Issue No. 1 (17), 2017

ECONOMIC SCIENCES

B. A. Nefedov and G. A. Suvorov

DEVELOPMENT OF PRODUCTION MANAGEMENT, ITS BASIC PRINCIPLES AND OBJECTIVES IN AGRICULTURAL ENTERPRISE

Nefedov Boris Aleksandrovich - Doctor of Technical Sciences, Professor, Department of Management, Faculty of Economics named after A.V. Chayanov, RSAU-Moscow Agricultural Academy named after K.A. Timiryazeva, Moscow, Russia

E-mail: banefedov@gmail.com

SPIN: 6956-0680

Suvorov Gleb Aleksandrovich - Master's student of the Department of Management, Faculty of Economics named after A.V. Chayanov, RSAU-Moscow Agricultural Academy named after K.A. Timiryazeva, Moscow, Russia

E-mail: gudlefr.s@gmail.com

RSCI SPIN: 1117-3869

annotation

This article opens a cycle of educational materials, which summarizes the results of the authors' work on researching and teaching the discipline "Production management in the agro-industrial complex" at the Russian State Agricultural University named after K.A. Timiryazev. The article examines the history of the development of industrial management in the world and in Russia, highlights the basic concepts and stages of the development of science. The importance of setting specific tasks and goals in the formation of a management system at an agricultural enterprise is noted. Subsystems of production management are also considered.

Keywords

Management thought, production management, management subsystems, management schools, management at an agricultural enterprise, history of management development, management decision.

Bibliographic address

B.A. Nefedov, G.A. Suvorov Development of production management, its basic principles and objectives at an agricultural enterprise // Risk management in the agro-industrial complex. 2017. No. 1. S. 5-26. URL: http://www.agrorisk.ru/20170101 [access date: DD.MM.YYYY]. ISSN 2413-6573.

The origins of management thought date back to the period of the emergence of humanity. As soon as two or more people made a decision to jointly perform a certain work (making fire, hunting animals, fishing, etc.), it became necessary to divide labor and coordinate their actions, which later, at the beginning of the 20th century, were named production management.

Thus, we can conclude that management arose simultaneously with production, that is, with the receipt of a certain product obtained by common labor.

Several definitions of production management are known. Let's note some of them:

1. Production management is a complex system of ensuring the competitiveness of the manufactured goods in the competitive market;

2. Production management is a scientific and practical activity of effective management of the processes of transformation of initial resources, including natural raw materials at the "entrance" of the organization into finished goods and services at the "exit" of the organization (Figure 1).

In the meantime, there is no need to know about it. ”

Figure 1 - Areas of influence on the main types of management of the organization: transformations - production management; outputs - commercial (marketing); inputs-transformations - outputs - financial management

The transformations that make up production management include a system of interrelated elements characteristic of production:

· Organization;

· Maintenance;

· Material support;

· System of plans and implementation of programs;

· Production and organizational structures;

· Organizational and legal forms of production;

· Equipment and its optimal load;

· Updating the equipment and eliminating its malfunctions;

· The use of resource-saving technologies, the introduction of progressive forms of remuneration, incentives for the organization's personnel.

Each of these elements is related to production management and requires appropriate consideration in their relationship and interaction.

The main stages in the development of production management are associated with achievements in the field of labor organization, production, means of mechanization of technologies, production of goods and services.

It is worth noting the results of research by a number of prominent scientists who stood at the origins of production management.

First of all, it is the English economist A. Smith, who showed that the division of labor, the specialization of the worker in a relatively narrow area of work are a powerful source of growth in labor productivity and, as a result, growth in the welfare of the nation. Further distribution of labor and specialization of jobs made it possible to organize in-line production of a mass product at industrial enterprises.

The inventor of the spinning machine R. Arkwright combined all the processes of textile production under the roof of his factory and introduced the hierarchical principles of its organization. Based on the division of labor, planning, equipment placement, coordination of the work of machines and personnel, ensuring discipline, he managed to achieve the continuity of technological processes, which made it possible to significantly save production costs and achieve noticeable success in the fight against competitors.

In essence, Arkwright laid the foundations for industrial management of the organization of production. He formulated the disciplinary "code of the factory system", according to which for various violations in the form of a set of penalties recorded in the signal book, lead to deductions from wages.

American engineer E. Whitney developed and implemented the principle of parts interchangeability. This gave him the opportunity to fulfill the order of the US government for the manufacture of 10 thousand muskets in a very short time, which would have been impossible in other conditions. The principle of interchangeability is at the heart of modern concepts of standardization and quality control.

