Operations management: converting manufacturing capital in manufacturing-technological systems of engineering business

Economy and management of the enterprise

The article is dedicated to rethinking Kondratyev’s research of economic environment in countries having the developed market economy. The methodology and the results of his research allowed us to conclude that there is no national economy, but there are national economic models. The initial parameters in these models are the needs of people ensuring their life activity. These conclusions have been made by analyzing prior indicators of different countries and the improvement rate of technological and manufacturing assets. Kondratyev’s waves are the results of human activity in an objective economic environment directed at fulfilling people’s needs. Shumpeter also suggested improving economic models based on continuous human needs in innovative products, technologies and efficient manufacturing structures. To respond to these challenges, we offer to use the first and second laws of thermodynamics. Based on these laws we have developed a mathematical model for converting manufacturing capital into monetary capital in the form of produced and sold products and services. The studies of a conversion operating cycle in real engineering business have shown that the market cost of business on the stock market and its result in the form of sold products are determined by a criterial equation including five similarity criteria. The mathematical model of operations management has been created based on an operating cycle converting the manufacturing capital into monetary capital in the form of produced and sold products and services. Further research will be dedicated to extending this approach in evaluative technologies of tangible and intangible assets, estimation of business by the market capital method, designing innovative projects, organization of manufacturing processes based on transfer operating costs within technological stages being at the same time the zones financial responsibility, organization of management accounting