TRANSLATION AND EVALUATION OF SOVIET BOOK ON ORGANIZATION PLANNING AND ECONOMICS OF AIRCRAFT PRODUCTION - 1963

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• Sequence Number: 1
• Publication Date: April 24, 1964
• Content Type: REPORT

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50X1
This materiol contains information affecting the Notional Defense of the United States within the meaning of the Espionage lows, Title
18, U.S.C. Secs. 793 and 794, the transmission or revelation of which in any manner to an unauthorized person is prohibited by low.
1 I
50X1
COUNTRY ussit REPORT
SUBJECT Translation and Evaluation of Soviet DATE DISTR.
211. Apr 64
Book on Organization P1PrIning and
Economics of Aircraft Production - NO. PAGES 1
1963
REFERENCES
DATE OF
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INFO.
PLACE &
DATE ACO.
THIS IS UNEVALUATED INFORMATION
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a partial translation and
evaluation of the Soviet book 2/Banization, Planning and Economics
of Aircraft Production. The contributing authors are:
D. P. Andrianov
M.Z. Gendel'roan
A. V. Glichev
S. I. Didenko
A. N. Zhuravlev
K. LL Zakharov
S. V. Mbiseyev
L. N. Orshevets
N. A. Orlov
P. G. .p.spar
S. A. Sarkisyan
D. E. Stank
A. N. Ter-Markar
V. I. rfikhomirov
V. V. Cltsnokov
Ye I. Sherman
L. N. Elsbert
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015oxi-Hu
11501
GROUP I
Excluded from automatic
downgrading and
declassification
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I I ARMY
NAVY
AIR
I FBI
IAEC
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of the (13111 member agencies, and to those senior officials of the member agencies who must act upon the information. However, unless specifically controlled
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' Title:
Authors:
Organization, Planning and Economics of Aircraft
production [OrganizatsfYa, Planirovanlye 1. Ekonomika
Aviateionnogo Proizvodstva] Moscow, Oborongiz, 1963
Andrianov, D. P.; Gendeliman, H. Z.; Glichev, A. V.;
Didenko, S. Y.; Zhuravlev, A..N.; Zakharov, K. D.;
Moiseyev, S. V.; Olyshevets, L. M.; Orlov,
Popov, P.O.; Sarkisyan, S. A.; Starik, D. E.;
Ter-Markaryan, A. N.;-Tikhomirov, V. I.; Chesnokov,
V. V.;.Shenman, Ye. I.; El'bert, L. H.
Table of Contents:
Preface
Introduction.
Chapter I
VI
IX
XI
XII
XIII
XIV
XV
XVI
Tasks and Contenta.of the Course
The Aircraft Industry and Its Enterprises.
Fundamental Principles of Organization in
the Aircraft Industry
The Production Process in Aircraft Construction
Organization Of Flow-Line Production
Concentration, Specialization, Cooperation,
Combining and Distribution of Industrial
Enterprises of the Aircraft Industry .
Interfactory Specialization and Production
Structure of Aircraft-Building Enterprises
Organization in Administration of Aircraft-
Building Enterprises
Labor Productivity. Organization, Rating
and Wages
Technical Progress ,and Organization of Pre-
liminary Technical Operations in the Aircraft
Industry ,
Organization of Technical Quality Control of
Production
Basic Funds and Producing Capacity of Aircraft-
Building Enterprises - 259
Principles of Technical and Economic Planning 284
Working Capital and Its Utilization , 323
Cost of Production and Profitableness of
Production-- '336
? Organization Of Maintenance in the Aircraft
Industry . 349
.Principles of Planning and Analysis of Aircraft
Production' 405
Production Schedule and Analysis of Its
Fulfillment
.XVII Organizational and Technical Plan and .Control
of Its Fulfillment
XVIII Material and Equipment Procurement Plan. and
,Analysis of Its.Fulfiliment
XIX Labor Plan and Analysis Of Its Fulfillment
XX Cost-of-Production Plan and Analysis of Its
'Fulfillment 536
XXI ' Financial. Plan and Analysis of Its Fulfillment 570
11
23
37
63
88
107
141
198
239
4314
466
485
506
;
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Chapter XXII Operation-Schedule Planning in the Aircraft
Industry , 591
XXIII Control of Aircraft Production 644
XXIV Principles of Accounting and Balance of the
Aircraft-Building Plant 661
Literature 688
Purpose:
[Excerpts from Preface]: In this book a complex
account is provided of the questions of the economics
of the aircraft industry, of its organization and
planning of production in operation. Concrete ques-
tions of the organization of work of the enterprise
are examined with respect to different types of
aviation factories: aircraft building, engine
building, instrument building and others. The special
features of organization and planning of production
for series as well as fOr experimental factories are
examined.
The book provides a training aidfor students in
aviation institutes and perhaps also will be useful
to engineering-technical workers of the aviation
industry.
Reviewers: the Chair of Economics-and Organization
of Production of Kazan Aviation Institute and Docent,
A. A. Lapshin.
Editor: Candidate oh. Economic Sciences V. F.
Novatskiy.
This: training aid was written by a collective of
the teaching faculty on the organization and economics
of aircraft production of the Moscow Aviation Institute
in, compliance with the program of the one-term
course offered by technical faculties of aviation
institutes.
The introduction and Chapters 1, 2 and 11 were
written. by Professor N. A. Orlov; Chapter 3 by
Candidate of Technical Sciences and Docent S. V.
Moiseevt,Chapters 4 and 19 by Candidate of Economic
Sciences and Docent S. A. Sarkisyan; Chapters 5-and
10 by Candidate of Technical Sciences and Docent
D. E.,Starik; Chapter 6 by Docent P. G. Popov;.
Chapter 7 by Candidate of Economic Sciences and
Docent E.. I. Sherman and Candidate of Technical
Sciences:and Docent K. D. Zakharov; Chapter 8 by
Candidate of Technical Sciences and Docent M. Z.
Gendel'man, Candidate of Economical Sciences and
,Docent A.V. Glichev and Candidate of Technical
Sciences and Professor A. N. Ter-Markaryan;
Chapter 9 by Candidate of Technical Sciences and
Professor it. N. Zhuravlev; Chapter 12 and 13 by
Dr. of Economical Sciences and Professor D.P.
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Andrianov; Chapter 14 by Candidate of Technical
Sciences and Professor V. I. Tikhomirov; Chapter 15,
16, 17 and 22 by Candidate of Technical Sciences
and Docent L. M. 01'shevetsi Chapters 16 and 21 by
Candidate of Economic Sciences and Docent S. 1,
Didenko; Chapters 20 and 24 by Candidate of Economic
Sciences L. M. Elsbert; Chapter 23 by Candidate of
Economical Sciences and Docent V. V. Chesnokov.
The supervision of this collective of authors and
the scientific editing has been provided by L. M.
Wshevets and N. A. Orlov.
The collective of authors acknowledges with thanks
the help of the reviewers and also of the workers
of industry and the related chairs [departments]
of aviation institutes, which they provided toward the
creation of this training aid.
The authors request that all remarks and criticisms
concerning the improvement of the book be forwarded
either to the address of the publisher or to the
Moscow Aviation Institute.
