What is it about?
Achieving a long-term acceptable level of manufacturing profitability through productivity requires the total commitment of management teams and all staff in any manufacturing company and beyond.
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Why is it important?
Awareness and continuous improvement of manufacturing costs behind losses and waste is the core goal of the Manufacturing Cost Policy Deployment (MCPD). Achieving this goal will continually uncover the hidden reserves of profitability through a harmonious transformation of the manufacturing flow, coordinated by the continuous need to improve manufacturing costs. Setting annual targets and means for manufacturing costs improvement (more exactly for costs of losses and waste, and the exact fulfillment of these) requires mobilization of all people in the company to carry out systematic improvement activities (kaizen) and systemic improvement actions (kaikaku) of the processes of each product family cost. The MCPD system was born out of careful observation of the challenges, principles, and phenomena of manufacturing companies and the profound discussions with the people in these companies at all levels.
Perspectives
The book ”Manufacturing Cost Policy Deployment (MCPD) Transformation: Uncovering Hidden Reserves of Profitability” is organized in three sections. The first section presents the concept and the need for an MCPD system from a managerial perspective. In the second section, the transformation of manufacturing companies through the MCPD system is presented, more precisely the details of the initial steps of the implementation of the MCPD, the three phases and the seven steps of the MCPD, and the elements necessary for a constant and consistent application of the MCPD. In the last section, there are two examples of the MCPD implementation in two different types of industries, namely, manufacturing and assembly industry and process industry, and two case studies for the improvement of manufacturing costs for each (cost of equipment setup loss, using kaizenshiro; replacement of bottleneck equipment and associated costs of losses, using kaikaku; cost of quality losses with improving operators’ skills to sustain quality, using kaizen; and cost problem solving with the consumption of lubricants for one of the equipment, using A3).
Dr. Alin Posteuca
Exegens Management Consultants
Read the Original
This page is a summary of: Manufacturing Cost Policy Deployment (MCPD) Transformation, January 2018, Taylor & Francis,
DOI: 10.4324/9781315106328.
You can read the full text:
Resources
Manufacturing Cost Policy Deployment (MCPD) Profitability Scenarios: Systematic and Systemic Improvement of Manufacturing Costs
This book shows how to consistently obtain annual and multiannual manufacturing target profit regardless of the evolution of sales volumes, increasing or decreasing, using the Manufacturing Cost Policy Deployment (MCPD) system. Managers and practitioners within the manufacturing companies will discover a practical approach within the MCPD system that will help them develop and support their long-term, medium-term, and short-term profitability and productivity strategy.
Manufacturing Cost Policy Deployment (MCPD) and Methods Design Concept (MDC): The Path to Competitiveness
This book contains two new methodologies to improving the productivity and profitability of production systems that continuously increase competitiveness: Manufacturing Cost Policy Deployment (MCPD) and Methods Design Concept (MDC).
MCPD
Exegens® developed an implementing system for continuous cost improvement policy (Manufacturing Cost Policy Deployment, MCPD).
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