do not depend upon the enterprise. 1"Kal'kulyatsiya Sebestoimosti v Promyshlennosti" [Costing in Tndustry], edited by A. Sh. Margulis, Moscow, Finansy, 1975, p 6. 206 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Table 5~+ Range of Economic El~rnents and Costing Items Used in Sfiipbuild3n~ _ Economic Elements of Exrznditures Costing Items of Expenditures 1 2 R~,w products and basic materials Raw products and materials (minus recoverable wastes) Recoverable wastes (subtracted) Own-produced semifinished products Including: . Purchased preassembled articles Purchased preassembled articles, semi- and semifinished products finished products and services of subcontracting enterprises Contractual deliveries and work Contractual deliveries and work (used (employed only by shipbuilding only by shi.pbuilding and repair en- and repair enterprises) terprises) Auxiliary materials Fuel and energy for production purposes - Fuel Basic wages of production workers Energy Additional wages of production workers Wages, basic and additional Deductions for social security Deductions for social security Expenditures on preparation and de- Amortization of fixed capital velopment of production . Other expenditures ~penditures on maintenance and opera- tion of equipment Other special expenditures Shop expenditures General plant e~penditures Losses from damage _ Other production expenditures Total production cost Nonproduction expenditures Full cost ~ 207 FOR OFFICIAL USE OI~TLY - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY iable 55 gives a classification of the expenditure elemen+�s for the produc- tion of product at shipbuilding enterprises~2 ~ 98. Types of costings used in s~fiipbuildi:n~. ~or determining the ' _ cost of a unit af product in shipbuilding, prel~.ninary estimate, report- � technical and report-estimate, plan and report c>>stings are employed. The preliminary estimate costings are drawn up separately for the prototype , and series vessels, and they axe used for determining the approximate prices - for vessel.s under construction. The report-technical costings are drawn up for the prototype vessels, and report-estimate ones for series vessels. These costings are used for setting the wholesale prices for the vessels. _ _ The planning costings are worked out for each vessel to be included in the _ commodity product. They are designed for planning the cost quotas f~r building the given vessel and the cost of the plant's commodity product. 'I'he report costings are drawn up from the actual expenditures on producing - the vessels. This type of costing is used for evaluating plan fulfillment in terms of the costs of shipbuilding products and for disclosing reserves for further reducing them. _ Plan, normative and report costings are used for planning, accounting for and analyzing expenditures on the production of nonshipbuilding products. 99� The content of individual costing items for product costs at shipbuilding enterprises. The item "raw products and materials" includes expenditures on basic materials. In individual ins~tances the ex- penditures on auxiliary materials are also inc'uded which are used in the process of manufacturing the given article for ensuring the normal produc- tion process. If the cost of the auxiliary materials used for production purposes is an insignificant proportional amount in the costs of the articles and the dis- tribution of these expendi.tures is complicated through the estimate rates of a product unit, it is allowable to put them against the expenditures on the maintenance and operation of equipment. . In shipbuilding and ship repairs, the cost of auxiliary materials (compressed air, oxygen, acetylene, and so forth) for production purposes as well as the cost of basic materials used for providing temporary utility facilities in the period of building the vessels axe put against the item "other special expenditures." 2As the basis of the current classification, we have used the scheme given in the book: "Ekonomika Sotsialisticheskoy Promyshlennosti" [Economics of Socialist Industry], edited by Prof L. I~ Itin, Moscow, Vysshaya Shkola, - 197~+, p 521. 208 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY � ~ ~ ~ i a~ ~ ~ ~ ~ i i ~ q S q N~~ v rd ~n = d ~ tn I~-~ q�^ 4~ r-I , Q d w w w w w w ( F~ O fA N O ~ I �rl ~-i ad O d ~x ~~o ~ ~i u~ a - ~ rl U1 N p~ N ~ ~ = a a~ a~ a~ o+~ w~ ~ p uv ~ ~ ~ ~ ~ ~ .yi ~ =a G w w r w ~ ~ o. ~~o = w w ~ e0 ~ i~ .f. 4i O a~ ~o ' ~ ~ o y, 3 ~ o d ~ U F3 1~ N ~ ~ = a ~ ~ ~ �r~l 'd ~p~ N r~-I ~ �rl H i e 7� ~ o 0 0 ~ ~ ~d O?C rl ~rl N ~ ^ ~x = = C . C ~ ~ P~ i~ ~ ~ o a _ ~ n 4a a0 ~ ~I ~ ~ � s ~ O~ FS I{~ U a z z s ~ ~ O.o ~ u] � o d o a s ai C: ~d m�rl a1 ~d ~ s d o ca a O�rl O N c o m ~ o~_ �rl eS ~ Tti m ^ Ty U ~ u ~~-I c a'~,~aXi~'~''av d-N P r~ aNi Qi' 0 0 ~ F' F x ~~d f~-~ 'd ,t7 ~ ~ .~s u a a v ~ - o a~ I ~ " a W 1 cd m,sq ~ m Y~ ~ a o ~ ~ af m N r~i ~ O O N a � ~ G C z~ ?~a~~ ~o~~ " R c - ~ I ~ �rl ~U1 ~ ~d ~ir ~i n ~ N ~s � ~ ~ m ~ ~ N P y ~ ~ F d d ~ d ~ ' u u s O a~~i ~ ~d �Q CNi ~ t~j ~ m 7~1 S . = ~ W L - L~. cd ~ �ri � ~ _ ~ Q � I ~ + ~ m � ~ ~ a S ~ ~ ~ N�^ I N N~d r-{ o H C o p d 40 v1 I+~ N'~ W u ~ ~ ~ ~ j ~ O ~ ~ ~ r-~I ~Cf 4-~ m F F 4J �~-I �r1 ~d N~ o _ .c.~x a~i~~+~~�,a~i~~ =x amx a~ u a v, v, O z7 oa49E4�ma a�~+ c~a S N N d N cd 1 u x x a= r~= r ~ + p o. o ~ ~ ~I ~ O~ a~d U~1-~ f~ _ ~ KQ C,~qo�a~ C C C I 4-~ ~d t~ v x ~ ~ ~ r, " N� v�'i i i w~ ~ ~ 4-~ �a ~ N p ~ ~ j ~ ~ q a y � a ~ ~ x ~ ~i ~ ~ c~i a~"i ~ a o m a G O~~?~ Ul N N O'~" I r'~ ~ ~ u o a ~ O u C v $ "f' ~ �rl ~ f-~ ~ I �rl U u�i ~e1�, a`cx?$ea~�~' ri 1 N u q 3~~ ~ Q ~ ~ .N X N ..7 I ~ ~ O � ^ 1 ch ~ � ~ N ~ ~D ~ ,d a o = s x s a s u� ~ ei o.~ rd `,-~n ~ -~r. ~ y x 3 ~ z ~ x H ~ O ? O ~I u i~-~ �rl ,~,zY dmxFSS mn,=sve~xx X~ v fr rl I N R~ U ~F�.a ao ~ c � �u a,~ ~~'S 'd a y r'~-I N rd pi m~ a�. `j csi p n' u p cr, F i"' C p$ a. t" Q o 4-~ �rl N tA �C ~~o~F" yo~w~~~C>+=~' S~ O~ U�~ N.~ 1 ~ ~ ~ K" ,~x m oo~ a o�~+~~d cn ~ ~ ~ v ~ ~ i o ~ ~ ~ ~v~, ~q '~c ~ r-t u a~ b a~'a ~d a~i o a~i - a~ ~ ~d a i ~ ~ ~ o w~b~d ~n o 209 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY i i - ~d ~ u~ - ~ o ~ ~a F ~eks ~ ma ~m ~ QF~~ x a~ o;~ c~"i 3 m T".a ~w~+ C. F ~ ~ N O q ~ N ~.D ar"'~ Q ~ ~ ~ N ~ ~r1 N 1 o a O u a~ . � ~ O I.~ ~ O v J ~ m W; -I- -I- Y ao Q ao m�~ Q ~ a~ i u` ~ m o a~ al x u fr H a a ~ ~ o rN-I $7S � ~ + + + ~ ~ O p ~ ~ H �q ~ a _ ~d o~~+a~+~ a r~ ~ Sy ~i N .'y ~ a~ u O q y, ~d ' ~ o oasm ~ rd~~40~~d ~ u m x o r~l a m o~~ o I ' I p ~~d ~.~s-'. o q C ~ ~ ~'j 4F V 'J'i O V �rl ~ a C 4-I _ 40 N ~ i W~ ~ ~ ~ 1 ~ ~ r~l s k a� x = nT rl m= ~ w w ~ y~~ a~ o ,i ~ ~ g " e~ o. r'.~' ri W �r! ~d m m c ~ cd ~ t~ ri 1 N u~ yx ox~ ~,s ~ �O ~ ~ ~ ~ vm mm oxsx~x vi~d O tn - ~ a pm ~ 4c+u>+s~ I I O ro Np~ rd 3 N o~ � m c'' F = aK, a~i ~ x c,~', � t~ k~ i~ ~C ~ ~C~C y'~'~SO~ .w v w ~ 0 ~ ~ N ~ u m bp tj a~ N a~ ~ W~ ~ q C _ ~ ~y ~j ~ ~ rl ~ �rl ~o ~ w i Y= q~msso s s o i~ ~ a7 oaQ*_c~a K r u ae. _ o ~ a O z .i.' N ~ N',a~ ~ tA ae ~c~O'~O ~ +C-~~ ' ~ ~ ~ 3 r-~ o ~ m .zJ ~ ~I ~ ~ aa ~ix k a� ~,s az S ~ a~ ~ N~ oa F oasd oomv x>.s m N W~ Q~ N ma m` xp~ ~x o a~xr�J-x~ ~ ~ Q m~~ V. V x = m a0 t, ~ N~ ~ fC T~4 ~ G. V Q. ~ ~ ry"~ ~ Y'~ ~ ~ m p~, ~ aE"'~ F a F� a s o m y c~ ~?4 ~ : p C ~ v v" rx� �u ' N N N�ri C7~ t7 ~ 4-1 40 ~ ~ ~ ~ !ti N w ~ p'v cs ~d ~ q ~ a~ N o ecO� a ~ ~ozs 3~ + ~ u~i 4-i~ ~xs~ ae z.c~~ ~o~ ~ N 1~d v m G7 p~ I �ri 'r7 ~y ! o T x v ti~~ T~ a~�e ii ~~d W U dua $ ~sKO, c~,;yu H N r~+~ O.ti I m" F i ~ d ~ o,-, ~ rl o P~ o rl ri O a dm n u C~ o a~i z ~ 210 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ' The item "own-produced semifinished products" reflects the v~,lue of the semi- _ finished produc~s of onc's own pre~aratozy shops, that is, castings, for~ed and stamped.pi~eces, as we11 as expenditures on the pa~tial processing and finishing of own-produced semifinished products. This also includes the value of -~he finished products under the ran~e of interplant subcontractin~ _ and contractual deliveries manufactured for own needs. The item "purchased preassembled products, semifinished materials and services of cooperative enterprises" includes the value of the finished a~rticles and semifinished products acquired by subcontracting for making up the produced product. _ The item "recoverable wastes" indicates the value of production wastes which have formed in the process of processing the rak* materials and semifinished materials into the finished product. The value of the wastes is deducted from the item "raw products and materials.r` The item "contractual deliveries and work" (used only in shipbuilding and repairs) includes the value of inechanisms and articles fully completed by the contracting p]_ant and ready for assembly on the vessel, as well as con- ~ tractual work related to the installation of ship equipment and electrical equipment for the vessels. The item "fuel and. energy for production purposes" reflects expenditures on all types of fuel and energy directly cons~ned in the production process, both received from the oatside and generated at the enterprise itself. In particular, this includes expenditures on fuel and electric power for melting units, forging-stamping machines and equipment, the testing of tur- bines, diesels and other machines (except the vessels), and energy for pro- ducing compressed air, oxygen and refrigeration. The cost of the fuel consumed for testing the vessels is accounted for in the item "raw products and materials," while the cost of the consumed energy in building the vessels, as was pointed out above, is reflected in the item "other special expenditures." The item "basic wages of production workers" plans and accounts for the basic wages of workers for the work done directly in manufacturing the product, the engineers and technicians who perform production operations, tihat is, are engaged in manufacturing the product, adjusting, repairin~, and so forth. The basic wages of the production workers include the follow- ing payments: Payment for performing operations and jobs according to _ piece rates and quotas, wages for workers employed directly in the produc- tion,;process or individual production operations under the time wage system; payment for average earnings in the period of an official trip involving the carrying out of the production process; additions for the piece-bonus wage system, bonuses for a job relating to technically sound quotas, for the quality of the work performed; bonuses to time workers, additions for the regional coefficient and other additions. 211 FOR OFrICTAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY The item "additional wages of production workers" includes payments to pro- duction workers stipulated by the labor legislation and by the collective agreements for time not worked in production. This includes; Payment for regular anci additional leaves; compensation ~or unused leave upon dismis- sal or the transferral of the employee to another enterprise; payment for the preferential hours to ~juveniles; payment for breaks in work for nursing mothers; payment for the time related to carrying out state and social duties; the payment of severance aid; the payment to donors for the days they are oFf the job; payment of remunerstion for the niunbers of years worked, and so forth. The s~ne item includes the additions to oasic wages for production workers above the rates and established categories, namely: Bonuses from the wage fund for the fulfillment of the plan, bonuses from the foreman's fund; addi- ~ tions to average earnings in the event of being transferred to another ~ob out of production necessity or to light work according to the rulings of ' the VKK [medical consultation commission] and the VTEK [medical commission for determination of disability], for pregnancy and births, during the period of nursing a child; additions paid to workers for 3-6 months for work under new quotas in revising the quotas on the basis of introducing organizational and technical measures; additions to the workers for combin- ing ,jobs; the addition of the intercategory difference; the addition for overtime; the addition for night work; the addition for work on days off and holidays; the supplement for work in the regions of the Far North and equivalent localities; the addition for the class rating of drivers; sur- pay:nents to working brigade leaders for leading the brigade. The item "deductions for social security" includes the deductions for social security according to the established rates (7.7 percent) of the total basic and additional wages of the production workers. ~ The expenditures included in the item "expenditures on the preparation and - development of production" include the fo'llowing expenditures: On the de- velopment of new enterprises, types of production, shops and units (starting- up expenses); on preparing and developing the production of new types of products and new production processes; on deductions into the development fund for new equipment and the bonus fund for the creation and development of new equipment. The item "expenditures on the maintenance and operation of equipment" in- cludes expenditures on maintenance, amortization and routine repair of the production and materials handling equipment, valuable tools, as well as wear and expenditures on the replacement of inexpensive and rapidly wearing out tools and attachments in general use. In shipbuilding they use a range - of expenditure items for the maintenance and operation of equipment which is common to all the machine building enterprises. = The item "other special expenditures" reflects the following expenditures: On the manufacturing, purchasing and repair of special tools, attachments and fittings; tlie carrying out of special episodic testing; to pay for 212 FOR OFFICIAL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFTCIAL USE ONLY expert evaluations related to the production of individual products; for serving the building of tne vessel from its l~.ying down to delivery, and so forth. In plannin~; ~nd accounting the other special expenditures are grouped accordin~ to the .followin~ items (Table ~6). The item "shop expenditures" includes: The wages of the shop management personnel; amortization and expenditures on the upkeep and routine repair of buildings, installations and general shop supplies; expenditures on ex- periments, research, rationalization and invention of a shop nature; expend- iturss on measures relating to labor safety and other shop expenditures re- lated to the management and serving of production. The actual shop expenditures also incl.ude losses from stoppages, losses from the spoiling of materials in storage in the shops, losses from unutilized - parts, assemblies and production fittings the spoiling of which has been . the result of plannin~ failures, a shortage of materials and incomplete production (minus s~arpluses), and other unproductive expenses. The item "general plant expenditures" includes expenditures related to the managing of the enterprise and the organizing of production as a whole: Wages for the personnel of the plant administration with deductions for - social security, expenses on business trips and traveling expenses with the moving of coworkers, for of'ficial trips and the maintaining of passen- ger cars, office, printing, postal-telegraph and telephone expenses, amor- _ tiz~,tion, upkeep and routine repair on buildings, installations and gen- ~ eral pl~,n+, supplies, expenditures on the organized recruitment of the labor force, on training personnel, taxes, fees and deauctions, expenditures on ~ enterprise security, on the support of the superior organizations and other expenditures of a general plant na~ture. The actual expenditures also include the expenditures of a nonproductive nature, including: Surcharges on the electric power rate (with a low use factor for the capacity of the electrical equipment); losses, spoilage and shortages of raw products, materials, semifinished materials and finished products at the plant warehouses and other unproductive expenditures and losses minus the obtained surpluses of raw products, materials and so forth. The item "losses from rejects" reflect expenditures on finally rejected products, articles and semifinished products spoiled in the setting of the equipment above the established rates, as well as expenditures on correct- ing the damage. Re~jects in production are considered to be the articles, semifinished prod- - ucts, pieces, assemblies and jobs which in their quality do not meet the established standards or technical conditions, and cannot be used for their specific purpose or can be used only after correction. 213 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000240020009-8 I~OIt U1~CICIAL USE ONI.,Y Table 56 Group of Fxpenditures for Item "Other Special Expenditures" No. Itern Naane Description of Item 1 2 3 - 1 Ma,nufacturing, pur- Cost of manufacturing, purchasing and repair chase and repair of of special tools and attacYunents which can be special tools and used only in producing individual products specific attachments (models, chill molds, casting boxes, dies, (for machine build- ingot molds, rolled shafts, and so forth,as ing and instrument well as various special tools and special at- building products) tachments, regardless of their value) 2 Repair, mainten- Expenditures on repair, maintaining in working ance in working order, modernization and replenishment of oper- order, moderniza- ating stock of special tools and special fit- tiion and replen- tings (cutting, measuring and assembly tools, ishment of operat- models, chill molds, casting frams, dies, press ing stock of spe- molds, as well as tilters, ,jigs and various cial tools and devices for the assembly of sections, mocking- special fittings up molds, temporary scaffolds and enclosures, (for ships and and so forth) ship repairs) Including labor intensiveness of work 3 Expert evaluations, Fxpenditures to pay for consultations, expert consultations, sci- evaluations and services of scientific research entific research and organizations having direct bearing on the individual labora- manufacturing of the given article or vessel tory work Cost of laboratory research and testing of materials, semifinished products, equipment and ` individual instruments 4 Upkeep of technical Expenditures which, as a rule, are planned and bureaus, departmerits, accounted for within the shop and general plant laboratories, and so expenses (expenses on the support of the tech- forth nical bureaus, departments, laboratories and so forth) related to the production of only certain types of products (except instances when these expenditures are repaid by the cli- - ent above the wholesale price of the article or from special allocations) 5 Losses from unutil- Losses from unutilized parts and assemblies of ized parts and as- obsolete designs tirhen these losses have been - semblies of obsolete a conseque~~ce of the current modernization of design (only in ac- the given article for the purpose of improving . countin~) its quality, raising reliability and durability - 214 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY [continuation of Table 56] 1 2 3 (in those instances when these one-shot addi- tional expenditures are repaid not from the fund for the development of new equipment _ 6 Design and draf~;ing Cost of work of the TsKB [central design bureau] work, compiling of for serving vessels during construction within ~ technical plans and the range stipulated by the contract: service by designers -cost of serving builder plant by designers of TsKB on the questions of replacements, recti- , fications caused by the production method, participation in testing, mocking-up, and so i'orth; -payment of the TsKB for xerox copies of tech- nical specifications; -cost of correcting working plans and other technieal specifications related i;o change in buil.ding methods and the improvement of design 7 Energy of all types Energy of all types for serving vessel on way~s, for serving vessel slips and launched: , -air for operation of pneumatic tools; -electric power for tempoerary lighting, charg- ing of batteries and electric welding on the vessel; - -steam for heating the interior areas of the _ vessel, for warming tanks in testing for ~ water-tightness and for other needs; -water for testing compartments for water- tightness, for feeding boilers and other needs of the vessel; -water of increased purity for special purposes; -gas as energy (oxygen, acetylene, carbon dioxide) 8 Laying of temporary Manufacture, installation, testing, repai�r and _ utilities for serv- operation of temporary utilities (temporary air ing the vessels on line, electric network, temporary heating, the ways and afloat steam line, temporary communications, and so ' for all types of forth) for serving the vessels on the ways and _ energy, as well as afloat for all types of energy (electric energy, the maintaining of steam, water, air and so forth). The cleaning ~ the quarters and of the vessel during its time on the ways and vessels in a working afloat.