Understanding Social Organizations and Business Structures
Social Organization
It is a legal entity with the capacity for specific purposes, stable and formally structured in such a way that allows the effectiveness of group work in achieving its business objectives as an institution and organization.
Company
The company was founded to meet the needs of society and satisfiers to create a fee to offset the risk of investors. In the company, the human factor is decisive, and the administration provides the grounds for harmonizing the many interests of shareholders, directors, employees, workers, and consumers.
Definition:
It is a social organization that performs a set of activities and uses a variety of resources (financial, material, technological, and human) to achieve certain objectives.
Undertaking
It is a legal unit, economic negotiation that is the basis of its life because it buys and sells. Besides that, it integrates and organizes resources, either its own or others, characteristic of a:
Dictionary of the Spanish Royal Academy
An entity composed of labor and capital as factors of production and dedicated to industrial, commercial, or service, profit, and prosperity for employees.
Jay Anthony
They are institutions for the effective use of resources by a government or board, which is achieved by maintaining and increasing shareholder wealth and providing security and prosperity to the employees.
Petersen and Plowman
Activity in which several people exchange something of value, whether it’s goods or services for profit or mutual benefit.
Lourdes Munch
Social group in which, through the administration of capital and labor, goods are produced and/or services aimed at meeting the needs of the community.
Small Business
It is an independent body created to be profitable, whose annual sales exceed a certain threshold and is formed by a number of people that does not exceed a certain limit.
Company
Individual Property
It is when the company belongs to one person, who assumes all responsibility and meets the obligations of the same name.
Famiempresas
It is a new type of farm where the family business is the engine, becoming a productive unit.
Characteristics of the Company
Seeks compensation for goods or services provided.
“It is a legal unit.”
“It operates pursuant to existing law (tax, labor, environmental, health, etc.).”
“It sets targets.”
“It is an economic unit.”
“Negotiation is the basis of its life because it buys and sells.”
– Integrates and organizes resources, either its own or others.
It uses administration to operate its own system.
“Runs risks.”
– Investigates the improvement of its products, services, and their processes.
Classification of Companies
By turn
By economic sector
On the origin of their capital
By size
For Your Turn
Industrial:The industrial enterprises are engaged in the extraction and processing of renewable and non-renewable natural resources, farming, and manufacturing of capital goods and consumer goods.
Commercial: These companies are engaged in the purchase and sale of finished products, and distribution channels are wholesale markets, retailers, or brokers.
Service: Service companies
intangible and can offer products
take profit or nonprofit
By Economic Sector
Agriculture:Agriculture,
Forestry and fisheries.
Industry:Extractive and processing.
Services:Trade, restaurants, transportation, communications, rental of premises, professional, educational, medical, government, and financial services.
The Origin of Its Capital
Public
Private
Transnational
Mixed
By Size
Micro:1 to 15 employees.
Small:16 to 100 employees.
Median:From 101 to 250 employees.
Large:More than 250 employees.
In Mexico, 93% of enterprises are micro or small.
Classification on the Objectives of the Company
Economic-Business:
Reward the risk that the capital invested by shareholders.
Keep the capital to present value.
Profits above the bank interest to distribute profits to investors.
Reinvest in the growth of the company.
Operation:
Investigate market needs to create competitive products and services.
Keeping your continuous improvement processes.
Open and develop suppliers.
Paying employees for services rendered.
Research and develop new technology.
Develop job skills in their staff.
Moral growth and internal employees.
Social:
Meeting the needs of consumers in the market.
Import substitution and, in some cases, generate foreign exchange and technology.
Provide employment.
Paying taxes.
Cover, by public or private social security.
Protecting the ecology.
Production:
Product engineering.
Plant engineering.
Goods in process.
Storage.
Functional Areas of the Company
They are the most important activities in the company, through which goals and objectives are achieved.
Marketing:
Advertisement
Price
Plaza
Product
Finance:
Financing
Comptroller
The Human Factor:
Training
Personnel selection
Wages and salaries
Industrial hygiene.
Background of Quality
Code of Hammurabi
The Second World War
Man to build his weapons, preparing their food and clothing manufacture its product features notes and then tries to improve.
Evolution of the Concept of Quality
Quality is
Fully meet customer needs.
Meet both external and internal customers. Be highly competitive. With continuous improvement.
Characteristics of Quality
¨ Meeting customer expectations and then some.
¨ Raising customers’ needs.
¨ Ensure products and services with zero defects.
¨ Doing things right the first time.
¨ Designing, producing, and delivering a product with total satisfaction.
¨ Produce an article or service according to established standards.
¨ Provide immediate response to customer requests.
¨ Smile despite adversity.
