Summary
To speak of world class let's define first what is a best practice. Best business practices are those that allow us to generate proven competitive advantage and the ability to absorb changes in the best way to increase our chances of remaining in the markets (local, national and international).
The world class consists of a series of consistent practices, criteria and results, immersed in well-dimensioned models and developed based on strategic planning. Best practices have various fields of application, such as: planning manufacturing resources, managing business strategy, identifying and segmenting markets, reducing activities that do not generate customer value, designing new products, distributing, manufacturing, managing demand, and improving processes, among others. They are applicable according to the type of business and depend on our responsible management.
In this article we intend to draw attention to the urgent need to implement cost systems in our organizations to promote the greater and better use of idle installed capacity that companies that do not look to the foreign market now have to export their products.
The technological alternative
To the companies that sell information technologies if we plated the solution, they would respond to us in acquiring their software products as they still have a very high value, beyond the reach of the majority. And they would propose the following:
- We analyze your needs and help you come up with solutions. We do not assume that the client is an expert in defining their systems problem. We design the solution. We prototype or model interacting with the client. We execute the construction of the applications. We test the applications methodically. We provide Service Operation and / or Maintenance. The development of the idea would be posed by proposing the following questions: What are the gaps between Latin American Medium and Small Companies and World Class Companies?
Young organizations, as well as small and medium-sized companies, do not have the necessary infrastructure or sufficient financial resources to acquire, manage, and much less sustain some type of ERP, CRM or VP; leaving them out of the globalization process and away from the Best Business Practices of World Class Companies. Certainly, the high technological and acquisition costs of these systems, as well as the high disbursements for maintenance, constitute a barrier to entry to efficiency and competitiveness, thus limiting effective performance in a highly competitive environment.
What are the Best Business Practices of World Class Companies?
Maintaining competitiveness in a global and borderless world has become the central objective of strategic planning. This is how the ERP systems - Enterprise Resource Planning, CRM - Customer Resource Management, as well as the VP - Vertical Applications for specific industries, incorporate the Best Business Practices of companies. Successful standards that have excellence and have allowed them to position themselves as World Class Companies
What is the technological perspective in the coming years?
The new realities of the economy suggest that organizations rethink their Back Office and Front Office information systems; demanding flexibility from changes in the environment, speed of adaptation to new processes, multi-company and multi-platform integration in a collaboration scheme, and ultimately a strategic tool that allows them to take advantage of market opportunities on time to achieve competitive advantages in a timely manner.
The problem of the national and / or Latin American company
Without pretending to build castles in the air, let's put our feet on the ground and see "from within" the problem of a common and ordinary Latin American businessman that we can locate anywhere on our continent from the south of the Rio Grande to Patagonia. The case with which we will develop our ideas has been taken from the work of Professor Ramírez Padilla of the Monterrey Institute of Technology and Higher Studies, whom we have adapted to our personal style:
The TOTUS TUUS SAC company started its activities on January 12, 1990. Producing baby footwear. In 1991 he began to manufacture men's and women's footwear. In 1995 it launched to manufacture ladies' bags and briefcases. In 1996 he began the management of dining room furniture with leather covering. And in 2004 she launched her line of leather jackets and jackets. In 2005, she started selling socks, socks and men's underwear. In 2006, it opened a store selling men's items: it sells jackets, briefcases, tapes, suit holders, etc.
Despite the success obtained during its 16 years of life, management observes that the development of its executives and administrative area does not correspond to this growth, which worries the President of the Company.
Ask a consulting firm to diagnose your information problem and design an information system to consolidate that growth and plan your future.
A Consultant is sent to dialogue with the president of the company to gather information and determine what steps must be followed in the Consultancy to achieve what the Director of Totus Tuus, SAC is asking for. This was the dialogue between the Consultant and the President:
Mr. Danor, what are the main problems you have with the information?
