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13-Project Management
Delays & cost overruns have significant implications from economic as well
as political stand point, so overall limiting the growth potential of the entire
economy. Delays & cost overruns reduce the efficiency of available economic
resources & limit the growth potential of the entire economy. Moreover, at
least as of now, most infrastructure projects in India are funded by
taxpayers money, making it all the more important to complete the projects
in the given time frame & costing.
Seminar Document- REDECON 2010
13-Project Management
The above fig shows the planned v/s actual schedule variance for various
infrastructure projects. It shows an overrun of about 20 months from actual.
Cost Overrun
13-Project Management
The above fig shows the average cost overrun v/s the original cost from
1991 to 2009. It shows an average cost overrun of 13.5 %
13-Project Management
The above table shows the average spend in infrastructure project till
March09
Infrastructure development was critical for inclusive growth, which would be
important for India to continue on the growth path said the than commerce
minister and now the road & transport minister Mr. Kamal Nath at the World
Economic Forum at Davos in January 2009.
Government initiatives, has led to increase in investments in Indias
infrastructure development. Political parties have realized the criticality of
infrastructure in sustaining economic growth. The Government recognizes
the need to improve infrastructure and has stepped up investments in this
direction. The 11th planning commission (2007-2012) has estimated that
investment in infrastructure - defined broadly to include road, rail, air and
water transport, electric power ,telecommunications, water supply and
irrigation - would increase from 4.6 per cent of GDP to between 7-8 per
cent. This would require an investment of more than US$ 320 billion over
the planned period.
13-Project Management
Infrastructure Segment
34,000
Modernization of highways
220,000
Railways ( Public )
180,000
Railways ( private )
120,000
Civil Aviation
40,000
Ports ( Private )
50,000
Freight Corridor
22,000
Power generation
Thus, the
planned
Planned
Investment,
(Rs in Crores)
420,000
JNNURM
60,000
Housing
150,000
Others
160,000
Total
future
1,456,000
13-Project Management
13-Project Management
Project
Quality
Project
Accounting
Project
Schedule
Streamlined Processes
Increased Quality
13-Project Management
Project Engineer
Inventory
Schedules
Finance Manager
Resources
Cash Flow
Progress
Progress
Accounting
Procurement
Management
P&L
Reports
Delays &
Overruns
Major
Issues
Chart
Organizations use several tools to help them track their projects, most
organizations use stand-alone independent systems or legacy applications
which only add to the problem. This leads to disjointed decisions throughout
the organization introducing delays, escalating
costs and lowering project quality.
Each business function requires access to the same project information, but
views it in different ways. For example, the top management always requires
project budgets and P&L statements for cash flow analysis. The project
management division requires information reporting on material
consumption and labor schedules to plan purchases to enable smooth
executing of the project. The finance and accounting team needs to look at
the material purchase requests from multiple projects and optimize
purchasing to drive the lowest cost across all of available vendors.
13-Project Management
Project Planning
Project Execution
Project Accounting
MS Project/
Primavera
Project Planning
Schedule &
Plan
Project Execution
Payment
Approvals
Review
&
Approve
Update
Inventory &
Resources
Plan
Manpower
requirements
Project
execution
Compute
Earned
Value
Plan
Inventory Compute
purchases total work
completed
Modify
Schedule /
Plan
Consolidate
P&L
Capture
Daily
Progress
Compute
Payments
Project
execution
Project Accounting
Procurement
Raise
Invoices
13-Project Management
The ideal solution to project work flow is the integration of all the various
stages of the project from project planning, project execution to project
accounting, through automated processes, digital diaries & real time data,
giving the project an end to end visibility.
ERP Limitations
Owners
PMC Firms
Contractors
For a construction company, the quality and timeliness of its data spells
success or failure. A solution to this is that along with all other modules a
total project management system is needed which will integrate finance,
controlling, materials management & sales & distribution. All this while
keeping the companys core business requirement in mind.
ERP does not automate construction specific processes such as estimation,
contract, inspection.
