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Annual Productivity Plan vs. Annual Profit Plan

 27/05/2017
Controlling English, Productivity
By Dr. Alin Posteucă

In an economically slow growth environment, the continuous improvement of productivity is even more important for maintaining profits growth. Unfortunately, when it comes to achieving the annual improvement targets, most companies start too late, run too slow or never develop a consistent plan.

Planning and detailed implementation of the productivity improvement plan should begin before or at the latest during the budgeting process (budgeting process usually starting in August for the following year). The productivity plan must be aligned with the annual trend of unit costs and prices and especially with the profit plan. Often, important percentages of productivity gain volatility when it comes to the visibility of current profit due to the rising trend of costs that can not be overcome.

So have you started the annual productivity improvement plan for 2018?
What are the main challenges in choosing the best systematic improvement (Kaizen) and systemic improvement (Kaikaku) projects?
How do you plan the target profit from the productivity improvement projects for 2018?

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.