The industrial revolution is the process that leads a society from a traditional agricultural economy to one characterized by mechanized production processes to manufacture goods on a large scale. This process occurs at different times depending on each country. For historians, the term Industrial Revolution is used exclusively to comment on the changes that have occurred in England since the end of the 18th century; to refer to its expansion into other countries, to their industrialization or industrial development.
The first Industrial Revolution took place in the United Kingdom in the late 18th century; It was a profound transformation in the British economy and society. The most immediate changes occurred in the production processes: what, how and where they occurred. The work shifted from the manufacture of primary products to that of manufactured goods and services. The number of manufactured products grew dramatically thanks to the increase in technical efficiency. In part, productivity growth was produced by the systematic application of new technological knowledge and thanks to greater productive experience, which also favored the creation of large companies in small geographic areas. Thus, the Industrial Revolution had as a consequence a greater urbanization and, therefore,migratory processes from rural areas to urban areas.
It can be said that the most important changes affected the organization of the production process. The factories increased in size and modified their organizational structure. In general, production began to be carried out in large companies or factories instead of small domestic and artisan workshops, and labor specialization increased. Its development depended on an intensive use of capital and factories and machinery designed to increase productive efficiency. The emergence of new specialized work machines and tools allowed workers to produce more goods than before, and the experience gained using a machine or tool increased productivity and the trend toward greater specialization in a cumulative process.
Greater specialization and the application of capital goods to industrial production created new social classes depending on who hired and owned the means of production. The individual owners of the means of production in which they invested their own capital were called entrepreneurs. When they invest capital in a company without participating directly in it, they are called capitalists.
As the Industrial Revolution occurred for the first time in Great Britain, this country became for a long time the first producer of industrial goods in the world. For much of the 18th century, London was the center of a complex trading network that formed the basis of a growing export trade fueled by industrialization. Export markets provided an outlet for textiles and other industries (such as the iron and steel industry), whose production increased rapidly thanks to the application of new technologies. The data suggest that the growth rate of British exports increased considerably from the 1780s onwards. The export orientation and the increase in commercial activity further favored the development of the economy:Export earnings allowed British producers to import raw materials to create industrial products, merchants exporting goods gained significant experience that favored the growth of domestic trade.
Great Britain was not the only country to experience an Industrial Revolution, scholars seem to agree that France, Belgium, Germany, and the United States experienced similar processes in the mid-nineteenth century; in Sweden and Japan it occurred at the end of the century; in Russia and Canada at the beginning of the 20th century; in some countries of Latin America, the Middle East, Central Asia and part of Africa in the middle of the 20th century.
By definition, industrialization increases the national per capita income. It also implies changes in its distribution, in working conditions and in social values. The Industrial Revolution meant, at first, a reduction in the purchasing power of workers and a loss in the quality of their standard of living. Later, it resulted in an increase in the quality of life of the entire population of the industrialized country. These aspects are still the object of study in important research papers.
SCHOOLS OF ADMINISTRATIVE THOUGHT
Due to the different ideas of the pioneers of the administration the state of the administrative thought, at the end of the Second World War, was somewhat chaotic. Many of the administration studies, during the post-war decade, tried through his work, to put some order to the other theories that had emerged. Since then other written articles have tried to add or clarify new perspectives. At present, the case is not yet finished, but if the works studied so far are analyzed, we can distinguish four clearly discernible theories or schools of thought.
- Traditional school. Development of the systematic observation of the facts of the production - investigation and analysis of the workshop operation-. Although interested in specific techniques such as time and movement studies, production planning and control, equipment distribution in the plant, wage incentives, personnel management and human engineering, such an approach is faithfully based on theory. Being the earliest structure of administrative concepts, it has served administrators well and has provided a foundation on which scholars can build and improve. Those who developed this school are:
- Frederick W. Taylor: he saw management as the process of getting things done by people operating independently or in groups, and his approach to the administrative problem was direct and simple, define the problem, analyze the work situation in all its aspects, apply techniques quantitative to all those aspects capable of being measured, experiment keeping all the other factors of the work constant, except the one that had to be changed, develop a guide derived from the observations and finally test the validity of said guide through subsequent applications. The Gilbreths: They are known for developing their rules of the economy of motion, particularly the basic movements of the hands that they called therbligs. Other contributors: classical economists like Adam Smith, WS Jevons, and James Mill.
- Hugo Munnsterberg: created the field of industrial psychology by applying his laboratory techniques to measure psychological differences between individuals and employees in work situations, and through this, he opened a new facet of scientific management - the study and scientific explanation of differences individual-. Henry L. Gantt: Demonstrated an almost emotional interest in the worker as an individual and advocated a humane approach. Elton Mayo: I add a new dimension to the then existing administrative groups - that to be efficient, the administrator must recognize and understand the individual worker as a person with personal desires, motives, instincts, and goals that need to be satisfied. Mary Prker Follet: emphasized that a man in his work was motivated by the same forces that influenced his tasks and diversions outside of work and that the manager's duty was to harmonize and coordinate the efforts of the group - not to force and manage -. Oliver Sheldon: I preach the subsequent emphasis on human behavior through his concept "man comes first." Chester I. Barnard: his participation is in his logical analysis of the organizational structure and the application of sociological concepts to the administration. Contemporary Contributors: To this growing school of behavior, you can add contemporary authors such as Simon, Argyris, Selekaman, and Leavitt.
