It is clear that what matters is selling, it happens that in order to sell you have to produce, to produce you must have the materials that are kept in the organization's warehouses or warehouses.
Everything necessary for production is extensively developed in each and every one of its elements, innovation and development abound. It is studied and developed on a large scale, including high-quality software that emulates the normal production process. There are countless sales trainings. Training in the administration of warehouses or warehouses of companies is not so implemented.
Warehouse or warehouse tasks
All movements inwards, outwards of the company, as well as the internal movements of the articles in the company must leave a documented record. It is something necessary and sufficient to control.
Everything is controlled to avoid irregularities with the assets of the company. It is about avoiding subtractions and on the other hand it is necessary to establish order to immediately locate the article you are looking for.
This order starts from the same project. They are classified with productive and accounting criteria.
Types of warehouses or warehouses
We can separate warehouses or warehouses depending on the elements they care for, such as:
- Finished product (ready for sale) Delivered to customers Exchange goods (Materials used to make the final product) Delivered to the factory.
- A. Raw material. Element with which one begins to do good. Supplies. Elements that are added to the good in the process and remain in it. Auxiliaries. Elements that are added to the asset in the process but that do not remain in it. Spare parts. Components of fixed assets.
Inventories are consumed and must be replaced in order to continue with the production of the final product.
In the company there must be a logically "organized" system that controls all movement and registration of the documentation necessary for production and accounting.
Considering that it is convenient that the different elements are treated in different warehouses or warehouses and that the organization must be done logically, we can establish some differences in the organization.
Differences
The treatment itself of the different elements within the warehouses or warehouses is not different.
It may be convenient to separate them according to the granting of the respective responsibilities by sectors.
It is clear that in each organization the accounting sector is the one who controls to achieve its administration task and that one of the fundamental factors for accounting administration is the price or cost of each asset or operation.
Based on this then we can separate giving even different names to what is someone else's or own price.
- The price of the items purchased to deliver to the factory is given by the supplier. The price of the finished product depends on the company.
We could say then, warehouses are in charge of the care of the products bought and kept to be used in the company, and the warehouses are in charge of the care of the finished product to be sold.
There is also a separation already mentioned, depending on the limitations of responsibilities, which in an organization cannot be missing.
- What is stored in warehouses is of interest to those responsible for production. What is stored in warehouses is of interest to those responsible for sales.
I reiterate: It is clear that the accounting control of stocks and registration of movements of each and every one of the warehouses or deposits will always be given by the administration and accounting control itself.
Application example
Let's see examples of application of a supposed plastic car factory.
Assumptions can be as simple as they are complicated. It can go from a factory with plastic injection machines and specific patented dies, etc., etc. Or, someone who knows how to buy the necessary things to put them together and store them in their garage for a certain time.
It starts from the premise of having achieved the sale and you have to manufacture them all, there is nothing in the warehouses.
The production schedule should be reviewed to see what materials are needed in the warehouses. With the necessary time to allow provisioning.
For the necessary supply (of materials), we have what is called in the jargon the list of necessary materials, which is given by the explosion of the construction formulas.
NOTE: the construction of the formulas is called an implosion. The thing is that you know how to make the explosion or calculation of unit needs.
The calculations are made and the production needs are given.
Stocks verified (in warehouses) and purchase needs result.
In this data table, the column highlighting the importance of warehouses in the organization is highlighted.
With this treaty I want to make it clear that I consider that you really must supply the necessary data to calculate the purchase needs. The warehouse precisely because it is the last of the line.
But, it seems that in organizations they do not consider it because this is the last link and therefore it does not matter what they could contribute to it. And it is not like that.
It is considered even by the most prominent analysts and developers, but not even by many of the hierarchies of the organizations, this is also the case.
In reality everything goes through prior planning, (previous course, otherwise, it would not be planning), but in reality it is like going from survey to survey (of the fact) and, those who must organize do not learn and so we continue.
Let's see examples of lack of planning in a company to be able to better interpret what was said previously.
This can be as simple as the example or as complex as you like, of a complete machine or a complete factory.
If “preventive” maintenance has to be done on a machine to which the oil must be changed, check the clearance (allowable clearance) of gears, bearings, shafts, etc. And if necessary, it is changed.
It happens that this has to be done in the shortest possible time because you have to assemble the machine in order to continue producing because you have to sell.
