Importance Unstable economic situation impedes a steady growth of industry and necessitates re-engineering of domestic enterprises. In scientific literature, most works address re-engineering of administrative and managerial processes of organizations, whereas production processes are unconsidered and do not have theoretical underpinning. Objectives The aim of the research is to review the terms and categories of re-engineering and develop conceptual framework for re-engineering of production processes. Methods The study employs general scientific methods, like abstraction, generalization, logic, theoretical analysis and synthesis, investigation of economic categories and classification methods. Results I analyzed theoretical aspects of re-engineering as a method to perfect modern business. Special focus is on types of re-engineering. I propose two types of re-engineering according to the sphere of implementation, i.e. administrative-and-managerial and production re-engineering. Thorough consideration is given to developing the methodology for re-engineering of production processes. The paper accesses the efficiency of re-engineering of production at industrial enterprises. Conclusions It is necessary to classify re-engineering of production processes as a separate category, as a form of innovative development.
Keywords: industry, re-engineering, production process, innovation
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