Beyond Strategic Kaizen : Performing Synchronous Profitable Operations book cover
1st Edition

Beyond Strategic Kaizen
Performing Synchronous Profitable Operations

  • Available for pre-order. Item will ship after February 16, 2023
ISBN 9781032330358
February 16, 2023 Forthcoming by Productivity Press
296 Pages 49 B/W Illustrations

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USD $44.95

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Book Description

Currently, the challenge of manufacturing organizations is how to achieve the expected profit by continuously improving productivity or reducing costs. Manufacturing organizations have been using different improvement approaches to achieving cost reduction and productivity improvement for years by eliminating various losses and waste structures, such as excess inventory, excessive workforce, excessive capacity, excessive utility consumption, etc. But is the problem solved? Unfortunately no! Often manufacturing companies focus on maximizing the flow and meeting customer needs, yet forgetting their real aim -- to make a profit for their stakeholders. Too many organizations meet customer expectations by seeking to continuously synchronize the flow to market demand, but forget to check that they are doing it profitably enough to ensure business continuity and prosperity. When the financial results show that they are not so profitable, it is already too late. Moreover, the strategic direction of systematic improvements according to the sales trend -- depending on the current degree of production capacity utilization and the dynamic effects of production capacity utilization on cost structures -- is deficient in many manufacturing companies. So, would the failure of strategic and profitable systematic improvements be an option? Of course not!

If the ultimate goal of the organization is to create target profit for stakeholders, then the behavior and strategic systematic improvements must be directed to those scenarios, strategies, tasks, problems, and "production levers" that are best based on creating the target profit. That's what Strategic Kaizen Thinking does -- the simultaneous and consistent achievement of systematic operational and financial improvements in a strategic and operational manner. It achieves both synchronous operations at market demand by fulfilling Takt Time, as well as profitable operations in accordance with profit demand by fulfilling Takt Profit. In short, the Strategic Kaizen mission is striving for the fulfillment of the ideal state of operations called Synchronous Profitable Operations. In this book, the author, while presenting in detail the seven processes of Strategic Kaizen methodology, exposes the answer to historically incomplete thinking of productivity improvements for target profitability.

The uniqueness of the book is reinforced by the detailed presentation of the successful application of the Strategic Kaizen Thinking over the years in two multinational manufacturing organizations operating in highly competitive markets -- it addresses the Synchronous Profitable Operations for both the sales increase scenario and the sales decrease scenario. Moreover, it presents examples of the practical application of the "white-collar" Strategic Kaizen.

Essentially, by adopting the Strategic Kaizen methodology presented in detail in this book to consistently achieve the ideal state of a manufacturing organization, organizations will enter a new paradigm of thinking of strategic improvements -- Strategic Kaizen Thinking -- to meet multiannual and annual target profits in a unique and effective way that operates according to its own strategic and operational management system.

Table of Contents

Part I: Strategic Improvement for Profitability and Productivity

Chapter 1: Changing the Strategic Approach of Systematic Improvements

    1. Strategic Productivity Improvement Dilemma
    2. Is Conventional Strategic Kaizen Really Effective Enough in World Competition?
    3. The Continuous Strategic High Productivity Improvement
      1. Estrangement Results Between Company Health and Just Synchronous Operations
      2. Changing from Synchronous Operations to Synchronous Profitable Operations
      3. Synchronous Profitable Operations Should be Continuously Enhanced
      4. The Crucial Role of Strategic Productivity Improvement

    4. The Potential for Profitability Increases Based on Productivity
    5. Targeting the Strategic High Productivity Improvement
    6. The New Approach to Strategic Systematic Improvements
    7. The Strategic Kaizen for Synchronous Profitable Operations
      1. The Concept
      2. The Basic Image
      3. The Seven Basic Processes
      4. Five Problems Targeted to Be Solved

    8. Conclusion


Chapter 2: Current Condition, Basic Policy and Strategy

    1. Studying the Impact of Current Strategies on Operations and Lowering Costs
    2. Deep Understanding of the Company's Key External Factors
    3. Internal Strategic Capabilities
    4. Current Business Performance Against Expectations
      1. Operational and Financial Performance
      2. Current Level of Synchronous Profitable Operations

    5. The Basic Policy Framework for Strategic Kaizen
      1. At the Cutting Edge: Identifying Strategic Drivers
      2. Two Productivity Improvement Scenarios
      3. The Strategic Intent of Each Strategic Drivers

    6. Winning Key Strategies
      1. Systematic Productivity Improvement Strategies for the Sales Increase Scenario
      2. Systematic Productivity Improvement Strategies for the Sales Decrease Scenario

