e--A showroom for the sale of semi-finished goods was opened at a factory. An almost ready to wear suit could be purchnsed there, and e master tailor would then sew the final stitches according to the purchasers mepssurements. On the basis of sales results in the showroom, we drew conclusions as to what our people like and what they do note .+..e-The right has been granted to us to compose plans on the basis of orders from the trade organisations and to determine for ourselves the volume of production, the volume of maak sales, the nec= essary materials and wage fund. The only report indices now are the volume of output sold on orders and the % of return, : ueSe, the profit. “Now it is not the economic council that imposes the assortment on us, but we who inform the econonmic council of what we are going to be making in our shops.
eeeewnen calculations were made, it was learned that our gross output would decrease by 70,000 rubles as compared with the preceeding » >lan. The profit rate for the 2nd half year, as previously confirmed, amounted to 9%, but the profit rate calculated according to the orders was 5.6% At the moment it was learnod Ms in the economic oucnil and other depts. that the profitability of production after the shift to new conditions would be somewhat lower than provided for in the plan, voices could be heard saying, "Look at the harm donc by planning from orders!" For example, representatives of the USSR Ministry of Finance arrived at the association. They sat around for about a week and studied indices from past and present. And although we offéred to discuss our temporary tribulations with them, these representatives refused tc participate in such a conversation.
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eeeethe index that was confirmed last year took absolutely no account of the probable volume of sales of the output as elaborated by the association. The 9% inscribed in the plan is paper profit, since much of the sutput gathered dust in the warehouses and storeshelves, But the 5.6% profit that was determined after the receipts of orders reflects the real state of affnirs,