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Performance-Based Incentive Mechanisms in Life-Cycle Contracts

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Abstract

Within the framework of lean production, Russian industry needs to develop and introduce more effective mechanisms ensuring the fulfillment of state orders for capital- and technology-intensive systems, on the basis of performance-based logistics (PBL). In the present work, the introduction of PBL on the basis of a life-cycle contract for a specific program (product) is analyzed. One mechanism recommended in order to overcome the risks of indeterminacy is stepwise correction of incentive systems in the fulfillment of life-cycle contracts (with targeted increase in incentives for the attainment of specified results).

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Authors and Affiliations

  1. Moscow Aviation Institute, Moscow, Russia

    B. A. Gorelov & M. M. Gyazova

Authors
  1. B. A. Gorelov
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  2. M. M. Gyazova
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Correspondence to B. A. Gorelov.

Additional information

Original Russian Text © B.A. Gorelov, M.M. Gyazova, 2017, published in STIN, 2017, No. 10, pp. 21–24.

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Gorelov, B.A., Gyazova, M.M. Performance-Based Incentive Mechanisms in Life-Cycle Contracts. Russ. Engin. Res. 38, 309–312 (2018). https://doi.org/10.3103/S1068798X1804010X

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  • DOI: https://doi.org/10.3103/S1068798X1804010X

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