    7. Tracking Strategy through Strategic Key Performance Indicators
      1. Key Performance Indicators at the Strategic Level
      2. Stratifying Strategic Key Performance Indicators

    8. Conclusion


Part II: Strategic Kaizen Methodology

Chapter 3: Continuous Measurement and Interpretation

    1. Overview
      1. The Stake: Kaizenshiro Setting
      2. The Main Purpose: From Strategic Intent and Kaizenshiro to Identifying Must Win Strategic Kaizen

    2. First Process: Studying the Potential for Strategic Systematic Improvement Points
      1. Flow Structuring and Standardization
        1. Target Products
        2. Areas, Modules, Processes and Operations
        3. Costs: Structuring and Extreme Standardization for Extreme Improvement

      2. Deep Understanding of the Flow Synchronization and Standardization
        1. Lead Time
        2. Takt Time Synchronization: Bottleneck
        3. Buffer Size
        4. One Piece Flow
        5. Standardization and Rolling Losses and Waste

      3. Deep Understanding of the Work Method, Performance and Standardization
        1. Current Standard Time Analysis and Takt Time
        2. Innovative Work Method Design
        3. Performances: Equipment and Worker

      4. Deep Understanding of the Utilization and Standardization
        1. The Main Losses and Waste Structures
        2. Current Losses and Waste: Cause and Effect Analysis and Standardization
        3. Current Cost of Losses and Waste
        4. Critical Cost of Losses and Waste
        5. Probable Cost of Losses and Waste Behavior: The Impact on Strategic KPIs Targets

      5. Classification of Strategic Systematic Improvement Points
      6. Deliverables and Completion Criteria

    3. Second Process: Calculating Theoretically Takt Profit and Setting Stratified Expectations for KAIZENshiro
      1. The Synchronous Profitable Operations
        1. Takt Profit for Speed-Based Target Profit: Actual, Target and Theoretically
        2. The Ideal State of Synchronous Profitable Operations
        3. Capacity Bottleneck and Profit Bottleneck

      2. Setting Stratified KAIZENshiro
        1. KAIZENshiro for Manufacturing Cost
        2. KAIZENshiro Stratification: at the Performance Level
        3. KAIZENshiro Stratification: at the Module Utilization Level
        4. KAIZENshiro Stratification: at the Module Materials Level
        5. KAIZENshiro Stratification: at the Products and Factory Level

      3. From Kaizenshiro to Must Win Strategic Kaizen
      4. Deliverables and Completion Criteria

    4. Conclusion


Chapter 4: Annual Development of Strategic Kaizen

    1. Overview
      1. The Stake: Establishing the Mechanism for Identifying the Feasible Strategic Kaizen
      2. The Main Purpose: Embody the Annual Strategic Kaizen Way

    2. Third Process: Annual Financial Reconciliation
      1. Summary of The Annual Financial Expectations
      2. From Annual Strategic KPIs Targets and KAIZENshiro to Annual Takt Profit
      3. The Seven Steps of the Strategic Kaizen Feasibility Study
      4. Financial Catchball
        1. The Basic Approach
        2. Diagnosis of Strategic Kaizen: Scientific Basis
        3. Quantitative Analysis of KAIZENshiro

      5. Appraisal of Strategic Kaizen Feasibility and Setting Final Targets
        1. Under Certainty: One Target and Static Appraisal
        2. Under Uncertainty: Several Targets and Dynamic Appraisal

      6. The Turning Point from Strategic Kaizen to Kaikaku
      7. KAIZENshiro Budgets to Support Annual Takt Profit
        1. Planning, Resourcing, Budgeting and Execution
        2. KAIZENshiro Budgets Integrated Into Master Budget

      8. Practice of Strategic Kaizen Target Setting
      9. Deliverables and Completion Criteria: Feasible Strategic Kaizen Alternatives and KAIZENshiro Budget

    3. Fourth Process: Annual Strategic Kaizen Reconciliation
      1. Summary of The Annual Operational Expectations
      2. Target Production Time in Practice: From Annual Takt Profit to Module Synchronization
      3. Operational Catchball
        1. Top-Down and Bottom-Up
        2. Inside-Out and Outside-In

      4. Products and Modules with Deficiencies
      5. Developing Balanced Scorecard and KPIs
      6. Deliverables and Completion Criteria: Balanced Scorecards and Annual Operational Strategic Kaizen

    4. Fifth Process: Organizing, Planning and Learning for Strategic Kaizen
      1. Annual Strategic Kaizen Organization
        1. The 7 Strategic Kaizen Organization Principles
        2. Establishing Holistic and Synergistic Effects of Strategic Kaizen Organization
        3. Allocated Ownership for all Strategic Kaizen KPIs at All Levels
        4. Allocate Ownership for all Strategic Kaizen Projects

