Analysis and design of logistics systems

The present work seeks to present a general overview of the emergence, evolution and trends of logistics systems. The research carried out adds to the traditional design of logistics systems some elements of general systems theory which are considered important to take into account when it comes to practical application in companies. Furthermore, emphasis is placed on the fundamental structure (subsystems) that, in the authors' opinion, make up the logistics system, proposing the treatment to be followed to integrate Logistics Management with the Company's Strategy.

Introduction

With the increasingly growing globalization of the markets and in the search for competitiveness and business excellence, different currents or approaches have developed that in business administration have a prominent role depending on the perspective with which we observe them. Thus, in recent years it has been observed worldwide, and in our country specifically a growing intellectual, academic and business attention around logistics processes; mainly arguing coordination and trust problems between suppliers and customers, a low level of information exchange in real time, the little or insufficient use of technologies (including ICT), arguments in favor of outsourcing services, about the importance of traceability,as well as the new and growing sanitary and environmental regulations exercised by the opening of new markets, among others, thus recognizing the integrated management of the supply chain as a source of competitive advantage.

considerations-for-the-analysis-and-design-of-logistics-systems

Diverse authors agree on the importance of logistics functions for organizations: “… for a company operating in a high-level economy, good management of logistics activities is vital. Markets are often national and international, while production can be concentrated in a few areas. It is the logistics systems that provide the bridge between the production areas and the markets, separated in time and distance… ” (Ronald H. Ballaud Logística Empresarial Control Y Planning), meanwhile Torres Gemeil / Daduna / Mederos Cabrera, in Fundamentos General of Logistics, 2007, argue that "… Logistics contributes to business competitiveness by reducing costs (reducing inventory levels, minimizing delivery transport routes, increasing the use of storage capacities, etc.) and increasing Level of Customer Service (decrease in the order-delivery cycle, adequate channel strategy, decrease the possibilities of inventory breakdown, etc.), that is, important competitive advantages can be achieved from the proper design and application of logistics in the company…"

Theoretical foundation.

1.1 Business Logistics. Evolution and Concepts.

When you are going to proceed to the study of Business Logistics, you must start by characterizing the stages or periods through which you have passed. According to the Spanish Logistics Center (1993), there is a fairly general opinion that the development of Business Logistics has gone through three different phases:

• The period from 1950 to 1964, where the origins lie The intermediate period, from 1965 to 1978, from 1979 to the present, the period of world recession

The review of the specialized literature on this subject allowed a compilation to be made on evolution and some concepts on the term Logistics. In Table 1 summarizes research survey conducted by ordering her evolution over time, showing the main existing features in the busy periods.

Table No. 1: Stages that Logistics has gone through, Source: Adapted from Contribution to Management Control in elements of the supply chain, Pérez Campaña, 2005.

Stage	Main features
1930 to 1949	The existing references on this stage refer to military logistics, highlighting the events related to the Second World War. Bethel, in his book Industrial Organization and Management, establishes an analogy between military logistics and technical material supply. In this book, published for the first time in 1945, we begin to relate military logistics to industrial production.
1950 to 1964	The production and sales capacity is greater than the distribution capacity. Proliferation of products and the increase in product lines (but great difficulty in selling them). Traditional distribution channels are broken (Any product is sold anywhere). In order to minimize the total cost, attempts were made to decrease costs in one area, for example storage, spending more in another area as transportation. This was called trade-off.
1965 to 1979	Maturity of the concept of physical distribution and joined with that of materials management. Customer service requirements are becoming increasingly important. The world economy begins to experience periods of recession and growth. Managers begin to worry and make decisions regarding the inventory management strategy, such as: how much inventory should be kept, where should be located who to serve from each point. They understood that the reductions in inventory and accounts receivable increase cash flow. The posture of physical distribution and material management begins to change, moving from a reactive to a proactive point of view
From 1980	Great uncertainty, the largest economic has taken place since the beginning of the 1930s. Capital distribution is as important as its cost due to capital scarcity (this is critical since physical distribution and materials management are capital intensive processes) Another aspect of uncertainty is energy (logistics is an energy intensive process). Inflation is another dimension of uncertainty. The influence of distribution on business profitability is increasingly recognized. Emphasis is placed on managing the entire supply chain, further controlling suppliers, distributors and customer actions in order to adjust production rates to end-user demand. Thus, it is possible to reduce inventories, shorten delivery times and reduce total logistics costs.

In order to arrive at a definition of the concept of Logistics that would serve as a guide for carrying out this research, an exhaustive analysis of the concepts handled by different authors was carried out from its emergence to the present day.

Table No. 2: Concepts on Logistics, Source: Adapted from Contribution to Management Control in elements of the supply chain, Pérez Campaña, 2005.

