Given the relevant social economic demand for beer production, a qualitative leap is necessary for its more efficient operation and that is why the beer UEBs are interested in expanding and perfecting production, and increasing yields, with minimal expenses., being these essential elements for your management system.
The space it requires has not been dedicated to the planning process in the industry, in terms of the study of new forms, techniques and procedures that are in correspondence with the expected transformations in this sector, even less has it been thought of the UEB, which as organizational forms of production organization have been strengthened.
In the particular case of the UEBs that are subordinate to the Cervecería Tinima de Camagüey Company, their planning focuses on the preparation of the income, cost and expense budgets for each year, segmenting them by months, cost center and expense elements..
In these UEBs planning is done in a traditional way, based on the past, the future is projected.
The information system that is used as a reference to prepare budgets, considers costs and expenses that are not the responsibility of this organizational structure, mainly indirect, reducing profits and affecting the incentives that workers receive. This fact constitutes a threat to the development of an economic culture and a feeling of belonging for the results, in many cases causing demotivation due to the lack of consistency between the goals and objectives at the UEB level and those of each individual worker.
To resolve the situation within the framework of the research carried out, a procedure is proposed that allows planning by the utility center, considering each process (bottling and manufacturing) as such and charging each one only the costs and income that are the responsibility of this level. in turn taking into account that the costing process is carried out starting from the beginning, that each center consumes activities and these resources and that these are ultimately the ones that generate costs.
For the company's management system, the planning and control functions represent its true scientific and practical content. Planning provides a frame of reference for decision-making and is the process of connecting between business strategies and the company's operations strategies, therefore, it represents the study and the establishment of company goals both long and long. short term, and referring to the total system as to each of its subsystems.
In the business system there are many indicators that are subject to planning, one of the most important being the cost of production.
The cost of production should become a faithful gauge of the use of material, labor and financial resources in the production process, because, in addition, together with the indicators of the volume of production, it determines the level of profit that the organization obtains.
By planning the cost of production, it is possible to trace the optimal magnitudes of expenses to undertake production, through the company's operating results, technical-economic factors and established indicators.
The planning of the cost serves as a control instrument to the management of the institutions, because it allows them to know, systematically and in an agile way, any deviation that occurs in the actual execution of production with respect to the planned plan, in each of the areas and the entity as a whole.
The cost constitutes, in addition, the base for the formation of the prices of the elaborated products. That is why it is so important to obtain the maximum production, with the minimum necessary expenses, in order to guarantee the gradual increase in profits or utilities.
All of the above explains the vital importance of the correct planning of the cost of production for the performance of the economic work of the organizations, since this is the way of knowing the expenses that the institution must incur to elaborate its production and achieve better control of what is really happening and thus be able to define who is responsible for the detected deviations.
To carry out the planning process and fulfill one of the main functions of management, different techniques are used, however the one commonly used by the business system is that of budgeting.
Taking into account the current conditions in the companies and the need to directly link the workers in the elaboration of the cost plan and fundamentally in the reduction commitments to achieve greater productive efficiency, the greatest emphasis should be on use of the method that best meets this requirement. In this sense, of the existing methods, the most appropriate is the normative, through the cost estimates by area of responsibility.
The UEBs as economic units that are, must use all the techniques and means that, respectful of business principles, enable them to be in the competitive market, in suitable conditions to face them, always taking into account their subordination to the company and their limited independence..
The brewing company in its transition to forms of production that allow efficient performance has been structured in UEB.
Given the immense social economic demand for beer production, a qualitative leap is necessary for its more efficient operation and that is why the UEB Breweries are interested in expanding and improving production, and increasing yields with the minimum of expenses., being these essential elements for your management system. Therefore, it is necessary to apply a planning procedure considering the decentralization and the segments that make up the UEB Cerveceras, particularly the Ciego de Ávila Beer Bottling Company, aimed at raising the quality of managerial decision-making.
MATERIALS AND METHODS
The economic analyzes of the Cervecería Tínima Camagüey Company were used, as well as those of the UEB Embotelladora de Cervezas Ciego de Ávila, which made it possible, based on the evaluation of this documentation, to detect the insufficiencies associated with economic planning and the budgets that they constitute its material support.
In addition to the documentary analysis, interviews were established with officials and specialists who supported the diagnosis.
The method is the way, the way, the set of regulated actions that allow to advance in the knowledge of the object of study, until achieving the research objective.
