A project based Enterprise Resource Planning system is an asset to any Professional Service organisation whose success is dependent on the profitable delivery of projects.
In order to ensure profitability on each of your projects i recommend that you consider using a project based ERP system to do the following:
Using spreadsheets or other ‘make-do’ solutions instead of the planning capabilities of a purpose built ERP system makes tracking and administering project progress and unreliable and arduous process.
By planning a project using a project based ERP system, you will have a better overview of the people, materials and expenses that will be required to complete your project on time and on budget.
Once your project has been planned out you will need to match it to a delivery schedule that provides a clear overview of when each task needs to start and when it should be completed by.
Don’t rely on individual spreadsheets to compile schedules as this will lack the company-wide overview of client interaction and resource that you need in order to deliver profitable projects. Project based ERP enables profitability by allowing your Project Managers to optimise your project schedules to deliver successful projects on time and on budget.
By developing plans and schedules from the outset, Project Managers will also develop a forecast of cost for the project. As the project progresses, costs should be checked against budget to ensure project profitability.
Project based ERP software enables project managers to understand how long it takes each person involved in a project to complete the task they were given; if it took them less time than first thought, the profit margin of the work might be higher and vice versa.
With budget vs actual reports to hand, it is easy to assess how a project is progressing and improve your firm’s bottom line profitability.