� state Including labor intensiveness of work Not e. The wages for woriters engaged in the ~ listed ,~obs under this item ar.e accounted for 215 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY - [continuation of Table 56] 1 2 3 only in the instance th~.t the wages are not con- sidered in the item "basic wages of production ' workers" _ 9 The running of issu- Basic and additional wages and deductions for ing depots and spe- social security of the workers of the issuing cial services serving depots and special services, basic and auxiliary the building and de- materials, expenses on upkeep and operations, livery of ships and so forth. 10 Serving of vessels Cost of work of all types of plant transport with lifting and related to delivery of the stock of ship equip- _ transport equipment ment and mechanisms from the plant shops to the on the ways, s1ip, ways, slips or to the mooring of the vessel in launching and afloat: afloat -cost of loading:work of floating, rail and truck cranes; -cost of work of tugs in launching vessel and _ its moving around yard waters, towing vessel - for testing, transporting various cargo for the vessel ancl workers to the mooring of the vessel; -cost of diving work during launching, lifting on the quay, delivery to the dock and other expenses. Not e. The maintenance of ways cranes serving _ the building of the vessel on the ways is not considered in this itme. The wages of the crsne operators for these cranes are considere~l in the shop expenses. 11 Amortization of Amortization of ways, slips with equipment dur- ways, slips and ing the building of the given vessel on them other various hy- from the moment of the beginning of preparing draulic engineering the ways and the slip until they are freed. works�(covered slip Not e. In using the ways, slip and other , = docks, docking hydraulic engineer works simultaneously for the basins, and so building of several vessels, the total amorti- forth) zation deductions are distributed to them pro- . portionately to the area occupied by them 12 Docking Cost of using one's own or other's dock, in- _ cluding payment of expenditures for putting in, lifting, standing, launching and fu11 servicing of the work of the building yard for all types of energy 216 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY [continuation of Table 56] - . 1 3 13 Production trips in- Payment of per diems, lodging and travelin~ ` volving the installa- expenses for workers, engineers, technfcians - tion, buildir_g and and white collar personnel sent to conduct . testing of vessels testing on the product, for gaining the approval ~ and other articles of the supplier plants for technical specifica- tions for building equipment, for installing articles on the projects, for participating in the delivering of the product (projects). The payment of the per diems, lodging and travel allowances to workers who provide services to other plants in building the vessels, if such payment is provided under the conditions of the contract. - l~+ Observance of the Payment for observance of iJSSR Register and USSR Register and technical supervision at approved rates. - technical supervi- sion 15 Insurance of parti- Payment of state life insurance for the parti- cipants in the test- cipants of the testir~g of vessels and articles ing of vessels and articles 16 Transporting of Payment of rail rate in transporting parts of disassembled ves- vessels to assembly point vels 17 Other expenditures Expenditures on special clothing Payment for work to workers brought in for building vessels from other yards, the services of ~ther yards ~ - Including labor ~^+^r_s;,rnr.c~~ of the work . Payment for translation of technical specifi- cations to foreign language Payment for inspecting sanitary state of vessel Pilot's fee Other expenditures Total - Including labor intensiveness of work of pro- duction workers L17 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000200020009-8 . FOR OFFICIAL USE ONLY Re,jects are divided into correctable and noncorrectable (final). Correctable re,jects are considered to be the articles, semifinished materials (pieces, ' a.ssemblies) and ,jobs which after correction can be used in their specific - purpose and tY~e correction of which is technically feasible and economically advisable. A final re,ject is the name given to articles, semifinished prod- ucts, pieces and ,jobs which cannot be used in their specific purpose and the correction of which is technically impossible and economically ill-advised. T}ie article "other production expenditures" reflects all other expenditures not relating to the previous items. The "nonproduction expenditures" basically include the expenditures related to the marketing of the product, and in particular the expenditures on crat- ing and packing the products, expenditures on delivering the product to the station (pier) of dispatch, loading into the cars, vessels, motor vehicles and other transport; other expenditures related to the marketing of the product. 100. Plannin~ production expenditures. The calculations for the planning of production expenditures at the enterprises are generalized in a summary document which is termed "Estimate of Production Expenditures." It includes the expenditures made by all the enterprise structural subdivi- sions involved in producing the industrial product. Here an exception is _ made for the expenditures of the structural subdivisions relating to other national economic sectors (construction, agriculture, the housing and utili- - ties system, and so forth). The total expenditures reflected in the estimate of production expenditures includes not only the expenditures on producing the commodity product, but also the expenditures related to the increase in the balance of incomplete _ production, the expenditures of future periods and the providing of services not included in the gross product. - The estimate of production expenditures is compiled by the ~roduction plan- ning department for the year with a quarterly breakdown. It is worked out on the basis of the following data: The calculating of expenditures on raw products, materials, production fuel and energy in basic production; the calculating of the a.mount of basic and additional wages for the produc- - tion worker,~ in basic production; the estimate of expenditures (the costing of the product) for the shops in auxiliary production; the estimates of expenditures on developing and preparing the production of new types of articles, units, production lines and shops; the estimate of expenditures on the maintenance and opera~ion of equipment; the estimate of general plant and shop expenditures; the estimates of other special expenditures; the estimates for transport and preparatory expenses; the estimates of non- , production expenditures. The structure of the estimate of production expenditures is given in Table 57� 218 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000200020009-8 FOR OFFIGIAL USE ONLY Table 57 Estimate of Production L'xpenditur.es (fi~ures hypothetical) ~ I3y plan No. Content of Expenditures for year, 1,000 rubles 1 . 2 3 1 Raw products and basic materials (minus recoverable wastes) 5,920 2 Purchased and preassembled articles and semifinished products 1 610 ~ 3 Auxiliary materials 530 ~ Fuel received from outside ~+12 5 Energy received from outside 1~28 6 Wages, basic and auxiliary 5,250 7 Deductions for social security , l~pl~ 8 Amortization of fixed capital 1,742 9 Other expenditures ' 813 10 Contractual deliveries and work 7,235 11 Tota1. production expenditures (total of lines 1 thru 10 inclusively ) 24 ~ 3~+~+ 12 Expenditures on work and services not included in gross product 1,830 Including: repayable from fund for development of new ' equipment 540 13 Change in balances of expenditures of future periods 120 14 Change in balances of reserves for pending expenditures 80 15 Cost of gross product (line 11- line 12 - line 13 - line 14 ) 22,31~+ 16 Production costs of co~nodity product (by special calcu- ~ lation) I 20,150 ~ 17 Change in cost of balances of incomplete production, semi-- finished products and own-produced tools (line 15 - line 16,1 2,164 18 Nonproduction expenditures 2(2 19 Full cost of.commodity product (line 16 + line 18) 22,314 20 Commodity product in current wholesale prices 26,120 21 Profit loss from production of corrmiodity product (line 20 - line 19) 3,806 22 Expenditures per ruble of co~odity product, kopecks ~ ~ (line 19:line 20) $5,5 23, Change in the cost of balance of unsold ~roduct (at ware- house or dispatched) (by special calculation) +210 24 Cost.of salable commodity product (line 19 - line 23) 22,104 25 Value of salable commodity product (by special calculation) 25,8~+9 26 Profit loss from product sales (line 25- line 21+} 3,745 219 - ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY 101. Planning the costs of commodity product. The cost of the total commodity product and its individual types is planned from the cost- in~ items. In the planning calculations for the cost of co~nodity products, a system of indicators is used, and the basic ones are: The percenta~e of the decline in the cost of comparable product, the expenditure level per ' ruble of commodity (salable) product, and the cost of a unit of product. The delcine in the cost of comparable coirunodity product represents a per- centage savings from the reduction related to the cost of the corresponding product types in the base year. For determining the reduction in the cost of comparable product over the level of the previous yea~, the planned pro- duction volume of each type of comparable commodity product is multiplied by the planned product cost of the year being planned and the average annual cost of the product of the base yeax. The difference between the first and second product representing the savings from the reduction in the cost of comparable product related to the second of them and expressed in a percent- age is the amount of the plan reduction in the cost of comparable commodity product. The expenditures per ruble of commodity product are determined by dividing , the cost of the commodity product by its value in the wholesale prices of the enterprise. The reduction in expenditures per ruble of commodity product in the plan is established by technical and economic calculations using factors which in- fluence the change in the cost level of the commodity product in the year being planned (Table 58). These factors are appropriately grouped. I. The factors which bring about a rise in the technical level of produc- tion: a) mechanization and automation of production processes, the intro- _ duction of advanced production methods and a~~comated control systems; b) the modernization and improvement in the operation of the employed equip- ment and production method; c) the introduction of new types and the re- placement of the required raw products, materials, fuel and energy; d) the change in the design and technical specifications of an article and an im- provement in product quality; e) other factors which raise the technical level of production. II. The factors which bring about an improvement in the organization of production and labor: a) an improvement in production management; b) an improvement in the organization of labor and the use of working time; c) the improving of material and technical supply; d) the elimination of unproductive expenditures and losses; e) a reduction in losses from re- jects; f) other factors related to improving the organization of produc- tion and labor. III. Factors related to a change in the structure and volume of the pro- duced product: a) a relative reduction in the conditionally fixed expendi- tures (except amortization) caused by a rise in the volume of produced product; b) an improvement in the use of productive capital and a related 220 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ~ Table 58 Summary Calculation for the Reduction in F.xpenditures per Ruble of Commodity Product by the Technical and Economic Factors (figures hypothetical) Total , Indicators 1,000 rubles A. Commodity product in prices compared with previous year 26,120 B. Expenditures per ruble of conunodity product of base year, ~ kopecks 87.0 _ C. Cost of commodity product of year being planned proceed- ing from the expenditure level of the base year (A x B), ~ 1,000 rubles 22,721+ D. Savings frc~m reduction in costs in year being planned by groups of factors, total ~+10 Including: l. A rise in technical level of production 185 2. Improvement in organization of production and labor 35 3� Changes in structure and volume of produced product 138 ~ Sectorial and other factors 52 E. Cost of commodity product in comparable prices and condi- tions with base year (C - D) 22,314 F. Expenditures per ruble of corrunodity product in prices and - conditions compared with base year (E:A), kopecks 85.4 G. Reduction in expenditures in relation to level of base year I100 B -100~, % -1.8 - l - relative reduction in amortization deductions; c) a change in the structure , - of the produced product. IV. Sectorial and other factors: a) a change in the voltune of additional work; b) a reduction in product costs related to a decline in expenditures on th.e production of the subsequent vessels in a series; c) the influence on product costs of the incomparal~ility of expenditures with the production volume. 102. The characteristics of inethods for accounting and calculat- ing product costs. At shipbuilding enterprises all methods of accounting and calculating pro- ~ duction expenditures axe employed, including: Order, p~oduction stage and normative. Here the order and production stage methods are ordinari~y em- ployed with elements of normative accounting. 221 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY The order method of accounting both with the use of elements of the norma- tive method and in a pure form at present is the most widely found in ship- building. It is used in accounting for expenditures on production and cost- ing of shipbuilding products, for ship repairs, in manufacturin~ complicated articles, and in carrying out experimental work and repairs. With the order ~ method of accounting, the individual production order is the ob,ject of ac- counting and costing, as the order brings to~ether all the expenditures on production broken down by the costing items. The accounting for production expenditures with the production stage method is carried out for the production stages, and within them by the product types. It is used in the metallurgical, foundry and forging shops of the machine building enterprises. The essence of the normative method of accounting for production expendi- tures and product costing is that with it production expenditures are ac- counted for with a subdividing into expenditures according to the current rates and standards and accounting for expenditures which deviate from the - standards. With this method of accounting, the actual product cost is _ determined by adding the deviations from the standards and changes in the standards to the normative cost (or by subtracting from it). The normative method of accounting and costing in shipbuilding is employed in manufactur- ing series-produced nonshipbuilding products and shipbuilding products accounted for in lot orders (small shipbuilding). Accounting for expenditures and product costing in the auxiliary shops and sections producing a simple standard product without semifinished articles and incomplete production are carried out according to the single production - st~,ge or simple method. This applies to the costing of steam, compressed . air, electric power, oxygen, water, and so forth. The expenditures related to the serving and management of production are incorporated in product costs in costirg'it in the following manner. Ex- penditures on the upkeep and operation of equipment are distributed be- tween the individual product types proportionately to the basic wages of production workers (without additions under the progressive-bonus system). The including of the shop and general plant expenditures in product costs as a rule is carried out proportionately to the total basic wages of the production workers (without the additions under the progressive bonus sys- tems) and expenditures on the maintenance and operation of the equipment. 103. Analysis of product costs in shipbuilding. In analyzing the product costs in shipbuilding at enterprises, a study is made of the indi- cators for the production expenditures on gross product, the reduction in the costs of all and compared commodity product in percentages; expendi- tures per ruble of commodity product in kopecks; the cost of a unit of the most important produc~ types. The tasks of analyzing product costs include: L'valuating the tautness of the plan quotas for the above-given indicators, determining the degree of fulfilling the plan for product costs, ascertaining 222 ' FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ~ FOR OFFICIAL USE ONLY the factors w:~ich infliaence a deviation in the actual expenditures on pro- ducin~ the product from those set in the plan. F'or an analysis of product costs, various sources are employed including plan, report and accounting. The plan sources of information include ma- terials from the five-year, annual and operational plans; the reporting sources are the annual reporting forms including form No 5"Production Ex- penditures," form No 6"Costs of Commodity Product," form No 7"Expenditures on the 5er~ring of Production and Management," the costing of the most im- portant product types: The periodic reporting under form No 1-c "Report on " the Cost of Commodity Product," and others. The informative material for analyzing product costs is found in the normative, planning and accounting documents. _ In analyzing the estimate of production expenditures, one determines tr.e deviation of production expenditures for each item and the expenditure esti- mate as a whole. The basic question of analyzing expenditures per ruble of commodity product is to establish the factors which influence a deviation ~ in the actual expenditures per ruble of corrunodity product from those set in _ the plan. These factors are: A change in the structure of the produced product; a change in the wholesale prices at the enterprise; a change in the level of expenditures on individual types of produced products; a chan~e in prices for mater.ials and rates for energy and shipping. In analyz~ng the costs of individual product types by the costing items one determines the deviation of actual expenditures for each costing item from those established in the plan. For material expenditures the deviation of actual expenditures from their planned amount can occur due to deviations - from the established consumption rates for material resources or because of a deviation from the set prices. A deviation in actual wage expenditures from the planned amount can happen because of a change in labor intensive- ness or the average cost of one norm-hour. The calculating of the influ- ence of one or another factor on the deviation of the actual material and labor expenditures from the plan can be established by the method of chain substitutions. - Due to the fact that the conditions for planning the cost of building the prototype and.first vessels in a series differ substantially from the con- ditions of planning production expenditures of the series-built vessels, in an analysis the cost of the prototype and first vessels is studied sep- arately. 