CAPITAL USAGE

The measurement of capital usage has engaged the attention of economists for a long time, because estimates of capital usage are used in investment decision-making of business firms and in estimating production functions and productivity. The paper discusses various methods that have been used for the measurement of capital usage. A model is formulated and fitted to cross-sectional data from Nigerian manufacturing industries. The estimate of capital usage compares favorably with estimates derived from other studies.

Insight Source And Usage Modal Work Is tool analysis that very important of :

1. Financial manager 2. Candidate creditor 3. Bank in evaluating credit demand is joined.

With analysis source and application of fund will known how industry organize or use fund owned him.

Meaning funds: As working capital, good working capital brute or netted; by thus reflecting a summary source and usage of the work capital and change working capital elements as long as period touching. In prate, used fund as Working Capital netted.

Definition working capital

Close problem working capital the relationship with industry operation and floor peace (margin of safety) short-term creditor. Working capital that enough, make possible industry operates economies may be and will not suffer danger the existence of financial crisis. Working capital that is excess, show fund that is unproductive, this case will raise loss industry because opportunity profited neglected

Three concept definition modal work

1. Quantitative concept, show quantum fund needed to be enough requirement industry in finance the operation that routine in nature. 2. Qualitative concept, working capital is advantage assets launch on short-term debt, namely number asset launch from long-term debt though from enterprise owner. 3. The concept of functional, drop make heavier function from fund owned ingenerating income (gain) from industry tree effort. But partial fund used to generate this gain period, partly used to get / produce gain period that is future

Contoh konsep modal kerja kuantitatif dan kualitatif : 31/12/77 Aktiva lancar : Kas Piutang Dagang Persediaan barang dagangan Persekot biaya Jumlah Aktiva lancar : Rp 600.000,-1.300.000,-3.500.000,-100.000,-Rp 5.500.000,-============ Hutang lancar : Hutang Dagang Hutang Wesel Hutang Pajak Hutang Deviden Jumlah Hutang lancar : Rp 1.550.000,-1.700.000,-1.250.000,-1.500.000,-Rp 6.000.000,-============ Penjelasan : Konsep modal kerja kuantitatif : dari Tahun 1977 dan 1978 tidak terjadi perubahan Modal kerja untuk keduanya sama iaitu Rp 5.500.000,--. Konsep modal kerja kualitatif : Modal kerja th 1977 mengalami defisit Rp 500.000,-(Rp 5.500.000 Rp 6.000.000), sedangkan Modal kerja th 1978 sebesar Rp 2.750.000,-(Rp 5.500.000 Rp 2.750.000) Jadi keadaan Modal kerja th. 1978 lebih baik daripada th 1977. Rp 550.000,-1.200.000,-500.000,-500.000,-Rp 2.750.000,-============= Rp 600.000,-1.300.000,-3.500.000,-100.000,-Rp 5.500.000,-============ 31/12/78

Dengan demikian : Modal kerja adalah kelebihan Aktiva lancar terhadap Hutang lancar. Gross working capital : jumlah Aktiva lancar

Profiting from manufacturing capital work that is enough:

1. Protect industry crisis on working capital value fall from FLUENT Because asset. 2. Credit standing industry increasingly large, until cans face danger or financial difficulties that may occur 3. Allow a preparation in an amount sufficient to serve the needs of all being. 4. Make Possible to proffer terms of credit Lucrative to the clientele. 5. Make Possible to operate more efficiently Because has no trouble to get the items needed though merit.

Influenced by a number of working capital factors

1. The nature or type of enterprise, the service company or industry 2. The time needed to produce or obtain goods to be sold and the price of the goods. 3. Terms of purchase of materials or merchandise. 4. Terms of sale. Associated with its creditors, the greater the credit software profits. To minimize the risk of non-invoiced creditors then have to be "discount" for cash payment / cash. 5. Floor inventory turnover (Inventory TO). The higher the lower the inventory for her profits. The faster / higher Inventory TO, will minimize the risk of loss due to a decrease in price, changes in consumer tastes, as well as cost savings on storage and preservation of the preparation. For planning and supervision as required in an organized and efficient preparation.

Other factors

1. Seasonal factors 2. Volume sales 3. Receivable turn over 4. The average amount of money for each day of production.

WORKERS PRODUCTIVITY
Also known as "labor productivity" or "worker productivity"; value of goods and services produced in a period of time, divided by the hours of labor used to produce them. Productivity is reported quarterly by the Bureau of Labor Statistics (website: www.bls.gov). Investors pay attention to productivity because they know the Federal Reserve does: high productivity is the key to allowing the unemployment rate to drop to low levels without risking inflation. Productivity is a difficult term to be defined and measured, Especially in such a large range of firms. According to Macmillan dictionary, productivity is productivity. Whereas under the company manual for productivity assessment (compass), they define productivity is the ratio of output production to input use. Productivity is a measure of stage in the process. It shows the ratio of output to input.

An organization is considered productive if it achieves its goals through the conversion of input to output at a low cost. Therefore, the productivity reflects two key concepts of effectiveness and efficiency. Generally, it is defined as a measure of output of goods or services input relative to labor, materials and equipment. The more productive an organization, the better position to compete for the unit cost is lower.

The main aim should be to improve productivity so that everyone responsible for providing services optimum may while in an organization. In fact one has offered a job because organizations expect their ability to contribute engaged optimum possible to develop the organization and develop his own career. This is because of the not able to carry out the task properly and well, will affect and impair the performance of the desired output. As a result of products produced can be matched by others

YIELD AND THROUGHPUT

Also called First Pass Yield Throughput Yield (TPY) is the number of acceptable pieces at the end of the end of a process divided by the number of starting pieces excluding scrap and rework (meaning they are a part of the calculation). Rework IS a part of the TPY calculation. Use the process map as a guide for evaluating each individual process. TPY is used to only to measure a single process. Sometimes only raw material is available at the start so it may be necessary to convert the raw material to expected pieces that it should make, or use a unit of weight at the start and weight out at the end to calculate final yield. The unit of measure must be the same for the numerator and denominator throughout the calculation.

Calculation (assuming all rework only takes one time to correct):

Process 1 TPY: 40 of the 50 pieces that entered Process 1 went through Process 1 correctly the first time. Therefore Process 1 TPY = 40 / 50 = 80.0%

Process 2 TPY: 34 of the 46 pieces that entered into Process 2 went through Process 2 correctly the first time through. Therefore Process 2 TPY = 34 / 46 = 73.9%

Process 3 TPY: 37 of the 46 pieces that entered Process 3 went through Process 3 correctly the first time. Therefore Process 3 TPY = 37/46 = 80.4%

Process 2 has the lowest throughput yield but not necessarily the most costs. If a scrapped piece in Process 3 has significantly more cost then Process 3 it may still be in the teams best

interest to improve. The later the process is downstream the more cost are accumulated in the piece or part.

There is more direct material, direct labor, and/or manufacturing overhead in each process as the part proceeds through its value stream. Process 3 at its initiation has all the costs in Process 2 + the costs of Process 1. There is another method to calculate TPY for a single process. If the DPU or defects and units are known then:

Rework involves many of the 7-wastes and contains the hidden factory opportunity, it is relevant to understand when guiding the team's direction. Throughput Yield, TPY, and other yield metrics can serve as baseline scores ( MEASURE phase) and final scores for Six Sigma projects (CONTROL phase). The baseline score does not have to be a z-score and often this yield metrics are easier for team and other company employees to relate with and understand.

Other Process Yield Metrics FY - Final Yield RTY - Rolled Throughput Yield NY - Normalized Yield