Today at engineering companies there is the fol-lowing problem: the inconsistency in management decision-making causing high production costs, a longer duration of a production cycle and a nonobservance of timing of orders. To solve this problem the author of this paper has analyzed with system positions produc-tion and management at an engineering company. A system model is offered, there is described an enlarged structure, hierarchy and kinds of ends, a functional model of engineering company management is formed. In the functional model there are presented functions of a company, production and information flows. In the management scheme of a company there are formulated strategies, ends and indices of efficiency in the field of investigations and developments, finances, marketing, production. A production strategy, budget and orders connect the scheme of company management and the scheme of production management. In the scheme of production management there is located a development of processes for decision-making support, scheduling, online planning, production control, material procurement, resources control, servicing management, company shipments. The scheme of production management has two levels: a company level and a workshop one. Functions of online production planning at a company level provide the formation of a production program, plan-schedules of manufacturing products, parts, units, material requirements, manhours, production costs. Functions of on-line production planning at the workshop level ensure the formation of production schedule and working up urgent plan tasks for production sections (brigades). The influence of external and internal factors upon management system formation is described. The technical solutions offered are introduced at the closed company of “UK “Bryansk Engineering Plant” and have a universal character and may be used at all engineering companies of the country.