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Manufacturing Cost
Policy Deployment
(MCPD) and Methods
Design Concept (MDC)
T H E PAT H T O C O M P E T I T I V E N E S S
)TQV8W[\M]Kʇ
Shigeyasu Sakamoto
Manufacturing Cost Policy
Deployment (MCPD)
and Methods Design
Concept (MDC)
The Path to Competitiveness
Manufacturing Cost Policy
Deployment (MCPD)
and Methods Design
Concept (MDC)
The Path to Competitiveness
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Section i introduction
v
vi • Contents
Section ii opener
xiii
xiv • List of Figures
Figure 3.5 Target profit/product from MCI for the next 12 months......114
Figure 3.6 Map of the production areas for losses and waste
collection ..................................................................................117
Figure 3.7 Background on manufacturing cost policy analysis for
the manufacturing process (cost center.) .............................133
Figure 3.8 Set equipment improvement targets coordinated by
the need for MCI (for a cost center: equipment.) ................151
Figure 4.1 Deployment of losses, waste, and costs for each process
of product family cost: (a) process 1, (b) process 2,
(c) process 3, and (d) process 4 ..............................................195
Figure 4.2 Manufacturing cost policy development—setting MCI
means for each losses and waste from each process for
continuous fulfillment of MCI targets .................................201
Figure 4.3 OEE trend for replacement equipment “p” (Year “N”) ......221
Figure 4.4 OEE trend for new equipment (Year “N”) ...........................221
Figure 4.5 Equipment productivity and systematic and systemic
improvements ......................................................................... 222
Figure 5.1 Daily MCI management process .......................................... 245
Figure 6.1 Productivity improvement result ......................................... 264
Figure 6.2 Workers’ performance and range among Foreman .......... 265
Figure 6.3 Performance range among managers.................................. 266
Figure 6.4 Labor cost share in total production cost ........................... 267
Figure 6.5 Reduction of workers and productivity improvement...... 268
Figure 6.6 ROI improvement by productivity improvement ...............270
Figure 6.7 Labor cost in total cost and profit .........................................271
Figure 7.1 Method and performance contribution for
productivity ..............................................................................281
Figure 8.1 Method versus performance relation .................................. 305
Figure 8.2 MTM analysis of present and its standard method .......... 306
Figure 8.3 A result of ST auditing .......................................................... 308
List of Figures • xv
xix
xx • Prologue
Alin Posteucă
Preface
Increasing profitability and productivity is the fundamental task of the
management team of any manufacturing company, as in any other orga-
nization. The global competitiveness and the limited resources of the
planet require paying special attention to continuous reductions of costs
and the use of appropriate production engineering methods.
This book is organized into two parts: manufacturing cost policy
deployment (MCPD) and methods design concept (MDC). The reason
we combine the two in this book is that MCPD and MDC methodolo-
gies can provide unique approaches for the managers who are looking for
new methodologies for increasing productivity and profitability. These
two parts also introduce new methodologies that combine top-down and
bottom-up approaches where management and/or supporting staff have a
major role.
MCPD and MDC have been organized as methodologies for manage-
ment requirements, even though the two approaches have not much in
common. The two methodologies, born of the current challenges the com-
panies are facing, provide logical and objective reasoning to provide con-
sistent results directly from existing or future processes, supporting the
management that is interested in and searching for remarkable real gains
in their company. Both MCPD and MDC are the result of long-time syn-
thesis and distillation, being implemented successfully, totally or partially,
in many companies in the world. Over the years, we have received many
valuable ideas and comments from managers from various companies on
the current form of MCPD and MDC. However, continuous observation
of phenomena and principles of production from different production
companies led to the development of the two concepts. We express our
gratitude to all those who contributed directly or indirectly to the devel-
opment of MCPD and MDC.
The main audiences of our two subjects are top management, middle
management, and professional supporting staff who manage manufactur-
ing areas, because both MCPD and MDC consider the continuous align-
ment of all activities to the company’s strategies through a systematic and
systemic approach.
xxiii
xxiv • Preface
Alin Posteucă
Shigeyasu Sakamoto
About the Author
Alin Posteucă PhD is a management consultant in cost improvement, pro-
ductivity, and quality, and is a managing partner of Exegens Management
Consultants, Romania. Before this, 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 pro-
duction. His current research focuses on the manufacturing cost deploy-
ment 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 of cost
improvement. He has been actively involved in various industrial con-
sulting and training projects for more than 18 years in Romania. He has
published articles in various research journals and presented papers at
numerous conferences, on the subject of productivity, manufacturing
cost improvement, and industrial engineering. He is a certified public
accountant.
He has an MBA degree from University of Iasi, Romania, and received
his PhD in managerial accounting from the Bucharest University of
Economic Studies, Romania. He also received his PhD in industrial engi-
neering from the Politehnica University of Bucharest, Romania.
xxv
xxvi • About the Author
xxvii
xxviii • Abbreviations
[2] Kasteentoistaja.
— Mistä?
— On, siitä asti kuin olin tuon pituinen, sanoi Margit ja piti kättään
jonkun verran lattiaa ylempänä.
— Ah Margit!
*****
"Suoraan sydämestä" seura oli koossa. Istuntoa pidettiin nyt
niinkuin ennen Gudmund mestarin tilavassa, somasti sisustetussa
maalarimajassa. Maalikupposet, siveltimet ja muut maalarinkalut oli
korjattu pois omaan kaappiinsa, jonka ovilautaan joku tuntematon
taiteilija edelliseltä vuosisadalta oli kuvannut Luukas evankelistan
paraillaan tekemässä pyhän neitsyen muotokuvaa. Toiseen isoon,
runsailla veistokuvilla koristettuun kaappiin oli mestari pannut ne
pergamentit, jotka hän viimeksi oli maalannut siellä ennestään
säilytettyjen lisäksi. Hän oli aina ollut ujo näyttämään teoksiaan; nyt
oli Lauri puheellansa "tuhrimisesta" saanut hänet kauhistumaan sitä.
— Minä en tiennyt, sanoi esimunkki, että syyt ovat niin tukevia tai
— olkoon minun kannaltani sanottuna — niin vietteleviä. Kuinka
niiden laita nyt lieneekään, niin en voi pelkäämättä odottaa sitä
aikaa, jolloin moni ja ehkäpä selvimmät päät juuri tuon selvyyden
takia tulevat suosimaan ja julistamaan tätä maailmankäsitystä ja
siten syntyy sota raamatun käsitystapaa vastaan. Ja tuo sota tulee
nähdäkseni käymään syviin syihin asti ja koskemaan korkeimpia
uskonnon kysymyksiä, semmoisia kuin kuolevaisten pelastusta ja
kuoleman kukistamista Herramme Jesuksen kautta. Tämä
pelastustyö on, sanoo Paavali, yliyltäinen merkitykseltään ja käsittää
itseensä sekä maanyliset että maanalaiset. Mutta jos nyt maa on
kiertotähti kiertotähtien joukossa, ja jos lienee olemassa, kuten
Svante veli äsken viittasi, lukemattomia aurinkokuntia, joilla myöskin
on kullakin omat kiertotähtensä, niin tästäpä liiankin usea meistä
johtanee sen päätelmän, että ihmisen Jesuksen kuolema tällä
tähtipallolla ei saata koskea noita monia äärettömässä maailman
avaruudessa asuvia kuolonalaisia sukukuntia, eipä olla niille
tunnettunakaan. Minua hirvittää tämmöinen mahdollisuus, mutta
lohdutan itseäni sillä tiedolla, että meidän kohtalomme on Sen
käsissä, joka johtaa meitä totuuteen ja on tienä siihen.