OneVision ERP

In EPC company, it’s critical import to control the project cost. It’s too late to know that  project is over budget when PM get actual cost information.

OneVision EPM solution helps the project manager to forecast and control the project cost and profit in the whole project life cycle.

Set Budget and Baseline

At the beginning of project, PM can set project budget according to Scope of Supply. The project cost is broken down to more detailed cost category, Budget Code. All project cost will be assigned with a budget code, such as material, labor, overhead, expense and subcontract.

Budget code is linked to Scope of Supply, so PM can identify which part of project has cost issues.  PM can have cost information including:

• Budget cost – Budget at the very beginning of  project, a rough cost budget for quotation
• Revised cost – Cost base line decided by project manager when project kick off and project manager take over the project
• Forecast cost  - Project manager review project cost and estimate cost  periodically, including material, labor, expense, etc. , based on material requisition, purchase order, labor requisition by production manager, or other cost information.
• Actual cost – Cost actually happened,  aggregated from project related transaction,  i.e. material issuance,  time sheet feed back, etc.

Forecast cost before it happens

It’s always difficult to estimate cost before it happens. OneVision EPM solution help project manager estimate cost that would happen for each project and budget code. Forecast cost is automatically aggregated by system and PM can adjust figures manually.

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• Material and subcontract cost — Aggregated from material requisition and  purchase order
• Labor cost — Production manager will forecast labor based on production progress and actual production hours.

PM can also go to more details, such PO, material requisition to know where the forecast cost comes from.

Monitor cost variance and estimate profit

Project manager will periodically  review compare cost data (budget,  revised, forecast and actual cost)  .  With forecasted cost, PM can estimate profit of each project.

OneVision Project score card help PM to monitor project cost and profit. PM can easily find cost issues from gaps between forecast cost and budget cost, and by comparing current forecast with previous forecast.

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