Non-digitalisation loss & Kaikaku

By Dr. Alin Posteucă

It is obvious that the show of digitalisation, which we all attend, is aimed at increasing the level of productivity (and quality). This “show” will cover all areas around us – it is the new global resource.

At the company level, the lack of productivity growth has many causes. One of them is the lack of an adequate investment plan. Innovation through digitalisation is often found in the creation of new products, new processes, new technologies, new materials – better, more efficient and easier to implement and use. Extending the use of current/outdated equipment and technologies seems at first glance to be a cost-saving measure for managers, but this may actually mean at least a loss of opportunity to benefit from a shorter processing time that can be achieved by digitalisation and new equipment, which actually creates an increase in costs.

Many companies already have master plans for achieving the ideal state of dream digitalisation factories with tangible and intangible results in KPIs.

So, are you aware, measure and act upon to reduce/eliminate non-digitalisation loss by running KAIKAKU projects? Is the opportunity cost of digitalisation fully understood by top managers?

Source: Alin Posteucă 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).