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Project Based Manufacturing

Project Based Manufacturing

Project-based ERP systems need to be able to handle more than just the scheduling and engineering planning that most people associate with project management activities. A project-based ERP has to handle everything project-based. ERP in a project environment has to handle areas from tracking earned value in support of revenue recognition to detailed tracking of costs by project and task.

We have been providing our customers solutions to manage their Engineer-to-Order, Make-to-Order, Configure-to-Order and Assemble-to-Order businesses for many years. From our experience, some of the key concerns for project-based manufacturers:

  • No surprises -- When the end-of-project audit shows a project was less profitable than planned, it is a complete failure.
  • Late milestones -- Late deliveries are an issue for any company, but missing milestones in a project scenario means that your invoicing doesn’t happen on time. That typically leads to immediate cash flow issues. Removing this unpredictability means removing the burden of carrying heavy cash reserves to cover for these situations.
  • Over budget -- Not much needs to be said here. Just a plain lack of timely visibility is a huge problem.

5 Critical Areas in Project Based Manufacturing

  • Change is a given. How you and your systems handle it will make or break a company. In project-based manufacturing, embracing and managing change can not only be the competitive differentiator you need, but lead to exceeding a projects financial goals. You need a flexible system.
  • The success of a project-based manufacturer is built around bidding accurately and quickly. Many companies spend significant capital on CRM systems and then turn around and have an extremely manual system for creating quotes that at best approximate. You need a single integrated system to allow for fast, accurate quotes.
  • And last but not least, getting the system in and running so you can start getting the value from it as soon as possible. The system has to be built for you industry and mode of manufacturing. It has to be engineering oriented and inventory centric. The system has to be preconfigured as much as possible for project-based operations. Most importantly, it should be a system that can be rapidly understood and easy to use.
  • You need instant overall project visibility – a Dashboard. A significant amount of a Project Manager’s time is spent reacting to requests for status on shipping and costs unless there’s a single system in place. The cash flow of the company depends on having an efficient and disciplined process for meeting milestones and tracking cost to earned value. Failure in either of these process can be costly and in smaller companies lead to financial ruin.
  • Being able to convert meeting milestones and costs will lead to higher profits and industry leading cash flow. Your ERP system needs to allow you to manage milestones, cost, and earned value and proper revenue recognition.
Project Cost Control from AXtension

Project Cost Control from AXtension

AXtension Project Cost Control is a powerful Microsoft Dynamics AX add-on that enables Project Managers and Project Controllers, working in environments with large critical projects, to see the budget, cost registrations, project progress and estimates at a single glance, in one dashboard with drilldown capabilities. This allows them to be truly in control during the entire project lifecycle.

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Microsoft Dynamics AX: Features, Benefits & Deployment Models

  • Features
    Designed specifically to meet the needs of project-driven businesses such as Architecture, Engineering & Environmental Services Firms, IT & Management Consulting firms, Advertising & Marketing Agencies, and Contract Reseach Organizations, our industry solution helps services businesses:
    • Connect financial, client, project, and resource related processes to eliminate redundant effort, improve accuracy, and increase productivity.
    • Maximize profitability by building accurate project estimates, maintaining tight controls around your projects, and optimizing resource utilization levels across your business.
    • Make informed, real-time business decisions by gaining insight into critical financial, client and project related information.
    • Quickly adopt pre-defined best business practices to drive efficiency levels and standardize key processes across your business.
    • Enhance collaboration and knowledge sharing across your business to improve communications and optimize the use of your intellectual capital.
    • Simplify your IT infrastructure by deploying your systems in the Microsoft cloud, or by leveraging familiar, industry-standard Microsoft technologies in your on-premise data center.

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  • Microsoft Dynamics enterprise resource planning (ERP) software gives your people the tools they need to connect and manage your entire project-based business, from project planning and project resourcing and from billing to operations, with the insight you need to make smart decisions. Start with what you need now and easily adapt as your needs change, in the cloud or on your servers—the choice is yours. Microsoft Dynamics AX can provide business value to your organization to help you to:
    • Improve productivity: Familiar tools, easy to use, and access to jobs and information on Custom Profile allows people to work quickly and make smart and proactive decisions.
    • Manage change and growth: Adjust the business systems and adapt processes easily with a single ERP solution that can support your strategic initiatives and help manage the change in the market, for example, in new product launches, mergers and acquisitions.
    • Compete globally: Perform the complexities of managing a global organization with a centralized ERP solution that helps standardize processes and gain visibility in your organization while keeping updated with changes in local regulations.
    • Simplify compliance: Stay up to date on legal compliance and reduce risk and liability associated with the administration and business initiatives for clients. Get more information on how to simplify compliance with Microsoft Dynamics AX.

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  • Deployment Models
    The new Microsoft Dynamics AX offers unmatched flexibility to deploy the system in your on-premise data center, in the cloud, or in a hybrid model, all with a single unified code base.
    • Dynamics AX In the Cloud
    • Dynamics AX On-Premise
    • Dynamics LifeCycle Services and the Intelligent Cloud

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Related Resources: Project Based Manufacturing

The New Microsoft Dynamics 365 Cloud-based ERP Solution
Gain Immediate Financial Insights
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What's New? Dynamics AX
AXtension Project Cost Control for Microsoft Dynamics AX
Microsoft Dynamics AX for Manufacturing Organisations
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