The Research On ERP Project Implementation Cost Control For Y Enterprise

Under the development of the global economic and market competition, many enterprises face the problems like slower growth, increasing the cost of production, unsatisfied market requirement, unstable profit etc., the traditional manufacturing industry---paper industry is just for an example. In order to improve the competitiveness of the market, make the enterprise bigger and stronger, they reform and implement the ERP information management system bases on the modern science and technology.The ERP project is a complex work with high risk, high technology, high investment. The enterprises are not only to spend lots of money to buy the infrastructure and software, but also have to pay a huge human resource cost, such as the implementation cost and training cost. According to the incomplete statistics, there are only 10%~20% enterprises implemented ERP successfully as per the budget, only 30%~40% implemented part of modules and failure as high as 50% in China. The important reason to cause this difficulty is the lack of scientific cost management and control for the ERP project implementation. ERP implementation involves many aspects in the enterprise, many of budget staff are too subjective and estimate the cost based on subjective experience, however, there are many uncertain factors to impact the cost in the project and the project team are lack of effective cost control to lead big difference between the budget and the actual expense and also increase the failure probability of ERP project implementation. Therefore, cost control has become a key factor in the ERP project implementation.Aimed at the ERP implementation cost estimation in Y enterprise, combined with academia and industry on the research results of the ERP system implementation cost control and used linear regression analysis method, to establish a cost estimation model to satisfy Y enterprise actual requirement in this thesis. According to this model to predict and plan ERP implementation cost, use Earned Value Management to control each stage cost in the whole ERP implementation process, check and analyze the difference between the budget and the actual cost, according to the cost control result to access the consultant in the finally, so that the ERP implementation cost can be controlled under the budget. This actual practice proved that the importance of cost control in the ERP implementation project.