Authors	Concepts
Ralph Bordosi, 1927	There are two uses of global distribution which must be clearly differentiated, the first the use of the word physical distribution, such as transportation and storage; the second is the use of the word distribution as marketing says best.
JF Magee, 1968	The movement of materials from a source or origin to a destination or user. Although it did not include the flow of information in the definition, it is analyzed as counter flow.
National Council of Physical Distribution Management, 1967	A term used in manufacturing and commerce to describe the wide range of activities concerning the efficient movement of finished products at the end of the production line to the customer and in some cases includes the movement of raw materials from the source of supply to start of production line.
Bowersox, 1979	The application of the system approach to solving the supply and distribution problems of companies.
Council of Logistic Management, 1985	The process of planning, implementing and controlling the efficiency, the effective cost of the flow and storage of raw materials, products in process, finished products and related information from the point of origin to the point of consumption in order to conform to the customer's requirements.
Hervé and Dancel, 1987	They offer three concepts of the term logistics according to: the technical vision of this function, the orientation towards distribution and the strategic side. • Logistics is getting the right production, in the right place, at the right time, and at the lowest total cost. • Logistics is to provide a beneficial level of distribution service to customers, through an effective organization, planning and control of transfer and storage activities that facilitate a production flow. • Logistics is a means of supporting the firm's overall goal and achieving competitive advantage.
Council of Logistic Management, 1992	The process of planning, implementing and controlling the efficiency, flow and effective storage of products, services and related information from the point of origin to consumption in order to conform to customer requirements.
Spanish Logistics Center, 1993	Activity made up of two basic functions: 1. Materials management: responsible for material flows in the supply of raw materials and components and in manufacturing operations to the packaging of the finished product. 2. Distribution management: responsible for packaging, inventory control of finished products, through the handling, storage and transport processes until the product is delivered or customer service is delivered.
Santos Norton, 1996	It is an approach that allows the management of an organization based on the study of materials flow and the information flow associated with it, from suppliers to customers, based on five basic functions that are carried out in organizations. - Supply management. - Process management. - The physical distribution. - Integrated planning. - Quality assurance.
Martha Gómez and José A. Acevedo, 1996	The set of all activities related to the flow of materials from the supplier point to the consumer point, includes, in addition to material activities, those through which the material flow (management) is planned, organized, regulated and controlled efficiently, understanding for efficiently reaching the consumer point with the quantity and quality required at the time and place demanded at the lowest possible cost.
Steven, 1999	Synchronization of customer requirements with the material flow of suppliers.
Cespón & Auxiliadora, 2003	It is the process of managing the material and informative flows of raw materials, inventory in process, finished products, services and residuals from the supplier to the client, passing through the stages of supply management, production, physical distribution and residuals.
Ruano & Hernández, 2003	A strategic management system for human resources and the information, material, financial and return flows associated with the supply, production, distribution, storage and marketing of merchandise from suppliers to customers in order to satisfy their needs. last with quality and low cost as a source to achieve competitive advantages in organizations.

In the previous table, it was possible to see how the approach has varied with each author and period, since the constant change in the business and world environment has led to the development and evolution of logistics thinking and the ways of materializing actions in industrial practice. and commercial (Ferié Parra, 2005).

It is necessary to highlight that this concept has been nourished by the benefits of the JIT approach, the MRP and other modern production management systems, reaching the present day with the name of Business Logistics or Supply Chain Administration, as a way of directing the productive processes from the perspective that the four fundamental parts of the process (supply-production-physical distribution-logistics of the residuals), must work fused, harmoniously integrated, as the only way to achieve an adequate level of customer service at the lowest cost possible without causing harm to the environment.

Taking into account what has been analyzed up to now in a tight synthesis what has been treated by different authors on the term Logistics, and considering the boom and development that it has reached, it can be concluded that there is uniformity of criteria (each in its specific historical moment) including that of the author regarding:

• Logistics is defined with a system focus. It is attributed an efficient flow of materials, passing through the stages of Provisioning Management to Waste Management. It implies an informative flow associated with these processes. The flow goes from an origin or Source to a customer or destination. A financial flow is assumed.

