THE PRODUCTION-PLANNING DEPARTMENT OF THE CHIEF DIRECTORATE OF MARITIME CONSTRUCTION, MMF

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00047R000200390009-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 27, 2016
• Document Release Date: May 20, 2013
• Sequence Number: 9
• Publication Date: February 4, 1953
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr2013/05/20 : CIA-RDP82-00047R000200390009-7
l:LJ IrIUAIION SECRET/SECURITY INFO as ?Tn ` ' _ , '
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
'COUNTRY
USSR
The. Production-Planning Department of NO. OF PAGES 3
the Chief Directorate f, Maritime Con-
struction, 1W,
TA ID.b DCOM ?T C e~M ~M ~1`Y,a 71 q/'F II4CTIN, ?TX[ TIOM~L 0[IFN fF
OP TIC4-UNIS[D 'F TId1EO TII FN ,~F(E ~!t.,. Ma 01 TITLE La; IFCTIDxs 7
S3
~~ND ,a/Mt or!- TXF OP. !. CO~,F. AB
`LrS Na?6[ : Ffl TERN I?I Fa IOx Ox NF Y[?
LFTI,ON OF I:TE ?.4ONT!Ni~ TD BR E[Ct'1lI T_S.T. NN. ux ~u THORIZED PENFOD IE
IFDNINITFO BY &At. Tnn 4 pI oDDCTIOM `D/ Tx IE' POEM %I PEONIEITFO.
2, The Production-Planning Department has among its tasks the supervision of finan-
cial transactions of the construction organizations.
Chief
i
Senior Engineers
3
Engineers
6
Technicians
3
Senior- Economists
3
Total
16
(a)
This department organizes production planning for peripheral co stru.c?t:on
activities, Each construction organization has its production assignment, ors.
as it is called in organizational terminology, its ob'ekt. The extent of this
assignment is determined in rubles by the so-called estimated cost of the con-
struction of repair ob ' ekt, All costs which are not directly involved in
the construction work are considered to be overhead, The overhead oasts com-
prise about 150 to 200% of the cost of manpower and materials used in the
construction work G For example, the cost of manpower Of-An ob E ekt is 500,000
rubles, the cost of materials is..1,000,000 rubles, The overhead at 20r is
then
200% (500,000 11) 1,000,000) = 3,000,000 thus
500-OOO rubles for manpower
190009000 rubles for materials
3,000,000 rubles fc?' overhead
4,500,000 total cost of the obgekt in rubles
It must beborne in mind that the overhead costs include several. item b
STA76
THIS IS UNEVALUATED INFORMATION
The Production-Planning Department (Planovo-proizvodstvenn otdel) is subordinate
to the Chief Directorate of Maritime Construction (GlavMorStroy) under the Mteie.
try of the MPsa chant Fleet. The department consists of the following pe:rsonap.l
CLASSIFICATION SECRET/SECURITY INFORMATION
-
IvFVI' IP
X
IARMY l-XI ft/ l
r G r )
(T DISTRIBUTION
X31
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Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr2013/05/20 : CIA-RDP82-00047R000200390009-7
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SECRET/SEG ITr yR?k ..d9A:1?l.,earii
(1) Salaries of all persons not physically working on the oboe't, sveh an
admi.n.istra:tive per#o el., traxorWitAticavorkers. office help, Plate
wing and design people. All of -those people not contributing 3Laetue l
productive output conatita.te about 75% of the `post of materials a .ad araau
power engaged in, the actual work on.the ob' ekt.
(2) The costs of, the con tip n. of .fuel, electric power, lubricating and
cleaning materials., etc. This iii 1udes not only the costa for operating
equipaa ent` actually used on the cb y ekt, but also for buildings a other a
non-productive activities. These items co rise about 15 to 20% of the
coasts of materials and manpower actually being expended on the ob' ekt.
( The amortization of all equipment and buildings are included in the costs
of'overhead.. Usually the period of amortization, is about six ac ? seven.
years so that the rate is around 15% of the cost of the buil..diag. This
amortization includes all items, both on and off of the job so that these
costs are about 15 tc 20% of the actual funds for materials and se .power
of the ob'ekt.
