ABSTRACT
This chapter presents the connections between the external manufacturing target profits and the internal manufacturing target profits with some potential scenarios of sales volume evolution to create the prerequisites for the manner of establishing business expectations and productivity strategies to achieve manufacturing cost improvement (MCI) targets for each Product Family Cost (PFC). It discusses system elements for each MCI change driver of each important process of each PFC to identify the elements and areas where close scrutiny is required to continuously identify and measure losses and waste and associated cost of losses and waste's (CLW) in order to establish basic MCI strategies. The chapter outlines the necessity and direction of continuous survey of each important process of each PFC to determine the total current level of CLW for each system element of MCI change drivers. It identifies current assumptions for critical cost of losses and waste and defines the most credible assumptions for MCI strategies.
