Reserves, Intraproduction

in Soviet industry, possibilities for the better use of the production resources available to an enterprise or other economic link, with the goal of increasing the volume of product output, improving the quality of output, and increasing accumulation within an industry. The reserves include raw materials, labor, energy, the use of production capacity, the quality of the finished product, and general production reserves, which are intended for the reduction of production reserves and the duration of the production cycle.

A distinction is drawn between current reserves and long-range reserves, the formation of which requires an extended time and significant outlays. Current reserves are based on the difference between the actual and planned levels of operation, and long-range reserves, on the difference between the work in medium-level and leading production sections. The use of in-traproduction reserves is very important to the national economy, making it possible to reduce production costs and increase the volume of production, profits, and profitability with comparatively small expenditures.

Intraproduction reserves are associated primarily with the observance of a policy of economies and the elimination of various losses of existing resources (working time, equipment, and materials). All production links have intraproduction reserves—a fact that is largely explained by the introduction of scientific and technological achievements at different times in different production sections. The use of intraproduction reserves can be improved by accelerating the improvement of production technology and organization, as well as by eliminating or reducing losses.

To determine the availability of intraproduction reserves, a highly detailed analysis is made of the operations of enterprises and other production subdivisions. The analysis takes into consideration report data on the operation of various production links, accounting records, personal observations, and special studies (photographs, time studies, and employee surveys, for example), which are compared with the operating results of other subdivisions and enterprises. In addition to statistical and mathematical methods, such as models and indexes, the methods of economic analysis are used. A system of indicators characterizing the various aspects of production efficiency is also used to determine intraproduction reserves. Among the indicators are the level of profits and profitability, product sales, the level and dynamics of labor productivity, declining production costs, improved quality, savings in outlays of materials and energy, and the level of technology, including mechanization, electrification, automation, the use of chemistry in production, and the introduction of advanced production methods and organization.

The discovery and use of intraproduction reserves in other production sectors, including construction, transportation, and agriculture, are of great significance for improving efficiency in the national economy as a whole.

The chief factor in the use of intraproduction reserves is scientific and technological progress. Substantial intraproduction reserves are released when expenditures for management and for production services are reduced. All the working people are involved in the discovery and use of intraproduction reserves, as are the public bureaus of economic analysis, rationalizers and inventors, permanent production conferences, technical and economic councils, and people’s inspection groups.