- Henri Fayol: He was the father of this current. His original insightful enumeration of administrative functions still reads like a current treatise on administration, and his classic analysis of administrative functions has stood the test of time. James D. Mooney - He conceived the idea that the organization used by all great managers was the same, and proceeded to test it. What he got was an organizational concept based on escalating processes, functional job definitions, and fundamental coordination.
CHAPTER II ADMINISTRATION PROCESS
Planning
Planning consists of setting the specific course of action to be followed, establishing the principles that will guide it, the sequence of operations to carry it out, and the determination of times and numbers necessary to carry it out.
Planning is important how to do, because:
- Efficiency, a work of order, cannot come from chance, from improvisation. Just as in the dynamic part the central part is directing, in the mechanics the center is planning: if managing is “doing through others”, it is necessary first make plans on how that action will have to be coordinated The objective would be fruitless if the plans did not detail it, so that it can be carried out comprehensively and efficiently All plan tends to be economical All control is impossible if it is not compared with the plan previous.
ORGANIZATION
Organization is the technical structuring of the relationships that must exist between the functions, levels and activities of the material and human elements of a social organism, in order to achieve maximum efficiency within the aforementioned plans and objectives.
The organization takes into account the creation of a structure in which a hierarchy is clearly distinguished at different levels, clearly exposing the functions of each of the elements that form it. You have to realize how they are interrelated with each other.
In the organization, the details that are considered in the planning regarding how the company should be are finalized. Another aspect of the importance of the organization is to build the connection point between the theoretical aspects called administrative mechanics, and the practical aspects called dynamics, between what should be and what is.
Given the diversity of societies, this is how we find in a similar way the same number of organizations, within a society there are two types of organization:
- Formal organization. It is a planned structure that deliberately tries to establish a pattern of relationships among its components, which will lead to the effective achievement of the objective. Informal organization. It includes those aspects of the system that have not been formally planned but that arise spontaneously in the activities and interactions of the participants.
It is important to know the elements that make up the organization as elements of the administrative process: a) hierarchies, b) functions, c) obligations.
- "The hierarchy designates in general the scale of subordination relations that one superior and inferior in all organism".
The lines of authority and responsibility of the company occur along the axes, one vertical and the other horizontal as a logical consequence of the division of labor.
The vertical development of the company gives rise to the chain of command and the different hierarchies with the corresponding delegation of authority and responsibility at the different levels of command.
The horizontal expansion of the company structure occurs through the division of the firm into areas of specialization, such as sales, production, etc. When this division of the company occurs, it is observed that those activities that are homogeneous tend to be grouped within individual departments.
It is of fundamental importance in the organizational process, the detailed analysis of each position within the company, as well as a detailed description of the requirements of the position. This description will be of great help later when it comes time to select the right person for the position. Among the points to study in an adequate description are the following:
- Defining authority and responsibility in a clear and precise way Making it clear to whom the person holding the position must report and obey The type of education required for the position
INTEGRATION
It is the first element within the administration that is considered as the dynamic phase, that is, we go from the constructive to the operational.
"Integration is obtaining the material and human elements that the organization and planning indicate as necessary for the proper functioning of a social organism."
That which has been established by the forecast, planning and organization, must be carried out, so that the company must in this phase approach the human and material resources that meet the characteristics that were previously specified. In this way, mention should be made of the integration of people and the integration of things.
"Hungers that have to perform any function within a social organism must always be sought under the criterion that they meet the minimum requirements to perform adequately."
This is the basic principle of integration, on which a lot of emphasis must be placed when hiring a person. As simple as I seem, the fact of not putting it into practice can lead to failure of a company, it is extremely important to get "the right man for the right job" with this clarification, it should be said that the person in question should not be below of the requirements, but it is also important that it is not above them, both cases are undesirable, because in the long run this will surely be reversed against the company.
Below is a summary of the process by which companies gather human resources.
Initially, the recruitment is carried out, the purpose of which is to make people totally strangers to the company, candidates for a position in it, both by making them known to it, and by awakening the necessary interest in them. Thus, the company sees itself in the need to resort to various sources of supply of human resources, among the most frequent we find:
- The union, except in the case of trusted personnel Schools, these can be of various lines, according to need Employment agencies, for all cases Staff recommended by current workers, for all cases The door from the street, this is due to the prestige of the company, people come freely to apply for employment.
Once the applicants come into contact with the company, it is necessary to carry out the next step, this is to carry out the selection process, which aims to choose, among the different candidates, those who for each specific position are the more suitable, according to the principle stated above.
In the development of this process, a series of activities are carried out, the purpose of which is to acquire as much information as possible from the candidates, in order to have as much information as possible regarding them, starting with the filling in of the application form., in which it is understood from their general data, their academic preparation, to their experiences in other companies, such as positions held.
Based on this information, a personal interview is carried out, in order to have an approach with the candidate to observe their behavior, reactions, presence, and especially the motivation and skills and knowledge towards the position. Subsequently, candidates are subjected to written examinations, both psychometric, as well as theoretical knowledge and practical knowledge, of aspects that the position requires. These three exams are truly revealing in terms of their personality and theoretical - practical heritage that characterize the candidate, it is important to weigh a balance between these three aspects, with respect to what the position requires.
Finally, the candidate should be given a medical examination to verify his health, something that cannot be missed, since his performance at work depends on this.
