Optimizing the business operations of military production facilities

Abstract

Production and service providing facilities of the Ministry of Defense and the Serbian Armed Forces are intended for production of goods and provision of specific services needed by the defense system of the Republic of Serbia. The main aim of their creation and existence is continuous support to the functions of defense as one of the state's priority tasks, and ensuring independence from external factors. Because of this role, production and service providing facilities are organized as production units applying all the principles of technology and technical procedures for specific products or services. In other words, their functioning is based on a functional model of controlling the spending of budget funds and the implementation of the principle of performance measurement, i.e. control of costs in all stages of business processes execution. Further operationalization of this model should provide accurate cost information at each stage of the business process - from the planning phase, on which the adoption of adequate and optimal business decisions depends, then the manufacturing phase, and, finally, the phase of the performance measurement. Better regulation of the system elements and their integration into the information system will create conditions for realistic and effective cost monitoring and management in the production processes of the production and service providing facilities, and the efficient spending of budget funds.

Keywords

• production and service providing facilities
• business processes
• planning
• production
• performance measurement
• costs
• cost-effectiveness
• cost price
• norm
• standard