This case study reports the development and implementation process of
a production planning system for a carbon products manufacturer, The m
odel developed for the company provides an optimal production sequence
by minimizing the setup costs. Initially, the optimal sequence obtain
ed faced hurdles at the implementation stage due to : (i) lack of inte
gration of information systems among different corporate units, and (i
i) the insensitivity of the traditional productivity measurement stand
ards which do not account for the costs of quality but over-emphasize
the capacity utilization instead. Such hurdles were overcome by addres
sing performance measurement issues and information systems integratio
n. The integration of information in a timely fashion turned out to be
a major factor in successfully implementing the system. (C) 1998 Else
vier Science Ltd. All rights reserved.