COMPUTERS TO IMPROVE SOVIET INDUSTRIAL MANAGEMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01003A002300090001-6
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 13
• Document Creation Date: December 9, 2016
• Document Release Date: February 27, 2001
• Sequence Number: 1
• Publication Date: June 1, 1965
• Content Type: BRIEF

Approved For Release 2001/03/22G 9 p Tlgk 3AO02300090001-6
INTELLIGENCE BRIEF
TO IMPROVE SOVIET INDUSTRIAL' MANAGEMENT
Office of Research and Reports
DIRECTORATE OF INTELLIGENCE
pproved For Release 2001/03/22ODTFi D'DA1I03AO0230009
 Approved For Release 2001/03/22 : CIA-RDP79T01003A002300090001-6
WARNING
This material contains information affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title 18, USC, Secs. 793 and 794, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
Approved For Release 2001/03/22 : CIA-RDP79TO1003AO02300090001-6
 Approved For Release 101 3f%21~DC A- DTP 9' ~+003A002300090001-6
COMPUTERS TO IMPROVE SOVIET INDUSTRIAL MANAGEMENT
The announcement by V. D. Lebedev, Deputy Chairman of the USSR
Sovnarkhoz, that the USSR plans to install "automated systems of pro-
duction control at 119 plants and combines during 1.965 and 1966" is
misleading and refers not to automated process control but to Soviet in-
tentions to modernize management techniques at the enterprise level..
This is the most recent evidence of Soviet plans to use computers to
mechanize the handling of plant data in order to save clerical. labor and
also to provide management with the information needed to improve
operating efficiency. Computers at the enterprise level also offer a
means of obtaining the volume of timely data required at the regional
and national level when, and indeed if, the USSR is to attempt to auto-
mate a central system for economic planning and control.
1. Role of Computers at Enterprises
The USSR has embraced "computerization and automation" as one
solution to the problems of the slowing rate of growth of industry and
the increasing complexity of the planning process. To this end a
grandiose long-range plan has been developed to establish a three-level
computer network for the control of the national economy, The plan also
includes more modest provisions for the immediate installation at the
enterprise level of computers, an essential prerequisite to the efficient
development of a nationally integrated data-handling system. Large
gains in operating efficiency at the plant level can, in theory, be made
by leap-frogging from present primitive and labor-intensive methods
to the use of computers to process payrolls and reports on production,
material consumption, and labor utilization as well as to control inven-
tories and production schedules. The extent to which these gains may
be realized, however, depends on the solution of a number of practical
problems, symptoms of which have already appeared in the Soviet litera-
ture, such as excessive maintenance required by tube-type computers
presently in use in the USSR, insufficient attention to the organization
of a maintenance and repair system, lags in the development of peripheral.
equipment, and shortages of trained programmers. Moreover, Soviet
managers have traditionally been reluctant to abandon old methods even
when new equipment has been made available.
These possibilities are illustrated by the findings of the Collegium
of the USSR Sovnarkhoz, which met on 26 August 1964 to discuss the
problem of the introduction of computing equipment and quantitative
economic methods in industrial control. This body concluded that major
Approved For Release 2~Of103l12D diiA 6P"TT 1003A002300090001-6
 Approved For Release SOD?iC 7:fZ't -Rbt791T-( 1,03A002300090001-6
attention should be given to "the comprehensive mechanization of engi-
neering and administrative labor, including engineering and design cal-
culations, norm setting, planning, material and technical supply, eco-
nomic information, accounting, and analysis of production activity, etc. "
In this context the decision to install computers at 119 plants and com-
bines seems a logical development. Moreover, it is clear from this
statement and other Soviet pronouncements that these computers are
intended for the solution of management problems and are not to be Used
directly in controlling manufacturing processes.
Computers installed at the enterprise level for a fairly modest Out-
lay in equipment and personnel. have the capability to feed into regional
and national economic planning and control channels the type of accurate,
comprehensive, and timely data required for the carrying out of long-
range plans to integrate more fully the operation of the economy as a
whole.