Review and Evaluation. Chapters II, IV, V and VI
are of particular Value in determining the present structure
and general operations of the Soviet aircraft industry. Some
of the criticisms of the industry, particularly regarding its
failure to integrate more thoroughly with the non-defense
industries of the Soviet Union, are particularly Useful.
In tracing the historical development of the
Soviet aircraft industry since the October Revolution, the
textbook underlines the vast influence of mobilization for
World War I/ on the growth of the industry, particularly
through the massive relocation of airframe And engine plants
in the Eastern portions of the country and the post-war re-
establishment of those plants which had earlier been evacuated.
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In the years of the Great Fatherland War,
the aviation industry played an outstanding
role. In only one year (from December 1941 to
? December 1942)'under,conditions of evacuation
,of a number of factories to the Eastern regions,
of the nation and of constructing new aviation
enterprises, the output of aircraft increased
to 3.3 times and of engines to 5.4 times. In
the subsequent years of the war, 120,000 air-
craft were produced [in the USSR] during the
same period that Hitler Germany, operating the
aircraft industry of the Eurcpean.countries
which it had occupied,, produced 80,000 aircraft. p. 13)
/n Soviet terminology, the aviation industry is
considered to include all plants which have as a primary re-
sponsibility the production of aviation products- airframes,
engines, instruments (electrical and elec.tronic). and equip-
ment. The Soviet aviation industry, as 4 priority industry
associated with national defense, has been less affected by
the various industrial reorganizations of recent years. Follow-
ing the dissolution of the Ministry of the Aviation Industry
? (MAP) during the general industrial reorganization of 1957,
? complete control of the aircraft industry including research,
design,. development, and series production of aircraft,
powerplants and all related equipment, passed to the USSR
State Committee for Aviation Technology (GKAT).
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Some indication of the continuity' of personnel
and responsibilities which must have been preserved during
this transfer is indicated by the following employment
history of the current Chairman of the USSR State Committee
for Aviation Technology, Pyotr Vasiltevich Dementlev:
1941-1946 First Deputy Commissar of the Aviation
Industry
1947-1953 Deputy Minister of the Aviation Industry
,1953-1957 Minister of the Aviation, IndUstry
1957-present Chairman of.the USSR State Committee
for Aviation Technology*
In the reorganization of Soviet industry in March
1963, the State Committee for Aviation Technology, along
with other major Soviet State committees., was placed under
general control of the Supreme Council of the National Economy
(VSNKh), which is in turn attached to the Council of Ministers.
Other state committees with a similar level of authority and
jurisdiction include those for. Defense Technology, Radio-
Electronics, Electronics TechnolOgy, Atomic Energy, and
Shipbuilding.
* BSE, Second Editioo1urnits:_
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Although the State Committee for Aviation Tech-
nology is seldom mentioned in the new textbook, the following
statement taken from a discussion'of.the assignment of
specializations to existing plants refers directly to the
control Of the State Committee over series productiOn entera
prises of the aviation industry:
The right of determining the nomenclature of
industrial production and defining the specializa-
tion of the branch enterprises was given to the
State Committee for Aviation Technology in the
same manner that other state committees received
the same responsibility. (p. 83)
Organization of Industrial Processes. For purposes
of definition, the authors divide the processes and activities
of an aviation production enterprise into 'the following three
broad categories:
-a. Basic processes
materials prefabrication
materials fabrication
assembly
testing
b. Auxiliary processes
tooling ,
?ligs and f1xture4
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equipment maintenance
energy transfoi,mation.
c. Service processflo-
supply and warehouse inventory
general plant maintenance (p. 26)
Figure 5.1 (see figures at the end of this text)
provides a breakdown' of specific services.performed under'
each of these categories and sub categories.
Prefabrication is described as the manufacture of.
semi-finished items castings, forgings, hot and cold stampings.
"In modern aircraft construction, materials in the form of
steel and nonferrous castings, welded pieces, stampings and
sheet materials, parts stamped and formed out of plastic,
and so forth, are widely utilized." (p. 26).
? The fabrication stage "basically includes the
fabrication of metal by cutting. To this stage also belong
chemical-thermal, galvanic and electrical methods of processing
and finishing of products." (p. 26)
- Concerning new processes of materials fabrication,
the authors comment:
In recent times a considerably closer relationship
has begun to eitergletWeen the preiabrication
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and the fabrication stage., Thus, for example,
the processes of cold stamping of sheet and rolled
materials have acquired the nature of pressure
fabrication which scarcely requires subsequent
finishing. Casting under pressure, precision
and other types of castings not requiring mechani-
cal primessing of the parts embrace, as it were,
both the prefabrication and fabrication stages.
. A -similar characteristic is found in the forge-
press operations in connection with the increasingly
greater use of coining processes. (pp 26-26)
9
The assembly stage,. which in Soviet industrial
terminoldgvembraCes component and subassembly processes
through final assenibly, accounts, according to the text,
for up to 4O to 50 percent of the volume of work of an avia-
tion plant. (Unfortunately, this figure itvnot related to
a specific aspect of production such as floorspace or man-
hours. In addition, the textIonlyr(e.f:ersj to an "aviation"
plant rather than to a specific type of production, and so
the statement Canikbe taken tO represent an average based
on all types of aviation production from instruments and
equipment'through engines and airframes. On the other hand,
the figure of 40 to 60 percent for all types of assembly.
, ?
does represent a reasonable_ figure for an airframe plant.)
In emphasizing the comparatively large portion of activity
.which is allocated to the assembly stage, the text poin s out:
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A modern aviation engine has more than 5,000
designated parts and an aircraft of medium tonnage
up to 300,000 parts. The requirements for the
precision of manufacture and assembly of parts
are being continuously increased. .The assembly
process of complex items of manufacture (machines,
mechanisms, subassemblies, etc.) is also broken
down into a number of constituent features of its
prodesses, each of which consists of a nUmber of
consecutive operations. '(pp 23-27)
A medium-weight jet aircraft of U.S. manufacture
such as the Boeing 727 jet transport is calculated to have
some 80,000 parts independent of standard fasteners and
rivets. Consequently, the figure of 300,000 probably in-
eludes not only the details, components and assemblies of
the aircraft but the standard parts such as nuts, bolts and
screws as well. It certainly does not include rivets, be-
cause, as the authors state Ilsewhere, there are more than
a million rivets in an aircraft of medium to heavy weight.
The final stage of the basic 'processes is testing,
which, according to the text, is carried out initially at
the plant. "At aircraft construction plants, the factory
tests include a i)togram of Oper4tions at :ihe.aerodrome sec-
tion and at the flight test station (LIS) tof the plant];
at aircraft engine construction plants, the factory tests
include checkout processes and tests' of aircraft engines on
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engine test stands; and in Subassembly and instrument...build-
. ing plants, they include the testing of subassemblies And
'instruments on special stands and in test stations." (p. 27)
Ever since the 22nd Congress of the Communist
Party of the Soviet Union in 1961, the following key words,
related to the development ,of industry in the USSR, have
been Stressed:
concentration
specialization
cooperation .
combination
. According to the program of the CPSU presented
to the 22nd Party Congress:
The development of specialization And cooperation
and also the expedient combination of similar
enterprises is one of the most important conditions
of technical progress and of the rational organiza-
tion of socialist labor.'
