JPRS ID: 10247 USSR REPORT CONSTRUCTION AND EQUIPMENT

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• Sequence Number: 16
• Content Type: REPORTS

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- JPRS L/ 1 Q247
1 ~ January 1982
USSR Re ort
~
_ CONST~UCTION AND EQUIPMENT
(FOUO 1 /82)
Fg~~ FOREIGN BROADCAST INFORMATION SERVICE
~OR OFFICIAL USE ONL
i' ~
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JPRS L/10247
11 January 1982
~ USSF REPORT
- CONTRUCTION AND EDUIPMENT
, (FOUO 1/82)
CONTENTS
CONSTRUCTION
Book Excerpts: Construction Taska of llth Five-Year Plan
(I~ NOVYM RUBEZHAM V STROiTEL'STVE (ITdGI DFSYATOY I
ZADACHY ODINNADTSATOY PYATILETKI V SVETE RESHENIY
XXVI S'YEZDA KPSS), 1981) 1
CONSTRUCTION MACHINERY
- Principl.es for Revamping Machinery-Overhaul System Postulated
(A. Nemchinskiy; VOPROSY EKONOMIKI, Sep 81) 8
METALWORKING ~QUIPMENT .
~ Ma.chinebuilding Fqsipment Repair Centralization Effectiveness
Substantiated
- (T. Ben', Yu. Kostin; EKONOMIKA SOVETSKOY UKRAINY, Oct 81). 20
Optimizing Effectiveness of Machinery and Equipment
Overhaul Schedule~
- (M. 11'yenchenko; EKONOMIKA SOVETSKOY UKRAINY, Oct 81) 28
Improving Metalworking-Equipment Inventory Structure
in Machine Building
~ (STAIVKI I INSTRUMENT, Aug 81) 34
_ a _ [III - USSR - 36a FOUO]
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CON~~RUCTION
BOOk EXCERPTS: CONSTRiJCT'ION TaSKS OF lith FIVE-YEAR PLAN
Moscow h NOVYM RUI3EZHAM V 5TROITEL'5TVE (ITOGI DESYATOY I ZADACHI ODINNADT~ATb7
PYATILETKI V SVETE RESHENIY XXVI S"YEZD~A ~PSS) in Russian 1981 (signed to press 29
Oct 81) pp i, 9-19, 64
[Annoi,s~:::~n, i;able of contents and one chapter of the book, "To New Fronti~rs in
Construction (Res~:~lts of ~he lOth and Tasks of the lith Five-Year Plan in Light of
the llecisions of the 26th CPSU Congress)" by Deputy Chair,~an of USSR Gosstroy Ivan
- Ivanovich Ishchenko, candidate of engineering scienaes, RSFSR Distinguished Build-
er and USSR State Prize wir.ner, Znaniye, 25,240 copies, 64 pages]
[Text] Raising the effectiveness and the technical level is one of the main tasks
set for the builders by the 26th CPSU Congress during the ilth Five-Year Plan. The
brochure examines the ~ath of further development of the industrialization of con-
struction--improvement of design solutions, expansion of the use of progressive
str.ucture and materials, and an incrPase in the mechanization of operations. Much
attet~tion has been given to reducing the material and labor resources used and to
improving technology, organizatian and management in construction.
The brochure is intended for engineers and technicians of design and cons~ruction
organizations and construction-industry enterprises, as well as for lecturers and
propagandists.
Table of Contents Page
Introduction 3
Itesull;s of the lOth I'ive-Year Plan . 5
'r.-'.
Tasks for Capital Construction lluring the 11Lh F~ive-Year Plan 9
Techriical Progress in llesigri 2U
~tret~gi;hening the Industrialization Base for Construction 28
The Improvement of Technology, 0'rganization and Control in Construction..... 5'L
' I3ibliography 63
Tasks fur Capital Construction During the 11th Five-Year Plan
"The Main Directions far Social and r,conomic Development of the USSR's National
Economy During 1981-1985 and lluring the Period up to 1990," which was adopted by
the 26th CPSU Congress, set the total amount of capital investment that will be
aimed at developing and strengthening the country'G economy during the 11th Five-
Year Plan. This capital investment is aimed at speeding up the deve].opment of all
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types of transport and communications, at assimilating the natural resources of.r!ew
regions, and at regularizing the siting of productive forces, and also at carrying
out the program for further raising the material and.cultural living conditions of
the Soviet people,for imp~oving the sanitary conditions of the environment, and '
for building ;:ousi:~g and all uther facilities of the nonproduction sphere.
- During the lith Five-Year Plan capital investment will.rise by 12-15 percent. Con-
- struction and installing work will be 350 billion rubles higher, c~hich is much
more than during the lOth Five-Year Plar,:
A most important task of capital construction is that of using capital investment
_ effectively--improving fixed capital qualitatively, introducing production capacity
into operation quickly, and speeding up the rebuilding of existing ~.nterprises.
The reconstruction and reec~uipping of existing enterprises is one of the main ways
to further the progres~ of industry during the iith Five-Year Plan. The "Main Di-
rec:tions" emphasize: "Direct capital investment primarily to the reconstruction
and technical reequipping of enterprises and to completing previously started con-
struction projects. Start the erection of new enterpr~ses and the expansion of ex-
ist~ng ones in cases where the national economy's requirements for a given type of
product cannot be met by improvir~g the use of r:oduction eapacity, taking ~t?e recon-
struction and reequipping thereof intu account.
- This trend was born back in the 1970's, in the Central Urals. During the five-year
plan, 1.1 billion rubles' worth of industrial output wss produced at Sverdlovskaya
Oblast enterprises that had been subjected to modernization and reconstruction. In
- so doing, 600 million rubles of capital investment were saved over what would have
been required for new construction. The a,nnual economic benefit was 11U I[11111011
rubles, anc. the average period for recoupir~g the costs was less than 2 years. The
experience of the Sverdlovskaya Oblast ~nterprises was approved by the CPSU Central
Committee and recommended for dissemination.
Much was done in tnis field during the lOth Five-Year Plan. Thus, at the Magnito-
gorsk Metallurgical Combine blast furnace No 2 was completely renovated in a short
time and annual pig-iron production here inereased 200,000 tons. The production of
~ii,LumuLive sheet stecl r~se by 3~DU,000 i:ons, thanks to the rebuilding of the "2~00"
hot rc>lling mill. Mudernization of the equipment at the slabbing mill and the
second blooming mill brought still gx~eater effectiveness. The updating of plan~s
and factories in Moscow, Leningrad, Ivanovskaya, Zaporozhskaya, Vostochno-Kazakh-
stanskaya, Kemerovskaya, Kuybyshevskaya and other oblasts proved convincingly that
rceqaipping existing enterprises with machinery is extraordinarily suitable, since
it provides greater eff'ectiveness per unit of expenditures for output and rapid
recoupment of funds.
- 'i'echnical reequipping and reconstruction will be developed further. Many enter-
prises of ferr~us and nonferrous metallurgy, machinebuilding and the coal, chemical
and petrochemical industries will be renovated on that basis. The Kulomna and
Voroshilovgrad Diesel-Locomotivebuilding Plants, the Bryansk Machinebuilding Plant,
the Penza Diesel-Engine Plant, the Pavlodar Tractor Plant and a number of other
plants are to be rebuilt. Enterprises of light industry and the construction in-
dustry are to be subjected to reequipping. The Urals, the Ukrain~;, Belorussia and
Lhe industrialized Central Economic Region of the USSR will become the main regions
where rebuilding will receive preferential development and new construction will be
restricted.
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IL is planned to erect new enterprises primarily in branches of the econc,my and at
producti~: facilities that will support progressive shifts in the structure of so-
- cial production and involvement of the fuc.l-and-gower ar~d mineral raw-material
resources of the country's eastern and north~rn regions in the economi.c turnover.
Based upon this, capital investmeni~ for new ~onstruction will be aimed, as a rule,
- ~ at implementing huge national economic programs, such as establishing regional pro-
duction complexes (Kansk-Achinsk, South Yakutia, Pavlodar-Ekibastuz, Sayany, West
Siberia and Timan-Pechora), the creation of energy-int~nsive production facilities
in Siberia and Kazakhstan and the erection of n~w hydraulic-engineerin~ and thermal
and nu~lear electric-power stations. In particular, thermal electric-pawer sta-
tions that use the inexpensive coals o~ the Nyurengri, Ekibastuz and Kansk-Achinsk
Coal Basins, as well as the natural gas and casin~-head gas of West Siberia's
fields,will be built at an accelerated pace. In order to tr~.-~smat energy to the
country's central zc;nes, power transmission lines that are unique in length and
voltage will be built: the first phase of th~ Ekibastu~-CEntral Economic Region
power lir.e of 1,500 kilovolts DC and the Ekibastuz-Urals power line of 1,15U kilo-
volts A,C. The construction of nuclear power stations in the country's European
, portion will receive priority: 24-25 million kilowatts of new capacity will be
introduced.
' lliring the ll~:h Five-Year Plan production facilities will be built drith aA eye to
_ imp:oving the siting of productive forces and use of the productive potential
and the natural and labor resources of the various economic regions in the coun-
try's unified national economic complex.
1
~ In the RSk'SR's Nonchernozem Zone, new capacity will go into operation at the Chere-
povets Metallur�gical Plant, additional capacity for making paper will be created at
the Syktyvkar r'orest~ry Industry Complex, and capacity will go into operation at the
Smolenskaya, Kalininskaya an3 Kurskaya AES's.
In the Central Chernozem Region, the forming of a regional production complex based
on the Kursk Magnetic Anomaly wi1.1. continue, and the first phase of the Oskol Elec-
trometallurgy Combine will go into operation.
In L-he Volga region, the forming of an industrial cluster for recovering a~nd pro-
cessing gas and gas condensate and for producing sulfur based on the Astrakhan gas-
con~iensa~e i'ield, will be start~d. Capacity at the Cheboksarskaya and NizhnP-
Kamskaya GI?S's and also at the Balakovskaya AES will be put into operation.
In the North Caucasus, capacity at the Atommash plant, the Novocher~kassk Elec-
= Lr�ic-Locomotivebuilding Plant and the Rostovskaya AES w:ll g~ into operation.
- In the Urals, as bei'ore, the main efforts of the builders will be aimed at rebuild-
ing and reequipping industr�ial enterprises, and, in Siberia, at es~~ab~ishing re-
~ional production complexes. A new stage is beginning--the buildup of an entire
complex of' branches of industry and of production-servicing facilities. The intro-
- duction into operation of the first capacity at the Tob~i'slc and Tomsk plants will
lay the groundwork for the ~Nest-Siberian petrochemical base, which will become the
country's largest. In this region, enterprises will be erected for processing
casing-head gas and for producing equipment for the oil, gas and chemical indus-
tries and for other facilities. �
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In Krasnoyarskiy Kray the machinebuilding base will be strengthened thanks t~ Lhe
- i.ntroduction into operation of large capacity at the Krasnoyarsk Heavy Excavator
Plant, ~he Abaks,n Railroad-Carbuilding Plant. and electrical-equipment enterprises
of ~Iihusinsk. New capacity at the Sayany Aluminum Plant will be introauced.
In the Far East the construction of production facilities will provide for furth~ ~
development of nonferrous mPtallurgy and the oil-refining,~fishing, lumber, wood
proce~sing and pulp-and-paper industries. Erection of the Primorskaya GRES and the
Kolymskaya GES will be completed, and a metallurgical conversion plant will be
built.
In the Ukrainian SSIt, along with the rebuilding and technical :~eequipping of en-
terprises of the coal industry, metallurgy, machinebuilding and other branches, new
capacity will go into operation at by-product coke plants and enterprises that pro-
duce mineral fertilizer and automotive tires and at the electric-motor plant in
Uzhgorod.
In the Belorussian SSR, expansion of the agricultural machinery plant in Gomel',
the Brest carpet-and-cloth cumbine will be completed, and a metallurgical conver~-
sion plant will be buiYt. New capacity will go into operation at Novopol4tsk's
- ~ Polimer production association.
