One approach to improving production capacities in the function of reducing the cost

Abstract

The paper presents an approach to determining the degree of capacity utilization, using a modified method of the present observations. Development of new methodologies for identifying value-time degree of capacity utilization creates the opportunities for adequate selection of technological concepts and provides a rational approach to the choice of exploitation of machines, especially those which are more expensive and represent a capital-intensive part of the technological equipment in production. In this way, by improving processes and organizational performance, opportunities for lowering costs reduced to the unit product, i.e. for reducing product costs, can be created.