What is considered necessary to change in the spare parts warehouse or warehouse is disassembled, verified and sought.
It happens that something that should have been, that was believed to be, "is not really in existence at that time."
Of course (we wire it up, says Copani) the solution somehow manages to get the machine into production again. Of course, then, he goes out to ask for the next one that touches him, he knows when.
There are systems that handle all these work schemes and that are useful both for the manufacture of cars (paper and pencil for the boy working in the garage at home) and cars (let's say the GM that both applied and explained organization concepts with Peter Drucker).
These systems are based on planning. It is known as planning of replacement of materials only that as it is in English the acronyms are the other way around. In the jargon it is known as MRP (Materials Replenishment Planning), many large companies have some system, there are many, I know several, I have worked with some of them, studying them deeply.
I have tried unsuccessfully to enforce gravitational concepts of their goodness in organizations.
It happens that: And going to what is written in the treaty on the cadres of the organization I have to clarify the following.
All these material movements, for the purposes of administration, are really accounting movements that must be recorded in their respective accounts. He leaves one account and enters another. Of course the control is given by the administrators of the economy, accountants, graduates, etc. They know the names used as the MRP, but it is like they play it by ear, they are not interested in having it in the structure.
Having the elements, there is no clear manifestation regarding the use of these planning elements. That is, I understand that they do not plan for the future because they are not professionally prepared for it.
They are prepared to record things from the past, things already done.
You may have studied MRP, they may know what implosion / explosion means but they do not apply it.
You can know perfectly well that it is Usable Existence / Reserved Existence / Total Existence. But… they are only interested in the latter, which of course they record, which is what the accounting that exists in the corresponding account says.
They can understand what planned or unplanned spending means, they can recognize their names in systems as preventive maintenance and / or corrective maintenance but they do not clearly establish their differences in benefits to the organization.
For them it is an expense to register in an account and therefore they do not struggle for its massive use.
They do not give the corresponding credit, they do not qualify them for their potential use. And this is transmitted to the entire organization.
These concepts are studied and applied to achieve much more economy than they believe they achieve with detailed control of their accounts. Thing that dates from the time of "Leonardo Da Vinci", when a collaborator of his "Luca Pacioli" invented the accounting record twice.
There is no perceived innovation in administration given by economists. Innovation is present in other disciplines that interrelate in companies such as engineering. But unfortunately these specialties in current companies in Argentina are only considered mere suitable for the tasks to which they must focus. And so we walk, and we will walk until they realize the need for organization and planning together since a company is something interdisciplinary.
I say the above to clarify that the problems in the organization do not depend on the person in charge of the administration of the economy. What's more, this is actually the last one to appear in the task list, it is the one that should record what was done.
They need to comply with the steps indicated by the boy who makes cars.
The participation of:
- He who knows what he will occupy to do his job, who knows what is in stock to be able to indicate what is necessary to buy, who knows how to buy in the right way and at the right time.
It happens that the one who knows what he will occupy to do his job is doing his job because his superior wants him to do it and not what in the organization is believed to correspond to someone else, therefore he is not going to get it out of it.
At present it is believed that the warehouse has to have everything and if it does not have it, it should be in charge of making it buy in the shortest possible time.
It can be shown that planning is to improve even your own work. But if there is no political will from the company, everything returns to its lane of lack of organization.
In disorganized companies it happens that if it was sold and it is necessary to produce, it begins to produce the punches with all the artillery aiming to make the machines produce. If all goes well, thank goodness.
But if a machine breaks, what bad luck. Perhaps they intend to take advantage of the time to make a step of maintenance that would also be done to the punctures of course. It reminds me of the slave foremen.
The production manager with the whip in hand to produce more. If necessary, lend the whip to the maintenance or repair manager. The objective is to beat the time begging to be able to do it.
The warehouse manager waiting for them to come and ask for something they need and praying that there is in order to meet the needs of their customers. Because if there is no warehouse, this will be the culprit of the delay and while the necessary element cannot be replaced the whole weight of the blame will fall on him and only on him.
This is how you work in disorganized companies.
The demonstration is given by the reality of organized productive companies, which gain more and more market mainly for their efficiency and regularity in deliveries.
Purchase process in a disorganized company
As we see. The warehouse does not appear in the plans of a disorganized company.
