Home  Journals  National Interests: Priorities and Security  2(371) - 2019 February

The development of operational management of production processes in the military-industrial complex

Vol. 15, Iss. 2, FEBRUARY 2019

Article PDF Version

Received: 26 November 2018

Received in revised form: 17 December 2018

Accepted: 9 January 2019

Available online: 15 February 2019

Subject Heading: INNOVATION AND INVESTMENT

JEL Classification: C18, C50, D81

Pages: 328–342

https://doi.org/10.24891/ni.15.2.328

Subject The article dwells upon operational management of production processes in the military-industrial complex. We scrutinize theoretical principles for operational management improvement by integrating manufacturing execution systems (MES) and optimizing the production.
Objectives We devise tools to assess MES risks and optimize the production, and a technique for the feasibility study of investment projects if they are implemented in the military-industrial complex.
Methods To analyze the MES risks and optimize the production at enterprises of the military-industrial complex, we determined baseline factors influencing the process. The article reviews two risk assessment approaches. As part of the qualitative approach, we suggest using the ordinal scales underlying the matrix of risk probability assessment and effect. As part of the quantitative approach, we suggest computing the integral risk factor.
Results We justified the choice of the matrix-based management mechanism for MES project implementation and optimization of the production in the military-industrial complex. The article sets out our own feasibility study technique in order to improve the operational management of production processes. The technique intends to simplify the computation of net cash flow by applying the production cycle reduction indicator, which is easily measured.
Conclusions and Relevance If enterprises in the military-industrial complex implement the results of this research, they will be able to increase their productivity, quality of output and reduce the idle time. The findings are advisable for enterprises operating in the military-industrial complex.

Keywords: enterprise, military-industrial complex, management, production processes

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