Research On Practical Cases of Companies That Improved Their Productivity

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TÉCNICA UNIVERSITY OF AGUASCALIENTES

STUDENT NAME:
Diego Roberto Bermúdez Velázquez UP190521
María Fernanda Medina Macías UP190385
Axel Alfredo Aguilera Avalos UP191001
Diego Alonso Martínez Pérez UP190682
Ana Gabriela Martínez López UP190064
Omar Alejandro Oseguera Juárez UP190764

NAME OF THE ACTIVITY: Research on practical cases of companies


that improved their productivity

INDUSTRIAL ENGINEERING
IND05A

Wednesday May 19, 2021

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INDEX

TÉCNICA UNIVERSITY OF AGUASCALIENTES ............................................................................... 1


INDEX ................................................................................................................................... 2
INTRODUCTION .................................................................................................................... 4
THEORETICAL FRAMEWORK .................................................................................................. 5
Research on practical cases of companies that improved their productivity ............................... 8
Mercado libre ....................................................................................................................... 8
• Background of the company ................................................................................ 8
• Current situation. Describes widely the 3 points of the process that
presents productivity problems .................................................................................. 8
• Strategies used to decrease / eliminate factors that inhibit productivity: ...... 9
• Results obtained when implementing the strategies ........................................ 9
Cadena Comercial OXXO, S.A. de C.V. .................................................................................. 10
• Background of the company: Type of company, product, clients, process,
etc. 10
• Current situation: Describes widely 3 process that presents productivity
problems. ..................................................................................................................... 10
• 3 Factors that inhibit productivity for each company: .................................... 10
• Strategies used to decrease / eliminate factors that inhibit productivity ..... 11
• Results obtained when implementing the strategies ...................................... 11
Obelie Pastelerías .............................................................................................................. 12
• Background of the company .............................................................................. 12
• Current situation: Describes widely 3 process that presents productivity
problems. ..................................................................................................................... 12
• 3 Factors that inhibit productivity for each company ..................................... 12
• Strategies used to decrease / eliminate factors that inhibit productivity ..... 13
• Results obtained when implementing the strategies ...................................... 13
PepsiCo .............................................................................................................................. 14
• Company Background: ....................................................................................... 14
• Current situation: Describe extensively the process that presents
productivity problems. For example: what is the process, how it is currently
carried out, what is its productivity, etc. .................................................................. 14

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• 3 Factors that inhibit the productivity of each company: explain how these
factors influence the current situation, with quantities or percentages. ............. 14
• Strategies used to decrease/eliminate the factors that inhibit productivity:
determine one or more strategies to increase productivity (for each factor). .... 14
• Results obtained by applying the strategies. Calculate the increase in
productivity by applying the strategies.................................................................... 15
Tesla Motors....................................................................................................................... 16
• Background of the company: ............................................................................. 16
• Current situation. Describes widely the 3 points of the process that
presents productivity problems: ............................................................................... 16
• 3 Factors that inhibit productivity for each company: .................................... 16
• Strategies used to decrease / eliminate factors that inhibit productivity ..... 17
• Results obtained when implementing the strategies. ..................................... 17
CONCLUSION ...................................................................................................................... 18
BIBLIOGRAFÍA ..................................................................................................................... 20

