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KapStone implements MAJIQ's new cost management system to increase cost transparency between mills

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KapStone implements MAJIQ's new cost management system to increase cost transparency between mills

July 01, 2010 - 16:29

REDMOND, WA , July 1, 2010 (Press Release) -MAJIQ Inc. and Enterprise Performance Solutions, Inc. (‘EPS'), a leading provider of innovative cost management systems to the process manufacturing industry, today announced the successful implementation of the ELIXIR®Product Cost Management system supplied by EPS with Kraft papers and containerboard manufacturer KapStone Paper and Packaging Corporation (‘KapStone').

KapStone has implemented ELIXIR®Product Cost Management to obtain more accurate, timely, complete and consistent grade costing data and to consolidate to a central, harmonized costing system in order to better manage profitability decisions. The new, integrated system eliminates reliance on offline tools and increases cost transparency between the company's mills.

Installed in two KapStone paper mills, located in Charleston, S.C., and Roanoke Rapids, N.C., ELIXIR®Product Cost Management provides centralized recipe and grade specifications management, standard and actual costing, cost forecasting, and support for cost-to-serve reporting with respect to products, customers and markets. With these advanced capabilities, KapStone anticipates increased accuracy and timeliness in cost management processes, improved decision support and efficiency gains in managing recipes and price lists, and enhanced profitability forecasting.

The Product Cost Management system is closely integrated with the ELIXIR®sales order processing and manufacturing execution system delivered by MAJIQ. Through interfaces within ELIXIR®, gross and net production statistics are available for actual costing. Additionally, block schedule snapshots from the ELIXIR®system are used for advanced short-term cost forecasting.

"The ELIXIR®Product Cost Management system has made the grade costing process much more efficient and we have eliminated our reliance on offline and inconsistent spreadsheet tools." said Christophe Deslandes, Chief Information Officer of KapStone. "The close integration between the new costing system and ELIXIR®has significantly reduced the manual components in the costing process while improving its accuracy and consistency."

"We are excited about our abilities to increase the value MAJIQ has provided to our customer KapStone through extension of ELIXIR's capabilities into one of the most important management tasks of all - increasing profitability" said Steve Latham, President of MAJIQ. "MAJIQ's strategy of providing an enterprise-wide ERP software solution founded on ELIXIR®is made possible through our Partner Ecosystem. EPS, with its cost and profitability management enablers for ELIXIR®, is a vital component of that capability."

"KapStone has achieved complete cost transparency between its mills." said Fredric Karlsson, President of Enterprise Performance Solutions. "This was accomplished by implementing one grade costing system with one costing method for both mills."