More and more investors are using exchange-traded funds (ETFs) to create diversified portfolios. Perhaps you should consider it too, if you understand the advantages and disadvantages of risk.

More and more investors are using exchange-traded funds (ETFs) to create diversified portfolios. You might also consider it, if you understand the trade-offs between risk and return.
An ETF is a basket of securities whose shares are sold on an exchange. They combine the characteristics and potential benefits of stocks, mutual funds or bonds. Like individual stocks, ETF shares trade throughout the day at prices that change based on supply and demand. Like mutual fund shares, ETF shares represent partial ownership of a portfolio that has been created by managers

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What are exchange-traded funds or ETFs

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In short, an ETF is a basket of securities that you can buy or sell through a securities brokerage firm on a stock exchange. ETFs are offered for virtually all possible asset classes, from traditional investments to so-called alternative assets, such as commodities or currencies. In addition, the innovative structures of ETFs allow investors to short the markets, gain leverage and avoid taxation on short-term capital gains.

Main types of ETFs

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There are many types of ETFs, each with a different investment approach. The following are some of the most common ETFs.

• Diversified passive equity ETFs: are designed to replicate the performance of widely followed stock market benchmark indexes, such as the S&P 500, Dow Jones Industrial Average and MSCI Europe Australasia Far East (EAFE) indexes. note 1 Major index ETFs tend to track their benchmarks closely.
• Passive equity ETFs: specialized ETFs, such as those that mirror sector subsets of the S&P 500 Index or the Russell 2000 Small Company Index, can offer investors specific exposure to help fine-tune their portfolio strategy. Like diversified passive funds, these niche portfolio funds are typically composed of the same stocks used to calculate their benchmark indexes.
• Securities that are used to calculate their benchmark indexes.
• Active equity ETFs: allow their managers to use their own judgment in selecting investments, rather than being rigidly tied to a benchmark index. Active ETFs may offer the potential to outperform a market benchmark, but they can also carry higher risk and higher costs.
• Equity ETFs are a great way to outperform a market benchmark, but they can also carry higher risk and higher costs.
• Fixed-income ETFs: focus on fixed income rather than equities. Core fixed-income ETFs tend to be actively managed but have relatively low turnover and generally stable portfolios.

Other types of ETFs

• Market ETF: Designed to track a specific index, such as the S&P 500 or the NASDAQ.
• Equity ETF: Designed to track a specific index, such as the S&P 500 or the NASDAQ.
• Bond ETFs: U.S. Treasury bonds, corporate bonds, municipal bonds, international bonds, high-yield bonds and more.
• Sectoral and industrial ETFs: oil, pharma or technology: designed for exposure to a specific sector, such as oil, pharma or technology.
• Commodity ETFs: designed to track the price of a specific commodity, such as gold, oil, or corn.
• Style ETFs: ETFs: designed to track an investment style or focus on market capitalization, such as large-cap value or small-cap growth.
• Foreign Market ETFs: ETFs: designed to track markets outside the United States, such as Japan’s Nikkei index or Hong Kong’s Hang Seng index.
• Inverse ETFs: ETFs that are designed to benefit from a decline in the underlying market or index.
• Inverse ETFs: ETFs that are designed to profit from a decline in the underlying market or index.
• Active management ETFs: Unlike most ETFs, which are designed to track an index, these are designed to outperform an index.
• Listed notes (ETNs): essentially are debt securities backed by the creditworthiness of the issuing bank and designed to provide access to illiquid markets; they have the added advantage of generating virtually no tax on short-term capital gains.
• Alternative Investment Funds ETFs: Innovative structures, such as ETFs, that allow investors to trade volatility or gain exposure to a particular investment strategy, such as a currency carry or hedged call.

Different structures

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Originally, ETFs were organized as unit investment trusts (UITs). In a UIT, an investment company buys a fixed portfolio of securities and then sells shares of that portfolio to investors. This type of structure results in dividends being held in an interest-bearing account, from which they are deposited into the ETF, usually on a quarterly basis. Delaying the investment of dividends can have a slightly negative effect on the total return of the ETF, as dividends are held in cash rather than invested.

Other ETFs are structured as open-end funds. This arrangement follows the typical mutual fund structure, as the investment company constantly offers and redeems new shares. The open-ended structure allows immediate reinvestment of dividends.

