MCPD Group on LinkedIn

By Dr. Alin Posteucă

The mission of the Manufacturing Cost Policy Deployment (MCPD) Group is to join together to network, to learn, to facilitate the free exchange of ideas, to maintain and build new relationships that aim to increase multi-annual profit through the MCPD system.

The concept of Manufacturing Cost Policy Deployment (MCPD) is defined as the process of translating the strategic objective of reducing production costs in the long run towards the improvement of annual systematic activities and towards annual systemic improvement actions by setting targets and means to improve process costs of families of products, in order to:

  1. Fulfill the annual improvement budget (both existing products and new products), by continuous investigation of the relationships between costs, processes, and losses and waste.
  2. Achieve performance of annual cash improvement budget.
  3. Direct and plan the systematic and systemic improvements through continuous reconciliation between the need to reduce costs and opportunities for MCI (Manufacturing Cost Improvement).
  4. Measure and analyze performance for MCI.
  5. Achieve cost targets at shop floor level.” – Dr. Alin Posteucă

In synthesis, the three phases of the MCPD system are as follows:

Phase 1. Manufacturing cost policy analysis

Purpose: Understanding the connections between costs, losses, and waste and cost reduction strategy for each product family to ensure the awareness of the need for continuous transformation of manufacturing companies in order to increase the real managerial commitment and to mitigate and/or eliminate the resistance to change of all the people in the company;

Phase 2. Manufacturing cost policy development

Purpose: Annual manufacturing improvement budgets to support the continuous targeting of targets and means in order to meet the longterm profit plan of both the external profit (from the sale of goods and services) and especially the internal profit (from systematic and systemic improvements of the manufacturing processes) through total involvement of all departments to achieve the continuous company transformation and by reducing reactive managerial behavior to operational challenges based on the annual action plan for MCI;

Phase 3. Manufacturing cost policy management

Purpose: Engage the workforce to execute MCI strategies to reduce or eliminate incorrect and incomplete improvement projects implementation by continuously targeting these improvement projects through the need for unit cost reduction imposed by the market.” – Dr. Alin Posteucă

Happy Networking on MCPD Group!

Dr. Alin Posteucă is the founder and CEO of Exegens®, a global consulting firm specializing in operational excellence, cost improvement and business performance improvement. He helps his customers create and implement profitable strategies and cost improvement programs that ensure a unit cost improvement of at least 6% per year for each of the next 5 years by maximizing the efficiency and effectiveness of operations.

He is the author of the Manufacturing Cost Policy Deployment (MCPD) concept published in three books at Productivity Press - Routledge/CRC. The latest, Manufacturing Cost Policy Deployment (MCPD) Profitability Scenarios, centers on his core belief that annual and multiannual target profit can be achieved regardless of the evolution of sales volumes, increasing or decreasing.