Time-Driven Activity-Based Costing in the Assembly Industry

Costs and their determination play a critical role in all manufacturing companies. The traditional costing system has received criticism resulting from the arbitrary allocation of indirect manufacturing costs. As an important initiative to address its weaknesses, new costing methods such as the Time-Driven Activity-Based Costing (TDABC) have emerged. Unfortunately, up to our knowledge, no investigations have been applied in analyzing assembly companies thoroughly nor considering all the processes necessary to obtain the final products. This article explores the TDABC application in the assembly industry through comparison with traditional volume-based costing by focusing on manual and semi-automatized production. Since the research is descriptive, a multiple-case study design was implemented in the assembly of televisions, motorcycles, and printed circuit boards. The developed methodology allowed determining the existence of factory overhead and direct labor cost variances between two different cost accounting systems, which also affected the unit cost of the products. Findings also highlight the benefits of TDABC application in the assembly industry, along with the shortcomings and future potential of research in this area

Time-Driven Activity-Based Costing in the Assembly Industry

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Leading change: a multiple-case study of leadership practices in Latin American universities

Universities have to develop in a highly complex environment, which shapes their structural and organisational characteristics. In this context, academic leaders not only have the challenge to forecast future trends but also to implement the changes needed to achieve this future. The specific causes of change success or failure have been a topic of much debate in the organisational literature. One of the lessons learned by researchers related to effective change is that leadership is a key element to achieve successful change. Although the effects of leadership on the results of change initiatives are still not well understood, research provides support for a positive link between leadership and effective implementation of change. In fact, some researchers posited that good management is a sine qua non condition to get a successful change, but leadership is what really makes the difference between the success and failure of change. However, more empirical research is needed to understand the actual practices performed by leaders.Universities have to develop in a highly complex environment, which shapes their structural and organisational characteristics. In this context, academic leaders not only have the challenge to forecast future trends but also to implement the changes needed to achieve this future. The specific causes of change success or failure have been a topic of much debate in the organisational literature. One of the lessons learned by researchers related to effective change is that leadership is a key element to achieve successful change. Although the effects of leadership on the results of change initiatives are still not well understood, research provides support for a positive link between leadership and effective implementation of change. In fact, some researchers posited that good management is a sine qua non condition to get a successful change, but leadership is what really makes the difference between the success and failure of change. However, more empirical research is needed to understand the actual practices performed by leaders. The article analyses what leadership practices perform the leaders and which of them contributes to successful leadership in university change processes. To this end, a qualitative multiple-case study was utilised. A multiple-case study design has all the advantages of a single-case design; but using several case studies, this replication enhances the validity and credibility of the findings. Six change processes in two universities were analysed. Data collection, in each case, was accomplished through direct observation, analysis of secondary documents and in-depth semi-structured interviews. Data analysis was carried out in two steps: first, a within-case analysis, and then a cross-case analysis. Matrixes were built in order to organise and summarise the data. To ensure the quality of the research, member checking, and data and researcher triangulation were performed. The results showed three important aspects of successful leadership. Firstly, leaders have to maintain good relationships with the stakeholders, which could be achieved by transformational leadership behaviours. Secondly, they have to be able to manage the administrative aspects. And finally, they have to hold the capacity to implement changes that solve the “wicked problems” of the university. Nevertheless, it was also found that leaders, most of the time, have ‘no room to lead’ and/or to learn how to make desired changes work. They are so busy complying with bureaucratic procedures that they have little time left to lead. Besides, most of the time, they are appointed without having the leadership qualities required and are rarely trained in the management of change in complex organisations such as universities. Taken together, these findings contribute to a better understanding of the leadership role to promote successful change in Latin American Universities.Valenci

Time-driven activity-based costing in the assembly industry

Costs and their determination play a critical role in all manufacturing companies. The traditional costing system has received criticism resulting from the arbitrary allocation of indirect manufacturing costs. As an important initiative to address its weaknesses, new costing methods such as the Time-Driven Activity-Based Costing (TDABC) have emerged. Unfortunately, up to our knowledge, no investigations have been applied in analyzing assembly companies thoroughly nor considering all the processes necessary to obtain the final products. This article explores the TDABC application in the assembly industry through comparison with traditional volume-based costing by focusing on manual and semi-automatized production. Since the research is descriptive, a multiple-case study design was implemented in the assembly of televisions, motorcycles, and printed circuit boards. The developed methodology allowed determining the existence of factory overhead and direct labor cost variances between two different cost accounting systems, which also affected the unit cost of the products. Findings also highlight the benefits of TDABC application in the assembly industry, along with the shortcomings and future potential of research in this area