Advantages of ETFs
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Disadvantages of ETFs
Advantages of ETFs

• Potential tax efficiency
• Low expense ratios
• Trades all day long on the exchange
• No minimum dollar amount to invest (no fractional shares can be purchased)
• No minimum dollar amount to invest (no fractional shares can be purchased)
• You can sell short and buy on margin

Disadvantages of ETFs

• Brokerage commissions incurred
• Disadvantages of ETFs
• Capital gains distributed from time to time

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• Flexibility may encourage frequent trading, which could lead to the loss of tax advantage

EFT classifications

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Tax efficiency: ETFs can be more tax efficient than some traditional mutual funds. A mutual fund manager can trade shares to satisfy investor redemptions or to pursue fund objectives. The sale of shares can generate taxable gains for the fund’s shareholders.

Since ETFs are like stocks, redemptions are not an issue. In addition, managers of index-based ETFs only make trades to match changes in their index, which can be more tax efficient.

Low costs: passively managed ETFs (managers typically trade stocks only to replicate the underlying benchmark indexes) can have lower annual costs than actively managed funds.

Passively managed ETFs can have lower annual costs than actively managed funds.

Passively managed funds can have lower annual costs.

Flexible trading – Like stocks, ETFs trade in real time and trade throughout the day. Mutual funds, on the other hand, do not have this flexibility: Their prices are based on the end-of-day trading prices.

Equities – Like stocks, ETFs trade in real time and are traded throughout the day.

They can be sold short and bought on margin – Because ETFs trade like stocks, investors can use them in certain investment strategies, such as selling short and buying on margin.

They can be sold short and bought on margin.

No minimum investment – Most mutual funds require a minimum investment, whereas with most ETFs, an investor can typically buy any number of shares.

Most ETFs require a minimum investment, whereas with most ETFs, an investor can typically buy any number of shares.

Most ETFs require a minimum investment.

Diversification – ETFs can be a good way to increase the diversification of your portfolio. For example, buying shares of a technology sector ETF can potentially be less risky than buying shares of a single technology stock: an ETF can own shares of many different technology companies.

Diversification.

For the curious

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NASDAQ®:

It is updated frequently and contains quotes for selected ETFs.

ETF MarketPro

Education, pricing, research and other tools specific to theETFs

Are ETF dividends taxed

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No, they don’t. You can hold the ETF as long as you want. What is the tax regime for ETFs in Spain? Unlike mutual funds, capital gains derived from the redemption or transfer of ETFs are subject to withholding tax.

How are ETF dividends paid?

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Exchange-traded funds (ETFs) pay a full dividend, which is linked to the shares held in the funds. To that end, most ETFs pay dividends quarterly by withholding all dividends paid on the underlying shares during the quarter and then paying them pro rata to shareholders.

Of course, like all investments, ETFs can carry risks and other potential drawbacks. Consider these factors before you invest:
The flexibility of ETF trading can encourage frequent trading. This could lead to the possibility of poor timing with the market (getting in and out of stocks at inopportune times).

Brokerage costs are incurred. For this reason, ETFs may be more appropriate for an investor who buys and holds a large number of stocks at a time than for an investor who uses a systematic investment program.

There may be capital gains distributions. On occasion, some ETFs have distributed taxable capital gains, usually because the managers needed to buy or sell stocks to match their underlying benchmarks. In addition, government debt ETFs are subject to federal income tax.
You should carefully consider the risks of different ETFs. For example, many sector ETFs tend to be more volatile than ETFs that track the broader market. Consult a financial professional before investing in an ETF to make sure you understand the risks and have the most up-to-date information.

From canal empresas we hope we have helped you to improve your knowledge about etfs or exchange traded funds, if you want to continue increasing your knowledge about stock market  and investment do not hesitate to check the rest of sections and articles about it.

Guaranteed investment funds, as the name implies, guarantee that some or all of the capital invested will be preserved at a future date. In some cases, a guaranteed return is also offered.

Key concepts

• Guaranteed Maturity Date: date in the future on which the fund’s units are guaranteed to reach a certain net asset value (guaranteed NAV). Only unitholders who hold their investment until the maturity date are entitled to the guarantee. If it is redeemed before that date, losses may occur.
• Guarantor: an entity that undertakes to contribute the amount necessary for the unitholder to retain his initial investment if the guaranteed NAV is not reached as a result of the performance of the guaranteed mutual fund’s portfolio. If this amount is paid directly to the fund, it is an internal guarantee; if the unitholder receives this amount, it is an external guarantee.
• Marketing period: period during which units of a guaranteed fund can be purchased without paying subscription fees.
• Liquidity windows: some guaranteed funds provide for predetermined dates on which the unitholder can redeem all or part of the fund without paying redemption fees. This requires compliance with the notice periods set out in the prospectus. As these redemptions are made at the net asset value on that date, the guarantee does not apply and may result in losses.

