The present research has as its field of application the Small Industrial Company of Piura to whom the application of management indicators is proposed to evaluate their performance as a simple and easily applied management tool.
In our country, small businesses (including micro businesses) produce 40% of GDP and have a high capacity to generate jobs since they represent 75% of the Economically Active Population. But even so, its growth is limited, its period of permanence and stability in the market is short-lived due to the lack of adequate administration and organization of human resources, financial and material resources.
The same situation occurs at the local level, The Small Industrial Company of Piura is part of the economic development but lacks a business culture, organization and administration according to its need, Faced with a relevant problem, it was believed necessary to observe the internal part of the Small Industrial Company of Piura, through surveys, interviews and bibliographic review, where it was possible to identify three important aspects in every company: Human Resources, Supply (Suppliers) and Sales (Clients), but that are presented with various problems both management and organization.
In order to improve the current situation of the Small Industrial Company of Piura, this research proposes to apply management indicators using qualitative and quantitative parameters, especially in the areas of Human Resources, Supply and Sales as a management tool, economic, of simple application, that allows to evaluate solving both management and organizational problems within the company and that delivers as a final result a coordinated and balanced movement of these three items.
This research seeks to promote a change in business culture in the small businessman through the application of a simple management tool, as a starting point to encourage and eliminate the prejudicial barriers that exist in the small businessman towards this type of management tools.. It is necessary so that in the future modern management tools can be applied, implemented according to your need.
This research is made up of three chapters: the first is the bibliographic base where we find the necessary concepts for the development of the research. The second chapter includes the diagnosis that was made to the Small Industrial Company of Piura, through surveys and interviews, with previous presentation of some statistical data. And the last chapter presents the Proposal of the Management Indicators taking into account the Primary Phases to Apply the Management Indicators and the Structure of Business Planning.
The author.
3.1. Implementation of management indicators:
A. General aspects of the implementation:
Point 2.3.1, which deals with the evaluation problem within the company, allows us to observe the entrepreneur's need to apply management tools and their availability to apply new proposals.
In addition, it should be clarified that the problem of the small industrial entrepreneur is not the lack of evaluation but that it does it in an inappropriate way by not knowing how to use the little information that can be obtained through the Financial Statements and the Purchase and Sales Records as well. as well as other additional controls that He himself implements according to his need to collect information.
Regarding economic availability, it is known that not managing the company's resources correctly generates a lot of cost and little competitive capacity. The small company if it has investment capacity and must allocate part of it towards management tools that adjust to its reality, and thus, in the medium and long term, it will be able to obtain a greater return from all its resources used within its company.
Approximately 69.23% of small industrial entrepreneurs have advice for the management of their company. It is necessary that the owner or owner as well as the advisor that the company has available to apply new management tools so that they can assimilate the objective of the proposed management indicators, and then extend it to all the personnel of said economic entity.
A. Design of management indicators and trends
In order to apply management indicators as an evaluation tool, it is necessary to know what type of indicators I should apply, in which area it will be applied, what the evaluation process will be like and where this information will be obtained. It is therefore necessary to know the basic steps to design management indicators:
Have Short-Term Objectives`:
Improve the management and organization of the company
Achieve alliances with the main suppliers of the company
Customer loyalty
Optimize production
Identify critical success factors.
Human resource
Catering.
Sales
Establish the indicators for each critical factor.
To define a good indicator of control or evaluation of a process, it is important to develop a selection criterion with a very simple technique that consists of answering these questions:
Is it easy to measure?
Is it measured quickly?
Does it provide relevant information in a nutshell?
Is it easy to graph?
If the answers to all the questions are positive, the appropriate indicator can be defined.
Once each indicator has been defined, we must identify the type of control that we want to apply on the key success factor, in this way the nature of the indicator to be built is established, and once the nature of the indicator is identified, the system variables are identified. that will be evaluated periodically to calculate the indicator.
Efficiency indicator
When the nature of the most appropriate control is efficiency, the variables will be more related to the use of resources by the process:
= amount of resource wasted
Amount of resource used
When the nature of the most appropriate control is effectiveness, the variables will be related to the fulfillment of the expected resources by said process:
Indicator of effectiveness
= value of an output attribute of a process
Attribute expected value
Establish trends and references to indicators.
Every evaluation is carried out through comparison and this is not possible without a reference level to compare the value of an indicator.
