How to “manage project resources” is a never-ending request, made by the construction and manufacturing industries from their business management software (ERP) providers. It always forms an essential pre-requisite when selecting a business management software (Accounting and Operations).
In recent years, there have been requests for their software to handle forecasting of resources, scheduling of labor, and allocation of resources. Unlike before, when it is just required for the software to harmonize resources and demand in a routine manufacturing setting.
For the effective and efficient management of project resources, there are different components, metrics, and disciplines that come into play.
PROFITABILITY AND KEY METRICS TO LOOK OUT FOR
The profitability of a project is centered on the cost allocations, the two metrics you should look out for are:
1. The cost and number of hours that “it would take” to complete the project.
2. The cost and number of hours “it took” to complete the project.
BUSINESS MANAGEMENT SOFTWARE (ERP) vs STANDALONE PROJECT MANAGEMENT SOFTWARE
To effectively manage project resources, there is a need for you to have software that is more dynamic i.e. it can take can manage risks, perform project costing and accounting, allocate resources, costs across multiple project sites, etc. Whereas standalone project management software may not perform accounting and financial transactions, it relies on other software to do that.
From a financial and cost standpoint, you don’t have a robust system if tracking costs is not done on the same software. There can be errors, delays, miscommunication, etc. Click here to get started with an ERP trusted by over 6.1 million businesses worldwide.
The standalone software gives very limited information. With an ERP, you can plan for future tasks and know the best resources and personnel to assign.
MOVING FROM BUDGETING TO ACTUAL
One thing is planning, another one is reality. The software serves as the bridge between budgeting and actual, it should be able to tell in real-time what was planned for, and what is being executed.
For any demand or usage of the project resources, it should be accounted for in the software, which means a project functionality feature should be part of your ERP system.
REFERENCE: erpnews
Leave a Comment