ERP SOLUTIONS IN CONSTRUCTION PROJECTS

Due to the globalized world conditions, limited resources, specific durations and high-quality principles; investors, employers, consultants and contractors are started to monitor the projects in some strict follow ups. In this regard, it is not possible to manage the construction projects with high-budget and complex activity-structured by software of Microsoft Office, construction industry is started to need the ERP solutions.

What is ERP Solution?

As a general definition, `Enterprise Resource Planning (ERP)` is a sort of an automated web-based software system that integrates activities and operations in a business such as accounting, procurement, project management, engineering / production, human resources and supply chain.

There are ERP solutions of different software companies in the market. According to small, medium and large-scale company structures and in parallel with company management, requested data can be obtained, processed and reported by creating modules of ERP solutions. The system is scalable.

aspect in accordance with scope of the project. As we all know, due to difficult construction site conditions, organizational deficiencies, intercommunication problems and similar reasons inherent in the construction industry, data and records that need to be obtained towards these goals can be skipped many times. In this regard, ERP software integrates the processes, saves the data in the requested templates, disciplines the relevant departments and maintains a smooth workflow.

Streamline Structure: Since ERP collects all modules in a single database, it contributes to data sharing between the departments in the project.

Effective Construction Project Management: ERP systemize the high number of activities, assets, resources, suppliers and contractors in a requested manner. Therefore, more precise analysis of material, machinery, manpower and production are obtained.

Reduce Administrative and Operational Cost: ERP minimizes the workforce, inventory and equipment that is used for the project. This circumstance provides significant administrative and operational savings after a certain period of time.

Custom Made Software: It is possible to shape the ERP software in line with the organizational structure of the company and project. By importing and exporting data, activities with its details can be managed and provide more effective project management. In the construction industry, ERP integrations with software such as Microsoft Excel, Microsoft Project, Primavera P6 contribute significantly to the project.

Project Monitoring in Real Time: Since ERP discipline the user, the relevant data is entered up to date in software. Thus, the project executives can monitor the status of the project instantly and minimise the related risks.

Figure 1) What is ERP Solution?

Why Do We Need ERP in Construction Projects?

A construction project is being aimed to be completed in an optimum duration, maximum quality and economical

Effective Cost Management: Especially in high budget and complex projects, activity-based cost analysis can be obtained by combining the module of accounting, project management, manufacturing, human resources and machinery & equipment management. The activity budget codes created for ERP system provide more precise cost management and control, hence it makes serious contribution for profit margins.

In summary, ERP softwares provide useful contributions in construction projects in line with time, cost and quality aspects. The company using ERP has to manage the software by working with correct modules in line with company organization and employees has to perform the working principles of ERP in the best manner in order to utilize in maximum.