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ORGANIZATIONAL AND ECONOMIC METHODS OF ENSURING DIVERSIFICATION OF DEFENSE ENTERPRISES

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PDF: Author(s): Gudkova O. E.,
Number of journal: 3(52) Date: August 2020
Annotation:

The planned reduction in funding for the defense-industrial complex (DIC) has set the task for enterprises producing weapons, military and special equipment (WMSE) to find ways to compensate for lost revenues by deploying the production of civilian products (CP). Meanwhile, while this does not cause special difficulties in the aircraft and conventional weapons industries, the situation is more acute in other industries. According to the analysis, the main problem is the conservatism of the production systems of such enterprises, a long period of work-oriented with a single customer and not adapted to subsistence in a competitive environment. The production subsystem of the enterprise means a suitably organized interconnected set of material and technical means, technological and business processes, which, in cooperation with the social subsystem and under the control of the managing subsystem, ensures the creation and delivery of value to the consumer. Despite the fact that there are many modern concepts of production organization, their introduction in defense enterprises is slow and randomly. Among the reasons for this is the continued priority of the practice of a conservative “product” approach to consumer relations as opposed to a progressive “value” orientation; Rejection of project management methods and non-standard changes in the job hierarchy; Lack of interest in automation of production and business processes, distribution of CALS-technologies; Non-compliance with the “pull-out” principle in the production of final and technological products, resulting in surplus stocks. This often loses the positive content that modern production concepts can bring to market-oriented production subsystems. The article shows how, based on the use of business modelling methodology, it is possible to organize the development and implementation of projects for the development by defense enterprises of new principles of production organization to diversify their activities.

Keywords:

defense-industrial complex, diversification, business model, production subsystem, management subsystem, social subsystem, production organization, modern concepts, insolvency, civilian products, weapons, competition.

For citation:

Gudkova O. E. Organizational and economic methods of ensuring diversification of defense enterprises. Business. Education. Law, 2020, no. 3, pp. 157–163. DOI: 10.25683/VOLBI.2020.52.307.