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INTRODUCTION
The importance of companies for the general welfare of society is due to their role in
increasing productivity. Thus, if we compare current living standards with those of a
few centuries ago, as well as the differences between the different countries, it turns
out that to a large extent these can be explained by the behavior of productivity, that
is, the quantity of goods and services. produced by one worker in one hour. In those
countries where workers can produce a large quantity of goods and services per
hour of work, a good part of the citizens can enjoy a high standard of living. In those
countries where the production system makes workers have a very low productivity,
the majority of citizens will have a low capacity to purchase goods and services. This
important relationship leads us to wonder about what are the factors that determine
the ability to produce more or less goods and services. In this sense the variables
The key is: having access to the best technology, having the right machinery and
tools, having well-educated and trained workers, having well-designed production
processes and systems in place, and having good managers.
When producing, the company incurs a series of costs that it will have to assess
properly so that the difference between the income it obtains and the costs is as
large as possible. In any case, the basic decision that every company must make is
the quantity to be produced and this depends on the sale price and the cost of
production.
The process that every company follows to determine the amount of product to place
on the market is guided by the desire to maximize benefits defined as the difference
between income and total costs.
Companies had to change their ways of organizing and doing business in order to
adapt to new requirements: personalized products, with shorter life cycles, of lower
cost and higher quality. These new requirements have caused an explosion in the
variety of products, incorporating a new requirement to existing automation systems.
Today, an industrial company must be agile enough to respond to the frequent
changes that the market presents with respect to the demand for its products. To
achieve this, it is important that each organization share a common product model
that covers all stages of the product life cycle.
In this paper, we will only address the product model with regard to the Bill of
Materials (BOM). A definition of BOM, the requirements of a BOM to support the new
production context and a first approximation of a model that responds to these
requirements will be presented.

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THEORETICAL FRAMEWORK
Problems with the productivity of companies arise from several factors such as the
lack of productivity in the work carried out by employees. Another factor that also
causes problems and lowers productivity is the lack of motivation, it can also trigger
other consequences such as increasing costs due to unjustified absences and high
staff turnover, in addition to affecting the image and reputation of the company.
A common mistake among companies, for example, is that it does not meet the
market requirements for its product. Usually, these failures are due to the lack of
imposition of quality standards during design and production, which increases the
defects in the products or causes them to not fulfill the functions for which they were
designed. This translates into decreases not only in productivity, but in sales, says
the document, which proposes as an alternative, that companies try to standardize
their processes and create controls to verify that those standards are being met.
Another problem is the loss in production times, which is due to the lack of planning
of its processes. In this regard, errors such as not supplying on time, not performing
preventive maintenance on the machines or the non-coordination of workers and
their work, translate into an increase in idle time, that is, wasted time that affects
compliance with due dates. delivery. In fact, a study by the Universidad de los Andes
concluded that among the factors that explain the increase in productivity of
companies, 65% corresponds to the internal efforts that each company can make.
METHODOLOGIES AND STRATEGIES USED TO INCREASE PRODUCTIVITY
• Invest time in training employees in new technologies
Permanently updated workers will give the company a competitive advantage. In
addition, they will motivate them in their work and prevent the best from leaving the
company. Many times, companies take for granted that employees know how to
handle technologies, and in turn, employees may not want to ask about their use for
fear of showing low knowledge. Even if your employees have basic knowledge, it is
important to train them to get the most out of the technologies.
• Internal communication
Both among workers and by managers to their employees. This strategy can
improve flexibility and promote work-life balance among company members. For
this, it would be convenient for meetings of no more than fifteen minutes to be held
to coordinate the team and find out their needs.
• Work organization
Hours of work are lost in all companies due to lack of organization or coordination
between departments. So, it would be convenient to establish workflows between
the different departments or work teams in order to improve coordination.

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Therefore, a list of tasks could be made with the deadlines determined for their
execution and define the common objectives of the company.

• The motivation
Motivating workers is an indispensable task for companies and that favors the work
environment in the company. For this, entrepreneurs must work for the emotional
and mental integration of their team, listening to their ideas and proposals so that
they feel involved with the company. Recognition, the possibility of a career plan in
the company and working conditions are some other factors that influence employee
motivation.
• Do not stay out of date
Both in the way of working and in the material. It is important not to let computers
and programs become obsolete, harming employee productivity and patience. In
addition, companies could improve business productivity with cloud services, which
allow users to work from anywhere via the Internet, whether from home with a
computer or anywhere else with a smartphone. Thus, the cloud favors remote work
and work flexibility, since corporate applications or documents would be in the cloud
and would also allow several people to be working on the same file at the same time.
Concepts
• Productivity:
There are many companies that do not pay the attention it deserves, although in
practice it can be essential for a business to achieve success.
• Efficacy:
It is the ability to carry out a desired, expected or desired effect. Instead, efficiency
is the ability to achieve that effect in question with the least possible resources or in
the shortest possible time.
• Machinery:
All machines and equipment for the production process of goods and services such
as: plant machines, iron trucks and other vehicles used to move raw materials and
finished items within the building (does not include tools).
• Production:
The fundamental activity carried out by every company is production, which consists
of the use of productive factors and intermediate inputs to obtain goods and services.
Production serves to bring a good or service closer and that it can satisfy the needs
of consumers.