In the Uzbek SSR, capacity for producing copper and for mining lead-and-zinc ores
_ at the Almalyk Mining and Metallurgical Combine and for producing steel and rolled
products at the Bekabad plant will rise. Capacity will be put into operation at
the Tashkent Tractor Plant and the Angren.skaya GRES-2, at cot~on combines in the
cities of Andizhan and Nukus, and at knitwear and other enterprises of light indus-
try and the food industry.
In the Kazakh SSR, a large amount of construction is to be done to strengthen the
raw-materials base and to develop ferrous and nonferrous metallurgy and the coal,
chemical and petrochemic:al industries. Capacity will go into operation at the
- K~char Mining and Concentrating Combine for mining iron ore and in the Karatau
F�.~sin and in Aktyubinskaya Oblast for mining phosphate, and for the production of
~�ellow phosphorus and mineral fertilizer. Construction of the Chimkent Oil Refin-
ery will be comple+.ed.
lri Lhc Ceurgian ~SR, a plant for making equipment f~r cableways will be built, and
new capacity for processing tea leaves and wine anc9 for 15ottli.ng mine.rai water
will be put into operation. Erection of the Zhinval'skiy ~ydraulic-engineering com-
plex will be completed, construction of the Khudonskaya GES will continue, and con-
struction uf the NamakYivanskaya GES will start.
In the Azerbaijan SSR, plants of the Azerelektroterm Association, plants of spe-
- cialized motor versicles and deepwater foundations will go into operatian, alsv the
;~hamkhorskaya GE5 and the Azerbaidzhanskaya GRES and new chemical-enterprise capa-
city in Sumgait.
I.I1 the Lithuanian SSR, c~ns~;ruction of trie second phase of the Mazheykyay Uil Re-
f'inery, ttie Vil'nyusskaya T~Ts and the first phase of the Ignalinskaya AES is to be
complcted, and enterprises for processing flax are t~ be rebuilt.
. 4
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In the Moldavian SSR, construction o�'r a plant for colored television sets and the
- Rezin Cement Plant will be completed, the erection of plants for ;~roducing machines
for gathering tomatoes and for mechanizing work in orchards a~nd vineyards will be
promoted. ,
In the Latvian SSR, construction of the Daugavpilsskaya GES and the development ~af
seaports will be promoted, and light industry will he reequipped with machinery.
In the Kirghiz SSR, a gold-ore combine and capacity at the Tash-Kumyrskaya GES will
go into operation, erection of the Kurpsayskaya GES will be c~mpleted, and the con-
struction of a tin-ore enterprise will be started.
In the Tajik SSR, the erection of the Yavan Electrochemical Plant will be contin-
ued, construction of the Rogunskaya GES wil.l be promo~;ed, the Baypazinskaya GES
will be put into operation, ~nd the cotton combine it~ Uushanbe and the silk combine
in Leninabad will be reequipped with machinery.
In the Armenian SSR, capacity at the Razdan INachinebuilding Plunt, the lift-truck
plant and the perfume factory wi~l be pui; xnto operation, and nonferrous-metall~irgy
and chemical-industry enterprises will be rebuilt.
- In the Turkmen SSk, the construction of a carpet combine in Bezme-in and uf a fac-
tory for nonwov:.n materials in Chardzhou will be completed, and the cotton combine
in Ashkhabad will be modernized.
In the Estonian SSR, ~he shale-processing industry will be reequipped, and the
Krengol'mskaya Manufaktura cotton combine, as well as other light-industry and
. food-industry enterprises will ae rebuilt.
As before, the construction of housing and facilities for cultural and personal-
amenity purpc.,es will be developed at a rapid pace. The social program calls for
the introduction into use of new housing with a total area of 530-54U million
square meters, improvemerit of the comfort and amenities of the apartments, and the
construction of a substantial number of facilities for public health and cultural
purposcs. It is planned to complete conversion to the construc~~ion of housing
built from standard designs with improved layout and finish work of the apartments.
Itural builders are ~u do a large amount of work. During the ilth Five-Year Plan
the share of' resources allocated to agricultural development will be no'less than
during Lhe lOth I~ive-Year Plan, and capital investment for building housing, chil~
dren's preschool institutions, clubs and so on will be increased by 39 percent.
- The erection of district-heating and centralized gas-supply grids and of water sup-
ply and sewerage systems, and also of on-farm roads, will be expanded. Systems for
irrigating 3.4-3.6 million hectares of land, for draining 3.7-3.9 million hectares '
and for flooding 26-28 million hectares of pasture will be created through state
f'unding. Work on land reclamation and the agricultural development of land will be
coni:inued in integrated fashion. Large water-resources construction is planiied for
the North Caucasus and the Kulunda, Dzhizak and Ka.rshi steppes and also for devel-
opment uf the Dunay-Dniester and Kakhovka irrigation systems and the erection
of the se~ond phase of the Dnepr-Donbass [Donets Coal Basin] Canal, a third phase
of.the North Crimean canal and of the Azov irrigation system.
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During the llth Five-Year Plan branches of the production infrastructure will be
further developed. Investment for strengthening rail transport will grow 1.3-fuld.
_ Uuring th.is five-year plan the builders of the BAM [Baykai-Amur Mainline] will pro-
vide for through train traffic for the whole length of the mainline, and then the
potential will be opened up for involvin~ the most rich resources found in this
zone in the econQmic turnover. It is planned to erect 112 kilometers of subway
lines. To the existing 7 lines, subways in Minsk, Yerevan, Gor'kiy and Novosibir::�,
will be added. Almost 12,000 kilometers of petroleum-product pipeline will be
built, 5-fold more than during the lOth Fiv~-Year Plan. Construction of the hard-
topped highway ne~work will be continued, primarily in Siberia, the Far East and
the Nonchernozem Zone of the RSFSR. In regions of Siberia and the Far Fast it is
planned to strengthen river-fleet port activities. High goals have been estab-
lished also for the development ot communications.
ConsLruction programs will be implemented during a continuous growth in the effec-
- tiveness of construction work i.tself. During the five-year plan labor productivity
should rise 15-17 percent, and the entire amount of conctruction and installing
_ work is planned to be carried out without an increase in the industry's worker man-
_ ning. This task is lower than for the la.st five-year pls but each percent of
labor productivity has become substantially more meaningful.
The fact is that the main source of growth in labor productivity will, as in previ-
ous years, be a further rise in the level of industrialization and in the degree
of factory preparation of constructional structure and buildi:l~ materials. A1-
though the potential here has not decreased in comparison with the previous period,
real.izing it is becoming increasingly complicated. For example, it is hardly
possible to solve the task of complete prefabrication of construction with rein-
forced-concrete structure alone, with which "boxes" of buildings are already being
erected now at a high engineering le~~el; the cost of such a box, as a rule, does
not excezd 50 percent of the total cost of construction of that part of the build-
ing. The "stuffing" and decoration of a building (erection of the interior
- structure, the installation of utilities equipment, and so on) are still being car-
ried out, as a rule, by traditional, nonindustrialized methods. In most cases
ev~:r~ partitions are ma,de out of piece-type materials and then plastered. Wet pro-
ccsses are still practically the only method for doing finishing work.
- Further industrialization of construction means not only growth and improvement in
the production of traditional prefabricated structure for the boxes of buildings,
but primarily the conversion to progressive methods for all types of work, such as
ths installation of partitions, floors, suspended ceilings and roof coverings,
thermal and sound insulation, the installation of the building's utility systems,
surface fi.nish work, and so on. All this should be carried out with materia2s and
artic~es fully fabricated at the factory so that at the construction site, con-
struction processes will be reduced down to the simplest operations of assembly,
installation, glueing, spreading out, and so on. The essence of it consists, con-
- sequently, in further intensifying the integra~ed industrialization of construc-
- tion, primarily in work with a high level of labor expenditure. In order to solve
this problem, th~ variet;~ of factory-made items produced for construction needs
should be expanded, and they should be shipped to the construction sites in fin-
ishedf'orm and in complete sets, with all the necessary materials and articles.
During the llth Five-Year Plan construction shou]d be accomplished on a higher or-
ganizational and technical level than cluring the past five year pl.an, with more
effective use of supply, equipment, financial and labor resources. For this
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~ purpose it is necessary to concentrate capital investment and the efforts of ccn-
struction and installing organizations at the most important construction projects
and on a limited number of facilities being erected simultaneously and to develop
and execute the practical measures for impraving capital investment contemplated by
~the CPSU Central Committee and USSR Council of Minist�~rs decree of 12 July 1979,
"On the Improvemer~t of Planning and Stren~thenin~ of the Influence of the Economic
M~~hanism on Increasing Production Efficiency and Work Quality." Active realiza-
tion of the indicated measures will lead to a reduction in construction time, ac-
celerate the introduction of facilities into operatiun and reduce the amounts of
uncompleted construction (right now it is almost 9~ percent of the annual capital
investment volume).
Cne of the important tasks of construction during the lith Five-Year Plan is a re-
duction in the amounts of material r~sources u5ed. It is known that construction
consumes enormous amounts of various typ~s of material. Therefore, a reduc'cion in
~he materials intensiveness of capital construction is, very likely, of paramount
i~nportance among measures for increasing its effectiveness. And this means not
only a reduction in the amounts of resources consum~:d but also a reduction in the
labor intensiveness, construction time and cost ~f �recting buildings and struc-
tures. Given the ~urrent amounts of construction, a reduction in consumption of
material resources by an average of even 1 percent would yield a saving of 450 mil-
lion r�ubles, That is why the "Main Directions" for the national economy's develop-
ment during t;he ilth Five-Year Plan calls for a reduction in the consumption of
rolled ferrous metal and of lumber by 7-9 percent and of cement by 5,7 percent dur-
ing construction work as a most important task. ~
Persistent and universal improvement ~f construction on the basis of industrializa-
tion, the effective use of capital investment, improvement in the organization of
construction work and of the labor of wagt :vo:Kers, the wide introductior. of pro-
gressive technologies and construction methods, a rise in ths level of the mechani-
- zation of construction and installing work, an improvement of design so].utions and
the economical use of material resources--these are the paths that should enable
the fulfillment of the lith Five-Year Plan capital-construction tasks at a high
technical and economic level.
COPYItiGHT: Izdatel'stvo "Znaniye'~, 1981
~ 11409 r
CSO: 18`L1/031 .
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CONSTRUCTION MACHINERY
PR7~1CiYLES FOR REVAMPING MACH~NERY-OVERHAUL SYSTEM POSTULATED
Moscow VOPROSY EKONOMIhI in Russian No 9, Sep 81 (signed to press 'L Sep 81) pp 44-
54
[Article by A. Nemchinskiy: "Overhaul of the Machinery Pool"]
- L1'exi:l The necessity for maintaining~machinery, equipment and transport in operat-
= ing readiness lends national econ~mic importance to improvement of the system for
repair~ing l.hem. The disrepair of just 1 percent of the eountry's machinery pool
freezes an active portion of fixed producti~n capital that costs 5.5 billion ru-
bles. Considering tha~ the share of equipment out of commission in various bran-
ches of material production ran.;es from 3-5 percent to 1U-15 percent or more, the
_ yield on capital for the machinery pool is reduced ~onsiderably. However, the na-
tiona~ economy's losses are not confined tu this, since the normal operation of
- many industrial lines and of whole production facilities is disturbed because vari-
ous units break down. The rapid equipping of the national economy with compli-
cated and expensive equipment intensifies the urgency of the.problem with each
year, since a reduction of the operational readiness factor of the machinery pool
increasingly affects the effectiveness level of social production.
Tuchnical sPrvicing and current overhaul are required for most equipment. Inter-
medi.ate repair of certain types of equipment is, in essence, a variety of current
rcpair. Bui,, while the complex of repair work, which ~includes technical servi-
cing and current repair, has been aimed mainly at maintaining the users' value of
the machinery, overhaul is designed for partial restoration of ~:~;t~ As K. Marx
pointed out: "Repair work is divided, further, into current repair and overhaul.
- The lal:ter is partially a restoration of fixed capital in its natural form...."'
Consequently, overhaul occupies an important place in the prooess of reproduction
of' machines, aiic~, ir~ essence, is one of its forms. It is desirable to examine the
machinery uverhaul pr~ublem in integrated fashion, it~ interdependency with other
I'or~ms uY reproduction,as a function~of the retirement of~obsolete machines and the
arrival of new ones, and the technical and economic indicators and the reliability
and durability of the machines. It is apparent that only a systems approach to
solving the problem will enable the path for raising overhaul effectiveness to be
- determined.
