Defense Industry Enterprises Research Articles

Creation of a lean management system at an enterprise of the defense industry complex

Specifics of the implementation of lean manufacturing management system (SMPS) tools at the domestic enterprises of the defense-industrial complex, who take efforts towards the increase of the economic efficiency of their production and business operations, have been reviewed. The applied SMPS tools introduced or being introduced by business entities have been analyzed. Approaches to planning and content of the stages of SMPS tools implementation at the defense industry enterprises have been formulated.

Key aspects activation of program-project production management at enterprises of the Russian Federation’s defense-industry complex

The defense-industry complex (DIC) of the Russian Federation plays significantly the significant role not only regarding ensuring defense capability of the country, but also in economy as the leader of high technologies and progressive methods of production management. Key aspects (the directions and conditions) activation of program-project production management at enterprises DIC are considered from positions certainly of necessary ensuring defense capability of the country. Achievement of this purpose requires the managerial tools allowing to try to obtain and support on corresponding world the competitiveness level of DIC products and the managerial mechanism. As perspective the method of program-project management is considered by a pilot-serial production of DIC. The theoretical bases of activation of programproject management on defense industry enterprises which are defined by the competition of interests in the internal and external markets of the enterprises and DIC organizations, the states in general are considered by production. The driving forces of the competition promoting activation of program-project management by production on defense industry enterprises are marked out. Methodological aspects of activation of program-project management by production of defense industry enterprises from positions of types of the competition: social, economic, ecological, institutional and technological, causing competitiveness from the point of view of sustainable development are defined. It is shown that achievement of competitiveness by defense industry enterprises by these types of the competition is provided with the competitive managerial mechanism as a part of the mechanisms of organization, motivations and informatizations, each of which has elements of planning and control. A research purpose is preparation of the theoretical and methodological basis for elaboration of the mechanism model of programproject management by a pilot-serial production on defense-industry enterprises.

Ensuring Technological Independence for Defense Industry Enterprises

Ensuring Technological Independence for Defense Industry Enterprises

Диверсификация предприятий оборонной промышленности в Санкт-Петербурге

Диверсификация предприятий оборонной промышленности в Санкт-Петербурге

Influence of the Town-Forming Higher Education Institution on Demographic Situation in the Monotown

Проблема занятости населения, профессионально-квалификационные и территориальные диспропорции в предложении и спросе на рабочую силу в моногородах России в настоящее время приобретают стратегическое значение с точки зрения формирования необходимого количества рабочей силы, обеспечивающей экономическое развитие предприятий ОПК в моногородах. Без принятия регулирующих мер ситуация на рынке труда в моногородах может обостриться в ближайшем будущем. Решение этой проблемы во многом возможно за счет сохранения небольших градообразующих вузов, которые являются социальными и культурными центрами города. Анализируется влияние наличия градообразующего вуза в моногороде на демографическую ситуацию и формирование необходимого количества специалистов городского хозяйства моногородов в основном за счет местного населения, обеспечивающего экономическое развитие предприятий оборонно-промышленного комплекса. В последние пять лет темпы старения населения в моногородах Удмуртской Республики значительно отличаются: наблюдается омоложение населения в Воткинске и незначительные темпы старения населения в Глазове и Сарапуле. Это обусловлено тем, что в вузах этих городов снижается количество обучающихся по бюджетной форме обучения и оборонный заказ практически не проявляется - данная политика провоцирует «невозвратную образовательную миграцию». Подобная ситуация может привести в недалеком будущем к отсутствию необходимого количества рабочей силы, существенно ограничивающему выполнение государственной программы комплексного развития моногородов.

The defence industry as a locomotive for technological renewal in Russia: are the conditions in place?

This article examines the extent to which the conditions for successful military to civilian technological spin-offs are in place in Russia. This is important because Russian authorities use the potential for such spin-offs as one of several arguments for justifying large defence expenditure. Six conditions are identified, all of which are derived from the theoretical literature on the transfer of technology from the military to civilian sector. We conclude that despite some government efforts to generate spin-offs by providing technology brokering, and despite some joint military–civilian technological development taking place within defence industry enterprises, most of the conditions required to generate substantial technology transfer from the military to civilian sector are not present in Russia.

