This paper proposes a simple and original way of calculating the index and the costs of subactivity in companies of all kinds, resulting in a very simple way for companies that produce multiproducts. It is proposed, by means of optimal mixing criteria, the calculation of a general way of determining the subactivity index, which will be used later to determine the impact on costs from total fixed costs. A calculation table and its illustration using computer graphics are suggested.
Introduction
In today's world, the increasingly accelerated advance of science conditions the constant concern of investors in the accelerated recovery of the resources invested, as well as in the full utilization of the installed capacities. The assessment of the non-use of productive capacities is frequently carried out by determining the index and the costs of Subactivity, which shows management the degree of exploitation of productive capacities and the impact on results due to underutilization.
Despite the fact that the technology in use in Cuba, in most of our companies, is not of the latest generation presenting a marked moral obsolescence, the analysis of the maximum exploitation of installed capacities is an analytical task of some importance, due to that, nevertheless, are associated with the technology in operation considerable expenses of maintenance and workforce, which must have an adequate recovery in the productions to be carried out.
Development
For the use of this evaluative criterion, several authors can be taken as a reference, those who place greater emphasis on industrial activities, despite the need for calculation and analysis in various sectors of the economy, say in the transport activity, line of great significance in Cuba. This type of analysis is especially necessary in companies that produce multiproducts, not mainly included in the industrial sector, characteristic of a large part of our companies.
The fundamental indicators that are determined are the Subactivity Index and the Subactivity Costs.
In the case of the specific conditions of our companies, we believe it convenient to propose the simple form of calculation that we illustrate below:
1. To determine the Subactivity Index:
Real Production Obtained
Subactivity Index = 1 - ----------------
Available Productive Capacity
The calculation of productive capacity must be differentiated to:
Industrial companies, measured in hours - machines.
Specialized cargo transport companies, then measuring the capacity in ton-kilometers.
Other companies that produce multiproducts, measured in man - hours.
The establishment of the productive capacity for multiproducts (in units or in value) requires establishing a percentage scheme of total production by assortments or "optimal mix" scheme established by historical average and according to increase projects, with a natural limit on installed capacity. This scheme must be established by specialists from the commercial and production areas. Once an assortment percentage structure is established, it is applied to the capacity in man - hours to distribute the hours of capacity for each assortment. Subsequently, it is divided between the man - hours for each previously established unit in standard form, obtaining the maximum possible production units or available production capacity of each assortment.
In the conditions of exploitation of the assets of our economy, where a large part of our companies cannot follow the vertiginous process of the latest technology, the use of available production capacity is more appropriate than potential productive capacity.
2. Subactivity Costs = Subactivity Index x Total Fixed Costs.
This indicator shows management how much it costs them not to take full advantage of their productive capacities in operation.
For the analysis of the exploitation of installed capacities in most of our companies, the following calculation scheme is suggested.
Example: In the case of multiproducts:
After studying the percentage structures of capacity of any company, the productive capacity is established in man-hours and in units as follows:
| Capacity | Capacity | |||
| Productive | Hours Men | Productive | ||
| products | Per cent | (H. Man) | per unit | (Units) |
| TO | 40.0 | 4000 | 1.0 | 4000 |
| B | 30.0 | 3000 | 0.5 | 1500 |
| C | 15.0 | 1500 | 1.2 | 1800 |
| D | 15.0 | 1500 | 0.8 | 1200 |
| Totals | 100.0 | 10000 | 8500 |
Knowing that the man-hours actually worked in the period are 7480, the Subactivity Index can be determined as follows:
7480
Subactivity Index = 1 - ----– = 1 - 0.88 = 0.12 (or 12%)
8500
The fixed costs accounted for in the period were $ 60,000.00. Taking into account the calculated index, it is determined that:
Sub-Activity Costs = 0.12 * $ 60000.00 = $ 7200.00
The subactivity did not allow recovering in the value of the productions sold $ 7200.00 from the fixed costs associated with the installed productive capacity.
Report and analysis of subactivity
To calculate and report in summary form at the level of the company and its internal structures, the following table could be established:
| Analysis of the Subactivity Costs: | |||||
| (1- (2/1)) | (3 * 4) | ||||
| one | two | 3 | 4 | 5 | |
| Capacity | Production | Index | Costs | Costs | |
| Productive | Real | of | Fixed | Of | |
| Basic Units: | Available | Obtained | Sub-activity | Totals | Sub-activity |
| Total Company |
An illustrative way of showing management by sub-activity is to create a line graph drawn on the tabulated data on the computer.
For example, assuming the behavior of the following indicators in the first half of the year in a given company:
Being able to appreciate a trend to increase the costs of subactivity in the first half of the year.
We can create the following graph to illustrate the behavior of costs of this type at the company-wide level for the first half of the year:
Conclusions
The calculation of subactivity is of special need in the conditions of our companies, despite the little use of installed capacities, a situation that in fact imposes on us our condition as an underdeveloped nation, which forces us to produce with obsolete and non-competitive technologies..
The diversity of production processes, as well as the mixification of types of production processes in most of our companies, requires a general and simple way of calculating subactivity. Therefore, we believe that in the specific conditions of our economy, it is more convenient to calculate the subactivity based on the available productive capacity, and under the exemplified procedure for multiproducts described.
recommendations
As a way of calculating the subactivity applicable to any type of company, we propose the one exposed in the text, with special emphasis on the calculation for multiproducts, according to the explained example, determined based on the criterion of optimal mix in terms of determining the productive capacity..
The suggested summary table and graph are suggested for the calculation and analysis of subactivity for the company in general and its internal structures, using the Excel system.
