Integrated products help manufacturers extend product lines to growing services markets

Many manufacturers require integrated project management, job costing and manufacturing capabilities to track design and production times as well as installation and repair services and the associated costs of these related operations.

Very few manufacturing applications provide an integrated project management or job costing application. Consequently, there is often a communication breakdown between engineering, production, purchasing and field service. This disconnect can result in unhappy customers, late projects, and over budget projects.

One problem facing project-driven manufacturers is directly related to materials management. Companies often use stand-alone project management or job costing software. This means that the project manager has to notify the purchasing department of their material demands as well as the shop floor for required manufactured parts. This disconnect creates confusion as the project specifications may change frequently resulting in multiple phone calls and emails between the interdependent departments.

Another problem facing manufacturers relates to costing and timeline management. The manufacturing costs and lead times must be readily available for project managers so they can prepare accurate project estimates and timelines. For example, a company might bid on a job to manufacture display cabinets that they install for the customer’s stores. The project estimate should include the design costs, all of the manufacturing costs, the installation costs and a realistic timeline to complete the project.

There is a growing trend whereby manufacturers are bringing installation services in-house. By doing so, a manufacturer has a competitive advantage because they provide a turnkey solution for their customer while improving customer satisfaction.

In fact, more and more manufacturers are adding services to differentiate themselves from their competitors. This is increasingly important in an uncertain economy, as incremental services become a critical source of revenue. An integrated project management or job costing system is the ideal tool to control costs, allocate resources, and manage the project from inception through completion.

Companies that historically outsourced installation and services are rethinking that strategy to include a service element to their business. Recurring customer business through services can increase a company’s bottom line and at the same time allow them to survive during the lean times.

By offering an end-to-end solution that includes project management, job costing, and manufacturing these isolated departments can now function as one cohesive unit and increase a company’s productivity and bottom-line profitability in various economies.

Integrated project management applications have a huge impact on the marketplace. Companies with a long-standing tradition of outsourcing all installation and follow-on services can now rethink that strategy. They are beginning to infuse service personnel in markets that have little or no outsourcing facilities in place. In addition, many companies are tapping into fast growing service markets around the country where they currently would not have benefited at all.

Sage Software discovered the need for an integrated project manufacturing system by listening to our customers. Our customers now use these integrated solutions to design, make, install and service various products including pre-fabricated buildings, displays and fixtures, windows and doors, computer networks, instrumentation and more.

Sage Software offers job costing for Peachtree by Sage, Sage MAS 90, and Sage MAS 200 as well as an integrated project management and manufacturing solution for Sage MAS 500. Sage Software also provides time and material applications such as Sage TimeSheet and Timeslips by Sage to manage remote data entry from the field. These applications help customers:

• link production orders to projects to calculate the total project cost
• alert purchasing and production scheduling of material and capacity demand
• integrate design projects, production, and post-production services
• track on-site labor and material costs for field service personnel

Knowing the infrastructure is in place with a solution like this allows companies to take those risks and expand their current marketplace with products and services. Further, by bringing installations services in-house, a manufacturer has more control over customer satisfaction since the product is only part of the solution – especially if it’s installed wrong which will directly affect customer satisfaction, returns, and future orders.

Manufacturers who once outsourced their installation services will need to build their installation departments and call centers resulting in more jobs. This should impact the entire manufacturing industry and economy as a whole as manufacturers evolve into a total solution provider instead of product suppliers.