Process Approach and Modelling in Organisation Competitiveness Management System

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1 Management 205, 5(4): 07-6 DOI: /j.mm Process Approach and Modellng n Organsaton Compettveness Management System Marna A. Ivankova Project and Producton Department, JSC Atomenergoproekt, Moscow, Podolskh kursantov st., Russa Abstract In ths artcle there has justfed the usefulness of the process approach and modellng n the analyss and objectve quantfcaton of organsaton and products compettveness wthn organsaton compettveness management system (OCMS). Partcular attenton s pad to the nterrelaton of busness processes and performance ndcators of the organsaton that functonng as a sngle organsatonal-economc system; dentfcaton and modellng of these nterrelatons as a functon n the development of models for quanttatve evaluaton of the organsaton and products compettveness. There have been formed the man stages of the assessment and analyss of the organsaton and products compettveness wthn the OCMS based on the process approach and modellng. Keywords Organsaton compettveness management system, Process approach, Compettveness analyss, Compettveness assessment, Modellng n compettveness assessment. Introducton In contemporary world of ntense competton condtons, emergng economc crss, dynamc markets, demand volatlty the key ssue of competton s determnaton of the market place of organsaton, retanng and ncreasng ts compettve advantage. It s not enough to qualtatvely assess the level of the organsaton and ts products compettveness n the market (the current compettveness level) for retanng ther compettve postons. In the modern dynamcal markets t s necessary to manage the process of creatng compettve advantages, havng the complete nformaton about the strengths and weaknesses of the organsaton and ts products from the pont of vew of compettveness, the causes of the current compettve poston of the organsaton. Improvement of management mechansms, n our opnon, should be based on deep market montorng, forecastng, ndustry economy, modellng economc and producton parameters of the organsaton state, the applcaton of economc mechansms for the creaton of compettve advantages of the organsaton and ts products. The relevance of ths artcle s the necessty to create organsaton compettveness management system (OCMS) able to quantfy the compettveness of products and the organsaton as organsatonal-economc system, to ensure the objectvty of such evaluaton and determnaton of ts * Correspondng author: -0505@yandex.ru (Marna A. Ivankova) Publshed onlne at Copyrght 205 Scentfc & Academc Publshng. All Rghts Reserved senstvty to changes n factors of external and nternal envronment through functonal descrpton (ncludng weght) of the mpact of all external envronment factors of the organsaton, as well as the complexty and nterconnectedness of ts busness-processes. 2. Approaches to Compettveness Management. The Methods of Analyss and Assessment of Compettveness In prevous works [-3] there were proposed conceptual approaches to the management of compettveness of the organsaton and ts products, whch n partcular are: ) for the frst tme there was gven a theoretcal nterpretaton of the concept of the organsaton compettveness management system as a man-machne organsatonal-economc system that allows managers to conscously affect the organsaton's ablty to mantan and expand sales markets through targeted actvtes for creatng compettve advantages related to the qualtatve characterstcs of products and manufacturers-compettors. The man target of these actvtes s to mprove the compettveness of products and the organsaton as a whole; 2) there were developed approaches to the creaton of a organsaton compettveness management system based on the known methods of reengneerng of busness processes of the organsaton, modellng, system approach, applcaton of automated management systems;

2 08 Marna A. Ivankova: Process Approach and Modellng n Organsaton Compettveness Management System 3) there was dentfed the need for establshng functonal nterrelatons and nterdependences between ndcators of organsaton compettveness, whch allows to determne the degree of dependence of the ntegrated compettveness of the organsaton and ts products on any prvate or generalzed ndcator of ther compettveness, to determne quanttatvely how much the compettveness of the organsaton and ts products n total wll change when any prvate or generalzed ndcator of compettveness s changed. Usng of reengneerng methods of organsaton busness processes (next: processes) referred to n clause 2, s based on the process approach used n organsaton management system for ncreasng ts management qualty and ts effectveness and compettveness [4-9]. To provde an objectve assessment of the organsaton and ts products compettveness wthn the organsaton compettveness management system there were