VPK Packaging Group
ABC/M with Activity Analyzer at VPK Packaging Group
VPK Packaging is an integrated packaging manufacturer. The Group manufactures and distributes packages (corrugated cardboard, massive cardboard, and cardboard cases), recycles paper and produces packaging paper. With 1750 employees and a group return of over 12 million Belgian francs, VPK is one of the top European Packaging Producers.
Cost Prices at Oudegem Papier
The group counts 15 companies, organized in business units. The Oudegem Papier division yearly recycles 300.000 tons old paper to qualitative paper for packages for the Belgian and European market.
Next to the capital-intensive character (one paper machine costs around 2.5 million Belgian francs) in manufacturing paper, the vision of Oudegem Papier is central: low cost, high quality. This means on the one hand cost control (e.g. by scale effects) and on the other hand a service level as high as possible (e.g. logistics). Also the realization of synergies with group companies and customers became an important part in a competitive environment. This results in specific needs of the cost (price) system.
Activity Based Costing with Activity Analyzer at Oudegem Papier
In June 1998 started the ABC project aiming at following objectives: specifying costs, calculation of the contribution of products and customers in rentability and a better support to the budgeting process.
In an experimental phase of 6 months, the project group built a first model in Activity Analyzer. Thanks to the many possibilities of the software and the support of B&M Consulting, we were able to build an ABC model that charges the main parameters, which are so typical in paper production, in calculating cost prices. The model aligns to the existing information systems (e.g. analytical accounting).
After the implementation of the first basic version was clear that the job was far from done. The module Business Analyzer (budgeting) and the Visio Toolbox (process modeling) will allow us to make optimal use of the advantages of ABM and ABB. Other future developments are implementing Activity Analyzer in other group companies and establishing the link between the results from the ABC model and the Executive Information System.
Cost Prices at Oudegem Papier
The group counts 15 companies, organized in business units. The Oudegem Papier division yearly recycles 300.000 tons old paper to qualitative paper for packages for the Belgian and European market.
Next to the capital-intensive character (one paper machine costs around 2.5 million Belgian francs) in manufacturing paper, the vision of Oudegem Papier is central: low cost, high quality. This means on the one hand cost control (e.g. by scale effects) and on the other hand a service level as high as possible (e.g. logistics). Also the realization of synergies with group companies and customers became an important part in a competitive environment. This results in specific needs of the cost (price) system.
Activity Based Costing with Activity Analyzer at Oudegem Papier
In June 1998 started the ABC project aiming at following objectives: specifying costs, calculation of the contribution of products and customers in rentability and a better support to the budgeting process.
In an experimental phase of 6 months, the project group built a first model in Activity Analyzer. Thanks to the many possibilities of the software and the support of B&M Consulting, we were able to build an ABC model that charges the main parameters, which are so typical in paper production, in calculating cost prices. The model aligns to the existing information systems (e.g. analytical accounting).
After the implementation of the first basic version was clear that the job was far from done. The module Business Analyzer (budgeting) and the Visio Toolbox (process modeling) will allow us to make optimal use of the advantages of ABM and ABB. Other future developments are implementing Activity Analyzer in other group companies and establishing the link between the results from the ABC model and the Executive Information System.
Lead Software, Inc. One Tiffany Pointe, Suite 100 Bloomingdale, Illinois 60108
Tel. 630-351-5155 Fax. 630-351-2526 Email. sales@leadsoftware.com
Tel. 630-351-5155 Fax. 630-351-2526 Email. sales@leadsoftware.com