In the doctoral thesis CONTRIBUTION TO MANAGEMENT CONTROL IN ELEMENTS OF THE SUPPLY CHAIN. MODEL AND PROCEDURES FOR MARKETING ORGANIZATIONS, (Pérez Campaña, 2005) the author after carrying out an in-depth analysis of the state of the art and the practice of business logistics, reaching the following conclusions:

• The first concepts given mainly emphasize activities, among which storage and transport are among the most mentioned. There is a second moment in the development of the concept in which the system approach is introduced (with the Distribution and Provisioning subsystems being the ones most dealt with by the authors (decade of the 70s).At the end of the decade of the 80s, the study of logistics began to gain strength with a focus on processes through the incorporation of material and informational flows into the analyzes. In the 90s, the concepts address the issue of services, as well as the explicit treatment of the need to conform and attend to customer requirements.The year 1996 constitutes an important point of reference in the dissemination of the conceptual basis developed by Cuban researchers. At the end of the 90s, concepts such as: alignment, integration, synchronization began to appear, which constitute a superior qualitative expression from logistics to supply chain management (SCM: Supply Chain Management), where the novelty in this field lies in coordinated treatmentof activities In the scientific literature, there are two approaches to dealing with the concepts of Business Logistics and Supply Chain Management (SCM). The first considers that both terms are the same, while the second establishes a difference, considering Logistics as a business function with specific objectives and Supply Chain Management a management philosophy. This author shares the first approach and as such both terms will be treated interchangeably in this thesis, although he believes that the treatment of concepts is influenced by the context and time of their formulation. By analyzing the latest contributions made in the definitions, it can be seen that within the logistical activities is included with great emphasis thecustomer service; in subsystems, the incorporation of the reuse or recycling subsystem ; and within the flows; the return flow, these last two aspects being recognized in the scientific literature as Reverse Logistics.

From the previous analyzes, it is proposed that Supply Chain Management requires the integration of the subsystems, processes and activities related to the material flow, as well as the information necessary to direct it and the financial flow, with the aim of achieving the levels satisfaction of end customers or consumers that guarantee the sustainability of organizations and the ecosystem. (Pérez Campaña, 2005).

Before concluding this part, it is necessary to highlight that Logistics must be analyzed based on the mission of each entity and for example the existence of industrial or Production logistics, service logistics or trade or commercial logistics. (See Torres Gemeil / Daduna / Mederos Cabrera / Martínez Rodríguez 2003; Daduna 2007).

1.3 Structure of the Logistics System and scope of the Supply Chain.

In the literature consulted, there are several authors (including the author of this work) who state that the scope of the supply chain defines the Logistics System (SL), considering this as “the set of physical and informational elements necessary for the realization of a certain material flow, along multiple rows of suppliers and clients ” (Cespón Castro & Auxiliadora, 2003). In this sense, it is made up of the Physical System (sources of supply of materials, warehouses, companies and customers) and the Information System that includes all the information flow necessary for planning and controlling the material flow. It can be said, then, that the physical components involved in the logistics system are markets, facilities and equipment. In addition to these physical components that are part of the logistics network, there are two other components that complete this system:

• The organization (structure) necessary to operate the system The management system, represented by management techniques, information, hardware and software for the collection, transmission, storage, processing and exposure of the data necessary to support the organization and physical configuration.

Based on these concepts, the general structure of a Supply Chain is made up of the supply, production, distribution and residual subsystems (Cespón Castro & Auxiliadora, 2003). (See Figure No. 2).

1. Residual

Depending on its complexity, the Supply Chain can be classified as indicated below.

• Direct supply chain (Case that occupies this investigation): Contains the suppliers, the company and its customers, where the link between these links is predominantly material in nature. Extended supply chain: Contains suppliers of suppliers to the company in different degrees and clients of their clients, but in the relationships the material flow continues to predominate. Complex supply chain: Supply chain extended but with links beyond the material flow, such as design, finance and others.

From the aforementioned, it is evident that in every supply chain even when it must be managed in a comprehensive manner (Systemic Approach), it is possible to carry out a more detailed study when it is conceived as the union of four essential parts: Supply Logistics, Production / Operations, Distribution and Residual. For this reason, in the framework of this work, these aspects will be analyzed separately, excluding the Residual process for future research.

In the specialized literature, some authors propose the Logistics System (SL) as such, the interrelated set of resources, procedures and methods that allow completing the logistical support.

Explaining this first statement, it can be said that a logistics system is a relational and integrated set of organic structures, means, procedures and methods that allow it to develop the logistics function, whose mission is to interact logically with orderly resources, so that they can effectively the intended objectives are achieved. The logistics system must be explicit and each of the component parts must be clearly and precisely identified. Taking into account what was previously proposed a logistics system, it is defined and integrated, when the following components are defined and implemented:

• Determination of the structure that relates each of the parts of the system. Determination of the resources to finalize the structure. Identification of the logistics cycles that will be executed, defining the time necessary to complete each cycle. Define the management of the structure. planning system. Identify logistics cost factors. Implement logistics control and audit.

For their part, Cespón Castro & Auxiliadora, 2003 , state that in the management of the company's production area, one of the most important changes in focus implemented in the last half century, surely stems from the adoption of the systems approach and the consideration of productive activities as members of a logistics system.