analyzed the exstng methods of compettveness assessment and analyss. Smple and obvous way for assessng the compettveness of goods s assocated wth ts defnton as the degree of preference to competng products n the market [0]. In ths case compettveness ndcator s the market share of the exstng product or an expert determned probablty of the consumer preferrng evaluated product to market smlar products. Contemporary organsatons use qualtatve and quanttatve compettveness analyss. Qualtatve compettveness analyss s descrptve and represents a methodologcal bass for the quanttatve evaluaton of compettveness. The followng methods are basc for analyss of the compettve envronment: - structural analyss of the organsaton compettve envronment; - cost structure and added value analyss; - value chan compettors analyss; - strategc group analyss (cluster analyss). The manstream methods of the compettve envronment analyss, such as GE-McKnsey matrx, Ansoff matrx, Porter s four corners model, Porter s fve forces analyss, SWOT analyss, ect. [-5] are related to strategc analyss methods and are expert methods. They estmate ther parameters (that are drectly or ndrectly nfluencng the organsaton and ts products compettveness) usng predefned scales and n accordance wth the subjectve opnon of the experts, conductng the analyss. Obvously, the qualtatve analyss does not allow to objectvely assess the quanttatve level of the compettveness and the degree of nfluence of external and nternal envronment factors of the organsaton. Quanttatve analyss s a quanttatve assessment of the compettveness and s often carred out by the followng methods [6]: dfferental, ntegrated, mxed, desrablty functon, mult-crtera optmsaton. Note that none of these methods do not allow to determne a functonal nterdependency between the organsaton and ts products compettveness ndcators and techncal, economc, organsatonal ndcators of the organsaton, takng nto account the nterrelaton of the organsaton busness processes. Such methods are not able to objectvely assess functonal nterrelaton of these ndcators wth the organsaton s external envronment ndcators and to quanttatvely assess the mpact on the organsaton and ts products compettveness by lsted ndcators and organsaton busness processes operaton changes. That s, these methods do not allow to quanttatvely determne the changes of the value of the organsaton and ts products compettveness by quanttatve changes of the organsaton s external and nternal envronment. But wthout establshng these nterrelatons, t s mpossble to objectvely assess the senstvty of the organsaton and ts products compettveness to the changes n factors of external and nternal organsaton envronment and to make tmely constructve management decsons to optmse the compettveness, elmnatng ts «weaknesses» n the rapdly changng condtons of contemporary market economy. In addton to the above-mentoned compettve envronment analyss for formng the OCMS and the assessment of the level of the organsaton compettveness there were consdered wdely used: compettve profle analyss; fnancal analyss; scenaros development; the methods of game theory; modellng [-9]. It was determned [3], that modellng s the most approprate method for formng the OCMS and the assessment of the level of the organsaton compettveness. Ths method represents one of the most dffcult methods of the compettve envronment analyss. Modellng of compettve envronment requres knowledge of the nature of the nterrelaton between dfferent varables of the organsaton s external and nternal envronment. Ths s not always possble because the cost of obtanng such nformaton can be qute hgh. But unlke other methods, the modellng allows to take nto account all the necessary values and characterstcs that drectly and ndrectly, nsde and outsde affect the organsaton compettveness, and also to take nto account the functonal nterrelatons of the ndcators, to use the methods of probablty theory and mathematcal statstcs to descrbe the random effects. In addton, modellng allows to consder some of the features of OCMS, partcularly, changes n tme and weghtness of the foregong ndcators that nfluence the organsaton and ts products compettveness n formng the organsaton compettveness as a whole (that s, ther rankng); the nterrelatons of these parameters. The modellng allows to defne and formalse the purpose of the operaton of the OCMS and ts subsystems, ncludng the purpose of mprovng the compettveness of the organsaton and ts subsystems; to provde functonal nterdependences between subsystems and wthn them; to dentfy and manage specfc factors that characterse the

