ABSTRACT
This chapter provides answers to the following question: what are the steps preceding the introduction of the manufacturing cost policy deployment (MCPD) system? The answers are two ways: a technical answer (MCI targets deployment: preliminary steps) and an organizational answer (preparation for the implementation of an MCPD system). The preliminary steps needed to establish manufacturing cost improvement (MCI) targets are presented by approaching in detail the market-driven activities for setting annual MCI goal, the profit-driven activities for setting annual MCI targets, and the annual management coordinated by MCI targets and means deployment. The chapter presents the organizational steps necessary for the adoption of the MCPD system, as a way of fulfilling the multiannual production profit plan by productivity improvement. It also presents the elements underlying the MCPD system implementation decision and the prediction of its effects, the MCPD system organization, and the creation of its structures to support MCI and internal and external communication of the MCPD system purpose.