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• Products:
A product is a thing or an object produced or manufactured, something material that
is made in a natural or industrial way through a process, for the consumption or utility
of individuals.
• Services:
It is the action or set of activities destined to satisfy a certain need of the clients,
offering an immaterial and personalized product.
• Maintenance
It is the procedure by which a certain asset is treated in such a way that the passage
of time, use or change of external circumstances does not affect it.
• Quality:
Quality is a property that a thing or object has, and that defines its value, as well as
the satisfaction it causes in a subject.
• Natural resources:
Those material goods and services that nature provides without alteration by the
human being; and that they are valuable to human societies for contributing to their
well-being and development directly (raw materials, minerals, food) or indirectly
(ecological services).

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Research on practical cases of companies that improved their
productivity
Mercado libre
• Background of the company:
Mercado Libre was founded in 1999 by
Marcos Galperin, the company took its
first steps when a team of entrepreneurs
joined the dream of revolutionizing e-
commerce in Latin America. It is a
leading e-commerce technology
company in Latin America and its
purpose is to democratize commerce
and money to impact the development of
the region.

Through its complete ecosystem comprised of Mercado Pago, Mercado


Shops, Mercado Libre Publicidad, Mercado Credito and Mercado Envíos, it
offers solutions for individuals and companies to buy, sell, advertise, ship and
pay for goods and services online. It currently has 12 million sellers and 55
million active buyers.

• Current situation. Describes widely the 3 points of the process that


presents productivity problems:
1) Inactive vendors, products that are not in stock. It affects the process
because it is a product that does not arrive, time and money is lost
because of not having the certainty of the seller.
2) The package designated for delivery, does not organize the addresses,
this causes the delivery to take longer, affecting the last stage of the
process.
3) The application and the website stop working, affecting the customer's
search, often losing sight of what they were going to buy, causing
inconvenience to the customer, thus affecting productivity.

• 3 Factors that inhibit productivity for each company:


1. Having inactive sellers with products that are no longer in stock, this causes
that the desired products are never delivered, causing the money to be
returned and search again with another seller.

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2. The package designated to deliver the products does not find the correct
addresses, the staff has to talk to the customer to receive indications of the
correct address, making the delivery more delayed.

3. Returns of money and products are very tedious and late, the seller almost
never agrees to return the product, causing disappointment to the customer.

• Strategies used to decrease / eliminate factors that inhibit productivity:


1) Detect inactive customers and delete their accounts or delete their old products,
as well as give preference to more active sellers and increase their exposure.
2) Have your own delivery service that is not external, update your mapping devices
in time, train staff and hire local staff who know the area.
3) Retain the money until you know that the customer is satisfied, if not, return the
cash and the respective product to the seller, in addition, allow the sale of original
products that the customer accepts.

• Results obtained when implementing the strategies.


1) A less delayed shipment, satisfies the customer by not waiting too long.
2) A correct delivery to the address on time and faster.
3) Guarantee to the buyer that he does not lose his money and that his products will
serve him.

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Cadena Comercial OXXO, S.A. de C.V.

• Background of the company: Type of


company, product, clients, process,
etc.

