The Cuban economy is undergoing an intense process of change in order to guarantee its reinsertion in the international market while maintaining the principles of socialist development. This implies that the basic element of the economy, the company, is also immersed in this process of change, playing a fundamental role in the concretion of the policy and the economic projection of the state.
The present investigation was carried out at the UEB Guillermo Teja belonging to the Construction Materials Company where the value chain of the Italian tile product was analyzed, counting for this with one of the most important techniques at present; the value chain which enables the understanding of business phenomena by disaggregating the map of activities. During the research, different methods are used, highlighting the self-evaluation questionnaire and the value chain. It is used as bibliographic sources, textbooks, master's theses, scientific articles on the subject in question. The research has two chapters in which we can find: Chapter I. Value chain: a strategic analysis approach in search of competitiveness;where the research topic and Chapter II are theoretically addressed. Methodological approach for the analysis of the value chain. The characterization of the UEB is presented, the value chain and the map of activities to the selected product are analyzed, where the activities that generate and do not generate value are determined, as well as the advantageous position of the company before the competitors of the branch.
Cost Accounting allows organizations to determine a reliable and reasonable measurement of costs and benefits which are related to specific products. This accounting also measures, analyzes and presents financial information related to the costs of acquiring or using an organization's resources.
analysis-chain-value-carpentryIn the Cuban business environment, it has never been important to have a solid understanding of cost accounting and administrative accounting, nowadays due to the growth of information technology and new production methods that require non-traditional information. it is necessary to take a look inside our companies to try to find those elements that constitute or may constitute the sources of competitive advantages in your market.
In the company Materiales de la Construcción there are insufficiencies in the cost accounting process when determining the cost of final production without taking into account the cost of the activities necessary to obtain the product, which impedes the decision-making process. and therefore it is not considered as a management tool. The insufficiencies in the cost accounting that limit the efficiency in the production of Italian Tiles in the UEB Concrete and Carpentry of the company Materiales de la Construcción is the problem of the investigation. In this way, the Object of the Investigation is the Cost Accounting Process.
Within these techniques, in the 80's, the Michael Porter value chain broke out with great force, which breaks the company down into the discrete activities that comprise it, allowing a particular analysis of each, aimed at knowing which ones add value (or not) to the product, this research assumes the value analysis process as a field of action. Based on the previous problem addressed in the UEB Concrete and Carpentry of the company Materials of Construction of Las Tunas, this research has the objective perform a value analysis of the production of Italian tiles.
The foregoing allows the following hypothesis to be formulated: If an analysis of the value supported in the value chain is carried out in the production of Italian tiles, it constitutes to minimize the insufficiencies in management accounting at UEB Hormigón y Carpintería “Guillermo Tejas”.
To fulfill the proposed objective, the following research tasks are carried out:
- Carry out a conceptual and critical analysis of management accounting and the process of identifying the value chain. Diagnose the insufficiencies in cost accounting in the UEB Hormigón y Carpintería “Guillermo Tejas”. Carry out an analysis of the value chain of the Italian tile to reduce, minimize or eliminate activities that do not generate value.
The methodological contribution of the investigation is like making the value chain and the activity map of any production of the company. The practical contribution is given in the design and application of the value chain and the activity map of the Italian tile.
The research methods that will be used to fulfill the planned tasks are:
- Historical-logical: With its use, the stages that characterize the value chain and the map of activities in the UEB are established.Hypothetical-deductive: It makes possible the construction of the hypothesis, by structuring the connections between the categories that comprise it and the relationship causal that is established between them.Systemic-structural: It is used for research design.Analysis and synthesis of information: It is used to establish the epistemological characterization and define the theoretical and conceptual references that support the research process in relation with the object and field of research. Observation, was used in group and individual interviews in order to obtain information in the diagnosis, surveys and expert criteria.
The research has in its development the following structure:
- Chapter I. Value chain: a strategic analysis approach in search of competitiveness; where the research topic is theoretically addressed. Chapter II. Methodological approach for the analysis of the value chain. The characterization of the company, the selected product and the methodology to be used are presented. Analysis of practical research results.
The work includes conclusions, recommendations and annexes.
