Productivity: annual improvement target

By Dr. Alin Posteucă

Improving productivity is one of the multiannual goals of each company.

Setting targets and means to achieve these targets is a major concern for managers. Typically, companies are using a normal annual target for productivity growth of between 10% and 15%. Then, this target is separated by processes for: equipment, raw materials/ materials, people and facilities. It may be considered that an increase in annual productivity of 2-7% can be achieved naturally” without having a plan.

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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.