ERP solution for Engineering, Construction & Operation

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1.    Engineering, Construction & Operation

Most Engineering and Construction organizations are project oriented. Operations need to be managed closely from project inception to deliveries to the ultimate fulfillment of all project requirements. In ERP, a project starts when RFI and RFP requirements are loaded into the database. From that point on, the entire project lifecycle is managed within the system: tracking changes and versions of requirements through the negotiations phase, connecting requirements to a project WBS, generating cost estimates and project time tables, milestone tracking, delivery schedules, proposals, contract reviews, project contract management, engineering, requisitions, production, testing, shipments, and the service agreement and its own life cycle. ERP will help you coordinate complex projects, manage vendors and subcontractors, and track and maintain procurement, construction operations and material management. You can also retrieve real-time information about engineering, schedules, and costs. Coupled with strong security capabilities, ERP is an ideal solution for engineering and construction contractors whose needs extend to complex BOMs and global supply chain interactions, tight engineering and rigorous QA cycles.

1.1 Process

ERP solution for Engineering and Construction1.2. Descriptions details

a.BUSINESS DEVELOPMENT

Leverage historical analytics from past projects to create successful proposals. Track opportunities and manage client interactions with integrated customer relationship management tools.

b.PLAN, DESIGN, AND PROCURE

Engage all stakeholders in planning and design with integrated information and collaborative tools. Identify risks early and plan mitigation steps.Optimize scheduling, sourcing, and procurement validated with past result data.

c.PROJECT EXECUTION

Get a complete view of the project progress and financial status. Fine-tune forecasts, and manage and communicate necessary change orders with all appropriate parties.

d.BUSINESS MANAGEMENT

Aggregate information from individual projects to an enterprise view. Manage capital assets effectively. Derive accurate and timely financial and performance metrics.

e.PROJECT CLOSEOUT

Smoothly transition from the design/build stage to the operate/maintain stage with accurate project data reflecting original plans, such as needed change orders, and including all permits and legal and regulatory certifications.

f.OPERATE AND MAINTAIN              

Manage maintenance schedules, workforce, and operations contracts and costs. Track changes to facilities from as-designed, to as-delivered,to as-exists.

2.    Engineering, Construction & Operation Industry Targeted Functionality

  •   Requirement management with load capabilities from original RFP document including Scope of Work (SOW) documents
  •   Automatic generation of price proposals into Word templates
  •   Project management strengths coupled with powerful budget and P&L capabilities
  •   Tight integration with MS Project including version control
  •   Engineering and R&D project management (pre-construction deliveries), with built-in stage gate processes and issue control
  •   Serial number tracking with advanced inventory management functions
  •   Testing and approval capabilities attached to any transaction in the system (WIP Inventory and others)
  •   MRB (Material Review Board)
  •   ECO management
  •   MRP with project pegging through the entire BOM to requisitions and PO’s
  •   Inventory management with “hard” project allocations
  •   Customer service and support management

3.    Issues & Solutions

3.1.Interface for weighing trucks

You can interface with a truck-weighing utility as trucks enter and exit loading areas, thereby affecting shipping documents, warehouse transfer documents, customer return documents, and goods receiving vouchers (GRVs).

  •   Input the (tare) weight of incoming trucks, obtained via the interface, by activating a hot button in the upper-level form of the relevant inventory transaction document. The weight appears automatically in a special Entry Weight column.
  •   Input the (gross) weight of outgoing trucks by activating another hot button in theupper-level form of the relevant document. The weight appears automatically in a special Exit Weight column.
  •   The net weight of the transferred goods is calculated automatically when the exit weight is recorded.
  •   You can run comparisons between the defined standard weight of the goods recorded in the document and their actual net weight.

3.2.Truck-Mounted Concrete Mixers, Pumps and Additional Components

ERP provides a viable solution that is fully customized for additional components (configurator) sold with truck-mounted concrete mixers and pumps, and for their maintenance.

3.3.Selling an Assortment of Items as a Single Unit

ERP enables you to define product assemblies that include different quantities of assorted products in various combinations. The list of products can be transferred automatically from one sales document to the next (price quote, order, packing slip, and shipping document), and quantities adjusted as needed, enabling quick and efficient delivery of the entire product set to the customer.

3.4.Defining a Standard Routing with Alternate Operations

You can define a standard production routing for a manufactured part, while maintaining the flexibility to report the production operations that were actually performed.

3.5.Managing Projects for Concrete Mold Rentals

ERP provides a project management module for working at the building site level, and a dedicated accounting module for the calculation of monthly charges accrued.

3.6.Managing & Tracking an Extended, Multi-Stage Sales Process

ERP allows you to manage a sales opportunity as a “sales project.” A sales opportunity consolidates the various tasks that need to be completed by the different units in your organization.

The sales BPM utility directs the progress of the opportunity through its various stages, and ensures that relevant personnel are notified of the opportunity status, as well as any delays that may occur, in an organized and methodical fashion.

The likelihood of closing the deal is updated according to the odds of closing defined for each stage of the process, and company managers receive up-to-date information on the pipeline, in terms of the financial scope of the deal versus the odds of closing, per sales rep, customer, and/or product.

3.7.Handling Deferred Income

In companies where income is distributed over a given time frame (e.g., for rental agreements, ongoing support), ERP enables automatic management of income distribution according to accepted accounting procedures over the period in question (the rental period, the service agreement). By reporting the period covered when billing the customer, the system divides the total income into fiscal periods and at the same time records the payment under Deferred Income. Periodically, you run a program which moves the correct proportional amount from the total Deferred Income payment to the appropriate income entry.