3 Management 205, 5(4): compettveness of organsaton and ts products as a whole compettve advantages. Such advantages are set of propertes of the organsaton actvty s results (products) that make them more attractve to consumers. Evaluatng the organsaton compettveness by modellng, t s necessary to provde the creaton of economc-mathematcal mechansm for determnng the compettve advantage of the organsaton, prvate, generalzed ndcators of nternal and external envronment that drectly or ndrectly affect the organsaton compettveness. Therefore, the modellng allows to assess the mpact of changes n the external and nternal envronment of the organsaton n the formaton of complex (ntegrated) ndcator of the organsaton compettveness, quanttatvely reflectng the level of ts compettveness. Usng the generated wthn OCMS ndcators t s able to assess and manage the organsaton compettveness as a whole. Assessment of compettveness ndcators allows to ntate the development of new compettve products, optmally consderng all the compettve advantages of the organsaton at all stages of ts actvtes. 3. Process Approach and Modellng n Organsaton Compettveness Management System Besdes the obvous benefts of the process approach to the management organsaton [7, 20], ts applcaton n the management of the organsaton compettveness allows, n partcular, to ensure the establshment of functonal nterrelatons and nterdependences between ndcators of compettveness of the organsaton and ts products through establshed functonal nterdependences and nterrelatons between busness processes. Ths allows to ensure the reflecton of changes n the external and nternal envronment wthn the formaton of an objectve quanttatve assessment of the compettveness of the organsaton and each knd of ts products and forecastng of ths assessment. That s, to determne the senstvty of such knd of assessment to the mentoned changes. Through the use of these features OCMS can respond tmely to negatve changes n the external and nternal organsaton envronment and prepare management proposals (ncludng prorty of nformaton) for tmely decson-makng on regulaton of compettveness. Accordng to [2, 2], organsaton compettveness management system, lke any management system, s a specal type of a system contanng two objects: the managng and the managed subsystem. Takng nto account the above and [2], as an example, a scheme s developed, whch s llustratng the nteracton of the man processes of ndustral organsaton wthn the operaton of the management system of ts compettveness and ts products (see fgure ). Source: developed by the author Fgure. Scheme of nteracton of the basc organsaton s processes

4 0 Marna A. Ivankova: Process Approach and Modellng n Organsaton Compettveness Management System The managng subsystem affects the managed subsystem by management decson makng. The managed subsystem nforms the managng subsystem about ts states (techncal, economc parameters of the organsaton actvtes, reportng), ncludng nformaton on the processng and mplementaton of any management decson nto the busness processes operaton of the organsaton. Based on ths nformaton wthn the managng subsystem there are beng produced new management decsons on regulaton of the organsaton actvtes, takng measures to ncrease ts effcency and compettveness, the preventon of negatve consequences of changes on factors of external and nternal envronment. Thus, as a result of OCMS operatons, people responsble for decson-makng (management of organsaton), usng the obtaned nformaton about the state of the managed subsystem and optons of management decsons and ther ratonale from the managng subsystem, possess the full amount of relable nformaton. Usng ths nformaton about the organsaton, ts compettveness, possble «weaknesses» of compettveness, requrng mmedate strengthenng the management can use the OCMS's recommendatons when makng ther own management decsons. The external envronment (customers) receves fnshed products from the organsaton, and t effects on the managed subsystem by dfferent condtons: poltcal, economc condtons, demand changes, supplers prces and so on. The managed subsystem can also effect tself (auto-nteracton), expressed as the changes n some of the processes actvtes under the nfluence of the changes n other processes actvtes nterdependence and mutual nfluence of the varous processes of the organsaton. The reportng processes on the organsaton actvtes and makng conclusons about the organsaton and ts product compettveness (processes 8 and 9) nclude outcome ndcators of the organsaton busness processes operaton. These processes are a knd of generalsaton of the results of the organsaton operatons, and reflect the results of the applcaton of any management decsons made wthn the operaton of the managng subsystem. The processes, Proposed n fgure, are not the only once of key processes of the ndustral organsaton. Ther lst accordng to the specfcs of the organsaton should be supplemented. To provde an objectve assessment of the organsaton and ts product compettveness, determnaton of the nterrelatons and nterdependences of compettveness ndcators t s necessary to dvde the man processes of an organsaton nto more detaled once, able