The person who is selected,. It must be subjected to a process of approach to the company known as introduction, which aims to articulate and harmonize the new element to the social group of which it was a part, in the fastest and most appropriate way. In fact, this process is a precedent for the new employee to formally start his work, for this a general introduction to the company is carried out, starting with the processing of his documents including his contract, benefits from the company, he receives the welcome, in addition they are briefed on the policies and regulations, then a tour of the facilities is carried out and you are finally presented with your new boss and left there. Already located in his department, the boss carries out an introduction of the new employee to his department or section, introducing him to his co-workers,and in a particular way, the details of the work to be developed are already fully entered into.
Within this element of integration the last phase is known as development; This is carried out once the employee has been hired definitively, the development seeks to develop the innate qualities that each person has, to establish their maximum possible fulfillment.
DIRECTION
The management is that element of the administration in which the effective realization of everything planned is achieved through the authority of the administrator, exercised based on decisions, either taken directly or by delegating said authority, and it is monitored simultaneously that all the orders issued are duly fulfilled.
In this part, the achievement of the objectives is carried out, through the direction as such, this implies materializing everything that at a given moment began as an idea, which is reflected in documents and now corresponds to carry out actions that make possible the fulfillment of this. The address is the essential part of the administration, in which all other elements must be subordinated and ordered. To achieve a good direction it is necessary to consider the following four fundamental phases:
- That authority be delegated That authority be exercised, for which its types, elements, etc., that communication channels be established through which its results are exercised and controlled, That the exercise of authority be supervised simultaneously to the execution of orders.
CONTROL
Control is the measurement of current and past results in relation to those expected, either totally or partially, in order to correct, improve and formulate new plans.
This is how a control is carried out between what is planned and what is achieved, if there is no difference between them, we are in the position of affirming that the objectives set in the respective process have been achieved. Otherwise, based on the differences, we carry out a process to investigate the causes that led us to these and, once identified, implement corrective actions, including the respective modifications to the plans.
RECOMMENDATIONS FOR THE ORGANIZATION
1.- This company must adhere to the guidelines established in the bulletins and circulars issued by the Mexican Institute of Public Accountants and the National Securities Commission.
2.- When this company finds it necessary to deviate from accounting policies, it may do so with prior written authorization from the comptroller's office.
3.- The application of accounting policies must be uniform in the monthly, quarterly and annual information and will be subject to verification by internal audit.
4.- The company must issue an opinion at the close of the annual fiscal year in December, its financial statements through the external auditor.
5.- During the development of the external audit, any exception that may result in the company must be authorized by the control department, prior to the issuance of the corresponding opinion.
6.- The selection of the external audit firms will be carried out by the comptroller's office, taking into account the company's point of view.
7.- The company will be responsible for the establishment of its own accounting systems and internal control.
8.- When information is delivered for internal use, it must be complete, it will include all financial statements with all the annexes.
9.- The acceptance of the information must be made through computerized systems.
10.- Corrections in the information relating to previous months must be presented as adjustments for the month in which they are recorded and do not directly modify those accumulated from the previous month, presenting an explanatory note to the financial statements.
MAIN PHASES
For an accounting organization of the company, it is necessary to mention the administrative process that comprises four phases: planning, organization, direction and control, considering that planning is to say in advance what is going to be done by setting objectives and determining activities to reach them.
The organization is the enumeration and determination of the activities necessary to achieve the objectives of the company and is achieved through the definition of hierarchical relationships between executives of the administrative units and the establishment of horizontal and vertical communications within the company.
The dynamic phase is represented by the management, in which the expeditions of orders to be carried out are related, aimed at achieving maximum efficiency within the structure and formation of the company.
The control exercises vigilance over the effects made in the three previous phases, investigates abnormalities quickly to exercise the necessary control according to plan, both in technical problems and in humans.
The accounting organization is located within the control, since it tells us how the actions are being executed; when and how, according to the plans where we have the reports, comparisons, costs and budgets as a result.
INTERNAL CONTROL ELEMENTS
For a better understanding of the factors that intervene in the internal control of companies, the elements that are part of it are presented below.
- Organization
“The elements of internal control in which the organization intervenes are:
1.- Management, which assumes responsibility for the general policy of the company and the decisions taken in its development.
2.- Coordination, which adapts the obligations and needs of the integral parts of the company to a harmonious homogeneous whole; that foresees the conflicts of invasion of functions or interpretations contrary to the assignments of authority.
3.- Division of labor, which clearly defines the independence of the functions of the operation, custody and registry. The basic principle of internal control is, in this regard, that no department should have access to the accounting records in which its own operation is controlled. Under the same principle, the accounting department should not have operational or custody functions, but rather focus on the correct recording of data, verifying their respective authorizations and evidence of applicable controls, as well as the presentation of the reports and analysis required by the management to adequately control the operations of the company.
The principle of division of functions prevents those on whom the performance of a certain operation depends from influencing the form that its registration or possession of the assets involved in the operation should take. Under this principle, the same transaction must go through different hands, independent of each other.
4.- Assignment of responsibilities, which clearly establishes the appointments within the company, its hierarchy and delegates authorization powers consistent with the assigned responsibilities. The fundamental principle in this regard is that no transaction is made without the approval of someone specifically authorized to do so. In any case, there must be evidence of this approval, with the possible exception of minor routine activities in which the approval can clearly be understood as tacit.
- Procedures
The existence of internal control is not demonstrated only with an adequate organization, as it is necessary that its principles are applied in practices through procedures that guarantee the solidity of the organization.
