• Manufacturing Cost Improvement

Structural Profit Reform

 16/04/2019
MCPD English, Productivity
By Dr. Alin Posteucă

The basic goal of MCPD thinking is to ensure a sustainable competitive supremacy through cost-competitiveness improvement to achieve real structural profit reform based on productivity reform.

At the beginning of the MCPD projects, managers and practitioners are concerned about:

  1. concomitant reconciliation between the need for price reduction, profit growth and cost reduction (based on Cost of Losses and Waste – CLW);

  2. how to set manufacturing cost improvement (MCI) targets continuously linked to market needs and the impact of these targets on profitability targets;

  3. the scientific determination of CLW and the setting scientific targets for CLW at the level of each Product Family Cost (PFC) process;

  4. the percentages of external profit (from sales) and internal profit (from reducing CLW with KAIZEN and KAIKAKU) to meet target profit.

In my last book on MCPD, among other things, you can see:

  1. a example of annual cost reduction of 7.6% – on pages 155-176 and

  2. 15 real KAIZEN/KAIKAKU for MCI – at pages 179-286.

So I invite you to see details 👉 here. Do you think the following approach can apply to your business? What challenges could arise?

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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.