Project management is a priority for many companies. Fortunately, they generally have an ERP system to assist them. However, some businesses are still unaware that an ERP solution could make managing their projects significantly easier. Project management entails having an objective and controlling the variables as you move toward completing the project. ERP guides you along that path.
Here are some of the issues you have likely encountered with past projects, along with a list of the ways an ERP system can help you with your next one:
General project management pains
Every business wants to improve efficiency, grow their customer base, and use their resources effectively. Smart project management is one way to get there. But first, it’s critical to address the following four pain points that you must successfully overcome:
- Faulty budgeting
If you haven’t budgeted your projects correctly, you’re at a higher risk of losing track of your cash flow. Track your project budgets by estimating the cash flow in and out of the business before, during, and after completing a project. Once budgeting is complete, you’ll also want to make sure you have an established structure for receiving and processing payments to increase your cash flow.
- Misapplying your labor
You won’t get the full benefits of your resources if you aren’t allocating your labor correctly. Look at your project’s budget and the available talent to better understand who should be working on which project and how long they should be on it. Also, make a list of the project’s priorities, meaning which tasks cannot be started until others are finished.
- Not understanding your workflow
If you don’t understand your workflow completely, communication issues between staff members are bound to happen. To grasp how your workflow should go, work out the specific role and goals for each key player in the company. Then fit each one of them to their part in a standard workflow. You’ll soon see how your operations should be running or where you might be coming up short. You can also determine if there are communication gaps.
- Little or no reporting
Without reporting tools, you could lose visibility into the project. Reports are not just a way to see how a completed project looks, but also a way of seeing into a project while it’s underway so you can catch mistakes before they doom the project to failure.
Project management features and tools of cloud-based ERP
More than any other benefit, the real-time information that ERP provides helps you allocate your resources. It also allows you to take corrective actions that could end up saving your project. And cloud-based ERP will be there to assist you throughout the life of the project.
Here are a few of the specific ways that ERP can improve project management:
- ERP systems assist with project planning
As you plan the project, ERP will update tasks with specific details. Task management can include everything from segregating the duties to defining them. The system will then allow for planning to ensure you meet your deadlines. And all of this is consolidated on one database, making it convenient to use.
- ERP tracks your project’s costs
After you designate a job number for a project, the ERP system will assign any project-related costs to that number. In addition to labor hours, the system will record subcontractor costs, purchase orders, and materials removed from inventory. These costs are charged to the project, giving the organization a real-time view of the project’s status.
- Business Intelligence (BI) tools provide project analysis
Because of BI, project milestones can be outlined, and attainable dates included as a guideline. These milestones are interim goals, and, using sorting and filters, you can group the costs within the milestone. You can now create a detailed analysis of the project and make it available immediately for management review.
- ERP works well for customized orders
Some manufacturers produce special orders regularly. These businesses will use ERP’s project management capabilities considerably. Subcontractors and other outside resources could be involved in these projects, so ERP supplier management tools will help coordinate these resources no matter how many subcontractors are included.
Project managers will quickly see the benefits of ERP software
Project managers will appreciate the advantages of ERP software, including enhanced profitability, accurate data, achieved deadlines, optimized equipment, and satisfied customers.
The professionals at Decision Resources, Inc. have the know-how and experience to ensure your ERP will fulfill your project management requirements while providing guidance and ongoing support. Please get in touch through our online contact form, call 412-562-9660, or email us at email@example.com.