1.- Planning and Systematization. It is desirable to find in use a general instruction manual or a series of instructions on management and coordination functions, the division of labor, the authorization system and the establishment of responsibilities.
These instructions usually take the form of procedure manuals and are intended to ensure compliance, by staff, with the practices that give effect to company policies, standardize procedures, reduce errors and shorten the staff training period. and eliminate or reduce the number of verbal orders and hasty decisions.
For example: in the specific aspect of accounting, planning and systematization require at least a catalog of accounts with their respective instructions, but rather a graph of the accounting process to the accounting forms, records and reports.
2.- Records and Forms. A good internal control system must provide adequate procedures for the complete and correct recording of assets, liabilities, products and expenses.
3.- Reports. From the point of view of monitoring the activities of the company and the personnel in charge of carrying them out, the most important element of control is internal information. In this sense, of course, the journalistic preparation of internal reports is not enough, but a careful sense by people for their ability to judge them and sufficient authority to make decisions and correct deficiencies.
The accounting reports constitute this aspect a very important element of internal control from the preparation of monthly balances, to the distribution sheets of customer debts by seniority or two obligations by maturity.
- Personal
No matter how solid the organization of the company is and the procedures in place are adequate, the internal control system cannot fulfill its objective if the daily activities of the company are not continuously staffed with fewer than suitable personnel.
The elements of this area that intervene in internal control are:
1.- Training. The better training programs in place, the more capable the personnel in charge of various aspects of the business will be. The higher degree of internal control achieved will allow the clear identification of the functions and responsibilities of each employee, as well as the reduction of inefficiency or waste.
2.- Efficiency. After training, the efficiency will depend on the personal judgment applied to each activity. The business interest in measuring and encouraging efficiency is an aid to internal control.
3.- Morality. It is obvious that staff morality is one of the pillars on which the internal control structure rests. Admission requirements and the constant interest of managers in staff behavior are, indeed, important aids to control. Periodic vacations and a staff rotation system should be mandatory as far as business needs allow.
4.- Remuneration. There is no doubt that adequately paid personnel are willing to carry out the company's purposes with enthusiasm and focus more attention on efficiently fulfilling it than on making plans to embezzle the business. The personnel compensation systems, incentive and leave plans, old-age pensions and the opportunity given to them to raise their suggestions and personal problems constitute important elements of internal control.
- Supervision.
As has been said, it is not only necessary to design a good organization, but also constant vigilance so that the personnel develop the procedures in their charge in accordance with the organization's plans. Supervision is exercised at different levels, by different officials and employees, and in direct and indirect ways.
A good planning and systematization of procedures and a good design of records, forms and reports, allows the almost automatic supervision of the various aspects of internal control ”.
OBJECTIVES OF THE ACCOUNTING ORGANIZATION
The objectives of the accounting organization are represented by the fluidity that must exist in the information towards the center of the registry, which is achieved through the capture of operations, their homogeneous classification and the registry of the same in a quantitative and concentrated way.
The organization is achieved by planning before acting, doing what was planned and verifying that what was done was correct and with satisfactory results to achieve the planned end.
To organize, we must achieve the coordination and interpretation of the activities so that through adequate execution and supervision we obtain the desired objective that allows us to exercise control.
The achievement of a good accounting organization is not based on recording systems and methods, but on the flow of information that must exist; For this reason, the organizer, before starting his projects for the accounting organization of a company, must deal with the necessary information for its accounting record.
There must be adequate control of the operations carried out by a company through its departments, establishing the basis that all operations must be reported to the accounting department for registration purposes.
The importance of the information from the accounting point of view lies in receiving the necessary information through the establishment of methods to be followed to record the information received.
Economic events are recorded, establishing cause-and-effect relationships through the accounting of operations, which consists in quantitatively determining how many were affected.
Through Inter documents. And externally, the operations carried out by a company are captured, serving as the basis for their registration in books, which helps us to verify, justify and report on the movement of values carried out.
According to the accounting record system that is in place, the supporting documentation used will be used, trying to use the external one if possible and the supporting or supporting documentation to control and record operations.
CHAPTER III MANUAL FOR THE ORGANIZATION OF A PETROCHEMICAL COMPANY
- a) SPECIFIC ASPECTS OF THE COMPANY
CHARACTERISTICS OF CHEMISTRY
Chemistry is a branch of the physical sciences, closely related to physics and extending to various disciplines, from Astronomy to Zoology. Because of this, it has been studied for centuries, although the era of modern chemistry probably dates back to 1800, when its principles began to be discovered.
All our civilization rests on chemical bases on the one hand, chemical research has produced highly toxic gases, powerful explosives, atomic or nuclear bombs and other deadly agents of destruction, of which the civilized world has known their terrible effects. But on the other hand, chemistry helps powerfully to our livelihood, such as by manufacturing artificial fertilizers and chemical products that increase the quantity and quality of food as well as its conservation and use; They make life easier and more enjoyable by providing materials and products for construction, communication and transportation, and by making many commonly used utensils.
Currently the following subdivisions are distinguished in Chemistry:
- General chemistry. It can be defined in general terms as the study of the composition, properties and changes of matter. Inorganic chemistry. It is that branch of chemistry that studies all substances that do not contain carbon, plus some earthy or rock-like substances that contain this element. Organic chemistry. Which mainly studies the composition, properties and changes of substances that contain the element carbon. Analytic chemistry. It is basically dedicated to the determination of the chemical composition of substances. Physical chemistry. Who studies the relationship between matter and energy. Technical chemistry.It describes the industrial procedures for obtaining the substances, both in relation to the general operations of the same unit processes (Chemical Engineering) and in relation to each particular industry (Industrial Chemistry). Biological or biochemical chemistry. It is the science that is related to the composition and structure of the substances found in living systems and the chemical reactions that take place in systems
Within the previous classifications, our company is in Organic Chemistry, which is very useful in its different manufacturing processes, since through these a great variety of useful chemical products are derived for the economic development of the country.