Logistics activities must be coordinated with each other to achieve greater efficiency throughout the production system. For this reason, logistics should not be seen as an isolated function, but rather as a global process of generating value for the client, that is, an integrated process of tasks that offers greater speed of response to the market, with minimal costs. (See Figure No. 3).

Logistics is a system with interdependent activities that may vary from one organization to another, but will normally include the following functions: Transportation, Storage, Purchasing, Inventories Production planning Personnel management Packaging Customer service (http: //www.oasis. com.co/modules.php?op=modload&name, 2007).

In the definitions made by authors and institutions such as: Ballou, (1991); Coyle, (1993) and the Spanish Logistics Center, (1993), highlights the integrative and systemic nature of the term in general, logistics is recognized as a function associated with customer service, in which the flow is integrated of materials and information with all the links of the value chain, ranging from suppliers to customers.

As Fusté (1999) proposes, applying logistics is avoiding, as occurs in the traditional company, that the different areas that comprise it (purchasing, production, distribution, transport, etc.) try to optimize economic results independently. On the contrary, all the departments working in a coordinated way with an overall vision guarantee what is known as the logistical approach.

The Figure No. 4 shows the process approach of the SL for business management. It covers the inputs, transformations and outputs that take place globally, as well as the interrelationship between the different parts that make up the business, inferring that any action carried out in one of them will have a direct influence on the others, including the environment in which the entity develops, hence the importance of a comprehensive and process-based approach that fosters the proper functioning and competitiveness of the economic organization.

Figure No. 4: Approach by process of the Logistics System; Source: Military Review, November-December 2001.

According to (Cespón Castro & Auxiliadora, 2003), the structure of a logistics system can be as described in Figure No. 5, considering that for the design of a logistics system the following must be specified:

1. The structure and characteristics of each of the three main components: logistics network, logistics organization and the management system. The way in which each component is interrelated with the other two. The interrelation between the logistics system and other important functions with which is directly related: marketing, production and finance

On the other hand, in the General Bases for Business Improvement, established by the Executive Group (2005), eighteen Systems are identified to be implemented by the company to guarantee the maximum efficiency and effectiveness of the organization (See Annex), among them is the Organization of Production of Goods and Services System, which presupposes the design and implementation of the Logistics System, ”… Logistics System To be implemented in the company, it must guarantee the acquisition, movement, storage of products and inventory control, as well as all the information flow associated with these activities, so that the present and future profitability of the company is maximized in terms of costs and effectiveness, defining it as a process or set of processes that guarantee activities such as:

• Customer service, transportation, inventory management, order processing.

Where the implementation of the system in companies guarantees, among other aspects:

• Avoid the shortage of products. Minimize the cost of transportation. Obtain a good in a minimum time or minimum storage of goods (in time and quantity). Minimize the production stocks.

Taking as a premise that when designing the logistics system to be implemented in the company, special attention will be paid to the design of the distribution; that is to say, to design the transport network and locate warehouses dimensioned to manage the minimum, average or maximum demand for items that are produced or marketed by companies. The relationship between transport capacity and warehouse capacity is a vital element for the design of the logistics system to be implemented in the company… ”.

Taking into account the existing models analyzed so far by different authors regarding Logistics Systems, as well as the General Bases for the Implementation and Consolidation of Business Improvement and the author's experience in this task, an adaptation is shown in Figure No. 6 of the model of a Logistics System raised by the current conditions of the Cuban company.

Once the criteria and definitions exposed by different authors on the Logistics System have been analyzed, the current conditions of the Cuban company and taking as a reference the Bases for the Implementation and Consolidation of Business Improvement and the author's experience in this area, will be conceived within the framework of this thesis, the following denomination, will be understood as Integral Logistics System to the integration of Supply Management, Production and Distribution with the Information System and Financial Relations associated with them in synchronization with customer requirements. It is necessary to note that reverse logistics is not present in the conception of the logistics system, since this component was not developed in the application, requiring its inclusion and implementation in future interventions.

Structuring and implementing a Comprehensive Logistics System will place a powerful tool in senior management's hands that will allow it to be used as a support for strategic decisions in order to achieve business success.

Finally, it is necessary to advise, in the author's opinion, that when designing the Logistics System of the company, the team that assumes this responsibility, must guide its work in such a way that for the system to achieve a degree of e cacia and efficiency, which meets the requirements of the environment, it is recommended to comply with the following guiding concepts, which must be taken into account to specify business success and effectiveness:

Simplicity: Requires an uncomplicated logistics organization.

Economy: It consists of using only the logistical means necessary and sufficient for each occasion.

Balance: Consists of adequately combining support needs with the possibilities and resources of the entities.

