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March 2019 (published: 27.03.2019)
Number 1(36)
Home > Issue > Technique of decision-making about the transfer of the business process
of the industrial enterprise to outsourcing
Shimokhin A.V.
In organizations that perform various processes and produce a large range of products, the use of outsourcing as a tool to solve issues connected with cost reduction, improving product quality and management is particularly relevant. For the selection of processes for outsourcing, the article proposes a classification of the main production processes by labor intensity, frequency of use in an industrial enterprise and efficiency, which is proposed to be assessed by such parameters as: scrap, lead time, availability of work time. Bringing these parameters to a single factor allows you to apply ABC analysis to rank the business processes of industrial enterprises according to their effectiveness. It has been proposed to apply ABC analysis also for ranking business processes by labor intensity and XYZ analysis to determine the frequency of use of processes in an organization’s activities. Thus, a mechanism has been developed that determines the priority consideration of business processes of industrial enterprises for outsourcing on the basis of two-factor ABC analysis and XYZ analysis. The conditions are considered under which outsourcing a business process, using the mechanism proposed in the article, is an effective solution. The main objectives of outsourcing for an industrial enterprise are also presented, and some conditions that must be fulfilled when transferring the business process to outsourcing are considered depending on the priority goal of outsourcing. The practical significance of the work lies in the possibility of using the results of this study in matters related to the transfer of the business process of an industrial enterprise to outsourcing.
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Keywords: outsourcing, business process of an industrial enterprise, two-factor ABC analysis, XYZ analysis, efficiency of a business process of an industrial enterprise.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
UDC 338.32.053.4
Technique of decision-making about the transfer of the business process
of the industrial enterprise to outsourcing
In organizations that perform various processes and produce a large range of products, the use of outsourcing as a tool to solve issues connected with cost reduction, improving product quality and management is particularly relevant. For the selection of processes for outsourcing, the article proposes a classification of the main production processes by labor intensity, frequency of use in an industrial enterprise and efficiency, which is proposed to be assessed by such parameters as: scrap, lead time, availability of work time. Bringing these parameters to a single factor allows you to apply ABC analysis to rank the business processes of industrial enterprises according to their effectiveness. It has been proposed to apply ABC analysis also for ranking business processes by labor intensity and XYZ analysis to determine the frequency of use of processes in an organization’s activities. Thus, a mechanism has been developed that determines the priority consideration of business processes of industrial enterprises for outsourcing on the basis of two-factor ABC analysis and XYZ analysis. The conditions are considered under which outsourcing a business process, using the mechanism proposed in the article, is an effective solution. The main objectives of outsourcing for an industrial enterprise are also presented, and some conditions that must be fulfilled when transferring the business process to outsourcing are considered depending on the priority goal of outsourcing. The practical significance of the work lies in the possibility of using the results of this study in matters related to the transfer of the business process of an industrial enterprise to outsourcing.
Read the full article
Keywords: outsourcing, business process of an industrial enterprise, two-factor ABC analysis, XYZ analysis, efficiency of a business process of an industrial enterprise.
DOI 10.17586/2310-1172-2019-12-1-45-51