Deployment - Posted 2/4/2014
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Contractor Improves Project Monitoring \u0026 Financial Control by Implementing an ERP Solution
As a leading mechanical engineering contractor, SiGED Emirates specializes in the design, manufacture, installation and maintenance of steel structures and industrial piping in the oil and gas sector. It
needed an ERP solution that would provide a comprehensive overview of each project, particularly relating to procurement and resource management. Implementing Microsoft Dynamics AX 2012 allowed the firm to meet its business requirements and more.
With more than 18 years of experience, 150 projects successfully executed and backed by senior project managers and highly skilled employees, SiGED Emirates has proven itself to be a leading mechanical engineering contractor in the Middle East and North
America. The firm specializes in the manufacture, supply, installation and maintenance of steel structures and industrial piping in the oil and gas industry. Its range of services includes design, engineering, fabrication, construction, installation, testing,
commissioning, maintenance and upgrades. Due to the critical nature of the projects the company is tasked with, financial control and total visibility of a project is paramount.
||Microsoft Dynamics AX 2012 provides an unprecedented level of visibility that enables us to manage and run the day-to-day operations of our projects much more effectively than ever before.
| Hesham Hassan
Finance & Administration Manager
Before Microsoft Dynamics AX 2012 was implemented at the company, SiGED Emirates was running into some challenges. The company did not have a comprehensive system that allowed the proper management and control over a project’s milestones and costs. The project
managers were struggling in obtaining meaningful reports that would provide a realistic view of a project.
The company initially used Microsoft Excel as a project reporting tool. However, this was not always helpful as employees involved in a project needed real-time information, which Microsoft Excel could not provide.
“SiGED Emirates is primarily in the business of project execution. This means that the proper control and timely monitoring of all our projects is critical for success. It is therefore important for us, that we are able to manage our projects properly and take
necessary action in case of deviations,” says Hesham Hassan, Finance & Administration Manager at SiGED Emirates.
“Additionally, in order to enhance our ability to track projects, we wanted to view critical information using dashboards. From a financial perspective, we wanted a holistic picture regarding costs, gross margin, net income, fixed assets and expected revenue
in every project.” From a project management perspective, we wanted to have better visibility regarding the status of each project that would allow our project managers to make informed business decisions. Not being able to have complete control over a project,
would mean that we would be losing money instead of making money - which is totally unacceptable,” he adds.
The company realized that it required a single and integrated ERP solution that would not only cover its business needs but also allow it to be more proactive in managing its projects, such as being able to quickly view information using dashboards. Since the
firm was already using Microsoft Dynamics AX 2009, SiGED Emirates was highly interested in upgrading to the next version.
“We were very excited about some of the functionality that Microsoft Dynamics AX 2012 has to offer. For example, the new version could provide us with a summary of the project budget as it was being created and compare the figures against our actual funding
and most importantly, be able to make corrections before submitting it to a client. One of our pain points has always been the lack of an effective manner to enter and submit time sheets. Upgrading to Microsoft Dynamics AX 2012 would allow us to be more efficient,
since it allows a user to create and submit a time sheet either from a web browser or the client application.”
The company was also interested in optimizing the use of its personnel.
“We wanted to be sure that specific employees and project managers would be available during the different stages of a project. The human capital management (HCM) module of Microsoft Dynamics AX 2012 was of particular interest to us. HCM would allow us to manage
the proper use of our personnel by referring to Role Centers that would provide data, task lists, alerts and reports for a specific job function. Additionally, using the Employee Self-service Portal and workflow tools provided a higher level of control in
managing procurement requests.”
To ensure the successful implementation of the project, SiGED Emirates engaged the services of CEM Business Solutions FZ LLC, a Microsoft Gold Certified Partner specializing in implementing Microsoft Dynamics AX, including add-on solutions in the areas of project
management, contracting, advanced inventory management and other areas that are important for SiGED to effectively manage its operations. SiGED is also implementing the CfMD (Certified for Microsoft Dynamics) HCM and Payroll solution. “At the time when our
organization was looking for an ERP solution many years ago, CEM Business Solutions FZ LLC stood out among the many suppliers whom we had consulted with. They were able to convince us that they have a strong technical and functional team that would be able
to meet and exceed all of our requirements. They helped us successfully implement Microsoft Dynamics AX 2009 back then, and we had no doubt in our minds that CEM Business Solutions FZ LLC would be the ideal implementing partner in upgrading to Microsoft Dynamics
AX 2012 as they were already familiar with our business processes coupled with their expertise in delivering Microsoft Dynamics AX solutions.”
Comprehensive Dynamic Reporting
Previously, the company had difficulty in getting an overall picture of what was happening in a particular project, which gave rise to the real possibility of personnel not being available when needed. Now, the solution can provide a full set of dynamic reports
such as head account, annual leave analysis, project status, and employee information.
“Being able to create these reports allows us to determine precisely when and where our personnel are needed during the different stages of a project. Microsoft Dynamics AX 2012 provides an unprecedented level of visibility that enables us to manage and run
the day-to-day operations of our projects much more effectively than ever before.”
Integrated Dynamic Budgeting System
Adhering to a project’s estimated costs is crucial for the company’s bottom line and credibility to its clients.
“Although cost overruns are common in projects of this scope, we wanted to ensure that we were exercising financial due diligence by eliminating unexpected costs or keeping it to a minimum. Fortunately, the dynamic budget module of Microsoft Dynamics AX 2012
interacts with the general ledger, and alerts users whenever the budgeted amount for any phase in the project is being reached or exceeded. This has resulted in better financial control. Thus, everyone is very pleased with the solution, from our clients as
well our CFO,” says Hesham Hassan happily.
The implementation, therefore, has proven to be a resounding success for SiGED Emirates.
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This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.