_ 'Marx, K. and ~ngels, F., Soch. (Works], Vol 24, pages 198-199. ~
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The Moderz Status of Overhaul
For many types of equipment, expenditures for repairing machines exceed substan-
tially the cos~s for producing them. Thus, according to USSR Minsel'khoz [Minist~y
of Agriculture], expenditures for repairing tractors used in agriculture is 2.5-
foid that of ~he costs of manufacturing them. Total expenditures for laeeping up the
efficiency of the E-652 excavator, which is used in construction,have reached
22,000 rublea, or 25A percent of the original cost. In this case metal consumption
during repair of the excavator during its service life is 21-22 tans, or more than
100 percent of its weight. Such a situation engenders extremely questionable opin-
ions about the desirability of overhaul.
Meanwhile, the high co::,t of overhaul results from economically ineffective ~rgani-
zation. Different ministries and agencies overhaul like types of equipment (motor
' vehicles, machine-tool equipment and construction and road ~aachines, as well as
certain other types), breeding a multitude of dwarf semicottage-industry repair
enterprises that have the very same purpose and are often located next to each
other. The quality of their repair work is low, and operating costs are intolera-
bly high,
Motor-vehicle overhaul is perfarmed, for example, at 2,UU0 enterprises which are
subordinate to more than 40 ministries and agencies, and agricultural machinery is
repaired at more than 2,000 enterprises, construction and road machinery at 369
plants and 1,850 departments and shops. MacP,ine-tool equipment (metal-c;utting and
woodworking machines and so on) are repaired in the departments and shops of 70,000
industrial enterpri.ses.
Tr~e degree of support of machinery with spare parts and articles is assessed at 30
to 75 percent, for construction and road machinery 40-50 percent, of the total re-
quirement therefor. Under these circumstances, enterprises are compelled to manu-
facture parts independently, at higher cost and with lower quality. For example, a
spur gear that costs 20 rubles and 40 kopecks, according to the price lists, costs
102 rubles and 22 kopecks when fabricated at Dneproekskavatsiya Trust plants, or
5 times as much. Moreover, the repair capacity is used to produce noncharacteris-
tic output that should come from machinebuilding enterprises.
1'he lack of specializatiun of repai.r enterprises and the primitive repair technolo-
gy promote the preservation of obsolete individual, or so-called sidetrack, re-
pair. Technological specialization is practically absent and only for automotive
transport is it evaluated at 5 percent of the total amou,-~t of repair work, and
parts specialization does not exceed 10-11 percent, while object repair is 88-95
percent. For a number of reasons, progressive methods for machinery repair.(compo-
nent-and-assembly and periodic replacement of repair sets--PZRK) still occupy~ a small
share in t;he overall repair-work volume, reducing the effectiveness of ineasures for
maintaining machines in operating eondit~on.
At the same time, overhaul of a major portion of the'equipment remains an economi-
cally rational way for reproducing machines. This is occasioned by the nonuniform-
ity of durability of equipment components and parts, and by the necessity for re-
placing them periodically to preserve the efficiency of the machine as a whole.
Mainly ~naterial deterioration is eliminated during overhaul. However, it must be
considered that "material deterioratio:~ of a machine is dual in nature. One kind
arises from its use--as a coin is worn from being circulated--the other comes from~
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nonuse of it--as a sword rusts in a scabbard from disuse....Deterioration of the
first type is more or less directly pro~.ortional to the amount of use of the ma-
chine, whiie deterioration o~ the second kind is to a known degree inversely pro-
- portional to use.1z This situation is of gr~at importance when solving questions
of the interdependence of the degree of use of equipment and the amount of over-
haul. In order to increase overhaul effectiveness, it must be kept in mind thai
"in addition to material depreciation a machine is also subject, so to speak, to
obsolescence. It lc~ses exchange value to the extent that machines of the same de-
sign become cheaper ;o reproduce or better machines enter into competition~~,~aith
it. In both cases, regardless of how new and viable a machine may be, its value is
determined no longer by the worktime that has actually been invested in its produc-
tion, but by what is necessary now for reproduction of the very same machine or for
the reproductio~i of a better machine."'
lluring overhaul it is possiblP to reduce somewhat a machine's obsolescence by re-
placing key components with ones that are better perfected or by combining overhaul
with modernization as one of the forms of reproduction of the machine, the main
task of which is to be a countermeasure to obsolescence.
Industry peculiarities and the specifics of the equipment (for example, maritime
- ships, agricultural machinery, railroad rolling stock and others) require a dif-
ferentiated approach to solution of the overhaul problem. At the same time: it
is necessary to examine ways for raising effectiveness in supporting the life cycle
of inechanization equipment and transport that are common to all (or to most)
industries.
These include: the conduct of a unified technical policy for the creation and re-
pair of machines; the determination of economically desirable service lives for
equipment and the relationships of amortization deductions to renovation and over-
haul; the establishment of economically rational limits to overhaul, taking into ac-
- count industry anu regional peculiarities of operation of the machines, as well as
the potential for providing new equipment; optimization of the proportions between
cur�rent repair and overhaul of 1:he equipment; the selection of effective methods
- (in Lc:chn~Ju~ical and economic plans) for overhaul.; the industrialization of repair,
b~~sed upon the specialization of enterprises and of technological repair lines ; the
or~anization of' a unified interagency system of repair enterprises; and the crea-
tion of reserves for x�eplacing equipment that is being rep aired (an exchange inven-
tory of machines).
Despite specific peculiarities in the repair of different machines, certain groups
of them are close with respect to technology and organization of repair. These
are, primarily, mobile equipment (the motor-vehicle fleet, agricultural machines,
mechanized-construction, road and land-reclamation equipment) and stationary ma-
chinc-ta~l equipment (metal-cutting tools, and the equipment of light industry and
ccrtain other branches of industry).
The economic essence of overhaul can be examined in terms of renewal of the user's
value of the machines, if a reduction in their value precluQes further functioning
of them as i.mplements of labor and interrupts the process of transferring a
portion of their value into output. Repair is occasioned by the r~eed for partial
_ 'Marx, Karl. and F.ngels, F., Soch., Vol 23, page 415.
'Marx, Karl and Engels, h'., Soch., Vol 23, page 415.
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-
,
replacemer.t for deterioration of the machinery. Overhaul (as distinguished
_ from restoration) does not restore completely the equipment's potential. Thus, the
productivity of construction machinery after overhaul is 7-12 percent less, while
_ maintenance expenditures are 8-12 percent higher than is the case with new machines.
_
Where there is economic justification for long-term repair volume, it should be
considered that the overhaul requirement is reduced as a machine's various compo-
nents approach each other in uniformity of durability. In the ideal case, when the
service lives of the assemblies and components of a machine are equal or very, near-
ly alike, the requirement for overhaul disappears, and it is desirable to replace
the machine with a new one. Along with the common tendency to reduce the amount of
repair for certain types of complicated and high-capacity mach~.nes (where an ap-
proximat-ion of uniformity in component durability is difficult to achieve), over-
haul remains an economically effective for:n of reproduction of fixed production
capital for the foreseeable future.
Modeling of a Subsystem of Overhaul Within the System for Reproduction of the
Machinery Pool .
Increasing overhaul effectiveness has necessitated that it be modeled as a process
for the reproduction of machinery. It is natural that the pace of delivery of new
_ machines and the total requirement therefor will affect the amount of overhaul. If
shipments of machines cannot provide for the replacement of those falling into
disuse, then a definite and frequently unjustified increase in repair volume oc-
curs. A dilemma therefore arises: ~ither write off the worn machines or extend
their service lives by one more overhaul or even a poorly effective restoration re-
pair but save expenditures of live labor and support fulfillment of the production
tasks.
- The choice of a rational technology and organization for repair greatly affects the
- effectiveness of equipment overhaul and repair-enterprise capacity. The assembly-
and-component method is effective at present in the planned preventive-maintenance
system. However, its wide applicatiun is being held back by the lack of, a reserve
- of assemblies and components for establishing an exchange inventory, and also by
an insuff'icicr~cy of high-capacity specialized plants for repairing these components.
Introduction of the assembly-and-component method will enable a reduction of repair,
timc to one-half to one-third, as well as of time and costs for transporting the
machines to and from repair, since the overhaul is done directly at the mechaniza-
- tion center~. With this method, the labor intensiveness of repair is reduced by 40-
50 percent, operating casts by 8-12 percent, and transport expenses by an average
of 30-40 percent.
The overhaul of' machinery is transformed into a planned system of replacing assem-
blies and components that have short working lives where the residual value of the
- assemblies (or romponents) that have exhausted their service lives is minimal. In
the long term it will be possible to convert to a system of diagnosing the operat-
ing condition of each machine in order to determine the degree of its actual ma-
terial deterioriation and to regulate measures for repair of the equipment.
In determining the economically rational limits for overhauling equipment,the ratio
of a machine's residual value and overhaul cos~s to thebenefit of operating the equip-
ment afi;er the overhaul can be used. Obviously, economically rational limits for
repair are established differentially for different machines.
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'1'he ini:erdependence of the ways to reproduce machines with alternative solutions for
the structure of the pool thereof cai, be presented in the form of a balance-sheet
model for the reproduction of machines. When e~onomically justifying a process for
reproducing ma:.hines, it is desirable to consider the following factors: the cost
- of replacing machines that are falling into disuse, expansion of the machinery
pool, depending upon gro;ath in ;he amounts and change in the structure of opera-
tions, and the creation of a reserve of machin~s. The total value of the machinery
p~ol will be determined by the total of the attributed-cost indieators, by model
and by group of machines.
The total value of a pool of machines at a given period of their reproduction is
- characterized by the sum of the indicated constituents, taking into account correc-
tion factors for change in the struct~ure of operation in the industry and regional
plans, as well as the level of intensification of the use of inechanized equipment.
A machine pool can be reproduced through overhaul, modernization or the arrival of
new machines. Each of these forms of reproduction has its own share in the repro-
duction process at different stages, depending upon specific oonditions.
A balance-sheet equality of requirements and reproduction of the machinery pool in
accordance with a consolidated model is dynamic and that, in turn, requires a fore-
casting for each of the indicators, by period of anticipation, of the estimated
- requirements for machines and for amounts of overhaul. Since the replacement of
- old by new fixed capital does not result in equ~lity of their production potential,
it becomes necessary to make a comparative assessment.
It is desirable that the comparative analysis be made by set of indicators. Spe-
cific indicators (or indices) that refer to unit eapacity can be used for this pur-
pose. For instance, one progressive type of equipment is the new EO-3332 excava~
tor-~~laner with replaceable equipment, which, in comparison with the E-4010 plan-
ing machine that it replaces, is characterized as follows per unit of power:
- a 41-percent reduction in capital intensiveness; a 40-percent reductian.in metals
intensiveness for manufacture of the machine, a 70-percent rise in the operator's
labor productivity, and a 57-percent reduction in prime cost per 1,OOU square me-
t~r�s of soil leveling.
A set of particular indices enables a comparative variant analysis of progres-
sive and standardized equipment to be carried out. This approach to evaluating the
ei'fcct of technical progress enables its quantitative characteristics to be estab-
lished in i;erms of cost and physical factors. However, an analysis by indicator
' is difficult where there are substantial deviations. In such situations it is
necessar~y L-o apply a multiple-criteria approach, examining not just one but sever-
al indices successively for a comparison of the progressive and the standard equip-
mcnt. The,indices will also enable different variants of progressive equipment to
be compared with each other. In consolidated estimates the economic potential of
fixed capital is determined by the ratio of capital intensiveness per unit of
_ capacit;y or output of the standard progressive equipment. In the model of repro-
duction nf the machinery fleet, the ~~reation of a reserve for unforeseen circum-
stances and for replacing machines that are sent for repair is called for.
The dynamicity of the whole system for reproducing fixed capital exerts an influ-
cnce, on the one hand, on the probable deviations in the influence of various fac-
tors, which can be mutually canceling, and the system as a whole maintains its
equilibrium and consistency of direction, and,on the other hand, a potential for
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unidirectional deviations in the influence of the indicated factors is not .~x-
cluded, which can ].ead to a stratification of errors in the forecast computations.
