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The Abstract of master's thesis on a theme:
"Management optimization of efficient activity of the enterprise"
Author: Yurchenko Alexei

INTRODUCTION
1.1 Urgency of industrial enterprise management
1.2 Purposes and objective of master's work
1.3 Prospective scientific and practical value
2 EXISTING MODELS OF ENTERPRISE MANAGEMENT
2.1 Inventory control model
2.2 Distributive logistics model
2.3 Methods of service logistics
2.4 Fusion of enterprise processes to corporate system
3 DEVELOPMENT EFFICIENT ACTIVITY
        MODEL OF THE ENTERPRISE
CONCLUSIONS
THE LIST OF REFERENCES

INTRODUCTION

1.1 Urgency of industrial enterprise management

There are five levels of perfection of business - processes at the enterprise. Chaos - misbalance of commercial, production and financial purposes. The chaos is characterized by absence of a system view; the enterprise is considered as set of separate elements; The control - balancing of the commercial, production and financial purposes of the enterprise. This level means the adjusted calculation and control of the basic actions; Optimization - optimization (simplification) of the basic business - processes at the enterprise that reduces total costs; Adaptation - adaptability of business - processes to conditions of an environment; Global class - an opportunity of the enterprise to form the market.

The enterprise "beginner" which is included in branch is characterized by unstable deliveries of the material resources necessary for production, unstable demand for production, absence of common information resource and, as consequence, absence of a coordination between the functional divisions (departments of supply, manufacture and selling, etc.) As input and output processes of the enterprise have random character, to construct the determined model of operative activity of such enterprise is not valid. The stochastic model of the enterprise based on random description of processes of purchase and sale. Such model corresponds to traditional approach of resource management at the enterprise when the problem of improvement of material stream inside the enterprise has no priority for each of its divisions. Parameters of a material stream on output are difficultly predicted and as consequence are far from optimal.

Let’s consider now the enterprise that functions in branch long time. It is connected by mutual relations with suppliers of raw material that enables to guarantee a continuity of process of manufacture without superfluous expenses for storage of raw material reserve and materials. Then, there is an opportunity to analyze demand for production, and also to carry out segmentation of the market for revealing a target audience. It provides a continuity of sale and production processes without superfluous costs on finished goods storage. Also by virtue of above mentioned circumstances the enterprise manages to establish a feedback between processes of supply, production and sale. When input and output processes at the enterprise have the determined character, model corresponds to the logistical approach of resource management. Thus there is a new object of management. It is a through material stream. Efficient control of a through material stream allows to reduce costs at all stages of its life cycle. The enterprise now is considered as the complete determined system in which all divisions operate in coordination .

Thus, it is evidently visible, that at evolable enterprises old objects are improved and new ones appear. Therefore management process of efficient activity of the enterprise should be reconsidered and optimized.

1.2 Purposes and objectives of master’s work

The purpose of the given work is to show necessity of business processes fusion at the enterprise and to designate possible variants of optimization of its work.

1.3 Prospective scientific and practical value

The today's situation in the world market forces many companies to vary to keep available and to get new competitive advantages. According to definition of Webster's Ninth New Collegiate dictionary "to change" means « to give to something other position, to set other direction or rate to make shift from one position to another, to modify, to transform, replace, transfer in other quality ». The term "to operate" means «to skillfully supervise or direct, carry out organizing, administrative and supervising functions». So management of changes is a process yhe objective of which is to coordinate and introduce changes in conformity with economic and technical opportunities of the company.

Being the integral satellite of development of any business, changes influence on functional filling. Managers of all levels should understand and take into consideration that the fact, that invariable conducts increase of complexity of business systems to growth of value effective change management. During their realization it often become difficult to introduce new methods and procedures of business dealing to be adequately perceived by the personnel. At scale changes it is necessary to think over the general strategy of their carrying out. There is a necessity to operate risks of introduction, expectations of the interested parties. To carry out changes it is necessary to prevent occurrence of unforeseen risks and to lower their influence on results of works. It is important, that the planned changes have been realized from the first attempt. It will allow the company to achieve the competitive advantages with smaller expenses and time.

Practice of business processes management shows, that most of them demand regular changes. And on some directions of change it is necessary to carry out several times in a month. Single innovations can be carried out in a format of the project. If the question is about dynamic processes demanding constant adaptation to new conditions of the market the necessity of precise regulation and start of management process by changes arises. The change management should function on a regular basis [1].


2 EXISTING MODELS OF ENTERPRISE MANAGEMENT

2.1 Model of inventory control

Input parameters of model: n - intensity of demand; l - intensity of manufacture of the order; s – storage costs; d - the penalty for deficiency; K – cost of order placement.

