Productivity and profitability: the strategic plan

By Dr. Alin Posteucă

The continuous measurement of the productivity level and strategic planning are essential to strengthening the continuous improvement culture. In this context, what do you think are the main challenges on continuous measurement of productivity (people, equipment, raw materials and materials, utilities)? Also, what are the main challenges on shift from productivity strategy to concrete actions to support a plan for long-term profit?

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Dr. Alin Posteucă is the founder and CEO of Exegens®, a global consulting firm specializing in operational excellence, cost improvement and business performance improvement. He helps his 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 the Manufacturing Cost Policy Deployment (MCPD) concept published in three books at Productivity Press - Routledge/CRC. The latest, Manufacturing Cost Policy Deployment (MCPD) Profitability Scenarios, centers on his core belief that annual and multiannual target profit can be achieved regardless of the evolution of sales volumes, increasing or decreasing.