Modelo genérico de procesos para empresas de ensamblaje como estrategia de evaluación comparativa para la toma de decisiones

In a demanding market, companies need to manage their processes efficiently and properly to compete in the world of industry and achieve customer satisfaction. This article presents the creation of a generic model of assembly processes, an administrative model based on common operational, strategic, and support sub-processes carried out in assembly companies. For this purpose, the study took as a reference previous work carried out in three case studies, which allowed the diagramming of the model in a tool based on the Business Process Management methodology, BPM. The results were validated with assembly, strategic and support processes of related and not related products obtained from the literature to show that the processes of the generated model can have common as well as different sub-processes. These comparisons allowed analyzing and establishing ideas for improvement of the assembly processes.En un mercado exigente, las empresas requieren manejar sus procesos de manera eficiente y adecuada para competir en el mundo industrial y lograr la satisfacción de los clientes. Este artículo presenta la creación de un modelo genérico de procesos de ensamblaje y un modelo administrativo basados en subprocesos comunes tanto operacionales, estratégicos y de apoyo llevados a cabo en empresas de ensamblaje. Para este fin, el estudio tomó como referencia datos levantados en cuatro casos de estudio, pertenecientes al sector de televisores, tarjetas electrónicas, bicicletas y motocicletas, los mismos que permitieron la diagramación del modelo en una herramienta basada en la metodología de Gestión de Procesos de Negocio, BPM. Los resultados fueron validados con procesos operacionales, estratégicos y de apoyo de productos afines y no afines obtenidos de la literatura para mostrar que los procesos del modelo generado pueden tener subprocesos comunes como también diferentes. Estas comparaciones permitieron analizar y establecer ideas de mejoramiento de los procesos de ensamblaje

Inventory management for retail companies: a literature review and current trends

In recent years, the correct management of inventories has become a fundamental pillar for achieving success in enterprises. Unfortunately, studies suggesting the investment and adoption of advanced inventory management and control systems are not easy to find. In this context, this article aims to analyze and present an extensive literature concerning inventory management, containing multiple definitions and fundamental concepts for the retail sector. A systematic literature review was carried out to determine the main trends and indicators of inventory management in Small and Medium-sized Enterprises (SMEs). This research covers five years, between 2015 and 2019, focusing specifically on the retail sector. The primary outcomes of this study are the leading inventory management systems and models, the Key Performance Indicators (KPIs) for their correct management, and the benefits and challenges for choosing or adopting an efficient inventory control and management system. Findings indicate that SMEs do not invest resources in sophisticated systems; instead, a simple Enterprise Resource Planning (ERP) system or even programs such as Excel or manual inventories are mainly used.Quit

Management tools for process mapping and modeling in assembly industry

En un mundo altamente globalizado afectado por políticas económicas y una pandemia COVID-19 latente, las empresas necesitan organizarse o reorganizarse para lograr operaciones eficientes. La correcta gestión de las organizaciones ha llevado a sus administradores a adoptar modelos de gestión ingeniosos que orientan sus actividades hacia el cumplimiento de sus objetivos. Así, las herramientas de gestión se han presentado como una alternativa eficaz para el control de procesos y actividades. Según un estudio previo, las principales herramientas que permiten el mapeo y modelado de procesos son Business Process Management (BPM), Business Process Reengineering (BPR) y Event Process Chain (EPC). Este artículo analiza sus características a partir de la compatibilidad y afinidad con cuatro casos de estudio dedicados a la industria maquiladora utilizando este estudio previo. Además, se estudian las ventajas y desventajas de las tres herramientas relacionadas con la posible adaptabilidad en las cuatro empresas. Este trabajo utiliza matrices de calificación cualitativa, que responden preguntas específicas, determinan el potencial de mejora de la gestión organizacional y crean una metodología para mapear y modelar procesos.In a highly globalized world affected by economic policies and a latent COVID-19 pandemic, companies need to organize or reorganize to achieve efficient operations. The correct management of organizations has led their administrators to adopt resourceful management models that guide their activities towards fulfilling their objectives. Thus, management tools have been presented as an effective alternative to control processes and activities. According to a previous study, the main tools that allow process mapping and modeling are Business Process Management (BPM), Business Process Reengineering (BPR), and Event Process Chain (EPC). This article analyzes their characteristics based on compatibility and affinity with four case studies dedicated to the assembly industry using this previous study. In addition, the advantages and disadvantages of the three tools related to the possible adaptability in the four companies are studied. This work uses qualitative qualification matrices, which answer specific questions, determine the potential improvement of organizational management, and create a methodology for mapping and modeling processes.Ambat

