7th BALKANMINE CONGRESS – Proceedings, Prijedor 2017

DOI: 10.7251/BMC170701177M

PARCIAL MODEL OF PRODUCTION REQUIREMENTS RELATED

TO A DIFFERENT FINAL CONSUMPTION COMPONENT

Svetomir MAKSIMOVIĆ1, Svetlana POLAVDER1

1
Mining institutes Belgrade, Belgrade,Serbia, svetomir.maksimovic@ribeograd.ac.rs

ABSTRACT

Public Enterprise Electric Power Industry of Serbia is in the phase of restructuring, financial
consolidation. The documents of foreign and domestic consultants insist on a significant increase in
productivity and efficiency. The analysis should include economic, social and environmental aspects,
as well as national policy and legislation. Such demands are also based on modern proven control
mechanisms, where the effects of all of the components of such a large and complex system must be
perceived at all times. So far, a number of symposiums have been presented in several papers in which
the significance of the application of cross-sectoral models in large and small production systems has
been emphasized. In this paper, from the numerous models, only the application of the partial model
of production increase in the EPS production system was analyzed.

Key words: cross-sectional models, I-O tables, energy, mines.

1. INTRODUCTION

Inter-sectoral models have long taken a significant place in analyzing the macroeconomics of
many countries in the world. The long-term development of these models has significantly
expanded the scope of its application. The results of the research show that from the cross-
sectoral analysis, numerous and significant knowledge about: direct and return production
relations of the entities in the system, two-way interdependencies of the system and
environment, ie, On the nature and intensity of the dependence of the system on
environmental influences, on the manner of organization and distribution of production tasks,
by the entities, their value structure, the volume and structure of consumption, the degree of
influence of its changes on the production of the system, the cost structure, the price of
production achieved etc.

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2. CALCULATE THE INPUT-OUTPUT TABLE

Input-output tables are known as transaction tables. The interdependence that exists between
the isolated sectors stems from the fact that every industry branch uses the products of other
industries. The resulting products will be used by other industries. Input-output tables can in
practice be expressed in monetary values (stable currency) or in any physical unit. The most
difficult part of the transaction is the creation of a transaction table and it is the basis for all
further calculations. On the basis of the transaction table, the tables of technica coefficients
are produced, which normally prescribe the production norms according to the following
formula:
aij = xij/Xj

Where they are: the sector and the sector j; Xij - total value of the production of the i-th sector,
used to achieve the entire production of the j sector; Xj - value of total production of all
production sectors.

Sectors: x1,x2, ... ,xn Σ O DF

ΔZ In Iz Σ
p
Sektors: x1,x2, ... ,xn

Final

B+C
Reproduction
consumption Consumption
(B) (C)

ΣΣ Σ Σ

d1,d2,…, dn Σ xi - Total value of the AM - Amortization

production of the i-th NE - Net earnings
AM Components of
NE
sector SP - Surplus product
a social ΔZ+ - The remaining stocks
SP product(A) SoP - Social product
of the i-th sector SGP - Social gross
SoP AM+PL+VP IN - Investments product
SGP IX - Export
ΔZ- PC - Personal consumption ΔZ- - Reduction in
IX Gc - General consumption inventory
DF DBP + UV Σ DF - Distributed funds IM - Import

Figure 1, Simplified schematic representation of the symmetric input-output table

Technical coefficients of all production sectors form a matrix of technical coefficients

A = [aij](n,n). Sectors producers are presented in rows, and the sectors are processors by
columns of the matrix (table).The next matrix derived from technical coefficients is a matrix
containing inverse coefficients.
The matrix [I - A] -1 represents an inverse matrix where: I -is a unit matrix; A - matrix of
technical coefficients.

