Many businesses do not have the tools necessary to decide whether the cost price is correct, or have the understanding of other risks involved in a project. This can have fatal consequences for their income. We have provided some guidelines to follow in order to choose profitable projects:
Loss-making projects destroy the bottom line
A few bad projects will often drag down a year’s results because they eat up the profits created by the good projects. The loss-making projects will usually be the result of insufficient cost estimating and lacking reservations regarding the risks involved in the project. By cutting these projects, a business can ensure a significantly improved bottom line. Read more here
Improve time-usage
Less time and better quality is the modern requirement for both production and administration in a field where competition is fierce. All too often, time restraints will result in bad calculation of offers. Or time constrictions can force you to drop a possible project, because you do not have time to calculate other projects on time. Increased efficiency and smaller margins of error are therefore at the top of the list of demands for modern IT-solutions. Read more here
Lacking overview costs time and causes errors
Another typical challenge is lacking overview of cost estimates and minimal reuse. In Sigma® you can avoid this by working with building blocks. These building blocks can range from small structures of a single line, to larger structures composed of many objects. Besides allowing you to collect your own experience in databases of building blocks and personal resources, you will be able to add data from V&S PrisDatabaser and Exact databases among others.
The point is to allow you to take blocks/templates from a database or from earlier projects in order to reuse knowledge. Knowledge, which can be shared between co-workers, putting the power of the individual where it benefits everyone. This is a large advantage, which will save you much time and minimize the risk of errors.
Important knowledge must stay in the company
It is challenging to gather knowledge in a uniform and structured way. When this is done, others must be able to access that knowledge easily in order to utilize it. If this is not possible, the business loses knowledge which can result in diminished profits. Read more here
All co-workers must pull in the same direction
A common corporate policy and a shared costing tool, such as Sigma, unite management, administration, and execution in the work-place and create a consistent flow in the company. This results in the best practice, which strengthens the bottom line directly. Endless discussions and misunderstandings are greatly diminished when everyone has a common understanding of the task. A common understanding which must be founded on the projects price quotes if you are to stay in control of economy and risks.
Likewise, collaboration between companies is easier if all partners working on a project use Sigma. The head contractor can exchange files with subcontractors seamlessly, and the seperate parts can joined into a unified cost estimate in a single move. The exchange of information, be it internal or external, could for example encompass:
