Professional Documents
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Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu
Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu
T. Olejarz1, Cand. Sc. (Hist.), Assoc. Prof., 1 ‒ Rzeszow University of Technology, Rzeszow, Poland, e-mail:
orcid.org/0000-0001-7940-3248, olejarz@prz.edu.pl
V. Nitsenko2, Dr. Sc. (Econ.), Assoc. Prof., 2 ‒ Odessa I. I. Mechnikov National University, Odessa, Ukraine,
orcid.org/0000-0002-2185-0341, e-mail: vitaliinitsenko@gmail.com
O. Chukurna3, Cand. Sc. (Econ.), Assoc. Prof., 3 ‒ Odessa National Polytechnic University, Odessa, Ukraine,
orcid.org/0000-0001-9285-7068, e-mail: elenchukurna@ukr.net
M. Mykhailova4, Cand. Sc. (Econ.), Assoc. Prof., 4 ‒ Kharkiv State University of Food Technology and Trade,
Kharkiv, Ukraine, e-mail: mvmykhailova@gmail.com
Practical value. The results of this research can be used for further development both in scientific and practical
ways. Thus, they can be used by machine-building enterprises as an element of improving the competitiveness eco-
nomically based on the labour productivity index. A new approach is presented here which uses the reduction of time
needed for market circulation of products or logistics cycle, directly related to the time saving. As a result, enterprise
resources reach higher productivity which is occurring due to the increasing asset value and the performance metrics
concerning the return on company’s sales.
Keywords: machine building, labour productivity, competitiveness, return on assets, return on sold products
Introduction. Labour productivity is one of the indi- nomics of industry, the question of the impact of eco-
cators of the productivity. The growth of labour produc- nomic factors on labour productivity has been studied in-
tivity serves as the means for lowering production costs sufficiently. In scientific works devoted to the economic
and increasing the enterprise profits. In general, labour problems of the development of machine-building en-
productivity growth should form the reserves for the cre- terprises, scientific issues have not been sufficiently in-
ation of price advantages at industrial markets. vestigated. Their purpose should have been to substanti-
The overall competitiveness of the company is based on ate labour productivity as the basic indicator of increas-
the price and quality advantages of the enterprise in indus- ing the competitiveness of industrial enterprise. All the
try. However, labour productivity, as an economic indica- above aspects show the relevance of current paper and
tor, is a common source of their formation. Thus, the eco- the need to use its results in further scientific research.
nomic nature of the productivity is based upon quantitative The object of the article is to evaluate factors influenc-
and qualitative factors of its formation. The competitive- ing productivity of machine-building enterprises in the
ness of industrial and machine-building companies in the mining industry in order to improve their competitiveness.
B2B market is of specific interest. The development of Presentation of the main research and explanation of sci-
machine-building enterprises in the mining industry of entific results. Labour productivity is measured by sum-
Ukraine has quite capacious potential. According to ex- ming up consumer values created per unit time or the re-
perts, the explored reserves of iron ore only amounted to quired time spent per unit labour product. Labour produc-
32.5 billion tons in Ukraine, 70 % of which are lying in tivity, as an economic indicator, is measured by the amount
Kryvyi Rih iron ore basin. In addition, Ukraine has signifi- of product produced by one employee during certain pe-
cant reserves of coal, uranium and manganese ores that are riod of time or during unit of time.
actively mined, which requires special equipment and In the economic theory there are two approaches to
should contribute to the development of machine-building the interpretation of the concept of productivity. The first
enterprises of mining industry. Under these conditions, the considers the productivity of human labour, which is de-
study of factors influencing the productivity of the ma- termined by the cost of work used in the production of
chine-building enterprises in mining industry and their as- this product. The second approach offers to assess aggre-
sessment in relation to the recent World trends in this field gate productivity of social labour, measuring it by total
become particularly relevant. costs of living and materialized labour. Increased produc-
Analysis of the recent research and publications. Many tivity is connected to the decrease in living labour with the
Ukrainian scholars-economists have investigated the respective increase in materialized labour. In this way the
problems of industry economics, including those of the en- proportion of labour in product is reduced. This is due to
terprises of mechanical engineering. Famous Ukrainian more rapid decrease in living labour than the growth of
scientists detail the economic problems of the development materialized labour. The cumulative saving of working
of industrial enterprises and the influence of various factors time is achieved by reducing the resource costs of pro-
on them. For example, O. I. Amosha, L. L. Starychenko duction, which in turn characterizes efficiency.