104. Procedure for establishing wholesale prices for shipbuild- ing pr o duc ts. In accord with the Decree of the USSR Council of Ministers of 30 June ~966, No ~+98, two types of wholesale prices--guideline and fixed-- were set for vessels and other floatin~ equipment for production and tech-~ nical purposes produced by the shipbuilding enterprises. 223 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ~=uideline wholesale prices are worked out for the prototype and series vessels planned for construction, as well as individua.lly buil.t vessels and sectional vessel~. These pri.ces are used for c~.rryin~ out the prelimin~,r,y intermediate payments for building new-design vessels. They are in affect until the designated date for approving the fixed prices. If a vessel of the given design is to be built at different building yards, then the guide- line prices are set in terms of each building yard. A preliminary guideline wholesale price is worked out by the designer of the vessel as part of the technical specifications of the vessel. After this the draft price is sent for review to the scientific and technical council of the ministry. Appended to the draft calculation of the price are the following conclusions: Of the building yard, the enterprises carrying out the expert evaluation of the price drafts (as a whole for the price, as well as for the labor intensiveness of building), the orderer of the vessel at the building yard, and so forth. A final ruling on the level of the guide- line price is taken considering the opinion of the main administrations having control over the building yard, the designer organization, the cli- ent and the main production planning administration of the ministry. The prices for additional work and preassembled articles not pr~vided for in the approved plans for the building of the vessel are incorporated in their prices in setting the current guideline prices or in converting them to fixed prices. In the event that design changes are made in the plans of the vessel and the expenditures on these changes exceed the amount of own expenditures by more than 15 percent of the ones in the approved guide- line price, the guideline price of the vessel must be revised without fail. - - The fixed wholesale prices axe used for the final payments between the ship- buildin~ enterprises and the clients. Like the guideline prices, they rj,re set individ~zally for each shipbuilding enterprise. The amount of the fixed wholesale price for the individually-built and prototype vessels is set proceeding from the actual expenditures on series vessels on the basis of the cost of the first year of series output (by series groups) calculated on the basis of the report costings and considering the existing actual expenditures on the head and series vessels, as well as the dynamics of the reduction in expenditures on the subsequent vessels in the series. The draft fixed wholesale prices are worked out by the shipbuilding enter- prises themselves and are coordinated with the representatives of the client. After this they are sent to the main administrations of the building yard, the client and the head production planning administration of the ministry. After seeking agreement from the corresponding administrations of the client's ministries (or departments), the main production plannin~ admin- istra~ion submits the dr:~ft fixed wholesale prices to the State Price Com- mittee undez� the USSR Council of Ministers. For serial.ly built self- propelled vessels using an engine of less than ~+00 horsepower and for non- self-propelled vessels with a cargo capacity of less than 1,000 tons, the 22~+ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY fixed prices are approved by the ministry. The draft fixed wholesale prices should be submitted to the State Price Committee under the USSR Council of Minister.s for prototype vessels no later than 2 months after these ves-- sel~ h~.ve been delivered to the orderer, and for all other vessels, no l~.ter thnn ~ months t~.fi;er the clelivery of the fire.t two vessels the construction ~ of which wa:.~ sLart,ed prior to the dellvcry of the pro~otype vessel. The fixed wholesale prices set in the above-indicated manner for vessels, with the exception of individually built vessels, are incorporated in the corresponding wholesale price lists. . 225 - FOR OFFICIAL USE ONLY~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY CHAPTER 12: PROFIT AND PROFITABILITY OF PRODUCTION AT A SHIPBUILDING EnITERPRISE 105. The forming of profit at an enterprise. Under the conditions of a further extension of the economic reform, profit, along with the vol- ume of sold product and the quotas for producing the major product types in physical units, is one of the basic evaluation.indicators characterizing the quality of operations in the enterprise (association) and the sector. Profit is a general indicator which describes the results of enterprise operations, as it reflects not onl,y the production and sales results, but . also other economic activities. The economic reform has sharply strengthened _ the role of profit in the economic encouragement of industrial production and in the material incentives for enterprise employees. Profit is used to form the material incentive fund, the fund for sociocultural measures, hous- ing construction and production development. At the enterprises (associations) a distinction is drawn between the profits from product sa1 es, balance sheet profit and adjusted profit. SaZes profit is determined in the form of the difference between the re- ceipts from product sales (in the current wholesale prices of the enter- prise) and the full cost of the salable product. The baZance sheet profit of an enterprise (association) is def'ined as the total profit from sales plus (minus) the result of the nonsales activities of the enterprise, that is, considering unplanned income and losses (penal- ties, fines, forfeits, and so forth). Ad~justed profit is the balance sheet profit minus the obligatory payments (the capital payment, interest on bank credit and fixed payments to the budget ) . The planned balance sheet profit in accord with the composition and the factors,which det ermine its amount is defined as the total profit: 1) from the sale of commodity product (co~odity output); 2) from other sales (sub- _ sidiary agriculture, procurement organizations, the motor pool, lumbering and other facilities on the balance sheet of the enterprise); 3) from planned 226 FOR OFFICIAL USE ONLY , , , , . , APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240020009-8 FOR OFFICIAL USE ONLY nonsales oper~.tions, with the exception of losses from the activities of the housing and utility systems and expenditures on the economic upkeep of cul- tural and educational facilities and Pioneer camps of the enterprise which are covered by profit distribution. The basic portion of profit from industrial operations is made up from the - profit of product sales. In the practical operations of the enterprises, often current prices differ from the prices used in the calculations of the volume of salable product. In such instances profit is increased or reduced by the total difference in these prices. The volume of product sales at the enterprise is assessed in accord with � the Standard Instructions of the USSR TsSU for Compiling the Reports of ~ Industrial Enterprises on the Fulfillment of the Product Plan (No ~+-102 of � - 11 May 1971), as well as considering the sectorial instructions approved by the :ministry with the agreement of the USSR TsSU. The volume of salable product for a production association is assessed in accord with the proce- dure for planning and accounting the product and labor indicators for the production associations (combines) as approved by the USSR Gosplan, the USSR TsSU and the USSR Ministry of Finances of 10 March 1976.1 The profit from the sale of other products and the services of subsidiary and service production is determined proceeding from the volume (in cost terms) o~ this product, work and services and their cost. The profits from nonsales operations include only the income or expendi- tures considered as profit or losses and related to the normal conditions of enterprise economic activities and having, as a rule, a permanent charac- ter. - 106. Profitability, its types and indicators. Production profit- ability is a relative percentage indicator describing the income of the enterprise. Engerprise profitability is an important fund-forming indicator in setting the economic incentive funds. At enterprises which have been converted to - the new conditions of planning and economic incentive, the profitability level is characterized by two indicators: the overall profitability of production and the adjusted. The level of overall profitability Ytp is defined as the ratio of the total bala.nce sheet profit to the average annual value of the fixed productive _ c~apital and normed working capital (in percent) Pb Ytp - F f+. Fw 100, . 1See: EKONOMICHESKAYA GAZETA, No 1~+, 1976. 227 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ` where Pb--ba,lr~nce sheet profit of enterprise, ruble~; Ff--average annual value of fixed productive capital, rubles; _ F~,~--average annual total of normed working capital of the enterprise, rubles. '!'he nvert~~e value of the fixed productive cap:ital, in ~,ccord w:ith the de- cision of the Interdepartmental Commission under the USSR Gosplan of 7 January 1g71, for c~,lculating both planned and actual profitability, is - determined by dividing by the number of months in the planned (report) period one-half the total obtained from adding the amount of capital on the first of January and the first of the month following tYie end of the planned (report) period, as well as the value oi tr~e fixed productive capi- tal on the first of the remaining months of the period. This method has been accepted for determining the average value of the normed working capi- tal both by the plan and from the report. In calculating the indicators of overall profitability, in the calculation they use the value of all fixed productive capital on the balance sheet of the enterprise. _ The adjusted profitability in the plan Yap is defined as the ratio of the _ _ total balance sheet profit (minus that used under special provision) re- duced by the total payment for the fixed productive capital and normed working capital, the interest on bank credit and fixed payments to the average annual value of the fixed productive capital and normed working . capital within the rate minus their untaxable portion for the capital pay- ment: Pb- (A+B+K) YaP F~ + FW 100, , where A--the total payment for fixed productive capital and normed working capital, rubles; B--fixed (rent) payments to the budget, rubles; K=-total payment of interest for bank credit, rubles. The indicators of the actual total and ad~usted profitability of production are determined from the data of enterprise a.ccountancy. _ From the given formulas for calculating the production profitability level, = it follows that in any instance the profitability level depends upon a change in the amount of profit and the value of the productive capital. A rise in profitability is achieved by the more rapid growth rate of profit in compar~son with a growth of the value of productive capital. Along with the designated methods, profitability of individua.l types and total product can be calculated as the r.atio of profit from product output (sales) to product costs. Under the conditions of a shipbuilding enter- rise with a lar e ran e of roduced ~ P g g p product, and with individu~,l and 228 - = FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY = sma11-series i:yp~s of production, the method of calculating profit~,bility - in terms of the productive capital for the types of produced product is ~ complicated 3~:~e to the absence of a proc.edure for setting the capit~,l in- ten:ilVBI1P.^aG of ~:he p.roduct for each type of article. For this rea^on such rin iridic~,tor in pr~.cticc is used ~'or est~.blishinl; the pro.fit~zb:ility of the - individual articles and is widely used in price planning, The profitability of individual articles YiP can be calculated from the following formula: W-Cf . - - Yip = C 100, f where W--wholesale price of enterprise for product; - Cf--full cost of given product. A calculation of profitability for all commodity product Y~p can be repre- sented in the form of the following formula: P Y~p = ~c 100, . _ P wher~ P~--profit from the sale of commodity product; C~P--full cost of sold corrmiodity product. . For studying the eff ectiveness of expenditures on product output and sales, for determining their repayment rate, and for disclosing profitability of - current product output and sales, an analysis is also run on profitability for each product and total commodity product. ~ 107. Planning profit and profitability at an enterprise. Total , planned profit in the tekhpromfinplan is calculated after working okt the product production and sales plans, the plans for raising production effi- ciency and product costs. For the calculation two methods are employed: direct calculation and analytical (control). The direct calculation method is used at the enterprises with a relatively limited product range, with summary planning on the level of the sector or subsector. The amount of profit is defined as the difference between the receipts from sales using the �,~holesale prices of the enterprise without the turnover tax and the planned cost of these articles. Profit is calcu- lated separa.tely for the balances of unsold product at the start of the planned year, for the planned product output, for the balances of unsold product at the end of the year being planned, and profit from other sales and nonsale operations. The total profit Ttp from product sales in the period being planned is determined using the formula: 229 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Ptp � Pe + Pco - Pfp~ where Pe -~he profit for the balances of unsold finished product at the . start of the year being planned; Y~o--the profit for planned receipts of r_oirunodity product; ~ Pfp--profit in the balances of finished product at the end of the yea.r being planned, Let us give an example for calculating planned profit by the direct calcu- lation method, in thousand rubles (the figures are hypottietical). l. Balances of unsold finished product at start of year being planned: --in terms of prodtiction cost . . . . . . . . . . . . . . . . . 1,380 --in terms of wholesale enterprise prices (minus t~:rnover tax) 1,750 --profit loss . . . . . . . . . . . . . . . . . . . . 370 2. Commodity product: --in terms of full costs . . . . . . . . . . . . . . . . . .35,500 - --in terms of enterprise wholesale prices (minus turnover tax) 40,350 ~ --profit loss . . . . . . . . . . . . . . . . . . . ~+,850 3. Balances of unsold finished product at end of year being pl~,nned : --for production costs . . . . . . . . . . . . . . . . . . . . 1,230 --for wholesale enterprise prices . . . . . . . . . . . . . . . 1,590 --profit loss . . . . . . . . . . . . . . . . . . . . 360 4. Profit from sold product 370+1~850-360 = 4,860 5. Profit from other sales and nonsale operations 150 Balance sheet profit (line 4 + line 5) . . . . . . . . . . . . . . 5,010 The basic merit of the given method consists in the simplicity of calcula- tion, since all the calculations have been organized on a direct calculat- ing of product costs and receipts from product sales for the entire range of the produced product. However, this method does not make i+ possible to disclose in the plan those factors of profit growth and does not focus the enterprise collectives on mobilizing the i.nner production reserves. ~n addition, for enterprises with a large range of produced product and a significant proportiorial amount of "other product" for which, as a rule, planning calculations axe not drawn up, the accuracy of calculating the - amount of profit by the given method is reduced, and a check on the correct- ness of its calculation is very labor consuming. The analytical method of calculating profit is, used for disclosing factors for a change in profit, and in particular, from an increase in the produc- tion voli ie, a savings from a reduction in product costs, a change in the assortment, prices, and so forth. - Example of calculating planned profit by the analytical method: _ l. The profitability level Y~p is calculated in relation to the cost of the comparable commodity product in the base year. 230 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY - Let us assume i:hat in the base year, the cost of all comparable produc~ w~.s 1.8 million rubles and total profit P~ was 2.7 million rubles, then Y~p 18,0 0 100 = 15~. 2. The increase in the amount of profit P1 is determined as caused by the rise in the production volume of the compared commodity product in the year being planned in comparison with the base year with the base profitability level. � Let us assume that the increase in compared product in the year being plan- ned for the prices of the base year will be 1 million rubles then P1 11000 ~5 = 150,000 rubles. 3. The amount of profit P2 is calculated from the planned reduction in the cost of compared coimnodity product. For example, if a cost reduction of 2 percent is envisaged in the plan, then P2 ~1 00 ~ 2= 380,000 rubles; 4. The change (increase decrease in profit Pg is determined in line with the change in the structure of the salable product (Table 59)� ~ - Table 59 Influence of Change in Product Assortment on Profitability Level Base Period Planned Period Prop. amt. Profit- Prop. amt. Products in total ability Profitability in total Profitability vol. of level, ~ coefficient, vol. of coefficient, sold prod., of cost, col. 2 x col. 3 sold prod., col. 3 x col. 5 ~ ~ 100 ~ 100 - 1 2 3 5 6 ' A 5 l0 0.5 5 0.5 B 20 10 2.0 20 2.0 - C 30 15 5 ~+0 6. o D 25 20 5..0 10 2.0 E 20 20 4.0 25 5.0 Total 100 16.0 15.5 ~ 231 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONL~Y From Table 59 it can be seen that a change in product assortment in the period being planned leads to a reduction in the profitability coefficient - - by 0.5 (16.0 - 15.5), or a reduction in the amount of profit due to the given fa.ctor will be P3 1 100 O~'S = 95,000 rubles. 5. The influence in a change in prices P4 is determined in the period bein~ planned for compared product. Let us assume that in the period being planned due to a.revision in prices for the compared product, a reduction of ~+5,000 � rubles is expected in the sales vol~e. Then P4 =-1~5,000 rubles. The planned total profit considering the influence of the designated factors ' for compared product is Pcp - Pc - Pl+P2+P3-P4 = 2,700+150+380-95-~+5 = 3.09 million rubles. 