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Increasing the efficiency of production functions based on outsourcing arrangements between enterprises of the region

Samochkin V.N. Tulamashzavod Production Association, Tula, Russian Federation ( )

Chachina E.B. Tula State University (TulSU), Tula, Russian Federation ( )

Antsev V.Yu. Tula State University (TulSU), Tula, Russian Federation ( )

Journal: Economic Analysis: Theory and Practice, #6, 2019

Subject We consider the management of organizations on the basis of outsourcing and making decisions on using thereof.
Objectives The study aims to make an analytical review of existing problems related to capacity utilization and outsourcing of machine-building enterprises of the region, to develop methods for increasing the utilization of capacities and efficiency of production through outsourcing arrangements between machine-building enterprises, and assess the developed methodology.
Methods The study employs the systems approach, elements of the theory of reliability, models for outsourcing and increasing the efficiency of production.
Results We offer an effective mechanism of rational organization of outsourcing to increase equipment utilization, solve the problem of import substitution without attracting financial resources for the purchase of additional equipment by using insufficiently utilized capacities.
Conclusions The presented approach will help increase the output without involving financial resources for modern equipment acquisition while increasing the utilization rate through outsourcing. This approach will enable to accumulate financial resources for the reconstruction of production.

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