In Your Face Reports--Dickeson

As of right now we say, "The customer pays for it." "The customer pays for normal process waste." We estimate it, tuck it in job cost jackets and forget it. This is sheer nonsense. Worse, it's deadly.

ERP/ERM/ABC, which I've labeled Statistical Print Production Management, or SPPM, starts with the dollar cost of capacity, and reports the costs of the activities consuming the capacity. This is 180 degrees from the old job cost model. Using this revised model, activities that use, misuse, nonuse and abuse the resource capacity are presented as IYF Reports in dollars based on the financial plan of the company.