Cluster as a Tool to Increase the Competitiveness and Innovative Activity of Enterprises of the Defense Industry Complex

Purpose: the main goal of the publication is to make a comprehensive study of the possible application of the cluster approach to improve the competitiveness and innovation activity of enterprises of the defense industry complex. Methods: the methodology of the research is based on the collection and analysis of initial data and information, the article uses a systematic approach to the study of socio-economic processes and phenomena. The research is based on modern theory of competition, innovation, as well as the modern paradigm of cluster development of the economy. In preparing the study, practical materials from Corporation “Rostec”. Results: the article gives the notion of cluster, the prospects for the use of the cluster approach to enhance competitiveness and innovation enterprises of the military-industrial complex. It is noted that the activation of interaction with the “civil sector” is particularly relevant in the context of the reduction of the state defense order, and the theory and practice of cluster management offers a number of forms of cluster interaction between the enterprises of the defense industry and the civil sector. It is emphasized that the development of cluster mechanisms can solve a number of problems related to the insufficient financial stability of defense industry enterprises in the context of a reduction in the state defense order, low innovation activity and the lack of developed models of interaction with small innovative enterprises. Ultimately, the use of cluster mechanisms in the development of defense enterprises is intended to enhance the competitiveness of the complex, both nationally and globally. It is stated that the existing clusters are not able to fully solve a number of specific tasks related to the diversification of integrated defense industry structures. Attention is drawn to the fact that existing clusters are not able to fully solve a number of specific tasks related to the diversification of integrated defense industry structures, such as the need to use information constituting state secrets, interaction with military representatives, various military state standards, special terminology. Recommendations are given on the activation of the potential of clusters with the participation of defense enterprises, for which it is proposed to initiate, in the established procedure, procedures for amending the legislation regulating industrial policy issues, to form additional organizational, legal and financial-economic preconditions for the cluster development of the military-industrial complex. Conclusions and Relevance: conclusion is drawn that the development of clusters based on the defense industry enterprises can be used, first of all, to diversify production and increase the output of civil high-tech products. To activate the cluster mechanism it is recommended to form additional organizational, legal and financial-economic prerequisites.

Strategic Planning at Defense Industry Enterprises

Strategic Planning at Defense Industry Enterprises

SOURCES OF FINANCING INDUSTRIAL COMPLEX ENTERPRISES

SOURCES OF FINANCING INDUSTRIAL COMPLEX ENTERPRISES

Ambiguous effect of arms export on the development of the Russian high technology industry

The paper reviews the role of military products export in the development of the Russian science-intensive and high technology sector. The conflict between the government defense order and export orders, which are the driving factors behind the development of Russian defense industry enterprises, is analyzed. The authors examine the key trends of the development of global arms markets with the focus on the Russian arms and military equipment share and estimate the prospects for growth of the most significant market segments in 2014–2016. It has concluded that in the conditions of the new round of crisis in the world economy comes, the only Russian defense industry enterprises will have the growth opportunities, which are now integrated in the transnational sector of the Russian economy. However their capability to develop successfully will be hugely dependent on both export orders and production for the domestic market. Thus in the near-term the development of the Russian defense industry should be oriented towards the support for the transnational sector, which in the long run will contribute to the technological retooling and production capacities growth of the Russian science-intensive and high-technology production sector.