My problems are the following:
- I don't know how much each of the lines we manufacture is leaving me, we continually have problems with orders not delivered on time and exports too late. No one is responsible for this problem. The Portfolio, that is, the Accounts Receivable, fluctuate too much even though we have well established policies. The same happens with inventories. In production we constantly have strong increases in costs unlike what we thought was happening. The Sales department spends a lot, but it is justified by saying that otherwise what we are selling would not be achieved. Furthermore, they set credit policies according to the market. Our capacity is too saturated. A friend recently advised me to commission third parties to manufacture certain parts of my products, but I don't know what they should be.I think there is a lot of inefficiency in production because all the workers make any of the lines that we manufacture according to the orders that we are most urgent to fill. I have a Supply Department that is in charge of buying everything that Production requests. The head of the Department is responsible for the inventory. I recently admonished it because I found parts that were ordered in 2004 and other years, but have never been used. He affirms that he has them there because the production managers asked for them. The head of the Maintenance Department told me that there is a lot of old machinery in good condition that is not used. This is because the Production managers are constantly requesting new machinery, arguing that the old one will generate many defective items. I don't know how to handle this situation.The Head of the Leather Assortment Department is upset that his costs always go up. The reason for this is that Production urgently requires too much leather regardless of whether or not it takes advantage of price opportunities, and sometimes even forces it to work overtime. I have heard of re-expression, what is that, Mr. Consultant? Sorry, Mr. Danor, what are your costs? I only know that for every peso we sell there are 18 cents left. Are the products manufactured in separate areas? No. We only have one area and we produce everything there. Do you use budgets? More or less every year I add inflation to budgets on average to last year's income, but to expenses only half of the expected inflation. It is that you know… the more budget the staff receives, the more waste.At what level of sales do you not win or lose? This is what I would like to know: how much do you have invested in monetary assets and how much in non-monetary assets? But what do you mean by those names? How profitable are you now? Approximately 13%. How much is your margin on sales and asset turnover? Excuse me, but what are you talking about? Correct, Mr. Danor, I hope to bring you in fifteen days a work plan with the changes we will make to fulfill your wish. Ah, Mr. Contador, I forgot to say that I often have to borrow from the banks, because I have serious problems. liquidity.How much is your margin on sales and asset turnover? Excuse me, but what are you talking about? Correct, Mr. Danor, I hope to bring you in fifteen days a work plan with the changes we will make to fulfill your wish. Ah, Mr. Contador, I forgot to say that I often have to borrow from the banks, because I have serious problems. liquidity.How much is your margin on sales and asset turnover? Excuse me, but what are you talking about? Correct, Mr. Danor, I hope to bring you in fifteen days a work plan with the changes we will make to fulfill your wish. Ah, Mr. Contador, I forgot to say that I often have to borrow from the banks, because I have serious problems. liquidity.
Very well, Mr. Danor. Bye.
Doesn't this dialogue seem familiar to you, reader friend?
Our entrepreneurs, with honorable exceptions, are aggressive, they grow, they grow and they grow, neglecting the administrative part while the income exceeds the expenses. But how much savings and, of course, how much profitability would they improve if they knew which of the lines they operate is the most beneficial and in which of them their return is minimal. Because in this scenario, there are the highly productive ones that subsidize those that are sold below sale prices. What happens is that management does not know where it wins and where it loses. The problem is in its cost system, which is conspicuous by its absence. We are going to propose the installation of Activity Cost Systems (ABC).
Our recommendation
The process that we will develop next goes through the quality of information that we want to provide to the Company, and the amount of resources that will be assigned to the project. Companies very easily create planning, organization and management problems, but getting out of the hole takes time and resources. In our case, the company took 16 years to develop in a disorderly way. And probably your Management expects a solution within the next 2 months.
The stages of consulting
In our opinion, the solution to the problem goes through four well-marked stages. If we exceed them, we will have reached the goal: to make it a world-class company: competitive, innovative and long-term sustainability (start-up principle). They are listed below:
- Sell the Idea of Change. Develop the Implementation Plan for ABCR Costs. Compile the necessary data to Design the ABC Cost Model. Prepare the Plan for using the information that the ABC Model will provide. Use and operational application of the Model.