The application 'of these terris individually or in combination
refers primarily to a requirement levied on Soviet industry
to achieve greater specialization -in all types. of manufacturing,
and to eliminate the strong vertical structures still apparent
in many phases of industry with their attendant duplication
of production processes. It would appear from the text that
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the aircraft industry, protected by the priority nature
of its work, has maintained .a relatively vertical structure,
containing within its enterprises a number of specialized
production facilities which 'duplicate activities of the'
Soviet industry at large.. i.e. the manufacture by an aviation
radio plant of end products which could best be produced
by a plant of the electronics industry.
An attempt is made, in' some of the following .
.paragraphs, to define the general, meaning of the terms listed
above as they are currently interpreted in Soviet industrial
practice.
Concentration. This term refers to the development
of large-scale enterprise in order to lower the cost of pro-
duction. The production enterprise of high concentration
is assumed to be the most economical, but the authors make
an important .qualification 'by pointing out that the tendency
toward concentration in a small number of large facilities
must be. controlled for strategic reasons and also in order
to reduce the burden on the national transportation network.
The historical Soviet tendency tqward bigness, is, however,
evident in the-Oiscussion of .concentration of. production,
and it is clear that large-scale enterprise is still highly
favored. ?
At the present time, the industry of the USSR
in its level of concentration of production occupiez
; ( ?
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first place in the world. ,Thus, for example,
in the manufacturing industries of the USSR, 68 per
cent of all workers and employees are concentrated
in enterprises with work forces of over 1,000,
and thele enterprises put out.around 75 per cent
of .all products. In similar enterprises of the
USA, only 33 per cent of workers and employees are
concentrated, and they accountibr only 36 per cent
of the total volume of production Aviation
prdduction, in comparison with other branches,
is characterized by a higher degree of concentration. (p. 61
Within the aviation industry, the highest degree
of concentration has been attained in aircraft con-
struction and engine construction enterprises, a
fact which is explained by the special complexity
of design of aircraft and engines. (p. 65)
-
In a manner characteristic of Soviet textbooks,
? the authors conclude by saying that concentration of produc-
tion does not necessarily require'an endless growth of an
enterDrisethaV tncrease in the volume of production can
occur not only as a result of the expansion of _existing
enterprises or conitritction'Of iarge new plants, but that
It can also be achieved by the putting in to service of
several smaller plants which have in combination the same
productive capacity. In other words, concentration can also
be achieved by its opposite, dispersal.
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The utival economic advantages of large-scale
over small-scale enterprise are listed: the higher degree
of introp.factory division of labor; the increased productive
capacity at a faster rate than capital investment in the ex-
. pansion,Of a plant; the better rationalization of raw material
utilization; .the organization of special shops using the
waste produCts from the basic manufacturing processes; the
,teduction of time required to put a new item into series
production; and the greater means available for improvem1-
worker housing, restaurant services, and the operation of
clubs, kindergartens And rioreational
The .argument against massive, concentration begins
with the statement that construction of large-Scale enter-
prises is not always economically or strategically ad-
visable. The following line of argument is ;1.471.'464u-4.
The construction of excessively large enterprises
can lead toward the organization of plants Putting
'out unique products. ?(for example, a specialized fac-
tOry manufacturing landing gear for allaircraft
,donstruction plahts)The develbpment of Unique
[i.e.? singlerproduct3 plants wouldJead toward a
,
44
4
"'reach in the ,complex development of economic,regions
of the nation ana-toWatilexceseiVelY long-range
transport:alone The construction of unique factories
is inadmissible from the standpoint of strategic
requirements, since'the.putting out of commission
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of such a plant would lead toward disruption of
the output of a whole branch of industry. Thus,
in the aircraft industry, it is more expedient to
build "understudy" plants, that is the construction
of several enterprises putting Out one and the
same product. The complexity of the problem of
establishing the scale of an enterprise is further
aggravated by a long list of contradictory factors.
A comparison of the production process in the manu-
facture of hardware in enterprises turning out a single
type of product has demonstrated that the lowest
factory costa can be obtained, as a rule, in large-
scale enterprises.. But if'one takes into account
transportation costs, transportation volume, the
necessity for complex development of the [economic]
regions, the strategic and related requirements,
then instead of a single large unique plant, it
is more rational to develop several medium or
small-sized "understudy" plants. (pp 66-67)
,
An apology is formulated for the industrial
gigantomania of ;tie 1930 r5by, stating that the' scale of
industrial enterprises must be decided to some extent by
the problems of a given historical-stage of Socialist develop-
.ment. Admitting that, in.the course of the first and second
five-year plans, the Soviet government concentrated primarily.
on the creation of giant enterprises, the authors explain
that this course of action was dictated by the limited ye-
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sources of the nation, particularly in the availability of
qualified cadres. During this same period, according to the
text, the experience of the capitalist nations in the develop-
ment of industrial enterprises was utilized to a great extent,
implying that the faults of capitalist industrial planning
were necessar* and unavoidably incorporated into Soviet
industrial.planning. The authors then go on to state one
of their major theses with regard tO the aviation industry,
which, it should be remembered, incorporates the manufacture
of airframes, engines, instrumentsland equipments:
At the'present-time, under the conditions which
have now been achieved of a high degree of
development, of production, it is more expedient,
as will be seen in our further remarks, to build,
along with the largescale enterprises, also the
medium and small-sized highly specialized factories. (p.67)
The discussion of concentration closes with the
general observation that in present-day. Soviet aviation
enterpriees,' as a result of the introduation of new industrial .
technology, the tOtalrumber Of plat wo'rkers 'is. decreasing
while the 'number of engineering and technical staff is increas-
ing. Even under these circumstances, the text points out,
the scale of production is increasing, an evidence of the
fact that the degree of concentration in Soviet industry is
presently still-on,the increase.
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Specialization. While the term concentration re-
fers primarily to the :Male of industrial enterprises, specializa-
tion of production ha $ reference to the "homogeneity and
seriality of production", in other words to lighly repetitive
serial production of a reduced number of standardized products..
Typically, specialization of industry can refer in Soviet
usage both to specialization of enterprises as a whole Or
to what is termed intra-factory specialization, in other
words the specialization of different sections of a plant
which may .or may not be closely related to one another.
These contradictorTdefinitions tend to make even standard
.terminology somewhat ambivalent. .Rather than indicating a
lapse in the logical processes of the Soviet authors, it
may represent a device by which the authors can discuss the
Soviet aviation industry in real terms While at the same
time paying tribute to the dictates Of the 22nd Party Congress.
In their discussion of specialization, the authors
come fairly close .to raking direct criticisms, of the strongly
-
vertical structure of the aircraft industry in the Soviet
'Union. These oditicisms of:the .existing conditions provide
the soundest basis for estimates of the current structure of
the,Soviet aviation industry. The aUthore'begin by using
the example of a specialized metal prefabrication plant:
In specialized factories for the production of
aviation products, dad rolling equipment is
utilized approximately two times more efficiently
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than in corresponding sections of aircraft
construction and engine construction plants.