2. Extent of Program to Computerize Industry
Although the installation of computers at 119 enterprises appears to
be a major undertaking, many of the firms included in this number either
already have computers installed for administration and engineering
tasks or have been planning to install them for some time. For example,
the Moscow Motor Vehicle Plant, the Gor'kiy Motor Vehicle Plant, and
the Leningrad Metallurgical Plant already have computer installations,
and the Yaroslavl' Diesel Engine Plant has been scheduled to receive a
computer since 1962. Thus a reasonable interpretation of the Lebedev
announcement might be that by 1966, 11.9 enterprises in the USSR will
have computers to assist "production control operations. " It is estimated
that at present about 40 enterprises have computers installed, and about
45 more will receive computers shortly. Thus only 30 to 35 enterprises
out of the total of 119 would be newly scheduled to install computers in
the next year and a half. The addition of 30 to 35 new installations, how-
ever, will represent a substantial. increase in the number of major enter-
prises that are equipped with computers,
3. Shortage of Computers
Before 1963, computers were used on only a limited scale in indus-
trial enterprises, Perhaps the primary reason for the slowness in
introducing computing equipment into industry has been the extreme
shortage of computers and the low priority accorded to commercial
applications. In 1960, only 5 of the estimated 285 digital computers
produced in the USSR were installed in industrial enterprises. The 40
computers that Soviet enterprises were operating in 1964 is a very low
number when compared with the more than 5, 000 digital computers now
operat.~r;g in US industrial establishments
Approved For Release 2001/03/22:2CtA-RDP79T01003A002300090001-6
C-O-N-F-I-D-E-N T-I-A-L
 Approved For Release 2601703122 IC1AJZDP7l9TO OO3A002300090001-6
1. Bakinski rabochiy, Baku, 13 Mar 65, U.
2. FDD. No 5974, Cybernetics Research and Development
in the Soviet Bloc (19), 5 Oct 64, p. 24-25.. C.
3. Control Engineering Magazine, Apr 65.. U.
Analyst:
25X1A Coord:
25X1A
25X1A
Approved For Release2IM3122 r)Gtk-RDjP719.JOIQ03A002300090001-6
 CONFIDENTIAL
Approved For Release 2001/03/22 : CIA-RDP79T01003A002300090001-6
Approved For Release 2001/03/22 : CIA-RDP79T01003A002300090001-6
CONFIDENTIAL
 Analyst: K/J Ji
(Project 24. 5254)
.Approved For Release 2001/03/22 : CIA-RDP79TO1003AO02300090001-6
CONTROL RECORD FOR SUPPLEMENTAL DISTRIBUTION 25X1A
SERIES NUMBER
CIA/RR CB 65-36
CLASSIFICATION OF REPORT
Confidential
DISTRIBUTION TO RC
50
DATE OF DOCUMENT
June 1965
NUMBER OF COPIES
280
NUMBER IN RC
COPY
RECIPIENT
DATE
NO. (S)
25X1A
SENT
RETURNED
161 -220
279-280 Rec'd in St/P/C
28 June 65
161
St/P
29 Jun 65
162
163
OCR
CGS/HR/Ops
11
i &.5r
164
165-169
170
i
171
25X1C
172-174
//
175
176
177
r
178
179
180-182
~?
' '~
183-220
,279-280 Filed in St/P/C
29 J uja 65
/
a 279 C'~
ez
V /
3 Lam-
1 1 29-1+ - ik r` o
6
1
A
roved For Release 2001/03/22 CIA-RDP79T010
3A0023000900
1-6
 cop p
NO. (S
roved For Release 2QQ1dQ 22 : CIA-RDP79TO10Q
3A002300090001-6
Approved For Release 2001/03/22 : CIA-RDP79TO1003AO02300090001-6
 ,'L
Approved For Release 2001/03/22 : CIA-RDP79TO1003AO02300090001-6
St/AIDS Diotribution of Current Support Brief No. 65-36, Computers
to Improve Soviet Industrial Management --- June 1985 Moni'Mentiat)
Copy No. Recipient
I
2
3
4
7-a
9- 14
15
16-20
21 - 27
2#1-34
O/DDI, Room 7E32, Hq.
O/DDI, 25X1 A
AD/RR
DAD/RR
SA/RR
Ch/E
ONE
St/Cs
St/PR
D/A (1 each branch)
D/ T (1 each branch)
DIR (1 each branch)
MRA
36 - 40 D/P (1 each branch)
41 - 46 D/F (1 each branch)
47 St/PS
43 - 53 D/I (1 each branch)
54 - 55 D/GG
56- 57 D/GC
58 D/GC/X
59 - 64 RID/SS/DS, Unit 4, Room 184004, Hq,
65 St/P/A
66 St/FM
67 Analyst/Branch
68 GR/CR
69 ER/CR
70 .r I13 /SR/Cit., Room 1G27, Hq.
71 Library/CR
72 IPI/CR
73
74 Chief, OCR/?DU
75 CD/O?
76 OCI/SA/R. Room 5G19, Hq.
77 DDI/CGS, Room 7GOO, Hq.
78 - 79 DDI/CGS/HR, Room 7GOO, Hq.
e DDI/RS. Room 4G39, Hq.
Approved For Release 2000
P7 T~1a0R
dawagra ing 2n
-.E
nesiac;;ifioatfon
25X1A
002300090001-6
 Approved For Release 2001/03/
25X1A
CM No.
81 -
84
85
86-8?
88
89
90 - 98
99, a7/-f7$
100 - 101
102 - 113
OSI
CBI
DD/ &T/SPIN T
T01003AO02300090001-6
Rec ,Tien
25X1A
OTR/IS/IP, Room 532, 1000 Globe I - OTR/SIC )
NPIC/CSD/REF, Room 15518,
NSAL, Room 3W 136, Ft. Meade (via GB31, Hq. )i
OCI Internal (via SDS/DD/OCR)
NSA (via GB31, Hq.)
