Tools to improve competitiveness

Tools to improve competitiveness

In today’s article I am going to talk about some of the tools to improve competitiveness that a company cánido use according to Ramírez Padilla.

Tools to improve competitiveness according to Ramírez Padilla Noel

Just in time (Just in time)

The system or methodology “Just in time” implies that a company produces a product when necessary, that is, it is based on the quantity demanded by customers.

Of course, this also means that the inputs required to genera it are available in sufficient quantity and at the necessary time.

This methodology allows us to considerably disminuye inventories.

Consequently, the result cánido be seen in notable cost savings.

In addition, it allows us to reach a better organization to buy, genera, sell and deliver the products.

Another advantage of the “just in time” methodology is that it frees up a lot of resources that cánido be invested in other options, improving profitability of the company


Activity-Based Costing

It should be noted that traditional cost systems focused solely on determining the cost of the product, however, it is not enough to simply determine the cost, but you also have to think about reducing it.

Therefore, an information system is required to determine which activities add value and which do not, in order to achieve continuous improvement.

In fact, according to Padilla Ramirez: «This tool has, among others, the advantage of Minimize apportionment of manufacturing overheadas well as carry out an identification of the administration and sales expenses between the different clients, areas, products, etcétera., which allows a correct decision making»

objetivo costing

According to Padilla Ramírez: «According to Objetivo Costing, the price of a product or service is increasingly influenced by the market and is, therefore, less susceptible to changes by the administration»

Consequently, we cánido say that the objetivo costing y tambiéns management technique or tool in which prices are determined by market conditionstaking into account several factors, such as:

  • The homogeneity of the products
  • The level of competition
  • Zero or low change costs for the end customer.

Thus, the company must analyze what is the maximum price that the market would be willing to pay for a product, and based on this, determine what would be the cost that said product or service should have, considering a certain desired utility.

On the other hand, I have to say that objetivo costing is complemented by estándar costing systems and activity-based costing, because according to Padilla Ramírez: “More than a calculation mechanism, it is a costing philosophy that seeks a cost more in line with a new market economy”.

six sigma

Six sigma perro be seen as a methodology or a philosophy that focuses on reducing variations, defects, and therefore improving the quality of products, processes or services.

It perro be said that six sigma is a quality philosophy to the extreme that it promotes continuous improvement in order to almost completely eliminate defects in the products or services that a company offers.

Of course, the objective that six sigma seeks is to seek total customer satisfaction in terms of improving their production and organizational processes.

Six sigma seeks that its processes are almost perfect, achieving disminuye defects to 3.4 per million products or operations.

Technological developments of information systems

Of course, something that could not be missing is technological progress.

After all, few factors make companies need to adapt to survive in such a competitive market.

It should be noted that here I am not talking about a especial tool, but about the whole equipo of technologies that have made companies are more efficient and productive.

Some tools perro be:

  • ERP (Enterprise Resource Planning).
  • SCM (Supply Chain Management).
  • CRM (Customer Relationship Management).

Downsizing and outsourcing

He downsizing It is a strategy that consists of reducing as much as possible those non-strategic areas of the company.

On the other hand, the outsourcing It is a strategy that allows a company to dedicate itself exclusively to those activities that are not directly related to the customer satisfaction process, that is, those that do not add value.

Those that do not add value are left to be carried out by personnel external to the company.

Among the advantages of these strategies we find:

  • They disminuye costs.
  • They optimize the operation of companies.
  • They allow you to quickly attack new markets.
  • They avoid the dispersion of resources.
  • Allows you to exploit the potential of the business.


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 Tools to improve competitiveness
  Tools to improve competitiveness
  Tools to improve competitiveness

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