Such deviations creai:e a risky situation in economic forecasts. It is desirable .
to a certain extent to counter the risk with an equipment reserve. However, the
creation of reservP fixed production capital not only requires large capital
expenditures (with a relatively small return therefrom) but it also involves an
increase in operating outlays even if the capital is not used." Therefore, it
becomes.nECessary to justify rational reserves (absolute and relative) of fixed ;
capital, taking.into account a minimization of expenditures for crelting and.inain-
taining them, with maximum benefit from using them during production-load peaks
and under various unforeseen circumstances. It is desirable to classify the :e-
serves that are established at various levels--from the construction and install-
~ ing trust or enterprise reserve to ministry and state reserves,.inclusive--by pur-
pose: opera~:ional, repair and national-economic (in case of natural disaster, and
so on). .
- It is impc~rtant to solve the question of reserves in systems fashion. The fact is
that the types of reserves examined can scarcely be used simultaneously. Conse-
quently, they can be concentrated where needed for various concrete situation.
This will enable the proportion of es~imated reserves to be reduced and their ef-
- fectiveness to be raised. The trend toward a reduction in the repair reserve ~s
the technical level of machines is raised and maintenance and repair bases are
improved must be considered. .
Modeling also calls for a balance of fixed capital and the output capacity needed
for repair~ work with optimization of the proportions among plants that overhaul
machinery, assemblies and components, mech::nization centers, and mobile facilities
for the technical upkeep of machinery. It is considered, when the model is be-
ing constructed, that a portion of overhaul is accomplished (using assemblies and
components that are repaired at the plants) at mechanization centers, motor
pools, and so on. In turn, a portion of the technical servicing and current repair
is performed by mobile facilities for technical servicing (truck-mcunted repair
shops). It is desirable, when modeling the reproduction of the fixed capital of
enterprises of the maintenance and repair base for mechanization equipment, to
start with the repair coefficients that characterize the cost of current repair
and overhaul. The requirement for fixed capital a,t mechanization centers and
~lants as a function of the cost of the machinery pool can be established in ac-
cordance with the standards for capital intensiveness of technical servicing, cur-
rent repair and overhaul.
The d,yr~ami cs ot' the cumpositiori of' the mechanization equipment by size, type and
gr~oup of machines cumplicate justification efforts in which change in the struc-
Lure of enterprises and facilities of the maintenance and repair base in indus-
- try and regional plans and the level of intensification of the use of fixed capi-
i,al are co~isidered. Keproduction of the fixed capital of the maintenance and re-
pair base is performed at overhaul plants and centers for the technical servicing
- and repair of machinery through reequipping, rebuilding, expansion and new
construction.
"This concerns expenditures connected with the necessity to keep the reserve ma-
- chinery in working condition during preservation operations, removal from long-
term storage, storage, technical servicing and upkeep of servicing personnel.
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Taking into account the proportions of +;he various form~ of reproduction and the
corresponding indicators of the economic potential of the fixed production capital,
a balance is reached of the requirements for and the reproduction of fixsd capital.
for enterprises and facilities of the maintenance and repair base. ^uring model-
ing, questions of siting the productive capacity of the repair enterprises are ~
resolved.
Unif'ied Policy for the Production and Repair of Machinery
~ The conduct of a unified technical and economic policy for cre:.tting and repairing
equipment helps the rational redistribution of capital investment among the repair
base and the machinebuilding branches of industry.
The volume of production of new machines and spare parts for them and the amounts
of overhaul of these machines and their assemblies and components are closely in-
terlinked and depend upon the overall life cycle of the given type of machine.
However, existing practice, wherein machinery makers find themselves associated
with only one portion of' the machine's life cycle (engineering design, design de-
velopment, production and the short maintenance guarantee period) and are complete-
ly isolated fY�om the other portion (maintenance, overhaul and writeoff), does not
meet modern requirements.
The potential for overhauling machines should be specified when they are designed
and pr~duced. The artificial gap between the production and the maintenance of ma-
_ chines lcads to a laclc of producer interest in the effective repair and servicing
~ of machines, and it also inevitably engenders a shortage of spare parts and the ne-
cessity 1;o produce them by semicottage-industry methods. A unified policy for pro-
ducing and repairing machinery will enable a more rational technological scheme for
overhauling the various groups of machines to be created, taking into account their
- construction characteristics, the system for diagnosing the degree of reliability
ef machines, assemblies and components, and unified norms and regulations for
planned preventive maintenance that consider the industry's specifics.
7'~c ex~cri'cnce of' dcveluped capitalist eountries testifies to a striving to reduee
uiul ev~n climinatc disrupLions of a machine's life cycle. This has enabled the
~,pcraLiorial rc;adiness i'actor of construction-machinery fleets in the USA, FRG and
.!apan to reach 0.9-0.91. Machinebuilding companies are motivated to see to it that
the equipment they deliver does n~t stand idle because af a lack of spare parts,
the manufacture of which in the USA, for example, amounts to about 30 percent of
- the output of nPw c~nsi:ruction machinery, exceeding our output 2-fold to 3-fold.
'1'cchnical servicing and repair are performed in accordance with a planned preven-
, t.ive maintenance systc:m which in the USA is provided by dealer companies. The
basic method of' rep~tir is the assembly-arid-component method.
'i'hc dealers are the connec~.ing link betvreen machinebuilding enterprises and equip-
- mcnt users. 1'hey dc, technical servicing and repair, deli~er spare parts (in 24
hours) and pick up machines that are unusable and require restoration. In Japan,
for example, the servicing of Mitsubishi Jyukogyo excavatvrs is entrusted to the
dealer Simmitsu Jyuki, which has a ramified network of technical servicing centers.
'Phe Aburadani ,Tyuko~yo and Kato Seysakusyo companies have organized their own tech-
nical servicing and repair centers, locating them in areas of the greate~t concen-
t,rati~n oi' machines (excavators) that have been purchased from these companies.
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- Much attention is devoted in the FRG to full-fledged, responsive technical servi-
~ cing and repair. For these purposes, special subunits of the manufacturing com-
panies and the dealers have been established. The Abbau company, for example,
- has huge spare-parts warehouses and technical servicing centers at which�mechan-
_ ics are constantly on duty and have facilities for the transport and repair of
equipment. The company guarantees the delivery of spare parts to a machine's re-
pair site in 24 hours. Weimar Mashinenfabrik services and repairs machines in
centralized fashion and through intermediaries and representatives, also in.a day.
In the USA the Caterpillar company's machines are serviced and repaired centrally
and through dealers, with use of the riewest facilities for cleaning and washing,
automatic installations for the deposition buildup of the rollers and frame of
the crawler undercarriage, and automated reporting of the repair operations by com-
puter, as well as automated delivery of the required spare parts.s For diagnosing
malf'unctions of Caterpillar Tractor Comppny engines, a portable computer has been
created wh~ich determines their effective power in a few seconds, by means of
sensors.
. I~;xpericnce .in Lhe main~:enance of machinery with company servicing and repair (by
the manufacturer c~r dealers, or their representatives) has shown high responsive-
ness and the economic desirability of this form of organization for keeping ma-
. chinery in constant operating readiness. A main factor in repair effectiveness
is minimal duration; this enables a high level of operational readiness to be pro-
- vided for and idle time of the machinery pool to be reduced to a minumum.
Idle equipment time for repai_r in our country reaches 40-61 days. Relative to the
planned annual service time in construction, which is 256 days, machinery time
spent in repair is more than 20 percent for excavators and bulldozers, about 24
percent for scrapers, and 15 percent for boom cranes. Thus, an average of almost
20 percent of construction's basic machinery is frozen because of the idle time
spent in repair. It is obvious that a rise in their repai~rability�and reliability
and an increase in service time and of the time between repair cycles are
basic principles uf a unified technical policy for the production and repair of
machinery.
An experimental calcuLution of comparable progx~essive (new) and standard (old)
_ equi.pment as t,o labor and ca~ital intensiveness and of attributable expenses per
uniL of' work performed indicated that the labor-intensiveness indicators of the
ncw machines demonstr~ate the:ix~ gr~owing effectiveness in the range of 1.5 (KS-5363
and K-'L55 cranes) to 4.3 (KB-674 and KB-300 tower cranes). Capital intensive-
ness indicators for comparable machines vary from 0.7 to 1.8, tcsl,ifying to an in-
crease in capital intensity (of a portion of the new machines).6
Fur many brands of machines, not only an overall increase in expensiveness but also
an increase in cost per.unit of capacity is characteristic at present. For exam-
ple. the KS-6362 crane costs 2,080 rubles per unit of capacity, the standard ~-2508
CONTRACTOR METHO,;`' AND EQJIPMENT, NOS 4 arid lU, 1971.
_ 6Computai:ions were carried out for 17 pairs of machines of comparable size models,
based upon the baseline indicators of VNIIstroydormash [All-Union Scientific Re-
search Institute for Construction and Road Machine Building] of USSR Minstroydor-
mash [Ministry of Construction, Road and Municipal Machine Building], relative to
- 1980.
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machiiie 1,570 rubles. However, this can be justified in some cases by an improve-
ment of other indicators, mainly reductions in labor intensiveness and prime costs
- per unit of work performed (as occurs with the KS-6362 crane). In economic justi-
fications for the process of reproducing machinery, it is desirable to consider the
increase in mobility, reliability and completeness of ~~equipping of the machinery
pool. Mobility of machinery enables a reduction in the time (and also in the labcr
and material resources) spent on redeploying the machinery, provides for better usc
of time, and enables the total requirement for the corresponding groups of machines
i:o be reduced. The reliability of machinery is manifested in reduced techni-
cal servicing, current repair and overhaul and less labor intensiveness and
time spent in performing them. Completeness in equipping the pool of machines re-
sults in mutual coordination of their parameters for the subsequent fulfillment of
the technological production processes. All these present substantial reserves for
reducing the cost of the machinery pool and expenditures on repair.
Unf'ortunately, an unf'avorable trend toward growth in total expenditures for the op-
eration and repair of comparable "new" and "old" equipment is observed. An anal-
- ysis of the to~:al expenditures on technical servicing, current repair and overhaul
that are attributable to one year indicates a growth thereof for a number of new-
- ly produced machines. For example, expenditures for the technical servicing of the
}~~5-6362 rubber-tire~ er~ecting boom crane is, over its service life, in comparison
with the L-25U8 crane, 42 percent greater (14'9 thousand rubles),for current repair
- 74.4 10.5
ii: is 210 percent greater (35.2 thousand rubles), and for overhaul it is 196 per-
cent greater (75'6 thousand rubles). Expenditures attributable for one'year, tak-
38.5
ing service life into account, are, respectively, 5,6UU rubles (E-25U8) and 11,000
rubles (KS-636'L), that is, 5,40U rubles more per year for the new machine.
The producers of machinery understate the repair-intensiveness indicators of equip-
ment. At the same time, a reduction in repair-intensiveness of construction ma-
chinery is economically desirable in many cases, even despite an increase in costs
in the sphere of inechani�r.ation equipment production.
I;~ pract.icc, the limits for equipment overhaul have to be expanded, beeause of
I~ailure tc> provide enterprises and organizations comp'ctely with mechanization and
i,ranspurt equipment. Because of shortfalls in deliveries of machinery to construc-
tion organizations, a porl:ion of the equipment subject to writeoff has to be oper-
ated. Therefore, obsolete and physically worn machines make up as much as 20 per-
cent of overhaul (relative to total overhaul volume).'
Increasing the Effectiveness of Machinery Overhaul by Industrializing It ~
'1'h~; industrialization of machinery ovcrhaul calls for reducing the repair pro-
ccss tu thc replacement uf assemblies and components with new ones or with ones
that have been overhauled at specialized enterprises. This will enable the effec-
tiveness of` overhauling equipment to be raised greatly.
Computations show a definite (or arbitrary) effectiveness of this repair where it
is impossible to replace the obsolete machinery with new machinery.