THE OIL
Definition
Petroleum is a hydrocarbon compound, that is, a combination of carbons and hydrogens exclusively.
Chemical elements of crude oil
When analyzing oil from various sources, you can say that it is made up of the following elements:
Carbon ………………………………….76 to 86%
Hydrogen ……………………………….10 to 14%
characteristics
1.- It is found in the subsoil.
2.- Assume the three physical states of matter.
3.- Its color varies between amber and black.
4.- Its density is less than that of water.
5.- In its gaseous state it is odorless, colorless and tasteless, it can be found alone or mixed with liquid oil.
6.- In the subsoil it is above a layer of water, being in the upper part of a layer of gas.
7.- The rocks in which the oil is found are of various geological ages.
General
Oil has been used for many centuries; In the bible it appears with the name of combustible mineral bitumen; the Babylonians and the Assyrians used it for lighting and as cement for their buildings. The Arabs and Hebrews for medicinal uses, the Egyptians for embalming paintings on tomb walls, the Chinese were the first to use natural gas for lighting and as an element of warfare. Marco Polo speaks of its use in Georgia, in Russia in the 13th century.
In Baku Russia, in the Caspian Sea, the oil and gas springs served to maintain fire that they considered sacred, it burned until 1880 the year it was attached.
The Indians of America used it to waterproof canoes, in Mexico the Totonacs collected it to use it as medicine or incense; some tribes on the Gulf Coast chewed it to clean and whiten their teeth.
Amado Argand, invented a lamp in 1784; Antonio Quiquet made modifications to the lamp and gave it his name, with this lamp a new use of oil was introduced.
In the United States, the way to obtain liquid petroleum to make their lamps burn was studied; Samuel M. Kier, sold bottled oil that cured the ailments of both human beings and animals; in Philadelphia he consulted a chemist and returned to distilling oil, thus becoming the forerunner of refining in America.
In 1855 Benjamin Sillima Jr., an American chemist, concluded his study on the refining of petroleum, based on fractional distillation, a method used today.
“Currently the main oil producing countries worldwide are the following:
- Saudi Arabia, Canada, Egypt, United Arab Emirates, United States, Indonesia, Iran, Iraq, Kuwait, Libya, Mexico, Nigeria, Norway, United Kingdom, People's Republic of China, USSR, Venezuela
Mexico occupying fourth place among all these countries. "
In 1987, the international oil market showed relative stability despite the uncertainty created by the Iran-Iraq war and the collapse of the dollar in international financial circles at the end of the year.
Oil formed according to a widely supported theory, the remains of countless small marine animals and plants fell to the ocean floor, where they were covered by mud.
Over time many layers of mud and plant and animal remains accumulated.
These sediments were subjected to great pressure and heat, and were often crushed and reshaped as the Earth's crust moved. Gradually, they were turned into strata of sedimentary rock.
The plant and animal remains they contained were transformed into oil and natural gas.
In the 1950s, with the process of obtaining aromatics (benzene, toluene, xylenes), through the formation of naphthenic and paraffinized hydrocarbons with platinum catalysts and the purification methods by extraction with solvents, such a process with the disintegration of saturated hydrocarbons to produce olefins (ethylene, propylene and butanes), gave rise to what is known as the Petrochemical Refinery Industry or Chemical Refinery.
The development of the Petrochemical Industry in recent years has been surprising, in such a way that our current society satisfies its basic and secondary needs from petroleum-derived consumer products.
It can be predicted that in the future, man will be more linked to petrochemicals and the use of its products, which must satisfy many of his needs such as: room, clothing, health, fun, education and food.
PETROCHEMICAL
The petrochemical industry is a fundamental activity for the economy of developed countries and for developing countries such as Mexico. The massive volumes of chemical production at a considerably lower price than that obtained by using other less abundant natural raw materials in their production.
Its importance is also associated with the great application that all its products have, since they are practically used in all human activities such as: Agriculture, housing, food, medicine, clothing, etc.
Historical background
Petrochemicals practically began with the production of isopropyl alcohol, from propylene obtained from waste gas from refineries in 1923.
In the 1930s, the petrochemical industry was limited to producing alcohols and ketones that were used as solvents during World War II, the era of synthetic polymers began and the substitution of natural products for synthetics such as: wool, cotton, fibers, oils for paints, etc.
An important development was in 1940 the reforming of natural gas with steam that produces hydrogen in industrial quantities, made possible by the development of nitrogen fertilizers.
FABRICATION PROCESS
Within this Petrochemical Industry, we will analyze in a generic way what constitutes its manufacturing process, which in the first place we will say that it is an industry dedicated to the production of industrial raw materials, derived from ethylene oxide, propylene oxide and styrene.
Its main production is the manufacture of glycols and polyols, with respect to glycols we will say that they are those compounds that in their molecule have twice the function of alcohol, exceptional among natural products are almost entirely synthetic.
