Application Of Cost Control In OTIS Company Based On ERP System

With the continuous development of market economy and the information management, the old cost control model has not meet the demand of the development of manufacturing enterprises, so more and more enterprises begin to realize the importance of cost management. In the more and more fie rce society, it is a necessary way to gain advantage in competition to improve corporation capacity and efficiency and reduce the product cost reasonably and effectively. In that case, it reveals the cost control is an indispensable important part for manufacturing enterprise.The article studies the cost control of Otis Elevator company based on ERP system. The first has analyzed the current statue and the external environment and internal problems that Otis Elevator company is facing. The purpose is to be able to help enterprise to keep the current market position and have a better market position. And then in the article, Otis company are introduced the main process for using the ERP system to cost control and analysis. The main process is starting from the theoretical basis of cost control, having an analyze combining with existing problems on Otis cost control, taking necessary solutions focused on the different problems. Furthermore, in the article, it proposes the difference between the traditional cost control and cost control which is using the ERP system and shows the advantage of cost control using the ERP system. What’s more, the content reveals combining with the target cost method to help the company to have an effective cost control in product design stage, can make the company’s products meet the personal private needs.Ultimately, company can achieve the goal of cost reduction, and ensure that all the indicators are to meet customer standards as well as reach the established profit.Apart from the research and discussion about Otis company cost control problems and solutions, the article has made some future outlook, found some other problems remained to be improved and put forward some suggestions, for improving cost control and management ability in Otis company. All those can make the company have a long-term development.