National Indications Center, Room 1E82I, Pentagon
State, INR Communications Center, Room 6527, State
Dept. Bldg.
USIA, IR /A, Room 1002, 1750 Pennsylvania Avenue, N. '. ,
Attn: Warren Phelps
Defense Intelligence Agency, DIAAG-3, A Building,
Arlington Hall Station
St/P/C/RR, Room 4F41, Hq.
Records Center
114 - 115
116- 160
7,161 - 220
221 - 270
Approved For Release 2001/03/22 : CIA-RDP79TO1003AO02300090001-6
 Approved For Releas001/0'ff )KffOL7?TO1 02300090001-6
6 July 1965
MEMORANDUM FOR: Chief, Dissemination Control Branch, DD/CR
FROM Chief, Publications Staff, ORR
SUBJECT Transmittal of Material
It is requested that the attached copies of CIA/RR C$ 65-36,
Computers to drove Soviet Industrial Managements June 1965,
Confidential, be forwarded as fo?Uovsr
State, INR Communications Center,
Room 6527, State Dept. Bldg.
Suggested distribution for
Embassies in Berlin, Moscow,,
Bonn, and London
25X1A
Acting
(ha diks5m!nw on , ?j,iiH.iyrA ~~;
this metmorandum has boor #0f18PjWOr t
e3'
Attachments:
Copies I81 #187 of CB 65-36
cc CC/RB
Approved For Release 2001/03/22 :
xrfilfR~~a,Aw
1003A002300090001-6
 CONFIDENTIAL
i 536
raved Ear5RWease 2001/03/22 : tl PtAT61*0 6
Title" Computers to Improve Soviet Industrial Management -- June 1965
(CONFIDENTIAL)
Responsible Analyst and Branch R/EE
RECOMMENDED DISTRIBUTION TO STATE POSTS
Berlin, Germany
Bucharest, Romania
Budapest, Hungary
'Moscow, USSR
Prague, Czechoslovakia
Sofia, Bulgaria
Warsaw, Poland
Europe
Belgrade, Yugoslavia
Bern, Switzerland
44hn, Germany
Brussels, Belgium
Copenhagen, Denmark
Geneva, Switzerland
Helsinki, Finland
The Hague, Netherlands
Lisbon, Portugal
don, England
Luxembourg, Luxembourg
Madrid, Spain"
Oslo, Norway
Paris, France
Rome, Italy
Stockholm, Sweden
Vienna, Austria
Wellington, New Zealand
Manila, Philippines
Canberra, Australia
Melbourne, Australia
Bangkok, Thailand
Djakarta, Indonesia
Hong Kong
Rangoon, Burma
Kuala Lumpur, Malaya
Saigon, Vietnam
Seoul, Korea
Singapore, British Malaya
Taipei, Formosa
Tokyo, Japan
Vientiane, Laos
1*hf'lot~ P- - ,
Colombo, Ceylon
Near East & South Asia
Ankara, Turkey
Athens, Greece
Cairo, Egypt
Damascus, Syria
Kabul, Afghanistan
Karachi, Pakistan
New Delhi, India
Nicosia, Cyprus
Tehran, Iran
Baghdad, Iraq
Tel Aviv, Israel
Beirut, Lebanon
Amman, Jordon
Jidda, Saudi Arabia
Ottawa, Canada
Approved For Release 2001/03/22 : CIA-RDP79
'' .
FIDE TIA
25X1A
Mexico
Guatemala
Panama
Brazillia, Brazil
Buenos Aires, Argentina
Bogota, Colombia
Santiago, Chile
La Paz, Bolivia
Montevideo, Uruguay
Caracas, Venezuela
Yaounde, Cameroun
Leopoldville, Congo
Addis Ababa, Ethopia
Accra, Ghana
Abidjan, Ivory Coast
Nairobi, Kenya
Monrovia, Liberia
Tripoli, Libya
Rabat, Morocco
Lagos, Nigeria
Mogadiscio, Somal
Khartoum, Sudan
Tunis, Tunisia
Pretoria, South Africa
Algiers, Algeria
Cotonou, Dahomey
Dakar, Senegal
Bamako, Mali
Iwo tqlaa%
decl . i 1cetiun
10090001-6
 RECORD OF REVIEW OF ORR PUBLICATIONS FOR
SECURITY/SANITIZATION APPROVAL
SUBJECT
AN LY
G
/)
6,S
EXTENSION
e
SECURITY REVIEW
SANITIZING INSTRUCTIONS
ITEM
DATE
I N I T I
A L S
RE OVE
UNEDITED DRAFT
25X1 A
EDITED DRAFT
DELETE
SUBSTITUTE
25X1 C
REMARKS
25X1 C
rovea ror Keiease-
12864 235'~pp
GROUP I
S
Ezduded from automatic
downgrading and declassification