Re: Implementing Cost Accounting -- BPCS-L

All -

Thank you for your responses. They have been very insightful.
I'm trudging through the volume of information....

Michael Perna
Business Systems Analyst - Finance

t. 310.832.8000 | f. 310.519.2605
P.O. Box 1950 | San Pedro, CA 90733 | USA, Earth
contessa.com

-----Original Message-----
From: bpcs-l-bounces+mperna=contessa.com@xxxxxxxxxxxx
[mailto:bpcs-l-bounces+mperna=contessa.com@xxxxxxxxxxxx] On Behalf Of Al
Mac Wheel
Sent: Wednesday, September 10, 2008 9:55 AM
To: BPCS ERP System
Subject: Re: [BPCS-L] Implementing Cost Accounting

RE: >> Does any one have any recommendations as to the best approach to

implement costing?

Yes.

1. Hire an expert in managerial accounting for manufacturing, and have
top
management give that expert appropriate support and backing. If you
want
to promote someone from within to such a position, then send that person
to
APICS classes to learn the fundamentals of manufacturing accounting
management, before addressing how BPCS does it.
2. Send that expert to BPCS classes to learn how costing works best
within
context of all of BPCS.
3. Bring back extra copies of BPCS Costing Manuals to share with
co-workers, and be available for reference by future employees. Perhaps

arrange for this documentation to be on-line available for reference by
all
employees. Encourage staff to study it.
4. Evaluate Strengths, Weaknesses, Opportunities, and Threats involved
in
the business.
5. Contract with a first rate BPCS tech support outfit and use their
advice
wisely.
6. Bring the BPCS Costing Professor to your facility to teach relevant
managers and rank and file in departments relevant to Costing working
effectively, so that company leadership and staff are all on the same
page,
with respect to making your future costing a total success.
7. Implement costing, with the help of BPCS Pilot Environment to verify

test everything setup correctly before using that to run the business.
8. Conduct periodic audits of your implementation, to identify areas
where
the company has gone astray, and how to efficiently fix the problems.

The above plan also applies to implementing any other strategie areas
for
running the business. Don't forget infrastructure that might not be
within
your version of BPCS, such as good security, supply chain,
communications
with customers and vendors, tracking engineering changes, managing
reduction of returns.

Or do the quick and very dirty way that everyone generally chooses to do
Do not even consider the notion of building a world class profitable
competitive company, that has 100% accuracy in inventory, engineering,
etc.
Stick with a version of BPCS that is 20 years obsolete.
Over time, replace personnel who know what they are doing, with people
who
can be hired for lower payroll.
Encourage staff to throw away good quality manuals as soon as the
individuals in question have learned whatever they wanted from them.
Don't spend any money on educating any of the staff in how factory
costing
works.
Don't spend any money on teaching any staff how BPCS costing works.
Especially do not spend any money on getting any good quality BPCS
costing
manual.
Have staff struggle with the documentation, suggestions from other
companies on discussion lists like this.
Blunder into trying out various superficial ideas on what constitutes a
good costing system.
Then annually spend thousands of dollars fighting fires with a stressed
out
staff, while running a very inefficient and costly system.
Don't waste money on auditors to identify problems, give advice on how
to
fix, or ISO process to improve the business.
-
Al Macintyre
15 year veteran of BPCS
25 year veteran of ERP
45 year veteran of midrange computing
60 year veteran of having a dangerous big mouth