The Englishman C. Babbage, the inventor of the first computer, developed the ideas of A. Smith. He proposed to split the entire production process into a number of simple operations, the execution of which was carried out in a given sequence. In essence, it was about the formation of a sustainable technological process in production. Ch. Babbage for the first time pointed out the need to separate physical and mental labor, as well as the use of a bonus payment system.

Babbage placed the results of his research and practical recommendations in the book "On the economy of materials and equipment", which turned out to be the first publication in the world in the field of scientific production management.

Similar work was carried out by Russian scientists. For example, in 1860-1970, employees of the Imperial Moscow Technical School developed their own method of rationalizing labor movements, which received the "Medal of Prosperity" at the World Trade Fair in Vienna in 1873. And this technique immediately began to be actively implemented by British industrialists.

In 1908, collections of translations of foreign publications in the field of scientific management began to appear in Russia, and in a number of higher educational institutions of the country, disciplines related to management began to be taught.

Research was resumed in the fields of industrial management and scientific labor organizations after the First World War and the Civil War in the early 1920s. Their first result was the formulation "The Basic Laws of the Scientific Organization of Production and Labor", which in many respects remain relevant to this day. They are as follows:

1. The law of the smallest in chain communication - the final volume of production, which is sequentially processed in several departments, is determined by the capabilities of the weakest of them, no matter how strong the others are.

2. The law of mutual closure - first, divisions of the main production are created, and then "subsidiary" ones, working for them and for each other, after satisfying internal needs - on the side.

3. The law of rhythm, according to which the rational functioning of the economy is impossible without the rhythmic work of both production and individual workers;

4. The law of parallelism - the sequence of work, which requires that private production and labor processes are carried out not only sequentially, but also in parallel, "so that the overall end result is not delayed by the lagging behind";

5. The law of front-line work - the load on people must correspond to their real capabilities, in other words, “you don’t need to put two people where one can handle the job”;

6. The law of real conditions - when organizing any activity, it is necessary to set only achievable goals based on real conditions, personal needs and possible results.

In the last decade of the XIX century. Russian scientists D. Lachinov, M. Dolivo-Dobrovolsky, as well as the French researcher M. Debreu solved the problem of transmission of electricity over a distance, which made it possible to further develop industrial production. The use of an electric drive on production machines led to an increase in their power, a decrease in overall dimensions and, as a result, to a more efficient use of production areas, improved working conditions for workers. These developments have led to the formation of such new industries as power engineering, electrical appliance engineering, power generation and transportation.

The latest developments in technical and communication tools - A. Ladygin's light bulb, T. Edison's telephone, radio - A. Popov, computer - D. Amanosov and others made it possible to improve production conditions for obtaining products, changing the elements of managerial labor.

A significant contribution to the improvement of production management was made by various schools of management: scientific management (F. Taylor and others), classical or administrative (A. Fayol and others), human relations (E. Mayo and others), management science (R. Ackoff and others).

Due to the fact that the emergence and development of management schools is directly related to the formation of management at enterprises, as elements of the country's economy, we will consider the formation of a management system at agricultural enterprises.

As we know, the organization of production in the agro-industrial complex of the country has its own characteristics associated with living organisms, plants and animals, as well as natural and climatic conditions that affect the functions and management structures, methods and style of management, seasonality of work, soil use ( lands), etc.

The land is not only an object of labor, as in other areas of the social economy, but also an object of labor, the main means of production. This predetermines the territorial dispersion of production, settlements, the construction of management bodies, mainly on the territorial-production principle. Management from a single center is almost impossible.

The territorial dispersion of production and the remoteness of structural divisions from the center, the lengthy means of communication make it difficult to collect and process information, which leads to a delay in making operational decisions, therefore, requires expanding the independence of the organization and its functional divisions, especially in the field of current operational and economic activities.

In addition, the agro-industrial complex includes industries that produce means of mechanization, automation, energy use for agriculture, the totality of which can be characterized as engineering systems: tractors, combines, agricultural machines for growing grain, vegetables, etc., technical and other equipment for animal husbandry, as well as groups of industries processing raw agricultural products - sugar factories, canning, dairies, etc., customer service maintenance, while all engineering systems require maintenance, current and overhaul.

