development and implementation of a customized erp system for construction
DESCRIPTION
Development And Implementation Of A Customized ERP System For Construction. Bert Debruin President of Alta Pro Electric Ltd. History of AltaPro Electric ltd. Introductions Beginnings Of Our Journey Changes And Adaptations Through Our Journey Where Our Journey Brings Us Today. - PowerPoint PPT PresentationTRANSCRIPT
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Development And Implementation Of A Customized ERP System For ConstructionBert DebruinPresident of Alta Pro Electric Ltd.
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HISTORY OF ALTAPRO ELECTRIC LTD.
Introductions Beginnings Of Our Journey Changes And Adaptations Through Our Journey Where Our Journey Brings Us Today
ERP- 4 - CON
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GROWTH HISTORYCalendar
Year%
Change in Sales
% Change in Profit
% Change in Labor
Costs
$$$ Loss/Gain in Productivity
2007 +24% +2% +.32 -$22,601.002008 +49% Same -.22% +$23,135.002009 -21% +2% +4.6% -$383,502.002010 +25% -4% +.37% -$38,528.002011 +27% -8% +.85% -$112,314.002012 +14% Same +4.3% -$645,980.002013 +.01% +8% -.016% +$292,500.00
ERP- 4 - CON
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PROBLEMS WITH CURRENT OPERATIONS Lack Of Costing Control And Project Analysis Inconsistent Materials Acquisition Processes Communication Gap Between Office And Field Time Spent To Manually Input Duplicate Information Laborious Manual Process To Transfer Useful Data
From Estimates To Projects
ERP- 4 - CON
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TARGETED SOLUTIONS Integrated Timesheets And Purchase Orders That
Automatically Apply Costs To The Relevant Project Integrated Materials Database With Up To Date
Purchase Costs Full Access For Crew Leaders To All Project
Documentation Information Is Input Once And Carried Forward To All
Areas Needed Integrated Solution That Pairs Estimating And Project
Management Software
ERP- 4 - CON
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BENEFITS ACHIEVED WITH AN ERP Accurate Daily Job Costing With Key Performance
Indicators Ability To Manage Costs More Effectively Increased Efficiency And Accuracy Of Information
Sharing More Accurate Manpower Forecasting Stronger Feedback To Estimating Department With
Actual Project Information
ERP- 4 - CON
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REASONS FOR A CUSTOM ERP Adapt The Tools To Your Existing Workflows Grows Fluidly With Company Growth New Tools And Workflows Can Be Integrated More
Effectively Competitive Edge – Proprietary Workflows Developing A ERP Tests Existing Operations Exposes Current Limitations Providing Growth
Opportunities
ERP- 4 - CON
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REASONS AGAINST CUSTOM ERP Extended Duration Before Implementation Testing New Practices In An Un-finalized State Unfamiliarity With New IT Terminology And
Programming Development Larger Financial Investment Up Front Disconnect Between Developer And Company
ERP- 4 - CON
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MAJOR HURDLES Finding The Right Developers
Do You Speak The Same Language? Does Your Interpretation Match Their Interpretation?
Image Credit: freedigitalphotos.com
ERP- 4 - CON
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MAJOR HURDLES Understanding Software Design and Limitations
Differing Operating Systems Differing Programming Languages Differing Communication Environments
Image Credit: freedigitalphotos.com
ERP- 4 - CON
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MAJOR HURDLES Understanding Hardware and Infrastructure
Requirements Internet Bandwidth-Existing Infrastructure Remote User Accessibility Security Protocols
Image Credit: freedigitalphotos.com
ERP- 4 - CON
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ERP REQUIREMENTS FOR SUCCESS
Full Analysis Of Current Workflows Before CMS Development Began Cross Department Collaboration On Analysis Asses Effectiveness Of Current Procedures Employee Input On Ways To Increase Effectiveness
ERP- 4 - CON
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ERP REQUIREMENTS FOR SUCCESS
Analysis Of Current Interface Options How Are Employees Going To Access The Software? What Are The Limitations?