Output parameters of model: Q - the size of the order; t - the period deliveries; t i duration of i-stage of a cycle of stock change; L – total costs for storekeeping per time unit; м - maximal level of a stock; h - maximal level of deficiency.

The given model is based on an assumption that exists production in which at the first stage the party is made production with intensity l which are used at the second stage with intensity n (fig. 2.1).

The circuit of production

Figure 2.1 - The circuit of production

In model outstanding orders are gathered and immediately satisfied in process of new receipts. Duration of a cycle of stock change t is divided on 4 stages:

  1. t 1 - the ordered product is made, the made product is consumed, the stock collects;

  2. t 2 - the ordered product is not made, the stock is consumed, the stock decreases to zero;

  3. t 3 - the ordered product is not made, the stock is empty, outstanding orders are gathered, deficiency increases;

  4. t 4 - the ordered product is made, backlog is carried out, the stock is absent, deficiency decreases to zero.


 the Scheme of change cycles of stocks in the generalized model OUSE

Figure 2.2 - the Scheme of change cycles of stocks in the generalized model OUSE

Formulas of model:

 formulas of model

 formulas of model

 formulas of model

 formulas of model



2.2 Distributive logistic model

While formatting distribution system the following sequence of actions is applied:

  1. market conditions are studied and the strategic purposes of distribution system are determined.

  2. the size of MS which passes through distributive system is predicted;

  3. the necessary size of stocks of all system and of its separate parts is predicted;

  4. the transport network of service region is studied, the circuit of MS is made.

  5. various variants of distribution systems are developed, corresponding charges for each variant are estimated.

  6. one of variants by criterion of minimal total costs gets out:

     formulas of model

    Where З п - total costs of variant; C э - annual operational costs; C т - annual transport charges; K - capital investments in construction of the distributive chain; T - a time of recovery of outlay of variant.



2.3 Methods of service logistics

We shall allocate stages of formation of logistical service systems:

  1. Segmentation of the consumer market, i.e. its division into concrete groups of consumers, for each of which can be demanded the certain services according to features of consumption.

  2. Definition of the list of the most significant services for their buyers.

  3. Ranging of the services which are included in list, on the importance for buyers, a concentration of attention on the most significant services.

  4. Definition of service standards for separate segments of the market.

  5. The estimation of rendered services, establishment of interrelation between service level and cost of rendered services, definition of service level necessary for maintenance of competitiveness of the company.

  6. The establishment of a feedback with buyers for maintenance of service conformity to requirements of buyers.

The important criterion is level of logistical service. It allows to estimate generally service system, both from a position of the supplier and buyer. Calculation of the given parameter is determined under the following formula

 formulas of model

where N - level of logistical service; m - quantitative estimation of theoretically possible volume of logistical service; M - quantitative estimation of actually rendered volume of logistical service.

2.4 Fusion of enterprise processes to corporate system

It is desirable to have adaptive business - processes which can be adjusted and optimized, to correspond to changing conditions of business, normative requirements of the legislation and competition pressure. This desire has led to control systems of full cycle business - processes (closed loop Business Process Management (BPM) systems). Oracle BPEL Process Manager + tools of of other manufacturers modeling is full and easy platform in application for designing and expansion of full cycle BPM-decisions.

 The full cycle BPM-decision

Figure 2.3 – The full cycle BPM-decision

Life cycle of process will consist of the following steps or problems:

  1. Modeling of process (model the process) - during this step owners of business - processes create high-level the model consisting of tasks which should be carried out, and necessary resources for this purpose. Besides some assumptions of performance time and cost of each task are made.

  2. Imitation and the analysis (Simulate and Analyze) - received high-level model is used for "run" of some hypothetical scripts with the purpose of detection of critical parts (paths) and “narrow necks” (bottlenecks). The received information is applied to adjustment{option} of process before its expansion.

  3. Introduction and documenting (Implement and document) - during this step high-level business - process, actually its description of a high level, will be transformed to model of executed process. Process is documented for being used for training and support in the future.

  4. Expansion and execution (Deploy and Execute) - this step includes expansion of process for BPM-"cursor" (BPM-engine) and its execution for realization through streams [managements and the data] between systems and people.

  5. Monitoring (Monitor) - during this step occurs monitoring business - processes with the purpose of key indicators reception. This step executes, as a rule, with application of business -activity monitoring means (Business Activity monitoring tool) together with BPM-"cursor".

