Manufacturing Cost Policy Deployment

 07/10/2015
By exegens

The major challenges of the top management are:

1) designing a goal system aligned with strategy, mission and vision of the company in order to continuously increase the competitiveness level including on price;
2) continuous reconciliation between the necessary cost level incurred by the market and process costs improvement opportunities;
3) performance improvement by developing a contextual managerial behavior in line with the expectations of employees;
4) development of transparent cost targets from the top management’s level, the middle mangement’s level, then the lower management’s level and finally at the staff, team leader and operator’s level;
5) ensuring the understanding of each employee‘s role in achieving the company’s cost targets;
6) providing a clear visibility of the current status of the cost objectives facing the planned state;
7) ensuring a continuous monitoring of the planning for systemic and systematic improvements to achieve the medium and long-term cost targets of the company.

In this context, Manufacturing Cost Policy Deployment (MCPD) refers to targeting the improvement projects to meet the company’s objectives by means of establishing a plan to reduce product costs by cooperation between Controlling department and productive and continuous improvement departments. Details…