Types of guaranteed investment funds

Depending on the scope of the guarantee, two types can be distinguished:

• Fixed-income guarantees: at maturity, the guarantees ensure not only the preservation of the initial capital, but also a fixed and predetermined return (indicated in the prospectus in the form of annual interest, APY).
• Guaranteed variable return: they only guarantee the initial investment, on the maturity date of the guarantee. They also offer the possibility of receiving a return linked to the evolution of various financial assets or indexes (according to more or less complex calculation formulas). Investors should note that if the underlying instruments do not perform as expected, they may not receive any return.

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What to do if the warranty expires

The unitholder should pay attention to the expiration date of the guarantee (which appears in the fund’s prospectus and in the periodic information sent to the unitholder), because at that time he must assess the situation and decide what to do.

In some cases, a new guarantee period will be established or will begin after the expiration of the guarantee for these products, which implies significant changes in their nature and characteristics. In other cases, the fund may cease to be a guaranteed fund and continue to operate normally with a different investment policy.

Finally, it is also possible that a fund may be absorbed by another fund as part of a merger process when the guarantee expires.

Investors have the following options:

• Do not accept the new conditions: in this case, the participant must exercise the withdrawal right, which allows him to recover his investment or transfer it to another fund without incurring redemption fees for a limited period of time (at least one month). This period is specified in the letter sent by the institution.
• Remaining a fund participant: this option does not require any action, since if the investor does not submit a redemption order during the period available for decoupling, he is deemed to have accepted the new features (or, as the case may be, the features of the acquiring fund) and wishes to maintain his investment. Thereafter, the new terms and conditions (which may include, for example, the application of a redemption fee) will apply to the participant.

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What should be taken into account for this type of fund?

• In general, guaranteed funds do not always guarantee the investment, but only on a certain date: the maturity date of the guarantee.
• Not all guarantee the return. Before investing, check whether the guaranteed investment fund offers a fixed and secure return or whether it only guarantees the initial investment.
• If you decide to invest in a guaranteed fund,we recommend that you invest during the marketing period, and if you wish to redeem, do so during the expected period after the guarantee expires, or take advantage of the moments without redemption fees (liquidity windows) throughout the life of the product.
• Guaranteed funds typically charge high subscription and redemption fees during the guarantee period to limit inflows and outflows (except during liquidity windows).
• Redemptions made during the liquidity window are not covered by the guarantee. Although they are exempt from redemption fees, they may result in losses.
• Be sure to read the product prospectus for information on the marketing period, guarantee expiration date, performance objective, fees, liquidity period, notice period, etc. It is important to read it both before investing and after becoming a participant.
• It is important to carefully study the communications sent by the institution regarding the maturity and renewal dates of the guarantee.

How is the profitability of the investment fund guaranteed?

Guaranteed structured investment funds are the only ones that guarantee a predetermined return (fixed or variable). Defined in the internal regulations. Other funds cannot guarantee performance.

Is it possible to guarantee the profitability of an investment fund?

It is not possible to guarantee the performance of an investment in units of investment funds, except in the case of «guaranteed structured investment funds», which guarantee a return at the end of a period defined in their internal regulations. This purpose must be explicitly stated in the «objective» defined by the fund. These funds must describe in detail in the investment policy contained in their internal regulations the investment strategy they will follow, the funds’ investment approach and the risk hedging strategy they intend to use to support the relevant performance objective.

What are the advantages and disadvantages of investing in a mutual fund?

Advantages:

– Allows participants to access a variety of global markets, economic sectors and currencies that would not be possible with individual investment due to the high transaction costs and/or volumes required to generate funds.
– Transaction costs and/or volumes required to create a diversified portfolio.
– Diversification helps reduce the potential negative impact of a given investment through a variety of instruments.
– Diversification helps reduce the potential negative impact of an investment due to the variety of financial instruments that mutual funds have access to.
– Liquidity for quick access to money. Funds will be redeemed on the dates established for each fund.
– Flexibility thanks to the broad categories of debt, equity, balanced and guaranteed funds. In addition, participants can choose between different funds with different investment strategies.
– Affordability, as mutual funds can be invested starting at $5,000.
– Convenience by entrusting investment management to a third party specialist who is dedicated exclusively to investment management.

– Convenience by entrusting investment management to a third party specialist who is dedicated exclusively to investment management.

– Affordability by entrusting investment management to a third party specialist who is dedicated exclusively to investment management.

Disadvantages:

– The profitability of investments in mutual funds is not guaranteed. Even in the case of debt (fixed income) funds, the result obtained upon redemption of the investment will not be known at the time of its effectiveness.
– There are a large number of funds and categories of mutual funds, which can lead to confusion.
– There are costs associated with the funds, which vary depending on the type of fund and the holding period of the investment.

