Posted on: March 29, 2021
Speed-Based Target Profit
Planning and Developing Synchronous Profitable Operations
By Alin Posteucă
The time when everything that was produced and delivered was profitable enough is long gone. However, profitable production planning is and will remain an eternal challenge to ensuring the prosperity and dignity of companies in a global market. Even though there are different approaches to achieving the target profitability through productivity in the production planning stage, these approaches do not guarantee consistent planning, creation, and sustenance of synchronous profitable operations for multiannual and annual target profit. In feedback to this reality, Alin Posteucă developed a new system called speed-based target profit (SBTP) and the new concept of takt profit.
SBTP is the profitable production management and manufacturing improvement system aimed at achieving synchronous profitable operations based on reaching the target profit per minute through manufacturing cost improvement and bottleneck profitability control for maximum takt time.
SBTP enables manufacturing companies to meet the TAKT PROFIT (the contribution of the unitary profit
as cash at the pace sold based on bottleneck operation capacity) and implicitly the annual and multiannual manufacturing target profit per period, regardless of future sales scenarios, increasing or decreasing, while their own production activities become maximum effective and efficient at the same time.
1) Provides detailed information of the SBTP mechanism to achieve a structured reform of profitability through productivity;
2) Presents in detail the elements of the implementation of the SBTP mechanism by predicting the possibilities to improve productivity, by determining current and future costs of losses and waste, by setting profitable production formula and by KAIZENshiro budgeting;
3) Provides detailed information about the control trilogy for KAIZENshiro for production planning;
4) Presents the essential elements of KAIZENshiro culture by presenting the detailed steps of daily management and its specific leadership;
5) Presents in detail the successful application of the SBTP system in two case studies."
The uniqueness of the book is reinforced by a detailed presentation of the successful application of the SBTP system in two case studies, as a way of life and a unit speed of target profit improvement ethos at all hierarchical levels, in two multinational manufacturing companies operating in highly competitive markets in order to address the synchronous profitable operations for both the sales increase scenario and the sales decrease scenario.
The effects of the SBTP system become evident after the first 3-5 years of sustained work to meet the annual takt profit, and some of the most important results can be: reducing the unit cost of products by improving conversion costs by 30-50% based continuous improvement of the cost of losses and waste; reducing unit cost of products by reducing the costs of work in process inventory by 30-40%; increasing labor productivity by lowering man * hour / product by 50-60%; increasing the flexibility level by reducing the set-up time for the equipment and assembly lines by 60-75%; the increase in overall equipment effectiveness up to 80-85%."
The Speed-Based Target Profit (SBTP) system has been developed in over 20 years of research, on the basis of knowledge gained in academic education and topped up from topical research published in academic and practitioner-based journals. This hard work has been the synthesis of a completely new approach, with a comprehensive coverage compatible with the cutting-edge academic theory.
The SBTP system has been applied for the last 10 years in more than 20 multinational manufacturing companies operating in highly competitive markets, in order to consistently achieve unit speed of target profit in the bottleneck process for fulfilling annual and multiannual target profit as a unique and effective way through a new profitable production planning paradigm that operates according to each production system. The manufacturing regime of the companies where the SBTP system was applied is both in the fabrication and assembly industry (automotive, electronic products, household appliances) and in the process industry (food, pharmaceuticals, processing of ferrous/non-ferrous materials).