Enhancing enterprise resource planning solutions for product cost structure optimisation : a strategic approach
Nguyen, Hien (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025060219007
https://urn.fi/URN:NBN:fi:amk-2025060219007
Tiivistelmä
Accuracy and transparency in product cost are primary criteria for company management to make strategic decisions in many aspects of the organisation. They can vary from pricing approach, product portfolio, manufacturing setup, process design, resource planning, or cost optimisation.
This thesis aimed to provide a solution for improving the product cost structure at a case company. The old cost structure was evaluated and considered as inadequate that led to inaccurate product cost data. Therefore, this development was perceived as vital and urgent for business advantages and continuous improvement within the case company.
The development analysed the existing product cost structure and its calculation logics; simultaneously, it identified the business requirements and pinpointed the gap between the current and desired product costing. The thesis explored the capabilities of the Enterprise Resource Plan-ning (ERP) system, in which the product costing mechanism is located. Ultimately, the thesis re-search proposed system solutions to close that gap by changing the system configuration, data collection or even the way of working. The research did not solely focus on how to make the change happen in the ERP system, but also tackled the change management in an ERP-driven project. Change management involved the system, process, people, and data.
The development used the action research approach, which required team effort and collaboration. The repeated cycle of discussion, planning, action, testing, and review was carried out dur-ing the development project. Data was collected from interviews, observations and the ERP sys-tem to get insights and ideas for potential improvements. The proposals were discussed, tested, and the approved ones were deployed to the ERP system.
The research outcome was a new product cost structure, including multiple cost components with an explainable calculation method. Additionally, a new way of working was formed to ensure the reliability of reported data. The research also targeted a standardised template, which serves as a guideline for product cost setting in a manufacturing site in the case company. Conclusively, the goal was also to give all business stakeholders a holistic and clear understanding of product costing.
This thesis aimed to provide a solution for improving the product cost structure at a case company. The old cost structure was evaluated and considered as inadequate that led to inaccurate product cost data. Therefore, this development was perceived as vital and urgent for business advantages and continuous improvement within the case company.
The development analysed the existing product cost structure and its calculation logics; simultaneously, it identified the business requirements and pinpointed the gap between the current and desired product costing. The thesis explored the capabilities of the Enterprise Resource Plan-ning (ERP) system, in which the product costing mechanism is located. Ultimately, the thesis re-search proposed system solutions to close that gap by changing the system configuration, data collection or even the way of working. The research did not solely focus on how to make the change happen in the ERP system, but also tackled the change management in an ERP-driven project. Change management involved the system, process, people, and data.
The development used the action research approach, which required team effort and collaboration. The repeated cycle of discussion, planning, action, testing, and review was carried out dur-ing the development project. Data was collected from interviews, observations and the ERP sys-tem to get insights and ideas for potential improvements. The proposals were discussed, tested, and the approved ones were deployed to the ERP system.
The research outcome was a new product cost structure, including multiple cost components with an explainable calculation method. Additionally, a new way of working was formed to ensure the reliability of reported data. The research also targeted a standardised template, which serves as a guideline for product cost setting in a manufacturing site in the case company. Conclusively, the goal was also to give all business stakeholders a holistic and clear understanding of product costing.