Production Volume and Productivity Level

 29/05/2019
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 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.