Specialized enterprises were the first to
use the. most modern equtoment (Cold forming,
'screw upsetting and automated lines.).(p. 69)
At the.same time, in the tooling 'sections
? of the' aviation and other factOries, production
retains a small-scale series character. As a
result, the labor costs of producing taps,
.micrometers, smooth plugs and other instruments
in specialized 'factories are two to five times
lower, the annual output of production per unit
of floorspacels two to three times greater and
the output of production per unit of capital
investment is approximately 1.6 times greater
than that of the instrument sections of the
aviation plants.
? .?
It is clear therefore ;that, despite the official
efforts of the government to promote greater specialization
throughout Soviet industry, geherally, the aviation industry
under the State Committee continues to be as it was under
the Ministry, a vertically-integrated Monopoly essentially
independent of other kabricattng industries. -It has its
own facilities, either separate or within the' airframe and
engine plants, for the manufacture of auxiliary equipment,
instruments, and other intermediate products Which are in--
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??
corporated in the final output of completed aircraft. It
is also clear, however, that some idquirements are met
by subcontracting or purpose from the general industry:
:
el ?
....About $0 percent. of the manufacturing cost
of an aircraft is abcounted for by purchased
products and:semi-manufactures. Aviation plants
'maintain industrial relations with hundreds of.
enterprises both in the aviation and other branches
of industry, obtaining from them large quantities
of the most diverse products, including certain
tools, and in part castings, stampings, electro-
technical and other products (p. 78).
.The aviation industry, in contrast with other
types of manufacturing, is a complicated field,
uniting all the areas of manufacture of aviation
products (airframe building, engine building,
instrument building, radio industry, etc.). The
manufacture of aviation products (and this clearly
includes aircraft electronic equipment] is concen-
trated 90 to 9.5 per cent in the aviation industry.
In aviation plants, aviation production is pre,- ?
dominant and accounts for 65 to 95 per cent of the
total volume of production (p. 70).
The authors claim that, under the program of the
current seven-year plan (1959 to 1965), measures are being
CONFTDrrtilr
trzi.
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implemented toward further specialization of sem-fabricate
production and the production of standard "normalized"
components. One. of the, examples chosen is the automotive
industry,, In wh ch it is' said that .assembly plants will be
.freed from the manufacture of products not compatible with
'
their basic profile.0 ,
With regard to specialization in the semi-fabrication'
of metal parts, and apparently referring to industry a& a .
whole rather than the aviation- industry., the authors state:
It is believed that, by organizing sPecialized.
production, the number of sections turning out
fasteners can be reduced, to one twelfth and
and Of sections producing castings and stampings
to two-thirds the present number. According?to
prelimiriary calculations, as a result of the
specialization of castings and stamping production
alone during the seven-year plan, a saving on the
order of 1.1 pillion rubles will be obtained. The
total share of tool plants in the production of '
standardiZed and normalized'tools.should be in-
creased about 2 times. In machine building, it is
planned to increase significantly the degree of
specialization in the production of gears, chains,
reduction drives, electrodes, plastic parts and
many other items of production.
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-Increased work toward the specialization of
production in the, aviation industry is also
scheduled during the seven-year plan. (p. 70)
'In the current Soviet industrial :theory, opecializar
tion of in4ustrial prelduction.40 divideajni9 three basic
categories:
a. Article speciqlizatiOn:..the specialization,
of plants for the production of specific
complex finished products.
b. Component specialization specialization
for the production of different finished parts,
components and sub-assemblies.
c. Technological stage specialization- the
specialization of plants in a given category
of technological processes, such as stamping,
forting or casting.
According to the authors, article specialization,
or specialization according to finished products, such as
airframes, engines, instruments and equipment, has been
achieved to a comparatively higher degree in the aviation
industry than in other branches of Soviet industry. The
authors state, however, that article specialization)which
calls for a reduction in the variety of parts and equipment
produced by a given plant, must be subordinated to the need
r ? 1
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of a rational distribution of specialized production for
strategic and economic reasons., Within the heavy machine:-
building industry, the authors single out two large plants,
Uralmashzaiiod in Sverdlovsk and Kramatorskiy Zavod at
Kramatorsk, as examples of plants with too low a degree of
specialization, indicating that these plants are called on
to manufacture complex and diversified prodlicts in single
copies. .
.4
;
Aviation plants, on the other hand, have apparently
achieved a high degree: of speciaUzirtion. According to the
text:
Airframe plants are specialized by the flying
weight of the aircraft (light, medium, heavy)
and even by different type's of aircraft. Avia-
tion engine-building plants are specialized by
type of engines- piston or jet engines- and
also by different types of jet engines (turbojet,
turbofan, etc.)
The text makes clear that the degree of article
specialization in the aviation instrument andoequipment plants
is lower than in the airframe plants, a fact which is hardly
surprising. What is interesting in the discussion of this
subject is the confirmation that there are radio equipment,
instrument, electronics and other specializedplants which
belong exclusively to the aviation industry and not to the
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corresponding branches of the civilian industries. The
authors state in passing that the manufacture of many
inotruments'which.are now being manufactumed by the aviation
industry should [prob4blylbe transferred to instrument-build-
ing plants of general industry. The pertinent passage reads
as follows:
The degree of .article specialization in instrument
building is lower than in airframe factories. The
nomenclature of items.of manUfacture in instrument-
bUilding,plats is still verylarge. Thus, fOr.
example, in one of the smaller instrument-building
plants, the nomenclature of manufactured items,
totals 150 separate designations.
Nearly the same situation exists aldo in.factories
which are producing aviation radio equipment.
Therefore, the development of article specialization
in the aviation industry requires first of all an
increase in the degree of specialization in the
radio-technological and instrument-building plants
by means of redistribution and selection of a
unified list of products. The manufacture of many
instruments, such as manometers, thermometers,
potentiometers, and other control and measuring
devices which are being widely utilized in
different areas of industry, should be transferred
to the general instrument-bUilding plants serving
?
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all industries ri.e..removed out of instrument-
building plants of the aviation Industry]. (pp 70-71)
Component specialization is described as"speciali-
zation according to production of different finished parts
of a complex finished product: individual details, components,
and sub-assemblies". This type of specializationdepends,
of course, on the degree of standardization and unification
Of components in different mechanical systems. After.ad-
vancing the usual arguMents for interchangeability of fittings,
components, and: sub.!..absemblies, th authors go on to charge .
that the present level of standardization in Soviet industry
?
is failing "by a long way to answer the problems of develop-
ment of mass specialized industry."
With particular reference to aviation manufacturing,
they charge that the per .cent of standardized. and normalized
components is significantly lower than the national industrial
average because most of the components in the aviation industry
are made according to narrowly specialized norms of individual
plants. The text_states:
In aviation enterprises, about 90 per cent of
the standardized and normalized components
falls into narrowly specialized .categories of
items; (parts for airframes are designated by the
letter 'S' [for samolet, or aircraft) and 'parts for
engines by the letter 'M' [for motor, or engine]),
so that the total list of non-standard components
?