Process mapping and modeling: a theoretical tool analysis

El desarrollo tecnológico y los continuos cambios en las políticas económicas han motivado la búsqueda de una mayor eficiencia en todos los niveles de una organización. Las organizaciones incluyen en su gestión mejoras que facilitan el control de sus procesos y actividades. En este sentido, las herramientas de gestión para el mapeo y modelado de procesos tienen una influencia positiva en el desempeño de las empresas ya que su inclusión fomenta la mejora y optimización de las actividades diarias. Sin embargo, existe evidencia de desventajas en la aplicación de algunos métodos adoptados. Este artículo analiza las debilidades y fortalezas de los modelos y herramientas de gestión disponibles para cubrir tres propósitos específicos. En primer lugar, explorar diferentes herramientas y modelos para el mapeo y modelado de procesos utilizados en la gestión empresarial. En segundo lugar, priorizar herramientas que permitan su integración con la norma ISO y los sistemas de costeo de procesos. Finalmente, establecer las ventajas y desventajas de las herramientas priorizadas, así como sus principales características. Para ello, este trabajo contempla un análisis teórico y comparativo de los métodos Business Process Management (BPM), Business Process Reengineering (BPR) y Event Process Chain (EPC).The technological development and continuous changes in economic policies have motivated looking for greater efficiency in all levels of an organization. Organizations include in their management improvements that facilitate the control of their processes and activities. In this sense, management tools for process mapping and modeling have a positive influence on the companies’ performance since their inclusion encourages the improvement and optimization of daily activities. However, there is evidence of disadvantages in the application of some adopted methods. This paper analyzes the weaknesses and strengths of the available management models and tools to cover three specific purposes. Firstly, exploring different tools and models for process mapping and modeling used in business management. Secondly, prioritizing tools that enable their integration with the ISO standard and process costing systems. Finally, establishing the advantages and disadvantages of prioritized tools, as well as their main characteristics. To this end, this work contemplates a theoretical analysis and comparison of the methods Business Process Management (BPM), Business Process Reengineering (BPR), and Event Process Chain (EPC)

Levantamiento de procesos como base para la aplicación de sistemas de costeo basado en actividades en empresas de ensamblaje

Today, the competitive world requires modern assembly industries to restructure their processes in order to maximize efficiencies. With evidence gathered in two assembly lines, one manual and the other semi-automated, this work proposes process mapping as a starting point for the application of a costing system based on activities. For this purpose, data are collected through empirical observation techniques and individual interviews. Afterwards, this information is transferred to process sheets under ISO 9001 standard and BPMN notation (Business Process Model and Notation) and analyzed by means of statistical techniques. The work concludes that processes mapping facilitates the application of activity-based costing systems, and processes optimization for a better performance of the organization.El mundo competitivo de hoy en día requiere que las industrias modernas de ensamblaje reestructuren sus procesos para maximizar eficiencias. Con evidencia reunida en dos líneas de ensamblaje, una manual y otra semiautomática, este trabajo propone el mapeo de procesos como punto inicial para la aplicación de un sistema de costos basado en actividades. Para este propósito, se recopilan datos a través de técnicas de observación empírica y entrevistas individuales. Posteriormente, esta información se transfiere a hojas de proceso según las normas ISO 9001 y notación BPMN (Business Process Model and Notation) y se la analiza mediante técnicas estadísticas. El trabajo concluye que el mapeo de procesos facilita la aplicación de sistemas de cálculo de costos basados en actividades y la optimización de procesos para un mejor desempeño de la organizació

Indicators to evaluate elements of industry 5.0 in the textile production of MSMEs

Textile MSMEs are going through a period of instability and greater difficulty in executing their operations due to factors derived from the pandemic, globalization, policies, and environmental and social needs. This is driving companies to abandon classic methods and turn to the use of innovative concepts as manners to promote sustainability and resilience. One of these concepts is Industry 5.0, which, according to the European Commission, focuses on sustainable manufacturing and operator well-being and complements Industry 4.0 as it seeks to improve factory efficiency through technology by placing the human being at the center of development. At the same time, it minimizes environmental and social impacts and enhances resilience. Aware that implementing these new trends is a challenge for MSMEs, this study contributes to the generation of indicators to evaluate elements of Industry 5.0 in the textile production of MSMEs, supporting the development and implementation of strategies focused on this area. The construction of the set of indicators is based on a 3-phase framework that consists of doing a systematic literature review, selecting the indicators by a process of analysis and comparison, and expanding their characteristics through elaborating data sheets. As part of the results, 172 indicators completed a rigorous selection and validation process. These will serve as the basis for developing sustainable, resilient, and human-centered production models that can be carried out in future researchMant