An Investigation of Improvement Program for Asset & Cost Management in Defense Industries

Because of diversity and great size of business in defense industries, one of the main concerns in Iranian Defense Industry (DI) is the structure of assets. Optimal structure depends on effective management of all kinds of asset.Since balance of assets and structure can enhance financial power which has a major effect on the process of defense power creation, Defense Ministry decided to focus on this issue by designing and implementing a comprehensive approach for change and improvement of its financial structure. Implementing this model (called "Model of Confrontation to Liquidity Traps") has been one of the major approaches that DI deployed during recent years in order to improve financial affairs. In order to assess & review this approach, a clear, valid and reliable conceptual model is required. In this research, we review this approach and then present a conceptual model to measure its effectiveness. Based on this model by using semi-experimental design, the differences among variables were tested before and after implementing the approach. According to the research results deployment of this approach via increasing management financial wisdom has a significant effect on asset structure improvement and asset performance excellence.