Cost Improvement Department

 05/06/2019
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 a consultant in productivity and profitability, CEO of Exegens® and the author of Manufacturing Cost Policy Deployment (MCPD) and Speed-Based Target Profit (SBTP) concepts. His major research areas include manufacturing policy deployment, manufacturing cost improvement and visible profitability of operational excellence by improving productivity. His recent research includes the impact of Industry 4.0 on planning and developing synchronous profitable operations and on information systems of cost and budget in order to substantially improve the operational unit costs.

He has been actively involved in various industrial consulting and training projects for more than 20 years, delivering training/ workshop programs in Productivity, Innovation, Business Transformation and Leadership for over 5,000 participants.

He has a Ph.D. in Industrial Engineering and a Ph.D. in Managerial Accounting. He has an MBA Degree and a BA Degree in Accounting and Computer Science and he is certified Public Accountant in Romania. He has published in various research journals and presented papers at numerous conferences and congresses regarding Productivity, Profitability and Industrial Engineering.

Dr. Alin Posteucă is the author of Manufacturing Cost Policy Deployment (MCPD) and Speed-Based Target Profit (SBTP) concepts, published in four books at Productivity Press – Routledge/ CRC, New York (USA).