ERP improves Project Management

Although many people still ignore this, ERP is a tool that can be seamlessly combined with project management. Project management involves setting a goal and controlling the variables till this goal is achieved. ERP can help you do exactly this.

Further below, you can see an overview of the ERP project management features you should keep in mind.

Resource allocation

No matter what your project is, ERP is a necessary tool that can help you track the progress of both human resources and processes, allocating resources when and where necessary for the successful completion of your project.

Change order

Most projects rarely progress as originally planned. Newer technology often needs to be incorporated in the project’s later stages. Your ERP solution can closely monitor such changes, redesign and readjust the workflow, so that the updated version can quickly become part of the process. This specific feature of ERP project management should also be able to dispose any components that are no longer deemed necessary.

Cost estimation

Projects are sold based on their estimated cost, plus the profit margin on the sale price (markup). An ERP system can track the actual cost as the project progresses and offer comparisons with the initial estimates, thus ensuring your profit margin upon the project’s completion.

Corrective actions

Corrective actions are there to resolve any issues that may come up during a project. Sometimes, it may be necessary to make a complete change of course, if the project’s profit is not the expected one. Corrective actions can also refer to specific quality processes for managing deviations from the original plan at discrete operations within the overall flow.

Time and billing

Some projects need to be completed as soon as possible, regardless of their cost -especially in certain industries, such as construction. This may be the case, for example, when the government is looking to assign an urgent construction project based on time and billing. In such a situation, the contractor can rely on their ERP system to track the actual spending and mark it up for progress billing throughout the project.

Real-time access to information

One of the main features of ERP project management is its ability to provide updated information, in real time, to all involved parties -from business executives to all employees working on the project.