Development
Analysis of the value chain of Italian tiles in the ueb concrete and carpentry “guillermo tejas”
This research has as its starting point the insufficiencies of Cost Accounting that limit the efficiency of costs in the UEB in the production of Italian Tiles in the company Materiales de la Construcción, founded in June 1966. It is located on Avenida Camilo Cienfuegos Nº 223 in the city of Las Tunas, has a group of production centers, mainly in the Las Tunas municipality, in addition to the Puerto municipalities. Padre, Majibacoa and Colombia. Belonging to the Ministry of Construction (MICONS), directed centrally by the GEICONS.
Characterization of the company Las Tunas Construction Materials.
The Company "Las Tunas Construction Materials" is an entity with a sustained work to improve its business management, based on its inclusion in the resizing processes carried out in companies dedicated to construction. It is an organization made up of several factories and units, with a diversity of products and services. This entity has the following corporate purpose:
- Produce, transport and wholesale aggregates including silica sand and other materials from the quarry, paints, gypsum, lime and its derivatives, clay and mud products and systems, concrete elements, terrazzo, additives, textured repels, monolayers, glue cement, dehydrated mix, hydraulic tiles, cast iron and bronze elements, products for the glass and ceramic industry, refractory products, hydraulic concretes, coatings and waterproofing agents, including their application; wood carpentry, including its assembly and offer after-sales services, all in national currency and currency. Provide maintenance and assembly services to industrial technological facilities and equipment for the production of construction materials;laboratory for testing construction materials, rental of construction equipment, complementary and specialized transport, transportation of general cargo; of diagnosis, repair and maintenance of automotive, construction and complementary transport equipment, as well as its aggregates; warehouse rental, parking; rental of premises, scientific-technical services and execution of R&D projects and technological innovations, as well as technical assistance, consulting and advice on activities in the production of construction materials; specialized blasting services, including your project; produce and commercialize in retail form surplus agricultural products from self-consumption to their workers and from storage and sale of fuel and lubricants,the latter only to entities of the Ministry of Construction system, all of them in national currency.
To carry out the productions, the company has a staff of 612 workers, 122 of them women, and the qualified force is distributed among 21 university graduates and 76 middle technicians.
Your current product portfolio includes:
Production of goods
Combined Concrete and Carpentry "Guillermo Tejas":
- This deals with organizing the production of floor and carpentry elements.
Aggregate Combined "José Rodríguez"
- This is dedicated to the production of crushed stone of different granulometries, artificial sand, as well as blocks of 10, 15, 20 and Cuban technology vaults.
Ceramic and Sand Combination "Cristino Barreda".
- This is dedicated to the production of the different clay elements, such as the wall and ceiling elements (solid bricks, native tiles and roof slabs), calcareous sand, raw kaolin and kaolinite clays.
Services
Basic Assurance Unit.
- This is constituted from the Base of Assurance, annexing the Transport Brigade and Serví center that previously belonged to the Basic Support Unit.
Basic Equipment Unit:
- This is constituted from the activities of equipment, repair and maintenance. Its main function is to guarantee and direct the policy of exploitation, maintenance and repair of technological and non-technological equipment, as well as the supervision and control of these activities.
Characterization of the selected product. Italian tile.
The Bicapa Tile Factory is located in the industrial area of the Las Tunas municipality, 8 km away from the Company's address. This establishment is dedicated to the production of two-layer tiles of 250 × 250 mm, 300 × 300 mm and 400 × 400 mm format.The center has a technology acquired in Italy, which provides us with high-quality products, the installation is composed by two mixers, semi-automatic press and a four-head polisher.
In the process of cost accounting in the production of the Italian tile, deficiencies are found within this process since all activities are charged to the total cost of the product, as well as the non-existence of costs per activities and the non-use of time. By activity, they do not have a clear idea of what it really costs to carry out each phase of production of this product, they also use the following accounts to record production expenses:
- Production in process
- Main Materials Auxiliary Materials Salaries
For the determination of production costs, the UEB once the indirect costs have been assigned, which are assigned directly when identified with the product.
The main deficiency is that to distribute the indirect costs, these are carried out through distribution coefficients established by the MICONS without taking into account the activities that generate value to the product, this brings about the distortion of the total cost of the product, including indirect costs that they have actually been incurred during the period, but not in the elaboration of the product such as:
- Security and protection expenses. Repair and maintenance expenses.
These expenses should be included as period expenses not as part of the cost of the product.
Description of the stages into which the process is divided.
- Preparation of the Raw Material.
The aggregates are taken from the cubicles and the cement from the silos, transported by wheelbarrow to a scale to weigh the products, then they are mixed in two vertical mixers, one with the material of the ornamental layer and the other with the layer base, the mortar is poured into a wheelbarrow to which it is taken to the pressing machines.