(4) Services of outside organizations vary greatly with each p art^ , z: ar ob' ekt
as
I1
i
ces are
:
.y
so that a percentage is di.fficuYl.t to stet. These serv
i gely e e teed _ of charges fir transportation and stevedoring.. s~n-
~L
ed
c
s
i
d
~..
a .~
.+<
. M'7 a W A .
s
ffupmtcon Craft ting+
This cost in set atrct1;1 en the value of the work produced. so that the
e verhead costs will fall ox the s.ibcontractor and- not .on the actmity
of. Glav arStroy
The .coasts for the acquisition of inventory materials and equipmen for
ax of ekt. These costa are strictly adnfaistrative, in nattLre and do?50X1
include any . quassiproductive fu ticaa
(b)
(a)
All act#v ties of (lavMnr?Stro bad high o ,ierat? coasts as 'did the ship repair yards,
books mare checked :e was bra ht to trial ix Mariupe l a
,
Before.an audit, was held he arranged for a transfer to liujo r~evea
officials is GlavMprStroy, bad a poorly run organiza.tiox mad ALSO ].nadul?7e"!
little graft, As -a;~ result he did not meet the. estimated costs set up for his Ob'ekt
W11'en th
?
. aoeke,eind eteeaasehip agenciea I* Astrakbanp, G1arMDvStroy
s
constructed a building for the and ss sea e r completed the Latter re-
f issed to nakio pa Oaent for the building.. This cost bad to be written off` and 16-
counted for .otther as :losses or. as part of overhead Costa on future obQet.ts.
for
res
The' Pr6dU
xpeaaesss
the acacia . Alai Ain pf th . ao artrt tiois rgaa zaiti?nab?Ii a giveai fa anc;ei of epenes
for ~thes - ixtenance of some .particular construction 'organization are plannaead.. This
plea includes the salaries of administrative. personnel and productive workers re-
ferred to an the, latbor 'plan.) V the the costs of fuel and materials, a rttza Dios of build-
ings, egztpment and stock, and. other miscellaneous expenses. Here it is neecesear y
to note 'that all of-,the. conetiiction orge.nizatioais function. on a cost ae'f.c`tnting
basis (ldiozrasehet), ' i e self supporting, without subsidy. If an orga.izaticxi oper-
at
atea aat , $L . loss, then, at best-, its directors; are removed from the work, and
often, , they are brought to trial. An example, of this iccurred is the C4ttrr.ction.
v650X1
D3roetOra" a at AMMr" an-. where a hospital was built on. the r gkit bank of the
River. A man 'by then -`xame of -.GOl< v V _ tea t A charge of the ob'' eskt and, 3,11:+s msji~y
A 4'_ a
poor performance but have not been so t.~ea ? o,,. y
SFSgti ?~/SEC1JR Yy I_*XRMAT'LOIN
a
I
W ..
net are forced to live on credit fr?o: t the st?:-es as
.~.nv.ic ted C' r `their
pay- .ia received. The construction activities should have been 1. .
t d i t o nsa4 h reas>xoz
The produ?etionPpI& ring' Department is- also charged 'tsith :the orga>f.izati,oa of preduc-
tion and rstati.sticaal = ssu~ a>tsuatixg of acttviti:e# Of the various constriction prc_r jec t#.
-died in the following away: Periodlcali~f, us ai50X1
The production accau 'iig - is.hsn
.montblyy~ thee construction-organization together with the' client cheeks loon the
progresses- of the ob!-eekt as specified in the established plane and es'tf.7se.'t ss. (The
official ter iso - draWing u15 , a derttfteate of percentage payment, so,ta,rlen?Le akt&
prQtssentovki). ? Ox O%Agpl tion of the check the appropriate certificate in drafted,
this eerv3.~ ass: a basis for presenting a bill to the client for ful:t.fill.mesnt of
work. In t en fnrate.'~ the consstruction organization gives as aA-Ic::ount of
its activity' t6T- Glav orStroy#: Money received from the client is part goes towards
covering expenses incurred in. the maintenance of the construction orgaxlzation (with.-
ins the limits of the.. g?la ,):.. The . bsilamce of the payments go to the state budget.