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Table 1. Basic input-output table of production sectors RB "Kolubara" and "TENT" (x103 RSD)
Reproduction consumption
Total
PK I PK II PK III PK IV KP TE I TE II TE III TE IV
PK I 0 0 0 0 0 0,01054 0,17637 0 0
PK II 0 0 0 0 0 0,03439 0,38059 0 0
PK III 0 0 0 0 0 0,39622 0,01550 0,37216 0,44867
PK IV 0 0 0 0 0 0 0 0 0
KP 0,06349 0,06335 0,05307 0,06501 0,00115 0 0 0,01135 0
TE I 0,01076 0,01580 0 0 0 0,05067 0 0 0
TE II 0,01056 0,01540 0 0 0 0 0,02995 0 0
TEIII 0 0 0,05753 0,05211 0,03405 0 0 0,02798 0
TE IV 0 0 0 0 0 0 0 0 0,02500
Total: 0,08481 0,09455 0,11060 0,11712 0,03520 0,49182 0,60241 0,41149 0,47367
Total material
0,35499 0,23622 0,14603 0,19151 0,17171 0,69780 0,63380 0,75522 0,56581 3,75309
cost (TMC)
Amortization
0,08028 0,26913 0,12142 0,02064 0,10310 0,19454 0,12245 0,11957 0,17342 1,20455
(AM)
Net earnings
0,13765 0,05723 0,21808 0,31017 0,29688 0,02454 0,01336 0,05233 0,03902 1,14926
(NE)
Surplus product
0,42708 0,43742 0,51447 0,47767 0,42831 0,08312 0,23039 0,07288 0,22175 2,89309
(SP)
Social
0,64501 0,76378 0,85397 0,80849 0,82829 0,30220 0,36620 0,24478 0,43419 5,24691
product(SoP)
Distributed
1 1 1 1 1 1 1 1 1 9
funds(DF)

On the basis of the matrix of direct technical coefficients and unit matrix, an inverse matrix of
technical coefficients was set:

Table 2. Matrix of direct technical coefficients

1,002 0,003 0,000 0,000 0,000 0,011 0,183 0,000 0,000

0,005 1,007 0,000 0,000 0,000 0,037 0,396 0,000 0,000
0,006 0,008 1,023 0,021 0,013 0,427 0,020 0,392 0,471
0,000 0,000 0,000 1,000 0,000 0,000 0,000 0,000 0,000
- 1
[I  A]  0,064 0,064 0,055 0,067 1,002 0,026 0,038 0,033 0,025
0,011 0,017 0,000 0,000 0,000 1,054 0,009 0,000 0,000
0,011 0,016 0,000 0,000 0,000 0,001 1,039 0,000 0,000
0,003 0,003 0,062 0,057 0,036 0,026 0,003 1,053 0,029
0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 1,026
Ukupno : 1,102 1,118 1,140 1,145 1,051 1,582 1,688 1,478 1,551

3. MODELI PRODUCTION

Production models provide for the determination of a change in production value under the
influence of a change in one or all components of final consumption. The basic form of the
total production model is the basis from which the model of total production increase can be
identified. The determined value of the total production increase is also transferred to imports.
Hence the relation of the conditional increase of imports should be added to the production
model. Instead of the total production model, it is also possible to form a partial production
model, bearing in mind that final consumption can be explained on several co-ordinates.
There is also a partial model of production growth resulting from the explanation of the
increase in final consumption and one such model has been elaborated in this paper.

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4. PARCIAL MODELS OF PRODUCTION INCREASE

In these models, instead of total, the components of final consumption appear, which will lead
to changes in production. For the illustration, the component of the final in-use is selected. By
decision of the production and technical college of PE "Elektroprivreda Srbije", investment
funds are planned for raising the level of technical and organizational efficiency on the
surface mines of RB Kolubara and thermal power plants "Nikola Tesla". During the planned
year they were realized in the following values (Table 3).
Table 3. Comparative overview of planned and realized investments and planned depreciation in the sectors
RB "Kolubara" and "TENT"(x106RSD)
Planned Planned Realized Difference Difference
Sector name
amortization investments Investments (2-3) (3-4)
1 2 3 4 5 6
PK I 268 80 20 + 188 + 60
PK II 2.000 2.950 500 - 950 + 2.450
PK III 1.200 4.660 450 - 3.460 + 4.210
PK IV 17 275 180 - 258 + 95
Rehabilitated
equipment in - 600 220 - 600 + 380
mines
Total mines 3.485 7.965 1.150 - 4.480 + 6.815
KP 358 365 170 - 7 + 195
TE I 3.616 3.671 500 - 55 + 3.171
TE II 2.126 1.695 220 + 431 + 1.475
TE III 550 128 9 + 422 + 119
TE IV 208 0 0 + 208 0
Total thermal
6.500 5.494 729 + 1.006 + 4.765
power plants
TOTAL 10.343 14.424 2.269 - 6.093 + 12.155

The table shows the discrepancy between planned depreciation and planned investments, as
well as between planned and realized investments. These differences are more evident in RB
Kolubara than TENT.
By looking at the table, the following questions can be answered:
 Why are investments planned in a larger amount than is provided by the aggregate
depreciation and accumulation value? This is the case with most production units.
 Is the planning of investments submerged, and if not, how will their non-realization be
reflected in the future functioning of this strategically important thermal power system?
 Are investment activities carried out on time, bearing in mind the procedure in the
implementation of the Law on Public Procurement.
What is particularly important for managers is to look at returnees that may result from
untimely investment, especially when considering the coal industry and the thermal power
sector as a whole in the process of restructuring, and that the banks of the current main
investors have withdrawn from further investing everything It's on our coals.
From the explained increase in final consumption, the partial model of production increase for
investments will be analyzed.

