ABSTRACT
Manufacturing cost policy deployment (MCPD), based on a participative management, provides the visibility of objectives and targets of cost reduction through cost policy breakdown in each process of product families. MCPD establishes clear roles at all levels of the company to achieve targets for manufacturing cost improvement (MCI) and implicitly to achieve the internal profit plan by improving unit costs of production. In other words, MCPD offers manufacturing companies a methodology for determining a course of action leading to MCI. So, MCPD's scope of action aims at improving efficiency and effectiveness. The multiannual and annual contribution of MCI to profit must not change in an unplanned way in order to produce no adverse effects in terms of profit plan fulfillment. This contribution is allocated to each product family cost and thus to each product on its entire life cycle. The objectives and targets for cost reduction are based on productivity business model (PBM), especially on the productivity vision.