Opportunity: The support must be available for the selected process in quantity, time and place where it is needed.

Continuity: As the ability to support and monitor each and every phase of the system.

Flexibility: It is the ability to adapt to the unforeseen needs of the organization and the environment.

1.4 Indicators as an evaluation tool for the Logistics System. The Balanced Scorecard (CMI)

It is a necessity for companies to measure whether or not they are achieving competitive advantages, for which financial indicators are no longer sufficient (Vogel, Héctor 2002), since to obtain competitive advantage it is necessary: ​​create value for customers, create value of intellectual capital, quality of service, quality of processes, technology and innovation.

Although it is apparently an obvious perception, in fact most organizations, even those that are implementing new performance measurement systems, are not able to align these measurements with business strategy and ultimately with their Logistics System, where in A company that produces goods, for example, argues that logistics costs can represent up to 60 percent of the total cost of production.

In the case of Cuba, and specifically in the mining territory of the Holguín province, according to the author's experiences, most try to improve the performance of existing processes, through lower costs, quality improvement and shorter response times, but They are not identifying truly strategic processes: those that must be done exceptionally well, for an organization's strategy to succeed.

In practical experience, one of the fundamental shortcomings of the Cuban business sector is the lack of a set of more or less standardized indicators that serve to evaluate management. In companies, we can see that the Finance area uses indicators such as return on investment (ROI), etc.; The Commercial department uses, for example, quota indicators, but when we approach the logistics area, we often find ourselves lacking precise and consolidated information regarding its performance. Therefore, it is evident to implement a system of indicators to communicate and align the organization with the business strategy having as support the Logistics System; far from the historical, short-term focus on cost reduction and low-cost competition,and towards the generation of increasing opportunities, offering customers products and services with added value and to measure. In this sense, the Balanced Scorecard (BSC) emerges, or Balanced Scorecard (CMI), which will allow us to measure the performance of the key factors of the logistics system, taking into account each of the four perspectives (financial, customer, internal processes, as well as learning and growth) in order to assess the fulfillment of the system's objectives.internal processes, as well as learning and growth) in order to assess compliance with the system's objectives.internal processes, as well as learning and growth) in order to assess compliance with the system's objectives.

1. A) The financial perspective.

Link the objectives of each business unit with the company's strategy. It serves as a focus for all objectives and indicators from all other perspectives.

1. B) The client perspective

Identify the customer and market segments where you are going to compete. Measure value propositions that target customers and markets. Evaluate customer needs, such as satisfaction, loyalty, acquisition and profitability, in order to align products and services with their preferences. It translates the strategy and vision into objectives on clients and segments and it is these that define the processes of marketing, operations, logistics, products and services.

1. C) The internal processes perspective.

It defines the value chain of the processes necessary to provide customers with solutions to their needs (innovation, operation, after-sales service). The objectives and indicators of this perspective are derived from explicit strategies to exceed customer expectations.

1. D) The learning and growth perspective.

It is one of the most important pillars on which the three previous perspectives are based, it consists in the capacity of the company and those who work in it to learn and grow continuously. In general, learning cannot be separated from work, in organizations there is no learning without work or work without learning. In this perspective, the necessary inductors are obtained to achieve results in the previous perspectives. Employee capabilities, information systems capabilities, and the organizational climate are measured to measure staff motivation and initiatives.

In order to establish the entity's results objectives, it is necessary to follow some basic premises to incorporate the Balanced Scorecard.

1. Set goals so that employees can identify themselves and make them their own. Companies ask employees to double or triple sales or get to the market faster, but do not explain how. In this sense, it would be advisable to provide tools and methods to achieve such ambitious objectives. Identify and rationalize strategic initiatives. Once the goals for the indicators have been established, whether they are financial, customer or growth and learning, it should be assessed whether these initiatives will achieve these goals or if new initiatives will be necessary.

Finally, it is necessary to highlight that all the areas and members of the organization must be involved in the alignment of the business strategy with the management of the logistics process, therefore everyone should be directed to achieve the same goals.

Considering this synchronization as an element of vital importance for the achievement of business success, an analysis of this interrelation follows.