Therefore, considering production management in the sectors of the agro-industrial complex, it should be noted that sectoral production management reflects two areas of study: industrial and agricultural, which can be represented in their unity, i.e. agricultural production with its specificity will borrow many issues of industrial production management, for example, the organization of the use of metal-cutting machines (operating mode) in industry and in the agro-industrial complex at its repair enterprises.

The dependence of agricultural production on natural and climatic conditions is largely determined by the difference in the zones of the country. Taking these conditions into account largely determines the efficiency of production in zonal systems of economic management.

Production cycles, their duration are closely related to natural biological processes. Hence, the seasonality of production, the uneven use of material, labor, financial and other resources over the periods of the year require managerial workers to find ways to equalize their use, especially labor. This also caused the unequal work intensity of managerial workers in different periods of economic activity (sowing, harvesting).

The variety of forms of ownership and management determines the formation of their inherent governing bodies, while simultaneously developing horizontal coordination ties to address common issues in the territory where these farms are located (general services, social and cultural sphere, etc.). Production in personal subsidiary farms is of great importance in solving the food problem.

There are other features of management in agricultural enterprises: the difference between town and country, traditions, customs of the population, price parity, infrastructure.

Production activity determines the process of functioning of each production unit: workshop, farm, site, team. The result of this process is the release of products by each of them, created on the basis of a rational combination in time and space of objects, means and labor itself.

As an object of management, production is a dynamically developing system, the elements of which are interconnected and interdependent on the internal and external environment of each enterprise.

Management principles are the basic rules based on the operation of objective laws and regularities that guide people in management activities and in building a management system. The principles of production management reflect the initial requirements that must be met by a rational structure of management and its methods, the relationship of the enterprise and associations with higher management bodies, other organizations, enterprises and institutions.

In the production management system, general, fundamental (organizational and economic) and private - organizational and technical principles are distinguished. Organizational and economic principles in relation to organizational and technical ones act as objective, defining ones. They form the basis of the production management system in all spheres and types of activity, are universal in nature and must be implemented by management personnel, regardless of the specification of the tasks to be solved.

Consider the content of organizational and economic principles.

The principle of division and cooperation of labor - labor must be regulated, each employee of the administrative apparatus must perform his functions determined by his official powers, while there can be cooperation when performing functions similar in content, for example, planning and accounting services of an organization can cooperate.

The principle of the main link, which consists in identifying the main direction of production, which at the moment determines the effectiveness of the organization and the concentration of the efforts of the management apparatus on it.

The principle of concreteness and efficiency states that all decisions made by the management apparatus must be specific and timely. The management apparatus is obliged to respond quickly to changes in external and internal production conditions. Management decisions must be clear to the performers and justified.

The principle of one-man management and collegiality means that the head of an agricultural organization enjoys the right to solely decide issues within his competence, is initially responsible for the work. Increasing the level of efficiency and efficiency in production management, strengthening order and labor discipline at any level of the management system presuppose the strengthening of one-man management.

At the same time, a manager should involve specialists in the process of preparing management decisions, take their opinion into account, and use collective experience.

The principle of selection and placement of personnel is that the use of personnel must correspond to their knowledge, experience and skills. Each performer should occupy a place in the management structure where his activities will be most effective.

Material and moral incentives for staff. The development of market relations creates great opportunities for a comprehensive impact on the interests of people, strengthening their interest in increasing production efficiency.

Along with material incentives, moral incentives are also important. These include various forms of the latter, including the benevolent and trusting relationship between the leader and team members.

An important management principle is the responsibility of employees for the assigned work. Compliance with this principle presupposes the creation of a rational management structure, as well as the establishment of the range of duties, rights and responsibilities of each employee, provided for in the provisions on management links and job descriptions, material responsibility for improvements in work, untimely performance of official duties, violation of labor discipline.

The implementation of the principle of responsibility presupposes a rational installation of production personnel at workplaces, which allows at any time to accurately determine who is responsible for the performance of a particular work or operation.

The scientific principle means that the management system and its functioning should strive and obey objective and economic laws, and production management activities should be based on knowledge of social laws, be carried out taking into account their requirements, as well as the real conditions on the basis of the scientific development of the economy.

The implementation of the scientific principle provides for the use of the latest achievements of science and technology in the field of management activities in the management process, a comprehensive accounting and analysis of the practical experience of production management.

The organizational and technical principles of management include territorial, sectoral and combined (territorial and sectoral). They are based on the forms of organization of production in all types of agricultural organizations.

