Real Productivity Growth

 29/06/2020
Productivity
By Dr. Alin Posteucă

I am often asked by managers and practitioners where to start the approach to increasing productivity for profitability, especially now in times of crisis. They expect me to say that it starts with defining the customer value, then identifying waste at the level of operations and then making improvements to the current way of working to reduce / eliminate waste.

In fact, the approach to real productivity growth starts with a full awareness of the opportunity to increase productivity (a productivity improvement feasibility study). Then it is necessary to design an effective working Method (M) to prevent the occurrence of waste (based on a deep understanding of the current and future needs of the company). Then it is necessary to define and master the Performance (P) of the designed working method (definition of Standard Operating Procedure – SOP). Then, in the end, a stable production planning (Utilization – U) can be made, based on an effective working method and a performance of the working method without significant fluctuations.

This is the Japanese thinking of real productivity growth:

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Source: 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.