1.4 The need for integration between Logistics Management and Strategic Business Management

Competitiveness is associated with "strategic thinking", with "strategic capacity", that is, with establishing the principles that should guide all operations to achieve the necessary links between corporate strategies and company processes. The production and / or service provided by any company materializes in its processes. The study and continuous improvement of these in the search for the decrease in costs, the increase in productivity, the increase in levels of quality and customer service, etc., among other desired positive effects, including competitiveness, depend of its "excellence". Chase & Aquilano (2000), argue that the competitiveness of a company refers to its relative position compared to other firms in the market.For this, the organization must develop an operations strategy that adequately adjusts to its mission of serving the client (Luchi & Paladino, 2000). Guns (1999) states that "… now you don't compete only on cost, now the competition is related to Quality, Time, Service, Flexibility and Availability." On this aspect, the definitions of strategy given by business strategy gurus such as Dupont Chandler (1962), Ansoff (1993), Porter (1985), Hamel (1998), Prahalad (1994), Mintzberg (1994) and Drucker stand out. (1996) among others, managing to define the most relevant elements that characterize business strategy.Guns (1999) states that "… now you don't compete only on cost, now the competition is related to Quality, Time, Service, Flexibility and Availability." On this aspect, the definitions of strategy given by business strategy gurus such as Dupont Chandler (1962), Ansoff (1993), Porter (1985), Hamel (1998), Prahalad (1994), Mintzberg (1994) and Drucker stand out. (1996) among others, managing to define the most relevant elements that characterize business strategy.Guns (1999) states that "… now you don't compete only on cost, now the competition is related to Quality, Time, Service, Flexibility and Availability." On this aspect, the definitions of strategy given by business strategy gurus such as Dupont Chandler (1962), Ansoff (1993), Porter (1985), Hamel (1998), Prahalad (1994), Mintzberg (1994) and Drucker stand out. (1996) among others, managing to define the most relevant elements that characterize business strategy.Mintzberg (1994) and Drucker (1996) among others, managing to define the most relevant elements that characterize business strategy.Mintzberg (1994) and Drucker (1996) among others, managing to define the most relevant elements that characterize business strategy.

It is also one of the premises for the successful implementation of the SLthe strategic picture of the organization being defined, as a result of its strategic planning, being necessary the systematic review of the link objectives-strategies in the "day to day", focusing attention on logistics processes and within these, on activities criticisms, which define their success or failure, (Parra Ferrié, 2005). Some of the strategic planning problems associated with the logistics process that frequently occur are related, among other elements, to the allocation of geographical areas to warehouses, study on the desirability of shipping directly to the customer or using intermediate storage, and finally, determining the best means of transport for the transfer of products both nationally and internationally,stressing that these are only a small representation of problems of a strategic nature(Ballou, 1991).

Carrying out a comprehensive diagnosis of the organization will allow the deployment of strategies, policies and the establishment of management indicators to achieve the strategic objectives of the functional areas, since it becomes an exhaustive analysis of the internal and external factors that hinder the achievement of the results. expected. The Production / Operations functional area is organized based on the proposed logistics system (SL), which has the mission of reaching the customer at the requested time with the necessary product, having precisely as strategic objectives the improvement of customer service, the decrease in the logistics cycle and the cost of the logistics system, so the proposed Integral Logistics System presents a system through which the integration and synchronization of its processes (G.Provisioning, G. Production, G. Distribution), will allow an agile flow to respond to a changing and increasingly demanding demand.

1.6 The company as a whole. Systemic approach

The concept of system stems from the problem of the parts and the whole, already discussed in antiquity by Hesiod (VIII century BC) and Plato (IV century BC). However, the study of systems as such did not concern until the Second World War, when the interest of interdisciplinary work and the existence of analogies (isomorphisms) in the functioning of biological and automatic systems are highlighted.

A lively interest in interdisciplinary studies began in the 1940s in order to explore the no-man's-land existing among the established sciences. This is how Wiener and Bigelow discover the ubiquity of feedback processes, in which information on the operation of a system is transmitted to previous stages forming a closed loop that allows evaluating the effect of possible control actions and adapting or correcting the system behavior. This study would take a letter of nature when, in the 1950s, L. von Bertalanffy proposed his General Systems Theory, thus the systems approach it appears to tackle the problem of complexity through a way of thinking based on the totality and its properties that complements scientific reductionism.

The definition of System has been treated by several authors, for example, the same L. von Bertalanffy (1968), states that: it is a set of units in interrelation. For his part (Ferdinand de Saussure, 1931), he states that: it is an organized totality, made up of solidary elements that cannot be defined more than the one in relation to the others based on their place in that totality.

According to Ackoff, a system is a set of two or more elements of any class that has three properties:

• Each element of the set affects the properties or behavior of the whole; The way in which each element affects the whole depends, at least, on one more element, or, in other words, the elements are independent; If they are subdivided in some way forms the elements of the system, the resulting parts have the first two properties.

It has been suggested by different authors that we are leaving the era of machines and have entered the era of systems. Those responsible for the management and administration area deal, preferably with a particular type of system organization, called OR. Following Ackoff, an organization has the following characteristics:

• It is a system with a purpose (it has the ability to choose, the means or the ends, or both) composed of at least two elements - people - with a goal that has a common objective. Among the different elements that comprise it, there is a functional division of labor. Subassemblies or elements that perform different functions can respond to the behavior of each other through observation and communication. At least one subset or element of the system must have the control function.