Its official name: CH 3 - CHOH - CH 2 OH = 1.2 Propanediol
The name glycol was composed by Wurtz, who was the first to prepare the simplest term, ethanediol or ethylene glycol (and even simply glycol), and glycerol "trialcohol".
Within its production it is carried out through the continuous process that tells us, which is the one in which reagents are fed to a system, they undergo changes giving products simultaneously and without interruption of the operating sequence.
Regarding the polyols, we will say that they are compounds that contain several functions, however, the polyols themselves start from the tetraols, since the diols are called glycols and the trichols glycerols.
Among them are numerous natural products, most of which respond to the formula:
CH 2OH - (CHOH) N 2 - CH 2 OH (ITOLES)
In this polyol production, the discontinued process is used, which is intermittent in nature and in which no continuous stream of raw material enters or leaves the system during its process.
This company carries out a trajectory of expansion and constant growth, installing new and modern plants, giving us the possibility of offering a greater variety of products, increasing our supply volumes to fully satisfy the requirements of the National market and establish a permanent flow of exports.
"Currently this company has an installed capacity of 135,000 tons per year, which allows it to produce more than 200 products for 300 customers, both nationally and internationally."
- b) ADMINISTRATIVE ORGANIZATION AND DEPARTMENTAL FUNCTIONS OF THE COMPANY.
In this section we will deal with matters relating to the organization of our company.
Being the organization as the technical structure of the relationships that must exist between the functions, levels and activities of the material and human elements of a social organism, in order to achieve maximum efficiency within the aforementioned plans and objectives.
Organizational charts consist of sheets or cards in which each position of a boss is represented by a table that encloses the name of this position, representing, by the union of tables by lines, the channels of authority and responsibility.
Organisms can be vertical, horizontal, circular, and scalar.
Our company is located within the vertical organizations, where each position subordinate to another is represented by tables at a lower level, linked to that by lines that represent the communication of responsibility and authority.
The advantages it has are:
TO). They are the most used and, therefore, easily understandable.
B). They objectively indicate the hierarchies of the personnel.
Below is the organization chart for a Petrochemical company.
DESCRIPTION OF DEPARTMENTAL FUNCTIONS
Regarding this point, we show the levels of organization for a Petrochemical company, since the degree of authority and responsibility that occurs within each line determines the hierarchical levels.
Regarding the description of the departmental functions, we will say that it is the last step within the organization. Once the various departments and hierarchical levels have been established, it is the precise definition of what must be done in each work unit, which is commonly known as the position.
Within the description of functions for this company is composed of the following:
TO). Header or identification.
B). Generic description and the specific description, where each step of the operation is detailed.
C). To whom the information is reported, and
D). Location of the position.
INVESTORS ASSEMBLY
The general assembly of shareholders is the supreme body of the company and as such, it represents the capital of all public limited companies; can agree and ratify all the acts and operations of the company and its relations will be fulfilled by the Board of Directors; its location is in Monterrey, Nuevo León.
BOARD OF DIRECTORS
It depends directly on the General Assembly of shareholders, the administration of the company will be in charge of one or more temporary and revocable agents, who may be partners or strangers to the company; its location is in Monterrey, Nuevo León.
DIRECTORATE-GENERAL
The general manager is responsible for directing, as well as collecting information that shows the work carried out by the company's management, in order to form an exact judgment of the events and conditions of the results, of the operations carried out by the same and of in this way formulate its conclusions and recommendations, and report directly to the Board of Directors.
He delegates to the Human Resources Management, Sales and Marketing Management, Operations Management and Finance Administrative Management; its location is located in General Offices.
HUMAN RESOURCES MANAGEMENT
It carries out functions of coordination, selection and administrative evaluation of personnel, its main function is to provide the human resources of the company, as well as the administrative control of this and it reports to the general director delegating to its office and plant managers, its functions of selection, evaluation and administrative control of personnel; its location is located in General Offices.
MARKETING AND SALES DIRECTORATE
It is the one that is in charge of providing the essential means by which the company will be turning through investigations to publicize its products and obtain greater profitability from them, it is reported to the general director and delegated to its Marketing Management and sales managers by product line; its location is located in General Offices.
DIRECTORATE OF OPERATIONS
It is in charge of collecting the reports that are given to it by its manager, to make corrective decisions for a good operation of the company, which reports to the general manager and delegates down to the operation manager and Technical Management; its location is located in Plant.
ADMINISTRATIVE AND FINANCE DIRECTORATE
It is the function of this Directorate, administrative control, based on planning, direction and organization, since these elements being carried out provide greater efficiency within the company, this Directorate reports to the CEO and delegates responsibility to system managers, comptroller general, purchasing manager, and credit and collections manager; its location is located in General Offices.
OPERATIONS MANAGEMENT
It is the responsibility of taking advantage of the equipment available to the company to efficiently develop the manufacturing processes of its products, it reports directly to the operations director and delegates responsibilities to its production, maintenance, distribution and warehouse superintendents; its location is located in Plant.
TECHNICAL MANAGEMENT
He is responsible for quality control, industrial safety and research and development of processes in order to obtain greater efficiency within the productivity of the company, he reports directly to the director of operations and in turn delegates to his heads of Quality Control, Industrial Safety and Research and Development; its location is located in Plant.
SUPERINTENDENCE OF DISTRIBUTION AND WAREHOUSES
It is responsible for the reception of materials, raw materials and finished production products, as well as the distribution of products to the client, as well as the supply of materials and raw materials to the production and maintenance area. Reports directly to the operations manager and delegates to their heads of Supplies Warehouse, Finished Product Warehouse, Logistics and Production Control and Scheduling; its location is in plant.
