Adapting, Training, and Company Expenses Control

The article deals with the problem of control of expenses in a company with administrations and factories located in different regions. Control of expenses in such a company based on the Industry 4.0 concept includes digital learning and adapting. Also it is necessary to take into account the activities of managers of the main divisions of the company associated with the presence of their own objectives, which do not necessarily coincide with the objectives of the company. To achieve their own objectives in uncertainty, they can manipulate indicators of expenses in subordinate units to influence digital learning and adaptation outcomes in their favor. The problem of using theory of mechanisms design, adaptation and digital learning to control and reduce expenses in a company is examined. It is assumed that the head of the subordinate unit of the company knows better their own cost-saving opportunities than the head of the higher department. Such a manager manipulates his spending in order to get more stimuli from a higher manager as a result of organizational control, adaptation and training. Due to such unwanted activity, an increase in the overall expenses of the company may take place. To avoid this, a control mechanism is proposed that includes adaptation, training and stimulation procedures. Sufficient conditions are found for the synthesis of such a control mechanism that uses stochastic capabilities to reduce the company's expenses. An example of such control during the repair of freight wagons in a carriage repair company is considered. Copyright (C) 2022 The Authors.