For the application of the indicators to be presented, the trend for a first period will be taken into account as a reference point and later with a larger database, apply the historical reference to be easy to apply and the one that best suits the small industrial company when starting to implement indicators.
A . Analysis of the obtained results
Sourcing / suppliers
Analyzing and evaluating the supply process allows us to detect existing errors or threats in the process, which would cause an imbalance in the development of the Company, not achieving its maximum performance and generating high cost levels; It also allows us to detect whether we are receiving an adequate service from our suppliers in terms of quality, speed of delivery and service efficiency.
All of this is necessary to be able to provide our Company with a competitive, efficient and full quality service in order to satisfy the demands of our clients.
THEREFORE, SUPPLY HAS THE OBJECTIVES:
- BUY QUALITY RAW MATERIAL
- HAVE A QUICK SUPPLY PROCESS
- have a supplier identified with our objectives
The indicators proposed to evaluate the supply process are.
_ Indicator of Misplaced Orders
_ Order Fulfillment Indicator
_ Bureaucratic Indicator
_ Indicator of Speed of Attention by the Provider
Sales / customers
Analyzing and evaluating our sales process will allow us to detect errors or threats in the process, it also allows us to detect if we are offering an adequate service in terms of quality, speed of delivery and service efficiency to meet the demands of our customers. And if not, be able to take the necessary measures to correct part of the process or its entirety if necessary.
Therefore sales aims to:
- Offer quality products and service
- speed in the order delivery process
- seek customer satisfaction
The indicators proposed to evaluate the supply process are.
_ Indicator of Bad Received Orders
_ Customer Compliance Indicator
_ Bureaucratic Indicator
_ Indicator of Customer Service Speed
Human Resources:
We must highlight the importance of this item in an organization, human resources refers to human beings. The human beings that are part of an organization create and put into practice the strategies and innovations of their organizations, therefore an efficient and effective use of all resources and especially human resources helps them and the organizations to achieve their goals and generate productivity.
By obtaining higher productivity, costs go down as well as profits grow and this causes quality in the work environment, achieving motivated employees to increase the productivity of the company. That is why the company must spend part of its time analyzing and evaluating the management of this resource.
Therefore it has as objectives:
- have trained human resources.
- achieve balance between job satisfaction and production results.
- Maintain constant communication of the strategic objectives that the company designs.
It is necessary to emphasize that this item, due to its complexity of analysis, has been necessary to divide it according to the aspects in which it is considered necessary to evaluate: Productivity, training and job satisfaction.
Human resources / production
The proposed indicators to evaluate human resources:
_ Projected Production Compliance Indicator
_ Maintenance Frequency Indicator
_ Production Performance Indicator
Human resources / training
The proposed indicators to evaluate human resources:
_ Indicator of Total Level of Training
_ Indicator of the Level of Investment in Training
_ Training Frequency Indicator
Human resources / job satisfaction
The proposed indicators to evaluate human resources:
_ Interpersonal communication indicator
_ Indicator of Investment in Incentive Programs
_ Indicator of Investment in Equipment for Personnel
Business planning
At the time of presenting the proposal for management indicators, the order of the structure of Business Planning has been taken into account
In every company, it is important to plan strategies in order to demonstrate its growth and development as an economic entity before the same company personnel, customers, suppliers, society and the state.
Therefore it is essential:
- plan strategies according to the magnitude of their economic activities.
- generate the participation of all company personnel and suppliers as well as customers.
- apply constant control and evaluation of the development of the implemented strategy.
The indicators proposed to evaluate the Strategic Planning are:
_ Strategic Compliance Indicator
_ Indicator of Participation in Implemented Strategies
_ Indicator of Strategic Supervision
_ Indicator of Speed of Communication
3.1. Advantages of implementing management indicators
Sourcing / supplier indicators:
Receive raw materials and quality service, through the evaluation and proper selection of suppliers.
Supplier identified with the objectives of our company, through constant communication of our objectives and strategies with suppliers.
Obtain quality products and service, if we receive quality raw material and service we are able to offer quality products and better service to our suppliers.
Reduce production costs, if we receive the right raw material at the right time then our production cost is reduced, in terms of time savings, return processing, solution of delivery setbacks, etc.