6. By multiplying the planned cost of uncomparable products and their planned profitability, we can calculate the profit for incomparable products PnP. Let us assume that in our example PnP = 1.92 million rubles. In addition, at sripbuilding enterprises which produce consumer goods, con- ~ sideration is given to a change in the turnover tax rates in the period being.planned. Thus, the total planned profit will be: Ptp - Pcp + Pnp = 3,090 + 1,920 = 5.1 million rubles. . The enterprise tekhpromfinplan determines the level of overall and ad~usted production profitability. Here the profitability plan is worked out con- sidering an analysis of its level achieved in the base year, as a result of which reserves are disclosed for increasing profitability due to a corres- ponding improvement in the production structure and the planned measures for improving production efficiency. 108. The dist~ribution of enterprise profit. Under the new manage- ment conditions, the procedure for allocating enterprise profit is aimed at the greatest possible rise in production efficiency, a strengthening of the interest of.the enterprises and associatons in improving the use of the~ � - material, labor and financial resources, at encouraging an acceleration of scientific and technical progress, and at improving product quality and - labor productivity. Profit is distributed according to a method which is uniform for the enterprises of all sectors [75]. In distributing the profit of an enterprise (association) excluded from the total profit is the profit which has a strictly specific nature in accord with the decisions of the USSR Council of Ministers and is used in a special procedure. ~ 232 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY This includes tY:e following profit: ~he profit of subsidiary agriculture; from the sale of' consumer goods made from waste products and used to form the consumption fund; from the sale of new types of household chemicals; from the sale of new types of cultural and household appliances (within limits of up to 15 percent of profitability in relation to the full costs i'or each individual item); [the profit] channeled for other purposes in amounts established by decisions of the USSR Council of Ministers. The designated profit is made available to the enterprises in the instance that they observe certain conditions listed in the decrees and instructions of the USSR Council of Ministers and the instructional provisions. If these conditions are not met, profit is distributed in the general manner. After excluding the designated portion from the profit, payments to the budget are made including the payment for fixed productive capital and normed working capital, the fixed payments, and the payment of interest on bank credit. From the remaining portion of the profit (the so-called adjusted profit), the economic incentive funds are formed, including: The material incentive fund, the fund for sociocultural measures at housing construction a.nd the production development fund. Then the remaining portion of profit is used _ to fi.nance centralized capital investments, to increase own working capital, - to repay banY loans obtained to expand and reconstruct the enterprises, for deductions in~Lc the ministry reserve for providing financial aid, and so _ forth. Table 60 gives the distribution of profit in a year being planned. ~ The free profit balance is remitted to the state budget.2 The above-planned profit minus that portion which is used in the special pro- cedure is distributed in the following manner: for payments to the budget �or the payments for fixed productive capita.l and normed working capital and the fixed payments, to pay interest on bank credit in those instances _ when the actual amo~ants of these payments are higher than the amounts pro- vided in the plan; for making up a shortage of own working capital formed as a result of the nonfulfillment of the profit plan and the carrying out ~ of above-planned expenditures financed from profit, or for the early re- tirement of debt for credit granted for this purpose. Here it is possible to fully or partially use for the designated purposes - the above planned profit obtained above the quotas set by the superior or- ~ ganization for additional profit from the carrying out of organizational - a.nd technical measures and remaining after tlie remitting of profit in the established order for additional contributions to the budget of the payment for productive capital, fixed (rent) payments, as wel.l as to pay interest on a bank credit. 2The procedure for the payment of the free profit balance to the budget by the enterprises has been established in the instructions [~+2]. 233 FOR OFFTCIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 ~ FOR OFFICIAL USE ONLY Table 60 Distribution of Balance Sheet Profit of a Shipbuilding Enterprise (figures hypothetical) By plan - Np� Allocation of Profit for year, 1,000 - rubles ; ; 1 2 3 1 Balance sheet profit 5,010 Including: 2 Profit used in special procedure (deductions into con- sumption fund and so forth) 60 3 Profit subject to subsequent distribution (line 1- line 2) 1+,950 4 Payment for fixed productive capital and normed working capital 1 280 5 Fixed (rent) payments 6 Interest on bank credit 130 7 Material incentive furzd 750 8 Fund for sociocultural measures and housing construction 300 9 Production development fund 220 10 Financing of centralized capital investments 970 Retirement of Credit - 11 For capital investments (credit repaid from production development fund) 65 ` 12 For expenditures on expansion and organization of the production of consiur?er goods (with shortage of money in production development fund) 35 Retirement of Carryover Debt on Bank Loans Granted to Carry Out Measures for 13 Production of new products i45 14 Improvement in product quality 55 15 Financing of increase in own working capital 1~8p 16 Covering losses from operation of housing and utility system 1+5 17 Expenditures on running cultural and educational facilities " and enterprise Pioneer camps 75 18 Deductions to ministry for forming financial aid reserve 70 19 Deductions to superior organizations for profit redistribu- ~ tion 80 20 Total (from line 4+ to line 19) ~+,700 21 Grand total of distributed profit (line 2+ line 20) 4,760 22 Free profit balance to be paid to budget (line 1- line 21) 250 - 23~+ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY If the enterprises and organizations which have permitted a shortage of o~rn working capital to form have not been given quotas for receiving additional profit (a reduction in losses for the planned loss enterprises) from the carrying out of organizational and technical measures, the above-planned profit is not used to make up for the designated shortage. This shortage is made up by reducing the profit deductions into the economic incentive funds by up to 30 percent. The enterprises and organizations which have not fulfilled the quotas for _ receiving additional profit from the carrying out of organizational and technical measures which could be used to make up the lack of own working capital must reduce the deductions into tlie economic incentive funds (by up to 30 percent) by the amount of the unreceived profit (tlie savings from the reduction in losses), and izse the designated money for: 1) Making up the shortage of own workin~ capital; 2) Additional deductions into the material incentive fund, the fund for _ sociocultural measures and housing con~truction and the production develop- Ment fund within the set amounts. Here the above-planned profit can be channeled for the designated purposes minus the profit used in the special procedure, the interest for bank credi:ts, the payment for productive capital, the fixed payments, and the profit used to make up tfie.shortage of own work- ing capital; 3) Paying bonuses for the socialist campetition; Making up losses from the operation of the housing and utility system within the amounts which exceed the total stipulated in the.financial plan; j) Repaying bank loans ~;ranted to carry out measures related to the produc- tion of new products, improving the quality, reliability and durability of products with a term up to 1 year under the condition of repayment, and fc~r repaying loans within this period from the profit obtained from the sale _ of the designated articles; 6) Repaying a bank credit granted for expenditures on introducing new - equipment, mechanization and improvement of production methods (with a shortage of money in the production development fund), within the limits of the additional profit (savings) obtained in the report year from the measures creciited; 7) The repayment of a bank credit granted for expenditures to expand and organize the production of consumer goods (with a shortage of moriey in the production development fund), within the limits of the additional profit obtained in the report year from the measures credited; 8) Deductions into the reserve of the ministry (department) for providing financial aid; ~ 235 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY 9) For other purposes within the amounts stipulated by decisions of the USSR Council of Ministers. The difference between the total above-planned profit and the designated payments and deductions is remitted to the budget in the form of the pay- ment of the free balance of above-planned profit. � In accord with Point 5 of the Decree of the USSR Council of Ministers of ` 10 August 1967, No 77~+, the enterprise collectives which have been converted - to the new system of planning and economic ince:~tive are to receive bonuses for the results of the all-Union and republic socialist competition from the above-planned enterprise profit, and with a shortage of this money, from the free profit balance of the enterprise. The enterprises which have not f~zlfilled the profit plan allocate the actu- ally received profit (minus the profit used in the special procedure) in the following manner: first from the profit in the established procedure they pay the budget the payment for the fixed productive capital and normed working capital and the fixed payments, and also pay the interest on bank credit. Then the deductions are made into the material incentive fund, the iund for sociocultural measures and housing construction and the produc- tion development fund. The remaining portion of the profit (minus the desig- nated payments and losses) is distributed between the total char.neled to cover other planned expenses of the enterprise and the free profit balance which is to be paid to the budget in proportions determined by the financial plan of the enterprise (association). Deductions into the reserve for providing financial aid are set in the es- tablished percentage of actual profit. 236 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 i FOR OFFICIAL USE ONLY CHAPTER 13: ECONOMIC INCENTNE FUNDS 109. Economic incentive funds and their classification. For the . purposes of strengthening material incentives for the production collectives to improve production eFficiency, to better quality and to increase the vol- ume of s~ld product at the industrial (shipbuilding) enterprises and associa- tions, in accord with the Decree of the CPSU Central Committee and the USSR Council of Ministers of November 1965, No 729, from profit deductions and other sources economic incentive funds are to be created, including: The material incentive fund, the fund for sociocultural measures and housing construction, and the production development fund. Along with the above-indicated funds, the enterprises also form other spe-- cial funds which encoura~e the development of individual types of production or the achieving of certain results in enterprise operations. Such funds include: The consumption fund, the fund for bonuses paid for the delivery ~ of export products, the bonus fund for the creation and introduction of new equipment and production methods, full mechanization and automation of pro- ~ duction, the bonus funds for the results of the socialist competition, socia]. financing for the ea.rly completion of vessels under construction, and so fo~th. Of important economic significance is a classification of the incentive funds in terms of their specific purpose and.sources of formation. The classification by specific purpose indicates whether or not the enterprise is within its right to fully utilize the formed funds and what type of eco- nomic interests can be satisfied by these funds (Fig. 3). The classification of economic incentive funds by formation sources makes it possible to disclose from what sources one or another fund was formed, and which of these sources are internal and which involved from other ~ enterprises and organizations (Fig. 4). However, the use of both the first and second classification of the.economic incentive funds in planning, accounting and analysis is difficult since many.funds have a multipurpose nature of use and are formed from several ; sources. 237 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY e.c.onomi,c . inc.~nti.v.e funds . material inCeri~ive fund bonus fl~nd for results of socialist com etition ~ . bonus fluid for creation & intro- ~ y duction of new equipment & ~ 'a'~, roduction methods ~ a~ bonus f~nd for delivery of e ort roducts ~ bonus fluid for collection, y~ storage & dispatch of scrap & o 0 waste ferrous & nonf~errous metals ~ N m ~ bonus fluzd for saving of fuel, ~ N ~ ~ electric & thermal ower ~ 0 4�, ''i ~ fund for sociocultural measures .d u�', and housin construction ~ ~ x 's w f'' ~ fuud formed from profit from sale o~' of new types of consumer goods & w~ c, a~ household a liances ~ a~ roduction develo ment fund ~ ~ ~ ~ ~ o � consum tion fund � m ~ ~ a~~ specia,l financing for bonuses ~ o~ for eaxl delive of vessels s~ ~d ~ w q~�, money obtained for turning over - one's own scientific and technica develo ents - Fig. 3. Classification of Economic Incentive Funds by Specific Purpose 238 FOR OFFICIAL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFZCIAL USE ONLY money received for turning over own scientific & technical ~ develo ments . ~ . - N~ apecial financing for bonuses ~ for eaxl delive of vesael " u, m ~ N �rl O _ ~ ~ w a bonus fund for delivery of ~ o~~ ~ e ort roducts � ~ ~ ~ ~w~ ~ N N O O ~ ~ N~ bonus fund for saving elec- o ~ ~ ~ ~ ~ ~ tricit & thermal ener w 4-i O O f., m U ~ b bonus fund for collection, b ~ storage & dispatch of acrap E' ~ & waste ferrous & nonferrous ,n ~ metals . ~ ~ ~ ~ ~ ~ bonus fund Por creation & intro- v ~ ,d duction of new e ui ment y ~ o w ~ ~ a bonus fund for results o~ c�', N socialist com etition H O q-~ O V ~ Q; � material incentive fund � ~ u a~ ~ i' ca o a~i W roduction develo ment fund ~ U ~ ~ O a3 ~ cons tion fund o o ~ ~ ~ ~N w~ ~ ~ ~ o fund formed from profit from ~ sale of new types of consumer ~ yi oods & household a liances ~ _ a ~ ~ fund for sociocultural � ~ measures & housing construction . . ~ w 239 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 'FOR OFFICIAL USE ONLY The most convenient in practical terms is a classification of economic in- centive funds by which all the economic incentive funds are brought together in three g~oups. The first group includes the incentive funds formed at the enterprises under the conditions of their operation under the new system of planning and eco- nomic incentive, including the material incentive fund (MIF); the fund for sociocultural measures and housing construction (FSG`MHC). The second group includes the production development fund (PDF). The third group includes all the other funds and special financing sources which are created at shipbuilding enterprises for encouraging the develop- ment of the specific types of production and for achieving certain indicators in enterprise operations, namely: The constunption fund; the bonus fund for the delivery of export products; the bonus fund for the creation and intro- duction of new equipment and production methods; for bonuses paid according to the results of the socialist competition; the bonus fund for the co~.lec- ` tion, storage, delivery and dispatch of scrap and ferrous metal wastes; the bonus fund for the saving of fuel, electric and thermal power; the fund formed from profit from the sale of new types of cultural goods and house- hold appliances; special money to pay bonuses for the early delivery of ves- sels; money obtained for the delivery of one's own scientific and technical developments. 110. Planning economic incentive funds in a five-year plan. Economic incentive funds are planned in three stages: The first in the five-year plan (with a distribution by years); the second in the annual (current) plan; the third in ad~usting (altering) the annual plans. A five-year plan of the ministries a.nd departments sets the total deductions into the material incentive fund from the profit for the last year of the five-year plan. This calcu].ation is made on the basis of the rates worked out by the USSR Gosplan and approved for the ministry. In the designated rates.the amounts of profit deductions into the material incentive fu.nd for the last year of the five-year plan is set in percent of the total wage fund of all the personnel according to the plan for the same year. The ministry allocates the planned amount of the material incen~ive fund for the last year of the five-year plan between the departmental en.terprises (associations). In accord with the approved planned fund and the dynamics in the changes of the fund-forming indicators, the enterprise (association) plans the material incentive fund for the yeaxs of the five-year plan. The ministry differen- tiates the fund-forming indicators for the production associations (com- bines), enterprises and organizations considering the main tasks confronting their collectives, in encouraging, as a rule, the fulfillment of the follow- ing labor productivity indicators: A rise in the proportional amount of' ' 2~+0 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY superior quality product in the total volume of product output; the level of profitability or return on investment; a rise in the vol~ne of produc- tion output or profit; a reduction in product costs; the development of pro- duction capacity in accord with the normed dates of its develo~nnent. 'i'lie tc~tal nurnber of fund-forming indicators set for each enterprise (zisso- ciation) should not exceed three or four. The fund-forming indicators, as a rule, should include quotas for the growth of labor productivity and a rise in the proportional amount of superior quality product in the total volume of product output. As the basis for planning the amount of the FSC`MHC as well as the PDF for - the five-year plan, the actual profit deductions for these funds are used for the last year of the previous five-year plan (the base year). As for - the total profit deductions into the designated funds by the years of the - five-year plan, these are determined for the FSCMHC proceeding from the rise (reduction) in the fund-forming indicators on the basis of stable rates, and for the PDF, proportionately to the rise ?.n balance sheet profit minus ~ that portion of it which is used in the established procedure for a specific purpose (that is, the profit from the sale of consumer goods made from wastes, from the sales of new types of household chemicals during the first year of the series production of these items, and so forth). 