Oxxo is the largest chain of convenience stores in Mexico and Latin America,
owned by FEMSA, a subsidiary of FEMSA Comercio, S.A. de C.V. In oxxo
you can pay a variety of services, deposit to how many banxarias and the
company sells snacks, cookies, candy, ice cream, sweet bread, purified
water, soft drinks, alternative beverages and beer, Fruit and vegetables, eggs,
milk, bread, tortillas, tortillas, cold meats, oils, dressings, canned foods and
family beverages, cleaning supplies, detergents, toilet paper, personal care,
baby care, pets, disposables, ice, wines and spirits.
According to Coca-Cola FEMSA, the main segments include residential
neighborhoods, commercial offices and stores near schools, universities and
other types of specialized locations. In Mexico, approximately 60% of OXXO
store customers are between the ages of 15 and 35.

• Current situation: Describes widely 3 process that presents


productivity problems.
1) Lack of change and money to receive shipments from oxxo to oxxo.
2) Lack of personnel or not working adequately.
3) Failures in the oxxo system, preventing the sale of your products.

• 3 Factors that inhibit productivity for each company:


1) Lack of change and money to receive shipments from oxxo to oxxo, when you go
to withdraw money sent to you and there is not enough cash, you cannot withdraw
the money, and when you want to buy something and they do not have change,
sometimes money is lost.
2) Lack of staff or not working properly, employees who do not serve you because
they are doing something else or simply ignore the customer, it is a problem to sell
and lack of motivation.
3) Failures in the oxxo system, preventing the sale of their products, when the signal
or power goes down, the system is down and you can not buy, making the
establishment less productive.

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• Strategies used to decrease / eliminate factors that inhibit productivity:

1) To have a cash box with coins and another one with bills, with their respective
control, so as not to make a bad impression on the customer.
2) Motivate workers to serve the customer as well as recruit more staff to not neglect
any area.
3) Have an alternate power source or have an alternative software that allows to
continue with the activities even if the signal fails.

• Results obtained when implementing the strategies:


1) Enough money to change and not bother the customer.
2) Happy customers and employees with an equitable workload.
3) Service available at all times despite failures.

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Obelie Pastelerías

• Background of the company:

Obelie Pastelerías is a company dedicated to the


elaboration of cakes in the State of Aguascalientes, it
operates in Aguascalientes and has a franchise in
Calvillo, Aguascalientes.
It is a production and commerce company, it will produce
some items that it will then commercialize in retail or
wholesale, it is in the food industry. It offers typical cakes of the region, with premium
quality, in its main cake which is the guava cake, produced with ingredients from the
region and satisfies the tastes of all customers.

• Current situation: Describes widely 3 process that presents productivity


problems.
1) Lack of personnel in high season, which makes the elaboration process more time
consuming and does not achieve the objective.
2) Lack of machinery such as the oven, makes the process slower.
3) Poor handling of materials and lack of training of personnel causes products to be
damaged and therefore wasted.

• 3 Factors that inhibit productivity for each company:


1) In high season, there is not enough personnel and this makes the elaboration
process more time-consuming and the expected production target is not reached.
2) Small ovens slow down the process and reduce daily production.
3) Waste of cakes by not following the steps correctly, generating loss of materials
and money.

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• Strategies used to decrease / eliminate factors that inhibit productivity:

1) Recruitment of personnel for peak seasons and at the same time, so that it is not
so heavy, rotate shifts to improve employee productivity.
2) Purchase a larger kiln for greater production capacity and optimal accommodation
within the kiln.
3) Train employees and generate alternative uses for materials that are wasted with
new products.

• Results obtained when implementing the strategies:


1) More sales and more profit for the company, happier employees.
2) Higher production capacity and better order.
3) No waste and generate revenue with new products.

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PepsiCo
• Company Background: Type of company, product,
customers, process, etc.
In 1965, Donald Kendall, CEO of Pepsi-Cola, and Herman Lay, CEO of
Frito-Lay, recognized what they called a match made in heaven;
a single company offering the best salty snacks along with the
best cola in the world. Their vision soon evolved into one of the
world's leading food and beverage companies: PepsiCo.
PepsiCo is a large food and beverage company that aims to provide you with a variety of
product choices. Their food and beverage portfolio seeks to create smiles in all consumers
wherever they are. They are available throughout the country and have been designed to
satisfy the tastes and preferences of all people. In addition, they work to make their products
more sustainable every day.

