In recent times in Cuba significant changes have occurred in all spheres of life. Material production and services have not been exempt from these transformations and business management is closely linked to them, influenced of course by the changes in the micro and macro environment of Cuban companies.
On the one hand, the centralized system of planning of the economy is affected, since the state does not have the means to guarantee or ensure the material supply required by the possible plans given in the directive figures, so a certain degree of decentralization in business activity. On the other hand, the non-existence of own capital in state-owned companies, influences the need to find new sources of said capital, thus giving rise to the so-called mixed companies (Cuban-foreign capital) but with this, not only new financial capital arrives, but also, soft technology (know-how) carried by foreign entrepreneurs. This new technology includes production management systems, which, when applied to certain companies and mixed entities,They put national companies at a disadvantage (of course the latter are not prepared).
In this work a study of the economic-financial situation of the textile-rubber footwear company «Humberto Lamothe» is carried out for a horizon of 9 months and, then, based on the difficulties detected with inventory management, a set of of tools to improve production logistics with a customer-supplier approach, but without losing sight of the comprehensive approach to logistics management.
Development
Characterization and classification of the production system.
The "Humberto Lamothe" Textile-Rubber Footwear Company produces different styles of tennis for men, women and children, and only one other in the country has these characteristics. Its foreign competitors are a constant danger, since the similar products they offer exceed that of the company in presence, quality and price, affecting their sales. However, the large store networks throughout the territory offer possibilities for the organization to survive in this highly competitive environment.
The characterization and classification of the production system is of great importance as it defines the techniques and methods to be used in production management. Table I shows a summary of the criteria of various authors and the asterisks represent the classification given to the system under study.
Table I. Productive system classifications
| Criterion | Type of system | Authors |
| - Type of process flow
- Material flow - Types for manufacturing - Realization of the production volume |
- Line (continuous)
- Intermittent (per batch) * - By project (unique or singular) |
Schroeder (1992)
Diaz (1993) Salvendy (sa) Ottina (1988) Velázquez (1995) |
| - Type of customer order
- Relationship with the client |
- By order *
- For inventory (against warehouse) |
Schroeder (1992)
Arjona Syria (1979) Dilworth (1989) |
| - Types of production | - In mass
- Online - By batch * |
Maynard (1984) |
| - Time of use of the productive equipment
- Process type |
-Intermittent or discrete (sequential or manufacturing) *
- continuous |
Voris (1970)
Alford (1972) Arjona Syria (1979) Mallo (sa) Dilworth (1989) Ochoa Laburu (sa) |
| - Number of productive plants | - Mono-plants
- Multi-storey * |
Arjona Syria (1979) |
| - Response to demand | - For existence
- According to your wish * - Assembly according to request |
Ottina (1988) |
| - Mode of manufacture of the products | - Part by part *
- By process |
Voris (1970)
Ottina (1988) |
| - Terms of sale | - Custom
- About catalog * - Against request * - Against stocks |
Ochoa Laburu (sa) |
| - Repeatability of production | - Non-repetitive production
-Repetitive products or with repetitive demand * |
Ochoa Laburu (sa) |
| Active | January | Febre% o | March | April • May | June | July | August | Sept. | |
| Acù.circula
tea
0.1 |
7.2
14,. '12, 9 0.3 |
5.1
8.9 13.0I 72.96 o, o4 |
2.01
11.81 _0.04 0.04O7.71 10.98 11 (Ö7 0.02 |
4.71
7.0Í 13.85 0.09 |
4.68
7.19 15.24 0.5 |
5.38
10.29 14.89 0.55 |
9.24
23.99 10.27 0.09 |
||
| Fixed asset | 22 | 22 | 2. 3 | 2. 3 | 2. 3 | 24 | 25 | 26 | 2. 3 |
| Others | eleven | 13 | 14 | fifteen | fifteen | 19 | twenty-one | twenty-one | 18 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| passive | |||||||||
| Circulating country | 2. 3 | 24 | 24 | 25 | 26 | twenty | twenty-one | 19 | 17 |
| Others | fifteen | fifteen | eleven | 12 | eleven | fifteen | fifteen | 16 | 14 |
| Own capital | 62 | 61 | 65 | 62 | 63 | 65 | 64 | 65 | 69 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| FM | 44 | 41 | 39 | 37 | 36 | 37 | 33 | 3. 4 | 42 |
It can be seen that:
- In no case does the total receivable (debts) exceed 50% of the total liabilities and the short-term debts represent an average of 22% with a tendency to decrease, in this case the net worth predominating. favorable, that is, the company has working capital or working capital that allows it to make certain investments in the process.In total assets, current assets stand out and inventories, mainly, of finished products predominate. motivated by the difficulties that the company has presented to commercialize its products Accounts receivable show a fluctuating behavior with a high percentage, negative for the company because it refers to the fact that the entity presents difficulties with the collection management of its debts. customers.Analysis of ratios.
The important thing in the analysis of the ratios is not their specific value, but their behavior and evolution over time. Although a limit can be set for some ratios, in general, to make a judgment it is necessary to compare them with the values they have taken at other moments in time, to see how the economic-financial structure of the company evolves, or else, For example, with those of other similar companies or with the industry average. Table III shows the set of calculated ratios and the graphic representation of some of them is shown in graphs 1, 2, 3 and 4.