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[I - A] -1ΔJ = ΔXJ(1)

Where are they:I - unit matrices; A - matrix of technical coefficients; ΔJ - additional increase
in investment spending; ΔXJ - conditioned production value.
The following values of the realized increase in investment spending are given by sectors:
Table 4. Production growth by investing additional investments (×10 3 RSD)

Reprodukciona potrošnja Production

Investments
growth
PK I PK II PK III PK IV KP TE I TE II TE III TE IV Total ΔJ
ΔXj

PK I 0 0 0 0 0 7.889 41.611 0 0 49.500 20.000 69.500

PK II 0 0 0 0 0 25.741 90.879 0 0 116.620 500.000 616.620

PK III 0 0 0 0 0 296.001 3.681 27.606 0 327.288 450.000 777.288

PK IV 0 0 0 0 0 0 0 0 0 0 180.000 180.000

KP 4.413 39.063 40.960 11.702 307 0 0 842 0 97.287 170.000 267.287

TE I 748 9.743 0 0 0 38.009 0 0 0 48.500 700.000 748.500

TE II 734 9.653 0 0 0 0 7.113 0 0 17.500 220.000 237.500

TE III 0 0 44.621 9.380 9.101 0 0 2.075 0 65.177 9.000 74.177

TE IV 0 0 0 0 0 0 0 0 0 0 0 0

Total 5.895 58.459 85.581 21.082 9.408 367.640 143.284 30.523 0 721.872 2.249.000 2.970.872

Total material
24.672 145.658 113.508 34.473 45.896 522.304 150.527 56.020 0 1.093.058
cost (TMC)

AM 5.579 165.951 94.378 3.715 27.557 145.613 29.082 8.869 0 480.744

NE 9.567 35.289 169.511 55.831 79.352 18.368 3.173 3.882 0 374.974

proiz.
Druš.

SP 29.682 269.722 399.891 85.981 114.482 62.215 54.718 5.406 0 1.022.097

SoP 44.828 470.962 663.780 145.527 221.391 226.196 86.973 18.157 0 1.877.814

Production 69.500 616.620 777.288 180.000 267.287 748.500 237.500 74.177 0 2.970.872

Import - - - - - -- - - - --

TOTAL: 69.500 616.620 777.288 180.000 267.287 748.500 237.500 74.177 0 2.970.872

ΔJPK I 20.000
ΔJPK II 500.000
ΔJPK III 450.000
ΔJPK IV 180.000
ΔJ = ΔJKP = 170.000
ΔJTE I 700.000
ΔJTE II 220.000
ΔJTE III 9.000
ΔJTE IV 0

From Table 4, it can be noticed that additional investment investments were higher in the PK
II segments of coal and TE and electricity production. Although PK III had smaller additional
investment from PK II, it realized a higher production increase. The largest investment was
made by the TE I, and it achieved the highest increase in production.

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5. CONCLUSION

The very very modest application of cross-sectoral models in large and small business
systems shows adaptability, efficiency in resolving the level of problem differences. The great
advantage of these model approaches is in the examination and diagnosis of the state of cross-
sectoral relationships, dependencies, disturbances, and the like. In complex mining and
thermal power systems.

REFERENCES

[1] Stanojević R., (1998), Interactive Models, Economic Institute Belgrade, Belgrade.
[2] Popović S., Nešić V., Petrović J., (1977), Application of input-output analysis in a complex organization of
associated labor on the example of REIK "Kolubara", SYM-OP-IS 77, Herceg Novi, 439-460.
[3] Maksimović S. (2009), Application of cross-sectoral analysis in the companies of the thermal power sector
of ElektroprivredaSrbije, Elektroprivreda br.1, Belgrade, 85-92.
[4] Maksimovic S., Milanovic Z., Miljanovic I., Bosevski S., Hudej M., Benovic T., (2009), Application of
Input-Output Analysis in Corporate Enerprises of EPIS Thermal Power Sector, 3rd Balkan Mining
Congress , Izmir-Turkey.

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