by Productivity Press, New York (USA), Oct. 2018
Manufacturing Cost Policy Deployment (MCPD) Transformation: Uncovering Hidden Reserves of Profitability
by Productivity Press, New York (USA), Feb. 2018
Manufacturing Cost Policy Deployment (MCPD) and Methods Design Concept (MDC): The Path to Competitiveness
Alin Posteucă, Shigeyasu Sakamoto
by Productivity Press, New York (USA), 2017
Sometimes you need to do the hard work of understanding the data - data can uncover the secrets of your operations: the good, the bad … and the ugly. And sometimes, you need to work at the detailed level to fully understand what is going on … and uncover why.
The MPCD approach does this - works at the detailed, data level to uncover those secrets. But more than this - it drives forward progress. It uses targets to motivate, to challenge and to provide evidence - of the possible, the realistic, the ‘truth’. Managers can then work at a daily level to identify why these targets are not being met - and to improve operations so that the targets are met, regularly and consistently. MPCD deployment puts those managers firmly in control. Perhaps most importantly, MPCD provides the links between the ``productivity vision`` and longer-term aims -- and the goals and action plans that drive shorter-term improvement. Adopting and using the MPCD system releases hidden reserves of productivity and profitability.
Alin has done a remarkable job of condensing a lot of detailed information into a readable, interesting and challenging book. If you are the type of manager who values evidence-based policy determination and decision-making, then MPCD is the approach for you. If you are not yet convinced, read the results of case examples - this approach works!
The book starts with an excellent description of the manufacturing environment problems and needs and then the new approaching method is introduced and explained in terms that can be easily understood not only by college educated professionals, but also by a large amount of people who are working every day in manufacturing plants and have to resolve so many issues.
At the end, the book is analyzing manufacturing samples from everyday life and is proposing practical solutions the optimize the good ones or remove the bad ones.
After spending a pleasant time reading and professionally enlightening myself, I highly recommend this book to anyone interested in improving the efficiency of his manufacturing process he is in charge!
In his book, Alin is describing the needs for this strategy (the why?) and the steps for this transformation system implementation for tangible and consistent fulfillment of MCI (the how?). And the case study presented in the 3rd section of the book is an eye-wide opener for the organizations on the road for this strategy deployment implementation, with all the links between product families manufacturing flow, cost of losses and waste understanding, actions or improvement initiatives throughout the manufacturing flow, levels in the organization and the annual MCI goal.
Most of the times, we design, build and use the equipment without the natural ambition to closely and continually monitor their consumption (time spent in detail, spare parts, utilities, etc.). This ``exploded view`` of the manufacturing process is a way of reverting / resetting every time the logic that we often think is perfect to release hidden reserves of productivity and profitability.
The real practical applications presented in the book are very useful. For example, replacing bottleneck operations is an example of how to use this ``exploded view`` of data and information to trigger tangible action to increase productivity to deliver the ROI target in line with the company's expectations - we have simulated this case study and can confirm its practical applicability.
Really remarkable the effort to simultaneously capture the details and the overall picture of the processes!
I would also particularly highlight the three case studies at the end of the book: accurate on defining the issue, providing clear ``pattern`` and road-map on MPCD implementation, result analyze and conclusion. A lecture to consider for each manager passionate on improving his results!
From my personal perspective, this the manual that many educators and trainers are missing from their tool boxes because it makes the connection between the different methodologies used by the organizations plus it brings the Cost Transformation and Profitability back into the discussion of why we need projects and educators to be involved in organizational transformations.
Throughout the book, I read the new methodology with steps that will be implemented rigorously as Need for Continuous Cost Reduction, to Transformation, Implementation and Consistency to achieve Manufacturing Cost Improvement. The two cases are well detailed such that many organizations can follow the plan, while training and education can be consistently developed by those who consider Kaizen and Kaikaku as being at the heart of any process.
You need to understand your data and what to do with it. Manufacturing Cost Policy Deployment is a detailed and very well-structured guideline that provides you with the right advice and examples on how to do this. It’s giving you the answers to questions that perhaps you always had in your head, but they were never really addressed.
Getting back to the beginning: by now most of the manufacturing organizations have at least a basic lean understanding, but it is not working if the costs are not under control, profits are low or even missing and people do not feel engaged and motivated. Why are the targets and the way they are addressed so important?
How can we make sure we are fully aware of our existing waste and how to transform all the available information in better planning and suitable targets? How do we engage everyone, what is the link between motivation, targets and profit? What do we learn from our customers, from the market – and why? And there are so many more questions and the best part of the MCPD is that it’s addressing all these questions with clear data and examples and helps you getting your answers.
I know Alin for many years and this work is a true highlight of his long-time research. It is one of those books that you wished you had it early in your career when you were responsible for critical projects or businesses and you knew that things can be done better. Thankfully, it is never too late to learn!
Alin presents a new method to identify priorities for improvement activities, by looking at the CLW (compared to just looking at KPI's like: ``down time``, ``scrap/rework rate``, etc). Quantifying losses and waste through a money value gives Continuous Improvement Engineers and/or Middle Management the right arguments for convincing the Top Management to approve improvement projects resources. On the other hand, the Top Management can link better the improvement activities to the Annual Targets for Cost Reduction. The case studies shown help clarifying questions which might arise when trying to put this new theory into practice.
This book is useful to companies starting an improvement journey or to companies which tried already to improve their operations, but didn't manage to achieve a significant impact. MCPD system ensures a step-by-step guidance to achieve the manufacturing cost improvement.