- Pressing
The ornamental layer and the base layer are transported manually to the containers that are placed on the sides of the press. From this position the operator pours for 42 sec. The ornamental layer is then pressed at a pressure of 170 kg / cm 2 for 6 sec., Removing the slab from the molds and placing it on metal shelves where they will remain for 72 hours at rest.
- Polished
The metal shelves with the forged tile are transported by forklifts to the four-head polisher where the polishing process is carried out.
The process begins with continuous feeding, taking the tile manually from the metal shelves, the forward action leads the tiles to the longitudinal starting mat on which, supported by its corresponding head, the abrasive wheels of different grams that carry out the polishing with simultaneous action, corresponding to the action of roughing the first head and the second, third and four head polishing, the abrasiveness of the stones and their dynamic of abundant water for lubrication and cleaning. The polishing process ends by classifying the tiles on the exit track, placing them on the corresponding wooden pallets and moving them to the storage areas using the forklift.
Basis for the instruments to be used in research.
In order to fulfill the established objective and based on the information collected and previously presented on the product under analysis, it is proposed to use the following instruments:
- Self-evaluation questionnaire on the value chain of the selected product. Shaping the value chain including activity maps. Analysis of added value in production processes.
Construction and Analysis of the Value Chain of the selected products.
The application of the conceived procedure allowed analyzing the value chain of the selected product and reaching its proposal. The result is presented below.
Construction and Analysis of the Value Chain of the Italian Tile. Analysis of the value chain self-assessment questionnaire.
From the processing of the survey, the following assessment is obtained from the specialists of the factory on some groups of aspects directly or indirectly related to the Italian tile.
- Strategy:
- The company has determined specific strategies for its different businesses. Annual objectives are identified for each hierarchical level, although these have problems in quantification. The company monitors the value it creates in a systematic way.
- The Board of Directors periodically and systematically analyzes the profitability obtained and the rest of the financial indicators. The factory does not have updated financial information to make decisions, since this information is found in the company where the managers, together with the managers of The factory meets to make the most convenient decisions. The impact on the results of incorrect inventory management is known. The company applies an adequate cash management system.
- During the last years, some products have been developed in the company, with some contributions and great impact in the market. The factory's product portfolio is balanced. The basis of the R&D process is the own development of existing products in other markets. The company has incorporated knowledge that in some areas is superior to its competitors and that can be applied to the development of new products.
- The flow time (from the raw material to the final product) does not present problems. The causes of deviations from the real flow time and the one established in the work regulations have been identified. The delivery time of the Italian tile is short and reliable.The distribution flow system is periodically reevaluated.
- The aspects that define customer satisfaction are known and frequently measured. Loyalty percentage is high. Employees who interact with customers have well-defined tasks and have some autonomy to adjust to their needs.
- Quality Characteristics of the Italian tile Reliability Price Delivery time.
To achieve a favorable result and prioritize the satisfaction of the indicators that occupy the first three places on the list, variables with a high contribution to the competitiveness of the product are identified.
- Installation location Automation level Inventory levels
Integrating the processed information, it is appreciated that the production of the Italian tile and the environment in which it is made (the factory), presents a favorable management approach to achieve superior results (qualitatively and quantitatively) in relation to this product. However, the need to perfect some aspects related to the design and application of specific strategies for the Italian tile is obvious. They must also improve purchasing and marketing management, that is, the direct link with suppliers and customers.
Construction and analysis of the Activity Map.
From the information collected in the company and in the production establishments, the activities carried out to achieve the production and marketing of the Italian tile were identified. Due to the fact that in the company there is a general procedure for the execution of the activities, in this investigation a map of activities is constructed, differentiating the activities of Operations and Services.
In (Annex I) the general activity map is shown, which includes the operations and services activities of the Italian tile and in (Annex II) the own actions of its manufacture are detailed. Below are some insights into how the Italian tile value chain works.
- Internal Logistics: the basic activities for the process are executed. Specialists have managed to reduce logistics deadlines. Storage as an operational activity does not add value, when the material falls directly from the hopper, but in the current economic conditions the option of eliminating it is inevitable. Operations: they cover all the activities necessary for the final shaping of the Italian tile. The operations carried out for the manufacture of the final product generate various sub-activities and all are carried out within the company. The entire production process has the necessary technological procedures and equipment.
