ABSTRACT
The main purpose of the manufacturing cost policy deployment (MCPD) system is to translate the long-term cost reduction strategy into actions and activities at each hierarchical level and at the level of every person in the company. This chapter presents the theoretical MCPD system and its approaches in the medium and long terms. It also presents the transition from productivity vision to the annual actions plans for each product family cost. The chapter discusses the benefits of the MCPD system for each hierarchical level in the company. It provides the aims and approaches of phases and steps of the MCPD system. The chapter describes the main ingredients of the long-term manufacturing target profit from the perspective of the MCPD system, namely price benchmark analysis, synchronization of life cycle targets (profit, price, sales, capacity, productivity, and cost) of investment and productivity. It presents the strategic alignment of opportunities for improvement to the manufacturing cost improvement need.