Customer satisfaction, offering quality products and service, the customer manages to feel satisfied and identified with the company, because he knows that he will not be making a bad investment of his money or his time.
Sales / customer indicators:
Offer quality products and service, through the appropriate evaluation and selection of sales and customer service processes.
Clients identified with our corporate culture, through constant communication of our objectives, strategies, vision and mission to our clients.
Increase sales and cash movement, because as long as there is product and service quality, customers will increase and with it the movement of cash, which would generate liquidity for the company in the medium term.
Customer satisfaction, offering quality products and service, the customer manages to feel satisfied and identified with the company, because he knows that he will not be making a bad investment of his money or his time.
Human resources indicators:
Qualified personnel, for the adequate development of their work within the company.
Proportionality between job satisfaction and the economic results obtained.
Developing communication, and a good internal relationship between company personnel, generates cost and time savings in the processes of each activity that your company develops.
Job satisfaction, having personnel identified with the company generates better customer service and a better image in the company environment.
Strategic planning indicators:
Business development, according to the achievement of its objectives set out within the implemented strategies.
Greater performance in the management of the company, by achieving the effectiveness and efficiency of the activities programmed and developed by the company.
Establish a corporate culture of communication and teamwork, by communicating the objectives and making the staff feel identified with the company.
Suppliers and clients committed to the business culture established by the company, by demonstrating that the development of the company is due to the participation of those around the company and that the development of the company generates benefits directly or indirectly for the environment where the company is located.
3.2 . Cost of application of management indicators
The most important thing for an entrepreneur before making a decision is to know how much the decision to choose will cost, but the same question will be asked when deciding to apply management indicators as we have proposed in improving the company.
Implementing the management indicators and all that this implies demands much above the rest of the investment of time and human resources and to know what it will cost us to invest these elements that the company has, it is necessary to translate it into numerical terms.
For this, the hours invested by human resources and the cost of each hour worked in the activities of the company will be used as a unit of measurement, taking into account the type of personnel that will be involved.
The application of the indicators is divided into phases:
1 ° SWOT analysis, to make a diagnosis of the company.
2 ° Restructure the management of the company, to define the Vision and Mission, establish Objectives and program Strategies.
3 ° Restructure the organization of the company, to design the organization chart, establish the main operating processes and find the critical points of each one, establish functions and responsibilities, etc.
4th Design and implement the indicators.
5 ° Train and coordinate with company staff.
6th Trial period.
According to the Execution Control, upon completion of the eight months of Implementation of the Management Indicators, the entire implementation process will have been achieved in 100%, which will indicate that it is ready for the Application of the Management Indicators. For this, we will establish the cost of applying these indicators for one year.
CONCLUSIONS
The Human Resource is the element with the greatest participation within the Small Industrial Company of Piura, this being the basis for creating intangible added value that allows it to stand out in a competitive and demanding market, however this advantage is not taken advantage of.
The Small Industrial Company of Piura wastes information at its disposal, which must be collected, processed and analyzed by carrying out a Qualitative Origin Assessment as a complement to the Quantitative Assessment.
To apply the management indicators in the Small Industrial Company of Piura it is necessary to improve both their management and organization. Being the present proposal the first step to promote the business culture in the Small Industrial Company of Piura.
It is necessary to apply the management indicators based on the areas of Human Resources, Supply and Sales, which will help the small businessman to create a value chain where the starting point is the Supply Sector to the Client but the base category will be the Human Resource.
recommendations
Establish the critical points of evaluation; Among the most outstanding we have Production, Training and Job Satisfaction, from the point of view of Communication, Incentives and Infrastructure. In order to take advantage of the Human Resource, this being the element with the greatest participation in the Small Industrial Company.
Train the Small Industrial Company of Piura on issues of use of computer tools so that it can properly manage the information it can collect, for this it already has the help of the state that has been in charge of promoting the training of MYPEs through the bonopyme as well as other support programs.
Use the Management Indicators for an adequate Organization and Administration of the Small Industrial Company of Piura and achieve a Business Culture directed towards the Management of Human Resources, Customer Service and Management of Material Resources that the Small Industrial Company of Piura has.
Implementing the management ratios in the main operating processes, it depends on the Human Resource that they be fulfilled efficiently and effectively, this will allow to assess the Human Resource for its knowledge, capacity and abilities in the performance of its functions. Generating business culture with competitive capacity in the short and long term.
