ABSTRACT
The phase of Manufacturing cost policy deployment (MCPD) refers to understanding the context and purpose of manufacturing cost improvement (MCI) and setting targets and means for cost improvement. In this phase, the aim is to understand the company's current situation in terms of the need to reduce long-term costs and translate this need and this pressure at the level of annual process. The vision statement is critical to the whole process MCPD. Declaring the vision is the starting point to build all the steps of MCPD. Vision is the intention of long-term business. To substantiate long-term business and cost strategies, a continuous analysis of the external and internal environments of the company is required. The underlying goal is to anticipate the internal and external factors that could affect the company's operations and hence its competitiveness. Mid-term business strategy and mid-term cost improvement strategy are based on medium- and long-term profit plans of the company.
