ABSTRACT
This chapter focuses on approaching manufacturing cost improvement (MCI) from budgetary perspective and from the perspective of establishing accurately the profitable improvement projects. It also focuses on manufacturing cost policy deployment (MCPD) is aimed at setting the annual budgetary targets related to MCI, constructing improvement budgets for existing products and new products, determining the impact of systematic and systemic improvements on cash improvement budget, and setting the means to fulfill MCI targets for each product family cost. The MCPD refers to directing all improvement projects based on the need for MCI in each main process of the production flow. The chapter analyzes the planning of the systemic improvement actions for a new equipment to determine the best time of transition from systematic improvement to systemic improvement to complete the annual plan for MCI. Any annual plan for MCI related to a product family cost often contains at least a systemic improvement project.
