Research On Cost Management Improvement Of The Z Company Under ERP Environment

With China’s accession to the WTO and more and more open market economy,manufacturing industries in China are facing severe challenges and enormousmarket crisis, which consume a lot of resources during development. On the onehand, there is a convergence among different domestic manufacturing enterprises interms of production process, independent core technologies and research anddevelopment ability, and a kind of competitive environment with high degree ofhomogenization products is formed. On the other hand, a diversified competition isformed between foreign enterprises with advanced management concept andadvantage of brand and technology and domestic enterprises, and foreignenterprises occupy more and more market share. According to the overall costleadership theory, the best choice for domestic enterprises is to implement theoptimal cost strategy at present. Therefore, the advanced experience and methods ofcost management of foreign manufacturing enterprises should be introduced toChina, and should be optimized, upgraded and further used.There are some problems in the cost management of domestic manufacturingindustries, such as laggard enterprise management concepts and means, faultyproducts design, deficient production plan management and lack of cost awareness.Resource sharing, which is founded through the enterprise resources plan (ERP)platform, can mediate between the supply chain of enterprises and productionprocesses, and further improve the level of cost management. At present, there arestill some problems in the domestic ERP cost management systems, such asdifferences between system itself and the business process management methods,limitations of management methods and lack of the classic case study. Therefore, itis difficult to drive the establishment and perfection of the whole cost managementand control systems, including quotation, design, procurement, production andfinance. In this paper, through the analysis of the development and application ofcost management of ERP system in manufacturing industries of home and abroadand open problems during the implementation of domestic enterprises, and on thebasis of the target cost method and four numerical comparison theory, a new idea ofERP cost control system is proposed, discussing the informationization demandanalysis of the Z Company and describing the detailed implementation plan and operation effect of the project.Starting from the current production and operation situation of the Z Companyin this paper, manage requirements of the Z Company after running the U8systemwere analysed. This requirement is as the research base, and a cost control systemmodel built on the basis of the ERP concept is developed, at the same time, moderncost management concept is set up and enterprise basic data management isimproved. This software comprises of a pricing module, a design module, apurchasing module and a manufacturing module, which are four important parts ofenterprise internal process management. This software can improve processstructure, minimize manufacturing cost, improve the operating profit, accelerate thequotation rate and the market response ability, and thus fulfil the enterprise’s goalfinally. There is a certain reference value for some enterprises with the same needs.