Cost Improvement Department

By Dr. Alin Posteucă

Lately, more and more large companies have introduced a new department: COST IMPROVEMENT DEPARTMENT – with an interdepartmental and interdisciplinary approach. Some companies only have Cost Improvement Coordinator. The underlying need or mission of such a department is obvious because cost has become and tends to become a problem that is increasingly difficult to plan and especially to control.

Often traditional pressure on suppliers’ costs and productivity is no longer sufficient and scientific policy (targets and means) establishment for the systematic and systemic improvement of the Costs of Losses and Waste (CLW) in each process of each Product Family Cost (PFC) is the next way to go. In the last 10 years, I have set up and developed these initiatives in many companies – along with the development and implementation of the Manufacturing Cost Policy Deployment (MCPD) concept. The tangible effects of COST IMPROVEMENT DEPARTMENT are seen in reducing unit costs by 30-50%.

So, do you think companies need now and especially in the future a COST IMPROVEMENT DEPARTMENT? What are the core duties of such a Head of Department? Where do you think it should be positioned within the organization chart?

So, I invite you to see details 👉 here.

(Source: Alin Posteucă Post on LinkedIn)

Dr. Alin Posteucă is the founder and CEO of Exegens®, a global consulting firm specialized in cost competitiveness improvement and operational excellence. It helps customers create and implement profitable strategies and cost improvement programs that ensure a unit cost improvement of at least 6% per year for each of the next 5 years by maximizing the efficiency and effectiveness of operations.

He is the author of Manufacturing Cost Policy Deployment (MCPD) concept, published in three books at Productivity Press – Routledge/ CRC, New York (USA). The latest, ”Manufacturing Cost Policy Deployment (MCPD) Profitability Scenarios: Systematic and Systemic Improvement of Manufacturing Costs” (October 2018) is based on its main belief that the annual and multiannual target profit can be achieved irrespective of the sales volumes, increasing or decreasing. He is also the co-author of the book ”Manufacturing Cost Policy Deployment (MCPD) and Methods Design Concept (MDC): The Path to Competitiveness”, published at Productivity Press New York (USA), 2017, as well as the author of the book ”Manufacturing Cost Policy Deployment (MCPD) Transformation: Uncovering Hidden Reserves of Profitability”, published at Productivity Press din New York (USA), February 2018.

Alin Posteucă has more than 20 years of experience in Cost Improvement consulting and training. He has a PhD degree in Industrial Engineering and a PhD degree in Economics.