First stage. sell the idea of change
The first obstacle that the Consultant encounters is cost and time. For the employer, the lowest cost and the shortest time. "For yesterday". He thinks that the problem is one of decision-making without taking into account that he has accumulated a time bomb over the years and in the dizzying development of operations. Success in a change process necessarily goes through the premise that the Company's Management firmly believes in improving the current system, and is willing to allocate the efforts and resources necessary for its implementation. However, it is not strange to find attitudes of rejection by the governing bodies of companies, either because they are not prepared to accept the future information to be disclosed, or because a cost model has been designed, because of its excessive simplicity or complexity,it is not adapted to the needs of the Organization in which it must provide service. That is why it is necessary to ensure the support of the Company's Management in the introduction of the system, for which it is advisable to follow the method that we present below, which is based on three crucial steps:
1) Generation of interest in ABC
It is very important to have ABC advocates at all levels of the company, especially including its Senior Management, as well as the Manufacturing, Engineering, Financial and Marketing Departments.
To convince Senior Management, it is necessary to show them what ABC can do for the company, and how much it will cost, so that ABC is perceived as a highly profitable strategic tool that provides competitive advantages.
With respect to the Marketing Department, it is possible to find reluctance in it, since the information that the ABC is going to provide them will significantly alter their vision of the company's commercial situation, causing in some cases a defensive reaction of disbelief at the information provided by ABC. In contrast, the Manufacturing and Engineering Departments will normally be strong advocates of ABC, since they will find in the same answer to many questions that conventional cost systems were unable to reasonably answer.
Lastly, to say that the Financial and Accounting Department is the one that should be treated with the most "left hand", since being responsible for the existing cost system, it may perceive the implementation of the ABC as a threat to its experience and knowledge. However, in the event that you commit to it, it will be an invaluable source of support and technical advice.
This work of generating interest for ABC in the company is fundamentally based on explaining what it consists of and why it is far superior to conventional cost systems.
2) Elimination of barriers
ABC can generate a series of negative comments, derived from what has been called ABC "myths", which must be recognized within the company in order to overcome the barriers they pose. The cited "myths" are as follows:
- ABC is too difficult and expensive to implement and use: Regarding the cost of ABC and its complexity of handling, to affirm that this is a myth born from traditional cost systems, since the practical experience of companies that have Implemented ABC models allows us to affirm that its cost is surprisingly modest and that it is much easier for staff to understand as it is consistent with the economic reality of the company. One way often used to demonstrate the simplicity and effectiveness of ABC is to develop a small pilot project that encompasses a couple of products or a department. An improvement to the current cost system will suffice:A good way to destroy this myth is to look for those products that are undervalued and that could not be recognized by the current cost system, despite improvements being made to it. Another option is to emphasize other benefits that the ABC reports, such as the information it provides about activities and clients. It is not necessary to know with greater reasonableness the cost of products: A system commonly used to combat this myth is the preparation of practical cases in which the exposed conclusions are reached. Cost systems play a limited role in the Improvement Process: In order to put aside this myth, it is common to carry out a Value Added Analysis in one of the Departments of the company in which it is expected to detect mismanagement of costs,in order to reduce them drastically.
3) Obtaining the approval of the Management
After having generated interest in ABC and carried out an awareness about its usefulness and cost, the next step is to get the approval of the Directorate for the project, which will largely depend on the answer these two questions receive:
- Is our company the type of company that can benefit from ABC? Is there any evidence to suggest that the current cost system is not working properly?
Regarding the first question, we can affirm that as a general rule, any type of company can take advantage of the advantages provided by ABC, although it is true that the ones that will most benefit from it will be those in which some of the following characteristics:
- General expenses represent a high percentage of total costs. There is a great diversity of products within the company. The production volume of the different products is very different. There is a high level of competitiveness in the sector.
