The administrative process proposed by H. Farol maintained its boom period as companies worried about planning and doing what was proposed, controlling quality by results.
Regardless of whether the work was done correctly or with errors, there was the possibility of selling first, second, third and even fourth quality products.
The quality departments were committed to results, separating good and dubious quality products. A more demanding market and a customer willing to defend the value of his salary is currently willing to give his money to companies only if he receives quality items in return - and if the price of the good he receives really represents an equivalent value.
This situation has forced companies to commit, under pressure from the competition, to produce only quality items, capable of meeting consumer needs and fulfilling the commitment to offer low prices through a process of continuous training of the workforce. and technological innovation capable of achieving competitive processes in the market with a continuous reduction of inputs, waste and greater production efficiency.
Competition keeps all companies in a permanent fight looking for competitive strategies that allow them to survive in the markets. The strategies that are being tried consider continuous improvement processes that use the PHEVA method. The most important weight of this process is in the last stage that is defined as acting (A), and that stands out for the correction of errors, since after planning (P) the product and the processes, it is necessary (H) make the product and carry out the logistics thereof. Finally,To verify (V) what has been done with what is planned, a correspondence must be established between the product or service offered to the client and their needs through a continuous evaluation that allows the company to be closer to the client through permanent correction processes that are not working properly.
It has been established that government companies have different purposes than private companies since their functions are intended to achieve objectives such as National sovereignty, the strengthening and permanence of institutions, the rule of law, individual guarantees, foreign relations, equity distribution, educational levels, health, average life span at birth, economic well-being of society, decent jobs, quality public services, among others. The tasks that correspond to the State represent a significant cost for society, however, such cost can be a blessing for everyone if in return we receive services equivalent to the amount of money we pay as taxpayers.
The inefficiencies of the government are directly reflected in the misery of the population, since misused resources, as well as for companies, will finally appear in the prices of products and services demanded by consumers. All the resources used by the government represent a cost for taxpayers by contracting the purchasing power of consumers, however, if these resources are well used when spent they will generate jobs and benefits for society. Misuse, as is the case in Mexico, hinders the development of productive economic activity, generates unemployment and deteriorates the purchasing power of society through the following aspects:
- The prices of gasoline and diesel as one of the most important instruments to finance government expenditures and that are reflected in the costs of transporting raw materials for companies and consumer prices in consumer goods and transportation. The lack of high-altitude ports that hinder the timely flow of merchandise to the exterior or interior of the country, where each day that merchandise is delayed in reaching its destination represents investment costs, loss of competitive capacity vis-à-vis abroad and delays in the recovery of the investment made The use of public resources for political campaigns, which represent costs that are higher than the social benefits they generate.Neglect of roads that make transportation slower and more expensive for companies and that is reflected in popular consumer products and services. The cost of servicing the external and internal debt used for idle expenses instead of being applied to profitable investment. (If companies go into debt, they must ensure that the costs of debt service are lower than the benefits to be received, since the benefits would be insufficient to pay the interest.) Public services in charge of the executive, legislative and judicial powers that They are carried out at the margin of levels of efficiency and profitability where the cost of the service is far from approaching the social benefit received by the population.The presence of subsidies for marginalized groups as an alternative solution to social pressures due to the presence of poorly designed employment strategies, lacking social objectives The growing crime that, due to lack of employment, finds as an alternative to work in this business The social costs that represent the prisons by demonstrating the inability of governments to use public resources correctly to generate employment The increasing hiring of police officers to monitor the safety of people who work occupying public resources in a game where jails, police, criminals and a power appear executive, legislative and judicial busy solving problems that if there were planning would not have to exist.The growing crime that, due to lack of employment, finds as an alternative to work in this business The social costs that prisons represent by showing the inability of governments to use public resources correctly to generate employment The increasing hiring of police officers to monitor the security of the people who work occupying public resources in a game where jails, police, criminals and an executive, legislative and judicial branch are busy solving problems that, if there were planning, would not have to exist.The growing crime that, due to lack of employment, finds as an alternative to work in this business The social costs that prisons represent by showing the inability of governments to use public resources correctly to generate employment The increasing hiring of police officers to monitor the security of the people who work occupying public resources in a game where jails, police, criminals and an executive, legislative and judicial branch are busy solving problems that, if there were planning, would not have to exist.The increasing hiring of police officers to monitor the safety of people who work occupying public resources in a game where jails, police, criminals and an executive, legislative and judicial power are busy solving problems that, if there were planning, would not have to exist.The increasing hiring of police officers to monitor the safety of people who work occupying public resources in a game where jails, police, criminals and an executive, legislative and judicial power are busy solving problems that, if there were planning, would not have to exist.
Society resembles a living organism. All your resources are intended to build to maintain a healthy body. This does not mean that there is an absence of parasites in the system, however, they live on the waste that the system expels without damaging it. When healthy resources begin to be affected by parasites, the degradation (disease) of the system is generated like a cancer and it is necessary to remove it in a timely manner to avoid further damage.
