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Cost Management

 04/09/2020
By Dr. Alin Posteucă

Companies that do not control their costs do not stay in the market. Are everyone in the company aware enough of the importance of costs in these times? How can you double your profits? Can you sell and produce twice as much? Could your company grow to double the current size in the same market? Well…. you don’t have to!

By reducing unit costs by just a small amount, you can double your profits without the need for a single new customer and without creating a single additional product. You won’t have to hire more people, enter new markets or get a new production space – just focus on being more effective and efficient with what you already have. In any company there are numerous opportunities to reduce costs without affecting customer satisfaction. Improving costs is much more than controlling and cutting costs.

True cost management means:
– deep and continuous understanding of costs,
– good cost design,
– identifying opportunities for cost improvement, and
– last but not least, the choice of the best ways to improve costs.

Do you think this is the healthy approach in these difficult times?

Source: Alin Posteucă on LinkedIn

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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.