Answering the second question, it should be noted that your solution is to locate within the company a series of symptoms that indicate that the existing cost system is not doing its job. Among these, we can mention the following:
Management has no confidence in cost reports.
Marketing and Sales Departments do not use existing cost information to price products, to decide on entering new markets, or to make decisions about the product portfolio.
- Profits decrease despite increasing sales. There is an unofficial cost system in some department or division of the company. The overhead rate is enormously high. Direct Labor represents a small proportion of production costs.
A forecast of cost reduction is followed by an increase in overhead costs.
In short, we can affirm that the detection of the symptoms that show the malfunction of the existing cost system and the demonstration of the advantages that ABC would bring to the company inevitably entail the approval of the project by the Management, although in In some cases, it may take longer to achieve its objective.
Second stage. development of the ABC cost implementation plan
The success of the implementation of the ABC is closely linked to proper planning that must be developed by the company itself and / or by an External Consultant, since in this way the following advantages are obtained:
The possibilities of an implementation crowned by success are increased, since being personnel from the company itself, he is the best connoisseur of the resources that can be assigned to the application of the ABC, and on the other hand, he is closely familiar with the Implementation plan, so you are in a position to monitor and facilitate the process.
The know-how acquired in the planning and design of the ABC model remains in the company, becoming an extremely important base for strategic decision-making and cost reduction.
The ABC model belongs to the company, significantly increasing that sense of ownership and the possibilities that ABC is accepted and used.
Being fully applicable to this case the rule of 7 P's (Proper Prior Planning Positively Prevents Poor Perfomance, which we could translate saying that an adequate and previous planning surely avoids a bad performance).
When developing the aforementioned Plan, we understand that regardless of the type of company in question, the eight steps must be followed, which we will now identify:
- Formulate the Project Objectives. Select the tangible benefits to be pursued. Set the scope of the project. Define the organizational structure of the Project Team. Select the members of the Project Team. Determine the training requirements of the Project Team. Prepare a Project schedule. Estimate the costs of Project implementation.
Third stage. collecting the data necessary to design the ABC model
Once the “office laboratory” stage is over, after a hard negotiation, the proposal is presented, discussed and approved, we proceed to carry out the work at TOTUS TUUS SAC. There is great expectation in the company, which is demonstrated by the facilities that have been given to the team: a good working environment for the future development of the project.
The following steps are taken in an orderly manner:
- Identification of activities. Creation of Activity Centers. Definition of Resource Inductors. Determination of attributes. Select Inductors.
Fourth stage. elaboration of the plan of use of the information that the ABC model will provide
At this level, the Cost, Income, Profit and Investment Centers have already been redefined. Now it's time to establish the way to present the reports that the system will issue to facilitate decision-making. Here the following steps will be taken into account:
a) Creation of useful reports
Reports are a powerful communication tool, provided they meet the following requirements: Be understandable, relevant, reasonable, adequate over time and updated.
b) Updating the ABC model
The frequency of updates to the information from the ABC model depends directly on the rate of change of the company and its sector, the type of information in question, and the cost and ease associated with the update. However, despite the difficulty that this may entail, the responsibility for updating the ABC model must be formally established, specifically assigning responsibility for controlling the system's procedures and the feedback it provides about changes. in activities, since this is the only way to ensure continuous updating of ABC.