If the 4 previous points are examined, it can be verified, without major difficulty, that all these characteristics are owned by a company. But not all organizations are companies. So are a ministry, a hospital, a university, a church, etc. (Leyva Rodríguez, 2002).

When considering the company as an organization, the existence within it of parts (Systems) is recognized, which in turn are also divided into (subsystems), where these compounds that have their own purpose, to the extent that the objectives if they are not coincident, conflicts will appear that cannot be solved if not considered from a system perspective.

According to Schroeder, production systems are specific processes of transformation of a set of factors (input) into a set of products, goods or services (output) ”. That is why the organization is currently analyzed and studied as a system that works with a process approach, that is, all its functional areas work with the same objective: the mission of the Organization and not its particular goals. For this, there are various business management methods that use this approach: Total Quality Control, Just In Time (JIT), Theory of Constraints (TOC), Business Logistics and particularly in Cuba Business Improvement.

To carry out this work, the following are combined: Business Improvement and Business Logistics, constituting the first one a process of continuous improvement for Cuban organizations, which arises with the objective of achieving their efficiency and effectiveness, based on determining which are the problems that the organization presents (diagnosis) in all its systems, to then carry out the design and implementation of the same as a "tailored suit" to achieve the proposed objectives taking into account the following characteristics that may be applicable to any of the mentioned Systems:

• There must be interrelation between its components (relationship between the parts and the whole). Systems are ordered in a hierarchy. The parts of a system are not equal to the whole. The limits of systems are artificial. Systems can be open or closed - depending on the influence with the environment. Each system has inputs, processes, outputs and feedback cycles. The forces within a system tend to be contrary to each other (feedback) to maintain balance.

1.6. 1 Considerations for the analysis and design of Systems.

According to the criteria of various authors, including the author of this work, Systems Analysis basically tries to: determine the objectives and limits of the system under analysis, characterize its structure and operation, set the guidelines that allow achieving the proposed objectives, and evaluate its consequences. Depending on the objectives of the analysis, we can face two different problems:

• Analysis of an existing system to understand, improve, adjust and / or predict its behavior Analysis as a previous step to the design of a new system.

In any case, we can more formally group the tasks that constitute the analysis into a series of stages that follow one another iteratively until the entire process is validated:

• Conceptualization

It consists of obtaining a very high-level vision of the system, identifying its basic elements and their relationships with each other and with the environment.

• Functional analysis

Describe the actions or transformations that take place in the system. These actions or transformations are specified in the form of processes that receive inputs and produce outputs.

• Analysis of conditions (or constraints)

It should reflect all those limitations imposed on the system that restrict the scope of possible solutions. These are sometimes derived from the system's own objectives:

• Operational, such as physical, environmental, maintenance, personnel, security restrictions, etc. Of quality, such as reliability, maintainability, safety, conviviality, generality, etc.

However, on other occasions the constraints are imposed by limitations on the different usable resources:

• Economic (reflected in a budget). Temporary (which means deadlines to be met). Human, (reflected in the competences). Methodological, (involving the use of certain techniques). Materials, (such as space, available tools, etc.)

• Model building

One of the most common and convenient ways to analyze a system is to build a prototype (a model in short) of it.

• Analysis validation

In order to verify that the analysis carried out is correct and to avoid the possible spread of errors to the design phase, it is essential to proceed with its validation. For this, the following points must be checked:

• The analysis must be consistent and complete. If the analysis is presented as a previous step to carry out a design, it must also be verified that the proposed objectives are correct and achievable.

A fundamental advantage of prototyping from the point of view of validation is that these models, once built, can be directly evaluated by users or experts in the system domain to validate the analysis on them.

From all the aforementioned, it is evident that, once the diagnostic process has been carried out as the first step for the application of Business Improvement, it is necessary to take into account all these elements to achieve effectiveness in the design and implementation of the systems that make up said file and in particular the Logistics System, since it constitutes a fundamental pillar for the success of the organization

1.6.2 Subsystems of a system

Subsystems are the parts that make up a system. Each subsystem has its own life, but allows the system to be a whole and produces a series of variables to establish the state of the system, (Levine and Fitzgerald, 1992). The function and structure of a system can be studied, analyzed and described through the basic subsystems.

As could be seen previously, in Figure No. 6, which shows business management with a logistical approach, where the different systems of the company must be covered simultaneously, giving priority to the Organization Systems of the company due to their weight and importance. Production of Goods and Services, Marketing and Financial Relations, where the interrelationship between the different parts that make up the business activity means that any action carried out in one of them has a direct influence on the others, hence the importance of a comprehensive approach that fosters the proper functioning and competitiveness of the organization.

