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December 9, 2016
Document Release Date: 
February 27, 2001
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June 1, 1965
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PDF icon CIA-RDP79T01003A002300090001-6.pdf600.65 KB
Approved For Release 2001/03/22G 9 p Tlgk 3AO02300090001-6 INTELLIGENCE BRIEF TO IMPROVE SOVIET INDUSTRIAL' MANAGEMENT Office of Research and Reports DIRECTORATE OF INTELLIGENCE pproved For Release 2001/03/22ODTFi D'DA1I03AO0230009 Approved For Release 2001/03/22 : CIA-RDP79T01003A002300090001-6 WARNING This material contains information affecting the National Defense of the United States within the meaning of the espionage laws, Title 18, USC, Secs. 793 and 794, the trans- mission or revelation of which in any manner to an unauthorized person is prohibited by law. Approved For Release 2001/03/22 : CIA-RDP79TO1003AO02300090001-6 Approved For Release 101 3f%21~DC A- DTP 9' ~+003A002300090001-6 COMPUTERS TO IMPROVE SOVIET INDUSTRIAL MANAGEMENT The announcement by V. D. Lebedev, Deputy Chairman of the USSR Sovnarkhoz, that the USSR plans to install "automated systems of pro- duction control at 119 plants and combines during 1.965 and 1966" is misleading and refers not to automated process control but to Soviet in- tentions to modernize management techniques at the enterprise level.. This is the most recent evidence of Soviet plans to use computers to mechanize the handling of plant data in order to save clerical. labor and also to provide management with the information needed to improve operating efficiency. Computers at the enterprise level also offer a means of obtaining the volume of timely data required at the regional and national level when, and indeed if, the USSR is to attempt to auto- mate a central system for economic planning and control. 1. Role of Computers at Enterprises The USSR has embraced "computerization and automation" as one solution to the problems of the slowing rate of growth of industry and the increasing complexity of the planning process. To this end a grandiose long-range plan has been developed to establish a three-level computer network for the control of the national economy, The plan also includes more modest provisions for the immediate installation at the enterprise level of computers, an essential prerequisite to the efficient development of a nationally integrated data-handling system. Large gains in operating efficiency at the plant level can, in theory, be made by leap-frogging from present primitive and labor-intensive methods to the use of computers to process payrolls and reports on production, material consumption, and labor utilization as well as to control inven- tories and production schedules. The extent to which these gains may be realized, however, depends on the solution of a number of practical problems, symptoms of which have already appeared in the Soviet litera- ture, such as excessive maintenance required by tube-type computers presently in use in the USSR, insufficient attention to the organization of a maintenance and repair system, lags in the development of peripheral. equipment, and shortages of trained programmers. Moreover, Soviet managers have traditionally been reluctant to abandon old methods even when new equipment has been made available. These possibilities are illustrated by the findings of the Collegium of the USSR Sovnarkhoz, which met on 26 August 1964 to discuss the problem of the introduction of computing equipment and quantitative economic methods in industrial control. This body concluded that major Approved For Release 2~Of103l12D diiA 6P"TT 1003A002300090001-6 Approved For Release SOD?iC 7:fZ't -Rbt791T-( 1,03A002300090001-6 attention should be given to "the comprehensive mechanization of engi- neering and administrative labor, including engineering and design cal- culations, norm setting, planning, material and technical supply, eco- nomic information, accounting, and analysis of production activity, etc. " In this context the decision to install computers at 119 plants and com- bines seems a logical development. Moreover, it is clear from this statement and other Soviet pronouncements that these computers are intended for the solution of management problems and are not to be Used directly in controlling manufacturing processes. Computers installed at the enterprise level for a fairly modest Out- lay in equipment and personnel. have the capability to feed into regional and national economic planning and control channels the type of accurate, comprehensive, and timely data required for the carrying out of long- range plans to integrate more fully the operation of the economy as a whole. 