If it is an isolated ABC system, it will require periodic updating and new information transfer processes from the central computer system; on the contrary, if it is an integrated ABC model, the system will update automatically while processing the central system. Responsibility for obtaining feedback on changes in activities, and therefore on the design of the system, must be in the hands of the Heads of Department, who must provide updated information on a monthly basis. In this way, there are three advantages:
- It is certain that users of ABC information are involved in the design of the system. There is no need for permanent maintenance of the original design equipment of the ABC model. It ensures that all information related to activities, including resources drivers, cost drivers and performance indicators, keep updated.
c) Improvement of support systems
To a certain degree, the cost and ease of upgrades is controllable, as improvements to data collection techniques and the system itself reduce costs and increase the ease of upgrades. Among the main improvements, we can cite the preparation of the General Ledger based on activities, or the integration of the ABC system within the central system.
d) Make ABC information accessible to the entire Organization
The information has to come into the hands of those who are trained to drive improvement processes, so the Organization must be involved in a true process of information empowerment, based on a distribution of the information from the ABC to all levels of the company in a selective way regarding access and presentation of the same.
e) Training of ABC users
The level of use of ABC information is proportional to the level of training of users in the ABC model, with training being a key factor in the information empowerment process, since the more information descends hierarchically, the greater impact the ABC, and easier and more agile will be its update.
f) Management of the change process
It is very important to direct the role that ABC will play in the process of changing the Organization. The objective is to create positive expectations for improvement, to unite the ABC with the company's improvement objectives, to define what the areas in which the improvements are going to take place should be, to provide users with technical support, and to communicate the conclusions that they have been obtained in other parts of the Organization. For this it is important to define the following steps:
Inform the Management of the achievements that have been achieved, pointing out the benefits thereof.
Identify improvement objectives, integrating ABC into a broader Total Quality Management model, as a very useful basis for it, since it allows activities to be classified according to whether or not they generate added value, identify improvement opportunities and prioritize them in order of your cost savings and potential benefits, and select the objectives to be acted upon.
Assign specific responsibilities within the change process to each of the ABC users.
Provide support to users, complementing their training with specific help on how to prepare reports that highlight key objectives, and how to carry out “What if” analysis. Provide feedback on the results achieved, communicating, to each user and to the Organization as a whole, the degree of fulfillment of the specific and global objectives, respectively.
Develop recommendations for future design and use of the system.
Fifth stage. use and operational application of the model
Once all the problems have been overcome and the model that is operational has been defined, the company will only have an answer to its questions that previously affected it:
- Know the profitability by product line. Comply with the delivery of the products and probably in the future define new markets. There will be better control of customers and their collection statements. It will be possible to explain, when they occur, the increase in costs, and the need to reduce activities that do not generate value for the customer. Policies will be established for performance control. The need to increase installed capacity or stop manufacturing products with less profitability or commission their production to third parties will be defined It will allow to review and define new credit policies that are sufficiently competitive that they do not affect the working capital position.The internal control will be interactive and will facilitate the cash available to support Logistics in its acquisitions, which will have the sufficient capacity to negotiate with the suppliers the best prices for the Company. The maintenance process will pass the corrective stage to develop as preventive or predictive in In certain cases, in summary, the optimum break-even point per sales line will have been defined and profitability will probably have improved because costs allow, take corrective measures.The optimum break-even point per sales line will have been defined and profitability will probably have improved because costs allow, take corrective measures.The optimum break-even point per sales line will have been defined and profitability will probably have improved because costs allow, take corrective measures.
As it should be noted, the origin of the main problems in the company is a direct consequence of the absence of a cost system. Which are the basis for developing the other activities that the company needs to apply to consider itself world-class.
The other complementary measures
Simplifying the topic under study we will say, based on a cost system, we continue to develop the issues that are problems that the company overcomes over the years day by day:
- Annually update its Structural Organization Chart. Constantly review its Activities and Functions Manual. Modernize its Internal Work Regulations in accordance with the labor provisions issued permanently by the Central Government. Overtime control is a national issue. Simplify, as far as possible, the Revised General Accounting Plan. Introduce the Bar Code System based on the Accounting Plan. Improve information systems. Plan, plan, plan: the Annual Plan of Utilities and, finally, Define the culture of Establishing the Corporate Strategic Plan.
