1. IuliiaGoloborodko

2. CHAPTER 1. THEORETICAL BASIS OF COST REDUCTION ENTERPRISE CHAPTER 2. BUSINESS ANALYSIS OF DNIPROPETROVSK ASPHALT AND CONCRETE PLANT CHAPTER 3. JUSTIFICATION AND DEVELOPMENT ACTIVITIES FOR CUTTING COSTS AT THE ENTERPRISE Contents

3. The purpose of master's thesis is to develop and substantiate measures for spending cuts at the company. The object of research master's thesis is "Dnepropetrovsk asphalt and concrete plant“. The subject of study are the measures for spending cuts at the company.

4. The keys to successful implementation of the program of the measures of costs reduction are: quality planning and execution of the project of the costs reduction; independent examination of the activities involving external experts and consultants; supporting personnel and high interest in the management of the program; attraction of the reliable sources of funding for the implementation of measures consumables. Chapter 1

5. Analysis of the volume of production in physical terms Chapter 2 Analysis of the volume of production in physical terms Products 20132014 Deviation (kg) Deviation (%) Asphalt (t) 72414841101169616,1 Analysis of production in value terms Release year 20132014 Deviation (тис.грн) Deviation (%) Asphalt (тис.грн) 46480572581077823,2

6. Analysis of the composition and structure of staff 20132014 Deviation (чол) Deviation (%) Category of staff working 12012110,8 leaders 7700 specialists 7700 non- industrial staff 2200 All staff 13613710,7

7. Chapter 3 To implement the manufacture of asphalt concrete mixture with the addition of rubber shavings, you need to purchase a special Elevator cost 87750 UAH, were also conducted research that the cost of repair of the pavement will be reduced by 15% starting from the second year. Planned repair costs in 2014 are - 3089,4 thousand UAH. Therefore you can calculate the cash flow for the years; 2014 = 3089,4 – 3089,4 thousand UAH 2015 – 3089,4*0.15 = 436,41 thousand UAH 2016 = 436,41 thousand UAH 2017 = 436, 42 thousand UAH So we will calculate the NPV (net present value) = - 87, 75 + ( 0/1,2 + (436,41- 377,2)/1,44 + (436,41-377,2)/1,72 + (436,42-377,2)/2,064) = -87,75 + 104,11 = 16,36 Profitability index = 104,11/87,75 = 1,2 The payback period= 87,75/ (104,11/4) = 3,4 years So positive NPV is an indicator of profitability of this event, and the costs will be repaid over 3.4 years, which also shows a positive trend.

8. SettingsCREDITLEASING The term of consideration of documents From 1 day to several weeks With funding of up to 200 thousand euros – 2 business days, above 200 thousand euros within 1 working week. Advance paymentOn average 20% From 15% The term of financingUp to 5 years 1 – 5 years Additional mortgage of property yesno The number of documents required for evaluation 15-208-10 Required licenses for signature The loan agreement, mortgage, purchase, insurance and so on The lease agreement Payments in the preparation of the financing agreement 10-15 (down payment, insurance payment, Bank fee for credit, the Commission for currency conversion, notary services, 3% pension Fund, road tax, registration in traffic police, etc.) 2 (advance payment, the administrative Commission)

9. "Dnipropetrovsk asphalt plant" we need to buy: 1.Mobile concrete plant Mekamix 100 = 1700000 USD. 2.The trailer concrete pump Zoomlion = 300,000 USD. 3. Truck MAN = 558000 USD. All equipment in the amount of: 2558000 USD. So, we suggest to apply for renewal of fixed assets in operation, international financial leasing as one of the most progressive means to improve the system security of the enterprises of machinery and equipment.

10. LLC "Westling"The company "LD-LEASING Advance payment – 20% Annual interest rate 16%Annual interest rate 11% Conditions of leasing construction equipment – 3 years The cost of leasing object – 2558 thousand UAH. Quarterly payment Repayment of principal -1,02 mn. UAHRepayment of principal -1,3 mn. UAH The amount of interest repayment - 776 thousand UAH The amount of interest repayment - 488 thousand UAH Total lease payment - 1800 thousand UAH