In the resources industry, as capital projects grow larger in size, they’re also getting harder to manage due to increased complexity. Research shows that as many as 65% of projects with budgets over $1 billion are falling short of their overall cost and schedule objectives.
These megaprojects face several challenges. Companies often lack visibility into project cost performance; information about resources, budgets and schedules is often siloed; and rigid stand-alone systems limit user productivity and negatively impact project performance.
To meet these challenges, Accenture, Avanade, and Microsoft have teamed up to provide the Capital Project Services Office Toolkit, which is available through the Solution Showcase at Microsoft. The CPSO Toolkit provides an integrated framework of solutions built on Microsoft and EcoSys technologies, with capabilities designed specifically for capital project management.
One of the many capabilities of the CPSO toolkit is project cost management. In this demonstration, you’ll see how the CPSO Toolkit provides a flexible, easy-to-use cost control and analysis solution that integrates with your project scheduling and ERP systems.
Built on EcoSys and Microsoft technology, the CPSO Toolkit brings schedule and cost information together in a single interface for coordinated budgeting, reporting, analysis, and change control. The dashboard provides an executive level view of performance across individual projects and entire portfolios. In a single glance, project executives can see how projects and programs are performing against cost and scheduling estimates.
The solution also provides detailed reporting on project costs. For example, project managers can see key project information summarized in a single easy-to-read view. They can also drill-down to see the information behind the summary, giving them greater insight into the data. The solution also provides visibility into actual expenditures to date as well as commitments, which comes from the integrated ERP system. Costs associated with approved change orders can be viewed and analyzed as projects are executed. For periodic forecasting, the solution provides a flexible, intuitive user interface that provides easy maintenance of the cash flow spreadsheet. Simply click the cells to make changes. And then edit, copy and fill them as one would with Microsoft Excel. This kind of flexibility is one of the many ways the CPSO Toolkit helps to support different companies’ unique business processes.
The CPSO Toolkit also provides a comprehensive view of project and portfolio performance to date. From this powerful view, project planners can drill down into actual costs for each work item, and sort items by their measure of productivity, that is, work achieved versus the cost of the work. Using these productivity indicators as a basis, the solution also forecasts best-case, most-likely, and worst-case scenarios for the estimated cost at the completion of the project. These predictive forecasts can help project managers to take corrective action before major cost overruns are incurred. Cost variance can also be viewed as an easy-to-read chart measuring what’s been achieved versus what’s been spent over time.
In this demonstration, you saw how the CPSO Toolkit provides built-in best practices for cost control and analysis in a flexible, easy-to-use interface that integrates with your project scheduling and ERP systems. To learn more about solutions from Accenture and Avanade available through the Solution Showcase at Microsoft, please contact us today.