Manufacturing Cost Policy Deployment (MCPD) Transformation Uncovering Hidden Reserves of Profitability

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. 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. 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).

Introduction Part 1: An Introduction on the MCPD System Chapter 1: Starting From the Need for Continuous Cost Reduction Chapter 2: A MCPD System Overview Part II: The MCPD Transformation Chapter 3: Establishment of MCPD System: Steps to Begin Chapter 4: The MCPD Implementation: Designing, Building and Full Development Chapter 5: The MCPD Constant and Consistent Application Part III: The MCPD Practical Implementations and Case Studies Chapter 6: Application of the MCPD: Manufacturing and Assembly Industry Chapter 7: Application of the MCPD: Process IndustryConclusion Appendix 1: Checklist for MCPD System Transformation Appendix 2: Glossary of MCPD Terms List of Figures List of Tables About the Author Abbreviations Bibliography Index

Alin Posteuca, Ph.D, is a management consultant in cost improvement, productivity and quality and managing partner of Exegens Management Consultants (Romania). Prior to this position, he held top management positions in manufacturing and service companies.His major research areas include manufacturing policy deployment, manufacturing cost improvement, and operational management of production. His recent research includes the manufacturing cost deployment policy to translate the strategic objective to reduce the long-term production costs to the annual activities and actions of manufacturing cost improvement, by setting targets and means for the process cost improvement. He has been actively involved in various industrial consulting and training projects for more than 18 years in Romania. He has published in various research journals and presented papers at numerous conferences, regarding productivity, manufacturing cost improvement and industrial engineering. He is certified public accountant. He has an MBA degree (University of Iasi, Romania). He received his Ph.D. in managerial accounting from the Bucharest University of Economic Studies (Romania). Also, he received his Ph.D. in industrial engineering from the Polytechnic University of Bucharest (Romania).