¨ A category always aimed for excellence.
¨ Quality is not a problem, a solution.
The Concept of Quality by:
Edwards Deming: “Quality is nothing more than a series of questions towards continuous improvement.”
Dr. J. Juran: Quality is “fitness for use to meet customer needs.”
Kaoru Ishikawa defines quality as: “Develop, design, manufacture, and maintain a quality product that is most economical, useful, and always pleasing to the consumer.”
Rafael Picolo, CEO of Hewlett Packard: define “Quality, not as an isolated concept, nor is achieved from one day to another, rests on strong values that occur in the environment, as well as others that are acquired with effort and discipline.”
With the above, we can conclude that quality is defined as:
“A continuous improvement process, where all areas of the company are actively involved in the development of products and services that meet customer needs, thereby achieving greater productivity.”
William Edwards Deming
(October 14, 1900 – December 20, 1993). American statistician, university professor, author of texts, consultant, and broadcaster of the concept of total quality.
Quality Resources
Deming’s ideas are reflected in the Fourteen Points and Five Evils of Management Deming.
The 5 Evils of Management
Lack of constancy of purpose
Emphasize short-term gains and immediate dividends
Evaluation of performance, merit rating, or annual review
Mobility of the main administration
Managing a company based solely on visible figures
Joseph M. Juran
Their contributions are the basis for the creation of Total Quality Management in Japan.
Quality Resources
A) Theoretical Foundation
“Whenever there is a chain
-In – Out. At any stage of a process, the output (product) becomes the input (input) of the next stage.
Any activity plays a triple role:
Provider – Processor – Customer Service
Quality management is done by means of a trilogy:
· Quality Planning
· Quality Control.
Improves quality.
is called the Father of Quality
It requires the establishment of common units of measure for assessing quality.
You need to establish means (“sensors”) to assess quality based on these units of measurement.
B) Methodology to Implement Quality
Juran speaks of “Quality Management Across the Enterprise” (GCTE). This is defined as a systematic approach to setting and achieving quality objectives throughout the enterprise.
Juran proposed the stages are:
1. Create a quality committee.
2. Develop quality policies.
3. Establish strategic goals of quality to meet customer needs.
4. Planning to meet objectives.
5. Provide the necessary resources.
6. Establish controls to evaluate performance against the objectives
· Common Units of measurement for assessing quality.
· Means “sensors” to evaluate.
7. Establish quality audits.
8. Develop a standardized reporting package.
Kaoru Ishikawa
The 7 Basic Tools of Quality Management
1. Elaboración flow chart of the process (what is done).
2. Gráficas (how often is done).
3. Histogramas (graphical view of the variation).
4. Análisis Pareto (classification problems).
5. Análisis of cause and effect (causing problems).
6. Diagramas dispersion (defining relations).
7. Gráficas control (measurement and control of variation).
In 1943, developed the first diagram to advise a group of engineers. The Cause and Effect Diagram is used as a systematic tool for finding, selecting, and documenting the causes of variation in quality in production, and organize the relationship between them.
It was named as the Father of scientific analysis.
Ishikawa Quality Principles
Some of the key elements of their philosophies are summarized here:
1. La quality starts with education and ends with education.
2. The first step in quality is meeting the needs of customers.
3. The ideal state of quality control occurs when no longer required inspection.
4. Eliminar the root cause and not the symptoms.
5. The quality control is the responsibility of all employees in all areas.
6. No confuse means with objectives.
7. Ponga quality in the first place and turn your view to the long-term profit.
8. La marketing is the input and output quality.
9. La top management must not show anger when his subordinates were present facts.
10. 95% of a company’s problems can be solved with simple tools for analysis and troubleshooting.
11. Those who do not have data dispersed information (i.e., variability) are false.
Theoretical Foundation
The property generates quality control or quality services in line with the requirements of consumers.
We must all promote the company and participate in quality control, including both senior executives and all divisions of the company and all employees.
The Total Quality Control is achieved when you get a complete revolution in the entire organization. This revolution is expressed in the following categories:
1. The first is quality, not short-term profits.
2. The orientation is towards the consumer, not to the producer. Think from the perspective of others.
3. The next step in the process is your customer: you have to break down barriers of sectionalism.
4. Use of data and numbers in the presentation: use of statistical methods.
5. Respect for humanity as a management philosophy: management fully participating.
6. Administration functional, teamwork between different departments or functions.
There are seven tools that constitute the basic statistical method. These are:
· Pareto Chart
· Diagram Cause – Effect.
· Stratification.
· Verification Sheet.
· Histogram
· Scatter Diagram
· Graphic and control panels.
Verify
It establishes the effects of realization.