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Concentrating construction-machinery repair, for examp;e, will enable specific cap-
ital investment to be reduced by 12-15 percent, prime costs for repair by 8-10 per-
cent, and labor intensiveness by 20-30 percent, and will enable repair time to be
shortened., In turn, the special.ization of repair enterprises will lead to a cer-
tain rise in specific capital investment (5-12 percent), but it will reduce, in so
- doing, labor intensiveness of repair work by 35-40 percent and prime operating
costs for repairs by 3-7 percent, and it will cut repair time 2U-25 percent.
However, the prevailing practice of organizing construction-machinery overhaul does
not meet modern management requirements, and it is a brake on raising the effec~-
tiveness of repair-production facilities. The total number of enterprises engaged
in overhauling basic construction machinery and their assemblies and components ex-
ceeds 2,200, and abuut 10-12 percent Qf them are specialized. In this case, the
level of specialization by groups of machines is no more than 4-5 percent.
- lzight now the overhaul sphere is marked by bureaucratic isolation and lack of a
- unif'ied system for subordina;.ing plants. This does not permit concentration to be
raised much, ar.~, because of that, the specialization of repair facilities to be
organized. In the construction field, the concentration of production facilities
for the centralized repair of construction machinery has been characterized by an
, average capacity of about 1 million rubles' worth of repair output~per year per en-
terprise. At the same time, there are some enterprises within the repair base with �
_ a capacity of 7 million rubles' worth. The low level of assembly-line operation
in overhaul leads to an increase in the prime operating costs thereof,� and the
time taken for repairs leads to above-standard idle time of machines in repair or
, awaiting repai.r ('_.5-fold to 3-fold in comparison with the standards). Thus, seri-
ous contradictions have arisen between the high pace of development of the machinery
pool and the potential of the existing repair base to maintain the efficiency of
the machinery.
Studies conducted by NIIES [Scientific-Research Institute for Construction Econom-
~ics] of USSR Gosstroy have indicated that in a number of regions the capacity of
enterprises for ovei�hauling construction and road machinery must be brought up to
8-10 million rubles' worth (taking into account the rational radius for haul.age).
With ['urther cxpansion of the centralized repair of assemblies and components, it
will be desirable t~ increase capacity to 15-17 million rubles. As yet, the devel-
opmenl, of spacialization is being held back by bureaucratic isolation and the low
level uf assembly-line repair of like typP ltems. .
~ In the lor?g term there is to be a conversion from specialization by groups of ma-
chinery to specialization by size models (or brands), which will enable industri-
alized repair lines to be used and repair effectiveness to be increased. The sub-
contracting o~' repair work operations among various production subdivisions and fa-
cilities of other construction-industry enterprises, especially for relatively
small repair enterprises, is an important- method of raising their effectiveness:
a reduction of 2-3 percent in prime repair operating costs and of as mueh as
6-8 pcrcerit in the capital intensiveness of operations.
T~ he cost of' repairing one E-302 excavator at the Uglezavodsk RMZ [Machinery Repair
Ylant-] is 4,634 rubles, while for a series of 96 machines at Mariyskiy's Remstroy-
dormash plant of USSR Minsel's~:roy [Ministry of Rural Construction], it is 2,403
- rubles,or little more than half as much.
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Cu?~tiiclcr~ir?~; Lhut, cu~i:;trucLic~n machines arc bcing opcraLed not ~nl�� in COI1StT~uctiori
(wher�c they cumprise 45-6U percent. of the toi:al number of machines), but also in
ather branches of material production--the extractive branches of industry, agri-
culture, transport (for loading and unloading), and so on, it is desirable to solve
the problem of creating a single system of overhaul enterprises for the whole
national economy.
In order to increase the effectiveness of equipment overhaul at enterprises, the
fo~lowing are necessary: conversion to the organization of an interagency overhaul
system, which will enable the level of concentration and specialization of repair
work to be raised greatly and inefficient repair at nonspecialized enterprises of
ministries and agencies to be eliminated; and organization of the repair of new,
- highly productive equipment within the system of machinebuilding enterprises.
This will enable constraction and other ministries to be gradually freed of func-
tions not characteristic of them--management of the process of overhauling compli-
cated machinery.9 Itepair by the manufacturer will provide for quality and inereased
_ cffectzveness; the maximal possible and economically rational use of existing re-
pair enterprises; the frceirig of such enterprises from producing nonrepair output;
and ar~ appropriate s~ecialiiation by type of regair. According to computations by
N[11~:5 of' USSR Gosstrc~y, abouL one-third of the enterprises (of the 365 considered
plants of' the constt~uction ministries and agencies) must be left in the base for
centralized repair, after they are rebuilt and expanded. In so doing, it is pro-
posed to increase the average level of concentration of their output about 5-fold
to 7-fold, and also to raise greatly the level of their specialization. The plants
must organize the overhaul of basic construction machinery that is used in all
- branches of the national economy, except for new, highly rroductive machines.
Large specialized enterprises that are being built should be restricted to the new,
developing regions or to a major concentration of the repair inventory where
it is impossible or economically irrational for existing enterprises to cover a
shortage of capacil:y, or it is desirable to take a portion of' the existing repair
plants from the repair complex so they can produce nonrepair,output that is re-
quired by construction and other ministries and agencies.
5ludics indicai:e that construction-equipmeni: overhaul will remain a necessary form
c,l' re~roduction of' i'ixed capital for a long time yet. In this case, it is consid-
~i~cd that, as machiries increase in reliabili~:y and their assemblies and components
c:ume i.n approxi.mate ~~ach othcr in durability, the share of overhaul will be re-
clucucl ~;raclually ancf then intensely. At the same time, aeeording to the foreeast,
tt~u tc,tul c~verhaul vulumc will teiid to stabilize during the next decade because
c>t' tihe growi,h of the equipment pool.
'I'he ef'i'ect ~f implementing a unified technical policy in the area of repair and of
' raisin~ the assembly-line nature of it consists primarily in an improvement of the
quality of machines i;hat are repaired and an increase in service life between re-
pairs f'rom 50-6U pei�cent tc~ 8U perceiit of the corresponding service-Life indicators
established f'or new machines. At the same time, the machines will spend much less
time in repair. This will make possible the use of~at leas~ an additional 1 billion
9~xcavators with hydraulic drive of the operating implement; earthmoving machines
of the continuous-action type; self-propelled scrapers; bulldozers of more than
20U horsepower, based upon industrial-type tractors; and rubber-tired cranes,
_ truck cranes, and certain other machines.
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rubles' worth of the active part of fixed capital in construction operations alone,
and, correspon,dingly, a reduction in capital investment in development of the pool
of new construction machinery.
' It is desirable to use the experience in developing recommendations for creating a
unified system of enterprises for overhauling construction and road machines also
for certain other types of equipment. This concerns primarily automotive trans-
port, since motor vehicles are being operated in practica~ly all ministries and.
agenci.es throughout the whole Soviet Union. In so doing, the degree of concentra-
tion of motor vehicles in the economic regions exceeds considerably the concentra-
~:ion of other types of equipment, creating the prerequisites for high effecLiveness
in centralizing the overhaul of vehicles.
In accordance with the CPSU Central Committee and USSR Council of Ministers decree,
"On ~trengthening the Work to Save and to Make Rational Use of Raw-Material, Fuel-
ynd-Power and Other Material Resources," it is necessary to use in every possible
way the large reserve f'or savings that exist in overhaulin~ the machinery pool.
This refers primarily to the problem of the centralized output of spare parts and
of ii:ems f'or vehicles,which will enable metal consumption to be reduced about 1.5-
f'olci to 1.8-fold, fuel and power resources almost 2-fold, and labor expenditures
2-fold to 3-fold in comparison with the manufacture thereof by semicottage-indus-
try methods at small repair enterprises. ~
Another area for saving material resources is, in our opinion, the restoration~of
worn parts of machines by the automatic deposition method; the strength of the
working layer here is in no way inferior to that of new parts. This method will
enable as much as 65-80 percent of the metal of old parts to be saved. It is be-
ing used widely abroad (by the Caterpillar company and others). Our country aiso
has similar experience. In particular, at the Pankovskiy Experimental Machinery
Repair Plant, where a small section restores expensive and rapidly wearing parts of
5-80 and'~5-100 tractors and E-652 excavators, savings on the order of tens of
thousands of rubles have been achieved. The restoration of parts does not exceed
50 percent af the cost of new ones. Obviously, it is desirable to create special-
ized enterprises and departments for the centralized restora~:ion of machine parts
by the deposition method, which will enable labor intensiveness and the prime costs
of these ~operations ~;o be greatly reduced.
COl'YItICHT: Izdatel'stv~~ "I'ravda", "Voprosy ekonomilci", 1981
11409 '
CSO: 18'L1/0'L1
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METALWORKING EQUIPMENT
MACHINEBUILDING EQUIPMENT REPAIR CENTRALIZATION EFFECTIVENESS SUBSTANTIATID
Kiev EKONOMIKA SOVETSKOY UKRAINY in Russian No 10, Oct 81 (signed to press 12 Oct 81)
pp 34-38
[Article by Doctor o.f Economic Sciences T. Ben` (Dnepropetrovsk) and Candidate of
Economic Sciences Yu. Kostin (Khar'kav): "TerritoXial Organization of Interbranch
Repair Production"]
[Text] Among the tasks put forward by the 26th CPSU Congress is that of increasing
the effectiveness of m~:.hinery and equipment repair. This task can be solved in se-
veral resolution stages.
1. Increase repair centralization, concentration and specialization, including the
production of repair itemsl in branches of economic region specialization. This
stage can be described as temporary (transitional), its imp.lementation to be con-
cluded in the llth and 12th Five-Year Plans.
2. Inasmuch as about half of the equipment being repaired is for general industrial
- and interbranch application, it is appropriate to carry out within the framework of
specific territories an organizational-economic restructuring whose purpose is ~to
create regional repair organizations servicing all enterprises, independent of de-
pa:tmental affiliation.
3. Development of a system of regional interbranch repair production management and
linking it to higher-level management systems.
Let us examine the type structure and distribution of production equipment in USSR
metallurgical industxy using data from the last interbranch balance (MOB) of fixed
assets published by the USSR Central Statistical Administration.2 .
Technological equipment of inetallurgical industry occupies the highest proportion in
the type structure of production equipment (44.74 percent). The metallurgical industry
1We examined the basic types of general machinebuilding items (casting blanks, forg-
ings and stampings, welded metal components and machined items) as applicable to the
requirements of inetal~urgical industry.
2"Narodnoye khozyaystvo SSSR v 1973 g." [USSR National Economy in 1973J, Moscow,.Izd-
vo Statistika, 1974, pp 67-115.
. .r
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technological equipment group includes: blast furnaces, steel smelters, mills for
cold- and hot-rolling metal, including rolled steel and iron pipe and other equip-
ment.
A sigmificant portion (8.43 percent) is accounted for by mine-shaft, ore-mining and
ore-enrichment equipment; 9.52 percent is accounted for by power engineering and
electrical engineering equipment, 7.65 percent by lift-transport equipment, 6.74
percent by means of transport, and 5.85 percent by pump-compressor, refrigeration
and oxygen equipment.
Total metallurgical industry equipment includes 3.32 percent construction and road-
building equipment, 1.21 percent equipment for building materials industry, 0.16 per-
cent tractors and agricultural machinery, 0.05 percent equipment for light, food,
mixed feed, timber, pulp-paper and printing-publishing industry, 3.26 machine and
wood-processing tools, 2.83 percent forging-pressing equipment, 0.69 percent foundry
equipment and other types of equipment.
Metallurgical equipment is extremely metals-intensive. Its diversitq, high cost and
distribution by subbranch of inetallurgical industry have a substantial influence on
the organization of branch repair services.
It is expedient to divide the available production equipment of each branch into
four classification groups (see Table 1, following page):
1. general industrial equipment;
= 2. interbranch equipment;
3. ~echnological equipment of a corresponding (specific) branch;
4. technological equipment of other branches.
~Let's note that any classification, including that being proposed here, is in a cer-
tain sense hypothetical. First, it is prompted by the goals of concrete research.
Second, intensification of the social division of labor predetermined the process of
production differentiation in the branches, which complicated interbranch ties and,
consequently, a precise delimitation of producfiion equipment classification groups.
Third, its formation is influenced by the existing classification of USSR national
economic branches.