111'. The rates for forming the economic incentive funds. Begin- ning in 1972, the purpose of the rates for forming incentive funds has changed. - For the Tenth Five-Year Plan, for the enterprises (associations) in industry, standard NIIF increase (reduction) rates were set for the individual fund- forming in3icators in percent of the total material incentive fund for the 1975 plan (Table 61). These rates when necessary could be differentiated by the superior organization considering the solution to the main problems confronting i;he collectives of the individual enterprises (associations). The amount of the increase (reduction) in the P~IIF in setting the annual plans was determined by multiplying the amount of the increase (reduction) in ea,ch oi the fund-forming indicators in the annual plan in comparison with the five-year plan by the corresponding rate and total of the MIF for the 1975 plan (Table 62). According to the current statute, the amount of the MIF of the enterprises (associations) for fulfilling the plan in terms of the total production volume (profit) is not to be increased it the given enterprise (association) has not fulfilled the quotas set for it in the annual plans in terms of the proportional amount of superior quality product in the total production volume. The profit deductions for the enterprise (association) T~1IF for each percent- age achieved prior to 1976 for the proportional amount of superior quality 21+1 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240020009-8 FOR OFFICIAL USE ONLY Table 61 Standard Scale for Increase (Reduction) Rates of MIF for Individual Fund-Forming Indicators Fund-Forming Indicators a Note 1 2 3 - ~ l. For each percent of exceeding 2.0 Given rate can be differ- - (reducing) growth rate of labor entiated by superior or- productivity in comparison with ganization depending upon quota of five-year plan for corres- the level of labor norm- _ ponding year of five-year plan ing achieved at the enter- prise (association) 2. For each po~nt of exceeding (reduc- 2.0 Designated rate can be ing) proportional amount of differentiated by super- superior quality product in total ior organization consider- production volume of product in ing achieved proportional annual p]_ans in comparison with amount of superior quality quotas of five-year plan for product in total produc- _ corresponding year tion vol~e 3. For level of overall profitability 2.0 _ (in annual caluulation, . to 15 1.0 from 15.1 to 30 0.5 ~ver 3C~.1 0.6 4. Return ori investment (in annual 0.3 . calculation in kopecks): to 120 from 120.1 to 210 over 210.1 ~ 5� For each percent of exceeding (re- not ducing) growth rate for volume of over production output or profit 1.0 Key: a--Rate of increase (reduction) in MIF in ~ of planned total of MIF consumer goods (commodities with the Sign of Quality) in the total produc- tion.volume are made at an amount of 1 percent of the MIF according to the ~ 1975 plan, and for each percentage achieved in 1976 and subsequent years - in the proportional amount of the designated commodities in the total pro- _ duction volume, at an amount o~ 2~ercent of the MIF according to the 1975 2~+2 _ FOR ~FFICIAL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Table 62 Sa.mple of Calculating MIF for 1978 (figures hypothetical) Approved in 197a Devia.tion oF Indicators Unit 5-year plan draft draf+ from for 1978 plan a.pproved plan - I. Initial Indicators . l. Labor productivity per In % of 150.0 151.2 1.2 employee 1975 2,. Proportional amount of ~ 22.0 23.5 1.~5 superior quality product in total volume of product ~ outi,-at 3� Volume of product output In ~ of 151+.0 155.0 1.6 1975 II. Established Rates in ~ of Total MIF a) For each percent of exceeding (reducing) growth rate 2.0 of labor productivity in comparison with quota of 5-year plan b) For each point of exceeding (reducing) proportiona]_ 2.0 amount of superior quality px�oduct in total produc- tion volume in comparison with quotas of 5-year plan _ c) For each point of exceeding (reducing) growth rate 1.0 of production vol.ume in comparison with quota~of - 5-year plan . III. Total MIF for 1975 Plan 1,020 mil. rubles IV. Total MIF for 1978 in 5-Year Plan l.l mil. rubles V. Adjusted Total ~tIF According to Approved 1978 Plan will be a) Increase in MIF due to increase in growth rate of by 24,500 rubles labor productivity in annual plan in comparison with quota of 5-year plan` 1.2x2x1,020 100 . ~ b) Increase in amount of MIF due to increase in pro- by 30,600 rubles portional amount of superior quality product in total prociuction volume in annual plan in compari- son with quota of 5-year plan 1'Sx2x1,020 - 100 . 243 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY - [continuation of Table 62] c) Increase in total MIF due to increase in growth by 16,300 rubles rate of production volume in annual plan in comparison with quota of 5-year plan i. 6x~i, 020 ~ loo - Total increase in MIF total by 71,400 rubles VI. Total MIF for 1978 (point IV + point V) 1,171,~+00 rubles plan. These rates can ~,lso be differentiated by the superior organization - depending upon the operating conditions of the enterprises (associations). The money for forming this portion of the MIF is set aside from above-plan profit, and in the event that this is lacking, from the ministry reserve. As for the rates for forming the FSCMHC, these are set in percent of the - total MIF and are determined by dividing the total FSCMHC of the enter- prises (associatior.s) stipulated in the five-year plan for the appropriate year by the total MIF for the same period. - . All other funds as well as the money of special funds earmaxked for economic incentives at enterprises are planned proceeding from the current regula- tions which regulate the procedure of their formation. _ The bonus fund for the delivery of export products is formed in an amount ~ of 3 percent of the value of the ships, equipment and other machine building - articles in the USSR wholesale prices condiering the grice surcharges for export and tropical conditions. The bonus fund for the collection, storage and dispatch of scrap and ferrous and nonferrous metal wastes is planned in the following amounts: a) for scrap and wastes of ferrous metals at 0.7 percent with a delivery plan up to 10,000 tons a year, and 0.5 percent with a delivery plan over 10,000 tons a year: b) for scrap and wastes of nonferrous metals, 0.6 percent. _ The bonus fund for the creation and introduction of new equipment and pro- duction methods, full mechanization and automation is formed from special deductions included in the enterprise product costs, and this amount has been set at 1 percent of the annual wage fund of the industrial production personnel. 112. Determining the actual amount of the economic incentive f u n ds. The actual amount of the MIF and FSCMHC at the enterprises (asso- ciations) is calculated quarterly in a running total from the start of the year, that is, for the first quarter, 6 months, 9 months and year. Advance - 244 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY deductions to the hiIF can be made monthly within the ariounts provided for in the plans for 'the first and second months of the quarter. The ~ssence oF the calculations in determinin~; the actual amount of the MIF (~tha.t is, the funcis actually to be deducted) comes down to correctin~; (ad- ,justin~ upwards ot downwards) their amount provided in the annual plans in line with the overfulfillment or underfulfillment of the plan for the indi- vidual fund-forming indicators, as well as in terms of fulfilling the plan for product deliveries in the range and assortment stipulated by the con- ~ tracts and orders. ~ In the event of the nonfulfillment of the plan in terms of the fund-forming - indicators, the enterprise (association) incentive funds axe formed in re- duced amounts in the established manner. The minimum total incentive funds (within the limits of the actual total from the start of the yeax) here canno~: be below 40 percent of the planned total funds for the last quarter in which a nonfulfillment of the plan was committed. The central question in the s,ystem of figuring the actual amount of the MIF is the adjusting of the stable rates in calculating the MIF during the year. For the purpose of providing an incentive for the enterprises (associations) to maxim~,lly seek out reserves for improving production efficiency and ac- cepting taut plan quotas, a procedure has been instituted according to which , the enterprises (associations) which have overfulfilled the plan quotas for the ft~nd-forming indicators make additional deductions into the MIF for . each percentage of overfulfilling the plan for these indicators at~the set stable rates reduced by not less than 30 percent. With the underfulfill- ment of the plan for the fund-forming indicators, the deductions for the ~~IF are reduced proceeding from the percentage of the ur~derfulfil]srient of the plan for each of these indicators and the same stable rates increased ~ . by at least 30 percent. The specific amount of the reduction (increase) in the stable rates here is set by the ministry with the agreement of the . sectorial trade union. . The designated adjustment of the rates does not extend to�an ad~ustment upwards (or downwards.) in the PDF. ~ As for the FSCMHC, the rates of its formation are not adjusted since this fund is created depending upon the calculated amount of the MIF. For all other economic incentive funds, their actual amount is formed according to the methodolo~y of their planning (see the previous question). 113. The use of the material incentive fund. The planning and actual calculating of the use of money in the MIF should be carried out by periods of the year, basic areas of use, categories of workers and the in- ternal plant subdivisions. 2~+5 _ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY The rnoney of the MIF is used: a) to provide bonuses for workers, managers, engineers, technicians, white collar personnel and other employee categories according to tYie established bonus systems; b) for one-shot commendation of outstanding workers, engineers, technicians, white collar personnel and ~ other employees of the enterprise for carrying out particularly important production quotas in the area of furtner improving production, introducin6 new equipment and developing the output of new types of products for which, as a rule, the work volume, the date of completing it and the amount of _ material incentive have been set ahead of time; c) to pay remuneration to workers, managers, engineers, technicians, white collar personnel and other employee categories for the overall operating results of the enterprise for the results of the year; d) to provide bonuses to employees for the results ' of the internal plant socialist competition; e) to provide one-shot aid to the enterprise employees (as a rule, not more tlian 5 percent of the MIF money); f) to pay for leaves for the portion of the average wages of em- ployees paid from the material incentive fund. It is also possible to provide a one-shot commendation for employees in the � form of monetary remuneration or as gifts. The enterprise (association) leader together with the trade union organiza- - tion distributes the MIF according to the designated areas and also approves the estimate for the disbursement of this fund and sets the amount of the bonuses and other payments from this fund for the employees. The money of the MIF which is left to the association is used to provide bonuses for the association employees for carrying out particularly import- ant quotas, as well as for replenishing the money of the MIF inade available to the individual production units in line with a temporary decline in the economic indicators of their operations for reasons which do not depend - upon them, and for providing bonuses to the winners in the association's socialist competition. The money of the MIF left to the association can also be spent to pay bonuses to employees of the association management under� the established bonus systems, to pay remuneration for the operating results of the year, and for granting one-shot aid. A superior body is not permitted to confiscate and redistribute the money of the MIF, with the ~ _ exception of the instances defined by the USSR Council of Ministers. The unused balances of these funds remain at the disposal of the enterprises (~,ssociations) and are carried over to the following yeax. 11,4. The use of the fund for sociocultural measures and housing construction. The money of this fund is earmarked for satisfying the primary sociocultural needs of the enterprise (association) collective. It can be spent for the following:. a) the construction, expansion and rnajor overhaul of housing, children's preschool institutions, preventoria, dining rooms and buffets at enterprises; b) for proportional participation - of the enterprises in the joint construction of housing and sociocultural projects; c) for the construction and ma~jor overhaul of clubs, Pioneer camps, vacation houses, boarding houses and sanitoriums, tourist and 2~+6 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY suburban vacation facilities, sports facilities and other pro,jects for cultural and he~.lth purposes, for acquiring specialized transport (ambu- l~.nces, mobile movie pro~ectors), equipment and supplie~ for the above- li~ted instal:Lations ~s well as for the plant dining rooms and buffets in t}ic e:tablished procedure; d) for acquirin~3 medicines of inedical facilitie^, trips to vacation homes, boarding houses, sanitoriums, to tourist f~.cili- ties and trips on aoviet territory (without paying the cost of travel), for carrying out cultural, educational and physical culture measures, and so forth; e) for improving the diet of children in the creches, nurseries and Pioneer camps; for reducing the cost of food in the enterprise dining rooms (buffets); f) for recovering above-plan expenses on the running of cultural and educational institutions and Pioneer camps. 115� The use of the production development fund. The money of _ the production development fund is earmarked for financing capital invest- ments for introducing new equipment, the mechanization and automation of production, the modernization of equipment, the replacing of fixed capital, the acquiring of hauling transport (for production purposes), improving the organization of production and labor (including the purchase of account- ing machines and typewriters and other office equipment), as well as for other measures helping to develop production, to raise labor productivity, to reduce product costs, to improve its quality and to raise production . profitability (without new construction). Here the enterprises can also carry out construction and installation work related to the replacement and installation of equipment, the expanding of production, service and warehouse facilities, as well as the organization of conswner goods production. The money of the production development fund can also be channeled to cover expenses on the transfer of scientific and technica.l developments (specifications) and providing help in their use. 116. The use of the other economic incentive funds. The money of the bonus fund for the creation and introduction of new equipment is used in the following areas. Some 50-75 percent of the�money of this fund _ is turned over to the superior organization for creating a centralized bonus fund. The remaining portion of the money of this fund is used to pay bonuses to workers, managers, engineers, technicians and enterprise special- ists. The amount of the one-shot bontitses for the creation and introduction of new equipment, for the development and introduction of effective methods for the organization of labor and production are set depending upon the annual economic efficiency obtained in the national economy as a result of carrying out the designated 3obs (Table 63). The specific amounts of bonuses for the individual measures related to new equipment within the limits between the maximum and minimum amounts are set b;~ thc superior organization, when the bonuses are paid from the centralized fund, and by the enterprise (association) leader when the bonuses axe�paid from the money left at the disposal of the enterprise (association). Not more than 10 percent of the total amount of the bonus is spent to pay bonuses 247 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ' - Table 63 Amount of Bonus for Creation and Tntroduction oP New Equipment, tne Development and Introduction of Effic3ent Methods for the Organization of Production and Labor (figures hypothetical) Annual Economic Effectiveness Amount of Bonus in ~ of Annual Economic Effectiveness to 10,000 rubles from 6 to 25~, but not over 2,000 rubles from 10,000 to 20,000 rubles from 5 to 25~, but not over 3,400 rubles from 20,000 to 50,000 rubles from 1+ to 17~, but not over 6,000 rubles from 50,000 to 100,000 rubles from 3 to 12~, but not over 10,000 rubles from 100,000 to 500,000 rubles from 2 to lOq, but not over 35,000 rubles from 500,000 to 2 mil. rubles from 1 to 7~, but not over 80,000 rubles from 2 mil. to 5 mil. rubles from 0.7 to but not over 150,OU0 rubles over 5 mil. rubles from 0.5 to 3~, but not over 200,000 rubles for enterprise employees who have actively aided in the introduction of new equipment. The consumption fund is used for the following purposes: 60 percent is spent to expand the output of consumer goo3s, to improve their quality, to prepare new samples of these goods, as well as for the building and repair of housing, above the capital investment plan; 35 percent of the money of . the consumption fund is used to pay bonuses to engineers, technicians, workers and white collar personnel taking a direct part in organizing the production of consumer goods; 5 percent is transferred to the superior organization. The bonus fund for the delivery of export products is used to pay bonuses to workers,.managers, engineers, technicians and white collar personnel participating in the production of export products. Up to 5 percent of this fund can be turned over to pay bonuses to employees of design bureaus (which are not part of machine building plants) and which have taken a direct part in carrying out export orders. The bonus fund for the results of the socialist competition is fully used to pay individual bonuses to workers, managers, engineers, technicians and white collar personnel of the enterprise who.have excelled in the competi- tion, if tne i:otal amount of the calculated fund does not exceed 2,000 rubles. If the total exceeds 2,000 rubles, then 60-70 percent of this fund is spent on individual bonuses, and the remaining portion is used to improve cultural and personal services, and for building housing and cultural-service facilities. 2~+8 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Table 61+ - Analysis of Economic Incentive Funds (figures Y~y-pothetical) (thousand rubles) In In Year Being Analyzed Economic incentive funds formed at enterprise Prye~us Under Actual Deviation ad~usted plan from plan 1. Material incentive fund 1,176 1,227 1,236 +9 2. Fund for sociocultural ~+7~+ 491 ~+94 +3 measures and housing construction 3. Production development 8~+6 1,071 1,065 ~-6 fund Bonus fund for delivery 51+ 48 32 -16 of export products 5. Special financing for g8 131 +131 early delivery of vessels and so forth The money of the bonus fund for the collection, storage and dispatch of scrap and waste ferrous and nonferrous metals, and for special financing for the early delivery of vessels is used to pay bonuses to employees, en- gineers, technicians and white collar personnel direclty involved in carry- ing out the designated work. 117. Analysis of economic incentive funds. An analysis of economic incentive funds at shipbuilding enterprises is confronted with the following ma~or tasks: Determining the completeness and soundness for forming the individual funds, studying the movement of the money of the economic incen- tive funds, and determining the degree of efficient use of these funds. In a.nalyzing the qLiestions of the formation of the economic incentive funds, it is essential first of all to study the general indicators for the forma- tion of the designated funds at an enterprise. Then Dne should establish ~ the dynamics of the change in their amount in comparison with the previous - year, and determine the degree of fulfilling the plan in terms of the forma- tion of the individual funds. This analysis, in using hypothetical figures, can be carried.out with the aid of Table 6~+. - The basic factors which influence the deviation of the actual Eunount of the MIF formed out of profit from the plan, in particulax, are, the overfulfillment 21+9 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY (underfulfillment) of the plan for the fund-forming indicators (sales volume, - level of production profitability, labor productivity, and the proportional amount af superior quality product); the nonfulfillment of the plan for the basic range of produced products; the nonfulfillment of the plan for balance sheet profit. An analysis of the movement of the money in the economic incentive funds is carried out in order to compare the amount of money in each of the funds as calculated and spent during a year or another report period, and to com- pare the balances of each of the funds at the beginning and end of the period - being analyzed. The movement of money in the economic incentive funds can be analyzed from the data in form No 10 of the annual report. The questions of the efficient use of the economic incentive funds hold a special place _ in the analysis. These questions must be studied in close correlation to - the org~.:lization of economic accountability and above all internal plant economic accountability. 