Establishing a vision of the nation for leaders is similar to the vision of each individual, who must be able to keep it alive and fight to achieve what is proposed. The vision for a nation can be very clear in the sense of seeking greater well-being for the population, however, the state leadership must be able to maintain a balance of interests between the different social groups where each one struggles to achieve its objectives.
The expenditure budget is proposed as an instrument to achieve the nation's objectives for each year, however it only includes the administration of public resources that will be administered (spent) strictly by the executive, legislative and judicial powers without long-term planning. In this part of the plan, society only participates as a passive entity or recipient of the policies decided by the budget executing agency. The absence of a vision of the nation that commits the State to comply with goals and objectives keeps, in addition to the population, an important part of the people who make up the powers of the nation.This situation presents the public budget as a booty that can be distributed among the elected and that at the beginning of each year those who are closest and have the authority to decide on its use will be the beneficiaries.
To plan
Nation planning must involve the entire population where each one must fulfill the part of the work that corresponds to him to achieve the vision of the nation that we seek, following nationalist principles where the natural, technical, and human resources of Mexicans are used first. and subsequently, without damaging the fulfillment of the proposed objectives, the use of external material, human and technological resources.
An ideal tool for planning the tasks that each of the participating entities must fulfill in society is the double entry matrix or the nation's input product, where the columns represent the inputs required by each sector, branch or activity to achieve its production.
Columns of the Input Output Matrix
Each Sector, branch or activity presents in its column, as the first part, the inputs it receives from other sectors and that are necessary to carry out its activity, INEGI presents this information in aggregate form for 18 branches:
1. Agriculture, forestry and fishing
2. Mining (excluding petroleum)
3. Oil and natural gas extraction
4. Food products, beverages and tobacco
5. Textiles, clothing and leather industry
6. Wood and wood products industry wood
7. Paper, paper products, printing and publishing
8. Chemicals and petroleum derivatives
9. Non-metallic mineral products
10. Basic metal industries
11. Metal products, machinery and equipment
12. Other manufacturing industries
13. Construction
14. Electricity, gas and water
15. Commerce, restaurants and hotels
16. Transport, storage and communications
17. Financial services, insurance and real estate
18. Community, social and personal services
19. Total national inputs
A second group is represented by inputs that are not produced in the country and that need to be imported. Once this line is added, the national and imported inputs will be taken together.
20. Total imports
21. Total domestic and imported inputs
In the third group of inputs, the gross added value appears, represented by the value that labor incorporates into raw materials in its transformation process and is distributed as follows:
22. Gross value added
a) Compensation of employees. (Workers)
b) Gross operating surplus. (Company earnings)
c) Indirect taxes net of subsidies. (Government)
Together they make up the total gross value of production and final demand where each column is represented by the sum of purchases of domestic and foreign inputs plus the gross value added.
23. Total gross value of production and final demand.
Lines of the input product matrix
Each line represents what the branch of activity can generate for the other branches, what it can produce in excess for export, the amount of production that can be used for private consumption and government consumption, what is generated by imputed banking services, gross training of fixed capital and changes in inventories that together will make up the total final demand.
What is generated by each branch will be distributed to the branch itself and the rest as part of the inputs that each one requires in the production process, known as intermediate demand. (INEGI, 1980).
1. Agriculture, forestry and fisheries
2. Mining (excluding oil
3. Oil and natural gas extraction
4. Food products, beverages and tobacco
5. Textiles, clothing and leather industry
6. Wood and wood products industry
7. Paper, paper products, printing and publishing
8. Chemicals and petroleum derivatives
9. Non-metallic mineral products
10. Basic metal industries
11. Metal products, machinery and equipment
12. Other manufacturing industries
13. Construction
14. Electricity, gas and water
15. Commerce, restaurants and hotels
16. Transport, storage and communications
17. Financial services, insurance and real estate
18. Community, social and personal services
19. Total intermediate demand
The surpluses generated by each branch will be distributed as follows:
20. Imputed banking services
For interest and services that the branch receives from financial institutions and pays for them.
21. Private consumption
Which represents the amount of goods that will be acquired by families for their daily consumption.
22. Government consumption
Represented by the demand for goods made daily by the government through public spending.
23. Gross fixed capital formation.
Represented by the fixed assets, machinery and equipment that companies acquire each year to renew or increase their production capacity.
24. Variation in inventories
Represents the accumulation of inventories between one year and another and establishes, together with total production, the response capacity of public and private demand and gross capital formation in the acquisition of goods produced during the year.
25. Exports
Represents the excess production capacity of satisfiers not demanded in the national market and that can be placed in the world market.
26. Total final demand
It is the sum of the intermediate demand plus the final demand that must be produced in the country to meet internal and external, intermediate and final consumption.
Starting from a matrix of input product at producer prices, a matrix of technical coefficients can be constructed that allows estimating for each line the final demand required by the domestic and foreign market according to the growth plan of the gross domestic product and consequently, intermediate and total demand.
