Construction Software

Posts Tagged ‘Manufacturing’

This article is based on a true story and is meant to show how software installations, despite management’s best intentions, can go wrong. The name of the company has been left out for obvious reasons.

Every day, I speak with various users of manufacturing and construction software who are disappointed with their current system. They come to me looking for advice in selecting a new package that will better meet their needs and will solve the problems that they believe their current system is creating. In most cases, their concerns are real and they probably will be better off with a new system. However, I would estimate that about 20% of the cases that I see are companies that are destined to be just as disappointed with a new system. Why? Because the software isn’t the main problem in the first place – the users are. In fact, you don’t have to be talking about construction software or manufacturing software specifically – the bottom line is that any software is only as good as the user that uses it.

Several years ago, I spoke with a medium sized electrical contractor that had a very short amount of time to complete several jobs. They were using a very old version of one of the more common construction management software packages that lacked some of the modern features of new software, such as allowing multiple people to be logged in to the system at the same time. This lack of functionality in their software was having a serious negative impact on the company’s productivity.

Of course, the first thing that popped in to their heads was to get new software that was more powerful and had the features that they needed. I spent some time researching various packages for them and finally arrived at a package that wasn’t completely state of the art, but was more than adequate for their uses. After viewing several demos, everyone concluded that the software looked like a good fit. The final step before purchasing and installing the new software was to have their primary accounting person sit down and try the software out since she would be the one using it the most. Since they were on such a tight schedule, this had to be done late at night and after normal work hours.

Several months passed without progress. Nobody in management positions for this company volunteered to help this lady out and since the assignment was difficult, it kept getting pushed back. Finally, after TWO years, the company decided to buy the software, install it, and do some basic training. The staff and end users were hesitant to use the new software and were not very technologically inclined themselves, so they decided to use both the new software AND their old software in parallel for a period of 12 months. Why? Because there was nobody in management positions that gave the time and effort to ensure that proper training was done and there was nobody overseeing the transition process. In turn, the company did twice the amount of work required for an entire YEAR due to fear and poor management. Undoubtedly, hours upon hours of productivity were lost, as was money!

This case, although funny in it’s own right, teaches us several lessons about the process of evaluating and implementing new construction or MRP software. First, managers need to be involved in every step – from the initial meetings to the training sessions to the implementation time line planning and so on. Second, if management is not fully committed to moving to a new platform, they will likely pass the job on to somebody in the company that is not qualified to complete it. In this case, the company learned later that several employees were skipping the training sessions put on the by the accountant because they knew there would be no supervising manager involved.

Therefore, if your company is in the process of selecting and implementing new software, make sure that you have the support and commitment of upper management. Managers need to know what resources will be required to get the system up and running in a timely manner and must be held accountable if those time frames are not met. It is imperative that the right people are selected to learn and train your staff on how to use new software, and if the management isn’t even committed to making that decision properly, is it realistic to expect positive results from the new software?

In industries like construction and manufacturing, it is extremely beneficial to have the best communication possible with customers since the customer base that you acquire and keep are crucial to the overall success of your organization. We’re all well aware of the old saying that it’s much cheaper to keep existing customers than it is to acquire new ones. Companies that do not have solid customer service and follow up are those that struggle to stay on top of the market.

Thankfully, much of the modern software designed for both the construction and manufacturing industries is designed to keep the communication flow between company and customers wide open. Advanced construction software, for example, is capable of constantly updating clients about the progress of their project, including changes in costs, completed milestones, problems resolved, and so on. The best part is that this communication can be completely automated, meaning the construction company can deliver better customer service without spending any additional man hours delivering it.

The communication features that you look for in your next software package are important to consider and must not be overlooked. If you find a software package that does not include a customer account management module, you’re probably better off looking elsewhere – even if you can get a great deal on it.

In addition to keeping customers abreast of the progress of their projects of jobs, some construction and manufacturing software packages can be used to schedule periodic contact for marketing purposes. Things like scheduled mailers or email blasts can be sent to existing and potential customers with the help of solid software that allows you to save valuable time.

These “friendly reminders” of your services can often be all that it takes for a past customer to remember your quality of work and decide to use you for any upcoming projects or jobs.

Another way that software can be used to improve customer relations and internal efficiency is in cases where companies have an ongoing contract with a customer. In these cases, software can be used to automate the billing and cost tracking so that overall contract reconciliation is a breeze when the time comes.

One thing to be aware of when implementing new software that will allow you to take advantage of improved customer account management is the “cleanliness” of the data that is put in the system at first. Companies using outdated account management software likely have the system clogged with a lot of useless information that doesn’t need to be in the new system. As such, it is important that all data is cleaned before being transferred to the new system, allowing you to have a “fresh” customer database.

Additionally, it is important to know the requirements for record retention in your state or jurisdiction. In some areas, contractors are required to keep old records for customers for a certain period of time, even if that customer is no longer an active client. Look for software that has the ability to manage and archive old records if you operate in one of these areas.

Finally, keep in mind that the entire system is useless if new (and old) data is not input correctly. The importance of adequate end-user training can never be understated and is an area where you need to invest the necessary resources if you want to get the most out of your new software.