250 FOR OFFICIAL USE ONLY , APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY CHAPTER 14: FINANCIAL WORK AT A SHIPBUILDING ENTERPRISE 118. The contents and organization of fin~.ncial work at a ship- building ent erpri s e. Financial work is one of the most important com- ponents in the economic work of the enterprises (associations). Its basic tasks are: To provide the financial resources for fulfilling the quotas of the national economic plan for the most important economic indicators of enterprise operations; control over the safekeeping and efficient use of own working capital assigned to the given enterprise; providing proper use of bank credit, prompt repayment of payments to the budget, to suppliers, ~ the bank, and to enterprise employees; mobilization of unused reserves for the purpose of i.mproving the efficient use of fixed capital as well as ma- - terial, labor and financial resources. ~ The financial work at shipbu.ilding enterprises, as a ru1e, is caxried out by the financial depaxtment, and at small- and medium-sized enterprises these departments at times are part of the financial and marketing depart- ments or are included in the bookkeeping office (planning department), where the positions of senior economists and economists for financial work are ~ introduced. ~ The enterprise (association) leader appoints the chief of the financial de- ~ partment (senior economist) to his position; he is subordinate.to the 1eac~er or his deputy. The "S~andard Statute on Organizing Financial Work at Socialist State Enterprises and Organizations" approved by the USSR Ministry of.Finances, the USSR Gosplan, the USSR Gosstroy, the USSR Gosbank and the USSR Stroybank in 1971 states that the chief of the financial department, along with the enterprise leader,.bears responsibility for carrying out the financial plan, the safekeeping and correct use of working capital and special funds, the prompt providing of money for expenses provided under the p1an, and the economic expenditure of this money for its specific purpo~e. Along with the enterprise leader and the chief' of the financial department, the chief of the planning department also bears responsibility for the fulfi].lment of the profit plan and turnover tax, and the chief of the departments of material and technical supply and marketing is responsible for the c,orrect 251 FOR OFFICIAL USE ONLY , . I APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY use of working capital and the preventing of the accumulation of above- norm materials and commodities. The financial depaxtments of shipbuilding enterprises usually consist of several groups. More often they have the following groups: Operations, plan analytical, the writing out of b.ills, the accepting of bil].s, claims and cash. The basic duties of the financial workers at shipbuilding enterprises con- sist in working out the financial and cash plans and credit applications; issuing the indicators of the approved financial plan and the quotas stem- ming from it, and the limits on the rates and standards to the individual internal plant subdivisions; controlling the completeness and promptness of the receipt of income and the correct use of enterprise money; carrying out work in compiling the operational financial plans (payment calendars); participating in the elaboration of the standards of own working assets, providing the prompt drawing up of requestable credits and their repayment at the established dates. The questions of financial relations at enterprises involving the process of the reproduction of fixed capital, that is, their acquisition, amortiza- tion, repair, and so forth as well as the questions of product sales, mone- tary accumulation and product,ion profitability have been examined in the present handbook, respectively, in Chapters 8, 12 and 13. As for the finan- cial questions of using working capital, they have been taken up below. 119. The composition of working capital. For carrying out the process of expanded socialist reproduction, the shipbuilding enterprises, along with the fixed productive capital which is physically embodied in the form of buildings, equipment, ways, slips and so forth, it is also essential - to possess productive working capital and cash and disposable stocks. The productive working capital includes the stocks of basic and auxiliary - mwterials, fuel, purchased semifinished and preassembled products, incom- plete production, as well as inexpensive and rapidly wearing out supplies. The cash and disposable stocks include the stocks of finished products at - the warehouses, goods dispatched to purchasers, and money in the payment account, in the cash office and in checks. The money tied up in productive working capital and in the cash and dis- posable stocks of the enterprises is usually termed the working assets. In the prcce~s of the circulation of economic activity at a shipbuilding - enterprise, the working assets move from form to another, that is, initially they are advanced as money, then they are used for the purchasing of raw products, materials, fuel and wages, and then they enter the production stage, and, finally, the co~odity form. After the sale of the product the assets reassume a monetary form. 252 FOR OFFICIAL USE ONLY i; ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR dFFICIAL ~ The demand for worYing assets at enterprises at individual periods of the year may vary. In some periods, an enterprise requires minimum amounts of these assets, and in others, due to the unevenness o~ incomplete production, a delay in shipping, tTie payment fbr products, and so forth, the need for working assets can increase sharply. _ Ti~e working assets of enterprises axe divided into own, equivalent, outside and borrowed. Own working assets are assigned to the enterprise and axe reflected in its charter capital. The amount of own working assets is set for the enterprises, as a rule, in an amount necessary for meeting the mini- mum demand. In addition to own assets, the working assets of the enterprises also in- clude equivalent to own, as well as outside funds. The equivalent to own assets are the so-called fixed liabilities. These represent the money which the enterprise is constantly using in its activities, however they do not belong to it. The fixed liabilities include: the minimum liability of the enterprise for wa,ges and social security deductions, the reserve for ~ pending payments and other tfpes of debt which have a permanent nature. The most significant source of forming working assets at shipbuilding enter- prises is the debt of clients for paying for products (ships) by partial readiness. Due to the fact that the shipbuilding enterprises ha~re'a long production cycle, thzy are permitted to receive intermediate payments from the clients by the stages of the partial completion of the vessels. The amount oi this portion of the fixed liabilities is determined by a special calculation on the basis of the plan for producing shipbuilding products. The outside funds of the enterprise are various types of debt. The additional needs of enterprises for working assets are satisfied by bank credits. 120. Establishing the overall amount of the own working capital rat e. After setting the rates for each type of normed working capital for ma~erials, purchased semifinished products, fuel, incomplete production _ and so forth (see Chapter 9), the overall rate of working capital for the enterprise.is found by adding the working capital rates in monetary terms for each type of normed working capital. Such a method for setting the working capital rates is the most accurate and economically the soundest. However it is very labor cons~ning, and for this reason it is advisable ~ to employ it for calculating the working capital rate once every 3-5 years. In the interval between the stages, ,for the calculation it is essential to use data on the amount of working assets over a certain period calculated - by the above-indicated method, from which one excludes the surplus and un- - necessary stocks and adds the additional stocks of normed working capital of each type as they arise in the period being planned with a change in the production, supply and marketing conditions. 253 FOR OFFICIAL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 - FOR OFFICIAL USE ONLY The basic drawback of this method of determining the capital rate is its orientation on the already existing production conditions, that is, on the - achieved level, although, as is known, the level of production cooperation, the shortening of the production cycle, the acceleration of transport ties and other factors influencing the speed of working capital turnover con- stantly change, in helping to accelerate its turnover rate. 121. Sources of forming working capital. Own and borrowed funds can be the sources for the forming of working capital at shipbuilding enter- prises. 'I'he enterprises are given their own capital during the period of their organization from the state budget, and then this capital is added to in the process of operations chiefly from their own income. The amount of each enterprise's own working capital is ad~usted annually in accord with the calculated working capital rate. In those instances when a reduction in the rate has been planned for the end of the year being planned in comparison with the start of the year, in the enter~prise financial plan provision is made to confiscate the corresponding portion of own working capital; when an increase in the rate is planned for the end of the year or quarter, provision is made to add to the own working capital. Working capital is ordinarily transferred to the corresponding account of the superior organization or to the state budget. The working capital rates of the enterprises are most often increased by: an increase in fixed lia- bilities; a surplus of own working capital at the start of the year; enter- prise profit; the delivery of inexpensive supplies, tools and spare parts purchased from money for ma,jor overhauls and capital construction; receipt of money from superior organization through redistribution channels. Only as an exception is money given from the sta.te budget to replenish own work- ing capital of operating enterprises. One of the important sources for replenishing working capital is the fixed � liabilities, that is, the permanent minimum liability for wages and social security deductions, the reserve to cover future expenditures and payments; suppliers for unbilled deliveries; creditors for paying for partially com- pleted products; money to be confiscated under turnover creditin~; money of the amortization fund for material inventories for major overhauls; temporarily f.ree money in special funds used to finance planned measures; other fixed liabilities. The amount of the increase or decline in the fixed liabilities for each item is determined by a special calculation. Thus, the amount of the minimlun wage liability is determined proceeding from a 1-day wage fund in the fourth quarter of the year being planned and the number of days between the end of the calculation period and the day of paying wages for the month. For example, the dates for paying wages - have been set at the 7th and 22d of the month, and the 1-day wa~e fund is 60,000 rubles. The minimum wage liability in months which have 30 days will be: 254 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240020009-8 FOR OFFICIAL USE ONLY - 7 days x 60,000 rubles = 1+20,000 rubles ~ _ 122. Crediting of shipbuilding enterprises. Shipbuilding enterprises - for forming working capital can receive a11 types of short-term credits, including: Credits against inventories of materials and cor~anodities, for - - bills en route, payment credits, and so forth. . Because of the unstable level of the amount of incomplete production, the frequent conversion of shipbuilding enterprises to producing a new product (developing the production of n~w types of vessels) and, consequently, the systematic appearance of a need to accumulate above norm material stocks and other factors, in shipbuilding there is the widespread practice of crediting by granting planned loans for above-norm inventories of commodi- ties and materials. The loans are granted under the condition of a specific purpose and prompt repayment with the paying of interest for their use. In crediting.the bank shows a differentiated approach depending upon the re- sults of the production, economic and fina,ncial activities of the enter- prises. On the one hand, the bank grants advantages to enterprises which have successfully fulfilled the product sales and profit plans and have maintained their own working capital, and on the other, applies credit sanc- tion measures against the enterprises which have not observed these condi- tions. Crediting for the turnover of materials and wage expenditures has not been widespread in shipbuilding. 123. Expenditures covered from specific budget financing. In addition to expenditures on the production and sales of products and also expenditures on the reproduction of fixed capital, the shipbuilding enter- prises also make so-called operational and other expenditures. These ex- penditures are financed both from the money of the enterprise itself as well as from the state budget. The money of the state budget is used to finance expenditures on invention and production improvement which are of sectorial and national economic significance; expenditures on the conserva- tion of water and air basins; the running of nurseries, creches, technical schools, vocational-technical schools, courses for the skill improvement of specialists, and so forth. Estimates should be drawn up for each of the �areas of expending this money, and effective control should be organized over its economic use. 12~+. The income and expenditure balance. The income and expendi- ture balance (the financi~,l plan) is the.concluding and very important section of the tekhpromfinplan at shipbuilding enterprises. It reflects the income and receipt of money, expenditures.and.deductions, credit relation- ships and relationships with the budget. In accord with the accepted planning methodology the enterprises work out long-range, current and oper- ational financial plans. Both generally in the process of financial plan- ning as well as in compiling a financial plan, the following problems are resolved: The coordinating of the basic quotas for product sales, costs, 255 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240020009-8 FOR OFFICIAL USE ONLY profits and profitability; the disclosing and mobilizing of production re- serves for the purposes of the most rational and effective use of produc- tion capacity, for the growth of' labor productivity, profit, an improvement in product quality, for achieving the greatest results with the least ex- penditures; providing the enterprise with the necessary financial resources - for normal production and economic activities, and for creating conditions for a,n effective system of management and control over enterprise operations. _ The financial plan reflects the financial calculations for all types of ac- - , tivities at a shipbuilding enterprise: Basic activities, capital construc- - tion, major overhaul, the housing and utility system, sociocultural measures, and so forth. The compiling of the plant income and expenditure balance is preceded by the elaboration and coordination of the planning.calculations. The basic ones are: Amortization deducations, payments to the state budget for the use of productive capital, deductions into the economic incentive funds, the rates ~ of own working ca~ital, deductions from profit into the budget, and so forth. An inseparable part of the financial plan is also the estimate ex- penditures on carrying out scientific research, on the training of personnel, and on the running of children's and preschool institutions, the economic _ support of clubs and other sociocultural institutions which are supported by the plant trade union i;ommittee. For a ma~ority of items the amount of expenditures in the financial plan is set in a total corresponding to the amount of income (for example, amortiza- - tion deductions and expenditures on major overhauls, and so forth). For certain items income and expenditures are planned only for the total change in the balance or their sources (for example, a change in the own working capital rates, a change in the total fixed liabilities, and so forth). The income and expenditure balance is drawn up for the year with a quarterly breakdown. The form of the financial plan is recommended in the standard procedure for working out the tekhpromfinplan. The financial plan, in being a component part of the tekhpromfinplan, is worked out on the same dates as the enterprise tekhpromfinplan. It is ap- proved by the enterprise leader. 12~. The payment calendar. The compiling of a payment calendar is an area in the operational financial work at the enterprise. The calendar reflects, on the one hand, the sources for the receipt of money, and on the other, the expenditures on carrying out enterprise operations, that is, the payment calendar encompasses the entire movement of enterprise money. 126. The credit application. All shipbuilding enterprises ~+5 days prior to the start of the quarter being planned submit credit applications to their main administrations. At the main administrations, on the basis - - of these applications, summary applications a;�e drawn up which are then _ 256 FOR OFFICIAL USE ONLY - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY remitted to the ministry and from here they are submitted to the USSR ~ Gosbank and the appropriate gosbank department at the location of the credited en~terprises. A credit application is a calculation of the planned demand for indi~vidual types of credits Por the fortlicoming quarter and an explan~,tory note for this. The availability of materials, equipment, ~iesif_*,r~-estimate specifications and so forth at the enterprise is a requisite r_ond.ition for including a demand for credit to int.roduce new equipment and other measures related to improving production in the credit application. For establishing the soundness of obtaining loans for above-norm material an~. co~unodity inventories, lists are drawn up for the movement of the ob- - ~jects for which a credit is requested. 127. Th e c ash p 1 an. The enterprise cash plans play an important role in correctly organizing monetary circulation in the nation. The cash plan is the plan for the turnover of cash in the enterprise cash office, and it reflects the receipt and disbursement of cash through the enterprise cash office. The enterprise draws.up the cash plan 45 days prior to the start of the quarter being planned, and submits it to the gosbank depart- ment whic~ serves it. The plar_ consists of four sections, and is compiled according to the form and in the procedure approved by the USSR Gosbank. The first section of the cash plan reflects the receipt of money, with the exception of money received in the bank, the second shows the expenditures of cash, the third gives the calculation of wage payments and other types of labor payments for the quarter being planned, while the fourth section shows the calendar for the payment of wages to the employees and o+her ~ payments equivalent to wages. Control over the carrhing out of the cash plan is provided on the basis of data on the operational accounting of the income and cxpenditure of money by specific purpose. 