Critical issues for Engineering Companies: how to solve them with PSA software

Author

Simone Bartalesi | Kairos Software CEO

Share on linkedin

According to research by the Project Management Institute, 28% of projects fail because they are based on inaccurate cost estimates.

Partial analysis of stakeholder requirements and lack of visibility on costs, human resources and skills availability are among the main causes of this trend.

In engineering companies, a further challenge is the complexity of projects. This complexity stems from the need for preliminary analyses and feasibility studies which are not immediately attributable to an actual project, yet demand hours of time and call extensively on resources.

This is why preventive cost analysis is essential in this context.

 

 

 

According to research by the Project Management Institute, 28% of projects fail because they are based on inaccurate cost estimates.

Partial analysis of stakeholder requirements and lack of visibility on costs, human resources and skills availability are among the main causes of this trend.

In engineering companies, a further challenge is the complexity of projects. This complexity stems from the need for preliminary analyses and feasibility studies which are not immediately attributable to an actual project, yet demand hours of time and call extensively on resources.

This is why preventive cost analysis is essential in this context.

Such analysis enables accurate appraisal of the costs associated with the stages prior to the execution of the project and, through the correct allocation of time, resources and materials used in pre-sales, it also guarantees a precise definition of the mark-up.

How? A combination of historical data from implemented projects and current requirements is used to minimise any loss of profits, and to allow simulated forecasting scenarios that account for resources, time worked, hourly rates and overall profitability.

Kairos PSA has built-in features that allow you to historicize and analyse the progress of each project by specific size (sector, work team, time, technical resources and materials used). The advantages contribute to the realization of a credible feasibility study that allows:  

  • Development of greater awareness of production capacity
  • Establishment of the correct selling price
  • The achievement of a good balance between sales and production

Thanks to Kairos PSA, the complexity of projects will be mitigated by the simplicity of using a software which can provide full visibility and supervision of the entire project cycle.

Such analysis enables accurate appraisal of the costs associated with the stages prior to the execution of the project and, through the correct allocation of time, resources and materials used in pre-sales, it also guarantees a precise definition of the mark-up.

How? A combination of historical data from implemented projects and current requirements is used to minimise any loss of profits, and to allow simulated forecasting scenarios that account for resources, time worked, hourly rates and overall profitability.

Kairos PSA has built-in features that allow you to historicize and analyse the progress of each project by specific size (sector, work team, time, technical resources and materials used). The advantages contribute to the realization of a credible feasibility study that allows:  

  • Development of greater awareness of production capacity
  • Establishment of the correct selling price
  • The achievement of a good balance between sales and production

Thanks to Kairos PSA, the complexity of projects will be mitigated by the simplicity of using a software which can provide full visibility and supervision of the entire project cycle.

Find out more about Kairos PSA