In accordance with the territorial principle of management, production is dispersed over a large area and has an internal organizational division (departments, production sites, integrated brigades, links). On the assigned territory, management is carried out by managers, section chiefs and foremen. This principle is used in large, diversified agricultural organizations with a large territory and underdeveloped infrastructure, low concentration of production and labor.

The sectoral (shop) management principle is applied in farms located on a compact territory and with a high concentration of production and labor. Mostly these are organizations with one or two settlements located at a small distance from each other, and large production units. In this case, management is carried out by industry specialists (agronomists, engineers, livestock specialists, etc.).

The combined management principle is applied when the organization has elements of both sectoral and territorial management. In a more developed industry, the sectoral principle of management is applied, in less developed - a territorial one.

With a change in the conditions of production, certain changes take place in the principles of management, first of all, in the forms and methods of implementation.

Management of production development is a conscious, expedient influence of the subject of management on the elements of the production process and their adjustment in order to increase its efficiency, increase labor productivity, and improve product quality. Direct production management is carried out on the basis of planning (goal-setting), organization of work (management), labor motivation, coordination, control over the implementation of decisions and regulation of the course of production.

The production units of an agricultural enterprise operate and develop in accordance with the intended goals.

The implementation of the goals requires a clear definition of specific tasks for the teams of departments, as well as the corresponding resources, activities for their implementation.

Goals and objectives are the ultimate boundaries to the achievement of which the activities of the team of subdivisions are directed. Their development should be based on an analysis of the current situation of an agricultural enterprise, the results of its production and economic activities and the prospects that may open up for it in the future. The following groups of tasks can be cited as examples:

· Timely introduction into production of new, more advanced technological processes, products;

· Reduction of all types of production costs, increase in labor productivity;

· Improving the quality of products, their economic security (agricultural products).

The tasks of each production unit may be different, but the main management goal remains the same for each of them: the unconditional fulfillment of the given production program for the production of products and the achievement of the minimum expenditure of materials, labor, time and financial resources.

The implementation of the management goal is achieved through the use of rationally distributed and interconnected in time and space functions and management structure.

Production management functions characterize the specialization of labor and determine the main stages of the implementation of the impact on the relations of people in the production process. The general functions of production management are planning, organization, motivation, coordination and control.

Planning occupies a central place among all management functions, since it is designed to strictly regulate the behavior of an object in the process of realizing its goals. This function provides for the determination of specific tasks for each department for various planning periods and the development of production programs, while providing for the fullest use of advanced equipment and technology, the production capacity of the enterprise, material and moral incentives to increase labor productivity. In this aspect, planning acquires important economic significance, since when forming production programs, it is necessary to take into account all types of available resources, the cost of their acquisition, supply, distribution and rational use. Here the need arises to find the most economical, optimal solutions to achieve the goals set with minimal costs or losses. For this, economic and mathematical methods and computers are used, with the help of which various options for management decisions are developed.

Planning has a direct impact on the level of revitalization of the leadership and management apparatus. The high quality of software development with the help of computers and economic and mathematical methods, their strict coordination across all divisions of the enterprise, consistency with the available material, financial, and labor resources allows the most effective production management.

With regard to the production unit, the organization function reflects the structure of the controlled and control systems that ensure the production process and the targeted impact on the team of people who implement this process. In addition, the function of the organization realizes the relation to the control system, characterizing its inherent properties, structure, composition, interconnection and the process of interaction of these elements, as well as to the organization of system management and the organization of work on the implementation of each control function.

Organization as a form of existence of an agricultural enterprise has the property of dynamism, which is confirmed by the need in a competitive environment of continuous processes of introducing new equipment and technology. The organization and the production management system are closely interrelated. At an operating enterprise, an improvement in the organization of production is accompanied by an improvement in the management system, and, conversely, the need to improve the management system causes work to improve the organization of the production process. If this condition is not met, a disproportion may arise between the level of organization of the production process and the control system.

The organization of control is a set of techniques and methods for the rational combination of elements and links of the control system and its relationship with the controlled object and other control systems in time and space. In this case, the organization of management ensures the creation of the most favorable conditions for achieving the set goals in a specified period of time with the minimum cost of production resources.

Motivation as a management function influences the collective of a farm, shop, in the form of incentives for effective work, social impact, collective and personal incentive measures, etc., these forms of influence activate the work of management bodies, increase the efficiency of the entire production management system.

The coordination function is necessary to ensure the coordinated and well-coordinated work of the production and functional divisions of the organization involved in the implementation of the planned targets. This function is implemented in the form of influencing the team of people employed in the production process by line managers and functional services of the enterprise, who regularly and efficiently coordinate their activities.