128. Analysis of financial activities and financial state of an e nt erprise represents one of the concluding sections in comprehensive economic analysis of economic activities at shipbuilding enterprises. This is carried out from the data of the balance sheet for the basic operations of the enterprise. Its most important tasks are: a calculation of the availability of own and equivalent working capital, an analysis of the state and normed and unnormed working capital, an analysis of the use of bank credits, the establishing of the degree of observing payment discipline, ascertaining the level and dynamics of assets and liabilities, determining the amount and directions for the immobilization of own working capital, and so forth. The amount of own and equivalent assets can be determined using Table 65. The in the analysis the reasons are ascertained for a deviation in the total of own working capital from the rate. Most often the reasons a.re: the overfulfillment or underfulfillment of the profit plan, as well as de- viations in the total actual financing or confiscation of working capital provided under the plan by the superior organization. 257 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY Table 65 - Analysis of Available Own and Equivalent Assets (figures Y~ypothetical) (in thousand rubles) At year's At yeax's Change over Indicators start end yr. 1 2 3 1. Sources of own and equivalent assets: a) result for group 1-11 of first - section of balance sheet liabilities 18,3~+1 19,832 +1,491 - b) fixed liabilities within rate 6,250 6,~+00 +150 2. Total for section I(col. 3 and col.. for balance sheet liabilities 2~+,59T 26,232 +1,6~+1 3. Fixed capital and noncirculating _ assets (total far section I of assets) 18,353 19,812 +1,1+59 4. Available own and equivalent assets (line 2- line 3) 6,238 6,~+20 +182 5. Rate of own working assets (total for section II, cols. 3 and of assets) 6,100 6,300 +200 6. Surplus or shortage of own - _ working assets for balance sheet (line - line 5 ) +138 +120 +18 7. Surplus or shortage of own working capital in q of rate +2,3 +1.9 - In analyzing the state of normed working capital, the deviation is estab- lished for the actual availability of assets by their individual types from the amount established by the rate. An important question in analyzing _ the financial operations of an enterprise is to determine the turnover . rate of the working assets. The turnover rate of working assets is charac- , terized by a system of indicators: the turnover rate of working assets in days; the turnover rate coefficient (the number of turnovers per year); the total working capital freed from circulation or additionally put into - enterprise circula.tion. The average duration of the turnover of working capital in days K(for a month, quarter or yeax) is determined as the ratio of the product of the average balance of working capital W and the number of days in the period D - to the total product sales P over this period: 25$ . FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY K = ~ , ~ In the process of calculating the indicators for the turnover rate of work- in~ c~.pital, the number of days in the period is assumed to be equal to 360 for a year, 180.for 6 months, 90 for a quarter, and 30 for a month. - The turnover rate can be calculated not only for the normed but also for all working capital. In analyzing the use of bank credit, attention must be paid to how completely the enterprise has used its right to receive a credit, whether the credits ~ have been fully secured, whether the credits have been used according to their specific purpose, and whether they have been repaid on time. The state and dynamics of debts and assets can be studied at the enterprise from the data in the "C" section of the balance sheet assets. In the process of this analysis, it is essential to ascertain the justified and un- justified debts. The justified debts include all types of debt the exist- ence of which is inevitable even with the normal process of operations, for example, debt for apartment rent for the last month, debt for account- able persons on an official mission, and so forth. Then it is essential to analyze the dynamics of debt and assets, and to disclose the reasons and guilty parties for their formation. Of important significance in the process of analyzing the financial state of the enterprise is a determining of the amount and directions of the im- mobilization of working capital (that is, its withdrawal from economic circulation). In the process of this analysis, the types of working capital immobilization are established as well as the reasons of its occurrence, a,nd measures are worked out to eliminate it. The basic reasons for the im- mobilization of working capital at shipbuilding enterprises include: the presence of above-norm inventories which are uncredited by a bank; uncredited . commodities which have been dispatched but for which the payment date is not due; the debt minus that credited by the bank; investments of working capita7. in expenditures on capital construction, major overhauls, and so forth. 259 FOR OFFICTAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ; - CHAPTr'R 15: INTII~NAL PLANT ECONOMIC ACCOUNTABILITY 129. Basic principles in the organization of economic accounta- bility in the subdivisions cf a shipbuilding enterprise. In- ternal plant economic accountability is a development and 3eepening of ~ enterprise economic accountability. The "Statute Governing a Socialist State Production En~erprise" approved by the Decree of the USSR Council of Ministers of 1+ October 1965, No 731, and the "Statute on a Production Association (Combine)" approved by the Decree of the USSR Council of Minis- ters of 27 March 1974 state that the economic activities of the production units, shops, sections, divisions and other elements of the enterprises and associations are to be carried out, as a rule, on the basis of internal economic accountability. Thus, the internal production (internal plant) economic accountability is recommended as a compulsory economic system for production management within the enterprises and associations. Regardless of the common aims of economic accountability of an enterprise and internal plant economic accountability, there are substantial differ- ences in their organization, and these must be considered without fail in carrying out measures ai.med at deepening internal plant economic accounta- bility. These differences are determined by the differing status of the production enterprises (associations) and the internal plant (internal pro- duction) subdivisions within the system of social production. A socialist state enterprise (association) is a legal entity, it has an independent balance sheet, a payment account at the bank, and fixed produc- tive capital and working assets have been assigned to it; its rights, duties and responsibilities are defined by legislation. As for the internal plant subdivisions, economic accountability in their operations is based on another basis, in particular, the internal plant.subdivisions.do noti buy or sell any- thing, they do not possess an independent balance sheet, and do not have the rights of a legal entity. For carrying out production quotas, in ac- cord with the rates and standards, the necessary production resources are made available to them, as well as sources of material and maral incentive. The results of the production and economic activities of the internal plant production subdivisions are monitored by comparing the plan quotas for the established range of indicators with their actual fulfillment. ~ 260 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY . '1'Yie rnaterial lia.bility of self-supporting enterprise subdivisions in an ideal case should be manifested in the compensation by self-financing sub= - divisions for losses caused to other subdivisions by shortcomings in the work of the given subdivisions. However a system of covering losses and - payin~ penalties under intershop claims does not always provide positive results, since it rarely diverts the leaders of the self-financing enter- prises from solving the production problems confronting their collectives. For this reason, at the shipbuilding enterprises, where the use of internal plant prices for products is difficult, it is quite sound to feel that the question of applying economic ~anctions is more often solved by a corres- ponding reduction in the owed amount of the material incentive fund or the lifting of bonuses for individual employees for the failure to fulfill the economic accountability obligations. Por o.rganizin~; effective internal plant econ~mic accountability at the enterprise, the following should be provided: The leaders of the internal plant subdivisions should be granted the right to dispose of the means of labor, subjects of labor and labor force assigned to them; the presence of statutes governing economic accountability of the internal plant subdivisions a.nd the procedure for forming and utilizing the material incentive funds, for the conditions and indicators for paying bonuses to the shop employees; the granting of rights to the subdivision leaders themselves to calculate the plan indicators for their activities on the basis of a limited number of basic indicators approved by the plant administration; the presence of _ a shop tekhekonomplan [technical and economic plan]; the presence of a pre- cise system of planning and accountir_g units; the presence of progressive standards and rates for the consumption of materials, semifinished products, fuel, tools, labor resources, and so forth to be consumed by the internal - plant subdivisions; the presence of fixed internal plant prices for materi- als, semifinished products, spare parts, tools, various types of services, and so forth; the presence of the required weighing and metering equipment and instruments in the internal plant subdivision; the accounting and analyz- ing of results for the production and economic activities of the self- financing subdivisions. `1'he internal plant economic accountability at shipbuilding enterprises is ~ ordinarily viewed in various aspects: in the first place, the economic a.ccountability of the shops in basic and auxiliary production; secondly, the economic accountability of the functional departments and services, and, thirdly, economic accountability of the production sections, brigades and individual executors. 130. The choice of a system of indicators for the economic accountability activities of shops. The system of economic aceount- ability indicators should be based upon a consideration of the specific production conditions in each internal plant subdivision. They should help to solve the most important problems confronting the collectives of the production shops; they should provide comparability of the operating - results of the individual shops and the plant as a whole; they should serve 261 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY as an ob,jective basis in providing material incentives; they should pro- vide ~.n opti.rnum balance of physical and cost indicators. The plan of the self-financing subd3visions should provide a minimum number of indicators and only those on wY~ich the given collective can have a direct influence. Ordinarily three groups of indicators are distinguished in the plans for the internal plant self-~inancing subdivisions: directive, that is, approved by the plant leadership; calculated, that is, determined by ~the self-financing shop itself; evaluation which is used as the basis for determining the results of operations and forming the shop material incen- - tive funds. The list of directive indicators planned for the basic produc- tion shops is given in Chapter 2. The results of the economic accountability activities of the shops at a ~ majority of the shipbuilding enterprises are judged on the basis of using tne indicators of costs or expenditures on the production of commodity product. 131. Planning production and economic activities of the self- financing shops in basic production. A number of demands are made upon planning indicators for the economic accountability activities of the basic production shops. These include: The aggregate of shop plans should , - correspoiid to tne plant plan; tne indicators for the shop production program should be interrelated; the internal plant plans should encompass the same planning period as the enterprise tekhpromfinplan; the criteria of plan tautness at the enterprise should be uniform for all the self-financing - shops. The composition of the directive and calculated indicators for the internal plant economic accountability in the basic production shops at a ma,jority of enterprises is planned according to the sectorial procedural instructions.l " The economic accountability indicators for shop operations are planned by working out five-yea~ (with an annual breakdown), annual (with a quarterly breakdown) and quarterly (with a monthly breakdown) plans for the produc- tion and economic activities o~ each subdivision. The internal plant tech- nical and economic indicators of the shop for the year are reflected in their tekhekonomplans which are worked out with the broad involvement of the shop employees. The planning of the individual indicators for the operations of the basic production shops basically conforms to the procedure for the planning of 1See: "Organization of Internal Plant Economic Accountability at Ship- building Enterprises (Basic Provisions)," Moscow, TsNIITEIS, 1971, pp 13-14. 262 FOR OFFICIAL USE ONLY - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL L'SE ONLY indicators of the same sort for the plant as a~rhole, and this procedure has been examined in the corresponding chapters of the present handbook. - `Phe methodolo~;y of planning the number of e~mployees and the wa~e fund for the self-financing shops i.s analogous to the setting of these indicators in the 1~.bor plun of the plant as a wfiole. '1'he money of the material ineentive fund allocated to the shop is planned proceeding from the indicators of the growth rate of the shop production volume provided for the corresponding year of the five-year plan. The cost of commodity product is planned for the shops for the basic PUYe [planning and accounting unit] set for assessing the output of commodity product. As was pointed out above, as the basic PUYe it is possible to use: the shop-stage, the group-shop-stage and the shop-vessel for shipbuilding, the machine-set for products of interplant cooperation and other nonshipbuild- ing products. The cost of the b~.sic PUYe is planned for all orders, both those comprising and not comprising the commodity product. The pl_anned cost of the basic PUYe should be calculated on the basis of the current or expected rates. In the absence of rates, as the basis of the calculation for the planned cost of the PUYe for ships under construction, it is possible to use: the lists of the specific material consumption :;tandards for materials; the lists of interplant cooperation for purchased - products and semifinished materials; the lists of forged pieces, castings, stampings drawn up for each cons~amer shop for the own-produced semifinished product; the quotas of labor intensiveness worked out by the department of _ the chief production engineer for each shop and section broken down for the PUYe for labor intensiveness; the average wage rates of the production work- ers per norm-hour set by the de~artment of labor and wages for each shop for the year. being planned for wages. The planned cost of the basic PUYe can be set from the following costing items: For prototype vessels For series-produced vessels, interplant cooperation products and other nonshipbuilding products 1. Basic wages of production workers l. Materials 2. Shop expenditures 2. Purchased products and semifinished materials 3. Own produced semifinished materials Basic wages of production workers 5. Shop expenditures _ ; - 263 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY If at the plant by the moment of starting the construction of the prototype vessel the lists have already been worked out for the specific consumption standards for materials and semifinished products in terms of the basic PUYe, then the cost of the prototy~e vessel sliould be planned for the same cost- ing items as for the serially produced vessels. - 132. Planning the production an~ economic activities of the self-fina~nc:ing shoFs of auxiliary production. This has a number of particular features in comparison with the planning of production and economic activities for the basic production shops. The most important of them are tha.t in planning the production volume for auxiliary shops, along with using the indicators for co~nodity and gross product in monetary terms, wide use is also made of physical indicators, for example, in the transport ~ shops, the run in ton-kilomet~~rs, machine-hours of operation, and so forth; in repair shops, a unit of repair complexity, and others. The next feature in planning the activities of auxiliary shops is that with the economic use of the services (steam, electric power, transport services and so forth) provided by the auxiliary shops for the consumer shops, the cost of a unit of their product can exceed the plan but not at the fault of the auxiliary shops. For this reason for the auxiliary shops the most im- portant evaluation indicator approved for their activities should~be not the cost of a unit of service but rather the total production expenditures. The nonfulfillment of the plan for services (work) by the auxiliary shops - as a consequence of the absence of a demand for the services by the client shops should not be considered a neg~.tive aspect in the activities of the auxiliary shops. In this instance their plans should be corrected, and the obtained savings should be put in the service of the given auxiliary shop. Since the approach to planning the production indicators and evaluating the results of operations of auxiliary shops differs substantially from the solution to this question in terms of the activities of the basic produc- tion shops, let us give the composition of the designated indicators which are most often used in organizing the economic accountability activities of the auxiliary production shops at the shipyards (Table 66). 133. Accounting and analysis of operational results of self- ~ f inanc ing shops . The most important condition for the functioning of an effective system of internal plant economic accountability at an enter- prise is the organization of the accounting of operational results for the self-financing subdivisions. The use of economic accountability relation- - ships within the enterprise confronts accounting with.the following tasks: The completeness and thoroughness of depicting the accounted for ob,jects; the promptness and efficiency of receiving the general indicators; the accuracy and reliability of the accounting information. , In accounting for the results of the economic accountability.activities of the internal plant subdivisions, all types of accounting are used, includ- ing bookkeeping, operational and statistical. Bookkeeping accounting for 26~+ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY ~ ~a~ ~~no w ~ ~ ~ �.a ~ ~ N w r w~ ~'~a .aa~~'a~i 'd �~'N~~~u oa~.~4~~~a,a o a~ a,c~~ ~ .