Case Study Of Costing Management Of ERP In HT Foundry Company

With the more intense enterprises competition and the more decrease of product profit, the cost management is more and more important in the enterprises. It just likes the gold in the mine. It means the less management investment may save the higher cost with the deep digging. The production process is complex in the casting industry, which includes normally serveral procedures, such as, coremaking, modelling, melting, casting and clearance. Each procedure can be detailed sub-procedures. The casting production’s research design, raw material purchasing and the cost consumption from the feeding to the output is less the objectification, direct and clearance than the cold processing. Therefore, it is difficult to cost control and analysis. So it is very important for the research of the cost management in the cast industry.The modern casting enterprise introduces ERP system step by step, which improve the management level, increase the competition in the market. The mode of cost management continues to update. The traditional accounting mode with cost accounting is difficult to match with the quick development. This research uses the method of example analysis to analyze the cost management mode of QAD system in HT casting company. It compares between the actual cost management mode with EXCEL made by hand before and the cost accounting mode of standard work after. The process of R&D design and purchasing uses the standard cost method and the production process integrate into the standard cost method. It satisfies the need from the different shareholders’ management report and step into the line of the high technology enterprises.With the system blueprint design of the advance management and design philosophy, the mode of the cost management of QAD system in HT casting company breaks innovatively the difficulties of BOM design on the returns, reuse of molding sand particularly in the casting industry and solve the accurate calculation of manufacture cost on the line shape with the method of virtual modeling production line. It gives the practical experienceand lessons for the ERP implementation in the same industry.