Research On Production Cost Management Of TAGAL Based On SAP

With China’s entering to WTO as well as the acceleration of the market globalization worldwide, Steel industry has to face product homogeneity and more varied external environment. Reduce the cost is a very important method to improve the competitiveness. In the meantime, with the in-depth informatization, traditional cost management mode already can’t adapt to the requirements of the development of enterprises. Presently, cursorily cost management mode makes information distortion and charge improper, result in costing uncontrollable and wrong decision. So it is an urgent problem to improve management level, furthermore set up a reasonable cost management system and policy is a key point for steel industry to improve the market competitiveness.Concerning the above problems, depend on the reference of theory of Activity-Based on Costing Management, combine the experience of application in TAGAL, this paper searches an ABCM system for steel industry, develops a system integrated flow model of production cost management. Furthermore, makes a system prototype based on material tracking.This production cost management system which is under the SAP system and MES system has following characters. First, with the integration SAP and MES, using the uniform platform, the information island will be avoided; with the integration of BPM system, Process Island will be avoided. Second, the integration of the real-time cost accounting function can timely provide accurate cost information for enterprise’s decision making via integration between MES, other systems and SAP. Third, it improves the accuracy of cost accounting via reliability control in SAP and multi-dimensions analysis in BI. In summary, this production cost information system which is established through a scientific and systematic design and implementation provides timely and accurate information for steel enterprises on cost analysis, forecasting and business decisions, it is an important foundation to set up a scientific management system.