A manufacturing ERP system is a powerful resource, providing the data, insights, and detailed reporting executives and managers need to manage complex projects, coordinate their resources, and make data-driven decisions to comply with their objectives and KPIs.
Implementing either a project management ERP solution or an ERP for project-based manufacturing provides enhanced control of variables that can impact the profitability and success of a project while identifying ways to improve productivity and efficiencies across the board.
Today, we’ll look at some of the typical stumbling blocks and problems associated with commercial project management and how an ERP system provides a comprehensive solution.
As every project manager will recognize, any mistakes in budgeting, forecasting, or costs can impact the viability of a project and cause knock-on effects on cash flow. Project management ERP systems reduce this potential by providing on-demand cash flow and spend tracking, categorizing expenditure correctly to each project, and ensuring any variances in expected revenues or outgoings are quickly flagged and actioned.
Depending on the nature of the project, a business may need to assign a range of resources, such as:
Detailed planning and clear oversight of capacity and production space prevent a business from accepting projects that exceed their scope or misallocating the resources necessary to deliver the project on time. Advanced scheduling provides further benefits, particularly in project-based manufacturing, ensuring that supply chains and production schedules are efficient and maximize the value of the resources available while splitting overheads between projects.
Project-based manufacturers also use resource allocation tools across the scope of their internal processes to manage inventory demands, supply chains, and availability where they produce custom or ad hoc orders and need to keep a firm grasp of the resources needed to meet the client’s requirements and how these slot into the bigger picture of ongoing process manufacturing.
Workflows are a fundamental element of project management, often with multiple moving parts and communications with colleagues, clients, supply chain partners, and outsourced vendors.
An ERP solution for project management creates a streamlined and standardized workflow to make it easier for managers to see where their operations are deviating from project plans, keep track of tasks completed or elements of the project pending approval, and ensure any important information is shared with the appropriate people.
Reporting is important throughout project management to provide:
Deploying advanced ERP solutions provides collated reporting, which involves drawing in data and metrics from across the business–including information from finance, HR, production, warehousing, logistics, and other departments.
The specific functions you need your project management ERP solution to cover will depend on the types and frequency of projects you undertake. Still, the key aspect is the ability to quickly digest information to correct errors before they become project-critical or maximizing opportunities to improve project outcomes.
Of the many capabilities of an ERP suite, automation can be a competitive advantage, allowing for easier task management, responsibility delegation to the appropriate team members, and duty input into calendars and production schedules to ensure you are on track to meet deadlines.
Cost tracking is also a valuable tool, allocating specific codes or job numbers to each project to categorize outgoings such as labor, materials, third-party costs, and inventory used. Tracking in this way means the business is always aware of the real-time expenses linked to each project and can better understand the profitability available.
Another way to leverage the features within an ERP system is to time track expenditure related to a project to deep dive into project phases or processes to determine which are the most cost effective and which have room for improvement. Detailed project analyses are useful for management reporting, future decision-making, and cost projections.
To revolutionize workflows and unlock data-driven insights for project success, implementing a purpose-built ERP system is a strategic move. The right solution provides oversight of budgets, resources, workflows, reporting, and more to minimize risks and maximize productivity across projects.
However, integrating new technologies can be daunting. At Navigator Business Solutions, we have extensive experience implementing ERPs designed for complete project oversight. Contact us today and our experts can review your operations, identify areas for improvement, and recommend proven solutions to meet your needs.