Using construction or manufacturing software to improve customer relations and communication is one of the most cost-effective ways to improve the quality of service that your company provides. Since much of the communication can be automated, there is typically only a need for a “set it and forget it” use of the account management for each customer.

In today’s world, it is fairly common to come across a contractor that also manufactures some or all of the products that they install for their customers. Custom cabinets are a common example, as are some structural steel and low voltage products. Companies that fall in to this category that are looking for new software often have assembly job shops that design custom pieces and a separate installation department that installs the products at a customer’s site. These companies especially can benefit from new construction software that allows for the most accurate estimating and quoting capabilities.

Unfortunately, finding a piece of construction accounting software that covers both sides of the business is not as easily done as it is said. Although both sides of the business deal with job cost, there are several issues that arise when trying to integrate the two sides with one piece of software.

For example, manufacturing jobs involve a separate set of constraints than construction jobs. In manufacturing, you often deal with work centers, machinery, and individuals that carry out the manufacturing process. These job shops often have to rush jobs, change schedules, or make other changes on the fly based on priority shifts. Having software that is flexible enough to deal with these sudden changes is imperative in a manufacturing situation. However, this is not the case with construction jobs. Construction projects generally involve longer lead times and have to consider variables such as subcontractor scheduling that make quick and extreme changes in plans very difficult, if not impossible to pull off.

Second, manufacturing and construction differ in the way that cost accounting works. Manufacturing projects track direct labor, materials, and a set overhead allocation when calculating job cost. These job costs are accumulated as the project moves forward from one work center to another. These costs are tracked on the balance sheet as assets until the job is shipped off, meaning that inventory costs constantly change as projects move along. Manufacturers also need to know the current progress of a job to tell customers when the project will be complete and delivered.

Construction projects, on the other hand, recognize revenue and costs on a percentage complete or job complete basis.

Most contractors do not record costs until they are actually billed for them, regardless of whether or not the labor has been completed. They are concerned with the cost to date of a project in relation to the estimated budget for the project and monitor under or over billing based on the percentage of the job complete and the percentage of the estimated cost incurred to date. This kind of cost break down simply does not work in a manufacturing environment.

Construction software will record costs in a linear fashion as the job moves along. These costs can be captured and tracked in real time with the right combination of software and processes.

Another difference between construction and manufacturing sides of a business is that the construction side often has to deal with project management issues such as RFIs, change orders, and submittals. These things are simply not relevant in manufacturing but must be accounted for in a construction accounting package. Construction software also allows for progress billing, which is not necessary in manufacturing.

Last of all, manufacturing jobs require quotes that involve a bill of materials which is not usually done in a construction job. Manufacturers like to use software to keep track of things such as change orders, revision histories, and drawings that are not covered by construction software.

Therefore, although manufacturing and construction companies both deal with ‘job cost,’ the term refers to different things in the two companies. As a result, it is necessary to separate construction software and manufacturing software.

Almost every company that rises up nowadays is thankful of the several means of communication which allows them to be in touch to their customers which in turn can also help them to gain and keep such clients. With this, they can ascertain the success of their company. Companies which do not maintain concrete customer service along with corresponding follow ups are the ones that have a difficulty to stay on top of their business. This is also true in manufacturing and construction industries. Luckily, more Construction Software is popping up and is up-to-date which is intended for both manufacturing and construction industries. They are intended to maintain the communication flow linking the company and its customers open. Take for instance advanced construction software which is proficient in constantly updating consumers about the development of their project which include alterations in costs, finished milestones, problems settled, and more. The finest part is that communication may be fully automated- that is, construction industries can provide enhanced customer service exclusive of spending any added mandatory hours spreading it. The communication attributes that you search for in your proceeding Construction Software are significant to think about. If you come across a software package which does not contain a client account management module, you are most likely better off search elsewhere. Additionally, keeping customers up-to-date alongside with the improvement of their projects, a number of manufacturing and construction software packages can be utilized to schedule the periodic contact intended for marketing purposes. Things such as email blasts or scheduled mailers can be delivered to possible customers with the assistance of software that permits you to set aside valuable time. One more means that software may be utilized to develop client relations and internal competence is in instances where industries have an enduring contract with a client. In such cases, the software can be utilized to manage cost tracking and billing in order for general contract reconciliation is easy. Another thing that you should be aware of in applying new software that will let you to grab a hold of enhanced customer account management is the correctness of the information that you have submitted to the system. This will allow you to have a fresh data input. Furthermore, it is significant to be familiar with the requirements for documentation preservation in your jurisdiction. In few locales, contractors are required to maintain old records of customers for a specific period of time. Thus, search for software that has the capability to control and keep old records if you function in these areas. To end with, remember that the Construction Software is ineffective if new as well as old data if not put in correctly. The significance of sufficient end-user preparation can never be discreet and choose an area somewhere you could do with to invest the needed resources if you fancy getting the majority part out of your up-to-date software.

www.ctsguides.com Get free expert advice and download reviews & ratings of Manufacturing Software, Construction Accounting Software, Accounting Software and Medical Practice Software.