Why is it so hard to capture project cost in ERP?

Four reasons why your enterprise resource planning software can come up short on cost management in complicated manufacturing processes.
  • Reason #1: Disparate Systems

  • Reason #2: Multiple divisions/locations

  • Reason #3: Multiple modes of operation

  • Reason #4: Usability

  • The Solution

Carrie Ghai, IFS North America

Carrie Ghai, senior business software consultant, IFS North America

What to look for in ERP software

Usability and the ability to handle multiple modes and locations are essential traits. But naturally, the presence of truly native and embedded project management functionality is the core trait that ERP for project environments must offer. And there is a tremendous value difference between ERP with native project management and a point-to-point integration with external project management software. ERP vendors may claim to offer the former but in fact offer the latter. So it pays to ask a lot of hard and pointed questions to ensure that data in fact flows freely between project management and the rest of the application set. Some of these questions may include:

  • Is the demand for the project schedule driving the material demand schedule?
  • Are my purchase orders truly connected to that project?
  • As something changes on the purchase order, how is that change reflected in the project?
  • If the budget changes, does the budget impact what I have committed on purchase orders?

 

Carrie Ghai is a senior business software consultant with IFS North America. She has been in the enterprise software industry since 1996. Prior, she held a number of positions in industrial firms including Vice President of Customer Service in North America for Tetra. She holds an accounting degree from Ealing College of Higher Education and qualified as a Certified Accountant (UK).

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