Influence of product complexity on sustainable development of industrial enterprises

Abstract

The article considers the influence of product complexity (expansion of the product range for ensuring a balanced product portfolio capable of meeting consumer requirements, used technological equipment and raw materials components characterized by non-standard characteristics, complexity of technological processes, etc.) on operational efficiency (production time, cost, supply chain, effective inventory management, etc.) and, as a consequence, on ensuring the sustainable development of industrial enterprises, taking into account the peculiarities of production and economic activity. The concepts of product complexity and operational efficiency are studied in detail. It is demonstrated that the product complexity has a stable relationship with the increasing costs, time spent on the produced unit, providing the warehouse balance of finished products, amount of labor, downtime of the main technological equipment associated with the production of a large assortment of goods. Relationship between the increased complexity of the product and its quality is less pronounced. Control over the quality indicators is important at all phases of the production process. The negative influence of the product complexity on most performance indicators is a phenomenon existing in all industries, which is a warning to manufacturers expanding the product line. The criteria for measuring the complexity of products were identified. A methodological approach is presented that allows the use of integrated complexity assessment technologies including the use of analysis tools from other scientific fields. It has been inferred that further investigating the solutions of the problem is reliable on the basis of different approaches.