When it's not what it's supposed to be: Project controlling with ERP software

Budget management, Working time calculation, timing - for companies working in projects, constant analysis with corresponding Methods for project controlling essential.
Deviations can quickly exceed budgets and make deadlines impossible to meet. This is why service companies, for example, are dependent on help with project controlling and project management.

https://sap-b1-blog.com/mariproject-fuer-unternehmen-mit-projekten/

In many ERP-systems, the function of the "target/actual comparison" for projects is integrated. During the course of the project, actual values are constantly compared with the corresponding target values for deviations. This should enable these to be detected and corrected as early as possible, e.g. in order to avoid project costs to prevent.
In order to capture the deviations, the target/actual comparison a kind of cycle again and again. This consists of the following points, Controlling of projects:

What are the target values of the project ? (e.g. How much time should it take?)
What is the actual state of the project? (e.g. How much time does it actually take?)
Are there deviations between these two values? (e.g. Does it take more time than it should?)
Why are there these deviations? (e.g. Why does the project need more time than estimated?)
What can I do so that actual and target values balance out? (e.g. what can I do so that less time is needed and if more is needed what happens then?)
What does the adjustment/correction mean for the other target/actual values? (e.g. If I need more time, do I also need more budget?)

Continuity for more overview

It is important that the target/actual comparison is carried out continuously. If the project status is repeatedly put to the test from the beginning, deviations can be quickly detected and adjusted. If all those involved in the project are confronted with realistic figures at the beginning and during the course of the project, nothing stands in the way of a smooth process. The target/actual comparison helps all parties to maintain an overview and avoid surprises.

And why with integrated project management software?

This approach can also be used without special software. However, with a certain size or number of projects it is advantageous, if not necessary, to use an integrated system. A SystemThe system also includes a tool for recording all important figures, which helps with the analysis. Helpful graphical tools often complement the functions. These can be views such as a key figure cockpit, which is displayed in traffic light colours. Budgets that are about to be exceeded become conspicuous in this way.

One comment

By Andreas New - 1 June 2021 21:37

A short but very helpful post you wrote here about ERP software. To be honest, it is quite hard to find anything about this topic today. For this I can praise your contribution here even more. I would be really happy if you would write another text about this topic in the future.

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