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utilized in the aviation industry is large and
the possibility of interchanging different de-
sign elements is small. (p. 73)'
Continuing under the heading of coMponent speciali-
zation, the authors launch an outspoken attack on the present ?
tendency of the aviation industry to retain control over the
manufacturing processes which are unrelated to the final out-
put of the aviation plants. 'Their argument runs as follows:
. The production of componens, the technology
of wAch differs iharply from the technological proc-
esbag of the Main ProductiOn ought to be removed
from aviation factories. This is true above all
of non-metal items of manufacture-- items made
of leather, plastic, organic glass rubber,
textiles, and wood. ?.Plastic components are being
especially widely applied in radio technology and
instrument building (here the authorsoire apparently
referring to radio and instrument plants of the
aviation indtistry) for terminal plates, flywheels
Commutaters. The scattering of production of
. plastic components leads towards poor utilization
of equipment, especially of the single-Purpose.
high-pressure presses. Of the total number of
presses with which the plastics industries are
equipped, only around 26 per cent are in the
enterprises of the chemical industry. Because
of this feet, plants of the chemical industry
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process only about 50 per cent of pressed
plastic materials. The production of manu-
factured items from textiles and.fibers (cover-
ings, casings, etO.) should be delegated to
enterprises of the light industry and of the
textile industry;' the manufacture of wood and
cardboard packaging- to local industry., By
this means progressive technological processes
could be utilized in manufacture. At the presenttime the prOdudion of items made from non-metallic
,
*.materials'iwaviatiOnfaotOries is often carried
out by hand methods.
?
In_the-constimdtion.of.aviation products, a huge
,
number of fasteners is used. Thus, for example,
In the construction of a heavy aircraft over a
million rivets can be counted an hundreds. of
thousands of nuts, fasteners, and other minor
structuralcomponents. In different types 'of
aircraft, more than 50 per cent ? of such details
are identical and: standardized., The largeness
of volume, the similarity of design, and the Use
of similar parts for, different products are
creating the opportunity for centralization of-
production.of. the standardited. and normalized
components in the aviation industry within the
boundaries of economic regions of the nation. (p. 73)
CoNn0,711-1/EL
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The inference is probably justified here that,
even though some 50 per cent ,of the fasteners and fittings
used in airframe construction are identical and standara,
each airframa'plant is nevertheless producing such
details and components for itself. Otherwise, there would
seem to be little reason or necessity for urging the
standardized production of such coMponents on the aviation
industry.
As a final confirmation of the present tendency
I.
of the aircraft industry to hoard al type of production
. 1 .
even reMotelY'eonnected with.th'efinal output 'of aircraft,
the following statement i0.u8if4lt
1
f
It is More expedient :to place in factories
of the electrical industry the production of
such items as resisters, condensers, regulators,
electric motors, and transformers. (pp 73-74)
Another form of specialization is stage or
technological stage specialization, which refers to speciali-
zation by process- c4ing, forging or heat-treating- rather'
than by product. As the Soviet authors point out, the
stage specialized enterprises almost always put out a
product which "undergoes additional mechanical or other
processing in the factories l'hich manufacture the final
product." In other words, stage Specialization it; centered
on the pre fabrication processes.
?
.74`11H-
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The authors. attack' the present tendency of the
aviation industry to carry out its own prefabrication and
tooling operations and calls for the release of these
activities by the aircraft industry to the machine tool
industry at large. The specific passage reads as follows:
It would be rational to transfer all manufacture
.of standardized (normalized) cutting and measuring
instruments, diee for stampings, press forms,
machine tool accessories and forms for casting
under pressure tothe tool making plants, and ,
to concentrate the manUfaettre Of 'special tools
in special,?seetionsrof the aviation industry],
by'sortifig'out'the reiated'eategories of tools
anci redistributing their .manufacture among the
appropriate sections of related factories. There
has, been successful experience in' the specialization
of production of special tools in several of the ?
engine-building plants, where, as a result of the
orpanization of special sections, the out7lut of
tools from the same floor apace has increased
five to ten times. (p. 75)
In their summary statement on the desirability
of specialization of all type's, the authors make the inter-
esting comment that through specialization of production, it
is "sometimes possible to come to'grips with the stagnation'
of departmental workers who are striving to keep a maximum
\.#
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amount of production 'to themselves' in order to depend
less on other enterprises."
In closing their discussion of specialization and
the means of achieving it, the authors point out that separ-
ate methods must be applied to the Western and Eastern rerions
of the nation. They point out that a growth of indu5trii2.
capacity is called for in the Eastern parts of'the nation--
presumably east of the Urals-- under the latest program of
the Communist Ihrty of the Soviet Union. As a result, they
report, it will be more, rational to build new specialized
plants tD,tile ,Eastern regions; and-to're.palliicate and reorganize
?
?
the production of existing plants in the Western region.
Cooperation. This term, one. of the least precise,
in the current Soviet industrial:terminology, apparently re-
fers simply to the industrial,aupply relations among special--
ized industries-- i.e. the supply of raw materials, details,
parts, components, sub-assemblies, and assemblies from one
to another plant. Cooperation is defined primarily as a tanrible
result of 'specialization, and the categories listed for coopera-
tion tend to parallel the specialization categories. The
authors do, however, - point out that:
There is also cooperation which derives from the
excess versus shortage of productive capacity.
In this type of cooperation, the production links
(established between enterprises) arise not as a
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direct result of specialization but as a
result of the presence of excess productive
capacity at one enterprise and a shortige at
others,' such as may.develop in connection
with quantitative and qualitative changes in
the production programs (for example, an air-
craft enterprise manufacturing castings for
an automotive plant). (P. 77)
In our opinion, sufficient evidence is available
to conclude that very little of the aviation-associated
Production is?carriedOut by non-aviation, plants;. that
- .?
there is still a strong tendenc5r,toward'c'entralized and'
direct Control over all types- of the,aircraft-isiociated
production. the stat?nt.cited above does indicate,
furthermore, that .where sUipluS? coacity..exists within ,
the aviation industry-- as it certainly must under present
conditions of hoarding-- it is possible for an aviation
enterprise to apply its surplus capacity to non-aviation
production. It seems entirely probable that. series produc-
tion enterprises of the avition industry-- plants for the
production of airframes, engines, instruments and equipment--
might often.be found utilizing their surplus capacity for
non-aviation production in order simply to justify retention
of tho excess capacity. One example appeared recently in
the western aviation press in a photograph by a British
visitor to an airframe plant in Moscow manufacturing IL-18
turboprop transports which showed parallel production of
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aluminum toy' horses for iaerry-go-rounds.
. The currmAt trend in Soviet industrial planning
is to 'create relative industrial autonomy within each
economic region. However, in relation to the aviation
industry, the authors appear to recommend against this type
of autonomy. They state:
In the aviation industry, as a rule, it is
impossible to limit cooperation to the boundaries
of an economic region, since this would mean that
each region would have to have a whole complex of
enterprises supplying aviation production with
.the reqdite&productS. (p.. 781
Returning to the question .of excess capacity in
the aviation industrys?the authors state that during peace-
time the.productive.apacity of the aviaiion industry is
utilized to a'considerably lower degree than during wartime.
