Forms of organization of production are closely interconnected and to a certain extent determine each other. These include concentration, specialization, cooperation and combination. The development of these forms of organization is caused by progress in the scientific and technical sphere, it is the main condition for increasing labor productivity, reducing costs and more efficient use of production assets.
Concentration
Concentration of production implies the concentration of production in large enterprises, which have a number of advantages compared to medium and small ones. Due to the fact that the production base and work team are already available, prerequisites for the introduction of advanced technologies appear; management expenses are reduced; labor productivity increases; cost is reduced. But do not forget that large-scale production is also not without drawbacks. This is a big expense for the transportation of raw materials, materials and shipping finished products due to the increase in the radius of transportation. In addition, there is a need for impressive investments in the construction of large enterprises and the duration of their construction. With the growth of the enterprise, the management process is becoming more complicated.
The economic benefit of concentration of production is to reduce the cost of production per unit of output as capacity and size of production increase. But in the conditions of market relations, it begins to lose its advantages.
Specialization
Specialization of production is the process of production of the same type of product or the performance of individual operations. Those. it is a peculiar form of division of labor. Its purpose is to increase labor productivity. Specialization can be substantive, i.e. for the production of one finished product, detail, i.e. the release of individual parts of parts, blanks, and technological, implying the allocation of separate stages of the technological process into independent production.
The economic efficiency of specialization is based on the ability to widely use and more efficiently use high-performance equipment, to orient employees to perform one operation, which significantly increases labor productivity. Its development attaches great importance to cooperation.
Cooperation
Production co-operation is the production interconnection of specialized enterprises engaged in joint production, but at the same time maintaining their economic independence. In such cases, the supplier organizes its production process in such a way as to meet all the requirements of the customer. Cooperation can be intra-industry, inter-industry, intra-district and inter-district.
Economic efficiency is manifested in a reduction in cost while increasing labor productivity and lowering fixed costs per unit of output. Specialization creates the conditions for organizing a continuous production process, using the latest technology and ensuring the most complete operation of existing equipment.