Acting
Take appropriate action is:
B) Methodology to Implement Quality
Acting:
6. Take appropriate action.
Given the importance of quality criteria in the methodology promoted by Dr. Ishikawa, this includes the steps he recommends for these:
Teams:
1. Choose a theme (targeting).
2. Clarify the reasons for choosing this subject.
3. Assess the current situation.
4. Analyze (investigate the causes).
5. Establish corrective actions and put them into action.
6. Evaluate the results.
7. Standardize and prevent mistakes and repetition.
8. Review and reflect, to consider the remaining issues.
9. Planning for the future.
Statistical Methods
They are classified into three categories:
Elemental
Intermediate
Advanced
Qualitative rather than quantitative techniques used in the practice of quality tools.
Brainstorming
The survey
The interview
Flowchart
Selection matrix
Topics
Philip Crosby
A) Theoretical Foundation
All work is a process. This concept implies that each job or task should be seen not in isolation, but as part of an interrelated network in which it is multiplying the following trilogy:
· Provider and supplies they provide.
· Process done through the work of each person.
· Customers or users who receive the product or service.
The quality, defined as “meeting the requirements” is one of the principles proposed by Crosby.
Another principle states that “the system of quality is prevention, not correction.”
Crosby argues that: “The standard of performance is zero defects.”
Precursor quality defending
The performance standard is zero defects.
B) Methodology to Implement Quality
Philip Crosby has well-defined steps to be followed in an organization that is implementing Process for Quality Improvement (CQI).
1. Management commitment.
2. Equipment for quality improvement.
3. Measurement.
4. Cost of quality.
5. Awareness about quality.
6. Corrective action.
7. Planning a day of zero defects.
8. Education staff.
9. Setting targets.
10. Elimination of the causes of error.
11. Recognition.
12. Quality advice.
13. Repeat the entire process.
Basic Tools for Quality Control
Control Sheet
Histograms
Pareto chart
Cause and effect diagram
Stratification
Tools to ensure the quality of a factory
Control Sheet (Sheet data collection)
Histogram
Pareto chart
Cause and effect diagram
Stratification (Layering Analysis)
SCADTA chart (scatter diagram)
Control chart
Control sheet or data collection sheet, also called registry, serves to collect and classify information according to certain categories, by entering and recording their frequencies in the form of data.
In general, the data collection sheets serve the following functions:
Changes in distribution of goods produced variables (weight, volume, length, size, grade, quality, etc.).
Classification of defective items.
Location of defects in parts.
Check verification or maintenance.
Once it has set the reasons for collecting data, it is important to analyze the following issues:
The information is qualitative or quantitative.
Since data is collected and what type of document shall be.
How to use the information collected.
How to analyze.
Who is responsible for data collection.
How often will analyze.
Where will perform.
The most important objectives of the control sheet are:
Investigate distribution processes.
Defectives.
DTF.
Causes of effects.
Histograms
It’s basically presenting a series of measures classified and arranged, steps must be placed so as to form rows and columns.
The histogram is used to:
Get a clear and effective communication system variability.
Show the result of a change in the system.
Examine ways to identify abnormalities.
To compare the variability with the specification limits.
Pareto Chart
It is a tool used to prioritize the problems or causes that generated them. Pareto’s name was given by Dr. Juran in honor of the Italian economist Vilfredo Pareto (1848-1923).
Cause and Effect Diagram
Used to solve quality problems and is now widely used around the world.
Stratification
It is what classifies the data gathered on a quality characteristic.
The actual criteria for stratification are:
Type of defect.
Cause and effect.
Location effect.
Material, product, production date,
working group, operator, individual,
provider, plot, etc.
Scatterplot
It is the study of two variables, such as speed of the pinion and the dimensions of a part or the concentration and specific gravity.
These two variables can sail like this:
A quality characteristic and a factor that affects.
Two related quality characteristics, or
Two factors related to a single quality characteristic.
ISO 9000
Is a standard for systems quality management. The standard is published and maintained by ISO, while it is managed by external agencies for accreditation and certification.
What is the norm certifies meets the specifications of the product or service, not the popular concept of quality as objectively good.
With the ISO 9000 standards facilitate international exchange of goods in many markets is a requirement to negotiate, hence the interest of exporters to conform to the norm. To determine the need for its implementation must be analyzed case by case, with some expert advice.
To have a standard certificate will be asked to:
Write a quality manual to describe its quality system.
Document how work gets done in your organization.
Design and implement a system to prevent recurrence of problems.
Identify training needs of employees.
Calibrate measuring equipment and test.
Educate employees about how the system works quality.
Plan and perform quality inspections and internal audits.
Comply with other requirements of the rule, as necessary.