and D. Yu. Cherewatsky [1] point out the problems and At the micro level, meaning at the enterprise level, la-
prospects for the development of the coal industry and de- bour productivity is measured as an output per employee
termine the profitability of the industry, but do not investi- or per unit of time. At this level, the indicator of efficiency
gate its impact on the development of machine-building considers only economy of the manpower. At the macro
enterprises in mining industry. In turn, I. P. Buleev, level, labour productivity is measured by the ratio of the
N. Yu. Bryukhovetska [2], S. Chuprov [3], M. Puziak [4], physical volume of national income to the number of em-
V. I. Lyashenko [5], R. O. Dychkovskyi, A. S. Avdiush- ployees in material production. Thus, labour productiv-
chenko, V. S. Falshtynskyi, P. B. Saik [6], G. G. Piwniak, ity is the indicator reflecting directly the savings of hu-
V. I. Bondarenko, V. I. Salli, I. I. Pavlenko, R. O. Dychkovs- man labour at the micro level and indirectly the savings
kiy [7], define the growing economic problems of indus- of social labour via the volume of national income at the
try and propose their solution via mobilization of domestic macro level.
resources of the country and attraction of capital and ad- In order to understand the economic essence of pro-
vanced technologies. They believe that the principles of ductivity it is necessary to consider the forms of its man-
institutional theory of society development should be used ifestation.
as the basis for the industry reform. Much attention is paid The first form of manifestation of labour productiv-
to the creation of proper institutes for the formation and ity is the reduction of labour costs per unit of consumer
implementation of Ukraine's economic policy. value and the economy of working time. The most impor-
Unsolved aspects of the problem. Despite the signifi- tant is the absolute reduction in labour costs necessary
cant contribution of scientists to the study of the eco- to meet a certain social need. This approach to the abso-
lute reduction of labour costs is forcing companies to atorsky Machine-Building Plant” has the highest rate of
use the ways to save labour and material resources. output per worker. Accordingly, each worker of the enter-
Another form of productivity display is the growth of prise creates the largest consumer value of the product,
the mass consumer values that are generated per unit of which is produced per unit of time. It can be concluded
time. Considering the indicator of labour productivity in that despite the overall decline of this indicator in industry,
this respect, it is necessary to take into account not only mining engineering machinery industry remains quite
the volumes of manufactured goods, but also the increase popular. This is explained by the fact that raw material ori-
in their quality. This approach is based on the fact that the entation of industry persists in Ukraine, despite the fact
creation of consumer value needs a specific work to be that starting since 2010 mining volumes have been con-
done that, in turn, reflects the public value of the product. stantly decreasing (Fig. 3). Labour productivity, as a rela-
Respectively, the value of goods depends on the set of con- tive indicator, may vary depending on the changes in pro-
sumer properties, which are the basis of product quality duction volumes or the number of employees at the enter-
and form its ability to meet the needs of consumers. prise. That is, an increase in labour productivity in ma-
Therefore, on practice the consideration of this ap- chine-building for the mining industry can occur due to a
proach to the productivity manifestation implies its wide- reduction in the number of workers in the industry while
spread use in assessing the product usefulness or value. maintaining the same level of production. This actually
In this respect, labour productivity forms qualitative happened in the main branches of machine building. In
indicators for assessing the competitiveness of industrial addition, it is known that in case of gap in the level of la-
enterprises. That is why labour productivity embodies bour productivity between the country and leading coun-
competitiveness of the enterprise. In this context, let us tries, such a country can have a growth rate of labour pro-
consider the development of Ukrainian mining industry, ductivity significantly higher than the same indicator of the
which is characterized by too low labour productivity in- leader country. Accordingly, a low level of labour produc-
dexes, which have a tendency to a sharp decline in the area tivity indicates incomplete use of production capacities and
of machine-building (Fig. 1). inefficient enterprise management or an overabundance of
Fig. 1 shows a decline in labour productivity in ma- employees. It can be possible effect of these factors together.
chine-building industry by almost 8 times only in 2011, Certainly, labour productivity reflects the change in
with a gradual decline during 2012‒2016. The develop- the ratio of the cost of living and materialized labour. If
ment of the machine-building industry, especially that of during the production materialized labour is used more
the mining industry, depends, respectively, on the develop- than living labour, the company has a chance to increase
ments of the mining industry itself. Labour productivity
of the latter has been also rapidly decreasing, starting since
2009. Thus, machine-building industry was lagging 2 years
to the change in the efficiency of the mining industry.
