Journal of Applied Economic Research
ISSN 2712-7435
Scientific Methodological Approach to Optimization of Machine-Building Enterprise’s Order Portfolio Execution Plan in the Conditions of Deficiency of Circulating Assets
Tretyakov V.D.
Abstract
To date, there is a sufficient number of scientific approaches to building and optimizing order execution plans (both in terms of production organization and supply planning), but they do not take into account the situation of the shortage of working capital to finance orders in accordance with the current register for payment and, therefore, do not ensure the relevance of plans. It is necessary to develop a scientific approach that takes into account fluctuations in working cash when planning the execution of the order portfolio. The article proposes a scientific approach to increasing the capital turnover of a large machine-building enterprise in a situation of cash deficit, based on building a plan for the implementation of the portfolio of orders on the basis of the principle of prioritization. The cost of each order and the urgency of the payments for it are proposed to be considered a criterion of optimization. Consequently, cash turnover is enhanced by the optimal allocation of scarce financial resources. The algorithm of turnover increase is based on the system approach considering the enterprise as a set of interrelated and interacting elements structured in blocks: supply, finances, production, delivery to the customer. Domestic and global developments for the specified and related topics (both theoretical and methodological designs and specialized software) have been analyzed. The analysis revealed a lack of consideration for this issue in the studied scientific material. Interrelated optimization of the parameters of these blocks is proposed as a fundamental factor in ensuring the execution of orders just in time and, consequently, increasing turnover and cash flow for the company. The paper proposes the author's own approach: parametric notation of business process modeling, by means of which the performance indicators of the above blocks are determined and formulas describing their relationship are derived. The results of the work are: 1) the parametric notation of business processes modeling proposed by the author, with the help of which it is possible to form an interconnected system of indicators for assessing their effectiveness; 2) a system of interrelated indicators for planning and evaluating the activities of a machine-building enterprise, obtained with the help of parametric notation
Keywords
: parametric notation; the system of interrelated indicators; optimization; the system approach; business processes; the increase of turnover; machine-building enterprise.
References
1. George, M. (2002). Lean Six Sigma. Combining Six Sigma Quality with Lean Production Speed. McGraw-Hill.
2. Zinchenko, S. (2010). Sokrashchenie vremeni vypolneniia zakaza – «tainoe oruzhie» uspeshnoi kompanii [Reducing Lead Time – A ‘Secret Weapon’ of a Successful Company]. Upravlenie proizvodstvom [Production Management]. Available at: www.up-pro.ru/library/production_management/operations_management/sokrashenie_vrem.html.
3. Akademiia Menedzhmenta. Vidy poter' berezhlivogo proizvodstva [Management Academy. Losses in Lean Production]. Available at: www.am-lean.ru/lean/losses.php.
4. Taylor, F.W. (1911). The Principles of Scientific Management. New York, Harper Bros., 77 p.
5. Fayol, H. (1917). Administration industrielle et générale: prévoyance, organisation, commandement, coordination, contrôle. Dunod&Pinad.
6. Ford, H. (1922). My Life and Work. New York, Garden City.
7. Womack, J.P., Jones, D.T., Roos, D. (1990). The Machine That Changed the World. N.Y., Rawson Associates, 334 p.
8. Ohno, T. (1988). Toyota Production System: Beyond Large-Scale Production. Productivity Press.
9. Bogdanov, A.A. (1913). Mezhdu chelovekom i mashinoiu. O sisteme Teilora [Between Man and Machine. On Taylorism]. St Petersburg, Priboi.
10. Gastev, A.K. (2011). Kak nado rabotat': Prakticheskoe vvedenie v nauku organizatsii truda [Principles of Work: Practical Introduction to the Science of Labor]. Moscow, LIBROKOM.
11. Ermansky, O.A. (1930). Teoriia i praktika ratsionalizatsii [Theory and Practice of Rationalization]. Moscow-Leningrad. Available at: http://www.malb.ru/literatura/racionalizacia.html.
12. Rodov, A., Krutiansky, D. (1964). Plan, potok, ritm [Plan, Flow, Rhythm]. Rostov-na-Donu, Rostov Publishing House.
13. Goldratt, E., Cox, J. (2014). The Goal: A Process of Ongoing Improvement. North River Press.
14. Preve, L.A., Sarria-Allende, V. (2010). Working Capital Management. Oxford University Press, 174 p.
15. Pokhvalov, A.S. (2003). Formirovanie optimal'noi proizvodstvennoi programmy promyshlennogo predpriiatiia v usloviiakh defitsita sobstvennykh oborotnykh sredstv [Forming an optimum production programme for a manufacturing company amid a shortage of working capital]. Extended thesis of PhD dissertation in economics. Penza.
16. Nikulina, E.N. (2004). Upravlenie oborotnym kapitalom na predpriiatiiakh s dlitel'nym proizvodstvennym tsiklom [Working Capital Management at Companies with a Long Production Cycle]. Extended thesis of PhD dissertation in economics. Moscow.
17. Mishchenko, A.V., Dzhamai, E.V. (2002). Dinamicheskaia zadacha opredeleniia optimal'noi proizvodstvennoi programmy [Dynamic Task of Forming an Optimum Production Plan]. Menedzhment v Rossii i za rubezhom [Management in Russia and Abroad], No. 2, 129–136.
18. Shvets, I.B., Bondareva, I.A. (2003). Upravlenie proizvodstvennymi zapasami na predpriiatii [Stock Management at a Manufacturing Company]. Donetsk, Industrial Economics Institute.
