This article provides an overview of the arguments and counterarguments involved in identifying the state of an enterprise, assessing its functional efficiency, and optimizing its target functions while implementing management tasks. The decentralization of enterprises empowers them to adapt to specific territorial needs. However, it also introduces an element of instability that can be disconcerting. The primary objective of this research is to develop a scientific and methodological approach to modelling the management system of the development of manufacturing enterprises under decentralization. The systematization of literary sources and approaches to the problem of managing the development of manufacturing enterprises reveals that each level of analysis of the state of the enterprise and assessment of its development dynamics and problem situation corresponds to the aggregate set of assessments, which includes both individual indicators and their various groups. At its core lies the crucial recognition of production systems’ (PS) state as a pivotal parameter influencing the very fabric of UTC development. The model employs a powerful vector functional approach, allowing for a multi-dimensional assessment of an enterprise’s state. The model translates into a tangible metric, empowering informed decision-making and targeted interventions. The relevance of this scientific problem is that the management process of enterprise development under decentralization needs to be more structured and less accidental. There is a need to manage this process to survive and develop in an aggressive market environment. Optimal management of production systems as discrete matrix objects provides an opportunity to consider the functioning of each of them depending on the state of the others at time t of their production to time t+1, which is associated with their further development in a decentralized environment. The results of the research can be helpful for the development of systems for monitoring and strategic management of the development processes of manufacturing enterprises under decentralization.