Russian manufacturing production capacity: Primary trends and structural characteristics

Abstract

This paper estimates the capacity utilization rate for Russian manufacturing. We also propose a way to build continuous production capacity time series and indicators to describe the basic characteristics of production capacity. The data come from form 1-natura-BMoftheRussianFederalStateStatisticsService.Ourfindingsonthetrends andstructuralcharacteristicsofproductioncapacityareshowntobesignificantforeconomic policy since we found that in recent years capacities utilization rate in Russian manufacturing industry has been not extremely high and that there is a strong correlation notonlybetweencapacitiesutilizationrateandinflationratebutbetweencapacitiesutilization rate and capacities commissioning intensity as well. ©2017Non-profitpartnership"VoprosyEkonomiki".HostingbyElsevierB.V.Allrights reserved.

Manufacturing enterprise management concept focused on maximum customer engagement

“…In contrast to the pushing system, there is a pulling (pulling) control system in which objects of labor are fed from the previous stage of the production process to the next only when there is a need for them [16]. With this method of organizing production, the central system does not interfere with the exchange of material flows between sections of the enterprise, does not establish current production targets for them [8].…”

“…The transition from conventional production to lean production indicates that the company has reconsidered its views on production relations within the enterprise, as well as on relations with suppliers and consumers, if necessary. Favorable conditions of the recent past -high consumer demand with a low supply of goods and services, contributed to the fact that the price of goods was set based on the costs of the enterprise for the production of products by adding often unjustified "cheating" [7][8][9].…”

Management Of Foreign Economic Relations Based On Structural Policy

“…Russia in this sense has a large production potential, land resources, natural resources and, most importantly, people on whom the future of the country depends. As Fevr (1922) Trends and structural characteristics of production capacity are particularly significant for economic policy, but in recent years, the utilization rate of production capacity in Russia (in the manufacturing industry) has not been very high (Salnikov, Galimov, Mikheeva, Gnidchenko, & Rybalka, 2017). At present, when determining the indicators of competitiveness of a region, it is customary to focus not only on the availability of efficient industries or its segments, but also on the ability and desire of local authorities to create and maintain competitive advantages in certain areas, by creating favorable conditions for regional enterprises.…”

“…At present, when determining the indicators of competitiveness of a region, it is customary to focus not only on the availability of efficient industries or its segments, but also on the ability and desire of local authorities to create and maintain competitive advantages in certain areas, by creating favorable conditions for regional enterprises. The authorities should remember and take into account in their decisions the fact that there is a strong correlation not only between the capacity utilization rate and the inflation rate, but also between the utilization rate of the capacities and the intensity of the capacity inputs (Salnikov et al, 2017).…”

“…Only due to the full capacity utilization, the growth potential of production in the manufacturing industry is estimated to be at least 6-8%. This fact should be recognized by politicians and taken into account in the issue of restructuring domestic production and foreign economic relations of the country (Salnikov et al, 2017).…”