How to provide reliable project calculations quickly?
By: Angelique Toorians, 9 August 2023
Do you recognise this: inaccurate project calculations because the parameters change regularly? Or your Sales department constantly has to go to the production floor because there has been a small change in the design of a product and therefore a new calculation has to be made for the customer. Procurement frustrated because suddenly more, fewer or different products have to be ordered. Logistics being faced with insufficient warehouse space or production unable to go ahead because the right parts are not in stock. Surely no one wants that!
How do you ensure a smooth workflow from start to finish, from the start of a project to the final invoice? So that you can present a reliable estimate, quotation and contract to your clients? That both your employees, and the customer are satisfied with all project results.
Some possible consequences of faulty project calculations
Financial risks – If, because of inaccurate calculations, you are not aware of the true costs and potential liabilities of a project, you risk unexpected financial difficulties or even bankruptcy.
Loss of quality – If there are insufficient or incorrect resources, products or parts available due to incorrect calculations, you run the risk that the quality of the work or materials being used will be lower. You definitely want to avoid this risk. Quality has the highest priority!
Internal cooperation – When calculations are inaccurate or incomplete, it affects the interpersonal relationships and cooperation within and between teams. Everyone depends on each other. It is important that all employees always work with the current and correct dataset and know exactly what the status is. One dataset is the outcome!
Delays – With inaccurate calculations, the risks of delays in project completion are very high. When there are insufficient or incorrect parts available, the inevitable result is project delays, extra costs and dissatisfied customers.
Unhappy customers – Delays, loss of quality and other issues due to incorrect or not up-to-date project calculations will inevitably cause dissatisfied customers. You want to be a reliable supplier, which is why accurate and reliable project calculations are essential to your business success.
How do you provide reliable project calculations?
If you want to avoid the above effects, it is essential that you have access to accurate and realistic project calculations, that the progress is constantly monitored and, where necessary, immediately adjusted and incorporated into the current calculations.
An up-to-date ERP system with reliable data ensures accurate calculations and project risks will be reduced enormously.
When all teams work within one system with the exact same dataset, the risk of running out of required materials and resources is ‘zero to nothing’. Purchasing knows exactly what to order and when. Logistics knows when goods are delivered, should be delivered and what is in stock. Sales can deliver up-to-date calculations to customers. Win-win-win!
Spiresolutions
Our Spire Essentials System is a robust, scalable and reliable ERP system that can be customised exactly to your products and projects with additional Building Blocks and Bespoke.
All your employees work with exactly the same dataset. Sales no longer has to go to the production floor to request information when parameters in a design have changed. Purchasing knows when which parts need to be ordered and the warehouse is used optimally. Production knows exactly what it needs to produce. Spire Essentials offers all of this and more.
Want to know more about the Spire System and Spiresolutions? Then take a look at our website. Contact us or make an appointment for a consultation with Serge Janssen Daalen, founder of Spiresolutions.
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