19. Wallace, T.F., Kremzar, M.H. (2001). ERP: Making It Happen. The Implementer’s Guide to Success with Enterprise Resource Planning. NY, John Wiley & Sons, Inc., 385 p.
20. Piterkin, S.V., Oladov, N.A., Isaev, D.V. (2005). Tochno vovremia dlia Rossii. Praktika primeneniia ERP-sistem [Just-In-Time Production for Russia. The Application of ERP-Systems]. Moscow, Alpina Biznes Buks.
21. APICS Dictionary (2010). 13th edition (revised). Edited by J.H. Blackstone. University of Georgia, 177 p.
22. Mahesh, V., Reddy, A.C., Rao, C.S.P. (2007). Advanced Planning and Scheduling for Responsive Manufacturing Systema – an Overview. National Conference on Factory Automation, Robotics and Soft Computering. Available at: jntuhceh.org/web/tutorials/faculty/755_nc62-2007.pdf.
23. Frolov, E.B., Zagidullin, R.R. (2008). MES-sistemy, kak oni est', ili evoliutsiia sistem planirovaniia proizvodstva [MES-Systems, or The Evolution of Production Planning Systems]. Metalloobrabatyvaiushchee oborudovanie [Metal-Working Machinery], No. 10 (55), 31–37.
24. Bertalanffy, L. (1962). General System Theory – A Critical Review. General Systems, Vol. VII, 1–20.
25. Bertalanffy, L. (1962). General System Theory – A Critical Review. General Systems.
26. Bogdanov, A.A. (1989). Tektologiia: (Vseobshchaia organizatsionnaia nauka) [Tektology. Universal organizational science]. Vol. 1. Moscow, Ekonomika.
27. Bogdanov, A.A. (1989). Tektologiia: (Vseobshchaia organizatsionnaia nauka) [Tektology. Universal organizational science]. Vol. 2. Moscow, Ekonomika.
28. Shchedrovitsky, G.P. (1995). Izbrannye trudy [Selected Works]. Moscow, Shk.Kul't.Polit.
29. Асkоff, R.L. (1960). Systems, Organizations and Interdisciplinary Research. Sistems: Research and Design. Edited by D.P. Eckman. N.Y., John Wiley and Sons, Inc., 26–42.
30. Young, S. (1966). Management: a systems analysis. Scott, Foresman.
31. Volkova, V.N., Emelyanov, A.A. (edt.) (2006). Teoriia sistem i sistemnyi analiz v upravlenii organizatsiei: spravochnik [Systems Theory and Systems Analysis in Corporate Management]. Moscow, Finansy i statistika.
32. Sadovsky, V.N. (1974). Osnovaniia obshchei teorii sistem. Logiko-metodologicheskii analiz [Fundamentals of the General Systems Theory. Logical and Methodological Analysis]. Moscow, Nauka.
33. Sherwood, D. (2002) Seeing the Forest for the Trees: A Manager's Guide to Applying Systems Thinking. Nicholas Brealey.
34. Drucker, P. (2006). Managing for Results. Harper Business.
35. Drucker, P. (2006). The Effective Executive. The Definitive Guide to Getting the Right Things Done. Harper.
36. Fedoseev, A.V., Karabanov, B.M. (2013). Bitva za effektivnost' [The battle for efficiency]. Moscow, Alpina Pablisher.
37. Kaplan, R., Norton, D. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review Press.
38. Wiener, N. (1948). Cybernetics: Or Control and Communication in the Animal and the Machine. Paris, Hermann & Cie; Cambridge, MIT Press.
39. Forrester, J. (1961). Industrial Dynamics. Cambridge, Mass., M.I.T. Press; New York, Wiley.
40. Prokopov, S.V. (2017). Ekonomiko-matematicheskoe modelirovanie v proizvodstvennom menedzhmente [Economic and mathematical modelling in production management]. Kiev, IMSO.
About Authors
Tretyakov Vasilii Dmitrievich – Candidate of Economic Sciences, Head of the Project Office, Joint-Stock Company “Uralelektrotyazhmash”, Ekaterinburg, Russia (620017, Ekaterinburg, Frontovykh Brigad street, 22); e-mail: vdtretyakov@mail.ru.
For citation
Tretyakov V.D. Scientific Methodological Approach to Optimization of Machine-Building Enterprise's Order Portfolio Execution Plan in the Conditions of Deficiency of Circulating Assets. Bulletin of Ural Federal University. Series Economics and Management, 2019, Vol. 18, No. 2, 210-231. DOI: 10.15826/vestnik.2019.18.2.011.
Article info
Received January 14, 2019; Accepted February 5, 2019
DOI: http://dx.doi.org/10.15826/vestnik.2019.18.2.011
Download full text article:
~745 KB, *.pdf
(Uploaded
13.05.2019)
Created / Updated: 23 September 2021 / 23 September 2021
© Federal State Autonomous Educational Institution of Higher Education «Ural Federal University named after the first President of Russia B.N.Yeltsin»
Remarks?
select the text and press:
Ctrl + Enter
Portal design: Artsofte
Contact us
Rector's Office
Rector, Dr. Victor Koksharov
Tel. +7 (343) 375-45-03, e-mail: rector@urfu.ru
Vice-Rector for International Relations, Dr. Maxim Khomyakov
Tel. +7 (343) 375-46-27, e-mail: Maksim.Khomyakov@urfu.ru