Production Volume and Productivity Level

By Dr. Alin Posteucă

Some managers and practitioners are wrong when they want to improve their productivity to increase production. The level of productivity does not depend on the volume of production. Production and productivity are completely different subjects. Productivity does not improve only by increasing production and vice versa.

Productivity means how much of the resources are needed for a certain number of predefined results. However, profitability through productivity remains the great challenge of managers’ teams. Some pertinent questions arise, such as:

  1. Is it possible to increase productivity and profitability even with the reduction of production/sales volumes?
  2. Is the high level or low level of productivity absolutely dependent on management activity?

I have presented the answers to these questions and not only in my latest book on Manufacturing Cost Policy Deployment (MCPD) Profitability Scenarios. I have presented how to consistently achieve the annual and multiannual target profit through Manufacturing Cost Improvement (MCI) based on the reduction of CLW and CCLW (to Ideal Costs through the 7 steps of MCPD), regardless of the evolution of sales volumes, increasing or decreasing.

So, I invite you to see details 👉 here or 👉 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).