• 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

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).