Table III. Ratios calculated for the economic-financial analysis of the company.
| RATIOS | January | Febr. | March | April | May | June | July | August | Sept. |
|
1.25 | 1.24 | 2.33 | -0.58 | -0.881 | -1,035 | -3,546 | -5,095 | 7,931 |
|
0.043 | 0.132 | 0.202 | 0.252 | 0.247 | 0.325 | 0.363 | 0.436 | 0.574 |
|
0.29 | 0.094 | 0.115 | -0.023 | -0.026 | -0.026 | -0.077 | -0.094 | 0.115 |
|
0.96 | 0.94 | 1.77 | -0.44 | -0.44 | -19.29 | -3.24 | -5.49 | 14.67 |
|
0.026 | 0.159 | 0.25 | 0.364 | 0.495 | 0.654 | 0.811 | 1.05 | 1,256 |
|
1192.3 | 377.36 | 364.00 | 332.42 | 307.00 | 278.29 | 262.64 | 232.38 | 218.15 |
|
7.65 | 25 | 39.85 | 53.16 | 68.62 | 87.20 | 113.21 | 130.21 | 138.30 |
|
1,231 | 1,242 | 1,395 | 1,473 | 1,401 | 1,348 | 1,461 | 1,322 | 0.936 |
|
68.16 | 43.66 | 25.65 | 36.09 | 41.91 | 22.46 | 22.57 | 30.46 | 66.79 |
|
2,894 | 2,692 | 2,609 | 2,407 | 2,381 | 2,885 | 2,497 | 2.72 | 3,469 |
|
0.559 | 0.587 | 0.364 | 0.333 | 0.183 | 0.136 | 0.116 | 0.146 | 0.32 |
|
0.37 | 0.389 | 0.369 | 0.398 | 0.418 | 0.301 | 0.337 | 0.299 | 0.243 |
|
0.245 | 0.246 | 0.175 | 0.181 | 0.182 | 0.234 | 0.236 | 0.242 | 0.203 |
|
0.615 | 0.635 | 0.544 | 0.579 | 0.6 | 0.535 | 0.573 | 0.541 | 0.440 |
|
0.602 | 0.613 | 0.679 | 0.687 | 0.696 | 0.562 | 0.588 | 0.553 | 0.545 |
Graphs 1
Economic profitability
Graphics 2
Asset turnover and profit margin
Graph 3
Solvency and Liquidity
Graph 4
Average inventory term
Analyzing the results, it can be concluded that:
- Profitability grew in March, but then the company was unprofitable until September where it increased sharply by 13%. The profit margin tends to decrease and, although asset turnover increases, its weight is not strong enough to compensate for the behavior of the margin. profit, which affects the profitability of the company. The behavior in September was favorable for both. The indexes of turnover and utilization of working capital present a good trend. Solvency remains above two, apparently favorable, since it is masked by high levels of inventories, hence liquidity reflects the difficulties that the company presents for the payment of short-term debt.The average term of the inventory, although it tends to decrease, is very high, which affects the purchasing functions,production and inventory control.
In general, the company presents difficulties that affect its profitability and, therefore, its growth. The economic profitability of the company can be improved by increasing the margin on sales and reducing the current assets, following the strategies offered in Table IV.
Table IV. Objectives and strategies to increase economic profitability.
| goals | Increase margin on sales | Decrease asset
circulating |
|
| Increase sale price | Decrease average cost | ||
|
Strategies |
.Differentiate the product
Segment the market .Change the sale price Positioning Value analysis |
.New distribution circuits
.Technological innovation Provisioning review Productivity improvement |
. Improve stock management
.Reduce delivery times .Reduce accounts receivable .Improve liquidity management .Increase productivity |
Application of tools to improve production logistics
The results of the economic-financial study show the difficulties that exist with inventory management. Hence, we focus our attention on showing and applying the necessary tools to, in this particular case, strengthen production logistics in the company under study.
It is about knowing what must be supplied and / or manufactured, in what quantity and at what time to meet the established commitments.
It is necessary to know if the demand is dependent or independent. The goal in independent demand inventory management with reorder point rules is to provide a high level of customer service. On the other hand, the goal in Demand Demand Inventory Management with MRP is to support the master production schedule.
For the analysis of materials management, the following techniques were applied:
MRP I: For external supply management (suppliers).
Kanban: For the movement of materials in the sewing area due to the characteristics that it presents to achieve balance in the flow and reduce inventories.
The kanban system is the method of approval for production and material movement in the JIT system. Kanban in Japanese language, means a marker (card, symbol, plate or other device) used to control the sequence of work throughout a sequential process.
The purpose of a kanban system is to signal the need for more parts and to ensure that those parts are produced in time to support subsequent manufacturing or assembly. This is done by pulling parts to the final assembly line. (Schroeder, 1992)
Reorder point: For the finished products warehouse, then, although the system produces to order, it still maintains characteristics of the system against the warehouse and, through this technique, the inventories of finished products can be reduced (difficulty presented by the entity).
