index » » News




Implement std. cost in1 month? In 1 month!

“It is amazing that standard cost can be implemented within 1 month!” said Jessica, CFO of Tekni-Plex Technologies (Suzhou) Co., Ltd. It is ABiC who made this miracle.

Tekni-Plex, Inc., located in King of Prussia, Pennsylvania, is a global, diversified manufacturer of packaging, products, and materials for the healthcare, consumer products, and food industries. Tekni-Plex Technologies (Suzhou) Co., Ltd., a wholly-owned subsidiary of Tekni-Plex Inc., was established in November 2005 to serve the company’s regional pharmaceutical, medical, closure liner and consumer products customers, as well as to provide direct sales coverage for PVC specialty resins and compounds.

In the second half of 2009, Tekni-Plex Suzhou was under great pressure from its headquarter that China operation must start to use standard cost from 2010 Jan. so that HQ can have better control of China subsidiary’s cost and financial status. At that time, Tekni-Plex Suzhou has been using Kingdee K3 v10.3 for 2 years. But the system was initialized as an actual costing system and now must be re-initialized in order to implement standard cost.

After evaluation of several suppliers, Tekni-Plex finally decided to contract with ABiC to implement this project. The implementation started at the end of 2009 and finished by the end of Jan., 2010. The implementation consisted of 5 stages:

  1. The 4th week of Dec. 2009, blueprinting, i.e. requirement study, standard training for std. cost functions, training for master data preparation, etc.
  2. The 1st week of Jan. 2010, data preparation, i.e. std. cost master data preparation by the customer, master data migration from old database to new database, month-end closing and opening balance preparation, etc.
  3. The 2nd week of Jan. 2010, prototyping, i.e. simulation & testing, adjustment of std. cost data, revision and confirmation of blueprint, end user training, etc.
  4. The 3rd week of Jan. 2010, system initialization, i.e. data migration from testing database to productive database, opening balance input, system setting and close initialization, i.e.
  5. The 4th week of Jan. 2010, system go live, input of Jan. transactions into the new database, etc.

With the intensive cooperation of ABiC and Tekni-Plex, the project has achieved the following within the targeted timeline:

  1. Creation of a new database for standard cost
  2. Re-initialization of the ever-running finance, supply chain and MO modules
  3. Realization of std. cost master data input, calculation, operation valuation at std. cost, cost variance analysis, std. cost report output

With the implemented Kingdee K3 std. costing features, Tekni-Plex is now able to produce reports necessary for the HQ to monitor its cost status and operation status. By analyzing different cost variances, the management can quickly detect the problems in operation.

After the standard cost had gone live, Tekni-Plex continued to cooperate with ABiC to implement MPS, MRP and Shop Floor Control modules. This second phase has gone live by Apr., 2010.