Design and follow-up of customer/ project-oriented production Ensures cost control throughout a project Handles the entire project from quotation to invoicing
The solution helps you create and maintain all phases in a project, while keeping track of costs.
IBS Project Management provides support and control throughout the life cycle of an entire project, from quotation, project definition, planning and production, to delivery invoicing and cost control. In addition, you can have your projects run over several fiscal years, because the system supplies functionality to keep the books in order.
IBS Project Management is designed to handle these main phases of a project:
Structure Quotation Budget and cost control Purchasing Follow-up Invoicing
PROJECT STRUCTURE Project structure is where the phases of a project are defined. Each phase covers issues such as manufactured and purchased elements, activities such as drawing, engineering and installation, and services (including general costs, hotel, travel etc.). Special project Bills of Materials and Bills of Labor allow the definition of unique project items.
An invoicing plan can be defined for either an entire project or for each phase. You can define how the project structure should be handled for each project element line. A structure can be handled as a full structure or as additional items to a default structure. A full structure entails that the structure on the project element line can be used to create, for instance, a manufacturing order for single or multilevel and/or to update the existing basic data structure. If the structure is defined as additional material, the default structure and the additional material will be used when manufacturing orders are created.
When the element line is defined as an additional structure, the items will also be included in the manual reservation/order file, which will also affect the planning functions.
PROJECT QUOTATIONS A quotation is often the first step in the life cycle of a project. The quotation and the project itself share a common structure.
You can create different versions of a quotation, allowing the comparisons of different options, subcontractors etc., which also allows for the consideration of future cost prices. Once the quotation has been agreed upon, the quotation, or parts of it, can be conveniently converted straight into a defined project.
PROJECT BUDGET AND COST CONTROL The total project cost can be broken down into various subtotals by linking all the project elements to a cost code, such as engineering, installation, workshop, etc. The initial budget is set at project definition, when each element can have a cost price and sales price identified, building up the planned cost. Two kinds of budget changes can be made:Change orders, i.e. order increases or decreases which are agreed on with the customer Internal transfers, i.e. budget transfers between cost codeThe actual cost is built up via project production orders, reporting activities and services, material issued, purchase order reception etc. The system monitors the amount of cost commitments tied to the project via any open purchase orders that are linked to the project. You can make inquiries in different ways at any time.
Margins are calculated, and you have the option to finalize the resulting values with the forecast estimate to completion. These values can be transferred to the budget module in IBS Financials, as can the detailed transactions. This allows a project manager to do a full cost follow-up either by project, account or in total. Figures can also be frozen and copied to budget history for a given date, allowing the project manager to follow the evolution of the project. Additionally, in order to reflect how sales prices have been retrieved, a price code is added to each project phase element.
Costs and cost controls are automatically calculated for a project. For instance, the information for pre-calculated cost and cost control is updated immediately when changes/reporting are made against a manufacturing order that is connected to the project element. When a project phase is created, cost center information from the project's header level of data is used to determine default values. This cost center is also used when bookkeeping transactions and sales orders are created from the project phase.
START AND END DATE ON PHASES To minimize errors, the system allows you to define whether start and end dates for each phase are to be mandatory. The element that belongs to a phase will adopt the start/end date from the phase.
In order to improve the efficiency of the project process, alert handling events are pre-configured and connected to start and end dates. If activities outside the project affect the phase dates – such as a rescheduled manufacturing order – this will automatically create an alert to the handler for the project.
PURCHASING Purchase orders or requisitions for required items can be linked to the project or project quotation. Purchase requisitions can be transferred to purchase orders that will follow, for example, the normal IBS Enterprise purchase order flow.
If the project structure is defined as additional material/operation it’s possible to add items to a project element through connected purchase order lines. At purchase order creation it’s possible to enter project information, giving you better control of the process and its related purchases.
PROJECT FOLLOW-UP All planned and performed follow-up actions can be entered into the system. Item follow-up includes reservation at project definition, material issued to project, creation and reception of purchase orders, as well as creation of production orders from standard manufacturing planning functions, plus their issue from the warehouse to the project.
The system is able to handle transaction and activity-oriented costs for services as well as other activities. To improve accounting flexibility, accounting rules (transaction codes) are pre-loaded, making it easier to carry out accounting of purchase/cost difference with project and cost codes as accounting keys.
INVOICING Project invoicing is done via the standard IBS Enterprise invoice functionality. Two main methods of invoicing are offered:
Invoicing plan, based on the agreed plan and amounts Time and material based, where invoicing is done as per the detailed reporting transaction
To make both internal and external communication flow better, you can create and add text to an invoice plan on several levels. This text can then be printed on the invoice or used for internal purposes.