Three types of methods are used in the research, these are:
- Theoretical methods: They enable the conceptual interpretation of the data, they allow the theories to be interpreted. They are used in the construction and development of theories by explaining the facts and delving into the essential relationships of unobservable processes. Empirical methods: they provide the data for the development of scientific theories. They are the way to verify scientific facts, allow conclusions to be reached and make it possible to test the veracity of hypotheses and theories. Statistical methods: they are used in the selection of the research sample, they allow the data obtained to be processed.
For the design of the Procedure the general knowledge methods were applied, also valid for this type of research.
- Induction method - deduction: Different documents were consulted, such as the elements of expenses, the UEB verification balances, primary registers that pay the exit to the different cost centers, an extensive bibliography updated and specialized in the subject matter studied.
For the synthesis of the theoretical methods, the book Methodology of Educational Research Part One was used fundamentally.
- Observation method: It allowed orientation towards an objective and made it possible to make an immediate and direct reflection of the reality in which it was achieved
Different techniques were also applied, such as:
- Scientific observation. Goal-oriented, consciously and deliberately planned, selective and validity, reliability and accuracy are controlled. Participant observation: Characterized by a broad social interaction of the researcher and the groups participating in any process. Statistics: Being statistical a branch of mathematics that deals with gathering, organizing, and analyzing numerical data and that helps solve problems such as experiment design and decision making. It is an effective method of accurately describing economic data values and serving as a tool for relating and analyzing such data. The interview:It is a structural technique to retrieve information from individuals or groups, and in this investigation the interrelation with the specialists of the entity under study was very important.
The process of economic comparisons constitutes an important way for study and analysis in economic research; through it existing similarities and differences were revealed, it is evident that to make any comparison it is necessary to start from the homogeneity since otherwise it would not be valid, by means of the comparisons the differences and similarities can be obtained.
Finally, the planning, evaluation and control processes were analyzed, since from the insufficiencies presented in these, the procedure outlined in the article was designed and designed.
RESULTS AND DISCUSSION
The results of the application of the procedure to prepare the budgets by areas of responsibility are presented below, the projection was made for the years 2014 and 2015, in order to validate the design.
The application demonstrated that the problem posed was solved and that it was possible to project the expected economic results for each profit center (center of responsibility).
To project the expenses of operations, each work carried out in the bottling process within the line of (see annex 1) was taken into account and to prepare the Controllable Costs Budget, previously those of Operations, Machinery and Administration were calculated and Economy (see annex 2).
| BUDGET OF CONTROLLABLE COSTS | ||
| YEAR 2014 -2015 | ||
| Profit Center: Bottled | ||
| INDICATORS | 2014 | 2015 |
| AMOUNT | AMOUNT | |
| Operations Expenses | $ 481,512.52 | $ 310,114.40 |
| Machinery Expenses | 21,512.47 | 8,612.09 |
| Administration and Economy | 7,350.21 | 6,064.58 |
| TOTAL CONTROLLABLE COST | $ 510,375.20 | $ 324,791.07 |
| Profit Center: Manufacturing | ||
| INDICATORS | 2014 | 2015 |
| AMOUNT | AMOUNT | |
| Operations Expenses | $ 49,127.16 | $ 19,130.91 |
| Machinery Expenses | 12,663.26 | 7,372.40 |
| Administration and Economy | 3,884.49 | 5,609.57 |
| TOTAL CONTROLLABLE COST | $ 65,674.91 | $ 32,112.88 |
| CONTROLLABLE INCOME BUDGET | |||||
| YEAR 2014 - 2015 | |||||
