TietoEnator has finalized the implementation of its product cost management system at UPM-Kymmene’s Kymi mill in Kuusankoski, Finland. Product cost management system is part of TietoEnator Integrated Paper Solution (TIPS) product family, a comprehensive business and manufacturing execution solution for the pulp, paper, board and tissue industries. Product cost management system has been implemented as a part of UPM-Kymmene’s global initiative to harmonize its cost management process across all mills. 

TIPS Product Cost Management supports the Kymi mill’s entire production process – from pulping, paper making and offline coating to internal and external converting.  The system is also being used for recipe and specification management, make or buy decisions for pulp, and cost and material consumption forecasting based on the mill production schedule. The implementation at the Kymi mill follows a successful pilot at the Kajaani mill.  Currently two other UPM-Kymmene mills are in the progress of implementing the system.

“After seeing the features and tangible benefits of TIPS Product Cost Management in the successful pilot program, we decided to implement the solution because it will enable us to take an integrated and more efficient approach to cost management”, says Kai Latvala, Director, WFU Production Unit, UPM Kymi.  “We are very pleased with the implementation at the Kymi mill”, continues Kai Latvala.

“We are happy to partner with UPM to implement TIPS Product Cost Management at their mills. It is rewarding to know that our solution will play an integral role in UPM’s efforts to reduce cost and improve profitability”, says Sakari Ruotsalainen, Senior Vice President, TietoEnator Forest. 

TIPS Product Cost Management is one of three modules of TIPS Cost Management Suite, which contains modules for corporate level profitability analysis, mill level product cost management, and process level real-time costing.  Some of the benefits include the ability to compare production costs across multiple locations for improved sourcing decisions, support for accurate profitability analysis and understanding of what makes products, customers and regions profitable. Furthermore, users are empowered to make operational decisions in real-time, resulting in improved productivity. Within this area TietoEnator cooperates with Enterprise Performance Solutions (EPS), a provider of next-generation cost management solutions.

“Through close cooperation with the professional staff at the Kymi mill and TietoEnator, we have proven that TIPS Product Cost Management is particularly well-suited for complicated operations”, says Fredric Karlsson, President of Enterprise Performance Solutions. “Based on the experiences from the Kymi mill we are confident that TIPS Product Cost Management will support the cost management needs of all UPM-Kymmene’s mills”, continues Karlsson.

For more information, please contact:

Kai Latvala, Director, WFU Production Unit
UPM-Kymmene Kymi Mill
Tel. +358 204 15 3570
kai.latvala@upm-kymmene.com

Timo Jäätvuori, Sales Director,
TietoEnator Forest, Pulp and Paper Mill Solutions
+358 (0) 3 57 55520
timo.jaatvuori@tietoenator.com

Fredric Karlsson, President
Enterprise Performance Solutions
+1 (678) 428-0786
fkarlsson@epsolutions.net

TietoEnator is one of the leading architects in building a more efficient information society and the largest IT services company in the Nordic countries. TietoEnator specializes in consulting, developing and hosting its customers’ business operations in the digital economy. The Group’s services are based on a combination of deep industry-specific expertise and latest information technology. TietoEnator has close to 15,000 experts in more than 20 countries.
www.tietoenator.com

UPM-Kymmene is one of the world's leading forest products companies. The company's businesses focus on magazine papers, newsprint, fine and specialty papers, converting materials and wood products. The company has production in 16 countries and an extensive sales network comprising over 170 sales and distribution companies. UPM Kymmene's turnover in 2004 was close to EUR 10 billion and the group employs approximately 33,400 people.
www.upm-kymmene.com

Enterprise Performance Solutions (“EPS”) is a leading provider of cost management and profitability analysis solutions to large international process manufacturers.  Headquartered in Atlanta, Georgia, the company was founded by leading experts in the cost management field with one mission – to provide clients with the most flexible, comprehensive and innovative software solutions, enabling them to more effectively manage costs and increase profitability.
www.epsolutions.net