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Can I know the return I will get from investing in a mutual fund?

No investment fund can predict or guarantee future returns, as they depend on the market values or prices of the financial instruments in which the fund’s assets are invested, except for so-called structured guaranteed funds.

No investment fund can predict or guarantee future returns, as they depend on the market values or prices of the financial instruments in which the fund’s assets are invested, except for so-called structured guaranteed funds.

Here’s a list of the best guaranteed mutual funds.

Here is everything you need to know about a guaranteed mutual fund, if this type of fund does not convince you, since despite its name, it does not guarantee profitability, the commissions are very high and the yield very low, do not hesitate to review all about mutual funds here.

If you are looking to invest safely, chances are that you are looking for guaranteed mutual funds, currently it is very difficult to find these funds, since guaranteeing a return on investment in a 100% safe way is impossible, but it is true that many funds have an upward trend and constant for a long time.

With this book you will be able to find almost guaranteed mutual funds, you will learn how these work, what you have to take into account when joining one and what dangers may exist. Thanks to this book by Charlie Evans, you may be able to reduce your risk as much as possible.

I hope this article has been able to help you and that you get the most out of it!

At this time, for many entrepreneur, the idea of entrepreneurship becomes more sensible; which may be a good decision if you consider the prospects for entrepreneurs in the world, as according to the pandemic situation, different forms of entrepreneurship have emerged, with their different business ideas and with it different types of entrepreneurs. 

However, an important point for entrepreneurship is the ability to determine which of the different types of entrepreneurs one most identifies with or would like to identify with. Knowing them can be critical to understanding the opportunities and advantages you have to avoid the failure statistics facing the industry. With this in mind, let’s highlight the different profiles that exist this time around.

Social entrepreneur

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The first type of entrepreneur is characterized by their tendency to perceive the local, national and global environment. Many social entrepreneurs are activists or environmentalists who want to solve social problems and change the world.

Their main goal is to improve the world by creating businesses that have a positive impact on the world. These entrepreneurs don’t measure their success by profits, but by impact.

They are not just about profit, but impact.

More likely, they create nonprofit organizations or companies that engage in socially beneficial activities.

Innovative entrepreneur

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This type of entrepreneur is one who constantly generates new ideas and inventions. Like social entrepreneurs, they try to change the way people live for the better. As their name suggests, innovation is more important to them than owning a business, but many of them turn their ideas into thriving businesses.

They are also the type of entrepreneurs who are not only innovative, but also have a strong sense of purpose.

This type of entrepreneur is usually an engineer who enjoys the technical rather than the operational aspects of the business. Their motivation is not money, but the mission and the impact of their ideas on society.

Hustler entrepreneur

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These entrepreneurs can be considered businessmen who work hard and put a lot of effort into their activities. They are not afraid to research trends. They think risk can be scary, but also exciting, to the point of believing that if you don’t take risks, you won’t reap rewards.

They believe that if you don’t take risks, you won’t reap rewards.

These entrepreneurs start small and work to grow their business to large proportions, relying on hard work rather than money. Scammers are willing to do anything to achieve their goals.

They are often willing to do anything to achieve their goals.

They usually start their own companies because they don’t want to work for someone else. They also tend to do it all and manage others.

Mimic entrepreneur

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An imitator is an entrepreneur who sees the success of others and tries to emulate it. They are inspired by what others have done and try to improve on what others have developed. Copycats can be considered a combination of innovators and impostors. They are willing to come up with new ideas and work hard, but they start by «cloning» businesses and copying what others have done. 

Imitators are confident and determined and can learn from the mistakes of others. They like to play it safe and measure success by failure, so they copy successful business models to avoid making mistakes. However, copycats often catch up and compare themselves to the original creators.

They are not the only copycats.

Investigative entrepreneur

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Imitating entrepreneurs are the type of people who like to learn. They spend time researching all possible scenarios and strategy outcomes before starting or growing a business. In some cases, research becomes an excuse for inaction. They realize this through great preparation and information, so they have a better chance of a successful business.

These entrepreneurs rely on data, facts and logic rather than using intuition. They develop detailed business plans to minimize the likelihood of failure.

Determined entrepreneur

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Entrepreneurs of this type are also known as wantrepreneurs. Although they haven’t made it yet, they believe they will. They are rich in ideas, but are not consistently provided with the basics needed to run a successful business. 

They understand the value of entrepreneurship and see that success is possible; this is their driving force. They want to enjoy the benefits of a successful entrepreneurial lifestyle and see themselves as people with ideas, but need more motivation to put all the pieces together or devote enough time to create a successful business.