      2. Feedforward Control
        1. Visual Management for Strategic Kaizen
        2. Strategic Kaizen Meeting
        3. Review Mechanism: Risks and Uncertainties
        4. The Process of Personal Reviews and of Recognition Systems

      3. Planning for Strategic Kaizen
        1. The Five Steps to Strategic Kaizen Action Plan and Monitoring
        2. Definition and Preparation of Individual Plans

      4. Learning for Strategic Kaizen
        1. Continuous Learning for Continuous Strategic Change
        2. Strategic Kaizen as a Continuous Source of Training Needs

      5. Put Learning Into the Synchronous Profitable Operations
      6. Deliverables and Completion Criteria: Chronological Targets and Annual Master Plan

    5. Conclusion


Chapter 5: Implementation and Management of Strategic Kaizen

    1. Overview
      1. The Stake: Annual Strategic Kaizen Execution, Control and Reinforcement
      2. The Main Purposes
        1. Put the Annual Strategic Kaizen Plans Into Action
        2. Maintaining Momentum

    2. Sixth Process: Implementing Feasible Strategic Kaizen Projects
      1. Applying Structured Meetings
        1. Organizing Strategic Kaizen Meetings
        2. The Mechanism for Early Warning of Problems

      2. The Main Activities for Each Strategic Kaizen Project
      3. Concurrent Control for Each Strategic Kaizen
      4. Deliverables and Completion Criteria: The Intermediate and Final Status of Each Strategic Kaizen

    3. Seventh Process: Follow-up Management of Strategic Kaizen
      1. Formal Assessment Process
      2. Follow-up of Each Strategic Kaizen Implementation
        1. Standardization: A New Standard vs. New Practice
        2. Manage the Target Values of Each Strategic Kaizen

      3. Feedback Control: Evaluation of Gains from All Annual Strategic Kaizen
        1. Evaluation of the Right Things Measurements and Carefully Recordings
        2. Take Action Against Backsliding of Takt Profit and KAIZENshiro

      4. Return to the KPIs at Strategic Level and to the First Process of Strategic Kaizen
      5. The Main Strategic Kaizen Result: The Supremacy of Long-Term Competitiveness
      6. Tangible and Intangible Strategic Kaizen Results
      7. Deliverables and Completion Criteria: Operational and Financial Results, Lessons Learned and Recommendations

    4. Conclusion


Part III: Strategic Kaizen Sustain and Case Studies

Chapter 6: Strategic Kaizen Sustain

    1. Overview of Strategic Kaizen Sustain
      1. The Stake: Robust Long-term Execution of KAIZENshiro Budgets
      2. The Main Purposes of Strategic Kaizen Sustain

    2. The 7 Strategic Kaizen Principles
    3. Strategic Kaizen Design Considerations in Your Organization
      1. Incorporate Strategic Needs Into the KAIZENshiro Budget System
      2. Simulating Several Scenarios for Annual Speed-Based Target Profit (SBTP)
      3. Setting Strategic Kaizen Targets Linked to KAIZENshiro and to Strategic Target Results
      4. Specific and Customized Thinking for Each Company

    4. White-collar Strategic Kaizen
      1. Operational Challenges of White-collar Strategic Kaizen
      2. The Accuracy of Ideal and Target Takt Profit and KAIZENshiro Budget

    5. The Strategic Kaizen: Keys to Success
    6. Conclusion: Strategic Kaizen for Consistent Operational Excellence


Chapter 7: Case Studies on Strategic Kaizen for Performing Synchronous Profitable Operations

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Alin Posteucă, Ph.D., is a consultant in productivity and profitability and the CEO of Exegens® (Romania). Prior to this position, he held top management positions in manufacturing and services companies. His major research and practice areas include manufacturing policy deployment, profitable production planning, strategic kaizen, and kaikaku. His recent research and practice include the impact of Industry 4.0 on planning and developing synchronous profitable operations.

He received his Ph.D. in Industrial Engineering from the Polytechnic University of Bucharest (Romania) and Ph.D. in Managerial Accounting from the Bucharest University of Economic Studies (Romania). He was a PhD research fellow at Institute of Technology, Linköping University, Sweden. He received his MBA from the Alexandru Ioan Cuza University of Iași, Romania. He has a bachelor's degree in Accounting and Business Computer Science from the Alexandru Ioan Cuza University of Iași, Romania. In addition, he is a certified public accountant in Romania and a Traian Vuia Prize Laureate of the Romanian Academy (highest scientific prize in Romania).

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, and has been published in various research journals and presented papers at numerous conferences regarding productivity, quality, and industrial engineering.