We used the following criteria as the basis for setting up our production equipment
, classification groups:
1. how multipurpose the equipment application is (its breadth);
2. the role of the equipment in the production process;
3. the branch affiliation of rhe equipment.
Equipment in the first group includes power and electrical engineering equipment,
pump-campressor equipment, production apparatus, lift-transport equipment, equipment
for construction and roadbuilding, and other equipment. The seeond group could in-
clude machine tools, wood-processing tools, forging-pressing equipment. foundry
equipment, refrigeration and oxygen equipment, means of transport and other types
of equipment. The third group includes specific equipment of the appropriate (spe-
cific) branch being examined. The fourth group is equipment of other branches which
is used to resolve technological tasks in the branch using the given types of equip-
ment.
In metallurgical industry, general industrial equipment accounts for 23.52 percent of
the total, interbranch equipment for 20.47 percent, equipment of a specific branch
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Production Equipment Classification Groups and Dynamics of Their Relationships in
Terms of Branch Affiliation (calculated from fixed assets interbranch balances c~ata
for 1966 and 1972 (see: "Narodnoye khozyaqstvo SSSR v 1968 i 1973 gg." [USSR Na-
tional Economq in 1968 and 1973], Moscow, Izd-vo Statistika, 1968, 1974))
branches of ntaterial production.
all USSR metallurgical
industrq industry
all production equipment 100.0 100.0
including groups by affiliation branch:
geneial industrial application
' 1966 MOB 18.88 20.78
1972 MOB 22.05 23.52
interbranch application
1966 MOB 6.07 13.43
1972 MOB 9.08 20.47
' corresponding-branch technological
1966 MOB 73.14 64.37
1972 MOB 67.44 54.39
technological equipment of other branches
1966 MOB 1.91 1.41
1972 MOB 1.43 1.62
54.39 and equipment of other branches 1.62 percent. For USSR industry as a whole,
however, these relationships are: 20.05, 9.08, 67.44 and 1.43 percent.l This means
- that, given the existing level of branch differentiation, the necessity arises for
an interbranch criterial evaluation of fihe mechanism for shaping optimum relationships
among these groups over the long range. It is that very knowledge of the indiGators
(levels) of the relationships of various equipment groups in a five-year plan cross-
section that opens up a way to find optimum relationships of branch and interbranch
ties and oppartunities for improving the effectiveness of repairs and permits a cor-
r.ect distribution of capital investments.
Let's analyze the relationships given in Table 1 for various equipment groups for the
period between the two interbranch fixed asseCs balgnces of 1966 and 1972 from the
viewpoint of determinirig the atatus of the equipment being repaired. On the one hand,
inasmuch as the proportion of production equipment of a specific branch remains rela-
tively high (67.44 percent for industry), repair organization is consequently also
of the branch type, including the manufacture of repair items. This 1eve1 will pro-
bably be retaina~d over the next two or three five-year plans, with slight changes to~
wards a reducticz. On the other hand, there is obvious growth in the first and se-
cond production ~quipment groups during the five-year period: 16.79 and 49.58 per-
cent for industry as a whole and for metallurgical industry, respectively (13.18;
52.41 percent).
The presence of these two trends in the produc~ion equipment structure indicates a
definite connection between the relationships of the various classification groups
and the level of repair centralization and specialization. As the proportion of
lEstimated iro~ the 1972 interbranch balance.
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speciat equipment (that for a specific branch) decreases and the proportion o~.gen-
eral industrial. and interbranch equipmPnt increases, expenditures for these groups
grow, which lo~rers the overall level of repair centralization and specialization by
increasing their decentralization in the specific branch. This becomes possible in
connection with the fact that branches producing general industrial and interbranCh
- output do not ensure deliveries of the needed amount of repair items or the central-
ized repair of their own equipment.
Thus, given growth of 2.74 and 7.34 percent, respectively, in the f irst and ~econd~
groups in USSR metallurgical industry (in 1966 rela~ive to 1972) and a 10 percent
reduction in the proportion of the third group, the proportfon of expen~itures on
repairs for these groups of equipment has increased correspondingly: five percent
foi� the first group, two percent for the second, and expenditures on repairs for spe-
cialized branch equipment t~ave decreased by seven percent.
- Actualization of the scientific-technical progress programs in industry over the next
20-30 y~ars will make its own adjustments in the relationships of the various equip-
ment groups. We can assume growth in the propoxtions of the first and second equip-
ment groups. If that growth is 1-2 percent per year, given the ex3sting repair or-
ganization, the increased decentralization will be 3-4 percent per year. This cir-
cumstance will naturally force the specific branch to divert even more considerable
resources into repairing and servicing these groups of equipment, thus causing con-
siderable harm to efforts to raise the level of technological equipment repair spe-
cialization and centralization in the .orresponding branch, which will lead to losses
in basic production.l ~
The data in Table 2[following page] testify to the level of repair centralization
in USSR industry. The highest proportion of centralized repair (interbranch balance
data for 1966 and 1972) is for machine tools (index of 3.30; 3.15), forging-pressing
equipment (2.13; 2.05), foundry equipment (2.53; 2.69) and others. We have adopted
as the ur~it the USSR industry average level of repair centralization, which is cur-
rently less than 10 percent. This situation testifies to insufficient attention by
the USSR Gosplan and the union republic planning organizations to repair problems in
- the country. The efforts of planning organizations have thus far been aimed at or-
- ganizing centralized repairs in machinebuilding branche~.
Machinebuilders are successfully developing the centralized repair of machine tools
and wood-processing equipment, foundry and forging-pressing equipment. To these
ends, specialized repair associations of the a11-union "Soyuzstankoremont" associa-
tion type have been created in machine and tool manufacturing industry. The associa-
tion includes a number of specialized repair plants. It is the task of the associa-
- tion to specialize and centralize as much as possible the repair of widely used mo-
dels of machine tools and to improve the quality and reduce the cost of repairs.
FSIIMS calculations confirm the advantages of organizing plants specialized for over-
hauling machine tools as compared with existing methods of repair at industrial
1PRAVDA, 1 October 1979, 13 November 1979 and 3 March 1980; EI~ONOrITCHESKAYA GAZETA,
No 45, 1979; VOPROSY EKONOMIKI, No 8, 1978, p 8; EKONOMIKA SOVETSKOY UKRAINY, No 8,
1979, pp 51-63, and others.
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Table 2. Production Equipment Type Structure and Centralized Repair Production ]:n-
dexes in Individual Branches (calculated using interbranch f ixed assets
balances data for 1966 and 1972 (see: "Narodnoye khc+zyaystvo SSSR v 1968
i 1972 gg.
proportion of proportion of
- equipment of corresponding repair producti~~n
type of equipment this type, in specialized re- index, group 4 to
percent of pair production ~roup 2 and group
total branch, percent 5 to group 3
- 1966 1972 1966 1972 1966 1972
MOB MOB MOB MOB MOB MOB
machine tools and wood-
processing equipment 11.64 11.22 38.42 35.36 3.30 3.15
- forging-pressing equipment 3.07 ~.75 6.54 7.70 2.13 2.05
foundry equipment 0.86 0.8E 2.18 2.32 2.53 2.69
technological equipment for
metallurgical industry 7.75~ 6.82 0.49 0.22 0.06 0.03
equipment and apparatus for
~ chemical industry 5.10 5.50 0.47 0.26 0.09 0.04
technological equipment for '
light industry 4.98 4.23 0.03 0.05 0.006 0.01
. . : : '
. . . : . . .
total of 20 types of equipment 100.0 100.0 100.0 100.0 100.0 100.0
Note: The average level of centra]ized repair for USSR industry was adopted as the
unit in columns 6 and 7. That is, if the 1eve1 of repair centralization for
industry as a whole equalled, let's say, 10 percent, but was 30 percent for
machine tools, the index of repair centralization would be 1.0 in the first
instance and 3.0 in the second.
en~erprises. Thus, for example, the labor-intensiveness of overhauling one machine
tool in a centralized manner is 2.5 times less than the labor-intensiveness of manu-
:~cturing a new machine of the same type.l
At the same time, the data in Table 2 testify to an inadequate level of repair cen-
tralization in metallurgical industry (indexes of 0.06; 0.03), chemical industry
(0.09; 0.04), light industry (0.006; 0.01) and other branches. This situation is to
- be explained, on t'he one hand, by ~he actually low level of repair centralization and
specialization in these branches and, on the other, by the fact that the USSR Central
Statistical Administration defin~s a specialized braach as an aggregate of special-
ized enterprises performing a given type of work, which very much narrows the limits
of the repair braneh.
Obviously, not all equipment manufacturing branches (enterpr.ises) can efficiently re-
pair their own equipment. This is a complex task, both technically and organization-
ally. In our opinion, having recognized the equipment grouping described above, based
lA. I. Kostin and D. I. Polyakov, "Spetsializirovannyy remont metallorezhushchikh
~ stankov" [Specialized Machine Tool Repair], Moscow, Izd-vo Mashinostroyeniye, 197$,
p 117.
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on classification criteria, we can recommend that work be intensified on centraliz-
ing and specializing repair in specialization branches of an economic region. Reso-
lution of these problems could be done following the proposed plan for rerrous metal-
lurgy.
Ferrous metallurgy enterprises use all three forms of repair organizations central-
ized, decentral:ized arid mixed. The mixed form is used most, whe~tein all types of
_ repairs are done by shop repair services, the repair-machine shops of the enterprise
chief machinist, sponsoring installation-repair facilities and specialized re air or-
ganizations (trusts) of the "Domnaremont," "Metallurgremont" or "Energocherme~" type.
Major overhauls comprise 28-32 percent of the total work volumes of these organiza-
tions, and 68-72 percent is accouated for by routine repairs.l However, ttie depart-
mental nature of the subordinat~on of these organizations to the Ministry of Ferrous
Metallurgy leads to enormous un~ustified expenditures. A metallurgica' plan�is to-
tally uninterested in lowering the cost of repairs done by contractor organi~ations,
since such reduction is not reflected in any way in the metallurgical plan'c's bal-
ance. On the other hand, a repair trust has no practical interest in reducing repair
time, inasmuch as an increase in~profit is not always expressed in lower repair costs.
Lvaluating the activity of repair trusts in terms of volume indicators and the forma-
tion of incentive funds based on them does not ensure a proper combinat3on of con~
tractor and client interests. Department~lly subordinated, the trusts are not in a
position to create a strong material-technical base. The level of machinery avail-
ability per worker at "Energochermet" trust is one-third lower than for power repair
organizations of the USSR Ministry of Power Engineering and Electrification.2
It has become necessary to improve the branch equipment repair system in ferrous me-
tallurgy. In our opinion, it is appropriate in the llth and 12th Five Year Plans to
transfer repair trusts to the subordination of machinebuilding ministries producing
technological equipment for ferrous metallurgy. Such a reorgani2ation will permit
a maximum concentration of the eff.orts of these ministries at all stages of produc-
- tion, beoinning with designing, planning and producing the machines.and ending with
their operation and repair. Under such a system, the equipment producer takes on all
repair obligations. Our calculations show that the use of sponsorship installation-
repair by Elektrostal'skiy Heavy Machinebuilding Plant (EZTNi)9 at Ukrainian SSR plants
provides an opportunity for eliminating bottlenecks in equipment operation by improv-
ing equipment design and increasing durability, which as a whole permitted an 11-
percent reduction in repair expenditures in pipe industry in the lOth Five-Year Plan.
It is appropriate for repairs to be done on equipment groups 1, 2 and 4(general in-
dustrial, interbranch and other branches) by ~pecialized rayon repair associations
formed on the principle of territorial-bra:ich affiliation. ~
The r..~ablem of producing commonly used repair items has been discussed repeatedly in
the economic and special literature. The ineffectiveness of producing items in shops
1S. S. Aptekar', "Sovershenstvovaniye khozrascheta v chernoy metallurgii" [Perfecting
Cost Accounting in Ferrous Metallurgy], Moscow, Izd-vo Metallurgiya, 1978, p 119.
2iRazvitiye form upravleniya ekonomikoy" [Development Forms of Economic ManagementJ,
Moscow., Izd-vo Mysl', 1978, p 126.
3EZTM produces pipe-rolling equipment.