ОСОБЕННОСТИ ФОРМИРОВАНИЯ И ИСПОЛНЕНИЯ ФЕДЕРАЛЬНОГО БЮДЖЕТА В СФЕРЕ ОБОРОННО-ПРОМЫШЛЕННОГО КОМПЛЕКСА РОССИИ

Importance: The presented research topic is particularly relevant in terms of development of market relations inRussia, when indicated problems whose solution determines the positive results of reforming the economic system, an important place in which occupies the militaryindustrial complex (MIC). Among them special urgency are those that relate to the need to develop such economic relations that would ensure and guarantee the efficiency, competitiveness and sustainability of defense enterprises. In the new economic conditions, it became necessary to address the problems of financial security organizations, the military-industrial complex, the creation of an effective system to manage this process during the crisis and the need to find ways to stabilize the reproduction process inRussia. The conversion of potential military-economic opportunities in the real military power takes place on the basis of the functioning of the military economy that ensures the production and distribution of arms and military equipment. The war economy is responsible, on the one hand, the economic opportunities of the country, on the other – the nature and requirements of modern warfare. It is designed to ensure the maintenance of a constant high combat readiness of the armed forces and must be able to rapidly increase its power to the level required for the breakdown of military aggression. Problems of realization of military and economic potential are determined by the degree of use of the military and economic opportunities, as well as the effective use of financial resources. Objectives: The aim of the article is to analyze the problems of the formation and execution of defense spending. Objectives of the article: identify design characteristics of the defense component of the federal budget during the crisis of Economic Development. Methods: Methodological basis of this article are of economic and statistical methods of analysis. Results: Given that the management of the defense industry will be converted, you must use the positive experience of the international economic order to ensure the sustainability of their financial security. However, in the interests of the state and society to establish an efficient funding of defense enterprises requires a special approach for the following reasons: an effective system of financing of defense enterprises need to ensure the economic security of the country; establish a mechanism of redistribution of financial resources through economic transformation strengthens state control over the targeted use of funds; necessary, new approaches to the assessment and decision-making to improve the financial sustainability of defense enterprises. From a stable financial situation of the company and the development of DIC depends on the economy as a whole. The study gives reason to believe that at the present time inRussiaslowed down the pace of development of defense industry enterprises, has developed an unbalanced branch structure. In this regard, the study of problems related to the development of theoretical and practical tools for assessing the financial security of defense enterprises require special attention. The implementation of sound financial and economic policy, improving financial support to enterprises of the military-industrial complex of the state, identifying ways to improve the financial sustainability in transformation of the market economy is an objective necessity. Conclusions and Relevance: The practical significance of the work lies in the orientation of the provisions of the conclusions and recommendations of the work on the widespread use in improving the mechanism for defense and security, and the proposals contained in the article (to improve the planning and use of funds allocated from the state budget on defense) may be used by the legislative and executive bodies the Russian Federation, including the Ministry of Defence, in the current activity.

Defense industry technologies in contemporary medicine

The article considers one of the Russian defense industry enterprises and its considerable contribution to the development and manufacture of medical equipment, including portable non-contact type intraocular pressure meters. Information on the pressure meters is given.

Governance and Incentive Regulation in Defence Industry Enterprises: A Case Study

In this paper, we analyse the relative efficiency of the Portuguese defence industry with a stochastic frontier. In so doing we consider whether government subsidies have, in fact, resulted in an increase in the technical efficiency of the Portuguese defence-sector companies and whether there is a governance environment to enforce the desired improvement in efficiency. We find that the results are, at best, mixed, leading us to conclude that the incentive regulation introduced by the Ministry of Defence is not achieving its aims. Moreover, governance issues are not on the government agenda. Therefore, we propose a policy revision to enforce efficiency, based on a governance environment framework.

Market Reforms and Regional Differentiation of Russian Defence Industry Enterprises

