Assessment of Company’s Unused Production Capacity in the Context of Sustainability: The Case of Textile Industry in Lithuania | IEEE Conference Publication | IEEE Xplore

Assessment of Company’s Unused Production Capacity in the Context of Sustainability: The Case of Textile Industry in Lithuania


Abstract:

Inefficiently managed resources in enterprises not only distort the financial results of the enterprise, statistical information of the state, but negatively affect the e...Show More

Abstract:

Inefficiently managed resources in enterprises not only distort the financial results of the enterprise, statistical information of the state, but negatively affect the environment and contradict the concept of sustainable development. Research purpose was to investigate how are assessed the unused production capacity which affects the overall statistical indicators of the state in large Lithuanian textile enterprises. The determination of the capacity utilisation level in enterprises is quite superficial, which is influenced by the fact that there are no recommendations on how exactly the unused production capacity of enterprises can be identified. The performed research revealed that large textile Lithuanian companies do not have the methodology to assess the level of unused production capacity. Only 60 percent of surveyed enterprises use KPIs. The authors suggested to improve the form of the questionnaire of the Statistics Department in order to obtain more valuable information for the State.
Date of Conference: 24-27 August 2021
Date Added to IEEE Xplore: 29 October 2021
ISBN Information:
Conference Location: Kaunas, Lithuania

I. Introduction

The inefficient use of the available resources shows that business subjects are not exploiting their full potential. The essential goal of each business unit is the maximization of its profit, hence, the efficient use of the available resources is a very important factor contributing to increased profits and maximized operational efficiency. The available resources of enterprises indicate their ability to carry out activities and maintain their scale, and their effective management determines the maximum profit margin and top-level performance of the company. Inefficiently managed resources in enterprises not only distort the financial results of the enterprise and the statistical information of the state, but they also negatively affect the environment and contradict the concept of sustainable development.

References

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