They also understand that starting and growing a business is challenging and takes time.

They also understand that starting and growing a business is challenging and takes time, but they tend to jump from one idea to another and become serial entrepreneurs.

These entrepreneurs rarely achieve their ambitions of having a successful business.

Buyer entrepreneur

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This type of entrepreneur is one who uses his resources or assets to fuel his entrepreneurial spirit. These are entrepreneurs with full business experience. They know that buying a well-established business is less risky than starting a business from scratch, so they use their wealth to buy businesses they believe are underperforming. After taking over a business, they make the structural changes and adjustments they deem necessary to grow the business quickly and increase profits.

They are also the ones who have a strong sense of the business environment, and they are the ones who have a strong sense of the business environment.

These entrepreneurs measure success by the additional profitability that they are able to generate for the company.

Builder entrepreneur

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Builder entrepreneurs are flexible types who are always looking to the future for the next big idea. It is common for these entrepreneurs to run several businesses over the course of their lives, even in different sectors.

Builders measure success based on infrastructures such as the number of employees, the property they own and the amount of office space they occupy, among other things.

Builders are also seasoned entrepreneurs who have been through all phases of starting a business and have been successful. They are focused on expanding their business and leaving a legacy that extends beyond their lifetime. For all that, they consider their time their most valuable resource and try to use it wisely.

Opportunistic entrepreneur

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This type is characterized by great optimism and a mastery of promotion. They like marketing and sales. They are adept at recognizing opportunities to make money.

These entrepreneurs measure success by the amount of money they make and the amount of external recognition and approval they receive.

They have a strong sense of humor.

The hallmark is that, rather than building businesses from scratch or buying them, they look for business opportunities where they can use their skills and networks to generate residual and renewable income.

Specialized entrepreneur

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Finally, specialized entrepreneurs are those who tend to be in fields such as accounting, medicine or law. Specialists know what they are good at and have dedicated their entire careers to one field.

Specialists know what they are good at and have dedicated their entire careers to one field.

They measure success by their personal income and, because of their aversion to sales, their main weakness is traffic. They also refuse to take risks. They analyze every business decision first and use proven networking methods to find new sources.

They are not averse to taking risks.

These are the different types of entrepreneurs that we have been able to find in this year 2021, remember that to be a successful entrepreneur and achieve your goals within the business world, you have to have a good ability to adapt, know how to organize resources and have the ability to transform the products or services you have available into profits.

We recommend these books so that whatever your entrepreneurial profile is, you can find the way to do it and not stop growing.

What is a path diagram?

Although a process flow diagram gives us a lot of information about the production process, it does not clearly show the process flow. If a process analysis is performed, this information is useful for improving the production process.

We record operations, inspections, shipments, delays and storage in the same order in which they occur in the flow chart. The movement path is indicated by lines, each activity is identified and placed on the diagram with its corresponding symbol, and operations and controls are numbered according to the process diagram.

The path diagram can be of two types:

De tipo humano: analiza los movimientos y actividades de la persona que realiza la operación.
Tipo de material: donde se analizan los movimientos y transformaciones que le ocurren al material y, como en el caso anterior, se «sigue o persigue» al material paso a paso.
Si es necesario visualizar o analizar el movimiento de más de un material o persona que interviene en un proceso, cada uno de ellos puede identificarse con líneas de distintos colores o trazos diferentes.

The route diagram complements the information contained in the process diagrams; it consists of a plan (which may or may not be to scale) of the plant or section where the investigated process takes place. This diagram records all the different material movements, identifying by means of symbols and numbering the different activities and the place where they are carried out.

The route diagram allows to visualize the transport, the advance and withdrawal of the units, the bottlenecks, the points of the highest concentration, etc., in order to analyze the work and see what can be improved (eliminate, combine, reorder, simplify).

PROCESS DIAGRAM TYPES.

According to its form:

• Vertical format: In this format, the flow or sequence of operations goes from top to bottom. It is an ordered list of the operations of a process with all the information considered necessary according to its purpose.
• Horizontal format: In this format, the flow or sequence of operations goes from left to right.
• Panoramic format: the entire process is shown in a single graphic and can be seen at a glance much faster than reading the text, which facilitates understanding even for the ignorant. It records not only vertically, but also horizontally, several simultaneous actions and the participation of more than one position or department that the vertical format does not record.
• Architectural format: describes the path of a shape or person in the architectural plan of a work area. The first diagram is very descriptive, while the second is mainly representative.