to ntegrate for a general assessment. At each stage of ths separaton t s necessary to determne the compettveness of each process and ts sgnfcance (weghtness) n the formaton of ntegral assessment of the organsaton and ts product compettveness and to determne ts functonal nterdependence wthn the organsaton. The number of such dvsons depends on the depth of the analyss and evaluaton of the organsaton and ts product compettveness, the need to acheve greater or lesser accuracy of the fnal assessment, as well as the complexty of the process. As an descrbng example of the organsaton process fgure 2 shows a flowchart of a process of «Mantenance and repars support», revsed by the author, takng nto account [22], for usng wthn the organsaton compettveness management system. The descrbed process nterrelates closely wth other processes of the organsaton. Thus, the nput data for the descrbed process s: - «Development plans». Data comes from the managng subsystem of OCMS. They are formed takng nto account the avalable data on the prevous states of the process «Mantenance and repars support»; - «Budgets». Data comes from process 5 «Fnancng actvtes»; - «Resources». Data come from process «Mantenance supply» and process 2 «Plannng and support for the staff». The output data for the above process s: - «Actual data objects of mantenance and repars». Data comes, n partcular, to the managng subsystem for tmely management decsons about the need to replace obsolete equpment, downtme n repars, the number of falures; - «Plannng works mantenance and repars». Data comes to processes, 2, 5 for the tmely plannng of the supply process «Mantenance and repars support» by human, materal and fnancal resources, planned works; - «Requests for resources». Data comes, n partcular, to process «Mantenance supply» and process 2 «Plannng and support for the staff» to ensure tmely executon of planned works for the mantenance and repars by human and materal resources. The results of the operaton of the process «Mantenance and repars support», modfed for use n OCMS, n addton to tradtonal forms of reportng (techncal, plannng and other) are: - the values of the compettveness ndcators of the process and the value of ts weghtness n the formaton of the organsaton and ts product - the analytcal reports that nclude nformaton about the changes n the process compettveness, comparng performance ndcators wth compettors (or targets values), revealng ts «weaknesses», the conclusons to develop optons for management solutons to mprove compettveness and retan compettve advantages n the operaton of ths process.

5 Management 205, 5(4): 07-6 Source: developed by the author takng nto account [22] Fgure 2. Process «Mantenance and repars support» Lsted output data of a process s the nput data for the managng subsystem. Ths data shows the state of the process «Mantenance and repars support» to the managng subsystem for each accountng perod or upon request. Such nformaton s crucal for the development and acceptance of management decsons on the adjustment of ths process operaton, dentfcaton of "weaknesses" n ts compettveness, the acceptance of measures to mprove the organsaton and ts products compettveness n mantenance and repars. As compettveness ndcators of the process «Mantenance and repars support» can be: - the productvty of mantenance and repars personnel; - the amount of downtme of equpment, repar objects; - the wearng-out ndcator of the varous knds or groups of fxed assets; - the share of automated and manual labor n the mantenance and repars; - the materals consumpton of ongong repars; - the unt cost of repars by equpment knds, repar objects; - the unt cost of servce per unt of tme of equpment operaton; - and others. Accordng to [3] the nterrelaton between prvate ndcators of the organsaton compettveness can be shown by the example of evaluatng the degree of the equpment deteroraton. Wthn the producton actvtes of the organsaton there should be provded the opportunty for equpment replacement because of moral and/or physcal deteroraton. The prvate wearng-out ndcator of the varous knds or groups of fxed assets (ncludng equpment): Id = Cw / Cn, () where C w cost of fxed assets wearng-out; C n ntal cost of all or separate knds or groups of fxed assets. Ths coeffcent allows us to determne the share of wearng-out equpment of the organsaton at the moment. The share of newly ntroduced equpment s calculated by the formula: Inew = Cnew / Cend, (2)