The characteristics of the Italian tile satisfy customer requirements, achieving a high percent of product reliability.
- External logistics: it has a very close relationship with the operations process, since the product distributed directly to the customer's means of transport, represents that the optimum quality of the product is obtained, which has an impact on external logistics, should this not occur. product would be damaged and would not be delivered with the required quality. Marketing: it basically boils down to traditional promotional and advertising actions. The market study without the application of specialized techniques is carried out fundamentally to obtain feedback on the product, in addition to increasing and perfecting its marketing activity as a way to improve customer satisfaction. Services: include visits to the customer whose objective is to contact know the expectation and degree of satisfaction with the Italian tile.This process encompasses a group of activities in order to guarantee the stable supply of raw materials and materials. In their opinion, the purchase procedure is technically satisfactory in the current conditions of the economy, although sometimes price is a decisive element when it comes to to value the acquisition of raw material, placing in the background the quality that it may have, this was pointed out in the diagnosis made. Human Resources Administration: covers a series of activities ranging from planning, recruitment and selection from staff to control. In the company a general procedure of personnel planning is applied that satisfies the technical requirements based on the analysis and job description,in addition to the short-term human resources plan (salary, productivity, average number of workers). Further training and development (F + D) and protection and hygiene at work should be carried out, the latter being carried out according to the plan approved by the institution.
In relation to the organization of work and wages there are operating procedures and technological standards. The design of the posts and operations is done according to the technological equipment. The salary is a function of performance and quality. Stimulation is also a function of results.
The performance evaluation is performed according to the established procedure, which is technically evaluated as correct. Control encompasses all activities, although it basically focuses on aspects of labor discipline, with attention to all activities.
- Technological development: based on transfer and technological innovation. Company infrastructure: includes quality activities, production planning, accounting and costing, fundamentally. Quality work, even when planning a group of previous actions and during the production process, must evolve towards a management system, type ISO 9001/2001 standards. The preparation of the production is executed according to a detailed and technically correct procedure. The accounting of the operations applies the established procedure without technical indications against it. Cost is based on a cost per process system that meets the process requirements.
In the analysis of the gravel activity map, it indicates that the activities that are carried out are essential, that sometimes they must be reformulated so that the work is actually socially necessary and the maximum possible addition of value is achieved.
Analysis of the added value of the processes in time and cost.
The production activities of the Italian tile that are analyzed below correspond, according to W. Trischler's criteria, with the concept of process management operations, in that they are framed in the conformation of the tile. The process definition form that was used in the production of the Italian tile. The objectives of the process are: to produce the Italian tile, minimize the cost and guarantee the quality. The activities analyzed are: making the mixture, pressing, curing and polishing
The basis of the analysis is the list of actions that add or not value and the theoretical foundation on the topic of value. It should be noted that this analysis is indicative only, and the company must adopt the decisions it considers pertinent, since it is logical for producers to carry out these actions during the production process; it would be necessary to know how efficiently they are executed?
For the Italian tile this tool cannot be applied, since it would be necessary to know the time and the cost that is used in each action for the elaboration of the final product. However, it can be said that the actions that do not add value are: control at each stage of processing, water irrigation, control of product passage, storage and maintenance. Even when it is recognized that they may be necessary in order to guarantee quality in the process or on the market, these actions represent work that is basically carried out to solve specific problems and situations or technological insufficiencies, but which certainly do not provide a new quality to the product.
Conclusions
After having carried out the theoretical and practical analyzes, I can reach the following conclusions.
- The value chain of Italian tile covers the entire set of theoretical activities proposed by Porter. Its design achieves, in a general sense, providing significant value to the product. Applying the analysis of added value to the products, it is known the activities that do not add value and the cost they represent for its total production and how to reduce its time and cost. The control activity carried out by the company in the different phases of production, although it does not generate value, is of vital importance for the manufacture of the product because it influences quality. The analysis of the value chain and the map of activities allows it seek competitive advantage over competitors in the industry.
RECOMMENDATIONS
Taking into account the conclusions raised, the following recommendations are proposed.
- Create the necessary information bases to apply the value added technique to the product portfolio. Apply the value chain and map the activities for the other products produced by the UEB so that they can identify the activities that add value and which do not. Implement the ABC costing technique as a tool to achieve greater effectiveness in the company's cost system. Develop training for personnel on the cost-per-activity technique.
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