Image Credits: freedigitalphotos.com
ERP- 4 - CON
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TRUTHS ALONG THE WAY We Didn’t Necessarily Do It Right On The First Try
ERP- 4 - CON
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WORKFLOW ANALYSIS
ERP- 4 - CON
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INTERFACE DESIGN
ERP- 4 - CON
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CHALLENGES
Assuming Our Current Documentation Styles Would Easily Translate Into An Automated System
Assuming The Developers Will Know How To Address Every Design Request Easily
ERP- 4 - CON
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SUMMARY OF AFFECTED SYSTEMS Human Resources Contacts And Communications Estimating And Proposals Pre-project Planning Project Management In Office Site Project Management Materials Acquisition And Control Labor Management And Control Quality Assurance And Quality Control Project Close Out
ERP- 4 - CON
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PROGRAM HUMAN RESOURCES
Manual Entry Of Faxed In And Dropped Off Timesheets
Employee Training Records Not Accessible
Employee Records Kept In Excel With Limited Access
Contact Database In Reference Documents
Direct Input Of Timesheet Entry By Employees
Employee Training Records Visible To All Employees
Integrated Employee Database
Contact Database Directly Integrated
EXISTING NEW PROGRAM
ERP- 4 - CON
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ESTIMATING AND PROPOSALS
Estimating Department And General Manager Discuss Gaps In Future Work
Low Level History Of Bid Success
Estimating Documents Need Manually Moved In To Project Files
Estimating Department Has Direct Access To All Project Scheduling
Fully Detailed And Searchable Bid History
Estimating Files Linked Directly To Project In System
EXISTING NEW PROGRAM
ERP- 4 - CON
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PRE-PROJECT PLANNING
Project Manager Approximates Manpower Timelines
Manual Loading Of Estimate Data For Cost And Productivity Tracking
Automated Project Labour Duration Projection
Integrated Information Loading For Cost And Productivity Tracking
EXISTING NEW PROGRAM
ERP- 4 - CON
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ERP- 4 - CON
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PROJECT MANAGEMENT - OFFICE
Need To Manually Input Same Information Multiple Times
Various Excel Documents To Track Project Details
Critical Tasks Recorded Manually
All Information Is Entered Once
All Project Details In One System
Critical Task Procedures Produce Automatic Reminders
EXISTING NEW PROGRAM
ERP- 4 - CON
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PROJECT MANAGEMENT - FIELD
Access To Project Changes Through Printed Documents
Reliance On Email From Project Manager For Status Updates
Reliance On Office Staff To Load Current Material Pricing Into Project Folders
Online Access To All Current Change Documentation
Automatic Alert When A Change Is Approved
Access To Integrated Materials Database With All Current Pricing
EXISTING NEW PROGRAM
ERP- 4 - CON
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MATERIAL ACQUISITIONS AND CONTROL
Call Or Email Suppliers For Latest Prices
History Of Cost Not Searchable
Shipment Shortages And Damages Not Reported Immediately
Long Term Pricing Agreements
Full History Of All Material Cost Adjustments
Immediate Notification To The Office For Shipment Issues
EXISTING NEW PROGRAM
ERP- 4 - CON
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LABOR MANAGEMENT AND CONTROL
Labor Allocation Based On Personal Experience
Labor Issues Not Readily Apparent Until Project End
Excel Document Used To Project Number Of People Needed
Requests For Hiring Personnel Done Through Emails
Exact Labor History Of Projected Vs. Actual
Exact Numbers On Labor Overages
Project Overages / Shortages For Specific Type Of Employee
Integrated Detailed Personnel Shortage Alerts Sent To HR
EXISTING NEW PROGRAM
CMS-4-PAP
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ERP- 4 - CON
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ERP- 4 - CON
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ERP- 4 - CON
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QUALITY ASSURANCE AND CONTROL
Company Standards On Paper In Binders
Access To Updated Standards Through Email Or Printed Documents
Crew Leaders Send Training Requests To Office When Needed
Company Standards Filed Electronically
Online Access To Latest Company Standards
Integrated Training History With Alerts
EXISTING NEW PROGRAM
ERP- 4 - CON
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PROJECT CLOSEOUT
Project Manager Must Call Or Email Crew Leaders
Project Manager To Discuss Project Completion With Accounting
Online Access / Alerts To Dates Of Completion
Integrated Notifications To Accounting For Project Completion
EXISTING NEW PROGRAM
ERP- 4 - CON
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COSTS TO DEVELOP NEW ERP Capitalized Costs
Hardware Costs Payroll For Employee Working With Developers Revisions During Development
ERP- 4 - CON
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COSTS TO DEVELOP NEW ERP Non Capitalized Costs
Evaluation Of Alternatives Research And Development Training Costs
ERP- 4 - CON
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HOW DO WE IMPLEMENT NEW ERP? Parallel Adoption
Simultaneous Use Of New And Old Systems
Triple Training Company Wide Group Training Individual Site Training Individual Employee Training
ERP- 4 - CON
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HOW DO WE CONTROL IMPLEMENTATION? Gradual Rollout Improved Standard Operating Procedures Gather Employee Feedback And Monitor Pain Points Consistent Support For Employee Adaptation
ERP- 4 - CON
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HOW DO WE MEASURE SUCCESS? Increased Productivity Increased Efficiency Increased Capacity Increased Employee Satisfaction Increased Client Satisfaction
ERP- 4 - CON
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VALIDATION OF CUSTOM ERP Measureable Decrease in Wasted Overhead Improved Quality and Consistency of Information Ease of Operations For Employees
ERP- 4 - CON
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HOW CAN THE NEW ERP BE IMPROVED? Practical Testing of New Workflows Implement Native Estimating, Accounting, and Inventory
Software. Leverage Cloud Based Computing Power
ERP- 4 - CON
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TAKE AWAY MOMENTS...FUTURE More Frequent And More Accurate Information Tighter Integration Of The Entire Organization Streamlined Workflows Company Wide Uniformity – Higher Quality
Image Credit: freedigitalphotos.com
ERP- 4 - CON
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ERP- 4 - CON
This technology adoption project was supported in part by the National Research Council of
Canada Industrial Research Assistance Program (NRC-IRAP)