6 2 Marna A. Ivankova: Process Approach and Modellng n Organsaton Compettveness Management System where I new prvate ndcator of fxed assets renewal; C new cost of the newly added fxed assets for a certan perod; C end cost of fxed assets at the end of the same perod year. The dsposal share of fxed assets allows you to calculate the prvate dsposal ndcator: I = C / C, (3) ds ds beg where C ds cost of fxed assets dsposal durng a certan perod; C beg cost of fxed assets at the begnnng of the same perod. The products compettveness coeffcent of the separate characterstc, descrbed by the correspondng prvate ndcator, can be calculated by the formula: K = s / s0, (4) where s value of the -th analyzed product prvate ndcator of the prvate ndcators set (s S); s 0 value of the -th basc prvate ndcator of the product sample from ts prvate ndcators set (s 0 S 0 ); K compettveness coeffcent for the -th prvate ndcator of the product. The sample here s the compettor product or other sample product wth whch the organsaton product s compared for assessng the level of compettveness. Note, when calculatng, for example, the compettveness coeffcent n cost or prce the dependence s reverse: K = s0 / s. (5) From formulas (4) and (5) one should select that, accordng to whch the growth rate K corresponds to an ncrease compettveness. For example, f the cost of buyng the materal s below than the cost of a compettor for the same materal purchase, then accordng to ths ndcator the product s more compettve, and that should be reflected n the formula as an nverse dependence of the parameters of (5). Generalzed ndcators can be calculated by the followng formula: where K compettveness coeffcent for the -th prvate ndcator (costs for materals and components, nflaton, wages); n number of prvate ndcators; α rato reflectng the weght (weghtng coeffcent) of that prvate ndcator n assessng the product compettveness of usng the generalzed ndcator. The sgnfcance (weghtness) of prvate ndcator, as a rule, s determned by economc laws and descrbed by n Q = Kα, (6) mathematcal dependences, as well as by an expert and takes values 0 α. Moreover, when calculatng each of the generalzed ndcator for weghtng coeffcents of prvate ndcators, ncluded n ths generalzed ndcator, the condton should be observed: α =. (7) Based on formula (7) the level of the product compettveness can be calculated: K I = N N Qα, (8) α where Q generalzed ndcator of the product α weghtng coeffcent of the generalzed ndcator of the product N number of sgnfcant generalzed ndcators of the product compettveness. Obvously, the purpose of any organsaton s to acheve such values of generalzed ndcators of the product compettveness, whch satsfy the condton K max. (9) I The above mathematcal dependences of the defnton of the product compettveness allow to systematcally take nto account the effect of all prvate and generalzed ndcators for achevng the purposes of mprovng the product compettveness: K > 0, ( =,..., N) j ( ) Q = Kα, ( =,..., N2) K I M Qα = M max, α (0) where K compettveness coeffcent for the -th prvate ndcator; N number of prvate ndcators of the product Q the -th generalzed ndcator of the product N 2 number of generalzed ndcators of the product α weghtng coeffcent of the product compettveness coeffcent К ; j ( ) α = for any generalzed ndcator Q ;

7 Management 205, 5(4): j() number of prvate ndcators of the product compettveness n the -th generalzed ndcator; K I ntegrated ndcator of the product М number of generalzed ndcators of the product compettveness n the ntegrated ndcator; M α = for ntegrated ndcator K I. The compettveness coeffcent of the organsaton of the separate characterstcs descrbed by the correspondng prvate ndcator can be calculated by the formula: H = u / u0, () where u value of the -th analyzed organsaton prvate ndcator of the prvate ndcators set (u U); u 0 value of the -th basc prvate ndcator of the organsaton sample from ts prvate ndcators set (u 0 U 0 ); H compettveness coeffcent for the -th prvate ndcator of the organsaton. Note, when calculatng, for example, the compettveness ndcator of the laborousness the dependence s reverse, because, ceters parbus, reducton n the laborousness leads to ncreased compettveness: H = u0 / u. (2) From formulas () and (2) one should select that, accordng to whch the growth rate H corresponds to an ncrease n compettveness. For example, f the cost of buyng the materal s below than the cost of compettor for the same materal purchase, then accordng to ths ndcator the organsaton more compettve, and that should be reflected n the formula as an nverse dependence of the parameters of (2). As generalzed ndcators consst of prvate, ndcators wthn the dependences of varous types of prvate ndcators the dependences between the correspondng generalzed ndcators of the organsaton compettveness are takng nto account. To provde an objectve assessment of the organsaton compettveness the generalzed ndcators should be taken nto account n the form of a system of functonal dependences of prvate ndcators presented n the general form: (,..., N ) f = f u, u, FU ( ) =... fw= fw( uw,,..., uwn, ), w (3) where f the -th functon, descrbed nterdependency N of prvate ndcators of the organsaton compettveness (u,,,u,n ) for w and u, U,,u,N U; U set of all prvate ndcators of the organsaton w number