Production Systems Continuous Improvement Modelling

Purpose: This paper focuses on the authors' contribution to modelling algorithms for key business processes, economic indicators and original mathematical model for improvement assessment. Methodology/Approach: Researching and writing the article one uses interdisciplinary knowledge (technological production processes were considered in unity with economic principles of their construction and management), a combination of technical and technological approach, formal logic and mathematical economic modelling. For justifying the scope of model parameters, it is used field research (enterprises survey) and method of expert evaluation. Findings: The research has showed the integration of theory of constraints, and lean manufacturing is possible and expedient. The observations of the model's integral values and their dynamic patterns allow for important insights about positive or negative trends in production system development taken as a whole. The model enables to reveal the trends for particular items and draw the top teams' attention to problem areas. They will be subject to further decomposing and improvement. Research Limitation/implication: The model can be treated as cross-functional. But as every enterprise has its unique production environment, it can be exposed to further adjustment to individual enterprise specific conditions. Originality/Value of paper: The indicators and mathematical model for improvement assessment proposed by authors develop and complement the existing system of knowledge about production management and can be used as a practical tool for control of the continuous improvement process in company.