• Current situation: Describe extensively the process that presents


productivity problems. For example: what is the process, how it is
currently carried out, what is its productivity, etc.
Every company can have variations in its production system, which can cause a decrease
in productivity at the time of solving the root problem.
According to Deming all production systems have variations, so companies must understand
the causes of such variation, which are: common causes and special causes.
Common causes are quantifiable, usual and historical.
Special causes are unusual, unanticipated, unobserved and surprising.

• 3 Factors that inhibit the productivity of each company: explain how


these factors influence the current situation, with quantities or
percentages.

1. Machinery problem, that a machine may have a failure and must be fixed to continue
production.
2. Work accident, you can never rule out the possibility of an accident.
3. Lack of motivation of the operators.

• Strategies used to decrease/eliminate the factors that inhibit


productivity: determine one or more strategies to increase productivity
(for each factor).

1. Provide constant maintenance to the machines so that it can continue to produce.

2. Teach the personnel about the company's safety measures, what they can and
cannot do in each work area.

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3. That they have fair work bonuses because sometimes that motivates them to
continue working in the company.

• Results obtained by applying the strategies. Calculate the increase in


productivity by applying the strategies.

1. That the machines have a longer life time and reduce the costs of buying a new one
or in another case parts that could break down.

2. To reduce in a good percentage the accidents of the operators because they are
playing or doing activities that cannot be done in the area.

1. To have happy and motivated operators to have a good performance when working.

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Tesla Motors
• Background of the company:
It was founded in 2003 by American entrepreneurs Martin Eberhard and
Marc Tarpenning and was named after Serbian American inventor Nikola
Tesla.

Tesla Motors was formed to develop an electric sports car. Eberhard was
Tesla’s chief executive officer (CEO) and Tarpenning its chief financial
officer (CFO). Funding for the company was obtained from a variety of
sources, most notably PayPal cofounder Elon Musk, who contributed more
than $30 million to the new venture and served as chairman of the
company, beginning in 2004.

In 2008 Tesla Motors released its first car, the completely electric Roadster.
In company tests, it achieved 245 miles (394 km) on a single charge, a
range unprecedented for a production electric car. Additional tests showed
that its performance was comparable to that of many gasoline-powered
sports cars: The Roadster could accelerate from 0 to 60 miles (96 km) per
hour in less than 4 second

• Current situation. Describes widely the 3 points of the process that


presents productivity problems:
1. The most important problem in this company is that it has a lot of material
without moving or occupying itself in any project, so an inventory control
would be implemented so that there is a constant flow of material and the
material did not remain, which would reduce costs of decrease.
2. They include government regulation, competition and demand, they are
beyond the control of the company, these factors can affect both the volume
of the output and the distribution of the inputs.
3. Excessive variety of products and lack of standardization of products or their
parts may mean that work has to be produced in small batches, with time lost
as the operator adjusts and shifts from one batch to the next, with more
specialized and slower machines than those of large-scale production.

• 3 Factors that inhibit productivity for each company:


1. The government regulation, competition and demand, they are beyond the
control of the company, these factors can affect both the volume of the output
and the distribution of the inputs.
2. Any value-added activity is one that uses the absolute minimum required of
material, machinery / equipment and labor to produce the expected result.
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Anything that exceeds that absolute minimum will generate waste and use
more resources than necessary.
3. The product and its components are designed such that it is impossible to use
most economical manufacturing processes.

• Strategies used to decrease / eliminate factors that inhibit productivity:


For this company it is necessary to know the real source of the communication
problems that exist in it, either due to a misunderstanding of the reception of
information or someone not satisfied with their work, as well as improving the
communication channels that there are for workers to superiors and vice versa, just
as there are among the workers themselves.
What we would do in this company to reduce possible future injuries to the worker
or accidents with machinery, as well as reduce material and equipment costs, would
be to implement some safety and hygiene standards, provide personal protective
equipment to each worker, as well as courses and training for emergencies

• Results obtained when implementing the strategies.