of functonal dependences f n the system F(U). The generalzed ndcators of the organsaton compettveness are formed by analogy wth generalzed ndcators of product compettveness. Note, the number of generalzed ndcators should be optmal for determnng the organsaton compettveness. For the organsaton the system of generalzed ndcators of compettveness has a more complex herarchy due to the complexty of organsatonal system, ts processes, nterrelatons and nterdependences of some ndcators wth others. As a result there s a herarchy of generalzed ndcators, ncludng ndcators of the frst level of generalzaton, whch consst of prvate ndcators of the organsaton compettveness, takng nto account ther weght n ths generalzed ndcator: M, j R, j = H β0,, (4) where R,j the j-th generalzed compettveness ndcator of the generalzed frst level; M,j - number of prvate ndcators of the organsaton compettveness, partcpatng ndcator R,j ; β 0, weghtng coeffcent of the -th prvate ndcator, partcpatng generalzed ndcator R,j on the generalzaton frst level ( M,j ). And the condton should be observed: M. j β0, =. (5) For any generalzaton p-th level (p>) generalzed ndcators consst of generalzed ndcators of the organsaton compettveness of prevous (p-)-th generalzaton level, takng nto account ther weght n ths generalzed ndcator: M p, j Rp, j = Rp, β p,, (6) where R p,j the j-th generalzed ndcator of the organsaton compettveness of the generalzaton p-th level; M p,j number of generalzed ndcators of the prevous level Rp,, partcpatng ndcator R p,j ; β p-, weghtng coeffcent of the generalzed ndcator R p-,. And the condton should be observed: M p, j β p, =. (7) At the top level of the generalzed ndcators herarchy (P) of the organsaton compettveness there are generalzed ndcators of the organsaton compettveness n all major areas of organsaton actvtes of ts busness processes

8 4 Marna A. Ivankova: Process Approach and Modellng n Organsaton Compettveness Management System (see fgure ): mantenance supply, plannng and support for the stuff, fnancng actvtes, producton, sales of products and etc. A number of these ndcators depends on the complexty of the producton actvtes of the organsaton. Thus, for each busness process of the organsaton, usng the formula (6), there should be formed a general ndcator of compettveness, quanttatvely reflectng the mpact of prvate and generalzed ndcators, takng nto account ther weght, affectng the organsaton compettveness n ths busness process. The operaton of busness processes of the organsaton has a varety effect on ts compettve advantages and overall compettveness. Producton actvtes of the producton organsaton affect ts compettveness n a greater degree than, for example, fnancal actvtes. Prorty of busness processes n the formaton of the overall organsaton compettveness should be consdered when determnng the ntegrated ndcator of the organsaton compettveness, that summarzed aggregated ndcators of the herarchy upper level, takng nto account ther weghtness: M P RP, βp, H I, орг =, (8) M P β P, where R P, generalzed ndcator of the organsaton compettveness for the -th busness process; β P, weghtng coeffcent of the ndcator R P,, represents the compettveness share, formed on ths busness process of the organsaton; M P number of generalzed ndcators of compettveness of the herarchy hghest level (the man busness processes of the organsaton). For the organsaton management, effectve varaton of the prevously defned generalzed and prvate ndcators of compettveness and ther weght the ntegrated ndcator of the organsaton compettveness should ncrease: HI,орг max. (9) Based on the foregong there may be composed the followng mathematcal model for determnng the organsaton compettveness, takng nto account the optmalty of generalzed ndcators of the organsaton compettveness and the Interrelatons of prvate and generalzed ndcators of the organsaton compettveness ( ) f = f u,,..., un, ( =,..., I ) f H > 0, ( 2 2 =,..., I2) M, j R, j = Hβ0, ( j =,..., J), (20) M p, j p Rp, j = R,,, ( = 2,..., ; =,..., ) p p β p p P jp JP H I, орг M P RP, βp, = max. M P β P, where f the -th functon, descrbng nterdependency N of prvate ndcators of the organsaton compettveness ( u ),,..., u, N and u, U,,u,N U; U set of all prvate ndcators of the organsaton I f number of functonal nterdependences; H compettveness coeffcent of the 2 -th 2 organsaton prvate ndcator; I 2 number of coeffcents H ; R, j the j -th generalzed ndcator of compettveness of the frst level of generalzaton; M, j number of prvate ndcators of the organsaton J number of ndcators R, j on the frst level of generalzaton; β 0, weghtng coeffcent of the -th prvate ndcator on the frst level of generalzaton ( M, j ). And the condton should be observed: M, j β0, = ; (2) R p,jp the j p -th generalzed ndcator of the organsaton compettveness on the p-th level of generalzaton; M p,jp number of generalzed ndcators of the prevous level Rp, j, formng the ndcator p R p, j ; p J p number of ndcators R p, j on the p-th level of p generalzaton; P number of the generalzaton levels; β p-, weghtng coeffcent of the generalzed ndcator R p-,. And the condton should be observed: M p, jp β p, 2 = ; (22) R P, generalzed ndcator of the organsaton compettveness for the -th busness processes; β P, weghtng coeffcent of the ndcator R P,, represents the compettveness share, formed on ths busness process of the organsaton; M P number of generalzed ndcators of

