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Assessing the Efficiency of Pilot Production in Industry
[К Вопросу Об Оценке Эффективности Опытного Производства В Промышленности]

Author

Listed:
  • Yuliya L. Maslennikova

    (Bauman Moscow State Technical University)

  • Alla E. Brom

    (Bauman Moscow State Technical University)

Abstract

The paper is devoted to outlining approaches to assessing the efficiency of pilot production. The authors take production cycle time as a measure of production process efficiency. The paper considers the main reserves and areas of the production cycle reduction; it gives the ways of estimating the economic effect and efficiency of shortening the duration of the production cycle at large-scale and mass productions; the necessity of using other evaluation methods for pilot-scale production is substantiated, which is connected with its specifics. The article presents approaches to estimation which take into account factors of accelerated development of production and reduction of defects. Due to the fact that pilot production is characterized by binding of a large volume of floating assets in unfinished production, the approach to estimation of the effect of release of floating assets under the conditions of reduction of production cycle is proposed. Finally, the potential advantages and disadvantages of maintaining a high inventory level in pilot production are described.

Suggested Citation

  • Yuliya L. Maslennikova & Alla E. Brom, 2023. "Assessing the Efficiency of Pilot Production in Industry [К Вопросу Об Оценке Эффективности Опытного Производства В Промышленности]," Russian Economic Development, Gaidar Institute for Economic Policy, issue 3, pages 14-20, March.
  • Handle: RePEc:gai:recdev:r2319
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    More about this item

    Keywords

    pilot production; economic effects; economic efficiencies; production cycle; work in progress; working capital;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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