3.8.Handling Prepaid Expenses

There are certain types of expenses which by nature are spread out over a set period of time (e.g. rent, service charges, insurance). ERP allows for the automatic management of these types of expenses, distributing them according to accepted accounting procedures over the expense period (duration of the rental or service contract). By reporting the period covered when recording the vendor invoice, the system divides the total expense into fiscal periods and at the same time records it under Prepaid Expenses. Periodically, you run a program which transfers the correct proportional amount from Prepaid Expenses to the appropriate expense item.

3.9.Comparing Vendor Price Quotations

ERP enables you to link a number of price quotes to a purchase requisition (PR) document and compare them, in order to choose the best proposal. In addition, linking the quotes to a PR enables supervision within public institutions, to ensure that the winning vendor for the PR is chosen properly.

3.10. Advance Payment Invoices

You can produce an invoice that will act as advance payment for a sales order, indicating the amount advanced and without indicating order items. Upon finalizing the invoice, the Advance Payment Balance field for the sales order is updated. Each additional invoice opened for this order will have a certain percentage deducted against the advance payment (as per the percentage defined in the order), until its balance is cleared.

3.11. Interfacing with MS Project

You can create project plans in MS-Project, import them into ERP, and update the ERP project with imported data. MS-Project files are imported from within the project. The program imports the hierarchical activity structure (WBS), including start and end dates, human resources assigned to each activity, and additional details. In ERP’s Projects module, you can link activities to planned resources, such as work hours and materials taken directly from the Purchasing and Financials modules. This integration enables the production of Planning and Execution reports at all levels of the project, as well as the Revenue report.

3.12.Automatic Preparation of Project Invoices

ERP enables automatic creation of invoices for projects. Project customers will be billed for:

  • Project payments whose due date has arrived and that have been released for collection
  • Reported hours flagged as billable (work hours and reported expenses)
  • Customer shipments for projects flagged as billable
  • Service calls for projects flagged as billablePayments due for service contracts for the project

3.13.Planning a Project Payment Schedule

You can record payments that a customer owes for a project in a special form. Payments can be linked to WBS activities flagged as milestones. When reporting 100% completion of an activity linked to a payment, the payment is released for collection. When invoices for the project are automatically prepared, the program will prepare invoices for the released payments.

3.14. Requests for Vendor Price Quotations

ERP Requests for quotes (RFQs) can be generated automatically from purchase requisitions, for select groups of vendors: the preferred vendor for each item, or all vendors that meet a certain standard of quality. The receipt of quotes based on the same RFQ enables you to compare them, select the best one, and convert it to an order.

3.15. Avoiding Deviation from the Purchasing Budget

allows you to activate online budgeting from the very first stages of purchasing. Upon generating a purchase requisition, users will be asked to specify the budget item for which the desired part or service is being requested. Before the PR can be passed on to the organization’s purchasing department, the following conditions must be met:

  • The budget allows for orders to be placed
  • The user is authorized to place orders for the specified budget item

This mechanism accompanies all subsequent purchasing stages, right up to final authorization of the order and submission to the vendor.

3.16.Project Costing

ERP enables you to record planned costs of human resources and materials for each activity, which are updated automatically from system documents such as journal entries, orders, shipments, invoices, etc. In addition, every activity displays its cumulative cost (the total planned cost of its sub-activities), which is calculated by a special program.

3.17. Managing Customer Requests for a Proposal (RFPs)

Before planning a project, record the customer’s objectives as you understand them, or as recorded in the RFP document you received with the Scope of Work (SOW) document. The SOW document consists of a numbered hierarchy of requirements and sub-requirements, which can include extensive remarks explaining each requirement. Each requirement can also be linked to its own final product, where the price of the product determines the price of the requirement (e.g., how much a specific development activity in the project will cost).

During project planning, you can link each activity to the requirement it is intended to fulfill, and thus calculate the requirement’s projected cost and profit. If you are working with planning versions, you can then create sub-activities automatically from the sub-levels of the linked requirement.

SOW documents can be imported from MS-Word files provided by the customer. You can maintain versions of each SOW document, as well as versions of the remarks recorded for individual requirements.

3.18. Profit & Loss Analysis for Projects

ERP’s Projects module is integrated with all forms and documents in the system, enabling you to view a form displaying the current profitability of any project, including projected profit. This form takes into account all actual and projected revenue and expenses recorded for the project.

3.19. Project Planning and Execution

ERP’s Project Management module enables you to calculate planned costs of a project at the activity (WBS) level, including material and labor costs, and subcontractor costs. Total planned costs of all activities are collectively added to the projected cost of the project. As the project progresses and resources are invested, you can receive a continuous report of how well its actual execution conforms to its planning, from the project level down to its individual activities, so that if there is any deviation, it will be recognized as soon as possible.

3.20.Project Payment by Milestones

ERP allows you to determine project milestones by flagging project activities (WBS) as milestones for payment. Once 100% of a given activity is completed, the planned charge is released and an invoice is created billing the customer. This invoice, which is created as a draft, undergoes a separate authorization process

3.21. Profit & Loss Analysis for Projects

ERP’s Projects module is integrated with all forms and documents in the system, enabling you to view a form displaying the current profitability of any project, including projected profit. This form takes into account all actual and projected revenue and expenses recorded for the project.

3.22.Project Planning and Execution

ERP’s Project Management module enables you to calculate planned costs of a project at the activity (WBS) level, including material and labor costs, and subcontractor costs. Total planned costs of all activities are collectively added to the projected cost of the project. As the project progresses and resources are invested, you can receive a continuous report of how well its actual execution conforms to its planning, from the project level down to its individual activities, so that if there is any deviation, it will be recognized as soon as possible.

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