Monday September 21st, 2015 - 11:20AM-12:10PM
Some organizations are challenged with managing their engineering labor costs to stay within budget. The forecasted labor costs gradually grow throughout the project resulting in overruns that can be 15% or more over budget. The result is less than desired real forecasting and much more reporting results.
We reviewed project forecast trends, talked with project managers, project controllers, and functional managers. We found a difference between what people think happens and actually happens. Feedback indicated people are too busy with perceived higher priority work to spend any more time on managing labor. At the same time, organizations produce lots of data related to labor. Unfortunately, it can be scattered about the organization, used for different purposes, and commonly remains in pockets visible only to those who either produced it or their direct management chain. For example, managers produce resource plans matching work with number of people and their available skill sets. However, this data isn’t routinely shared with project managers or project controls.
To obtain better visibility of future results, earlier, we integrated the resource planning information produced by functional managers with traditional cost forecasting and schedule data. Using Ecosys EPC as our tool we integrated these scattered pieces of information making the data available to resource managers and project managers at the same time. Now the 2 work processes and results need to closely match. This provides earlier views of real resourcing plans enabling better project forecasting and comparison to baseline for performance evaluation and continuous improvement opportunities.