Dongyu Engineering leverages SAP ERP and collaborates with TransInfo to achieve a refined cost accounting management system!
Customer Overview
Shandong Dongyu Engineering Machinery Co., Ltd. (hereinafter referred to as Dongyu Engineering Machinery) was founded in 1970 and is a key supporting manufacturer of engineering machinery in Shandong Province. It has been designated as a designated cooperative supplier by well-known domestic and foreign enterprises such as Caterpillar, Komatsu Shantui, JLG, Volvo, Trex, Baoe, etc. At present, the company has a construction area of 58500 square meters, fixed assets of 96 million yuan, an annual design capacity of 60000 tons, an annual production capacity of 55000 tons, a total of 830 employees, 68 management personnel, and 62 technical and quality personnel. With the continuous upgrading and adjustment of the industrial chain, costs continue to rise, and customer manufacturers have increasingly high requirements for Dongyu Construction Machinery. Therefore, with the promotion of the company's senior management, Dongyu Construction Machinery, with the advice of the Transinfo consulting team, utilizes SAP ERP to achieve refined cost accounting management.
Business Challenges and Objectives
Before the launch of the SAP ERP cost accounting management system, Dongyu Construction Machinery had always adopted an extensive cost management system. In terms of cost expenses, it could not effectively control the various expenses generated during the production process, which was mainly reflected in:
• Production costs such as labor costs, mold consumables, machine depreciation and wear expenses, water and electricity expenses, office expenses, etc. cannot be effectively and uniformly accounted for and allocated, and corresponding data cannot be obtained. In terms of cost control, good control and estimation have not been achieved, and costs are high but cannot be accounted for clearly;
• Due to extensive cost accounting management, Dongyu Construction Machinery is unable to effectively evaluate the output profits of various products, resulting in inflated profits and corresponding business processing efficiency and burden of relevant business departments.
Why choose SAP and partners
With a mature management system and clear development goals, Dongyu Construction Machinery places greater emphasis on information management:
• In the past 40 years, SAP has accumulated strong technical experience in global manufacturing informatization and Industry 4.0;
• TransInfo deep expansion in the SAP ERP mechanical industry has a mature product and solution system, as well as an experienced implementation team.
Benefits of digital transformation
With the joint efforts of Transinfo and Dongyu Construction Machinery project team, and the help of SAP ERP, Dongyu Construction Machinery has taken a new step towards refined management of production cost accounting:
• The refined cost accounting logic enables Dongyu Engineering Machinery to collect manufacturing expenses, correspond relevant cost elements, allocate production work orders, and effectively control the cost carryover of products, sales costs, and work in progress, providing clear data support for various expenses incurred in various business processes;
• Transforming from extensive to refined, with the help of SAP ERP's flexible report presentation, Dongyu Construction Machinery realizes the visualization of production cost data. With the help of reports, effective control is achieved at the level of cost analysis and gross profit analysis, and the input and output of each task are obtained in real-time to improve the overall business processing efficiency of the company. This provides accurate and efficient data support for the company's expense control, profit analysis, and decision analysis, It has laid a solid foundation for the further expansion of Dongyu Construction Machinery in terms of information technology.
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