It is important for us to provite technical help for our Clients. The below mentioned case studies are made to show what we have done in practice in the field of project controlling.
The introduction of a project controlling system at Hídépítő Zrt.
INTRODUCTION OF PROJECT CONTROLLING SYSTEM AT HIDEPITO Zrt.
Initial conditions: In 2007, Hídépítő Zrt. was a member of the VINCI Group. Its annual turnover reached HUF 100 billion that year. The company operated its own proprietary accounting system. The costs of projects were monitored in an other system the company had developed itself. The standard construction industry budgets produced by the company were not compared with fact figures, costing based on the figures of projects was difficult to do, any comparisons of plan and fact figures required a great deal of resources. During day-to-day operations, the budgeting, scheduling and controlling systems operated in isolation, obtaining individual data items required a significant amount of time and parallelisms in administration work were frequent.
Objective of the project: In 2007, Hídépítő Zrt. made the decision to introduce the Project Director Enterprise project management system. The purpose of the project was to ensure that data are managed and monitored in an encapsulated, transparent system, to eliminate the above isolated systems, to implement appropriate flow of information and to establish and operate controlling processes.
Project description: With the introduction of the Project Director Enterprise system, the budgets and schedules of projects were closely integrated in a single system. The software resulted in more modern planning processes, several people are able to work at any one time on both the costs and the schedules, modifications were no longer lost, data management became more secure. Scheduling in Excel was replaced by scheduling based on modern network planning and logical links, and updating became significantly easier. All versions of plans were prepared within the system, so it became possible to compare them at any time. The management of fact data was extended beyond the registration of primary vouchers, as contractor performance certificates and invoices also became possible to register. The system also tracks the main data and technical content of contracts concluded and procurements, on whose basis it became possible to adjust plants immediately and to record the associated fact costs. Shortly after the introduction of PDE, Hídépítő Zrt. also introduced a more modern accounting system, the LIBRA software application, which was suitable for establishing the required IT links. This guaranteed that the data in the controlling software matched the general ledger. Interfaces for recording technical progress were also available to determine current production value.
Results: The company implemented classic project controlling activities within an encapsulated system. In relation to projects, a variety of reports about plan and fact production data and cost data became available down to the most detailed level, which facilitated the immediate discovery of any discrepancies and furnished a basis for project manager and senior management decisions.
Further steps: After the introduction of the software, Hídépítő Zrt. built up experience of the advantages of the system, and as a result it came to trust the professional know-how of Project Control Expert Kft., and the company made another important decision. It outsourced all its project controlling activities. Today, the controlling of all Hídépítő Zrt. projects is outsourced to Project Control Expert Kft.
Introduction of systems at délút mining and construction Ltd.
PROJECT CONTROLLING SYSTEM INTRODUCTION AT DÉLÚT MINING AND CONSTRUCTION LTD.
Initial conditions: In addition to its core activity, the implementation of road-building projects, Délút Bányászati és Építő Kft. also operates a number of internal business units. They include transport, machinery, laboratories, an asphalt-mixing plant, mining, etc. In addition to serving the needs of their own projects, these units also take external order and hence generate external revenue as well. Given the complicated operation of the organisation, as the company grew, the accounting system and consignment note module in use were no longer able to support operations sufficiently. The management felt that it was time to introduce a complex IT solution that is capable of supporting accounting along with the organisation of transportation and the comprehensive controlling of projects and business units.
Objective of the project: The introduction of a complex IT system that is capable of meeting all the above requirements while also supporting transfer of information between the individual areas.
Project description: After initial consultation sessions it became clear that the simultaneous introduction of three systems would be required to meet all needs. Mátrix 2000 Kft., the company that had developed the consignment note module already in use, undertook to extend and develop it significantly. LIBRA Szoftver Zrt. undertook to introduce the LIBRA 3 accounting system, extended by a modern registration module. Project Control Expert Kft., in addition to introducing project controlling and implementing the annual planning of the business units within the controlling system, also undertook the tasks of coordinating the simultaneous introduction of the three systems and establishing processes and data links within the framework of a consortium contract.
