Do you struggle with making sure your engineering resources aren’t caught up in the sales process, manufacturing has the complete specs before production, or a delay in one project isn’t going to affect your entire pipeline? Accounting for every detail of a project, from design through manufacturing, is a huge challenge, especially for industrial equipment manufacturers, where projects become more complex.
Poorly managed resources and budgets can turn, what appeared to be profitable projects into a string of unfulfilled client expectations, cost overruns and less than anticipated profit margin. Don’t let this happen to you!
To help, many manufacturers are investing in more than just another project accounting system. Instead, they are extending the capabilities of their ERP application. Let’s look at some of the top benefits of what a fully integrated all-in-one solution can do for you:
- Analyze Costs and Real-time Reporting – You can quickly analyze the financial performance of internal and external projects and compare resources consumed, as well as, revenue earned for each project budget in real time.
- Monitor Profitability with Revenue Recognition – Use revenue recognition and work in progress (WIP) to manage profitability during a project, including the ability to free revenue from an invoice based on when the work was completed, and realize accruals during a general ledger period, such as time and materials.
- Manage Costs and Improve Planning – Evaluate and understand projects by breaking down project data into smaller components for costs and resources. Use the scheduling and management capabilities of Microsoft Office Project to improve resource management for projects of all sizes.
- Record and Re-use Knowledge to Improve Project Quality – Respond quickly and accurately to request for quotes by leveraging your previous project experiences and past results.
- Set-up and Manage Project Quotations Effectively – Set up project quotations by identifying tasks and specifying load capacity. Schedule tasks for work center groups, administer budgets, and monitor status to anticipate and avoid potential delays.
Many ERP applications offer advanced project management functionality. For example, Microsoft Dynamics AX and Columbus offer their customers, Advanced Project Management which extends the capabilities of an ERP so users can spend less time managing and administering projects and more time improving profitability and growing your bottom line.
To learn more about Advanced Project Management, Columbus and Microsoft Dynamics AX’s full capabilities click here and be sure to follow us on Twitter, like us on Facebook or connect with us on LinkedIn.
By Norman Carmichael, Manufacturing Practice Director at Columbus. Columbus is an award-winning Microsoft Dynamics ERP Partner, serving companies around the globe in the food, retail and manufacturing sectors.