Production Volume and Productivity Level

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)