What the experts say about the world-class company
According to Mr. Jorge Varela of the page www.soyentrepeneur.com, he points out the following 17 best business practices:
- Inventory management by the supplier. It is also known as supply chains (SCM). It is an administrative process that involves the integration of all the activities necessary to supply products or services to the market: from the acquisition of fundamental raw materials, to delivery to customers or end users. These activities are integrated with those carried out internally, such as those carried out externally and in conjunction with supplier and distribution companies. Generally, companies communicate in real time to their suppliers, through networks of systems, their supply needs at each point of sale so that the supplier comes to cover what is needed. Consortia like Unilever, Carrefour, Bimbo and Wal-Mart use this format with their suppliers.Customer Relationship Management. It is also known as CRM (Customer Relationship Management). These acronyms refer to a work philosophy that tries to focus the entire company towards the relationship with customers. It consists of compiling events and information generated in the points of contact with consumers in order to get to know them and make evaluations that allow them to target the most profitable buyers. Three years ago, Chase Manhattan Bank (today JP Morgan Bank) used it to integrate all communication channels with its clients, who were not satisfied with talking to recording machines to discuss their investments. With the CRM, they managed to open direct feedback channels with their clients and identify the heads of the investment group, so that the information was given directly to decision-makers.Benchmarking. Comparison tool used to discover and analyze the best business practices of other companies. These findings are tailored to the company that observes them. Simplifying: analyze, learn and adapt to be competitive. An American hospital is said to have made improvements to its emergency department after a thorough analysis of Domino's Pizza's response systems. And another hospital improved its patient admission and registration system after studying the reservation systems at Marriot hotels. Crosswalk. Logistics term that involves the transfer of goods from one transport to another at an intermediate point of the final destination. In this way, Wal-Mart supplies its different stores, after concentrating the merchandise in strategic collection centers. Customer Contact Center or 3C. It consists of devising a quick response operations center for the client through a technological infrastructure, operated by people involved in different branches of production. Lines 01-800 (free consultation for consumers of that product) are an example of this practice. Mass customization. It is the flexibility of the processes and finishing of the products through modularization, which allows the development of products and services adapted to the specific needs of each market niche. The objective of this system is to guarantee that each client finds what they need at a reasonable price. A company that constantly applies this practice is Kimberly Clark, specifically in its diaper lines, which have been segmented by age and weight of babies, gender, activity and even liking for fashion characters. Likewise, it handles different prices and presentations to go according to the purchasing power of the parents. Deployment of the Quality Function. (QFD, Quality Function Deployment) This is the name of the function developed by an interfunctional team, made up of members from the marketing, research and development, manufacturing and sales departments, helping them to focus on product innovation. Provides procedures and processes to improve communication, focusing on customer language. Transnational corporations such as Coca-Cola or Nike usually work with this type of cell for the innovation of their products or advertising campaigns. Deployment of Quality Policies. It is a system that serves to establish, based on the long-term strategic plan, the annual strategic, administrative and operational objectives and policies of senior management, and then deploy them throughout the organization. Virtual company. This is the name given to organizations that communicate through flexible technological means and that have systems that can be easily transformed if the market demands it. Its objective is to satisfy demand in the shortest possible time. De auction.com, an Internet auction company, manages all its procedures remotely, through technology, with direct transfers to various banks. Concurrent engineering. Know and integrate the needs of the market that you are going to cover, the quality and investment requirements where the means and methods of manufacturing, the sale and the necessary service intervene to guarantee customer satisfaction. The Argentine company CI COLORSIETE, a clothing manufacturer, uses this tool to launch its collections. They cross the socio graphic data of their market with fashion trends and from the information they obtain they develop their proposals. This allows them to streamline their production processes and cut costs. Just in time. Also known as Kanban, it postulates that the minimum and sufficient stocks that arrive just in time to replenish those that have just been used, constitute all the inventory that is needed at any given time. Excess inventory unnecessarily absorbs capital, increases