ABSTRACT
This chapter focuses on the detailed presentation of the three phases and the seven steps of the manufacturing cost policy deployment (MCPD) system. The phases include manufacturing cost policy analysis, manufacturing cost policy development, and manufacturing cost policy management. The first two steps of MCPD include setting annual manufacturing cost improvement (MCI) targets and setting annual MCI means. The next two steps of MCPD address the annual manufacturing improvement budgets development for existing and new products and the annual manufacturing cash improvement budget, in order to support the annual MCI targets and means and the annual action plan for MCI means, including the annual individual plans for MCI. The last three steps include the engagement workforce to achieve the MCI targets, the performance level of the current state of MCI against annual MCI targets, and the tangible and intangible effects of annual MCI by daily MCI management.