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Territorial-Branch Repair Organization Plan for A SpeciaXization Bxar~ch (using ferrcu~s
metallurgy as an example)
(1, /OTDA AbPC EUNAAN3ALLNN 3 O~MOtiIN- ~
4ECHOfO CANOMAJ
~2~ BE~aaw4fiMETb,A- KOMt1;~EKTyH7WNE 3J
qyDfN4ECK4A f10A- ~10AGT9ACAN/fID!1N3�
OTDACl1b 8q4CT6A~
- I1PON38C~CT80 PENOHTNbIx N3,QEANH (4)
3a~pya�warotp OIDAG~(BdE1DtS 11Elu~G~yx61~ qEYY,~A~rc:~ I
eN~tnnMtun� acxci~arnl3ra� rnaenor~ME� farar.a�o~:�
nyorwfCKOfO ADMO~iC(!l(lu- I~An~ucd/r=yn� xAnr.KA.~?y~�
06~Ya~QaM11A ~W3qt~flN Mdt DtMOnt - n~,E ~:MOnt �
eaE b~:ot/ ndt bA:a,~
8 fIPOt1380AC7'BO PENIOHTA
_ ~9~ Cf1~UHa1N3VID084MMbIY1 P!'MOMT
- TExH0110~N4ECKOrO 060p~4CSa-
_ HNR yEDnON M~TAlL~yprNN
10 Cf1E4~N3NPOBAMMbIN cEMOMT
OOW~~POMD~WfltMMOPQ N MEHtOT-
OTPACAEDOfO ODOPyQ00AMNA
_ (11 CIIEIjNAAN3N00BAMhbIH PEMOMT
TEXtt0~0~tAyECKDf'0 0600:~AOBAMNA
,QCyIl/X OiDACAEH f1POMdWAEl1 ~
MOC?N
- Key:
1. Ferrous merallurgy (economic region specialization branch)
2. Leading metallurgical subbranch
3. Subbranches (production facilities) producing complete sets of items
4. Production of repair items
5. Plants manufacturing metallurgical equipment
6. Parts-specialized branch enterprises
7. Shops of the chief machinist's service/large repair centers
8. Re~air production
9. Specialized repair of ferrous metallurgy technological equipment
10. Specialized repair of general industrial and interbranch equipment
11. Specialized repair of technological equipment for other branches of industry
of the chief machinist's service (SGM) at metallurgical enterprises as compared with
parts-specialized machinebuilding enterprises has been noted every time.l However,
thz demand for repair items is currently being 90-percent met by SGM shops, about
1iOrganizatsiya i planirovaniye remontnogo khozyaystva metallurgicheskogo zavoda"
[Organizing and Planning A Metallurgical Plant Repair Servi~e], Moscow, Izd-vo Me-
tallurgiya, 1969; Kh. P. Zaytsev et al., "Ekoriomika remontnogo khozyaystva metallur-�
gicheskikh z~vodov" [Metallurgical Plant Repair Selrvice Economy], Kiev, Izd-vo Tekh-
nika, 1974; I. M. Denisenko and K. K. Kapustin, "Ekonomika, organizatsiya i planiro-
vaniye remonta metallurgicheskikh pechey" [Economy, Organization and Planning Re-
pairs on Metallurgical Furnaces], Moscow, Izd-vo Metallurgiya, 1977; "Proizvoditel'-
nost' truda v cliernoy metallurgii" [Labor Productivity in Ferrous Metallurgy], Kiev,
Izd-vo Tekhnika, 1977, pp 73-88; "Razvitiye form upravleniya ekonomikoy," pp 116-130
and others.
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. _
. 1 '
seven percent by parts-specialized branch enterprises and only slightly more than two
- percent by plants manufacturing technological equipment.
It is apparently time to re-examine the ineffective system of providing rayon m~t~1-
- lurgical complexes with repair items. In accordance with the plan presented abtsve,
repair items are being produced by plants manufacturing metallurgical equipment, by
parts-specialized branch enterprises and by shops of the chief machinist's service at
metallurgical enterprises (large repair centers). Under the given structure for pro-
ducing repair items.in the transition period, plants manufacturing metallurgical
equipment should be instructed to manufacture large, unique and specific base parts.
Parts-specialized machinebuilding enterprises must serve as the basis of the branch
- production of repair items, with the rights of affiliates of machinebuilding com-
- plexes, whose number continues to grow in ferrous metallurgy, the large repair cen-
ters of inetallurgical enterprises and, in part, the enterprises of multipurpose sub-
branches, which correspond to average-sized machinebuilding enterprises in terms of
level of organization and volume of outpLt produced. '
COPYRIGHT: Izdatel'stvo "Radyans'ka Ukraina", "Ekonomika Sovetskoy Ukrainy", 1981
11052
CSO: 1821/025
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METALWORKING EQUIPMENT ~
OPTIMIZING EFFECTIVENESS OF MACHINERY AND EQUIPMENT OVERHAUL SCHEDULES
Kiev EKONOMIKA SOVETSKOY UKRAINY in Russian No 10, Oct 81 (signed to p+-ess 12 Oct 81)
pp 39-42
[Article by Candidate of Economic Sciences M. I1'yenchenko: "Methods Questions of�
Determining the Economic Effectiveness of Equipr~ent Overhaul and Modernization"]
[TextJ The large and ever-increasing expenditures on machinery and equipment repair
demand that their economic limits be established. A comparison of minimally possible
major overhaul exper.ditures a~d the established economically expedient si2e of those
expenditures enables us to reveal the degree of effectiveness of the repairs.
= A number of economists have proposed various methods whose advantages and shortcom-
ings have been analyzed by Ye. K. Smirnitskiy and R. Z. Akberdin.l Based on that
analysis, the authors worked out a method which most fully takes into account the
influence of various factors on the econom3c effectiveness of machinery and equip-
ment overhaul. However, in spite of the great advantages of the latter, it cannot
be used ~n practice due to a lack of needed information and to the t;reat labor-inten-
siveness of the calculations, which the authors themselves note.2
_ The problem of scientifically determining the economic effectiveness of ma3or over-
hauls must be sol~~ed with a view towards optimizing the annual machinery and equip-
me~~t major overhaul plan at the production association and enterprise level in ac-
cord with the following methqd: planned ma~or overhaul expenditures for a particu-
lar machine should be compared with the carry-over depreciation fund available for
ma~or overhaul of that machine.
Equipment major overhaul annual plan optimization must reduce the amount of ineffec-
tive major overhaul and expenditures on this type of work by establishing the l~mits
of appropriate expenditures on overhauling and modernizing worn-out equipment.
The question of the appropriateness af a ma3or overhaul must be resolved in the
course of working out the association and enterprise annual equ3.pment overhaul
plans.
~
lYe. K. Smirnitskiy and R. Z. Ak' cdin, "Povysheniye effektivnosti remotnogo proiz-
vodstva" [Increasing the Effect_.~eness of Repair Production]', Izd-vo Mashinostro-
yeniye, Moscow, 1970, pp 13-18.
20p. cit., pp 18-27.
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~ ~ i=
A ma~or overhaul should be considered effective when expenditures planned for~it~~will
be less than or equal to the carry-4ver depreciation fund available for overhauling
that machine, that is, when an adequate source of own financing is available for do-
ing this work. This method of determining the economic effectiveness of equipment
overhaul flows from the existing method of financing it., so its practical introdu~'i
tion d.oes not cause any difficulties. .
The legitimacy of this method resul*.s from the fact that ma3or overhaul depreciation
funds become socially necessary and~ecanomically permissible, that is, an appropxiate
amount of expenditure for this type of machinery and equipment repair service; more-
over, that amount is always known.
If this condition is not met, that is, when carry-over depreciation funds are absent
or less than actual expenditures when it is time to do the overhaul, it will conse-
quently be ineffective, since such repairs will lead to additional expenditures.
This metho~ is very simple to use, since the accounting section of each enterprise
records the movement of fixed assets, calculating for them the amortization of ac-
tual expenditures on both renovation and ma3or overhauls, which will be added to
carry-over value. There is for each stocked item a stock card, on which thts is re-
corded. ~Jsing these documents, we can analyze the dynamics of depreciation fund use
- for overhauling a particular item, that is, we can trace how our own ma~or overhaul
depre~.iation fund is used for each year of operation of a machine. Carry-over major
- overt~aul deprec~ation fund should be taken to mean the difference between the calcu-
lated depreciation for major overhaul for all preceding years of machine operation
and actual outlays on major overhauls and modernization done during that period.
Using PPR [planned preventive maintenance] system normatives and depreciation norms,
- as we11 as actual equipment stock cards, the Kiev Relays and Automatic Machines Plant
has worked o+xt descriptions of the value rotation process for 10 of the most common
models of machinebuilding equipment. The results of their analysis of the character-
fstics of value rotation of the machinebuilding equipment studied ar.e given in the
tatie [following pageJ.
The proposed method demonstrates that ma~or overhauls are economically effective for
the 3171 surface grinder only up to the eighth year of operation. It is economically
ineffective to overhaul this machine after the eigt~th year of its operation since the
carry-over ma~or overhaul depreciafiion fund will only be 178 + 184 = 362 rubles by
- the end of that year, and major overhaul expenditures will be 1,100 rubles. For
that same reason, it would be economically ineffective to overhaul the model 6N81
universal milling machine in the llth year of operation, the model K116G eccentric
presses in the seventh year of operation and the model PD-476 hydraulic presses in
the seventh year of operation (see table).
At the same time, the calculations show that a comprehens3ve form of repair services
organization ensures a reduction of ma~or overhaul expenditures to a 1eve1 at which
the economic effectiveness of ma3or over~iauls on all equipment is ensured and a ~av-
ings in depreciation funds is even achieved, which represents r.et income and _onfirms
the legitimacy of the proposed me~hod oP determining the economic effectiveness of
machinery overhaul. �
According to this method, overhauling a specific machine will become ineffective at
a given level of outlays in the l-th year of operation. In this instance,
4
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0
.
.
g?~ : = = = = = = = ~ ~ ~
~
y. . ~
C ~ ~ ~
C'.+ i~~i~ vx~ ~t= ~ ~ ~ ~ ~ 1~ O C~ ~
o m.;~ o~~p ~
~ e O> p t~ mC C C i7 ~ ipC ~~y' t0
i ~j f N R: r i~D ~ N C1 ~
y : ~ ~ ? T T T 'F 'F ~
c
N � ~ E ~
A ~j ~
It ~C N ~ ~ N ! R~! A ~ ~
~ � ~ n ^ e. Fri' e~ ~ ~ t~
0
~ ~ _ ` ~ + .,F ? + T "'F ? "F' T ~
W ~ `i ~
O ~
d i ~ ~ u~ ~y J
m O � 1; u: ~ ~ e~ c~ t' u: tD fA ~
t-~ q f~, ~P ~ N ' " ~G ~ ~ N 'd
o ~ ` � C + t �F + ~ I ~ ~ Np,,
U O s � c -
~ - ~ iE
N ~ F . ' A G!
~ v ~ ~ V ~ ~ A ~ a~ ~ ~ ~ ~i ~i u: O I
? ? R b ~ ~ c. q O ~
~ s~ ~ , c~. ? ? ? I I ~ N~ M
'~j ~1. Re N rl C!
N
O ~i
N O O
~ ~
_ C u1 ~ ~ � ti-I ~-1
Gl 1~� t ~ 1~ O~ N ~ f0 ~ N `rl 1J
a�i~:~ � g ^ ~ ~ ~ N R N N o
R N ~
~ a~ ,,r,i ~Cxt-I-C1M+H~/[)-AK~.~n':
i-~
second variant, when the planned modernization eliminates the obsolescence completely:
r r
CA ~C K~'CN +N~~ I> S' (CKt +Ci t Ht/t)~nK �r~ '~O~I V G(~
j~~0
where I'> 10 years .
Having solved both of the a~bove conditior?s, we have ob~ective i~dicators of the effec-
tiveness of major overhauls and the appropriate limits of expenditures on them and
optimum periods for the machinery to operate. The sufficienfi coadition is an objective
32
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- criterion of the actual effectiveness of a ma~or overhaul. The necessary condition
is an objective criterion of the limit on economically expedient major overhaul ex-
penditures. Both conditions also determine the optimum service life of the machine.
