Integrated approach to designing, management accounting and innovative improvement of operation cycle of an engineering enterprise

The analysis of the processes of forming engineering business in European countries from the XVIII century has shown that scientific ideas determined the rate of its evolution. Kondratyev’s research shows that the growth of performance and added value of products is the consequence of improving the models of production organization and technologies used in operation processes. Our purpose is to create the mathematical model implementing a continuous motivated increase of added product cost based on the organization of production with market relations, management accounting and innovation personalized activity. We use the method of designing, operating and improving an ideal equilibrium thermodynamic cycle converting energies (Carnot cycle) in creating and formulating the integrated mathematical model of an engineering enterprise operation cycle. As a result, we created the operation cycle converting manufacturing capital into monetary capital was created. The processes of forming manufacturing capital main funds and of manufacturing products are realized at constant performance but at changing entropy. The processes of forming technological costs and of selling products are isentropic. Mathematical model allows designing the parameters and the organization of production processes by transferring technological costs and product cost within technological stages. Management accounting system realizes the equilibrium of cycle processes’ parameters. The study of these scenarios has shown that for motivating the growth of product added market value, it is necessary to divide the operation cycle into basic and innovative personalized ones. Innovators’ labor payment might have four sources that are the motivation to continuously increase added value

Keywords: operation cycle converting manufacturing capital into monetary capital; basic conversion cycle; performance and entropy; manufacturing-technological system of engineering enterprise


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