ABSTRACT
This chapter addresses the need for the manufacturing cost policy deployment (MCPD) system, the five main barriers to the consistent and harmonious transformation of manufacturing companies and the presentation of the MCPD system (definition, description, positioning, principles, and basic characteristics). It shows the connection between cost reductions and manufacturing cost improvement (MCI). The chapter explains how to translate the cost strategy into daily activities by continually reconciling the top-down approach with the bottom-up approach for the annual setting of MCI. It also addresses the setting of MCI targets and means at the level of each product family cost (MCI policy deployment). The chapter provides a synthetic example of implementing the annual MCI policy deployment to understand how to set annual MCI targets and means to meet internal profit targets and support external target profit. It concludes by presenting the stakes of the MCPD system: uncovering hidden reserves of profitability.
