Budgeting in the organization developing the equipment of aviation complexes

Economics and management


Mikhailova E. A.*, Remizova N. A.**

Rybinsk State Aviation Technical University named after P.A. Soloviev, RSATU, 53, Pushkin St., Rybinsk, Yaroslavl region, 152934, Russia

*e-mail: economy@rsatu.ru
**e-mail: n.remizova2010@yandex.ru


It is now one of the most progressive ways to improve cost management is the process of budgeting. Budgeting as the tool of financial planning is an effective way to improve the quality of cash flow management and activities of the enterprise as a whole.
The study of the problem formulation and implementation of the budgeting system was carried out at enterprises engaged in the development of radio electronic equipment, airborne and ground-based measuring complexes in the context of research and development. This sector was chosen because at the moment is one of the most promising and developing directions in the innovative sector of the economy.
The problem of budgeting system for the design organizations is very urgent, since the construction of the system must take into account the specifics of the sufficient conducting research and development at all stages of the life cycle by means of optimization of the management system.
The purpose of research is the study and development of the system of budgeting, as the directions of improvement of management of the project organization, and practically the methodology and its implementation.
Budgeting innovative projects of the enterprise will allow increasing the accuracy of planning of innovation expenses. As separately the control system of expenses for research and development is not allocated hence cost planning is static. Therefore, the study developed a mechanism to control costs. The main purpose of this mechanism is effective communication between the basic elements of management and information flows necessary for management by expenses at a stage of research and development.
For budgeting system design organizations was developed an algorithm for the formation of the process of budgeting and budget model with the release of project budgets and block budgets concerning budgeting of investment and innovation activity.
To ensure the above mentioned model of budgeting is necessary to change the organizational structure of management. For design organizations are invited to use the matrix structure in conjunction with venture capital management system of innovation. The matrix organization is a project management system, which avoids the disadvantages by providing a clear separation of management and professional liability insurance for the project. The main purpose of the venture management is to ensure the maximum responsibility of the progress of innovation by «the head of venture capital». Venture management together with a matrix management allows for the implementation of projects not only in contracts financed by external organizations, but also after the researches and development which are carried out from own means.
Initially budget model is built from the budget of the project, which allows for an assessment of the cost of the project and cost management throughout the entire life cycle of innovation. Data for individual projects are consolidated and aggregated at the level of groups of projects, directions of activity and the organization as a whole. On the basis of these data is held financial planning, planning of the balance sheet, the planning calculation result, the planning of cash flows for the organization as a whole.
On the basis of the organization’s strategy and the approved indicators of the planned investment budgets, with the subsequent formation of the budget for development. Development budgets are essentially of a portfolio of projects accepted for implementation and planning. On the basis of development projects is formed consolidated budget innovative enterprises. Taking into account the peculiarities of the stages of realization of the innovative project was developed scheme of sequence of the formation of the budget of development.
In the framework of implementation on the use of the system of budgeting and cost management mechanism is currently being developed model of evaluation and planning costs on themes and stages of research and development which would allow the management of deviations from the planned indices on stages to themes of research and development as a whole.
The pre-contractual stage to perform the work planning of volumes of expenses on budget periods is carried out on the basis of empirical data on the analog works or generalized method of cost allocation in accordance with the planned dates of execution of research and development.
Based on the planned structure of the price proposed to control costs by using an optimization model of cost management. The essence of the model is the application of the coefficients of similarity and prices, reflecting the changes of the corresponding indicator on the structural elements rates. Multivariate calculation at different levels of cost indicators is to allow the model impact on change in profit work, and, therefore, allows for analysis of the overall financial situation of the enterprise.
The direct control of expenses over performance of works on a theme is requested to using earned value cost index, which allows visualizing the cost savings and the backlog of work plan, as well as on the basis of the dynamics of these indicators to predict the actual performance of work and costs.
The developed method of budgeting and model evaluation and planning costs can first get an overview of the development of innovative business strategies, and then thoroughly investigate all significant deviations from targets in the context of each element of the cost structure.
Approbation of the developed tools of system of budgeting is carried out on OAO "KB"Lutch". Results of use of system show a significant increase in the reliability of estimates of planned costs and high reliability of their temporal distribution. This approach fully meets the requirements of the market, since its implementation costs for the project are managed in the early stages. The study shows that the use of budgeting increases the efficiency of management decisions by more than 50%.
Application of developed system allows is system to operate a concrete direction of research and development due to detailed forecasting both duly updating затратной and a profitable part of the budget, and also to lower financial risk.


mechanism of budgeting, innovation project, management cost


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