Structural Profit Reform

 16/04/2019
By Dr. Alin Posteucă

The basic goal of MCPD thinking is to ensure a sustainable competitive supremacy through cost-competitiveness improvement to achieve real structural profit reform based on productivity reform.

At the beginning of the MCPD projects, managers and practitioners are concerned about:

  1. concomitant reconciliation between the need for price reduction, profit growth and cost reduction (based on Cost of Losses and Waste – CLW);

  2. how to set manufacturing cost improvement (MCI) targets continuously linked to market needs and the impact of these targets on profitability targets;

  3. the scientific determination of CLW and the setting scientific targets for CLW at the level of each Product Family Cost (PFC) process;

  4. the percentages of external profit (from sales) and internal profit (from reducing CLW with KAIZEN and KAIKAKU) to meet target profit.

In my last book on MCPD, among other things, you can see:

  1. a example of annual cost reduction of 7.6% – on pages 155-176 and

  2. 15 real KAIZEN/KAIKAKU for MCI – at pages 179-286.

So I invite you to see details 👉 hereDo you think the following approach can apply to your business? What challenges could arise?

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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).