Assessment of the effectiveness of the management system of an industrial enterprise over the whole product life cycle

Abstract

The authors explain one of the ways to ensure the sustainable development of an industrial enterprise in a dynamic business environment. The solution is to develop an assessment method and tools as well as their application in the context of measuring the effectiveness of the enterprise management system. To achieve these the main approaches to the assessment of the effectiveness of managerial decision-making have been identified and analyzed by the authors. The article provides proof, that the approach towards functional effectiveness of the management system allows to identify problems of management functions implementation, but not to determine the state of developmental sustainability of the enterprise under study. The approach to the assessment of system effectiveness of management allows to identify an incorrect communication of managerial decisions, but not to determine the rate of economic growth of the enterprise. The approach towards the sustainable effectiveness of management allows methodologically not only to identify the potential of the enterprise, but to strengthen it as well and this, in practice, will ensure the long-term development of business in a dynamic external environment. The authors, therefore, suggest developing the final approach and provide new assessment tools for enterprise management subsystems along with the methodology, allowing to determine target sustainability of a management system that contributes to even development of an enterprise in all spheres of its activity. Authors’ solutions have been tested at OJSC ‘RPC ‘Uralvagonzavod’ and demonstrated that the enterprise under study operates statically. In conclusion, the authors recommended ways of improving the management system of OJSC ‘RPC ‘Uralvagonzavod’ for it to operate successfully under dynamic business environment conditions.