If we consider labour productivity of the machine-
building enterprises that produce equipment and mech-
anisms for the mining industry, then it becomes appar-
ent that this indicator is higher than the average one in
the mechanical engineering industry (Fig. 2).
The highest level of labour productivity is observed
at PJSC “Novokramatorsky machine-building plant”.
PJSC “Odesa Machine Building Plant” also has a high Fig. 2. Labour productivity at the machine-building en-
labour productivity index, which experienced a signifi- terprises of Ukraine, which produce equipment for the
cant drop in 2014, but later this crisis had been overcome. mining industry compared with the average labour
The producer of the mining equipment PJSC “Khol- productivity of machine-building industry:
modmash” also has a performance indicator higher than – PJSC “Odessa Machine-Building Plant”; –
the average one, although it is the lowest among the en- PJSC “Odessa Production Association “Holmodmash”;
terprises that were considered. Thus, PJSC “Novokram- – PJSC Novokramatorsk Machine Building Plant; –
labor productivity in machine-building industry
Table 2
Key indicators used for the calculation of labour productivity for machine-building
enterprises of mining industry
PJSC
PJSC “Odesa Machine PJSC “Novokramatorsky
Building Plant” “Kholodmash” Machine-Building
Plant”
employees (people).
employees (people).
Labour productivity
Labour productivity
Labour productivity
Year
processes increased from 1.403 in 2000 to 2.043 in 2011, level of implementation of new technological processes in
and despite the economic stagnation in 2014, the number the economy of Ukraine is represented. It is also cyclical.
of innovative enterprises was 1.743, and already in 2015 Despite the increase in the level of implementation
it decreased to 1.217. However, in 2016 there was a rapid of innovations, the proportion of innovative products that
increase in this indicator to 3.489 enterprises. In Fig. 5 the are produced is decreasing. In Fig. 6, the structure of
innovation activity for the period from 2002 to 2016 is
represented, according to the level of implementation of
innovations and innovative products.
The results of the analysis of patenting and the use of 2. Transformation of the factors of the macroeconom-
industrial property objects in Ukraine for 2008‒2016 also ic environment of the enterprise, especially in the field
indicate, that during this period the number of applica- of ecology. It is necessary to respect European experience
tions for the protection of inventions, utility models, in- in constructing environmental law in mining and machine-
dustrial designs, trademarks, technologies of integrated building enterprises in mining industry. It is necessary to
circuits and plant varieties; in general, the activity on cre- take into account modern requirements regarding the en-
ation, use and commercial realization of scientific and vironmental component of industry functioning and take it
technical products, became more active. into account while calculating labour productivity in the
The third main factor influencing the rate of labour industry.
productivity is the growth of the skills of workers. How- 3. Structural transformations in the field of produc-
ever, during the period of Ukraine's independence, a de- tion, aimed at modernizing fixed assets, changing the
cline in the prestige of engineering specialties was ob- share of production technology of certain types of prod-
served, a reduction in real wages in industry and a drop in ucts, labour complexity of the production program, in-
performance indicators of enterprises were in place. creasing the weight of new products.
One of the main indicators of the efficiency of indus- 4. Creation and development of the necessary social
trial enterprises is the ratio of growth rates of productiv- infrastructure, aimed at solving financial problems, time-
ity and wages. In economic theory it is considered axiom ly payment of wages, formation of a social package for
that the growth rate of labour productivity should out- employees.
