Real Productivity Growth

By Dr. Alin Posteucă

I am often asked by managers and practitioners where to start the approach to increasing productivity for profitability, especially now in times of crisis. They expect me to say that it starts with defining the customer value, then identifying waste at the level of operations and then making improvements to the current way of working to reduce / eliminate waste.

In fact, the approach to real productivity growth starts with a full awareness of the opportunity to increase productivity (a productivity improvement feasibility study). Then it is necessary to design an effective working Method (M) to prevent the occurrence of waste (based on a deep understanding of the current and future needs of the company). Then it is necessary to define and master the Performance (P) of the designed working method (definition of Standard Operating Procedure – SOP). Then, in the end, a stable production planning (Utilization – U) can be made, based on an effective working method and a performance of the working method without significant fluctuations.

This is the Japanese thinking of real productivity growth:

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Source: Alin Posteucă 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).