The aforementioned materials management techniques have their own application characteristics but are not exclusive, and their instrumentation allowed the company to improve its management in this regard. To achieve coordination between them, the principle of customer-supplier relationship was followed, so the final customer within the company will be the warehouse and its supplier the assembly process of the Czech line, which in turn is the customer in the area of sewing and so on until reaching the raw material warehouses whose supplier is abroad.
The study was carried out for footwear with the highest demand and, at the same time, provides the highest income to the company, its application being extensible to the rest of the assortments produced by the organization.
Results of the application of MRP I, Kanban and reorder point. (Nogueira Rivera, 1997)
MRPI
As initial information it is required to know the list of materials (BOM), the master production plan and the inventory levels. We worked with the five raw materials with the highest frequency of stock in the warehouse, while all the raw materials and resources used for the formation of the final product did not lose the same degree of influence. For the lot sizes, the transportation lot size was taken into account, considering the transportation capacity and the production rate of the productive subdivisions. As an example, Table V shows the results of the application of this tool for the product with the highest demand in the company.
Table V: Application of the MRP for the final product.
| Tennis Article
«Bato Alto» |
H.H | 01 | 02 | 03 | 04 | 05 | 06 | 07 | 08 | 09 | 10 | eleven | 12 | 13 | 14 | fifteen | 16 |
| Gross Needs | 3553 | 3553 | 3553 | 3553 | 4980 | 4980 | 4980 | 4980 ' | 3392 | 3392 | 3392 | 3392 | 3553 | 3553 | 3553 | 3553 | |
| Stock in stock
Pending to receive |
950 | ||||||||||||||||
| Expected stocks | 97 | 44 | 91 | 38 | 58 | 78 | 98 | 18 | 26 | 3. 4 | 42 | fifty | 97 | 44 | 91 | 38 | |
| Net needs | 2603 | 3456 | 3509 | 3462 | 4942 | 4922 | 4902 | 4882 | 3374 | 3366 | 3358 | 3350 | 3503 | 3456 | 3509 | 3462 | |
| Receipt order | 2700 | 3500 | 3600 | 3500 | 5000 | 5000 | 5000 | 4900 | 3400 | 3400 | 3400 | 3400 | 3600 | 3500 | 3600 | 3500 | |
| Issue order | 3500 | 3600 | 3500 | 5000 | 5000 | 5000 | 4900 | 3400 | 3400 | 3400 | 3400 | 3600 | 3500 | 3600 | 3500 |
With this, it is possible to reduce both the inventory levels and the time they remain in the company, since the management is carried out to support the production programs, which in turn, are based on the sales plans. However, the type of material, its origin and function must be considered.
Kanban.
To control container movement, there are two main types of kanban cards, (Moden, 1983) production cards and movement or withdrawal cards.
The number of containers required to operate a work center is a function of the demand rate (D), the size of the container (C) and the circulation time of a container (T), and can be obtained by making use of the following expression:
n = D. T (1 + B) (1)
C
where B is the admissible coefficient of inefficiency of the system.
This technique was applied to the mix of products that the area processes in one day with the following information:
- Initial stock: 1 250 pairs
- Average daily demand (pairs): 646 (high bath) + 300 (hunter) + 436 (laura) +
45 (toqui) = 1427 pairs / day
- The box consists of 224 pairs (56 of each model)
- The time or cycle of a box is 3.3 hours on average (includes transport, waiting, filling and operations).
Substituting in expression (1) and considering an inefficiency coefficient of 10%, it is obtained that approximately 3 boxes are needed. As the system is of two cards, the total of kanban to manipulate will be 6. The content of the kanban cards could be the one shown in figure 2.
Kanban card representation.
Number of parts …………………….. 56 Previous process: View auction
Part name ……….. Crescent Subsequent process: Closing
| Box capacity | Type of box | Movement number |
| 240 | Paperboard | 4 of 12 |
Withdrawal or movement
kanban Number of parts …………………….. 56 Process: Sewing
Part name …….. Sight auction
Inventory location
to store ……………………….. Z10
Container capacity …………. 240
production kanban
The units that are consumed in a complete cycle respond to:
DT = 1 427 (0.41) = 585 pairs / cycle
The safety inventory is considered to be 10% of the units that are consumed in a cycle, then the maximum inventory at the entrance of the sewing area must be 644 pairs. Obviously, this considerably reduces the inventory, which is normally held at around 1,300 pairs.
The sewing area will have to work according to the demand of the Czech line. If the production of the latter stops, so will its supplier and, consequently, the mill-calender area.
Conclusions
With the state of the art of the subject studied, it is possible to synthesize a great variety of criteria (14) that make it possible to classify a productive manufacturing system, an extremely important aspect for the study of production management and that allowed us to conclude that The analyzed system produces intermittently, against order, although it maintains some characteristics of the production against warehouse.
The economic-financial study carried out in the entity detected, as a fundamental problem, the lack of liquidity, mainly motivated by the high levels of inventories that are owned, which remain in the company an average of 396 days.
A considerable reduction in stocks is achieved with the implementation of the inventory management techniques applied in the above case.
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