"Consequently,' they say,
the aircraft industry is able to use its excess
capacity in satisfying the demands of other branches
of, the national economy. In doing so, one should
select those items of civilian demand)the production
of which will maximize the qualifications of the
cadres and at the same time preserve the flexi-
bility of aviation plants. (p. 78)
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Further on the authors point out that:
Cooperation between defense plants and
enterpIiiss producing non-military products
properly organized within economic
will ease and speed up the process
zation of industry in time of war.
reric)ns
of mobili-
(p.
This last quoted comment further indicates what
is already known, that there is a sharp cleavage in the
Soviet Union between defense and non-defense industries and
that, at the local or regional level, there is very little
lateral coordination between the two.
Combination.
Ua form of production
of different branchen
rroduction forming an
inter-related wit,1
A combine is formally described as
based on the concentration of froducts
of industry into one combine-Pnterprise.
industrial combine must be oranically
redpect to technology, utility rec,airements,
orgaization and economics."
The authors list two basic types of combines:
a. A combine based on the concentration of
successive processing stages within a single
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enterprise-'for example a metallurgical combine
embracing all operations from blast furnace
through rolling mill for the production of
steel.
b. Combines based on the composite utilization
of raw materials, supplies and energy rather
0 than on similarity of end product-- for example,
a combine of nonferrous metallurigical enter-
.prises with chemical production enterprises.
The authors point out that combines of th&second
type, based on the composite utilizadon of materials, have
appeared in the aviation industry: large aircraft and engine
constructiOn plants ..avek. as a,byrproduct of their. basic .
. .
operation, manufactured articles.for general consUmption.
- ?
This possibility.,Vould preSu'ably Occur in, cases where scrap
metals such as aluminum,alloys, are.uSed for production of
,
consUmer'goods by an airfrabe br,engine plant as a side line.
The first type of combine, the one in which success-
ive processing stages are joined in a single enterprise,
occUrs.in,aviation planta, according to the authors, when
foundry and hot-stamping processes are combined with fabri-
cation and assembly. The authors caution that such acombine
is not intended as a favorabb example and indicate that hot
metal working plants .are now independent branches of industry
which should not be combined with conventional metal parts
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33
fabrication in an aviation factory. A few paragraphs
later the authors go on to say that "the presence of
forge and foundries sections in aviation plants does not
answer modern requirements."
Principles of industrial location. ' In line with
similar statements by Sokolovskiy in Voennaya Strategiya
(Military Strategy] (Oborongiz 1963), the authors criticize
the irregular distribution of the aviation industry in
capitalist countries and go on to point out that industrial
location of the aircraft industry in the Soviet Union has
been carried out on a rational basis in order to make
optimum utilization of natural resources and to eliminate
excessively long hauls in transportation and to provide
strategic protection. The authors report that in the Soviet
Union
a planned movement of industry is being carried
out to the EaSt, where more than 75 per cent.
of the coal reserves, 80 per cent of-water re-
,
?
sources, 80 per cent of the forests, significant
iron ore reserves, and basic resources of non-
ferrous and rare metals are located.
At the present time, more than one-third of
all industrial production takes place in the
Eastern regions of the country.
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In accordance with the program of the CPSU, new
energy sources and new macnine construction centers
must be built in Siberia and Kazakhstan, and the
construction of a third metallurgical base [sic]
for the country must be completed in Siberia.
A rapid build-up is contemplated for the energy,
oil, gas, iron-ore-and chemical industries in
the Volga regiOn, in the Urals, and central Asia
and in the Northern Caucasus. In this manner, the
gigantic scale of new construction will in the
near future result in significant changes in the
economic map of the country. (pp 81-82)
The authors state that, while each region has its
own significant economic and industrial specialties, such
specialization should be.combined with the complex internal
development of each of the economic regions independently.
They then indicate that the aircraft industry must be viewed
separately from the present trend toward relative autonomy
of the economic regions. The text states the following:
Aviation plants should not be built just in
the West or just in the South, and airframe plants
should not be located in one region while engine-
building plants are located in another and instru-
ment plants in a third.
In selecting the location for the construction
of aviation plants, strategiccl
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also taken into consideration, among them the
requirement of being located away from the
country's borders and away from large plants
of other industries which might by the nature
of their work reveal the whereabouts of an
,aviation plant. (p. 82-83)
Basic Production Groups in Aviation.Plants. The
production process, according to Soviet terminology, and the
related plant facilities normally fall into three general
categories: basic, auxiliary and service.
The basic sections of the plant are those used
directly for the manufacture of the main products. They
accommodate all stage5of production and are sub divided into
prefabrication, fabrication, assembly and testing sections.
The auxiliary sections of a plant serve to support
the work of the basic sections and assure uninterrupted flow
of activity in the basic sectbns. The auxiliary sections
can be divided in a number of ways. In general, their main
task is to provide and maintain all the tooling and equipment
required for production in the basic sections, the various
types of energy required, including electricity and compressed
air and also repair, maintenance, and modernization of plant
and equipment.
The service sections are those which are needed
for the general support of the basic and auxiliary sections.
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They provide storage facilities, control, general supplies,
maintain inventories, perform testing of materials, tools
and instruments and provide other services, euch as packaging
. and shipping.
Intra-plant specialization. In general, the
sub-divisions of the plant.correspond to the classification
of a finished aircraft product, such as final assemblies,
sub-assemblies and components. The typical form of speciali-
zation within an airframe plant is specialization by cate-
gories of assembly, such as fuselage, wing or empennage.
This same form of specializAtion for:shops itsekhil also
reaches down into the sections, as for example the following
sections of an empennage shop: .stabilizer, rudder and ele-
vator sections. The authors state explicitly:
The .production output of an aviation factory.
influences the structure of the plant by the
design-technological breakdown. Thus the major
parts of an aircraft (fuselage, wings, empennage,
etc.) predetermines the profile of the major
assembly shops of an aircraft construction
factory (see figure 5.1). Specialization of .
the mechanical, mechanical-assembly, and metal
welding shops in an aircraft engine factory
.has developed under the influence of the con-
struction-technological breakdown of a ramjet
engine with a centrifugal compressor (compressor
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body, compressor rotors, turbine rotors,
.combustion chamber, fuel injection with nozzle
junction box assembly, etc.) (see figure 5.2).
The authors then point out that, in sub-divisions
below the assembly level-- i.e. into parts fabrication and
prefabrication-- specialization moves from the article
specialization into the process specialization according_
to the various metal-forming and treating processes em-
ployed in the fabrication of parts. The authors use the
example of an engine plant, avoiding as always the use
of airframe plants as specific examples. This device con-
firms the greater Soviet sensitivity about information on
airframe plants and, consequently, their greater importance
in an arms control environment.
If the structure of production were formed
only through the influence of the design-
technical breakdown of the engine, then the plant
would have the article-sub-assembly specialized
shops, each shop with a complete manufacturing
cycle. In each of these shops several opera-
tions- forging, casting, sanding, metal welding,
heat-treating, assembly and other types of work-
would take place. However, in terms of modern methods
and techniques of production, the provision
for all of these types of processes in all of
the specialized shops can result in a lower
utilization of expensive and highly productive
4
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equipment. This consideration has led to the
creation within factories of separate, specialized
stamping, forging, castinglheat-treating and
coating shops (p. 97).
