Manufacturing Cost Policy Deployment

The development of production companies will never stop. For this, they are constantly transforming and articulating/ re-articulating to the needs of the market, in a continuous search and improvement of the best production method.

Continuing the concern for continuous innovation in profitability through productivity, Exegens® has developed the Manufacturing Cost Policy Deployment (MCPD) system. The main goals of the MCPD system are to reduce costs and increase external and internal profit by improving productivity.

Expected results of the MCPD system:

reducing annual unit cost by at least 6% over the next 5 years;
increase the profit level by minimum 10% annually;
total lead time reduction of at least 10% annually;
increasing production capacity through systematic improvements of at least 8% annually;
increasing the process productivity up to 400%.

The transformation of production systems through the Manufacturing Cost Policy Deployment (MCPD) system aims to align all improvements to the external and especially long-term profitability plan. To remodel and continuously improve production systems, the MCPD system addresses three major stages and seven basic stages. At the same time, the MCPD system has a distinct approach both for the main activities to be carried out in the initial implementation phase and for the activities necessary for a consistent and consistent application.

Main phases and steps of the MCPD system:

Phase I: Manufacturing Cost Policy Analysis:

Step 1: Context and Purpose
Step 2: Targets and Means for Manufacturing Cost Improvement

Phase II: Manufacturing Cost Policy Development:

Step 3: Annual Budgets for Manufacturing Cost Improvement
Step 4: Action Plan for Manufacturing Cost Improvement

Phase III: Manufacturing Cost Policy Management

Step 5: Engage the Workforce for Manufacturing Cost Improvement
Step 6: Manufacturing Cost Improvement Performance
Step 7: Daily Management

Manufacturing Cost Policy Deployment (MCPD) has been published by Dr. Alin Posteucă in the books:

Manufacturing Cost Policy Deployment (MCPD) Profitability Scenarios: Systematic and Systemic Improvement of Manufacturing Costs – Productivity Press New York (USA), Oct. 2018.