;
It should be added that a sufficient condition is a criterion of the effectiven~g~
of a major overhaul (including modernization, when necessary) foremost because addi-
tional expenditures are not required to finance it and, given appropriate repair or-
ganization, we even ensure a savings in depreciation funds which reptesents a net in-
come . ~
It goes without saying that, given a sufficient condition, the depreciation per~od
will serve as the limit of machine operation and normative outlays cn ma3or overhaul
for that period will always be less than the depreciation fund for that particular
type of repair and will generally be less than the co~t of a new machine in those
instances when the depreciation norm for major overhaul is less that the depreciation
norm for renovation, which testifies to rather rigid, but nonetheless entirely fea-
sible, restrictions.
COPYRIGHT: Izdatel'stvo "Radyans'ka Ukraina", "Ekonomika Sovetskoy Ukrainy", 1981
11052
CSO: 1821/025
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METALWORKING EQUIPIrI'r.NT
IMPROVING METALWORKING-EQUIPMENT INVENTORY STRU~TURE IN MACHINE BUILDING
Moscow STANKI I INSTRUMENT in Russian No 8, Aug 81 (signed to pres$ 21 Aug 81) pp 1-2 _
[Text] An important role in tha resolutions adopted by the 26th CPSU Congress regar-
ding acceleration of scientific-technical progress and improvement of the efficiency
of consumer-goods production is assigned to the various branches of the machine-
building industry, which provide the basis for technical re-equipping of the national
economy.
"Basic Directions to Be Taken By the Economic and Social Deaelopment of the USSR in
1981-1985 and over the Period Through 1990," a document approved by the 25th CPSU
Congress, calls for the output of machine-building and metalworking products to in-
crease by a factor of no less than 1.4 during the llth Five-Year Plan. The machine-
building industry is to improve production efficiency by development of advanced
technology, increased specialization, improvem~t o~ the structure of the metalworking-
machine inventory, an increase in labor productivity, and rational utili2ation of
basic manufacturing stocks and other material resources.
Any further increase in labor productivity in machine building will in large measure
be determined by the level of inechanization and the qualitative and quantitative in-
dices of the metalworking-equipment inventory. Systematic renovation of the equip-
ment inventory and its supplementation with modern automated and precision metalwor-
ki~lg machine tools and machinery is an important governmental goal in whose achieve-
ment all organizations and enterprisea concerned with various aspects of the technical
re-equipping of the national economy should take an active part.
"Basic Directions to Be Taken by the Economic and Social Development of the USSR in
1981-1985 and over the Period Through 1990" sets the following goals: "To improve
the structure of the metalworking-equipment inventory in machine building by in-
creasing the output of heavy-duty special and multifunction machine tools, advanced
forging and pressing equipment, and automated production lines and machine groups.
To provide for the priority refitting of machine-building enterprises with new metal-
working equipment."
Producers' associations, enterprises, and organizatione in the machine-tool industry
achieved definite results in outfitting machine-building facilities with modern equip-
ment during the lOth Five-Year Plan. The output of single-purpose, specialized, and
multifunction machine tools (in terms of market value) rose by 76X, while that of
machine tools with digital process control increased by a factor of 2.4.
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.17
More than 80C automated production lines were manufactured for factories in the auto-
mobile, tractor, and agricultural-machinery industries. A total of 550 automated and
semiautomated lines were built for machine-building plants.
Over the last five-year plan, 2140 new equipment models were manufactured and tpsted
and 590 obsolete models were taken out of production. The proportian of products
of the highest quality grade (with respect to total commercial output) rose from
7.6% in 1975 to 41.2X in 1980; for metal-cutting machines, this index amounted ~to
- 49.8% in 1980, as against 11.5~ in 1975. This made it possible to outfit new machine-
building plants with modern metal-cutting equipment and to overhaul existing plants.
Improvement of production efficiency in machine building requires a substantial in-
crease in the output of automated equipment, primarily automated and semiautomated
metal-cutting machines and automated production lines for machine building and metal-
working (including reorganizable lines), special and single-function equipment, mach-
ine tools with DPC (especially multifunctional machines with automatic tool exchange),
~ equipment complexes controlled from a central computer, and equipment f3tted with
automatic program-controlled manipulators.
The llth Five-Year Plan provides for an increase in the proportion (in terms of
market value) of automated machine tools to 75% of total machine-tool output. The
output (in terms of market value) of automatic and semiautomatic metal-cutting mach-
ines will be increased by a factor of approximately 2, that of automated and semi-
automated machine-tool lines for machine building and metalworking by a fac:tor of 1.5,
and that of inetal-cutting machines with DPC by a factor of 3. The proportion of spe-
cial, single-function, and multifunction machine tools will amount to 24.1% of total
machine-tool production.
~ The most important goal to be achieved in the manufacture of this equipment is a
substantial improvement in its technical level and quality. The llth Five Year Plan
calls for raising the throughput of inetal-cutting, forging, and pressing machines and
of casting and woodworking equipment by a factor of 1.5-1.6, improving their reli-
ability and service life, and increasing the precision of inetal-cutting machines
by no less than 20-30%.
In accordance with the scientific-technical and production goals that have been set,
the Ministry of the Machine-Tool Industry has worked out the variety of equipment
models to be available for the period 1981-1985. Among machine tools that will be
- produced over this period, automated and semiautomated machines belonging to all
technological groups will account for more than 60~6 of the total number of models.
During the current five-year plan, 300 machine-tool models are to be introduced
(replacing models manufactured earlier) and 305 models are to be taken out of pro-
duction. Production is to be begun for 427 machine-tool models (not previously
manufactured), including 297 models of automated machines. Tfie new machine tools are
to be characterized by a high degree of automation and higher precision levels; it
will be possible to use them for implementation of new technological processes.
New machine tools will be designed so as to provide standardized model-size series.
Design of more than 200 machine-tool models with DPC, including 55 models of multi-
function machines with automatic tool exchange, is planned for the llth Five-Year
Plan. The technological level of precision machine tools is to be improved by
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automation, enhancement of machining precision, and expansion of the range of high-
precision and extra-high-precision available. There is to be a qualitative change
in the variety of heavy and custom-designed machine tools produced.
The following technical solutions must be implemented in order to achieve the planned
increase in the throughput of ine~al-cutting machines: an increasP in drive power,
use of new types of tools and intensified cutting regimes, performance of a greate~
number of technological opprations by a single machine, an increase in the degree
of automation of machine-mechanism control, use of automatic manipulators, outfitting
of machines with devices and attachments that give them. g~~ater technological capa-
bilities, etc.
The output structure for unachine tools will see an increase in the proportion of
precision machines, particularly high-precision and extra-high-precision units
(grinding, jig-boring, and fine-boring machines). It is proposed to bring 155 models
_ of high-precision machine tools into production over the course of the five-year
plan. New DPC systems (buil~-in and adaptive) are to be developed for this group of
machine tools. Precision norms for machine tools are to be made more stringent by
improving the quality of bearings and ball-bearing screw coup?.es and employing real-
time monitoring and fine-ad3ustment systems. Wider use will be niade of tools fab-
ricated from cermets and new synthetic m~terials in the finish machining of com-
- ponents.
The production of automatic machine-tool lines for branches of the machine-building
industry engaged in mass and large-scale serial production will be increased and
multipurpose lines and line groups will dominate total output.
Together with improvement of line throughput and reliability, reduction of the
number of personnel required for equipment operation is also of great importance.
Machine-tool fabricators in Minsk have taken effective steps in this direction. The
Minsk Special Design Bureau for Automated Production Lines has developed automated
machine clusters that combine individual equipment types, including automated lines.
A11. the machine tools and machines within a cluster are linked by asynchronous
transport and storage systems that make iC possible to virtually eliminate manual
ldbor in loading, unloading, transporting, and storing articles to 'ue machined.
For example, the complex for machining of connecting rods and rod covers built by
the Minsk Industrial Association for Manufacture of Automated Lines imeni 60-Letiya
Velikogo Oktyabrya includes five automated lines, seven continuous surface-broaching
machines, six rotary grinders, six fine~boring machines,five honing machines, an
" electrochemical unit, and other types of equipment. Use of this complex freed 375
workers and permitted an annual savings of 800 thousand rubles.
The Moscow Machine-Tool Plant imeni Sergo Ordzhonikidze manufactures a fast-
switchover automated line with DPC intended for machining of shafts having different
configurations (mare than ten types). The line switchover time is 1.5 h).
Automatic manipulators are an important tool for raising the automation level in the
machine-building industry. The llth Five-Year Plan provides for accelerated expan-
sion of the production of inetalworking-equipment groups fitted with automatic man-
ipulators.
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_
The automated line designed by the Experimental Scientific-Research Institute of
Metal-Cutting Machines for machining of electric-motar shafts, which consists of
three machine tools with DPC and an automatic manipulator with a lifting capacity
_ of 160 kg, makes it possible to increase labor productivity by a factor of 3'(wi.th
two-shift operation). Scientific-technical work ~onducted at the Institute will
provide the basis for the future range of automatic manipulators to be produced.
Forty organizations and enterprises subsumed by the Ministry of the Machine-Tool'
Industry are participating in work on further expansion of the manufacture of ,
automatic manipulators. Special attention must therefore be paid to the creation
_ of standard types, units, and specifications in designing manipulators and auxi-
liary components for them. About 140 models of inetal-cutting mach~nes have now
_ been selected for outfitting with automatl.c manipulators. Research and design
on the new generation of manipulators, which will have better technical-economic
indices, must be expanded.
- A great deal of work is to be done in improving the effectiveness of development
work at production facilities with a view to introduction of new metalworking
equipment. -
Curremt organizational practices pertaining to development and introduction of
new technology must be reviewed and modifie3, with different stages (design,
development of technology, fabrication of equipment and special tools, etc.)
being carried out in sequence. Interesting experience in this area has been
amassed by the Ivanovo Machine-Building Industrial Association imeni 50-Letiya SSSR,
which switched to a parallel flowscheme for development work and introdsction of
new technology; this made it possible to reduce the time required for introduction
of multifunction machine tools with automatic tool exchange by a factor of 3-4.
~ The experience of Odessa machine builders in the design and commercial introduc-
tion of a series of multifunction machine tools with DPC and automa.tic tool ex-
change is noteworthy; their throughput is 3-4 times that of the analogous machine
tools produced previously and 8-10 times that of general-purpose machine tools.
The horizontal and vertical machines in this series consist of standardized~~units
and are constructed on the modular principle. In order to reduce development time,
special engineering-technical groups were set up and carried out all the variaus
phases of their work in parallel with the designing of the machine tools. Planning
of the new series was begun in 1978 and two prototypes, models 2204VNI~'4 and 2Z54VNIF4,
were built and tested under industrial conditions in the first quarter of 1979.
Improvement of the industry's technical level will in large measure be associated
with technical re-equipping of existing plants, an increase in tlze extent to which
labor is ~echanized, and improvement of inventory structure for metalworking equip-
ment. Some work on outfitting of new and exi~ting plants with the latest machine
tools and machines, technological support equipment, and nonstandard equipment wa..
conducted during the lOth Five-Year Plan. Any further increase i_n production effi-
ciency in the machine tool and tool industry wi11 to a great extent be the result
of purposive work directed at improvement of inventory structure for metal-cutting
machines and other types of equipment.
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All industrial associations and enterprises must fulfill their assigned quotas for
_ elimination of obsolete equipment. The large amounts of funds.allocated to techni-
cal re-equipping of plants must be used for acquisition of heavy-duty automated
equipment. By the end of the llth Five-Year Plan, the inventory structure of inetal-
cutting machine tools is to include 10-11% machine tools with DpC, up to 24~ special-
ized, single-purpose, and modular machine tools, up to 9.3% high- and extra-high-
precision machine tools, and up to 18.2% automatic and semiautomatic equipment
belonging to all technological groups.
Special attention must be paid to rational utilization technological equipment.
~Reduction of idle time, improvement of the interchangeability factor= and rational
utilization of equipment resources will provide the basis f or a further rise in
production efficiency. .
COPYRIGHT: Izdatel'stvo "Mashinostroyeniye", "Stanki i instrument", 1981
24 78
- CSO: 1821/012 E~
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