Abstract: the article is devoted to the study of the problem of constructing a production management system that contributes to the improvement of organizational activity. This problem is typical when choosing the production management model itself, which can be based on various approaches. They are: functional approach, process approach, the approach of value chain creation, etc. The complexity of solution is due to the presence of advantages and disadvantages of each approach when choosing a production management model and also when determining the most effective model in a particular organization.
In more details, the article presents the approach of value chain creation (the value creation flow). The experience of implementing this approach at one of the leading instrument-making enterprises in the Russian Federation is considered, the advantages and disadvantages of production management in accordance with this model are shown.
The results of the analysis of the current production system at the enterprise under study can be useful in theoretical and practical aspects.
Keywords: production management, production system, values, value chain, lean manufacturing, consumers, stakeholders