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AN INTEGRATED SINGLE-PACKAGE APPROACH TO RUNNING YOUR CONSTRUCTION COMPANY Michael Lewis The "computer era" has spawned improved efficiency productivity within our our and one of the simplest ways to take advantage of the wave is to operate your entire company on one integrated software package. THE INTEGRATED OFFICE The average construction company is currently using several different applications-for example Microsoft Excel for Estimating, Microsoft Project for Scheduling, QuickBooks Pro for Accounting, ACT as a database manager, and so on. Although all these vendors may claim compatibility with the others, there are some problems that are sure to crop us, such as: 1. Retail programs that are not specifically designed for a construction operation. Because of specific requirements of the construction industry (job costs, estimates, schedule of values, etc.), it's usually a better bet to rely on a program that is "industry specific"-designed with the construction industry in mind. 2. A lack of continuity in most retail programs. Reports and printouts will look different-as if they came from different companies. An integrated program prints reports, purchase orders, subcontracts, and so on in the same format and style, which adds to the professionalism of your operation. 3. No integration. Although they may share data via file import/export, these programs are not truly integrated. Information entered in one program must be manually updated in all others that require the same information. The exception might be a central database with custom "front-ends" for other applications. That sort of "from the ground up" programming effort is normally far beyond the IS resources of the typical construction company. A REAL-LIFE PROBLEM Let's take a look at one of my recent clients. When I examined the company's operations, I found that the most time was spent recopying data into several different programs and compiling data into bulky paper binders based on specific jobs. The result was a need for a hodge-podge of reports, many redundant, to get to the central questions. A financial review was created using four to five different reports where one would have conveyed the same information. Moreover, valuable employee time was spent recopying the same data over and over. I recommended an integrated solution-in this case "The Master Builder" from Omware. After the software was installed and the company had been running the system for one month, the owner of the company remarked, "I didn't think we would see a turnaround this quickly." Using an integrated product allowed the company to produce four additional major project bids per year, which led to more work and increased profits. The accounting department was able to track all job-specific costs which saved thousands of dollars. Job schedules were easily generated and followed, leading to jobs completed ahead of schedule. Equipment usage was better managed-preventing duplication of resources on jobsites and allowing tracking of specific job costs. Inventory was managed more efficiently; payroll was completed accurately and on time; subcontracts, purchase orders, and change orders were all submitted in a professional format; and so on. All this was accomplished on making the decision to implement a single integrated software package. IS MY COMPANY READY? Every company is ready to increase profits! A company that has the ability to streamline operations and increase productivity has an advantage over a company that is still doing work manually or on multiple programs. WHERE DO I GO FROM HERE? I direct all clients who have asked for my help in automating their offices on one system in the same direction: Research the packages, which is easier said than done. Trade shows such as A/E/C Systems present a mind-numbing quantity of "the next best thing," making it impossible for first-time buyers to separate the help from the hype. Some packages are at the top of their particular markets. For light construction, these include Master Builder, Timberline BuildSoft, and Bluegrass. For the heavy construction industry, Expedition (Primavera) is at the top. Good resources for surveying the options are the National Association of Homebuilders for light Construction, and A/E/C Systems for heavy and industrial. Also read trade publications such as Construction Business Computing (CBC) or The Journal of Light Construction. Once you know the players, have them send you their literature, and study it with all employees who will be using the program. After you have thoroughly reviewed the literature, narrow your selection down to two or three packages that you feel would benefit your company the most. After this winnowing process, contact these companies and arrange an onsite demonstration of each product. Eliminate any vendor who won't take the time with you one-on-one. Invite your key employees to each demonstration, and ask lots of questions. Contact some customers who are already using the program; it may be necessary for you to travel to their operations to see the software in action in the real world. Existing users are often the best tool in your decision-making tool kit, because they can describe their experiences, warts and all. While researching software, make sure you have the correct hardware. It's common to have clients interested in a particular package, but unable to install it because their computers are out of date. Find out if your office is networked correctly and your computers are able to hold the necessary information. This process may sound expensive and time-consuming-and it is. But it's a drop in the bucket compared with implementing the wrong package, or doing nothing. One way to defray the initial cost is to find a company that offers a leasing program. With just a little time and research, you can find a company-usually a private consultant or VAR for the higher-end packages-that will lease new computer systems, the new software, all relevant training, and the networking capabilities. Many are also able to "tweak" the package of choice through custom add-one or "middleware." The value of integration for the midsize-to-large construction company is immeasurable. Creative structuring of your operation can spell the difference between success and "out of business." Integration is clearly the way of the future. Michael Lewis is the director of marketing and sales at a construction consulting fi rm based in Boston. He aids clients in their decisions to buy programs for their off ces. He can be reached at www.MASINetwork.com masinet@erols.com; or (978) 694-4898. Return to the List of Articles Return to the Association for Project Managers Main Page Email the Association for Project Managers
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