Control as a management function manifests itself in the form of influencing a team of people by identifying, generalizing, analyzing the results of production activities of each member of the organization (workshop, farm, department) and bringing them to the heads of departments and management services in order to prepare management decisions. This function is implemented on the basis of information about the progress of planned tasks (operational, statistical, accounting data), identifying deviations from the established performance indicators (monitoring task execution) and analyzing the causes of deviations.

Closely related to management functions are functions such as rationing and regulation. The rationing function should be seen as the process of developing scientifically based estimates that quantify and qualitatively assess the various elements used in the production and management process. This function affects the behavior of the object, disciplines the development and implementation of production tasks with clear and strict norms, ensuring a uniform rhythmic course of production, its high efficiency. Scheduled standards calculated in accordance with this function, in particular for technical service (production cycles, sizes of supplied equipment, stocks of parts, etc.), serve as the basis for planning, determine the duration and order of movement of objects of labor in the production process.

At the same time, in workshops, divisions, standards are created and operate that determine the technical level of products (standards and technical conditions), for example, in the processing area), regulatory documents characterizing the rights and responsibilities of various management links, which form the rules of behavior of the system as a whole (instructions , methods), etc. In this understanding, rationing refers to the functions of the organization of the system.

Regulation is directly linked with the functions of coordination and control. During production, the developed programs are exposed to the internal and external environment, as a result, violations of the process of their implementation occur. In the process of implementing the function of regulating the impact on the collective of people employed in production, it is carried out through the adoption of operational measures to prevent and, if not successful, then to eliminate the identified deviations and interruptions in the course of production. At the same time, the coordination of the current work of the interconnected links of production is carried out to ensure the rhythmic course of production.

The control and regulation functions in the production management process play the role of flexible tools with the help of which the production progress is continuously (in real time for each production unit) entered into the strict framework provided by the plan.

The listed functions complement and penetrate each other; in aggregate and interconnection, they form a management cycle and reflect the content of daily production management (Figure 2).

It should be noted that the functions of organization, regulation, motivation for certain production conditions are more resistant to the effects of the internal and external environment and therefore do not change for a relatively long period. The enterprise as a whole is characterized by special functions (functional subsystems) that are ahead of the specific economic content of the management system. Among them is the Production Management subsystem. The functional subdivisions of each subsystem characterize the organizational structure of enterprise management, which brings the content (functions) and the form of management into conformity. Each of the subordinate and interconnected links of the control system implements a certain part of the control process.

For the functional subsystem of production management, the management apparatus is organized at the level of the enterprise and each department, department. Since the production management subsystem is decisive in realizing the goals of the enterprise, almost all other functional subsystems are directly related to it.

In the meantime, there is no need to know about it. ”

Figure 2 - Scheme of the control cycle

For each of the main shops, divisions, four main functional subsystems can be distinguished:

1. Management of economic activities.

2. Management of technological preparation of production.

3. Operational production management.

4. Management of technical maintenance of production.

As already noted, the impact on the controlled object, ensuring the achievement of goals, is also carried out with the help of organizational, economic and social management methods.

The execution of each management decision is carried out by the management apparatus. This is the final stage of the management process, at which line managers and functional services in organizational and practical work use the above and specific management methods for each shop, department.

Bibliography

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NEFEDOV BA, SUVOROV GA

DEVELOPMENT OF PRODUCTION MANAGEMENT AND ITS BASIC PRINCIPLES AND OBJECTIVES IN AN AGRICULTURAL ENTERPRISE

Boris A. Nefedov– Doctor in Technical Sciences, Professor, Department for Management, Faculty of Economics and Management named after AV Chayanov, RSAU-MAA named after KA Timiryazev, Moscow, Russia

E-mail: banefedov@gmail.com

Gleb A. Suvorov– Graduate Student, Department for Management, Faculty of Economics and Management named after AV Chayanov, RSAU-MAA named after KA Timiryazev, Moscow, Russia

Email: gudlefr.s@gmail.com

Annotation

The article describes the history of the development of industrial management in the world and Russia, highlighted the basic concepts and stages of development of science. The importance of setting specific tasks and goals in the formation of a management system at an agricultural enterprise was noted. Also reviewed are production management subsystems.

Keywords

Management thought, production management, management subsystems, management schools, management at an agricultural enterprise, history of management development, management decision.

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