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Current and Future Capacity

 01/04/2019
Productivity
By Dr. Alin Posteucă

Often, one of the first questions that I ask top managers is about the current and future production capacity needed in connection with the vision and mission of productivity.

Successful planning and implementation of strategic Kaizen and Kaikaku for cost improvement requires answers to questions such as:

  1. What is the strategic reserve of production capacity? What is the reason? For example: Is 20% sufficient?

  2. How are overcapacity and undercapacity addressed through Kaizen and Kaikaku?

  3. What is the impact on the unit costs of the annual strategic reserve of production capacity?

  4. How do we plan Kaizen and Kaikaku projects for a good capacity and profitability management?

Losing the battle with real capacity management is a reason to create systemic Cost of Losses and Waste (CLW) and unnecessarily large unit costs.

So, how do you plan the Kaizen and Kaikaku projects for cost improvement in terms of decrising or increasing sales and implicitly the need for real capacity, knowing that any improvement must be effective and efficient? I talk about this deeply in my last MCPD book.

*Source of the article: Alin Posteucă on LinkedIn

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About

Strategic productivity and profitability consultant and researcher, Alin Posteucă, Ph.D., Ph.D. is transforming the way companies approach their strategic transformation. With over 20 years of management consulting experience, Posteucă has created effective concepts such as Strategic Kaizen, Takt Profit, KAIZENshiro Budgets and Costing. His research on production flow has led to innovative breakthroughs in strategic and operational productivity improvement.

Posteucă's investigation into typologies of losses and waste has identified feasible improvements that can achieve the ideal state of production flow, known as Synchronous Profitable Operations (SPO). His Takt Profit model allows the optimization of production planning, transforming profit per minute into objectives for strategic improvements achieved through Strategic Kaizen projects.

Posteucă's research has led to increased effectiveness in strategic improvements and has set the stage for future productivity in the world of manufacturing technology. He is laureate of the Romanian Academy of the "Traian Vuia" Prize, the highest scientific prize in Romania.