IN THE COURSE OF THE 1990S the Russian defence industry was hit by the triple shock of severe budget cuts, radical market reforms and the breakdown of traditional economic ties with partners in the other former Soviet republics. While the shock of transition has taken its toll, by the second part of the decade the defence industry was engaged in the process of adaptation to the market and 'bottom-up' restructuring. At the same time, the change in the macroeconomic situation brought about by the financial crisis of 1998 has helped to reverse the decline of the Russian defence industry. The deep devaluation of the ruble increased the competitiveness of Russian military exports along with the civilian products of the defence industry sold on the domestic market and created conditions for its possible revival. The major change in the international situation brought about by the terrorist attacks in the US and the war in Afghanistan in 2001-02 has given an additional impetus to the development of the Russian defence industry. In view of the current situation, it is reasonable to expect that in the near future the industry will be receiving more attention and support from the Russian government than at any time in the past decade. This article analyses new developments in the transformation of the Russian defence industrial complex and focuses on the differences in results of defence enterprises' adjustment to the market across Russian regions. In conducting this analysis our main goal was to answer the following questions: (1) to what extent have Russian defence enterprises benefited from the general economic recovery in Russia since the 1998 financial crisis? (2) what are the main differences in the economic and social situation of defence enterprises based in different regions? and (3) what explains the better economic performance of defence enterprises in 'the centre', defined here as the city of Moscow, the Moscow region and the city of St Petersburg, than in the provinces? Regional differences in the performance of defence enterprises were one of the traditionally under-researched areas of studies of the Soviet and later Russian military-industrial complex.' Prior to the break-up of the USSR the main obstacle to such investigations was secrecy. Later, with partial privatisation of the defence sector

Defence Industry Consolidation in East Central Europe in the 1990s

THE DEFENCE INDUSTRY WAS ONE OF THE PILLARS of the command economy system. It was the centre and quintessential representation of a classic command economy, with its rigidity, centralised control, strong vertical hierarchy and meticulously elaborated, quantitative, obligatory plans that articulated political and military-technical needs rather than efficiency considerations. Being a specific, closed sector of the economy, the defence industry managed to preserve these basic characteristics practically until the end of the 1980s. Not only in the former Czechoslovakia, but even in reformminded Hungary, defence-related production remained an almost untouched residuum of the classical command economy. Defence industrial production peaked in the late 1980s in East Central Europe. Soon afterwards, however, the sector was hit by an unprecedentedly deep crisis. The first major blow was the sudden end of the Warsaw Treaty Organisation (WTO). The large-scale and lucrative military markets and intense military-economic cooperation networks of the region collapsed. Defence industry enterprises quickly became insolvent. Their financial difficulties were aggravated by the burdens of unsold stocks, cancelled production lines and enormous reserves. The collapse of the WTO military markets took place simultaneously with the collapse of the civilian markets organised within the Council of Mutual Economic Assistance (CMEA) system. Defence industry enterprises in East Central Europe were dual-purpose: in addition to their military-related output, they exported large quantities of civilian goods to the Eastern European markets. The disappearance of the WTO and CMEA meant the collapse of an extended supply system as well. Companies could not rely anymore on large and cheap raw material and energy supplies from the Soviet Union, and lost their stable network of intra-regional subcontractors as well. This was another factor that pushed production costs upwards and caused major practical problems in reorganising the firms' activities. Another unexpected blow was the loss of the traditional Third World markets, principally in the Arab world. This market became an increasingly important source of hard currency for defence industry enterprises from the mid-1970s. The Gulf War and the subsequent US embargo on Iraq, Libya and Syria froze these business contacts.

The Transformation of Ownership Relations in Defense Industries Privatization of defense industry enterprises

The common goals and tasks of state privatization programs have not taken into account the peculiarities of defense industry (DI) enterprises even though they comprise a considerable part of the country's scientific, industrial, and manpower potential. DI enterprises also produce a large relative share of high-tech and technically sophisticated civilian products and non-food consumer goods. In 1994 the defense complex accounted for 80 percent of the nation's total production of these products. The privatization of DI enterprises has therefore pursued the goal not only of preserving but also of further improving their scientific-technical and manpower potential. The principal tasks of privatization in this sphere include: —the minimization of the cost of producing and developing arms and military equipment with due regard to the demands of military doctrine and of ensuring Russia's defensive capability on this basis; —the creation of an optimal structure of production in the DI corresponding to market cond...

Sink or swim? Central European defence industry enterprises in the aftermath of the cold war

(1995). Sink or swim? Central European defence industry enterprises in the aftermath of the cold war. Europe-Asia Studies: Vol. 47, No. 5, pp. 787-812.