| Fundamental Production: Beers | |||||
| UM: CUP________ CUC: _________ | |||||
| Utility Centers | 2014 | Income | |||
| Sales Forecast | Price | ||||
| Bottling | 3,697.29 | $ 141.00 | $ 521,317.89 | ||
| Manufacturing | 677.84 | 149.00 | $ 100,997.58 | ||
| Total | 4,375.13 | $ 290.00 | $ 622,315.47 | ||
| Utility Centers | 2015 | Income | |||
| Sales Forecast | Price | ||||
| Bottling | 2,335.80 | $ 141.00 | $ 329,347.80 | ||
| Manufacturing | 327.73 | 149.00 | $ 48,831.77 | ||
| Total | 2,663.53 | $ 290.00 | $ 378,179.57 | ||
| PRODUCTION BUDGET | ||
| YEAR 2014 - 2015 | ||
| Profit Centers: Bottled | ||
| Production: 2048.32 | Production: 2070.0 | |
| INDICATORS | 2014 | 2015 |
| Boxes | Boxes | |
| Performance Forecast | 12.33 | 10.35 |
| x | ||
| Area | 228.75 | 200.00 |
| Production Budget | 2,820.49 | 2,070.00 |
| Utility Centers: Manufacturing | ||
| Production: 585.84 | Production: 286.34 | |
| INDICATORS | 2014 | 2015 |
| Boxes | Boxes | |
| Performance Forecast | 5.97 | 2.78 |
| x | ||
| Area | 98.13 | 103.00 |
| Production Budget | 585.84 | 286.34 |
|
SALES FORECAST |
||
| YEAR 2014 - 2015 | ||
| Profit Centers: Bottled | ||
| UM: Boxes | ||
| INDICATORS | 2014 | 2015 |
| Quantity | Quantity | |
| Production Budget | 585.84 | 286.34 |
| less | ||
| Production intended for self-consumption | ||
| plus | ||
| Non-marketable production | ||
| plus | ||
| Lost Production | 92.00 | 41.39 |
| Sales Forecast | 677.84 | 327.73 |
| Utility Centers: Manufacturing | ||
| UM: Boxes | ||
| INDICATORS | 2014 | 2015 |
| Quantity | Quantity | |
| Production Budget | 2,820.49 | 2070 |
| less | ||
| Production intended for self-consumption | 2.20 | 1.80 |
| plus | ||
| Non-marketable production | ||
| plus | ||
| Lost Production | 874.6 | 264 |
| Sales Forecast | 3,697.29 | 2,335.8 |
| CONTROLLABLE INCOME STATEMENT | ||||||||
| YEAR 2014 - 2015 | ||||||||
| INDICATORS | 2014 | 2015 | ||||||
| Utility Center | AMOUNT | Utility Center | AMOUNT | |||||
| Bottling | Manufacturing | Bottling | Manufacturing | |||||
| Controllable Income | $ 521,317.89 | $ 100,997.58 | $ 622,315.47 | $ 329,347.80 | $ 48,831.77 | $ 378,179.57 | ||
| Less | ||||||||
| Controllable Costs | 510,375.20 | 65,674.91 | $ 576,050.11 | 324,791.07 | 32,112.88 | $ 356,903.95 | ||
| Controllable Utility | $ 10,942.69 | $ 35,322.67 | $ 46,265.36 | $ 4,556.73 | $ 16,718.89 | $ 21,275.62 | ||
The results obtained in the years taken as benchmarks and in which the procedure for budgeting was applied showed the following:
| Table 3. Analysis of the results in physical and value | ||||||
| Profit Center: Bottled | ||||||
| Indicators | Um | Real 2014 | Plan 2015 | Real 2015 | Variation | % Comply |
| Real / Plan | ||||||
| Controllable Income | Mp | 379.20 | 329.40 | $ 239.40 | -90.00 | 72.68 |
| Controllable Costs | Mp | 279.13 | 324.8 | 230.7 | -94.10 | 71.03 |
| Controllable utility | Mp | 100.07 | 4.6 | 8.7 | 4.10 | 189.13 |
| Production | cja | 2,358.3 | 2070 | 1,697.24 | -372.76 | 81.99 |
| performance | t / cja | 10.31 | 10.35 | 10.22 | -0.13 | 98.79 |
| Table 4. Analysis of the results in physical and value | ||||||
| Profit Center: Manufacturing | ||||||
| Indicators | Um | Real 2014 | Plan 2015 | Real 2015 | Variation | % Comply |
| Real / Plan | ||||||
| Controllable Income | Mp | $ 175.46 | $ 48.80 | $ 55.18 | 6.38 | 113.07 |
| Controllable Costs | Mp | 49.12 | 32.11 | 45.9 | 13.79 | 142.95 |
| Controllable utility | Mp | 126.34 | 16.69 | 9.28 | -7.41 | 55.60 |
| Production | cja | 572.9 | 286.34 | 370.4 | 84.06 | 129.36 |
| performance | t / cja | 5.96 | 2.78 | 3.86 | 1.08 | 138.79 |
Tables 3 and 4 show the results of the UEB's performance in 2015, with respect to this, it was found that Controllable Profit for both Profit Centers made it possible to arrive at the following results:
Profit Center: Bottled
- The results indicator was met at 189% (4.1 mp), although it may seem a priori a very favorable behavior, when analyzing the data shown in Table 3, it can be seen that this was motivated by the fact that income they were above controllable costs, in breach of what was planned in both cases (controllable income and controllable costs), but the levels of fulfillment of income were higher than cost.
