Gathering All Financial Information Together in one Database
The main aim
of the all projects is to earn money. This is also the same for
construction companies. This is why a project manager must mainly
focus on the general status of the project to determine a route
to the end of the project rather than a single activity. Also the
upper management of the company must mainly focus on the general
status of the company by getting brief and detailed enough reports
instead of focusing on the general status of the single project.
Infact all units
have detailed enough reports mentioning the results of the operations
executing by their functional unit. But the problem is these reports
cannot come together under a single media, thus they have no coordination.
ERP systems gather the data resulted from the operations of functional
units of head office and projects, thus producing more detailed
and coordinated reports. In brief ERP systems produce very detailed
reports for highlighting the facts of the general status of the
project or the company as the managers wish.
Making all Staff Doing Their Own Jobs in More Standardized and
All the operations
done by all the units are gathered in one database and reported
from this database in ERP systems. By this way the managers have
a chance to compare the results with the previous days, weeks, months
or years in a very short period namely in seconds. Besides the managers
get the chance to compare the results based on costs schedule or
scope and can easily take necessary precautions for not to let the
project get away from the baselines. It becomes very easy to determine
what percent of the money spend return to the company as production
and what percent of money is sunk because of poor management or
loss of resources. In brief with ERP systems Human Resource Management
also becomes easy.
Procurement Management Under Control and Lowering the Warehouse
One of the main
expense items of a project is Procurement. Though procurement procedures
are linked to very rigid rules, it is still a procedure going on
such a way bounded to some staff in the company. It is not a surprising
event to find many unused materials in warehouse at the end of the
project or not having the necessary material during the execution
in the warehouse. Employers try to sell the excess materials at
the end of the project or try to use them in new projects where
as in lack of material in warehouse during execution, employers
have to procure the mentioned material with over costs. A good procurement
management must be integrated with the warehouse and the work schedule.
It must not permit to buy anything existing in the warehouse or
it must show the necessity schedule of the material to be procured.
In approving the procurement, the system must permit to give a cost
range which depends on previous procurement of the same type material
or which depends on the realities of the project. With ERP systems
all these mentioned details can be managed very easily even in seconds.
4. In ERP
Systems Data is used as input only for one time, it can be shared
and referential integrity can be easily checked.
the produced reports, the company can evaluate its processes and
can make some developments or can completely change the processes.
company will get an integrated information system in which all the
processes of the company can be managed.
the operations and their results will be recorded and documented
with the fastest, reliable, and a low cost way.
kind of operational or analytic reports which are true, consistent,
real time, detailed as wished, consolidated as wished and etc. can
lessons learn documents for future projects.
thing that is not to be overlooked is not to forget the reality
that ERP Systems do all these operations by differently interpreting
the operations done always. As mentioned before no matter how complex
the job is done behind the scene, the things that are executed in
front of the scene are the jobs that the companies are obliged to
do. The only changing thing is the tool used during the execution.
Here the prior choice of the companies must be to choose an ERP
system tailored to their sector rather than a general ERP System.
A sector specific ERP system can be an absolute tool for the company
with small tailoring. Today all over the world many ERP systems
exist serving from banking systems,, marketing companies, hvac companies,
defense industry, factories and etc. Construction sector is the
most complex, comprehensive and difficult sector of production sector.
That is why ERP systems for construction sector have to have more
detailed content. The projects in the construction companies are
generally not repetitive, the geographic conditions, the staff,
the client are mostly changing from project to project. Both the
changing working conditions, developing technologies, and the changing
needs makes the ERP Systems for construction companies to be updated
regularly. Regularly updating the solution based on these constraints
makes the return of the investment maximized. The shortest time
for gaining the benefits of adopting ERP systems is in construction
sector. Thus ERP systems must be adopted to all projects of the
construction company as soon as possible. Construction companies
who have to manage thousands of activities at the same time, controls
their system and executing projects by the aid of the ERP Professionals.