Management of Utilization and Development of the Production Capacity of the Military-Industrial Complex

Abstract

The article deals with the issue of efficient utilization and development of the production capacity of the military-industrial complex companies comprising integrated structures (mainly, state corporations). This issue is essential for the Russian military-industrial complex which faces the deficit of investment resources and the need for urgent implementation of large-scale production plans. The article suggests the ways to assess the resource management’s efficiency in the integrated structures’ companies, including utilization and development of capacities of specific companies. The production capacity-based integrated indicator of management efficiency (which may be estimated on the basis of directly measurable values) was developed. It shows the potential increase in the integrated structures’ production capacities without additional investments, solely due to resource management’s enhancement in the member companies. Business tools for improvement in the production capacity management efficiency were also explored. Efficiency indicator was suggested for development of production capacity of the integrated structures’ companies, and the optimal principles of selection of investment recipients are explained for 2 scenarios: when complete production cycle is preserved at each company, and when the companies become specialized within integrated structures. Business tools for making optimal investment decisions with regard to information asymmetry and opportunism of companies’ managers are described. The analysis allowed to develop the structure and algorithms of integrated structures of the production capacity utilization and development management system on the tactical level (capacities utilization management), the strategic level (capacities development management) and the superstrategic level (capacity maintenance, particularly using the technologies and production capacities of machine tool builders).

DOI: 10.5901/mjss.2015.v6n5s4p327