Most of the authors consider logistics or the logistics system with three fundamental subsystems: supply, production and distribution, (See Torres Gemeil / Daduna / Mederos Cabrera /, 2007 ), conceived in an integral way (see Figure No. 7) and focused on customer satisfaction.

Figure No. 7: Logistics system, Source: Torres Gemeil / Daduna / Mederos Cabrera, 2007).

The following is an analysis of the functions of each subsystem component of the Logistics System.

1.6.2.1 Provisioning Subsystem

The traditional sourcing approach can be characterized by a relationship between supplier and customer, marked by strong competition between both parties. This confrontation is stimulated by the supply trend towards the reduction of prices in the short term and is put into practice by the negotiation policies, where quality, delivery time and design specifications, act as restrictions imposed by the user and are transmitted the supplier with the filter of the negotiation between buyer and seller, who act as mere intermediaries (Cespon Castro & Auxiliadora, 2003).

Undoubtedly, the new conception of the logistics system as an integrated supply chain makes it necessary for suppliers and customers to begin to recognize the opportunities to obtain mutual advantages that can be derived from sharing information about material needs in a continuous and loyal way. The benefits of this closer relationship can be found in:

• Greater added value to the product. Shorter and more reliable delivery times. Fewer last minute changes in schedules. Fewer stock. Fewer quality problems.
  • Greater adaptation of the service and the product to the specific needs of each client.

Therefore, it is evident that in today's environment, relationships are based on cooperation to achieve a common goal: to improve the overall productivity of the entire logistics chain. In the Annex, the procedure to be used for the design and / or improvement of the Supply Subsystem is shown under a systemic approach of continuous improvement. Below are some aspects of the Logistics System in correspondence with Figure No. 7, it consists of the following functions:

• The planning, which emphasizes the management of the physical units, consists of the forecast of the needs from the monitoring of sales or deliveries, knowing the stocks and defining the parameters for inventory management. Purchasing needs over time is accomplished by supplementing all of the above with order tracking.

• Purchases have a strong economic accent. Its most representative operations are the following:
  1. Purchase management Search, evaluation and selection of suppliers Negotiation Control

The objectives of the provisioning subsystem can be summarized as:

• Supply the customer with the quantity they need at the right time. Minimize the cost of acquisition to obtain the maximum benefit. Minimize the integral cost of supply (operating expenses) to obtain the maximum profitability.

1.6.2.2 Production / Operations Subsystem

The production assumes the responsibility for the transformation of the materials acquired through the supply process into products for subsequent distribution. Its main functions are:

• Production planning that basically includes:

1. Interrelation with the commercial area in terms of forecasting demand. Forecasting, planning and scheduling of the quantities to be produced. Calculation of necessary resources, both material and human, for the planned planning.

• Production control that basically covers:

1. The management of stocks of finished products and products in the manufacturing process, which allows continuity in delivery to the following processes, establishing rotation and coverage rates, monitoring and control of production, with the corresponding analysis of deviations according to orders forwarded to manufacturing.

The objectives of the production subsystem include:

1. Provide the products to the distribution process under the conditions of quality, quantity and deadlines required. Minimize the cost of production seeking the maximum benefit. Minimize the overall cost of production until the time of moving to distribution, obtaining maximum profitability.

1.6.2.3 Distribution Subsystem

Through distribution the customer receives the required products. Coming up next its principal functions are explained:

• The preparation of orders for the office that consists of the following operations:

1. Reception and classification of orders. Selection of the method for dispatch. Formation of orders. Revision and control. Transport materializes the physical distribution attending to the geographical area to serve in the necessary time with adequate exploitation rates of the means used for it, having Take into account the current legislation. As essential objectives of the distribution subsystem, the following can be mentioned: Reach the client on time and in the stipulated way. Minimize distribution costs, maximizing profit. Minimize the total cost of physical distribution. until delivery to the client, for greater profitability.

Conclusions

Taking into account everything analyzed so far, the following conclusions could be reached:

1. The considerations raised by different authors, recognized in the area of ​​Business Management, recognize the importance that the design and implementation of logistics systems requires for companies to ensure the levels of production and services demanded by customers. The proper implementation of SL allows to guarantee the right product, in the right place, at the right time and with the required quality. The main subsystems of the Logistics System are defined as: Procurement, Production / Operations and Distribution. The need for systems integration and coordination was confirmed logistics with the overall strategy of the company.

Bibliography

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Havana and Berlin. University Publishing House; February 2007. 367p.

Not excluding in any way the Systemic Approach.

These systems make up the Business Improvement file of the company according to Decree 281/05 of the Executive Committee of the Council of Ministers (CECM).

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