Research On Standard Cost Management In ERP System Of Pinggao Electric

Henan Pinggao Electric Co., Ltd.(hereinafter referred to as "Pinggao Electric" or "Company") is a listed company controlled by Pinggao Group Co., Ltd., a wholly-owned subsidiary of State Grid Corporation of China. It is the first high- Tech high-tech enterprises, is China's high-pressure, high pressure, special high-voltage switchgear and power plant complete sets of equipment research and development,manufacturing base. As one of the major pillars of the national electrical equipment industry, only rely on continuing to strengthen cost control, reduce product costs,enhance the market competitiveness of products and keep the company's profitability and sustainable development, the company will stand out in the fierce competition in the domestic power transmission and distribution equipment industry under the premise of grasping the current market opportunities and maintain the long-term and stable growth of sales revenue and profit.Under the above background, this paper studies the development and application of the standard cost method in China's enterprises, especially the enterprises in the same industry. Based on the current situation and product characteristics of the Pinggao Electric Cost Management, through comparing the supply chain management and cost management the paper analyzes the necessity and feasibility of standard cost management of ERP system implemented by Pinggao Electric, and puts forward the standard cost management implementation scheme for ERP system of Pinggao Electric. That is, by using standard SAP system's powerful business integration function, the necessary elements in the calculation(BOM, raw material price, standard operating price, routing, principle of cost sharing) are embedded in the SAP system. Through the business sector of their respective elements of the management and maintenance, ultimately to achieve making standard cost in advance,controlling standard cost in the process, and analyzing and treating standard cost differences after that. At the same time to ensure the smooth implementation of the program, proposed the establishment of Pinggao electrical standard cost managementorganization structure, the responsibility of the cost center and related safeguards.This paper hoped that the implementation of this plan will help Pinggao Electric to improve the management of product cost, meet the needs of the Company's fast bid quotation, cost driver analysis, production process control and deepen performance evaluation, and promote the company management toward fine and intensive direction of development. The purpose is to enhance the core competitiveness of Pinggao electrical products, enhance the company's overall operating efficiency, but also for providing other companies in the same industry with reference about cost management.