In conclusion, the authors call for further
specialization primarily at the semi-fabrication end of the
production cycle-- the processes dealing with semi-fabricated
parts and components, the sub-contractihg of which would
permit a decrease in the number of bade shops in the air-
frame plant itself. The authors call for the organization
of new plants to produce semi-fabricated materials, components,
sub-assemblies and even final assemblies. In closing they'
say that the conditions must be created for the manufacture
of many semi-fabricated articles, assemblies and components
by independent production facilities.
Composition of the Basic Production Shops and
Sections in Aviation Plants. Going back to the definitions
of the basic production processes, the authors make an
attempt to categorize the activities within each of the
sub-divisions of the basic activity of a plant: prefabrication,
fabrication, assembly and testing.
The prefabrication shops perform the forging,
casting, and rough machiang of metals. The authors state
that the most highly developed forging and casting shops
are in the engine manufacturing plants and that 9 to 10 per
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cent of labor in engine manufacture is used in casting
process. In addition, they state that numerous types
of casting shops exist in_a single engine plant, correspond-
ing to either the technological specialization (for example,
precision casting) or the article specialization (for example,
aluminum or magnesium alloys).
In the prefabrication stage of airframe construction,
according to the authors, preliminary stamping work takes up
the largest share. They state that while in engine production
stamping processes account for 3 to 4 per cent of the total
of labor they account for 8 to 12 per cent in the construction
of light aircraft: "More than half of all the components of
a light aircraft are manufactured in the preliminary stamping
shops, and the nomenclature of each shop reaches several
thousand component designations." Laboring the obviousIthe
authors state that in the fabrication stage of the basic
production, the technological rather than article specializa-
tion is much more likely to obtain. They point out that
0
article specialization commences in the assembly shops,
but that in the fabrication sections of a plant, he
specialization by type of process-- and covering a fairly
wide range of articles,- is more likely to be found:
the general mechanical shop of one of the aircraft
construction factories consists of four sections: turret
lathe section, for fabricating large components; milling sec-
tion; fitting section; and 'a section for the assembly and
test of auxiliary fittings." In the article specialized
shops, there are also article specialized sub-sections
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concerned with a single component of a major assembly, for
example, a section for the components of the forward landing
gear wheels and a section for the comPonents of ,the main
landing gear or for components of the hydraulic assemblies
of the landing gear.
Implying that such Conditions do not presently
obtain, the authors say that it would be desirable "to
have sub-sections specialized for the manufacture of
constructionally and technologically similar parts. In
this regard a great deal of help can be found in the dassi-
fication of components according to design-technological
indices. Thus, all mechanically fabricated components
of a light aircraft are divided into 28 classification
(brackets, fittings, arms and levers, cylinders, wing bolts
and so forth)".
The authors then proceed toarelatively useful
discussion of the organization of assembly shops in aviation
enterprises. They appear to refer to the work of the final
assembly shops as installation-assembly operations and to
that of the intermediate assembly shops as mechanical-
assembly operations.
The most widespread development of the inter-
mediate assembly shops has taken place in the
airframe plants. the majority of cases,
these shops are,organized according to an article
eni7IMPIVT-1/1?
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:?141z
designation, i.e. in each shop there are con-
centrated the sub-assemblY, panel, jig and
jigless assemblies Of one or several final
-sub-assemblies.
In some plants there are intermediate
assembly shops which carry out the assembly
of components (frames and ribs) for all'the
sub-assemblies of the aircraft. The establish-
ment of such a shop permits better assembly
mechanization and the adoption of multiple assembly
mechanisms.
The forms of specialization of sections of the
intermediate assembly shops are of three types:
.article specialization, in which the section is
responsible for the assembly of all parts of a
given unit (including sub-assembly, panel,, jig
and jigless); technological specialization,
according to the assembly stage, in which each
section carries out one aspect of the assembly
operation but on all the sub-issemblies. As
experience shows, the last form of specialization
is the most advisable.. In this form, the sections
for sub-assembly and panel assembly manufacture sub-
assemblies and panels which are constructionally
and technologically similar (for example, double
or single curvature panels). This condition creates
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the prerequisites for increasing the level
of work- mechanization, for better use of the
floor space and for the adoption of standardized
multiple devices. (p. 106)
Another important statement, permitting a clear
definition of activities in a final assembly shop as opposed
to intermediate assembly operations, is the following:
Work on the mating of intermediate assemblies,
on systems installation and testing, on electric
cable installation, on the installation of in-
strument panels, etc., is carried out in the final
assembly shop of the airframe plants. (p. 106)
Orsanizationfl Structure of Aviation Plant Manage-
ment. After reviewing the basic chains of command within
an aviation enterprise, the authors point out that, due
to the complexity of avition products, the frequent changes
in the nature of the product, and the high demands on
quality control of the products, the management control
apparatus occupies a proportionately higher weight in the
total organizational structure than in other types of
industry:
Multi-component aviation products and the large
number of varied operations which are carried out .
in the manufacture of components, sub-assemblies
P r- "? ?
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?_1
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and final assemblies increase the role of the
production and planning-expediting system (section
chiefs, team leaders, distributors, Planners,
expediters, etc.). (pp 122-123)
The following material is quoted directly from the text:
At the head of each enterprise is the director,
an agent of the government. He is chosen by the
SovnarkhoZ (and in experimental enteipriges by the?
State Cqmmittee for.Aviation?Technology) and,
according to the principle of one-man management,
.acts as the,manager.of all the production-economic
activities of the enterprise.
The director must organize the work of the whole
collective in such a way that he can guarantee the
output of a high quality product in the quantities
contemplated by the plan, so that he can create
the necessary conditions for the constant per-
fection ?of production and carry out economy measures
in all facets of the production-economic activities
of the enterprise. The director carries out'in-
spection and daily control of the production process,
is responsible for the selection and proper dis-
tribution of the cadres throughout the plant and
guarantees the observance of plan, fiscal and
labor discipline. [Note here that he is not re-
sponsible for_Yarty discipline]. The director
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,
is responsible for the filfillment of agreed-
upon obligations to other enterprises (the
timely delivery of a finished product in a coop-
erative agreement, the timely payment for de-
livered goods, etc.). The director is responsible
for establishing .excellent work conditions in the
enterprise, and he looks after the improvement
of the cultumal and daily conditions of the
workers.
The director is given extensive rights. These
rights were established by resolution of the
Council' of Ministers of the USSR on 9 August'
1955 and in various other decisions.
