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Development And Implementation Of A Customized ERP System For Construction

Discover how a customized ERP system transformed AltaPro Electric Ltd.'s operations, providing targeted solutions, key benefits, growth opportunities, and major hurdles.

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Development And Implementation Of A Customized ERP System For Construction

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  1. Development And Implementation Of A Customized ERP System For Construction Bert Debruin President of Alta Pro Electric Ltd.

  2. 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

  3. Growth History ERP- 4 - CON

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. Major Hurdles • Finding The Right Developers • Do You Speak The Same Language? • Does Your Interpretation Match Their Interpretation? ERP- 4 - CON Image Credit: freedigitalphotos.com

  10. Major Hurdles • Understanding Software Design and Limitations • Differing Operating Systems • Differing Programming Languages • Differing Communication Environments ERP- 4 - CON Image Credit: freedigitalphotos.com

  11. Major Hurdles • Understanding Hardware and Infrastructure Requirements • Internet Bandwidth-Existing Infrastructure • Remote User Accessibility • Security Protocols ERP- 4 - CON Image Credit: freedigitalphotos.com

  12. 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

  13. 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

  14. Truths Along The Way • We Didn’t Necessarily Do It Right On The First Try ERP- 4 - CON

  15. Workflow Analysis ERP- 4 - CON

  16. Interface Design ERP- 4 - CON

  17. 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

  18. 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

  19. Program Human Resources EXISTING NEW PROGRAM • 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 ERP- 4 - CON

  20. Estimating And Proposals EXISTING NEW PROGRAM • 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 ERP- 4 - CON

  21. Pre-project Planning EXISTING NEW PROGRAM • 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 ERP- 4 - CON

  22. ERP- 4 - CON

  23. Project Management - Office EXISTING NEW PROGRAM • 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 ERP- 4 - CON

  24. Project Management - Field EXISTING NEW PROGRAM • 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 ERP- 4 - CON

  25. Material Acquisitions And Control EXISTING NEW PROGRAM • 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 ERP- 4 - CON

  26. Labor Management And Control EXISTING NEW PROGRAM • 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 CMS-4-PAP

  27. ERP- 4 - CON

  28. ERP- 4 - CON

  29. ERP- 4 - CON

  30. Quality Assurance And Control EXISTING NEW PROGRAM • 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 ERP- 4 - CON

  31. Project Closeout EXISTING NEW PROGRAM • 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 ERP- 4 - CON

  32. Costs To Develop New ERP • Capitalized Costs • Hardware Costs • Payroll For Employee Working With Developers • Revisions During Development ERP- 4 - CON

  33. Costs To Develop New ERP • Non Capitalized Costs • Evaluation Of Alternatives • Research And Development • Training Costs ERP- 4 - CON

  34. 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

  35. 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

  36. How Do We Measure Success? • Increased Productivity • Increased Efficiency • Increased Capacity • Increased Employee Satisfaction • Increased Client Satisfaction ERP- 4 - CON

  37. Validation Of Custom ERP • Measureable Decrease in Wasted Overhead • Improved Quality and Consistency of Information • Ease of Operations For Employees ERP- 4 - CON

  38. 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

  39. Take Away Moments...Future • More Frequent And More Accurate Information • Tighter Integration Of The Entire Organization • Streamlined Workflows • Company Wide Uniformity – Higher Quality ERP- 4 - CON Image Credit: freedigitalphotos.com

  40. This technology adoption project was supported in part by the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP) ERP- 4 - CON

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