By purpose:

• From the form: deals mainly with the form with little or no description of the operations. It indicates the sequence of operations or steps through which the form passes in different copies, through different locations and departments, from its origin to its submission. It shows the distribution of multiple copies of forms to several different people or units in the organization.

Shapes may be represented by symbols, scale drawings or photographs, or descriptive words. A horizontal format is used. The form is illustrated or labeled on the left side of the chart, followed by a horizontal progression, crossing each column assigned to organizational units or individuals.

• Work: These abbreviated diagrams represent only the operations involved in the individual activities or tasks into which the procedure is divided and the department or unit performing them. The term work includes all types of physical or mental effort. A vertical format is used.
• Methods: are useful for training and also represent how the various operations of a procedure are performed, by the person who is to perform them and in the specified order and by the person who performs them, but also analyze the purpose of the various operations within the procedure. If the data is important, the time used, distance traveled or some additional data is recorded. A vertical format is used.
• Analytical: represents not only the individual operations of the procedure in the specified order and the person performing them, but also analyzes the purpose of the individual operations within the procedure. If the data are relevant, the time used, distance traveled or any additional observations are recorded. A vertical format is used.
• Space: represents the path and distance traveled by the shape or person during the various operations of the procedure or part of it, and indicates the space through which it moves. If this is important, it represents the time spent on the route. The architectural format will be used.
• Combined: represents a combination of two or more diagrams of the previous classes. The vertical diagram format is used to combine tasks, methods and analysis (what is done, how it is done, what it is done for). The panoramic format is used to combine different forms and tasks from different positions or departments.

Regarding presentation:

• Block: is presented in general terms to highlight certain aspects. It presents a routine through a sequence of blocks, each with its own meaning and interconnected. It uses a much richer and more varied symbology than the previous diagrams and is not limited to predetermined lines and columns in the chart.

It is widely used by systems analysts to represent systems, i.e., to indicate the inputs, operations, connections, decisions, archiving, etc., that constitute the flow or sequence of activities of a system.

• Detailed: Represent activities in their most detailed form.

What is the function of the path diagram?

A route diagram is a diagram or model, more or less to scale, that shows where certain activities are performed and where workers, materials or equipment move as they are carried out.

In organizations that manufacture goods and/or services, there are five critical factors related to the facilities, since it is in them where many of the problems that arise during the process or activity that is developed can be attacked, so it is there where there is a great opportunity to increase productivity.

These five factors are as follows:

It is important to consider that the above factors are closely related, as they all interact and are part of the system in the facility.

In the case of material handling and plant layout, the problem that arises is that if there is no proper plant layout or proper material handling system, no matter how hard we try to increase plant efficiency, we will not achieve optimal results because the material and workers usually make a long and complicated journey during the production process with loss of time and energy and no added value for the product.

In terms of efficient plant layout, the objective is to develop a production system that allows the necessary number of products to be manufactured with the required quality and at the lowest possible cost.

If one wants to analyze the routing of materials in a plant, it is necessary to first recall the systems that are commonly used in the industry for production. The four main plant layout systems are 16:

1. Fixed arrangement of major components, in which the manufactured product does not move in the factory, but remains in one place and therefore the necessary machinery, labor and other equipment are brought there.
2. Disposition by processes or functions in which all operations of the same nature are grouped together.
3. Disposition by product, in series or in batches, in which case the machinery and equipment required to manufacture a given product are grouped in the same area and arranged according to the production process.
4. Group layout or work cell layout, which allows the use of group production methods, i.e., a team of operators working on the same product and having all the machines and accessories necessary to complete their work within their reach.

In somecompanies it is common to find combinations of two or more systems or parts of the plant with one of these types of layout.

Once these layout systems are known, it is possible to move on to an analysis of the routing of materials in the factory.

Although the analytical flowchart provides most of the relevant information about the manufacturing process, it is not an objective representation of the workflow. Sometimes this information is used to develop a new method. For example, before sizing a conveyor, it is necessary to determine or imagine where equipment or facilities could be added to shorten the distance. It is also useful to consider possible temporary or permanent storage areas, control stations and workstations.

Por ello, la mejor manera de obtener esta información es realizar un plano de la distribución existente de las áreas consideradas en la planta y dibujar líneas de flujo que indiquen el movimiento de material de una actividad a otra. Se denomina diagrama de recorrido de actividades a la representación objetiva o topográfica de la disposición de zonas y edificios, que muestra la ubicación de todas las actividades registradas en el diagrama de recorrido de procesos.

Clearly, the path diagram is a valuable complement to the analytical path diagram, as it can be used to plot the inverse of the path and find areas of potential congestion, facilitating better plant layout.