13-Project Management
Tender
Management
Project
Estimation
Contract
Management
Inspections
Facility
Management
Running Bills
Plant and
Machinery
EPM
Dashboards
Project Management
CRM
Human Resources
Payroll
Project Management
Industry Solution
Standard ERP
Customers are:
Government & Public Sector
Repeat Builders
Real Estate Developers
General Contractors
General Features:
BRIX 2009 helps save up to 10% of the project costs by giving:
y Detailed analysis of material costs over time
Seminar Document- REDECON 2010
13-Project Management
y
y
y
y
y
y
13-Project Management
Minimal
Configuration
& Training
Configuration
& training
Industry Best
Practices
Heavy
Customization
Industry Specific
Features
Reduced
deployment
timelines
Minimal
Customization
Has to be
redone during
ERP upgrade
BPS &
Requirements
Capture
Standard ERP
(Microsoft / SAP)
Standard ERP
(Microsoft / SAP)
Lower TCO
Increased
Time, Effort
and Costs
Minimal Cost
during upgrades
No industry
Best Practices
Mere
Automation of
existing
processes.
Infrastructure projects typically have a long lifecycle & can get very
demanding. These projects need accurate engineering estimates during the
budget phase, issue bids to contractors real time, manage the entire bidding
process, provide insight during construction, control costs & ensure timely
payment.
Surely, all this is a daunting task. In such a case creating accurate
estimates, avoiding project overruns & eliminating payment errors is the key
to increase profitability & competitiveness thus ensuring success.
This is only possible through a well designed ERP system geared specifically
for the infrastructure company. BRIX 2009, is just the product needed to
help in achieving success.
The advantage of using BRIX 2009
y BRIX follows Industry best practices:
Standard ERP platforms only automate the 4 Ms of any business i.e. Men,
Machines,
Material and Money. BRIX2009 with modules such as Estimate, Contract,
Inspect, Map and Land, automates construction industry processes and
supports all ERP platforms including Microsoft Dynamics AX and SAP.
Industry ready ERP systems will bring you the industry best practices so that
13-Project Management
13-Project Management
Customers
Aurigo has a huge list of customers who have found what they were looking
for in BRIX 2009.
Let us have a look at some of the customers & how BRIX helped them:
13-Project Management
Automation of
construction and
inspection processes
of a $3Billion bridge
reconstruction initiative
across the state of
Oregon
Digitization of 250
paper forms
Integration of digital
forms into IBM Filenet
Implementation of
Aurigo BRIX with
specific custom
workflows
Over 36 digital forms
replaced 250 paper
Forms
Integration into IBM
Filenet DMS
13-Project Management
y Benefits
Rapid deployment options and low risk of a commercial off the shelf product,
coupled with
the flexibility of user defined business rules and custom forms. 40% boost in
productivity, efficient information & management. The company could make
savings of over 10$M annually.
1. NCC
Implementation of
Microsoft Dynamics AX,
Microsoft project Server
and Aurigo BRIX 2009.
Completely Hosted
Solution
Efficient management of
multiple projects, sites
and customers
Expected to reduce costs
by 6%
Minimum burden on IT
department
13-Project Management
2. RDS:
13-Project Management
Scattered project
deployments sites across
the country
Failure of stand- alone
ERP Deployment
Need for a ERP solution
from a trusted vendor, with
field monitoring.
Implementation of
Microsoft Dynamics AX,
Microsoft project Server
and Aurigo BRIX 5.0 .
Remotely hosted and
managed
Efficient management of
multiple projects across
multiple sites with multiple
customers
Expected to reduce
operational costs by 8%
Minimal burden on the IT
department
13-Project Management
Automation/Streamlining of
existing manual contract
management process of
ongoing construction
projects
Elimination of laborintensive physical review
and errors
Implementation of Aurigo
BRIX with specific
custom workflows to
meet challenges
Integration with Oracle
Financials
13-Project Management
y The Benefits
Installation of BRIX has made the county more productive & has made its
information system more productive. The information retrieval speed was up
by 70%. BRIX led to efficient financial & customer record management. It
has also led to efficient reporting.
To know how your organization can benefit by adopting BRIX 2009. Please
visit www.aurigo.com