9 Management 205, 5(4): compettveness of the herarchy hghest level (the man busness processes of the organsaton); H I,орг ntegrated ndcator of the organsaton compettveness. 4. The Stages of the Compettveness Assessment and Analyss Based on the above, there can be formulated the man stages of the assessment and analyss of the organsaton and ts products compettveness wthn the OCMS on the bass of the process approach and the modellng:. the defnton of all key organsaton processes and ther components (dependng on the requred accuracy assessment); 2. dentfcaton of nterrelatons and nterdependences between exstng processes on the bass of analytcal, techncal, fnancal and other organsaton reportng, as well as usng statstcal methods or by experts; 3. formalzaton dentfed n clause 2 of the nterrelatons and nterdependences between the exstng organsaton processes n the form of a mathematcal functonal dependences by modelng; 4. formaton of prvate and generalzed ndcators of the organsaton and ts products 5. assessment of the level of the organsaton and ts products compettveness as an ntegrated ndcator of the organsaton and ntegrated ndcators of each type of products; 6. realzaton of the senstvty analyss of the compettveness,.e. the senstvty analyss of the evaluated n p.5 ndcators of the organsaton and ts products compettveness to changes n any organsaton processes ndcators (through prevously defned nterrelatons and nterdependences between the organsaton processes); 7. formaton of management decsons (based on the results of the events of clause 4 for optmzng the organsaton and ts products compettveness and for achevng the optmal values of the compettveness ndcators. 5. Conclusons The obtaned estmates of prvate and generalzed ndcators of the organsaton and ts products compettveness, analyss of ther senstvty to changes n varous techncal and economc ndcators of dfferent organsaton processes, establshng the sgnfcance of these changes for separate processes and for the organsaton as a whole allow to establsh what organsaton processes to a greater or lesser degree affect the results of the assessment of the organsaton and ts products compettveness. Consequently ths analyss reveals how the changes of any organsaton process affect ts compettveness. Ths approach gves a more exact and objectve fnal assessment of the organsaton and ts products compettveness. Gven n the artcle mathematcal functonal descrpton of the nterrelaton between prvate and generalzed compettveness ndcators shows quanttatvely how the change of any ndcator of the process affects the ndcators of another process and how t affects the organsaton and ts products compettveness. And such functonal dependences allow to determne how sgnfcant ths changng for the organsaton and ts products compettveness. Ths, n turn, allows to make tmely management decsons for achevng the requred values for the compettveness ndcators, to dentfy and promptly resolve the «weaknesses» of the organsaton and ts products compettveness, to take tmely decsons for optmzaton of the organsaton actvtes. REFERENCES [] Ivankova M.A., Basc concept of the buldng organsaton compettveness management system. Engneerng journal. Gude 5, [2] Ivankova M.A., Development of the mathematcal model of the organsaton compettveness management system. Integral 5, [3] Ivankova M.A., PhD thess «Conceptual demands for management to compettve advantages n organsatons nto the development of the Russan machnery based on the experence of JSC Novo-Vyatka». [4] ISO 9000, Introducton and Support Package: Gudance on the Concept and Use of the Process Approach for management systems [Onlne]. Avalable: oach_for_management_systems.pdf. [5] ISO, 204. ISO s process approach [Onlne]. Avalable: [6] Telnov Y.F., Reengneerng of busness processes. Msc: Fnance and statstcs. [7] Cheremnyh O.S., Cheremnyh S.V., Strategc corporate reengneerng: process-cost approach to busness management. Tranng manual. Msc: Fnance and statstcs. [8] Jacobson I., Ercsson M., Jacobson A., 995. The object advantage: busness process reengneerng wth object technology // ACM Press. Addson-Wesley Publshng. [9] Scheer A.-W., 995. Busness process engneerng: reference models for ndustral enterprses. [0] Pechyonkn А., Fomn V., On the assessment of the goods and manufacturers compettveness. Marketng 2,

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