Structural Profit Reform

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?

Dr. Alin Posteucă is the founder and CEO of Exegens®, a global consulting firm specialized in cost competitiveness improvement and operational excellence. It helps 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 Manufacturing Cost Policy Deployment (MCPD) concept, published in three books at Productivity Press – Routledge/ CRC, New York (USA). The latest, ”Manufacturing Cost Policy Deployment (MCPD) Profitability Scenarios: Systematic and Systemic Improvement of Manufacturing Costs” (October 2018) is based on its main belief that the annual and multiannual target profit can be achieved irrespective of the sales volumes, increasing or decreasing. He is also the co-author of the book ”Manufacturing Cost Policy Deployment (MCPD) and Methods Design Concept (MDC): The Path to Competitiveness”, published at Productivity Press New York (USA), 2017, as well as the author of the book ”Manufacturing Cost Policy Deployment (MCPD) Transformation: Uncovering Hidden Reserves of Profitability”, published at Productivity Press din New York (USA), February 2018.

Alin Posteucă has more than 20 years of experience in Cost Improvement consulting and training. He has a PhD degree in Industrial Engineering and a PhD degree in Economics.