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Abstract

Content

1. Theme urgency

The theme urgency lies in the verification and development of the mechanism of implementation of the theoretical and practical fundamentals of project management as a tool for development of industrial enterprise.

2. Research objective

The research objective of the present work is the project explanation on production capacity maintenance of coal-mining enterprises.

    3. Goal and tasks of the research

    The goal of study is the process of production capacity maintenance of the coal-mining enterprise by means of attracting investments. The tasks of the research are theoretical and practical fundamentals of the mechanism of realization of the project of maintaining productive capacity of the enterprise "Mine n.a. A.A. Skochinskiy".

    Content

    The first section of the thesis deals with the theoretical basics of project management.

    With the development of market relations, the unprofitable business entities, the shortage of internal and external investments in projects of maintaining productive capacity, project management is one of the effective tools of development. Project management aims optimization of cash flow, as well as solving problems surfacing entities in the terms of project realization [1].

    There are sufficient quantities of definitions of project. Usually it is a complex of scientific and engineering procedures, affiliated by resources, terms and executives. But the essence of the project covered in the following definition: a project is a temporary activity to create value by a unique product design property aiming the mission of social and economic system[1].

    The ultimate goals of the projects is the creation and development of new techniques, technologies and materials, and others. The objectives of the project may be economic and social outcomes, such as increasing the production capacity of the enterprise, establishment or reconstruction of the market and social infrastructure, social and environmental problems, etc.

    Various projects can be characterized by different criteria (Figure 1.1).

    As can be seen from the table, there is a significant difference between the activities of the enterprise in normal mode and when working on a project. Long-term preparation of new stopes require current and long-term planning of their background based on the total mine exploitation strategy, to provide the mine with the necessary edge of working face constantly.

    Projects of new stopes preparation include the execution of works for the maintenance of mining required for the start of work on coal mining, the purchase and assembling of face and transport machinery and equipment. Therefore, the reproduction of the production capacity of the mine, even only through training and commissioning of new stopes, requires a significant investment in the current period and in the future, provided the investment potential of a profitable enterprise. In order to maintain this potential it is required that every local chart of reproduction was profitable mining operations. Determining the level of profitability of a particular investment project that in the UNIDO methodology referred to the internal rate of return of the project - IRR and is calculated as the discount rate at which the net present value NPV of the project is equal to zero, according to the formula:

    where n - is the number of years of operation of the project (to obtain the return of cash flows); CFt-recurrent cash flow in the year t, UAH (in general terms, consists of profits and depreciation), the IRR is an interior rate of return, the proportion of units[3]. If you have alternative projects, take to the implementation of the accepted one, which provides a greater rate IRR (taking into account the importance of the project in terms of development prospects)[4].

    The biggest management challenge of the average industrial enterprise is a balancing act between conservative and innovative management. Every new thing in management, especially in those established structures like coal mines, is heavily implemented for fear of additional risks, partly, of human inertia, and to a greater part due to the need of initial investment. At present, there are developed and proven project management procedures that improve the performance and profitability of the business.

    Most of the coal-mining enterprises are characterized by constant organizational structure, i.e., for each department assigned its functions. However, the project approach provides collaboration of experts from different areas [8]. Formation of the project team can solve such problems. Starting a new lava in the mines, which can be attributed to repetitive projects in the enterprise, tend to develop common rules for their implementation (time limit for project management), in which the principles of the project team will be registered.

    Conclusions

    Practice shows that the implementation of project management in the enterprise yields positive results, allows you to structure all the processes of work, define clear terms of decision-makers, to supervise the work staff precisely.

    Settlement of the situation in Donbass will inevitably lead to the emergence of companies in the regional market which have a large amount of resources and technology. Under these conditions, contemporary management technologies can be competitive advantages. Organizations with effective management systems, will be able to compete in the new environment. Owning project management technologies will undoubtedly be an important factor influencing competition.

    References

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