strip the growth of wages. Despite this, in Ukrainian prac- 5. Ensuring the competitiveness of the enterprise on
tice this condition is not always followed, which is con- the basis of determining the marginal productivity of la-
firmed by following estimations (Fig. 7). bour. This mechanism can be explained as follows. For
Based upon the information presented in Fig. 7, in the example, an enterprise, while determining the required
Ukrainian industry there are no real reserves at all for the number of workers, should determine the price of labour
increase in the average monthly wage. During 2004‒2016, demand, that is, the level of wages. According to the law
the labour productivity shows a downward trend, with the of killing marginal productivity, the price of a product is
exception for several years. Taking into account that this formed depending on the value of the last marginal unit
data is rather relative than absolute, these few years do not of the factor of production, which was used in its pro-
affect the general trend in the industry. duction. This approach proves the formation wages, which
Among the ways of increasing labour productivity in will be equal to the price of the marginal product. Thus,
machine building of mining industry there should be the the enterprise will strive to balance the level of the mar-
following: ginal product and the wages of workers. This will encour-
1. Improvement of the organization of production and age the involvement of such a number of workers, which
labour due to the formation of labour force with newest will support this balance. The application of this theory
qualification; increase in productivity standards; reduc- in practice allows establishing reasonable prices for fac-
tion in the number of employees; prevention of person- tors of production. If an enterprise seeks to minimize costs,
nel turnover; simplification of the management structure; the cost of factors of production will be proportional to
mechanization of accounting and computing work; change the level of their marginal productivity. It is one of the goals
of working period; increase in the level of production spe- of pricing policy. As a result, the company will strive to
cialization. equalize the value of the marginal product and wages. This
mechanism justifies the price as a factor of influence on
the competitiveness of the company and its products on the
market. Thus, the company's management seeks to opti-
mize all the resources needed to produce goods under the
condition of reaching the level of marginal productivity.
Proceeding from the above-mentioned provisions, it
is possible to offer the competitiveness strategies to en-
terprises of machine building of mining industry.
For market outsiders the following areas can be iden-
tified as those increasing the company's competitiveness:
reviewing the underlying competitive strategies that are
used; maximizing profits by setting high prices and in-
creasing marketing costs; reducing production costs; re-
ducing illiquid assets; combining all these methods.
A company with a weak competitive position can im-
prove its competitiveness on the basis of work with cheap
products or by using differentiation strategies via main-
Fig. 7. The ratio of growth rates of labour productivity taining sales volumes, market share, profitability, and spe-
and wages in Ukrainian industry [11]: cific position at existing levels. It is also possible to reinvest
– the growth rate of labor productivity in machine build- into the business in order to obtain short-term profits.
ing enterprises; – the growth rate of average monthly wages For companies with a high level of competitiveness
in industry and a strong competitive position one could recommend-
ed the strategy of concentration on expanding its own tion of the coal mine extraction area economic efficien-
capacities. For such enterprises it is also possible to adapt cy. Naukovyi Visnyk Natsionalnoho Hirnychoho Univer-
to a specific group of consumers or to create an innova- sytetu, 4, pp. 107–114.
tive product. We recommend using a strategy of tracking 7. Piwniak, G. G., Bondarenko, V. I., Salli, V. I., Pavlen-
the leader. In any case, whatever position the company ko, I. I. and Dychkovskiy, R. O., 2007. Limits to economic
occupied in any market environment, productivity growth viability of extraction of thin coal seams in Ukraine. Tech-
is essential for its survival and competitiveness. This is high- nical, Technological and Economic Aspects of Thin-Seams
er productivity that has always provided and provides ben- Coal Mining International Mining Forum 2007, рр. 129‒132.
efits and, finally, the victory not only for individual enter- DOI: 10.1201/noe0415436700.ch16.
prises, their associations, industries, but also for countries. 8. Sukharev, O. S. and Strizhakova, E. N., 2017. Labour
Conclusions and recommendations for further research. productivity in industry: the system task of management.
As a result of the research, the factors influencing the pro- Ekonomika I predprinimatelstvo, 8, рр. 389‒402.
ductivity of machine-building enterprises in mining in- 9. Botrić, V., Božić, Lj. and Broz, T., 2017. Explaining
dustry were substantiated and studied. The main factors firm-level total factor productivity in post-transition: man-
that are the sources of productivity growth at the ma- ufacturing vs. services sector. Journal of International
chine-building enterprises in mining industry include Studies, 10(3), рр. 77‒90.
the following: the degree of introduction of innovations 10. Micallef, B., 2016. Determinants of Labour Produc-
and the application of new technologies at the enterpris- tivity in Malta: Evidence from a Firm-Level Survey, Eco-
es; introduction of methods for improving the organiza- nomics and Sociology, 9(4), pp. 27‒40.