~,~s~o~.q ~ a~~�~�~ ~ q a~ o o ~n o 4-+ a w u~ u t~ 3 ~n w~ ~ ~ ~ o o ~4-�, o~ ~o a~ ~ ~O N O ~ O -1~ 'd ~ rd m o�~ ~u~ ~ a a�~av m~~~ o ~-~i r~n ~ ~ �o 'a~i ~ 'a`~i ~ ~-~i 'a~i ~ ~ N a~y~ o a ~ ,n O E~ 4-~ U~] ~ U r-~i O~ .o ~ S~+ O O ~ O a3 O~ Ha ~~r~+~~. ~ ow ~~-i o cv r'i ao ~ ri N f~'1 _ ~ ~ ~ ~ I 4-i ~ U1 ul }q a,~ y, ~ ~ O ~ ~ w n p, 46 ~ F~ N N N ~ a o o'~ ~ N~~ 4-i N N . ~ ~ o~~'a o~n,�~�'�+~ ~v~ 0 ~ '~~�d a~i ~ u~i o o a`~i a~'i rt " ~ ~ ~au�~a~ a~ u~ a~.~o w ~bw ~ ~ ~ o~ ~ ~ o+~ ~ a~ ~ a ~ o ~ �oo~v~a~i.~a~~ �~~f''~o~ u~i�1~a~i ~ u, ~c�~~-�~r~�~ o i u~ ~c�~ o~ v~'i ~o a~i 1 1 I N~ N y~ b ~ ~ ~ N ~ _ ~ 40 N --T-~~_ ~ H ~ a~"i ~ ~ a ao ~ a~i ~ ~ v^ ~ ~ m b w o ss u u o p~ s~~ r ~ ad ~ v A N O O ~~p �~-1 R3 . ad O pa O~tt! ~i-i ~ O ~d ~ ~ O v{ ~r O c'~''d ~ ~ ~ ~ a~d ~ u1 y~ o x v a~ ~ aa w y, w bo ~ o ~ ~n ~ u ~ a~ o ,n o ~ ~ :s ~ ~ w a~ a~ o~ 0 3 rz ~ a ^ a ~b~ ~a u.~ ~a, ~a, o+~ o u,~~n �,~u,~ o~ 0 0 ~ a~ ~d q o ~ o+~ m ~n p, ~ ~ o�~ aa 4-+ w o~, o e,~ o o�~ a v~ a? ~ u~ ~ a a~ o 0 0 0~ o~ M o+~ v~ o q 4+ y, p, u v ia r-I ~ Z~ PG U ~ S~ P4 T! GYi ~ 4-I N i~ �rl i~ r'~ ^ 0-1 O O ~d O ;7 ~�r1 N ^ a3 �ri rd ~ U U�rl N O 4i O O O Zy QO ad ri O~ O O ~ N U] cd N rl ~ ~ ~ ~~r~ ~a N~a~ w~~ ~ `~~~c�~ ~a~ a � ~ o ~ ~ H rl N f~'1 lI~ ~O i~ ri N (+'1 U ~ ~ r~ J 43 ~ O a ~ N ~ ~ a, o� a o~-y,i rz ~ i w o ~ o a~ at a~ ~ o i o.o ~ w ~ a~ ~n ~ w~' ~ ^a au ~ rao ~o o�,~ ~d v u~.+~ ~ ~ a~ a, C w ^ o ~ o ~ ~ rd a~i ~d aai � ~ �a ~ O U i, i-~ ~d m i~ ad 3~ N O m tn . ~ ~ N w~~n a+~ a~ a~ a r~-I �r~l O~.-~ ~ 4i G1 �rl 4-1 W 1d N O ~ ~ N H 4-1 w N ~ rl ~~rl N W+~ O W.~i O�rl N ~ U,Li O N N 4 O � a, i~ N U Cd r{ '~n w ~ ~ u~ s~ ~ m ~ � b 5e o u ~ ~ p, ~ o a b~~�~+ a, a, a~ a~ ~v cs ~ o o i H+~ a~ a~ 4~, w a~ a, a w a~a,o+ b a,va,~,u~ o w H~~ ~ s,w~,u ~ ~q~a~~~s~o ~ ~~w~n ~ ~ a~uaoa~a~o�~ o a o~ ~d a m�,~ N ~ o ~n ~ a~ a~ o w z~ a-, ~ o c~ a~ ~ ai a~ a~ u va u v v s~ ~ o s~ o ~ b ~~~ca �aa~~p~.~~+a~a>a~ ~s~~w~+~ �r~ a~ o - ~ o F~ vi 4~ ~n i~+ ~d rn t~ ~ i~ g u N�~ N.N ri ~7 ~ O~+~ �rI o~ ~ N a4 N O~~ o N tn ,sq� 4-~ af N�~-i ~c~ ~ F1 cd Cl ~ ~ ~ O Ci ~ m ia O~, O m N i-~ W tA Q~d G~ a p, �~I q ~ c.~i~ oaa~ P~W~~ o~ a~i~~-1v~~a~u ~ ~ ~o aNi~P~4 ~ ~ ~ _ ri N cV) u1 ~O l~ a0 O~ O. rl r-1 N f+''1 ri r-I 265 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY t.tic opc~r~,t int; irici i catorc of the self-financing :;ubdivisiori:~ is usually car- rieci out on a centralized basis by the enterprise bookkeeping office which ~,ccounts for the movement of the plant a--~ets in terms of the ob,jects of in- ternal plant economi.c ~.ccountability. Op~ ationr~l accountin~ is carried ou~t t~y Lhe c~rnplo,yees of the product~on and technical. service: oP the enterprise ;uul i,lu~ ::e1i'-I'.i.nr.tncin~ s}iops. /111 1.hc operat.in~; indicators of the self-financing subdivisions ~.re accountcd for in accord with the methodology of their planning, and this makes it pos- sible to provide comparability of the plan indicators and the actual results of their fulfillment. Ordinarily the reciprocal claims among the self-financing shops as well as penalties are not accounted for in the systematic bookkeeping. As a rule, these are shown in the reports for the total result of the operating indica- tors of the self-financing subdivisions and are taken into account in evalu- a,ting their work. - 134. Economic accountability in sections and brigades. For the purposes of extending and developing economic accountability at an enter- prise, its element~ must be extended to the sections, brigades and individual - executors of the work. TYie composition of the indicators in the plan of the sections and bri~ade - is ~i~nificantly narrower than for a shop. It includes the following quot~.s: l~or the production program; the number of employees; the wage fund; labor productivity; product costs for the portion which depends directly upon the activities of the section. The shop chief sets the plan indicators for the sections. In the assembly shops, an assembly unit or production set can be the unit for the volume of production in the section; a ton of castings, forged pieces and so forth can be the unit in the preparatory shops. In planning expenditures on production, most often the sections are given quotas for one or several cost elements (materials, fuel, energy or wages). The use of the principles of economic accountability at the work areas con- sists in the fact that the workers assume obligations for the growth of - labor productivity, for saving materials, fuel, and energy, they open up personal savings accounts, and so forth, and in accord with the fulfillment of these their activities are encouraged. 135� The use of the principles of economic accountability in the functional departments of the plant administration. Since the functional departments are not directly involved in the production process, and they are not given the means of production and the results of their work cannot be expressed as the end product of the plant in a monetar,y form, the . functional departments cannot operate on economic accountability. However their activities carinot be outside the sphere of economxc accountability r~lationships. For this reason, at many enterprises for assessing the work 266 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY results of the functional departments, indicators are used which are ir,- d.irectly linked with the system of economic accountability indicators at tl~e plant, for example: l) For the department of the chief designer, this may be the economic efFect . obtained from introducing new equipment and carrying out other organizational - and technical measures; the economic effect obtained by producing higher quality product; the fulfillment of the plan for the elaboration and turning out of specifications; the reduction in losses in the shops due to the prompt making of changes in the blueprints; 2) For the department of the chief production engineer, this can be the ful- fillment of the plan for raising production efficiency for the areas related Lo the service oF the chief production engineer; the ful!'illin~ of quot~.s to reduce the labor intensiveness of vessels and articles; carrying out the schedule for the technological preparation of production; the economic effect from measures related to improving production methods. Thus, for assessin~ the krork results of the departments and services of the plant administration, indicators are created which to the greatest degree describe the work results of these subdivisions in the area of increasing the production efficiency of the entire plant. 1;6. Ev~,luating the work results of the self-financing sub- divisions and the system of material incentive. The effectiveness of internal plant economic accountability depends largely upon the correct determining of the operating results of the self-financing subdivisions. The operating results of the self-financing subdivisions are provided on the basis of evaluating plan fulfillment for the directive as well as certain calculated indicators. The materials for summing up the operating results oF tlie self-financing shops are: the data of the monthly reports, the forms and dates of submission are set by an order of the plant director, as well a~ the results of analyzing the operating indicators of these subdivisions. The place of the self-financing subdivisions in the internal plant socialist competition in terms of the results of their work during the month is set st the enterprises by different methods, amon{~ which one of ~he most widely found is the method of points. Here a certain number of points is set for a 100 percent fulfillment of the plan and for each percentage of its overful- fillment using a previously worked out scale; with the nonfulfillment of the plan, minus points are given depending upon the degree of plan nonfulfillment for the individua.l indicators, and after this the points are added up and the subdivision which has the largest number of points is considered the winner. Proceeding from the evaluation of the operating results of the self-financing subdivisions, the tautness of their plan quotas and the place held in the internal plant competition, the amount of the material incentive funds is determined for the employees of these subdivisions both from the general material incentive fund and from the wage fund. 267 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 , FOR OFFICIAL IISE ONLY `i'he money of the bonus funds and the above-indicated portion of the wage fund is distributed between the employees of each internal plant subdivison on the basis of the bonus statutes in e~Pect at tiie enterprise, and this in- cludes: for i:he fulfillment and overfulfillment of the output st~.ndards, the qual~ity o.f the perf.oY�med work and produced product, the reduction iti ~Lhc~ con:umption of raw products, materials, fuel ~,nd energy; for the fulfilLnent and overfulfillment of the plan in terms of other qualitative and quantita- t. ive i.ndicator:~. Ordinarily not more than two basic indicators are set for which the fulfill- ment and overfulfillment of the plan entail a bonus. In shipbuilding for paying bonuses to engineers, technicians and white collar personnel, such indicators can be: the volume of cou~odity product or commodity output, a reduction in product costs, labor productivity and the return on investment. Certain additional conditions are set in the statutes governing bonuses for shops and departments, as these reflect the specific work of the given sub- ' division. Among the additional conditions along with the basic indicators, there can be such conditions as the observance of the necessary ratios be- tween the growth rate of labor productivity and wages, the fulfillment of quotas for reducing labor intensiveness of the manufactured product, meetin~ the percentage of the progress in the technical completion of vessels under construction, and so forth. With the nonfulfillment of the required condi- tions, a bonus is not paid. With the nonfulfillment of the additional con- - ditions, the.amount of the bonuses for the given category of engineers, technicians and white collar personnel or the individual executors is re- duced, but by not more than 50 percent. 268 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 rOR OFFICIAT. IJSE nN1,Y BIBLIOGRAPHY General 1. Marx, K. and Engels, F., "Soch." [Works], Vols 20, 21, 23, 25, part 1. ~ 2. Lenin, V. I., "Poln. Sobr. Soch." [Complete Collected Works~, 5th Ed., Vols 1, 3, 24, 27, 35, 36, 1+1, ~+2. 3. "Prograanna KPSS" [CPSU Program], Moscow, Politizdat, 1971+. 4. "Appeal of the CPSU Central Commi.ttee to the Party and the Soviet People," EKONOMICHESKAYA GAZEfA, No 2, 1975. 5. "Me.teriely XXV S"yezda KPSS" [Materials of the 25th CPSU Congress], Moscow, ~ Politizdat, 1976. - 6. "Osnovnyye Napravleniya Razvitiya Naxodnogo Khozyaystva SSSR na 1976-1980 _ gg." [Basic Directions for the Development of the USSR National Econoiqy in 1976-1980], Moscow, Politi~dat, 1976. 7. "State Five-Year Plan for the Development of the USSR National Economy," EKONOMICHESKAYA GAZETA, No ~+5, 1976. 8. Akhumov, A. V., "Organizatsiya i Planirovaniye Mashinostroitel'nogo Proizvodstva. Spravochnik" [The Organization and Planning of Ma,chine Building Production. A Handbook], Leningrad, Mashinostroyeniye, 1972. 9� Voskresenskiy, B. V., Palamaxchuk, A. S., "Spravochnik Ekonomista Mas~;.nostroitel'nogo Predpriyatiya" [Handbook for an Economist at a Machine Building Enterprise], Moscow,`~Ma.shinostroyeniye, 1971. 10. Kamenitser, S. Ye., "Organizatsiya, Planiroveniye i Upravleniye D~~iatel'- nost'yu Pro~yshlennykh Predpriyatiy" [Organization, Planning and Management - , of Operations at Industrial Enterprises], Moscow, Vysshaya shkola, 1976. 269 , FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000200020009-8 - FOR OFFICIAL USE ONLY 11. Krotov, Yu. Ye., "Ekonomika, Organizatsiya i Planirovaniye Sudostroitel'- nogo Proizvodstva" [Economics, Organization and Plenr.ing of Shipbuilding ~ Production], Leningrad, Sudostroyeniye, 1973. 12. Loginov, S. P.= "Ekonomika Sudostroitel'noy Pro~yshle~nosti" [Economics of the Shipbuilding Industry], Leningrad, Sudostroyeniye, 1973. 13. "Nauchnyye Osnovy Upravleniya Proizvodstvom" [Scientific Principles of Production Management], edited by Doctor of Economics Sciences 0. V. Kozlova, Moscow, Ekonomika, 1969. 14. 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Rabinovich, Moscow, Finansy, 1.972 . 270 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY 2'3. "Spravochnik T.~'l:onomi.sta po Trudu" [Handbook for a Labor Economist], Moscow, Ekonomika, 1969. "~~pr~.vochnik l~;kur.orn.ista Prorr~yshlennogo Preiipriyatiya" [I[andbook for an l~;cociomist o.C an Icidustrial Enterprise], edited by Prof S. Ye. Kamenitser, Moscow, Ekonc~mik~., 1971+. 25� "Standard Procedure for Elaborating a Five-Year Plan of a Production Association (Combine) or Enterprise for 1~76-1980," EKONOMICHESKAYA GAZETA, - Nos 3, 1975. 26. "Khozyaystvennaya Reforma v SSSR" [Economic Reform in the USSR], Moscow, Pravda, 1969, 27. "Ekonomika i Organizatsiya Pro~yshlennogo Proizvo.dstva" [Economics and - Organization of Industrial Production], edited by A. M. Demichev, Moscow, Mysl', 1975. 28. "Ekonomicheskaya Entsiklopediya. Proiqyshlennost' i Stroitel'stvo" [Economics Encyclopaedia. Industry and Construction), Moscow,Sovetskaya entsiklopediya, 1965. _ 29. EKONOI~CHESKAYA GAZETA, 1971-1977. 30. The ,~o�arnal PLANOVOYE KHGZYAYSTVO, No 3, 1976. Special 31. Barun, M. A., "Spravochnik po Finansovo-Ekonomicheskim Raschetam" - [Handbook for Financial r~.nd Economic Calculations), Moscow, Finensy, 1971. 32. Bezrukikh, P. S., "Uchet i Ka1'kulirovaniye Sebestoimosti Produktsii" [Accounting for and Calculating of Product Costs], Moscow, Finansy, 1974. ~ 33. Belobzhetskiy, I. A., "Khozraschet Tsekha" [Shop Economic Accountability], Moscow, Finansy, 1968. 34. Vinnikov, I. B., "Ekonomika, Orga.nizatsiya i Planirovaniye Sudovogo Elektromontazhnogo Proizvodstva" [Economics, Organization and Planning of Ship Electrical Installati~n], Leningrad, Sudostroyeniye, 1974. 35� Vlasov, B. V. et a1., "Organizatsiya Vspomogatel'nykh Sluzhb Ma,shino- stroitel'nogo Zavoda" [Organization of Auxiliary Services of a Machine Building Plant], Moscow, Mashinostroyeniye, 1966. 36. "Vnutrizavodskoy I~c+zyaystvennyy Raschet v Novykh Usloviyakh" [Internal Plant Economic Accountability Under the New Conditions], Kiev, Naukova Dumka, 1971. 271 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAI: USE ONLY 37� Gordon, R. N., "Novyye Printsipy Tekhnicheskogo Normirov~niya v Sudo- stroyenii" [New Principles of Rate Setting in Shipbuilding], Leningrad, = Sudostroyeniye, 1973. _ 38. Gxanovskiy, G. M., "Uchet Fondov Me,teriel'nogo Pooshchreniye," [Calcula- _ tion of Material Incentive ~nds], Moscow, Finansy, 1973. 39� Danilev~kiy, V. 0., Pukshanskiy, B. M., "Tsenoobrazovaniye v Sudostroyenii" - [Price Formation in Shipbuilding], Leningrad, Sudostroyeniye, 1975. ~+0. Drize, I. 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"Instruktsiya po Normirovaniyu Raskhoda Materialov v Osnovnom Proizvodstve Mashinostroyeniya" [Instruction on Rate Setting for the Consumption of Materials in Basic Machine Building Production], Moscow, Ekonomika, 1971. ~+5� "Kal'kulyatsiya i Sebestoimost' v Promprshlennosti" [Costing and Costs in Industry], edited by Prof A. Sh. Margulis, Moscow, Finansy, ~.975. 1+6. K~menitser, S. Ye., "Osnovy Upravleniya Pro~yshlennym Proizvodstvom" [Management Principles for Industrial Production], Moscow, N~ysl', 1971: ~t'7. Kovalevskiy, A. M., "Tekhpromfinplan v Novykh Usloviyakh i Tipovaya Metodika _ yego Razrabotki" [The Tekhpromfinplan Under the New Conditions and a Sta.ndard Procedure for its Elaboration], Moscow, Ekonomika, 1968. 48. Kozlov, V. A., "Organizatsiya Kapital'nogo Stroitel'stva na Predpriyatii" [Organization of Capital Construction at an Enterprise], Moscow, Ekonomika, - 1969. ~+9� Kozlov, Yu. M., "Kak Upravlyayetsya Sotsialist,icheskoye Predpriyatiye" [How a Socialist Enterprise i~ Managed], Moscow, Znaniye, ~968. ~72 FOR OFFICIAL USE ONLX APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 FOR OFFICIAL USE ONLY 50. Kostin, L. A., "Flanirovaniye Proizvoditel'nosti Truda na Promyshlennykh PredpriyatiyakYi" [Labor Productivity Planning at Industri.sl Enterprises], Moscow, GOSj1!)11t1'I.tI&;t, 1961. 51. Kotov, V. F., "Pla.nirovaniye Realizatsii Produktsii, iribyli i Rentabel'- noat;i v Prorr~y~tilennosti" [Plenning Product Se,les, Profitrt and Profita- bility in Industry], Moscow, Ekonomika, 1969. 52. Krotov, Yu. Ye., Vasyunin, S. `d. and Zyskin, A. I., "Opyt Primeneniya Pokazatelya Chistoy Produktsii v Sudostroyenii" [Experiment of Using the Net Product Indicator in Shipbuilding], Leningrad, Sudostroyeniye, 1975. 53. Krotov, Yu. Ye., "Sovershenstvovaniye Khozrascheta na Sudostroitel'nom Zavode" [Improving Economic Accountability at a Shipbuilding Yard], Leningrad, Sudostroyeniye, ~966. _ 5~+. Kuklevich, I. L. and Chupyr', V. T., "Prakticheskoye Posobiye po Organi- zatsii Premirovaniya na Predpriyatii" [Practical Aid on the Organization - of Bonuses at an Enterprise], Moscow, Ekonomika, 1973. 55. LayY.ov, A. M., "Finansovyy Plan" [The Financial Plan], Mascow, Ekonomika, 1972. 56. Loginov, S. P. and Tolkachev, M. P., "Metody Kal'ktilya+:sii v Sudostro- yenii" [Costing Methods in Shipbuilding], Lenin13rad, Sudpromgiz, 1961. 57� Marinichev, I. A., "Fond Ma,terial'nogo Pooshcnreniys Vnutrizavodskikh Podrazdeleniy" [Material Incentive Funds of Internal Plant Subdivisions], P~oscow, Finansy, 1975. ~ 58. Mazalov, Ye. V., "Plan Proizvodstva i Realizatsii Produktsii (Tekhprom- finplan Predpriyatiya)" [The Product Production and Sales Plan (Enter- : prise Tekhpromfinplan)], Moscow, Ekonomika, 1972. 59� "Metodika Opredeleniya Ekonomicheskoy Effektivnosti Avtomatizirovannykh = Sistem Upravleniya Predpriyatiyami i Proizvodstvennymi Ob"yedineniyami" [Procedure for Determining the Economic Efficiency of Automated Manage- ment Systems for EYiterprises and Production Associations], Moscow, statistika, 1976. ~ 60. "Procedure (Basic Provisions) for Determining the Economic Efficiency of Using New Equipment, Inventions and Rationalization Proposals in the - National Econo~y," EKONOMICHESKAYA GAZETA, No 10, 1977. 61. "Metodicheskoye Posobiye Opredeleniya Ekonomicheskoy ~ffektivnosti Org- tekhmeropriyatiy" [Procedural A~d for Determining the Economic Efficiency of Organization and Technical Measures], Khar'kov, Prapor, 1971. 273 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8 - FOR OFFICIAL USE ONLY 62. Milyukov, A. I., "Pooshchritel'nyye Fondy na Predpriyatii" [Incentive F`unds e.t an Enterprise], Moscow, Ekonomika, 197~+. 63. Muzhitskiy, V. V., "Dolgosrochnoye Kreditovaniye Kapital'nykh Vlozheniy" _ [Long-Term Crediting of Capital Investments], Moscow, Finansy, ~975� 64. Nezhinskaya, L. A,, Velikokhat'ko, A. T. and Snezhko, E. I., "Razvitiye Khozraschetnykh Otnosheniy v Otraslyakh Pro~yshlennosti" [Development of Economic Accountability Relationships in Industrial Sectors], Kiev, _ Naukova dumka, 1975� ~5. "Normirovaniye Oborotnykh Srestv Predpriyatiya. 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Basic Provisions on the Formation and Expenditure of the Material Incentive ~and and the Fund for Sociocultural Measures and Housing Con- struction for 1976-1980 in the Production Associations (Combines) end - Enterprises and Organizations Which Have Converted to the New System of Planning and Economic Incentive," EKONOMICHESKAYA GAZETA, No 50, 1976. 101. "Flznktsii i Struktura Organov Upravleniya, ikh Sovershenstvovaniye" . [The Functions and Structure of Management Bodies, and Their Improve- ment], edited by G. Kh. Popov, G. A. Dzhavadov, Moscow, Ekonomika, 1973. COPYRIGHT: Izdatel'stvo "Sudostroyeniye", Leningrad, 1978 10272 Cso: 8144/187o END ~ ~ 277 - FOR OFFICT_AL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200020009-8
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