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BUSINESS INFORM №12-2014

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Section: Economic and Mathematical Modeling
UDC 658.152
Pokutsa I. V.
Systemic Approach to the Planning of Major Repairs of Property Assets in the Water and Sewer Utilities Enterprises (p. 220 - 224)
The article is aimed to study the functional interrelationship of economic losses from accident management in the water and sewer utilities enterprises and the planned expenditures on major repairs, taking into account the frequency and intensity of hardware failures, as well as indicators of aging. The proposed economic-mathematical model allows to determine optimum frequency of major repairs, taking into account the factor of hardware failure rate, as well as amount of planned costs for major repairs. As result of the study the optimum amounts of planned costs for major repairs, taking into account the average rate of equipment aging, was calculated; insufficiency of funding for repairs has been identified and justified, that, with the proper funding for major repairs according to the proposed model, the enterprise has an opportunity to reduce annual accident management costs significantly. Prospects of further research in this area is to determine the sources of funding for major repairs, application of the contemporary methods of managerial decision-making – such as method of hierarchical analysis by T. Saaty – in order to build a hierarchical model for determining the optimal method of calculating the depreciation costs in the enterprises. Reforming of the existing system of major repairs in the water and sewer utilities enterprises in accordance with today's economic realities, taking into consideration the issues of the branch, accumulated through the years, is an objective need for the further sustainable development of enterprises.
Keywords: major repair, reproduction of property assets, accident management costs, incomplete repair, depreciation, amortization, hierarchical structure
Fig.: 1. Tabl.: 1. Formulae: 8. Bibl.: 8.

Pokutsa Illia V. – Assistant, Department of Business Economy, Business Administration and Regional Development, O. M. Beketov National University of Urban Economy in Kharkiv (17 Marshala Bazhanova Str., Kharkіv, 61002, Ukraine)
Email: [email protected]

Reference to this article:
Pokutsa, Illia V. (2014) “Systemic Approach to the Planning of Major Repairs of Property Assets in the Water and Sewer Utilities Enterprises.” Business Inform 12:220–224.

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