Improving Defense Enterprise Management in Terms of Production Diversification

Abstract
The article examines the current problems of production diversification by the example of a specific defense enterprise. One of the main concerns here is the preservation and reproduction of outdated principles for constructing organizational management structures. This is one of the extreme difficulties in the transition of defense industry enterprises towards free market economy. Instead of the existing linear-functional management structure, the paper proposes a new business approach to its construction as one of the options for restructuring the organizational structure, providing for the correct description of all business processes of the enterprise both in cost and in technological sections. For a particular enterprise, it is proposed, within the framework of using the process approach, to consider the general production process as the unity of two main subprocesses: operational and innovation, with the operational process being a solution to the current production and sale issues whereas innovative, respectively, to all challenges for the future production. The model of interaction between the services of innovation and operational management is built, which provides for the setting up a technical support service and an innovation center to improve the organizational structure of the enterprise.

Keywords
diversification, defense enterprise, organizational management structure, linear-functional structure, business process approach, operational, innovative subprocesses, Altai Instrument-Making Plant “Rotor”

Funding
The research was carried out with the plan of IEIE SB RAS, project XI.172.1.1, № АААА-А17-117022250132-2

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