**3.1 Approach developed for evaluating the components parts of internal logistics**

There were identified a few systematic attempts, proposals and techniques that improve the manufacturing system and the internal logistics and their related performance. They have to be able to assess the dynamics of production and the corresponding improvement and taking into account environmental issues. For developing the objective of the chapter there were carried out the following steps:


*Conceptualization, Definition and Assessment of Internal Logistics through Different… DOI: http://dx.doi.org/10.5772/intechopen.94718*


All this procedure is explained in detail below.

The Industrial Pole of Manaus has more than 565 companies of small, medium and large size, involving seven subsectors of different branches of activities, which can be seen in **Figure 1**. The emphasis of the companies to be researched will focus in the two-wheel sector that is the 16.77% of the PIM billing. The research will be developed in companies of medium, large and small size.

To assess the internal logistics, a survey was conducted to different companies of the Industrial Pole of Manaus. For data had statistical significance, it was analyzed what size the sample should have.

The "right" sample magnitude for a specific application depends on many factors, such as costs, administrative aspects, level of precision, level of reliability, variability within the population or subpopulation of interest and specimen method.

These factors interact in multifaceted ways. Although a consideration of all the variations is beyond the scope of this chapter, the remainder of this epigraph covers a situation that commonly occurs with simple random samples: How to find the minimum sample magnitude that offers the desired precision.

*Share of activities of sub-sectors in sales of the industrial pole of Manaus in the period from January to February 2015 (calculated based on sells in dollars). Source: Suframa – Industrial indicators (2015).*

**3. Materials and methods**

*Source: Prepared by authors (2020).*

different industries that compound it.

*Theoretical background of the internal logistics components.*

**logistics**

**Table 2.**

**Physical flow**

**Information flow**

logistics.

**130**

**3.1 Approach developed for evaluating the components parts of internal**

**Internal logistics components Source**

*Operations Management - Emerging Trend in the Digital Era*

Receipt [29–33] Warehouse [25, 34–39] Supply [40–42]. Movement [32, 34, 43–47] Working in process [19, 48–53] Internal transport [39, 54–58] Picking/packing [32,59–65]

Information technology [40, 55, 66–71] Planning and material control [54, 68, 72–75] Planning and production control [74, 76–79] Customer service [40, 80–84] Order processing [48, 68, 73, 85–87] Inventory management [32, 34, 41, 66, 68, 88–91]

There were identified a few systematic attempts, proposals and techniques that improve the manufacturing system and the internal logistics and their related performance. They have to be able to assess the dynamics of production and the corresponding improvement and taking into account environmental issues. For developing the objective of the chapter there were carried out the following steps:

• To identify the composition of the industrial pole of Manaus according to the

• To identify in literature, the component parts and definitions of internal

• To develop a new definition of internal logistics and its component parts.

• To confront and discuss the new definition and its component parts with

• When there were defined the component parts, it was elaborated a survey of then questions for assessing each one of the component part using a Likert scale of five points. This survey and questionnaire was also discussed with engineers and researchers that deal with internal logistics and supply chain.

industry professionals through surveys and interviews.

For demonstrating that a process has been improved, it is necessary to measure the process competence before and after improvements are implemented. This permits to measure the process improvement (e.g., defect reduction or productivity growth) and translate the effects into a projected financial result – something that corporate leaders can understand and appreciate. Determining sample dimension is a vital topic because samples that are too large may waste time, resources and money, while samples that are too small may lead to inaccurate results.

invitations were sent to participate in the study. A total of 327 responses received, being considered only 140 (25.97%) fit and consistent for research. The sample

*Conceptualization, Definition and Assessment of Internal Logistics through Different…*

**3.2 Assessment of the weight of the component parts of internal logistics by**

To evaluate the weight of each component part of the Internal Logistics were sent a survey to 93 companies to analyze them and to attribute a weight of importance in a Likert scale of 1–5 where 1 was minor and five very important according to the particularity and priority that represents the component parts for the aforementioned companies. In **Table 4** there are offered the results of three of the

It was found that depending on the company and its respective sector, the priorities and the degree of importance may be subject to change and therefore

**3.3 Evaluation of the internal logistics index by companies using excel solver**

logistics as well as the Internal Logistics Index of a company.

Based on the literature investigated was developed the structure of diagnostic model of the component parts of the internal logistics, its filling, testing and subsequent validation. They were developed 10 questions to assess each property and was conducted a survey in different companies. These questions were developed based on the literature review, the survey results according to the criteria of specialists of logistics management, and consulting and business managers. It was developed an Excel tab to evaluate the performance of each of the component parts of the internal

**Industrial sector % Size dcounter** Domestic appliances 15 100–250 Electronics 35 100–250 Components 40 250–500 Towels 9 500–1000 Others 1 100–250

The maximum score that each company can get is 65 points, which is the result of the multiplication of the 13 items by the maximum value of each item according to the Likert scale. It is noted for example that the company 1 attributed a very low note for the items: Storage, WIP and internal transport, while companies 2 and 3 attributed notes 5, 5 and 4 respectively for these same items, therefore, it follows which depending on the sector and type of production, whether continuous or discrete, the degree of importance may change. An arithmetic mean of the 3 companies was also developed in this tabulation and it was appreciated that from the maximum possible score of 65 points, company 1 scored 35 points, followed by 61 points by the company 2 and finally the company 3 with 59 points, and the arith-

characteristics are shown in **Table 3**.

*DOI: http://dx.doi.org/10.5772/intechopen.94718*

affect the performance of internal logistics index.

**companies**

companies investigated.

metic mean was 51.67 points.

*Source: Authors based on survey (2016).*

*Firms demographics: Industry and size.*

**Table 3.**

**133**

In the case of the industrial pole of Manaus, it is composed for 565 companies, and using the formulation expressed in [92], the number of companies to be considered for a good statistical representation has to be more than 60 companies.

Analyzing the sectors of the Industrial Pole of Manaus, it was possible to identify the components to assess the internal logistics. They were redesigned through interactions with business professionals from different companies in order to obtain the greatest possible standardization of component parts of internal logistics. **Figure 2** shows these parts. From this picture can be observed that there are component parts that have to do with the physical flow and other with the information flow.

Each component part of the figure above was evaluated by 10 properties or pertinent questions reflecting the respective training component behavior for performance, supported by Likert scale of 1 to 5, with 1 indicating little or no adhesion and 5 full adhesions between the question versus practice where each part can reach a maximum of 50 points is that the resulting properties of 10 x 5 points, and a total of 130 questions as a result of the 13 component parts of 10 questions each.

The questionnaire applied in enterprises, medium and large, the following segments: electronics, appliances, components and two wheels. In March 2015, 539

**Figure 2.**

*Component parts of the internal logistics. Source: Authors (2020).*

*Conceptualization, Definition and Assessment of Internal Logistics through Different… DOI: http://dx.doi.org/10.5772/intechopen.94718*

invitations were sent to participate in the study. A total of 327 responses received, being considered only 140 (25.97%) fit and consistent for research. The sample characteristics are shown in **Table 3**.