Profit Center: Manufacturing
- Here the situation is different, since as shown in Table 4, the controllable profit was fulfilled by 55%, mainly due to the low level of income generated by the very low yields.
CONCLUSIONS
- The procedure designed to plan in the UEB by responsibility centers allowed to determine as such the bottling and manufacturing profit centers and also made it possible to forecast the expected economic results. The traditional Income and Expense Budget was replaced by a system of budgets made up of: A Controllable Costs Budget, which in turn considers the planning of expenses for operations, machinery and administration and Economics, and a Controllable Income Budget, which takes into account the income generated by sales. Budgeting of costs controllable by levels of responsibility constitutes a novel technique that increases the quality of the planning process.The proposed Controllable Income Statement offers information related to the profit or loss that the UEB expects to obtain based on the income and costs that are projected.The real behavior obtained in the planned years is within normal ranges, being able to state that the budgets were drawn up correctly.
REFERENCED BIBLIOGRAPHY
- Álvarez López, J "Advanced Management Accounting". Planning, Control and Practical Experiences, Edition, Mc Graw-Hill Interamericana de España SA, Madrid, 1999.Amat, J. and Amat, O: “The Accounting of Current Management: New developments”. Spanish Association of Accounting and Business Administration, Madrid. (1998) Amat, O. and Soldevila, P: “Accounting and cost management”. Editorial Gestión, Barcelona 2000.Balada Ortega, TJ. and Ripoll Feliu, V… “Situations and trends in Management Accounting in the Ibero-American sphere”. Spain: Ediciones Gráficas Ortega SA, 2000.Baujín Pérez, P. et al. Proposal for an Activity-Based Costing Model for hotel facilities. Tourist Challenges Magazine No 1. Vol.4 2005. ISSN. 1681-9713.
ANNEXES
| Appendix 1 | |||
| Date: 12/31/2015 | |||
| Document: | |||
| Profit Center: Bottled | Responsibility Area: | ||
| Productive activities | Um | Volume | Salary |
| Unpacking bottles | boxes | 496540 | $ 1749.52 |
| Bottle washing | boxes | 496540 | 1652.12 |
| Filling bottles | boxes | 496540 | 2678.90 |
| Beer pasteurization | boxes | 496540 | 2996.40 |
| Beer labeling | boxes | 496540 | 1476.65 |
| Box packing | boxes | 496540 | 1856.39 |
| TOTAL | $ 12409.98 |
| Date: 12/31/2015 | |||
| Document: | |||
| Profit Center: Manufacturing | Responsibility Area: | ||
| Productive activities | Um | Volume | Salary |
| Brew broth cooling | HL | 39723.20 | $ 2,130.60 |
| Treatment with treated water | HL | 39723.20 | 2,030.22 |
| CO2 gassed | KG | 7944.60 | 810.63 |
| TOTAL | $ 4971.45 |
| Appendix 2 | ||||||
| Date: 12/31/2015 | ||||||
| Document: | ||||||
| Profit Center: Bottled | Month Budget: December | |||||
| Description | CUP | CUC | Total Cost | Budget | Variation | |
| Operations Expenses | $ 849.52 | $ 44.71 | $ 894.23 | $ 1,694.23 | $ 800.00 | |
| Machinery Expenses | $ 262.26 | $ 13.80 | $ 276.06 | $ 316.76 | $ 40.70 | |
| Administration and Economy | $ 322.95 | $ 16.99 | $ 339.94 | $ 417.46 | $ 77.52 | |
| Total Controllable Costs | $ 1,510.23 | $ 2,428.45 | $ 918.22 | |||
| Date: 12/31/2015 | ||||||
| Document: | ||||||
| Profit Center: Manufacturing | Month Budget: December | |||||
| Description | CUP | CUC | Total Cost | Budget | Variation | |
| Operations Expenses | $ 18,234.60 | $ 1,607.19 | $ 19,974.79 | $ 25,113.72 | $ 5,138.93 | |
| Machinery Expenses | $ 705.61 | $ 36.40 | $ 742.01 | $ 587.10 | - $ 154.91 | |
| Administration and Economy | $ 502.90 | $ 102.00 | $ 604.90 | $ 617.46 | $ 12.56 | |
| Total Controllable Costs | $ 21,321.70 | $ 26,318.28 | $ 4,996.58 | |||
Joint Resolution Central Planning Board; State Finance Committee; State Price Committee and State Statistics Committee. 02/18/89
González Torres, J. 1981. Methodological conferences of economic research.
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