2. Extent of Program to Computerize Industry Although the installation of computers at 119 enterprises appears to be a major undertaking, many of the firms included in this number either already have computers installed for administration and engineering tasks or have been planning to install them for some time. For example, the Moscow Motor Vehicle Plant, the Gor'kiy Motor Vehicle Plant, and the Leningrad Metallurgical Plant already have computer installations, and the Yaroslavl' Diesel Engine Plant has been scheduled to receive a computer since 1962. Thus a reasonable interpretation of the Lebedev announcement might be that by 1966, 11.9 enterprises in the USSR will have computers to assist "production control operations. " It is estimated that at present about 40 enterprises have computers installed, and about 45 more will receive computers shortly. Thus only 30 to 35 enterprises out of the total of 119 would be newly scheduled to install computers in the next year and a half. The addition of 30 to 35 new installations, how- ever, will represent a substantial. increase in the number of major enter- prises that are equipped with computers, 3. Shortage of Computers Before 1963, computers were used on only a limited scale in indus- trial enterprises, Perhaps the primary reason for the slowness in introducing computing equipment into industry has been the extreme shortage of computers and the low priority accorded to commercial applications. In 1960, only 5 of the estimated 285 digital computers produced in the USSR were installed in industrial enterprises. The 40 computers that Soviet enterprises were operating in 1964 is a very low number when compared with the more than 5, 000 digital computers now operat.~r;g in US industrial establishments Approved For Release 2001/03/22:2CtA-RDP79T01003A002300090001-6 C-O-N-F-I-D-E-N T-I-A-L Approved For Release 2601703122 IC1AJZDP7l9TO OO3A002300090001-6 1. Bakinski rabochiy, Baku, 13 Mar 65, U. 2. FDD. No 5974, Cybernetics Research and Development in the Soviet Bloc (19), 5 Oct 64, p. 24-25.. C. 3. Control Engineering Magazine, Apr 65.. U. Analyst: 25X1A Coord: 25X1A 25X1A Approved For Release2IM3122 r)Gtk-RDjP719.JOIQ03A002300090001-6 CONFIDENTIAL Approved For Release 2001/03/22 : CIA-RDP79T01003A002300090001-6 Approved For Release 2001/03/22 : CIA-RDP79T01003A002300090001-6 CONFIDENTIAL Analyst: K/J Ji (Project 24. 5254) .Approved For Release 2001/03/22 : CIA-RDP79TO1003AO02300090001-6 CONTROL RECORD FOR SUPPLEMENTAL DISTRIBUTION 25X1A SERIES NUMBER CIA/RR CB 65-36 CLASSIFICATION OF REPORT Confidential DISTRIBUTION TO RC 50 DATE OF DOCUMENT June 1965 NUMBER OF COPIES 280 NUMBER IN RC COPY RECIPIENT DATE NO. (S) 25X1A SENT RETURNED 161 -220 279-280 Rec'd in St/P/C 28 June 65 161 St/P 29 Jun 65 162 163 OCR CGS/HR/Ops 11 i &.5r 164 165-169 170 i 171 25X1C 172-174 // 175 176 177 r 178 179 180-182 ~? ' '~ 183-220 ,279-280 Filed in St/P/C 29 J uja 65 / a 279 C'~ ez V / 3 Lam- 1 1 29-1+ - ik r` o 6 1 A roved For Release 2001/03/22 CIA-RDP79T010 3A0023000900 1-6 cop p NO. (S roved For Release 2QQ1dQ 22 : CIA-RDP79TO10Q 3A002300090001-6 Approved For Release 2001/03/22 : CIA-RDP79TO1003AO02300090001-6 ,'L Approved For Release 2001/03/22 : CIA-RDP79TO1003AO02300090001-6 St/AIDS Diotribution of Current Support Brief No. 65-36, Computers to Improve Soviet Industrial Management --- June 1985 Moni'Mentiat) Copy No. Recipient I 2 3 4 7-a 9- 14 15 16-20 21 - 27 2#1-34 O/DDI, Room 7E32, Hq. O/DDI, 25X1 A AD/RR DAD/RR SA/RR Ch/E ONE St/Cs St/PR D/A (1 each branch) D/ T (1 each branch) DIR (1 each branch) MRA 36 - 40 D/P (1 each branch) 41 - 46 D/F (1 each branch) 47 St/PS 43 - 53 D/I (1 each branch) 54 - 55 D/GG 56- 57 D/GC 58 D/GC/X 59 - 64 RID/SS/DS, Unit 4, Room 184004, Hq, 65 St/P/A 66 St/FM 67 Analyst/Branch 68 GR/CR 69 ER/CR 70 .r I13 /SR/Cit., Room 1G27, Hq. 71 Library/CR 72 IPI/CR 73 74 Chief, OCR/?DU 75 CD/O? 76 OCI/SA/R. Room 5G19, Hq. 77 DDI/CGS, Room 7GOO, Hq. 78 - 79 DDI/CGS/HR, Room 7GOO, Hq. e DDI/RS. Room 4G39, Hq. Approved For Release 2000 P7 T~1a0R dawagra ing 2n -.E nesiac;;ifioatfon 25X1A 002300090001-6 Approved For Release 2001/03/ 25X1A CM No. 81 - 84 85 86-8? 88 89 90 - 98 99, a7/-f7$ 100 - 101 102 - 113 OSI CBI DD/ &T/SPIN T T01003AO02300090001-6 Rec ,Tien 25X1A OTR/IS/IP, Room 532, 1000 Globe I - OTR/SIC ) NPIC/CSD/REF, Room 15518, NSAL, Room 3W 136, Ft. Meade (via GB31, Hq. )i OCI Internal (via SDS/DD/OCR) NSA (via GB31, Hq.) National Indications Center, Room 1E82I, Pentagon State, INR Communications Center, Room 6527, State Dept. Bldg. USIA, IR /A, Room 1002, 1750 Pennsylvania Avenue, N. '. , Attn: Warren Phelps Defense Intelligence Agency, DIAAG-3, A Building, Arlington Hall Station St/P/C/RR, Room 4F41, Hq. Records Center 114 - 115 116- 160 7,161 - 220 221 - 270 Approved For Release 2001/03/22 : CIA-RDP79TO1003AO02300090001-6 Approved For Releas001/0'ff )KffOL7?TO1 02300090001-6 6 July 1965 MEMORANDUM FOR: Chief, Dissemination Control Branch, DD/CR FROM Chief, Publications Staff, ORR SUBJECT Transmittal of Material It is requested that the attached copies of CIA/RR C$ 65-36, Computers to drove Soviet Industrial Managements June 1965, Confidential, be forwarded as fo?Uovsr State, INR Communications Center, Room 6527, State Dept. Bldg. Suggested distribution for Embassies in Berlin, Moscow,, Bonn, and London 25X1A Acting (ha diks5m!nw on , ?j,iiH.iyrA ~~; this metmorandum has boor #0f18PjWOr t e3' Attachments: Copies I81 #187 of CB 65-36 cc CC/RB Approved For Release 2001/03/22 : xrfilfR~~a,Aw 1003A002300090001-6 CONFIDENTIAL i 536 raved Ear5RWease 2001/03/22 : tl PtAT61*0 6 Title" Computers to Improve Soviet Industrial Management -- June 1965 (CONFIDENTIAL) Responsible Analyst and Branch R/EE RECOMMENDED DISTRIBUTION TO STATE POSTS Berlin, Germany Bucharest, Romania Budapest, Hungary 'Moscow, USSR Prague, Czechoslovakia Sofia, Bulgaria Warsaw, Poland Europe Belgrade, Yugoslavia Bern, Switzerland 44hn, Germany Brussels, Belgium Copenhagen, Denmark Geneva, Switzerland Helsinki, Finland The Hague, Netherlands Lisbon, Portugal don, England Luxembourg, Luxembourg Madrid, Spain" Oslo, Norway Paris, France Rome, Italy Stockholm, Sweden Vienna, Austria Wellington, New Zealand Manila, Philippines Canberra, Australia Melbourne, Australia Bangkok, Thailand Djakarta, Indonesia Hong Kong Rangoon, Burma Kuala Lumpur, Malaya Saigon, Vietnam Seoul, Korea Singapore, British Malaya Taipei, Formosa Tokyo, Japan Vientiane, Laos 1*hf'lot~ P- - , Colombo, Ceylon Near East & South Asia Ankara, Turkey Athens, Greece Cairo, Egypt Damascus, Syria Kabul, Afghanistan Karachi, Pakistan New Delhi, India Nicosia, Cyprus Tehran, Iran Baghdad, Iraq Tel Aviv, Israel Beirut, Lebanon Amman, Jordon Jidda, Saudi Arabia Ottawa, Canada Approved For Release 2001/03/22 : CIA-RDP79 '' . FIDE TIA 25X1A Mexico Guatemala Panama Brazillia, Brazil Buenos Aires, Argentina Bogota, Colombia Santiago, Chile La Paz, Bolivia Montevideo, Uruguay Caracas, Venezuela Yaounde, Cameroun Leopoldville, Congo Addis Ababa, Ethopia Accra, Ghana Abidjan, Ivory Coast Nairobi, Kenya Monrovia, Liberia Tripoli, Libya Rabat, Morocco Lagos, Nigeria Mogadiscio, Somal Khartoum, Sudan Tunis, Tunisia Pretoria, South Africa Algiers, Algeria Cotonou, Dahomey Dakar, Senegal Bamako, Mali Iwo tqlaa% decl . i 1cetiun 10090001-6 RECORD OF REVIEW OF ORR PUBLICATIONS FOR SECURITY/SANITIZATION APPROVAL SUBJECT AN LY G /) 6,S EXTENSION e SECURITY REVIEW SANITIZING INSTRUCTIONS ITEM DATE I N I T I A L S RE OVE UNEDITED DRAFT 25X1 A EDITED DRAFT DELETE SUBSTITUTE 25X1 C REMARKS 25X1 C rovea ror Keiease- 12864 235'~pp GROUP I S Ezduded from automatic downgrading and declassification