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 Extending the use of current/outdated equipment and technologies seems at first glance to be a cost-saving measure for managers, but this may actually mean at least a loss of opportunity to benefit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 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.