Technical, Industrial, and Financial Plan of an Enterprise

(tekhpromfinplan), a comprehensive, annual plan for an enterprise’s production, technical, and financial operations. A tekhpromfinplan also outlines the social development of the collective of a socialist industrial enterprise or association, specifies indexes for the long-range (five-year) plan, and provides for the most efficient fulfillment of state plan quotas.

A tekhpromfinplan is based on progressive technical and economic norms and established standards for the use of raw and other materials, fixed production capital, and labor and monetary resources. It seeks to provide for the maximum possible increase in the manufacture of products needed by the national economy. A tekhpromfinplan is concerned with the application of scientific and engineering advances, the mobilization of available reserves, the implementation of the greatest possible thrift, and the use of economic profit-and-loss accounting and modern management methods. It also provides for increased labor productivity, reduced consumption of production materials, and an increase in the output-capital ratio. A tekhpromfinplan adjusts for and takes into account any future increase in production efficiency that might occur in carrying out the long-range plans of the enterprise or association.

A tekhpromfinplan is compiled for one year with a quarterly breakdown and proceeds from a system of directive technological and economic indicators approved by higher agencies. In its comprehensiveness, a tekhpromfinplan presents all aspects of the operation of the enterprise or association by means of a system of interrelated plan indicators. It also incorporates a feasibility report pertaining to these indicators and the organizational-technical measures that will ensure fulfillment of planned quotas (seeORGANIZATIONAL-TECHNICAL MEASURES PLAN). Of particular significance are the plan’s technical and economic calculations designed to ensure full use of all enterprise resources with the greatest efficiency; such calculations are based on current capabilities and goals of production development.

A tekhpromfinplan has the following standard sections: a table summarizing basic indicators for production and economic operations; a plan for the manufacture and sale of products; a plan for increasing production efficiency, planning technical and economic norms and standards; a plan for capital construction; a plan for material and technical supply; a labor and wage plan; a plan for profits, production costs, and profitability; a plan for economic incentive funds; a financial plan; and a plan for the social development of the enterprise collective.

The production and sales plan indicators are the primary indexes used in drawing up a tekhpromfinplan, inasmuch as all the remaining technological and economic indicators usually depend on the volume of production and sales, the range of the products produced, and product quality. The plan for increasing production efficiency takes into account advances in technology, production engineering, the organization of production, and management; such advances permit savings in materials and working time and make the best possible use of production capacities. The production planning indicators are the basis of the enterprise’s economic profit-and-loss accounting and financial operations. The financial plan generalizes the production and economic activities of the enterprise or association and reflects the planned formation and use of financial resources.

The concluding section of a tekhpromfinplan—the plan for the social development of the enterprise’s collective—links the enterprise’s production and economic operations with certain measures of a social nature. Such measures may be partially or fully funded by the enterprise, and they include raising the professional and cultural level of the workers, eliminating labor-intensive processes in production, and improving the living and everyday conditions of the workers. All the sections of a tekhpromfinplan present the enterprise’s operations as a unified, complex system designed to optimize the functioning of the enterprise as a whole and of its individual parts.

Each section of a tekhpromfinplan has its own corresponding system of indicators, which include both endorsed and calculation indexes (seePLAN INDEXES).

The system of endorsed plan indexes, which are given as directives, is an important element in economic management. The system consists of goals set for the individual enterprise or association under the specific conditions of its operations. The goals are grouped into six categories: production, labor, finances, capital construction, application of new technology, and material and technical supply.

Production indexes include total volume of products sold (seeSALE OF PRODUCTS), the most important types of products expressed in nonmonetary terms, and the volume of superior-quality products. Labor indexes include the total wage fund and the quota for the growth of labor productivity. Finance indexes include total profit, profitability, prime cost of production, and payments to and appropriations from the budget. Indexes for capital construction include the total volume of centralized capital investments and the acceptance of fixed capital stock and production capacities. Indexes for the application of new technology include goals set for the development of production of new types of products, of new production processes, and of the integrated mechanization and automation of production. Indexes pertaining to material and technical supply include the volume of raw materials delivered to the enterprise and the volume of other materials and equipment allocated by higher agencies.

A tekhpromfinplan is drawn up in two stages. In the first stage, the enterprise works out a draft of the plan based on the initial version of the directive indicators and a comprehensive analysis of economic activity for the preceding period. The higher economic agency, together with the management of the enterprise, reviews the draft; after adjustments are made, endorsed indicators based on the state plan for the national economy are established for the enterprise. In the second stage, the final version of the tekhpromfinplan is compiled; it is approved by the enterprise’s management and is sent to the higher agencies, which supervise execution of the plan.

A movement has been developing at enterprises and production associations for the approval and successful fulfillment of counterplans. Such counterplans may be drawn up for individual indexes, for sections of the tekhpromfinplan, or for the entire tekhpromfinplan. This integration of socialist obligations with a plan contributes to an increase in production efficiency and to the coordination of increased production with the needs of society.

Operational, bookkeeping, and statistical data are used in the day-to-day monitoring and analysis of the fulfillment of a tekhpromfinplan; data are analyzed by the planning and other departments. The use of automatic control systems makes it possible to obtain an objective assessment of the execution of the tekhpromfinplan and to select optimum varations for the use of resources in order to achieve maximum production. This task is fulfilled primarily by a subsystem of technical and economic planning, one of the most important subsystems of the automatic control system of the enterprise or association (seeAUTOMATION OF MANAGEMENT PROCESSES).