tion of work; an increase in the level of qualification of 11. State Statistics Service of Ukraine, 2017 [online]. Avail-
employees. In the course of the assessment two forms of able at: <http://www.ukrstat.gov.ua/> [Accessed 14 Au-
labour productivity were analysed on the example of the gust 2017].
machine-building enterprises in the mining industry as
a source of cost reduction of unit labour costs and savings Мета. Дослідження факторів впливу на продук-
of working time. The ways of increase in labour produc- тивність праці машинобудівних підприємств для гір-
tivity in mechanical engineering for the mining industry ничодобувної промисловості та їх оцінка з метою під-
were determined. The high degree of impact of return on вищення конкурентоспроможності. Обґрунтування
assets and the return on sales on labour productivity in напрямів посилення конкурентоспроможності під-
the machine-building enterprises in mining industry was приємств машинобудування для гірничодобувної
showed through correlation analysis. It contributes to ec- промисловості шляхом підвищення продуктивнос-
onomically reasonable rate of labour productivity in terms ті праці. Оцінити вплив на показник продуктивності
of formation, both quantitative and qualitative indicators праці машинобудівних підприємств для гірничодо-
to measure the competitiveness of industrial products and бувної галузі показників рентабельності активів і рен-
industrial enterprises overall. табельності реалізованої продукції за допомогою ко-
The approach to ensure the competitiveness of the реляційного аналізу. Обґрунтувати показник продук-
enterprise based on the determination of marginal pro- тивності праці як базовий при формуванні кількіс-
ductivity is proposed and grounded. It is based on the de- них і якісних показників оцінки конкурентоспро-
termination of the growth of production volumes, the basis можності продукції підприємств.
of which is the use of an additional unit of labour, other Методика. У процесі дослідження використані ме-
things being equal. This approach encourages enterpris- тоди аналізу й синтезу, дедукції та індукції (викорис-
es to optimize resources based on the use of additional товувалися під час визначення факторів, що вплива-
labour or the suppression of inefficient labour, thereby ють на продуктивність праці підприємства), систе-
achieving a level of marginal productivity. матизації та узагальнення (для уточнення співвідно-
шення витрат живої й матеріалізованої праці, сис-
References. тематизації ключових шляхів підвищення продук-
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ятия. Предложен и обоснован подход к обеспечению Обоснован подход, который использует в базисе по-
конкурентоспособности предприятия на основе опре- казателя производительности труда сокращение вре-
деления предельной производительности труда, ос- мени оборота продукции или логистического цик-
нованной на определении роста объемов продукции ла, что непосредственно связано с экономией вре-
с использованием дополнительной единицы труда мени. В результате предприятие при тех же ресурсах
при других фиксированных условиях. Этот подход живого и овеществленного труда получает высокие
стимулирует предприятия оптимизировать ресурсы показатели производительности труда, что влияет на
на базе применения дополнительной работы или вы- увеличение стоимости активов и показатели эффек-
теснения неэффективной работы и достижения уров- тивности работы предприятия, в первую очередь, на
ня предельной производительности. рентабельность реализованной продукции.
Практическая значимость. Результаты исследова- Ключевые слова: машиностроение, производитель-
ния могут быть использованы для дальнейших на- ность труда, конкурентоспособность, рентабельность
учных разработок в данном направлении, а также в активов, рентабельность реализованной продукции
практической деятельности машиностроительных
предприятий как элемент повышения конкуренто-
способности предприятия, основанный на экономи- Рекомендовано до публікації докт. екон. наук
ческом базисе показателя производительности труда. І.В. Свиноусом. Дата надходження рукопису 09.12.17.
S. M. Turpak1, Dr. Sc. (Tech.), Prof., 1 – Zaporizhzhya National Technical University, Zaporizhia,
orcid.org/0000-0003-3200-8448, Ukraine, e-mail: turpak@i.ua
I. O. Taran2, Dr. Sc. (Tech.), Prof., 2 – National Mining University, Dnipro, Ukraine
orcid.org/0000-0002-3679-2519, 3 – The State University of Transport Economy and Technol-
ogies, Kyiv, Ukraine
O. V. Fomin3, Dr. Sc. (Tech.), Assoc. Prof.,
orcid.org/0000-0003-2387-9946,
O. O. Tretiak2, Cand. Sc. (Tech.), Assoc. Prof.,
orcid.org/0000-0002-6991-0235