Thus the cons :r. iictioa aetivitieas aro : completely dependent uTrces "the lien~~r In the
event 'the work is not completed. cn ~ tins or is of poem ' quality and une.c a s;p'. able to
the client,,, no payments are a.de.' ? The ma. agement of the constr? a.(- ion or=d. +.i ation
is deprived of funds necessary for its operation and suffers other unpleasa'e' eon-
sequencess . The performance of poor work 13 prevaleen:t ? throughout Glavt(orS+ro; and
frequently' there are. in_~a.ffaicient funds to pay salaries. The result is that pereonm
best +h-- ran until V'>.: r ba-~ k
t
Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr2013/05/20 : CIA-RDP82-00047R000200390009-7
 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr2013/05/20 : CIA-RDP82-00047ROO0200390009-7
atti 414 i/ r:ir i i I. 11Yr UL Utt ivir
3
l
representatives of the client wilSign
any certificate for a bribe, Secondly because it is usually ri*poitkant fop, cliesnt
that he receive .the ..ob'.ekt as quickly ar, possible and little attention. is, paid' to t 0X1
quality of the, work.
Maintaining expenditures within the p a -e4, limits is the maim purpose of statistical
accounting of the econonnic acitivites of a contruetion orgayiizatioxi. Thus cheeks are
maintained on the costs of maintaixi? staff organizations, expenditures of fuel and:
materials, etc
The accounts are drawn up. on special forms approved by the Central Statistica'11)1tector-
ate (TsSU),of Gosplax. These accounts are submitted monthly., quarterly,,. semi..-an-auallyp
and annually. T}ae. basic accounting form for a contingent of workers and empl#.a and
the expenses of the wage fund plan. is Form M-20.0 a -report on the utilization of t-be
plan.
(d) A further responsibility of tbs. Preduetiox-Planning. Departnext is :the'redistribution of
appropriations in.the event of a change in the nature of the activities of a cosstruc-
titan organization, or a change, in the financial policy of the government.
(a) The department also prepares dents for inspection.by a ceissiox for deteixg
the results of. al:l-union socialist ?donpetition among organizations of Glavf rStroy.
The awards of, the all-a n. social at competition are determined by studying t
quarterly work results of the activity.. The beat activity is selected and given an
award.. These:"determinations are made from the amount and quality of fullfill4ewt of.
production. tasks bby?the individual groups as reported by the Production-Plaxxing Departments... The reports as made by the, departments contain the following ixfor. vatiox.
(1) Produetion indite. 'This' indicates the planned and actual fulfil nt of
assigned construction work. The work has not actually been. fulfilled fb~?-
the purposes.of the competition until such time as the client ban antually
accesrpte:d the work, These figures' are given in rubles and percentages n
(2) Productivity of labor is expressed in output per worker is rubles end per-
;" cextagee.. '?
how zzach work is done by hand. and now much is deans by ssa.chixe.
Thee niuabor'``erf a aiddnts oceua ?ixg at work:1. and the total number of d*-u-s lout
(3}., The hen,jeetiox. of work is expressed by means of Farm TZ-23 and indicates
Qa! a. res uit
(5) Absenteeism, tardiness,- and druxkesaeese are reported in connection, with ge?al
disci fixes 'existing amoAg 'tho'-'workers:4 A person arriving at work drunk :ice
supposed to be jailed 'in accordance with a special order of the Supreme Soviet.
(-6) . ,'Expend$ tugs of fuel and ? power is given in percentages, tons and ?,rlc .tt
e?~ctrir,
we? factor for el
t Th
(?7) The 'cast of work opsratioxs .>
( ) The fulfill. me*t Of the operating plan which includes . aforasatio e. oae~ the
pr i'it:lees of the ob~ekt and the turnover ix"okerating capital.
.
e
hours for the planned and Actual am i- s, p
' pb~ne ' esonsotp bit- is -also gi vee.
SECT/.SECURITY '.INFORMATION
Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr2013/05/20 : CIA-RDP82-00047ROO0200390009-7