The systems approach and simulation modeling as the basis of modern enterprise management

Abstract

This publication summarizes the understanding of such basic components of modern enterprise management as the systematic approach and simulation modeling. The systematic approach should be understood as a set of interrelated elements with each other and with the environment in time and space, which together form a single unit to define the general purpose. Simulation is a computer modeling of series of variant calculations of production processes of economic and financial activity of the company in general by specially organized systems of mathematical models for optimally effective management decision-making. It has been revealed the growing role of system approach in management, which is caused by the development of science, technological progress and implementation of system analysis tasks into the science and technology. It has been determined that  simulation is a variant of management system, it is one of the most powerful tools of management of complex dynamic system, which an industrial company can be. Simulation necessarily must contain the following subsystems: 1) target subsystem- which directs the managers at all levels; 2) functional subsystem- which is based on the specification of the functions of each structural unit of the enterprise; 3) providing subsystem – which is a complex of material, labor, financial, information and technical resources; 4) processing subsystem – which acts in order to identify and solve problems; 5) selfdeveloping subsystem – which provides the revealing of new features of the system; 6) controlling subsystem – which ensures the right of the leader to make the final decision and at the same time to take responsibility for the results of the work. It was concluded that the company management today is possible only in case if there is a combination of systematic approach and modern simulation. The technique of construction of simulation models has been grounded. It allows to reveal the weaknesses of  system under study and to develop a plan of actions for their elimination on the basis of implementation of new technologies and forms of production and labor of organizations. It also allows to  improve the efficiency of company management.