Kumon was founded by Japanese educator Toru Kumon in July 1958, when he opened the first Kumon Math Center in Moriguchi, Osaka. Its opening hours vary by location. Before founding the Kumon franchises, he was a teacher at Kochi City High School and Tosa Junior/Senior High School. Inspired by his own son Takeshi’s teaching, Kumon developed a curriculum focused on memorization.

At first, Kumon grew slowly, achieving only 63,000 students in its first 16 years. However, in 1974, Kumon published a book entitled Kumon’s Math Secrets, which caused its numbers to double over the next two years. However, Kumon promotes the principle of «no show work.» That is why Kumon is not so popular with parents and educators.» [citation needed] Kumon opened its first U.S. branches in 1983 and reached 1.4 million students in 1985.

Kumon soon added more educational courses, which led to a name change from Kumon Institute of Mathematics to Kumon Institute of Education. The first Kumon logo was created at that time. In 1985, Kumon’s success led to an increase in the number of students.

Tras la introducción del Método Kumon en la Escuela Primaria de Sumiton, Alabama, Kumon atrajo la atención nacional en los Estados Unidos. Se convirtió en el primer colegio de Estados Unidos en incorporar el método matemático Kumon al plan de estudios regular de matemáticas para los niños de 4º a 6º curso.
Sumiton continuó utilizando Kumon hasta 2001 e influyó en otros colegios para que también adoptaran el método Kumon en su plan de estudios.

In 2008, Kumon had more than 26,000 centers worldwide with more than 4 million registered students. In 2018, 410,000 students were enrolled in 2,200 centers in the United States.

In 2012, Kumon Japan created Baby Kumon, a tutoring program designed for children aged 1 to 2 years old. Baby Kumon has not been used in most Kumon centers in other countries outside Japan. In North America, Kumon launched «Junior Kumon» in 2001, aimed at children ages 2 to 5.

What is the Kumon Method?

Kumon is an enrichment or remedial program in which instructors and assistants tailor instruction to individual students.

Each student receives an initial assessment of his or her abilities, called the Kumon Diagnostic Test. Each test ranges from 20 to 60 questions. Based on the results and the student’s study skills, the Kumon instructor creates an individualized study plan.

Students often begin Kumon classes as an «easy start» to help them build study habits, concentration and a solid understanding of basic topics. As students progress, Kumon instructors plan for students to study at a level of difficulty that challenges them to stay motivated, but is not so difficult as to discourage them. The study plan is regularly updated by the Kumon instructor to match each student’s ability. Students move to the next level after passing a mastery test based on speed and accuracy. Students do not take or pass the mastery test, but have the opportunity to practice and repeat the material until they demonstrate a good understanding.

Kumon has two main programs: the Kumon Math Program and the Kumon Native Language Program. There are also Kumon Japanese and Kumon Kokugo courses for Japanese-speaking students and a pencil skills program for younger students.

All Kumon programs are based on pencil and worksheets. The difficulty of the worksheets increases in small increments. It is recommended that students study for 15 to 30 minutes for five days a week, with the remaining two days of study time spent visiting a local Kumon center.

How much does Kumón cost?

Currently it is difficult to know how much Kumón costs, as it is a program that adapts to the needs of each family, depending on the attention required, the hours per day or days per week. The price can vary, however, we have found that the base price is around $90 which could vary depending on the country, so we will give you the contacts, so you can talk to them directly.

The contact telephone numbers of its different offices are:

• Oficinas Centrales, Estados Unidos – 201-928-0444 – 1.800.222.6284
• Canadá – 416-490-1434 –  1.800.222.6284
• México– 55-5281-2346 – 800-01-58666
• Panamá – +52.55.5281.2346
• Argentina – +54 (11) 4551-0898
• Bolivia – No disponible
• Chile – 2 2706 5460
• Colombia – 315 6237670
• Perú – No disponible
• Uruguay – No disponible
• España – 913 231 053

Is Kumon worth it?

From a lack of qualified «instructors» to less than 44% coverage of the curriculum to a host of other disqualifying factors, Kumon is far less helpful to students than many families realize.

Consider first the Kumon «Reading» program; that is easier to disqualify as a credible educational program. In short, it is not an «English language» program, but is usually taught by people for whom English is not their first language.

The placement tests in the Kumon «Reading» program are convoluted and – like the tests in the «Math» program – are explicitly designed to get the student to the lowest starting point. I have often found it to be a discouraging waste of time (for students) when an 8th or 9th grader starts with 3rd or 4th grade content. Such a student has little hope of getting to grade level in a time frame that is beneficial for them to even seriously consider pursuing Kumon.