SUPERINTENDENCE OF MAINTENANCE
In its responsibility to maintain a good operation for its use, the equipment and installation of the company, for a good use of the production resources of the same, which reports directly to the operations manager and delegates to its headquarters of Electrical Maintenance, Maintenance Mechanical, Instrumentation and General Services; its location is located in Plant.
PRODUCTION SUPERINTENDENCE
It is responsible for the manufacture of the different products that are made in the different sections, as well as monitoring their processes, custody of the equipment, reporting directly to the operations manager, delegating continuous and discontinuous sections to their heads; its location is located in Plant.
HEAD OF SUPPLIES WAREHOUSE
It is responsible for the acquisition of raw material that is consumed in the plant, for the production of products that are made with a production order, it also supplies spare parts and equipment that is requested, to achieve greater efficiency of the plants. Reports directly to the Superintendency of Distribution and Warehouses. Delegates responsibility to their supervisors on duty; its location is located in Plant.
FINISHED PRODUCT WAREHOUSE MANAGER
It is responsible for the finished product warehouse, where it is the recipient of the different plant products, in turn supplies products as raw material for production.
He has under his custody the management of the storage tanks, and is in charge of preparing monthly inventories, for the proper management of the inventory control products. Reports directly to the Superintendency of Distribution and Warehouses. Delegates responsibility to their supervisors on duty; its location is located in Plant.
HEAD OF LOGISTICS
Coordinates the orders received from the Vein Department, for its distribution of finished product to customers.
Contract the appropriate transport to send the products to their destination. Reports directly to the Superintendency of Distribution and Warehouses. He delegates responsibilities to his assistant and supervisors on duty; its location is located in Plant.
HEAD OF CONTROL AND PROGRAMMING OF PRODUCTION
His responsibility is to prepare a production program, based on the sales forecast, to produce the products in the plant.
Requests the required quantities of raw materials, also schedules the remanufacturing products, is a link between the sales area.
It controls the production of the plant such as: yields, times, etc., statistics administration control and reports directly to the Superintendency of Distribution and Warehouses. Delegates responsibilities to your supervisor or programming analyst; its location is located in Plant.
- c) APPLICATION AND OPERATION OF THE ACCOUNTING REGISTRY SYSTEM
In the first place, we will make known in a clear and precise way the elements that a company must always keep in mind for the start of its operations.
1.- CATALOG OF ACCOUNTS
It consists of an ordered and detailed list of the accounts that have to be used in the registry of the operations of a company.
The design of the account catalog must be carried out with great care, and must contain the accounts necessary to control all the values and operations required.
2.- INSTRUCTION FOR THE "CATALOG OF ACCOUNTS"
It is a document in which the movements and balances of each of the accounts contained in the catalog are detailed.
It can be elaborated in various ways, the most common being the continuous description and through “T” accounts.
3.- ACCOUNTING GUIDE
It is the document by which the registration procedure of the most important operations carried out by a company is consigned.
Its main purpose is to facilitate the recording of operations as much as possible, avoiding constant consultations with the accountant as much as possible.
4.- ESTABLISHMENT IN FORMS OR RECORDS
The documentation of a company can be internal, external and mixed. Therefore, when designing the forms of control, registration and information, the kind of information to be processed must be taken into account.
Documentation is of utmost importance within the company, since through it the events and operations that take place within it or by other economic entities are coordinated.
Its main purposes are the following:
to). Capture and control of operations.
b). Verification of operations.
c). Justification of operations, and
d). Accounting and recording of operations once the above has been seen
- d) PRACTICAL EXERCISE
Every industrial company has as an essential activity the production of goods, whose operations must be controlled by a cost system, this being a means to obtain manufacturing unit values.
In this section we will see in a simple and straightforward way the development of a practical exercise, where the accounting registration system adopted by the company can be appreciated.
In the first place we will say that the technique to value the productive operations in our practical case, the technique of Historical or Real Costs is used, which are those obtained after the product has been manufactured.
The technique of Predetermined Costs is also used, which are calculated before the product is made or finished; and depending on the bases used for their calculation, they are divided into estimated costs and standard costs.
It should be taken into account that the basic procedures for the control of production operations are production orders and production processes, which can even be adapted and used in combination according to their needs and forms of production of the particular economic entity.
The valuation in terms of the warehouse exits, is handled through the technique of Last entries, First exits (UEPS), which consists of valuing the warehouse exits using the prices of the last entries, until the inventory whose entry is more recent. It only refers to registration, not physical movement.
The company Industrial Petroquímica, SA de CV, began its operations in January 1990, with the following values:
There must be
Box $ 5000000
Banks 200,000,000
Finished goods warehouse 31828000
Machinery and equipment 50,000,000
Computer equipment 50000000
Transport equipment 80000000
Suppliers $ 50,000,000
Docs. Payable 40,000,000
Sundry creditors 30,000,000
Share capital 2,650,000
In the finished products warehouse, there is an existence at 311289 of 73,000 kgs., Its distribution being the following:
15000 kgs Pluracol P-2010
22000 kgs Pluronic L-61
20000 kgs Pluracol GP-3030
16000 kgss Pluracol GP-443
For the solution of this exercise we will not locate in the following data, with which the company can determine the unit cost of the product.