In the same sense, it will make it possible to estimate the amount of inputs necessary for each branch to achieve this objective and the necessary added value sufficient to increase the hiring of personnel, taxes and the profits of entrepreneurs.
Long-term planning will allow to establish the annual growth rate in the Gross Domestic Product in accordance with the growing hiring of labor.
Do
The last reproduction of the input-product matrix by INEGI was in 2003, however, its original construction has not been carried out since 1980, when Banco de México took on this task. The six-year Global development plans indicate what must be done but do not measure quantifiable objectives and goals that commit society and political actors to their fulfillment. They are promises to affirm that there is a plan, but unlike the budget that is followed to the letter in the use of funds to be spent in one way or another, the plan does not have a commitment from anyone to fulfill it.
They all promise but due to lack of leadership, no one assumes responsibilities.
The achievement of objectives is only possible if all sectors of production are involved and quality production goals are set for them to serve internal and external markets with guaranteed consumption. It is not necessary for the government to be an entrepreneur, only the rector of the process that makes the growth of national economic activity feasible with the participation of all social groups.
The strongest companies are not necessarily led by shareholders, but by managers (CEOs) who set goals and objectives that go beyond the borders of a nation.
A strong economy needs leadership that must be in the hands of the state.
It is not possible to assume that in a market of free competition it is irresponsibly allowed to assume that markets will be regulated in a natural and stable way without the intervention of the state. Likewise, the use of the budget to favor only a sector of the population will progressively throttle growth. Companies can have a greater ability to survive if they have effective demand, however this is only possible if greater distributive equity and continuous growth of employment sources are achieved.
The input-product matrix can be started with the current Gross Domestic Product (2006) and its growth (individual production) estimated for next year in each of the branches of activity (and in each of the companies). Establish commitments with all the actors involved, giving priority to production with national resources and limiting imports of products that can be manufactured in the country. Support companies that undertake to substitute imports of consumer and intermediate goods and gradually adjust the current distortions of the national economy to a healthier scheme in the consumption of mainly national products manufactured with Mexican labor.
An exchange rate policy in accordance with the current problem would yield excellent benefits in employment and domestic consumption.
check
The input-output matrix estimated from the 1950s to the 1980s assumed imports only to meet the needs of the sectors in the production process such as intermediate goods and capital goods of limited or no production in the country. The import of consumer goods was not contemplated to avoid generating internal unemployment. Likewise, surplus production, not required in the country, was destined abroad.
The comparison of the input-output matrix with the characteristics indicated and the current economic activity, presents really serious distortions. Regarding imports, the purchase abroad of consumer goods, intermediate goods and capital goods has increased in quantities that far exceed merchandise exports. There is a significant deficit in the trade balance due to the insignificance of exports compared to the increasing imports of merchandise.
The maquila service to companies from foreign countries that may be established in the interior of the country or in markets of the country of origin has appeared, apart from a healthy activity in the country. This phenomenon provides the nation with sufficient foreign exchange income to balance the deficit in the balance of payments, however it has pushed a significant number of workers from towns and cities, first on the border and later from all parts of the nation, to emigrate to engage in these activities, mainly outside the country.
Act
The public sector has a long way to go, mainly because it lacks competition. Whoever rises to power becomes an absolutist being with the ability to exercise power as he sees fit. Social pressures can contribute to the balance against centralist power, however, the masses are at the expense of power groups and can be manipulated at will with the offer of gifts and subsidies that are generally part of the public sector budget.
This stage involves evaluating errors to correct them and make things better and better, however, the refinement in the processes has not been aimed at protecting nationalism and taking advantage of the benefits offered by a globalized market through a process that implies improvement. keep going. It seems that each six-year term we start again generally questioning the work of the previous rulers. The governments in turn only wait to see what occurs to them during their administration and what benefits they can obtain for themselves or for their groups.
Conclusions.
- Quality, efficiency and effectiveness must also prevail in public services Public institutions are the governing bodies of private companies, so they must work at least at the same pace The benefits generated by investments for private companies are also necessary for companies in search of their growth and continuous improvement… The application of the PDCA method in public administration is decisive to advance and grow. A vision of the nation must be established and all public institutions fight to achieve it. There must be a vision of the nation above the six-year goals so as not to interrupt the process of continuous growth. In a nation with growth and abundance, people are more busy working and spending than causing social conflict.
Bibliography:
Fayol, H. (1969), Principles of Industrial and General Administration, El Ateneo, Buenos Aires.
Cantú DH (2001), Development of a Culture of Quality 2nd. Edition, McGraw Hill, Mexico.
Leontief, W. (1985), Economic input-output analysis, Orbis, Barcelona, Spain.
INEGI (1980), Mexico Product Input Matrix, reduction to 18 sectors.
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The control consisted of verifying and monitoring the operations so that they were carried out according to the rules and orders issued. The control had to be carried out in a timely manner and followed by sanctions, otherwise it was not effective. (Farol, H. 1969, p. 143-163)
Cantú DH 2001, p. 225-254.
Leontief, W. 1985.
INEGI (1980)
