Continuous improvement of industrial enterprise’s production system: indicators and assessment model

Economy and management of the enterprise

The creation of management mechanism, which is relevant to the innovative development strategy and ensures international competitive ability, is an important task for Russian industrial enterprises. This mechanism is based on the process of continuous improvement in constantly changing environment, when material resources, investment, innovations and personnel of enterprise are balanced and aimed on maintenance of current and future competitive ability. Continuous improvements are connected primarily with production systems’ development on the principles of stream management oriented on market. The absence of complex methodology of study and creation of Russian enterprises’ production systems, including models and methods of performance measurement, makes researches in this area relevant and timely. The purpose of the article is to represent one of the possible approaches to assessing the level of enterprise’s production system development, based on the integration of principles of lean manufacturing and theory of constraints. Researching and writing the article one uses interdisciplinary knowledge (technological production processes were considered in unity with economic principles of their construction and management), combination of technical and technological approach, formal logic and mathematical economic modeling. As a result the authors propose the system of indicators and mathematical economic model for results assessment of improvements in accordance with the modern concepts of production system management. Their practical approbation was carried out on enterprises of equipment and metal products manufacturing in Novosibirsk. The article represents the results of only the one of the stage of the study. Further researches are connected to the development of comparative analysis of high-tech enterprises’ business processes, models of production and business processes optimization and synchronization of different types of flows, algorithms and selection criteria for solutions of the production system development, methods of measurement and reduction of risks during implementation of innovative strategies. The results will contribute to the deepening of knowledge of the phenomena and processes in economy and management of modern production. One proposes the scale of integral assessment of the production system development level approved on enterprises of equipment and metal products manufacturing in Novosibirsk.