- Product structure:
- Its installed capacity will be 5000000 kgs per year. For the production of the different products, the following raw materials are required:
* glycerin 0.05 kgs
* caustic potash 0.10 kgs
* Propylene oxide 0.40 kgs
* Ethylene oxide 0.40 kgs
* labor 0.10 per kg
* indirect materials 20% mat. Direct
- A market study was carried out. For the purchase of raw materials, obtaining the most favorable quotes that are mentioned below:
Glycerin $ 600.00 kg
Caustic potash 550.00
Propylene oxide 300.00
Ethylene oxide 250.00
Labor 700.00 per hour
- The structural or fixed costs that are considered necessary for the determination of the unit cost are:
Administration and sales expenses $ 156 122 268.00 annually
- The sale price for the products is 60% of profit on the unit cost. The operations of the month were as follows: Purchase of raw material on January 3, 1990.
No. Concept Supplier Remission Unit amount
1 3000kg of glycerin Mariano Salgado 405 $ 650.00
2 200kg of potash Mariano Salgado 127 $ 600.00
3 20000kg of oxide PEMEX 3030 $ 350.00
Propylene
4 40000 kg of oxide PEMEX 3031 $ 300.00
Ethylene
- b) On January 10, 1990, our outputs from the raw material warehouse to the production department are as follows:
No. Concept Exit voucher No.
1 2000kg glycerin 1
2 100kg potash 2
3 10000kg of propylene oxide 3
4 20000kg of ethylene oxide 4
- c) We issue the following checks for payment to our suppliers:
Date Check No. In favor Concept Amount
01/15/90 1500 Mariano Salgado Fact 1230 $ 22425000
01/20/90 1550 Mariano Salgado Fact. 1300 138000
01/25/90 725 PEMEX Fact. 2010 805000
01/31/90 730 PEMEX Fact. 2030 13,800,000
- d) We make sales to our clients on credit.
No. Date Concept Customer Invoice Amount (c / VAT)
1 20/01/90 10000kg of pluracol 120 Pfizer SA de CV $ 13 432 000
2 22/01/90 19000kg of pluronic 125 Resistol SA de CV 25520800
3 24/01/90 16000kg of pluracol 127 Dupont SA de CV 21491200
4 26/01/90 14000kg of pluracol 130 Celanese mexicana 18804800
- The following checks are issued for the payment of the payroll and fees for the month of January.
Date Check No. Concept In favor Amount
01/31/90 1600 International Salaries SNC $ 2,500,000
01/31/90 1600 International Salaries SNC $ 2777143
01/31/90 740 CP José Díaz 650000 fees
- Expenses are made in the administration department:
Date Check No. In favor Concept Amount
01/10/90 760 Telmex SA de CV Telephone $ 50,000 + VAT
01/12/90 765 Telmex SA de CV Teles 50,000 + VAT
01/15/90 770 Stationery sheet Art. De esc. 450,000 + VAT
01/20/90 780 Tollocan decorations Mant. Office 550000 + VAT
- Expenses are incurred in the sales department:
Date Check No. In favor Concept Amount
01/13/90 1650 Transportes Estrada Freight and haulage $ 1,000,000 + VAT
01/18/90 1660 Telmex SA de CV Telephone 100000 + VAT
- Payments are made by our clients in part and in full:
Date Concept Client name Amount
01/21/90 Partial payment Invoice 120 Pfizer SA de CV $ 9402400
01/23/90 Partial payment Invoice 125 Resistol SA de CV 20416640
01/25/90 Full payment Invoice 127 Dupont SA de CV 21491200
01/27/90 Full payment Invoice. 130 Celanese Mex. SA de CV 18804800
- There are the following values of fixed assets for calculating the depreciation corresponding to the month of January 1990.
Fixed asset name Asset value
Machinery and equipment $ 50,000,000.00
Computer equipment $ 50,000,000.00
Transportation equipment $ 80000000.00
NOTE: The production order for the month was for 59000kgs which was fully completed as follows:
10000 kgs of Pluracol P-2010
19000 kgs of Pluronic L-61
10600 kgs of Pluracol GP-3030
14000 kgs of Pluracol GP-443
- Financial statements and necessary adjustments are prepared for the solution of the exercise, in an adequate and correct way.
Unit cost sheet
Direct materials:
Glycerin 0.05 kgs at $ 600.00 each $ 30.00
Caustic potash 0.10 kgs at $ 550.00 each $ 55.00
Propylene oxide 0.40 kgs at $ 300.00 each $ 120.00
Ethylene oxide 0.40 kgs at $ 250.00 each $ 100.00
T = $ 305.00
Labor 0.10 hrs at $ 700.00 T = $ 70.00
Indirect charges
$ 20 over MD T = $ 61.00
Production Cost $ 436.00
Distribution cost
Administration and sales $ 156122268.00 / 5000000kgs $ 31.2º
Total unit cost $ 467.20
We present below the procedure for calculating the sale price of the products, which is determined by adding or subtracting the percentage of profit or probable loss from the total cost.
The total unit cost for the products is found to be $ 467.20.
In the sale price for the products there will be a 60% profit; summarized in the following:
Sales 100%
Cost 40%
Profit 60%
Using a rule of three, the profit derived from the sales minus the cost is obtained.
- 40%
X 60%
X = (467.20) (0.60) = 280.32 = 700.80
- 40
Profit = $ 700.80
Therefore, we have the following:
Sales = $ 1168.00
Cost = 467.20
Profit = 700.80
Therefore, the sale price for the products will be $ 1168.00
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