  6. Optimization and redesign (Optimize and Redesign) - after monitoring of the system received metrics can be used for the further process optimization. Real throughput of process and the metrics of use can be entered into the tool of imitation to receive optimum executive model.


3 DEVELOPMENT EFFICIENT ACTIVITY MODEL OF THE ENTERPRISE


Classical MRP-2 task considers planning product and its cost price only from the position of internal manufacture. In classical systems this problem is partly eliminated by attracting of design planning methods. However they are usually insufficiently flexible and integrated into the basic system of planning.

It turns out, that except for actually industrial costs, should be taken into consideration and planned marketing costs, presale preparation and costs of after sale cycle. Generalizing, it is possible to ascertain, that resources should be planned and supervised during all life cycle of the goods. And in this case under life cycle is understood the functional life cycle of the goods against widely known marketing life cycle.

Usually life cycle of the goods is considered only from position of its stay in the market (marketing life cycle).

One of the vital issues essentially affecting on a condition of the manufacture in conditions of competition is an essential reduction of the most economic stages of life cycle. Among them are stage of growth and especially a stage "plateau" - steady demand. In the following figure these changes are shown.

Such situation has led to essential attention to other approach of life cycle estimation, through functional life cycle: the goods, logistic, marketing and service.

This approach affects in many aspects of management and estimation of activity of the enterprise. In particular, cost of the goods is the most important for considering of full life cycle, To plan activity also important during full life cycle.

MRP and ERP systems include the most part of a production cycle, a part of a logistical cycle, from position of planning and management in cost. Though in some systems service systems are supported and configuring, but they as a rule are poorly integrated with other parts of system.

A qualitative monitoring after integration processes at the enterprise, assumes allocation of efficiency parameter of system functioning G. Further updating administrative decisions can consist of development of managing influence u=F (z), compensating indignation z , and directed on deviation minimization of efficiency parameter k=G (u, z).

CONCLUSIONS

According to level of evolutionary development of the enterprise, there should be improved administrative processes on it. The traditional approach to resource management at the enterprise corresponds to chaos level. It means, that a problem of through material stream improvement (an element system level), has no priority value for each of enterprise divisions. Parameters of material stream on output are difficult predicted and as consequence are far from optimal. The reason is that administrative processes at enterprises are of “pushing type ”, when the ready product is made without taking into account requirements and concrete terms of its realization.

Thus, transition of the enterprise to “pulling type”, supposing performance the order in time for satisfaction of concrete need, cannot be feasible without fusion into economic system. The means that provides effective reaction to changes of environment, it is possible to relate the following opportunities of the enterprises: the analysis of an environment, an establishment of communication with potential buyers, the analysis of market condition, promotion and realization of competitive ideas, maintenance of independence of the enterprise from change of a conjuncture of commodity markets, maintenance of the competitive status.


The LIST OF REFERENCES

  1. Колесников С.Н. Стратегии бизнеса: управление ресурсами и запасами. - Москва, «Статус-Кво 97», 2000
  2. Захаров С.И. Информационная интегрированная поддержка управлением цепями поставок торговой компании // Логистика и управление цепями поставок. - №2-3 сентябрь - 2004.
  3. Черненко М. Проблемы управления украинскими предприятиями. // Корпоративные системы, 2002, № 4. -www.cs.comizdat.com
  4. Верников Г. Стандарт MRPII. Структура и основные принципы работы систем поддерживающих этот стандарт. -http://citforum.univ.kiev.ua/cfin/mrp/mrp2systems.shtml
  5. Хруцкий Е. А. Оптимизация хозяйственных связей и материальных запасов (Вопросы методологии). – М.: Экономика, 1997. – 263 с.
  6. Лысенко Ю.Г. Экономика и кибернетика предприятия: Современные инструменты управления: Монография. - Донецк: ООО «Юго-Восток, Лтд», 2006.- 356 c.
  7. Хэнссмен Ф. Применение математических методов в управлении производством и запасами. – М.: «Прогресс», 1966.
  8. Сербин В.Д. Основы логистики (Учебное пособие). - Таганрог: «ТРТУ», 2004.
  9. Румянцев К. Концепции построения ERP-систем на предприятии. -http://citcity.ru/11208/
  10. Стерлигова А.Н. Систематизация элементов моделей управления запасами в звеньях цепей поставок // Логистика и управление цепями поставок. - №4. – 2005. – М.: ГУ- ВШЭ, 2005. – С. 36-54.

* While writing of the given abstract, master’s thesis haven’t been completed yet. Final completion will be at January, 2008. The full text of work and all materials on a theme can be received from the author or his leader after the specified date.

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