• Strategic Kaizen versus Strategic Kaizen Trasformation By Alin Posteuca Exegens

Strategic Kaizen is not enough

By Dr. Alin Posteucă

Strategic Kaizen is important, but it is difficult to achieve continuous profitable transformation by aligns company goals (strategy) with middle management’s annual plans (tactics) and the annual work performed by employees (operations) in this way. In fact, Strategic Kaizen Transformation is needed.

So, in this book, I did not limit the Strategic Kaizen to mere strategic improvement approach. It goes beyond since its main purpose is to direct a complete and continuous strategic transformation to the ideal state of operations, to the state of Synchronous Profitable Operations (SPO) by meeting successive targets of Takt Profit, or “the target profit per minute in the bottleneck operation”, and implicitly by meeting the successive targets of takt time. Details…

In this context, the 5 Drivers in favor of consistent Strategic Kaizen Transformation, without investment, can be highlighted:

  1. targeting and improving lowering costs strategically and continuously (often between 30-45% of the manufacturing cost are improved);
  2. targeting and improving processing performance (often up to 50-60% of the cycle time is reduced; by innovating the method of work; in bottleneck operations);
  3. targeting and improving process utilization (often up to 40–50% utilization is increased by reducing losses in bottleneck operations);
  4. targeting and improving business performance through strategic approach (by continuously meeting the Takt Profit and implicit takt time targets holistically throughout the total lead time; reducing WIP by 50%);
  5. maintaining momentum of all employees for strategic improvements (the continuous measurement of non-productivity in costs ensures the direction and ethos of everyone to do Strategic Kaizen Transformation continuously).

Source: Alin Posteuca on LinkedIn

Strategic productivity and profitability consultant and researcher, Alin Posteucă, Ph.D., Ph.D. is transforming the way companies approach their strategic transformation. With over 20 years of management consulting experience, Posteucă has created effective concepts such as Strategic Kaizen, Takt Profit, KAIZENshiro Budgets and Costing. His research on production flow has led to innovative breakthroughs in strategic and operational productivity improvement.

Posteucă's investigation into typologies of losses and waste has identified feasible improvements that can achieve the ideal state of production flow, known as Synchronous Profitable Operations (SPO). His Takt Profit model allows the optimization of production planning, transforming profit per minute into objectives for strategic improvements achieved through Strategic Kaizen projects.

Posteucă's research has led to increased effectiveness in strategic improvements and has set the stage for future productivity in the world of manufacturing technology. He is laureate of the Romanian Academy of the "Traian Vuia" Prize, the highest scientific prize in Romania.