A creative model for graphical design of conversion processes in engineering business

Economicmathematical models and tools

Innovation processes are a tool for quantitative and qualitative assessment and subsequent improvement of the efficiency of the engineering business. To accomplish this task, we have developed a creative graphical model based on the principle of converting the manufacturing capital into its money equivalent in the form of sales volume. The graphical interpretation of the closed operating cycle of conversion (OCC) in a manufacturing-technological system (MTS) is implemented in a triangle coordinate system including five cash flow vectors: sales volume; manufacturing capital; technological costs; net income; main funds (sum of tangible and intangible assets). The theoretical principles and the architecture of the parameters of the engineering business have been formulated on the basis of examining the OCC parametrical equation in a triangle coordinate system. We have obtained the following results: in a real engineering business the conversion criterion of an operating cycle (the relation of sales volume to manufacturing capital) is less than unity; in an ideal operating cycle this criterion is equal to unity, and exceeds unity in excise business. Accordingly, the net income in a real operating cycle is less than the technological costs, and they are equal in an ideal operating cycle, and the net income is more than the technological costs in excise business. The main funds of a manufacturing-technological system in a real operating cycle are more than the net income, they are equal in an ideal cycle, and the main funds of an MTS are less than the net income in excise engineering business. The task of innovating projects is to create the architecture for the parameters of operation cycle conversion in an MTS providing an increase in the investment attractiveness of engineering business on the stock market.