Generate greater efficiency. Companies with a QMS have the objective of
maximizing the efficiency and quality of their processes. They establish guidelines
to be followed by all employees in order to carry out business processes and training
that are simpler and less time-consuming in terms of time or financial expense.
Boost employee morale. Clear and defined roles, established training systems, as
well as a clear understanding of how their roles affect the quality and success of the
business are typical of a QMS approach. This seeks that employees are motivated
and satisfied, since this way they will perform adequately in the organization.

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CONCLUSION
Generally, the companies are the reason of being with productivity, this because it
helps to improve the costs and the times of realization. This is why companies focus
on improving productivity within their processes, always remembering how to make
an effective productivity in any aspect within a company.
Diego Roberto Bermudez Velázquez:
There are different factors that can affect productivity, which may be due to the
process, the product or the direction in which the factors that reduce productivity are
created, such as: lack of organization, motivation, among other factors that can affect
the company.
For this, productivity improvement techniques have been developed in which they
can be based on technologies, materials, labor, product-based, processing, and
finally task-based, achieving greater productivity efficiency.
Diego Alonso Martínez Pérez:
In this work we can see that there are many factors that can affect the production of
a product or service.
We were also able to analyze that there are different ways to solve problems only
that we have to see the approach, since you are not going to apply a repair technique
of an industrial machine compared to a repair of a coffee machine.
Nowadays, companies are always trying to develop techniques to improve
productivity so that operators work safely and with enthusiasm, and that the
machines have as few failures as possible.
Axel Alfredo Aguilera Avalos:
The needs of a company are measured by the customers and with a good
productivity everything can go running in the most optimal way, along with the quality
standards required in the needs of customers.
María Fernanda Medina Macías:
Productivity is the relationship between the quantity of products obtained by a
production system and the resources used to obtain said production. It can also be
defined as the relationship between the results and the time used to obtain them:
the less time it takes to obtain the desired result, the more productive the system is.
In reality, productivity must be defined as the efficiency indicator that relates the
number of resources used with the amount of production obtained.

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Ana Gabriela Martínez López:
We were analyzing the companies that we chose; we saw that they have improved
the productivity of the company, however, sometimes and for new reasons,
productivity is affected and thanks to this type of work we can analyze the failures
and possible solutions. It is important knowing the factors that affect the productivity
of a company and is important to analyze them to know what is failing and thus make
an improvement plan, we gave alternatives that companies can develop to be better,
which if applied, would generate more profits, because if a business is not
productive, it is not viable, it does not generate satisfaction for customers or bosses.
Omar Alejandro Oseguera Juárez:
In conclusion, productivity is the relationship between the result of a productive
activity and the means that have been necessary to obtain said production. On the
one hand, increasing productivity in companies is very important since it helps to
achieve the business objectives set to a greater degree and with greater efficiency,
it also represents a great cost saving, since it allows us to get rid of those
unnecessary elements to achieve the objectives. Finally, in order to achieve each of
the objectives, you must first know which is the most critical process and thus be
able to remedy it.

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BIBLIOGRAFÍA
• DEMING, W.E.: Calidad, productividad y competitividad, Madrid (primera versión en
inglés de 1982): Díaz de Santos, 1989.
• HOPERMAN, R.J.: Producción: concepto, análisis y control, México (primera versión
en inglés de 1971): CECSA, 1973.
• Mejora de la productividad en diseño e ingeniería, kenichi sekine (2002)
• Gómez, L. (1990): Mejoramiento Continuo de la Productividad y Calidad,
Ed. Nuevos Tiempos, Venezuela, 280 Pág.
• Rodríguez, F. y Gómez, L. (1991): Indicadores de Calidad y Productividad
en la Empresa (CAF), Ed. Nuevos Tiempos, Venezuela .150 pág.

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