storage costs, increases the risk of damage and obsolescence, and, above all, can hide opportunities for operational improvements. Toyota employs this practice in its assembly lines. Light manufacturing. Economic activities that do not imply high levels of industrial processing. Examples include agro-industry, footwear, tobacco, jewelry, leather goods, cardboard, and print. To create jobs and give added value to the raw materials that Costa Rica produces, the government of that country has developed industrial parks that work with this type of manufacturing. Manufacturing Resource Planning. Manufacturing Resource Planning (MRP). It is a system to manage all the resources of a manufacturing company. Link strategic planning, sales and operations plan, and demand management in a single number game. He links these with the master production plan that gives rise to the planning of material requirements, until the execution of the purchasing and production plans. Distribution Requirements Planning (DRP). Plan the final product requirements at each level of the distribution network. It provides a list of the finished products that are needed, as well as the place where they are demanded. Information on demand forecasts, placed orders, inventory levels and calculations for relevant events is required.Sales and operations planning. Also known as PVO. It is a business process that provides senior management with the ability to strategically direct the company to achieve competitive advantages on an ongoing basis, integrating business plans, businesses, as well as new and existing products with supply chain management. Efficient Consumer Response or ECR. It is responsible for analyzing the type of product and business to provide the highest level of profit to manufacturers and retailers; at the same time it offers complete satisfaction to the consumer in terms of their expectations and needs. The National Association of Self-Service and Department Stores (ANTAD) is currently testing this system among its members. They seek to decrease costs throughout the distribution chain and increase the satisfaction of their buyers. Quick response. Standardized system of reaction to common and frequent questions to solve customer problems. The website of the Commercial Banking School (http://www.ebc.mx) manages this system to provide information on its baccalaureate, bachelor's and master's degrees.
Given the accelerated changes that are lived day by day in technological, cultural, social, political, economic and scientific matters, it is no longer enough to take into account only static factors, but dynamic elements that allow companies to respond and adapt become fundamentally important. with speed and efficiency to changes in the environment, and if possible be the cause and motivator of the change.
Another expert on the subject, Mauricio Lefcovich, proposes the following topics:
- Safety Committed workforce Manufacture and deliveries to customers just in time Focus on product flow Preventive - predictive maintenance Management of bottlenecks Total Quality Management Rapid preparation times and / or tool changes Minimum level of support Policies and procedures of processes Reduction and / or systematic elimination at the waste levels. Greater emphasis on the task of product and process design. Systematic reduction in the number of parts. Permanent policies and strategies for innovation in products and processes have statistical bases and information systems that allow them to permanently monitor developments in terms of quality, productivity, costs, and process times. response times,and satisfaction levels among others. They control and avoid contamination, both in products and in their processing and waste disposal. They adapt quickly to new market needs Training of managers and staff
Conclusions
Currently, what our national companies need to become profitable organizations with global competitiveness is to instill in the employees and their leaders, the implementation of Costs by Activity, by integrating everyone with a corporate philosophy and values. It is important to mention that we always work for the Boss or for the results when what we must give greater value is working for the client, attending to their needs, because what he needs is to feel heard.
Establishing a philosophy and values of the company, are the frame of reference on which the activities we carry out, the decisions of what should and should not be done. It is important to emphasize that philosophy and values are not policies, nor are regulations what the CREE company is about. We must know that if we really want to transcend as well as being competitive and profitable worldwide, we must change the traditional way of working, to become not only employees but collaborators, to satisfy the needs of customers, since thanks to them we exist. Will we ever have a majority of national companies at the world-class level? Our answer is yes, if managers like Mr. Danor,they are ready to receive the collaboration of the Independent Business Consultants that abound in our countries.
Sources
Ramírez Padilla, David Noel. Administrative accounting. 7th. Edition. Mc Graw-Hill. Case No. 11-11. Page No. 544. Mexico.
Gonzáles Soria and Moreno de la Santa, Javier. Professor at the Pontifical University of Salamanca. “Phases of the Implementation of an ABC / ABM Model.
Characteristics of a World Class Plant at the Beginning of the XXI Century. www.tuobra.unam.mx/publicadas/051102084137.