The Kumon math program is vastly overrated in terms of its benefits to students; in fact, it is highly inefficient and in many cases downright ineffective, and not worth the investment of time and money for many reasons:

• First, there is a difference between «arithmetic» and «mathematics». Using the term «math» to describe an arithmetic program is misleading and misrepresentative…whether unintentionally or not. Most standardized tests offered in the mainstream academic world (such as the SSAT, PSAT, SAT, and ACT) present students with word-based problems that go beyond mere arithmetic (in other words, math), assuming they have basic arithmetic knowledge. Arithmetic worksheets are available on many websites at minimal cost (even free!). Many of them are very viable alternatives to the Kumon «Math» program at a fraction of the cost.
• The Kumon «Math» program emphasizes rote learning. However, rote learning is a very superficial form of knowledge accumulation. Of course, students have to memorize the basic operations of addition, subtraction and multiplication. But combining this into a 21-level series of arithmetic worksheets and calling it a «math» program is complicated.
• The problem of curriculum coverage is one that undermines the ability of Kumon’s «Math» program to be considered a credible math program. According to Kumon’s publication, Kumon’s «Math» program offers less than 44% of what students should master, on average, in grades 1-8. And for a student to apply that 44% of the curriculum, he or she has to complete literally hundreds (if not more than a thousand) worksheets. Furthermore, after completing the same tired worksheets two, three, four or more times, the net coverage of the curriculum is still
• Lack of experience of Kumon «instructors». When I applied to run a Kumon franchise, I was surprised to learn that you only need to have a sixth grade math level (according to the franchisor’s metrics) to open a Kumon center. Kumon franchise instructors are often viewed as «experts» in math; however, this is only true as long as they have the «answer book» for that level of arithmetic in hand. In addition, most Kumon franchisees could not declare English as their first language, and there was at least one Kumon franchisee in the system at the time who had no higher education.
• I noticed that less than a handful of Kumon franchisees had any educational background… other than that required by the franchisor (which consisted of filling out thousands of worksheets), yet they had no educational background at all.
• Then there is the issue of the supposed «independent learning» often presented by the franchisor. This may have more to do with the franchisor’s need to have dozens of students working at the Kumon Center with a very minimal level of support available to the students if the franchisee’s monthly bills are to be paid (>€3000/month rent, >35% franchisee royalties, utilities, program supplies and staff). The vast majority of elementary school students often do not have the ability – or desire – to learn independently. This is a myth propagated by Kumon.
• Kumon franchisees are financially rewarded for having students on the so-called «ASHR» (Advanced Student Honor Roll) list. This precipitates artificially rapid progression of students through the levels (possibly without confirmation of «mastery,» another overused mythical Kumon term). What does the term «advanced» mean? What does «advanced» compare to without being aligned to the curriculum?

• Something about the design of an educational resource or pedagogical reflection… that addresses the issue of scope and sequence. The scope of each level of Kumon is completely out of the sequence of how students learn math in conventional schools. And stacking 200 worksheets to cover multiplication or division (for example) is ultimately very inefficient.Why? Because young children often forget how to do it at other levels. Again, this is a very flawed assumption on Kumon’s part about how young minds process and retain information.
• While at my Kumon center I have all student worksheets checked off, parents might ask if other Kumon centers follow a similar level of franchise operation or code of conduct. In other words, how do parents ensure how their daughter or son is actually doing or progressing in the Kumon programs?
• During my tenure as a Kumon franchisee, it has not escaped my notice that several students have actually strengthened their arithmetic skills in Kumon math classes. However, I also know that students in this category (less than 5%) would have done well in math even without Kumon… especially if they had access to a qualified teacher (or tutor) with credible resources for learning. And the number of kids crying because of punitive worksheets far outnumbered the few who gained anything from the Kumon experience.
• Parents need only have their child tested against a known educational standard to determine their child’s developmental level in math or English. Then seek an effective remedial program or procedure, as they would with any other important consideration in a child’s life. Entrusting a child’s educational future to someone who knows nothing about education – and who offers a program that is more than minimally deficient in many respects – may not be the wisest decision.
• Bottom line: if your child is not being taught by a qualified educator – and with material that is not relevant to what he or she is doing in school – what good is an educational program?

Kumon es un claro ejemplo de emprendimiento social, es un sistema que pueda ayudar a tus hijos o puede que les haga sentirse más frustrados, este método ha sido creado para intentar ayudar, cientos de personas han terminado muy contentos con su paso por esta institución y les ha ayudado mucho a seguir avanzando, en cambio a otros no, es por ello que al final del día es decisión tuya decidir si decides confiar en ellos o no.