Balance of Production Capacities

a special bal-lance reflecting change in capacity on the basis of condition, peculiarities of reproduction, and degree of utilization of equipment or other types of means of labor that determine the output of products. Report balances of production capacities and planning balances of production capacities are drawn up. Production capacity is calculated by enterprises and branches. The term “production capacity of an enterprise” means the maximum possible annual output or volume of processing raw material (in the products list and assortment envisaged for the plan year) with the full utilization of production equipment and areas, considering the achievements of advanced technology and labor organization and the ensuring of high product quality. The magnitude of the capacity is periodically adjusted as a result of the introduction of new machinery or a change in the products list, products assortment, or work schedule (such as number of shifts or the load on equipment). The sum of the capacities of individual enterprises for the same type of output constitutes the production capacity of the branch for the given type of output.

In socialist countries the balance of production capacities is drawn up to coordinate the planned volume of output with the required production capacities; the balance allows the plan for output to be substantiated with indicators of the utilization of capacities and contributes to developing the most rational allocation of capital investments.