With the aim of achieving considerablf, independ-
ence and effectiveness in management, the directors
are given the right to: ratify the technological
industrial fiscal plan of the enterprise in re-
gard to all qualitative and quantitative indices
in the event of need to change, within the limits
of a quarter, the plans for hardware production
(except for mass produced goods and with the
consent of the customer); to ratify on the basis
of the enterprise's yearly plan the monthly ;plans
for capital construction and for putting new .
capacity into operation, and also the ,yearly,
quarterly, and monthly plans for capital main..
tenance and repair with limited funds set aside for
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1=45=
that purpose; in time of need to make the necessary
expenditures for the reconstruction of separate
assemblies and for the modernization in accordance
with the amortization calculations; to sell sur-
plus materials, equipment and other valuable
materials not used in the enterprise; to acquire
special equipment, instruments, and materials for
carrying out scientific research and experimental
design work within the limits of the ratified
estimate; ratify and change the structure and
states of the shops and departments of the factory
management within the limits of theestablished
enterprise plan for labor and number of workers
and engineer-technical personnel; establish and
change the rate of pay for the department workers
within the limits of the official rate of pay
and the ratified fund for wages.
The following basic departments of the factory
management are directly subordinate to the director.
-Planning-economic department (PEO) handles the
working out of the entire complex of problems in
the planning and economics and work analysis of the
enterprise, ant also. controls the fuleillment of
all planned tasks and norms as well as the limits
andtasks for the shops and departments in terms
of all indices; it organites.and guides the
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PQ
statistical calculations in the enterprise, and
.handleb the'methodical supervision Of the work
of the economics shops.
,
In several aircraft construction plants there
organized Planning production departments .(PPO)
instead of the planning-economic departments (PEO);
these have the function of effective calendar plan-
ning for all the activities of the enterprise.
'In small factories separate planning departments
are created which carry out all the work in connec-
tion with production planning and dispatching.
The labor organization and wages department (OTZ)
performs work in labor organization, tariffing,
wages, and in norm setting. It 'develops the
forms for labor payments and the system of pre-
miums, and it controls the outgo of funds for
wages.
The chief bookkeeping section organizes and per-
forms all the bookkeeping accounts covering all.
the econotic activities of the enterprise, the
accounts of 'the utilization of resources in the
enterprise, it controls the maintenance of fiscal
discipline and the safety of socialist property.
The technical control department (OTK) supervises
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quality control and product completeness, and
it averts the possibility of waste in production.
The chief of product quality control, like the
chief bookkeeper, is selected or removed from
his position only by a decision of the highest or-
gans following the recommendation of the factory
director.
4
The chief engineer is the first deputy director;
with the director, he shares responsibility for
the work of the enterprise. The chief engineer
establishes the technical policy of the factory.
He answers for the correct and rational organiza-
tion of all technical preparation for production
and for the fulfillment of the factory's technical
development plan. All managers who carry out
technical preparation and serial product production
are subordinate to the chief engineer who is
responsible for the control tests of an aircraft
and its equipment.
The series-design department (S.K4 carries out,
the final design work in conformity with series
production, re-works experimental drawings into
series production drawings, ensures production
by providing working drawings, puts together
specific components and sub-assemblies which
form a completed hardware item and makes changes
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in the series drawings with the aim of moderniz-
ing and improving the design.
The department of the chief technologist (OGT)
develops, introduces and perfects technological
processes, develops special rigging, works out
norms for the use of basic and auxiliary materials'
on hardware, and keeps an eye on the observance
of technological discipline in the basic and
auxiliary production shops. Departments for
mechanization and production automation, which
are subordinate to the chief technologist, are
organized in several large factories. In large
factories for aviation engines there is organized
a department of the chief metallurgist, who carries
out technological functions according to the group
0 ?
of hot-working shops.
?The department of the chief mechanic carries out
the maintenance of the-production buildings,
equipment .and production and utility'machinery; he
supervises their exploitation, the fulfillment
of planned preventive maintenance, the carrying
out of modernization on the operating equipment
in the factory, and the preparation of new and
unique-equipMent. '
, The production chief is the deputy chief engineer
4
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for production; his basic function is to guarantee
the fulfillment of the production program by
means of a regular output organization on the part
of the basic shops. The production chief has
either a production-dispatcher (PDC) department
or a dispatcher department which controls and
regulates the carrying out of the plans for the
shops. The chief dispatcher of the factory is
the head of the PDO.
In recent times councils on reliability and re-
sources have been established in several enter-
prises under the direction of the chief engineer.
The council on reliability and resources is composed
of: the chief of the SKO, the chief technologist,
the chief controller, the chief of production,
and the customer! representative. The basic task
entrusted to the council on resources and reliability'
is to improve the exploitational qualities of the
product, and to increase its reliatality.',Questions
Of reliability and improving the resources of
hardware are decided at the time of planning,
technology evolvement, and production oi the
hardware. This is why such departments as SKO,
OGT, OTK and the production chief should occupy
themselves with such problems at the very first.
The carrying out of the seven-year plan for the
development of the national economy demands the
nnikirtnrNTiAt .
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most extensive increase in the level of production
mechanization and automation as well as the
intensification of the technological processes.
This task can be successfully resolved by strengthen-
ing the organs of technical service in the factory
(SKO, OGT, OGM, etc.). Nevertheless, several
factories are using their engineering-technical
workers incorrectly: as a result of the spread
of administrative and management personnel the num-
ber of designers and technologists has decreased
to 25-30 per cent of the total of the engineering-
technical workers; at the same time in advanced
factories, this figure is 50 per cent.
The second deputy direetor of the factory is the
deputy for material-fiscal problems. Let us
?
look at the functions of the departments which
are subordinate to him:
The department of material-technical supply (OMTS)
provides the enterprise with all the necessary
materials, fuel, etc. The basic functions of the
department are: . making agreements with suppliers
and controlling their fulfillment, organizing
the reception, storage, and distribution of ma-
terials, and also the tontrol of the use of
materials by the shops. All the general factory
material stores are subordinate to OMTS.
hi
,LJ,J f nri\IT;? 11
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,)
The fiscal-marketing department works out the
financial plan for the enterprise and supervises
its realization; it organizes the sale of the
finished products, and develops communications
between Gosbank and her financial organs.
The transportation shop organizes the transporta-
tion of cargo to and from the enterprise, is re-
sponsible for the proper exploitation of all
transportation facilities under its direction
and performs maintenance on them at the proper time.
This shop is also in cherge of intra-factory
and in small factories intra-shop transportation
of products and materials ?
The production cooperation department (OKSP)
carries out the same functions as the OMTS but
only in the purchase of semi-fabricated, pre-
fabricated, and fabricated hardware. The OSPK does
not exist in small factories.
The capitalconstruction department handles all
problems of construction and reconstruction in
the enterprise: In factories with a volume of
capital construction greater than 15 million
rubles, the. position of deputy director for capital
construction may be established with the department
?"r
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of capital construction being subordinate to
that position.
The housekeeping (khozyaistvennyi) departnont is
responsible for the immaculate condition of all
parts of the industrial area (it tends to cleaning
and planting) and it provides the enterprine with
housekeeping inventory, and handles the office
and factory printing office.
The assistant director for cadres is responsible
for recruitment, training and distribution of
personnel throughout the factory, as well as for
plant security. The personnel and plant safety
department (commandant's office and the bureau of
absences). is subordinate to assistant director
for personnel.
The assistant director for social-living conditions
problems is found only in lare factories. He
manages the housing and communal services lepart-
ment and the living conditions institutions
(nurseries, kindergartens, polyclinic, dining hall,
etc.).
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