Process synchronization and profitability

 07/09/2020
By Dr. Alin Posteucă

Is the synchronization of processes to customer requirements really the most important dimension of a good production system? This was my question that arose a few years ago during a detailed presentation of a production system at a well-known car assembly company. They explained how they seek to ensure a synchronization of the flow of information and that of materials in order to eliminate as much as possible the occurrence of waste. In fact, many of the company’s non-performances are passed on to suppliers (this non-performance being visible in the decrease of suppliers’ profitability).

Companies that will continue to focus almost exclusively on optimum capacity loading and on-time delivery can become more inefficient than ever in these difficult times for all of us. The risk is obvious: the lack of profit and the appearance of bankruptcy more or less announced.

In this context, do you think that total satisfaction of customer requirements is the healthy approach in these times? Shouldn’t companies pay more attention to cost-effectiveness (cost down) and cash-flow (cash up) in these times of crisis than to deliver on time and load capacity optimally?

Source: Alin Posteucă on LinkedIn

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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).