The most important, fundamental aspect of the processes that were established was close cooperation between the three pieces of software. In order to implement this, an information transfer protocol had to be developed, which specified the method and the frequency with which each program provided data to the others. After this was completed successfully, the consignment note and machinery modules were able to transfer master data to the payroll and accounting systems, fact performances broken down by individual project to the controlling system, along with the quantities that serve as the basis for the fact costs of the transportation and machinery business units, which were charged at internal settlement prices in the controlling projects corresponding to those business units and were also recorded in the LIBRA system. At the end of the year, the accounting system returned the fact figures recorded for machines and transport vehicles to the controlling module, and on that basis, costing was performed, along with the setting of the internal settlement prices for the next year. During continuous controlling activities, the controlling system received the data recorded for individual job numbers from the LIBRA system monthly, so general ledger matching was guaranteed on the cost and the revenue sides as well. The controlling system sent the usage percentages of individual groups of machinery broken down by job number to the accounting system monthly, so the accounting system was able to distribute the costs recorded between job numbers. As in the controlling system, implementation projects and business units were handled together, all internal transfers could be tracked, so the company had accurate information about the consumption of internal and external resources by individual projects as well as the production levels of individual business units.
Figure 1: Diagram showing processes introduced at the company
Results: The objective of the project has been realised: we have implemented the system and provided assistance with the commencement of its operation. The company has been operating the systems introduced ever since with the processes we established, and, according to their testimony, they make a significant contribution to the success resulting from their profitable projects.
System introduction at Grabarics Építőipari Kft
SYSTEM INTRODUCTION AT GRABARICS ÉPITŐIPARI KFT
System introduction at Grabarics Építőipari Kft
Initial conditions: Before Grabarics Kft entered into contact with Project Control Expert Kft, it has already made attempts to introduce a complex controlling system involving other companies which offer controlling services.
Grabarics Kft had particular conceptions about what it would like to achieve by introducing a project controlling system and sought such a partner for this purpose who would be able not only to integrate the controlling system to its existing general ledger and other systems but also to offer customized solutions as well. Project Control Expert Kft is in possession of all the experiences and skills required by introduction of a comprehensive project management system, so the initial PILOT projects were soon followed by introduction of the productive system.
Objective of the project: The controlling system was expected to be introduced so that project planning, cost monitoring and project progress monitoring are implemented within one single system. It was an important objective to implement planning of construction and assembly projects in a single structure and accounting of fact figures in the same structure as plans.
It was expected further that the controlling system to be introduced is able to communicate also with the other systems used by Grabarics Kft.
Description of the project: The switch-over to general ledger accounting and introduction of the project controlling system were carried out at one time, while the rental system was already used previously. System integration is implemented as follows:
Based on system integration, rental data are uploaded in the controlling system and booked in the general ledger.
The invoices booked are also transferred from the general ledger to the project data so that they could be consolidated with the movements of resources recorded previously as documents relating to the project. This step is implemented because the controlling system should contain all resource movements which have already occurred during the construction works but which are not yet shown in the accounting system. Namely, daily recording of the costs incurred (accounting documents) guarantees continuing and updated project documentation as well.
Contractor Performance Certificates (CPCs) are issued by the Project Manager based on the accounting documents recorded on the projects in the controlling system. CPCs can be issued only from items which have already been entered as accounting documents. The CPCs completed are transferred to the general ledger.
With the introduction of the controlling system, the flow of information between the individual participants of the organization has accelerated. Daily information on production and prices are always available for tender offers and the plans of the company are always accessible also for production.
Implementation of the change in the workplace culture caused by the controlling system required an expert – Instructor – who was provided by Project Control Expert Kft to Grabarics Kft to enable successful and efficient operation of the controlling system even after its introduction.
Results: The controlling system has been introduced at Grabarics Kft successfully. However, the integrated system of well-operating programs would not have been sufficient for success. Introduction of the comprehensive project was assisted by the Management’s proactive and committed attitude. This existing openness could be formed, under the Instructor’s guidance, into a shared resource as a result of which introduction of the system has successfully reached the objectives defined at the start of the project.
After its introduction, the IT application concerned has become an integral part of the operations of Grabarics Kft and provides complex solutions for the Management and the particular projects during their implementation.