Technology needs Real Estate ERP Strategic Vision To drive the growth today
Agenda
❖ Real Estate Business Processes
❖ ERP Software as Enabler Technology
❖ TOC/CCPM as Business Technology
❖ Theory of Constraints (TOC)
❖ Critical Chain Project Management (CCPM)
❖ Future Roadmap for ERPs
Goal: Maximum Turnover
Focus Points
1. Sales
2. Project Execution
3. Business Development
4. Finance and Statutory
Focus Point 1: Sales
Target vs Actual
1. Booking Amount
2. Revenue Received
3. On Time Execution of Current Projects
4. Highly Valuable New Projects
5. Clear Finance and Statutory Terms
Focus Point 2: Project Execution
Target vs Actual
1. Work Done Amount
2. Payments Outflow
3. Cost Overrun
4. Time Overrun
5. Change Management Process
Focus Point 3: Business Development
Target vs Actual
1. Liaison Process Done Amount
2. Liaison Payment Outflow
3. Cost Overrun
4. Time Overrun
5. Land/SRA/Redevelopment Leads
Comparisons
Focus Point 4: Finance and Statutory
Target vs Actual
1. Overhead Apportionment
2. Project Revenue Recording
3. Statutory Liability
4. Updated Balance Sheet
5. YoY/MoM Growth Percent
Goal: Maximum Customer
Performance
Focus Points
1. Double The Sales Output
2. Half The Project Execution Time
3. Half The Business Development Time
4. Instant Finance and Statutory Reports
Focus Point 1: Double The Sales
Output
How ERP Can
1. Easy Bookings on Site/ Online / On Mobile
2. Easy Payments on Site/ Online / On Mobile
3. Updates on Execution of Current Projects
4. Valuable Updates on New Projects
5. Clear Finance and Statutory
Communications / self service
Focus Point 2: Half The Project
Execution Time
How ERP Can
1. Accurate Project Estimation
2. CCPM Implementation
3. Weekly Execution Feedbacks
4. Time Control over Cost Control
5. Change Impacts on Costs and Time
Focus Point 3: Half The Business
Development Time
How ERP Can
1. Standard BD/Legal/Liaison Processes
2. Weekly Progress Feedbacks
3. CCPM Implementation
4. Time Control over Cost Control
5. Standard Leads Feasibility Parameters and
Automated Comparison
Focus Point 4: Instant Finance and
Statutory Reports
How ERP Can
1. Auto Overhead Apportionment
2. Auto Project Revenue Recording
3. Auto Statutory Liability
4. Capturing All Department Data in System
5. Ability to Adapt to New Statutory Changes
TOC (Theory of Constraints)
Profit Increase by Reducing Operating
Expenses
Profit Increase by Increasing Sales
CCPM (Critical Chain Project Mngt.)
Simple Project
Task 1: Business Opportunity & Land
Acquisition
Task 2: Govt Approvals for Sales
Task 3: Presales & Sales
Task 4: Govt Approvals for Construction
Task 5: Construction
Task 6: Project Handover
Simple Project After Resource Alignment
Task Duration Each: 8 months
Total Project: 40 months / 3 years & 4
months
CCPM (Critical Chain Project Mngt.)
Simple Project with Critical Chain
Look for the longest chain of dependent
events, but include resource dependency.
Task Duration
According to research, 50% task time is
focused time and 50% task time is security
buffers for unexpected
Our target is not to complete each task on
time, but Project on time
CCPM (Critical Chain Project Mngt.)
Critical Chain with 75% Time
Remove the 25% security buffers for every
task
Project Duration is 30 months / 2 years & 6
months
Critical Chain showing remaining buffers
Showing 25% buffers still remaining in every
task
CCPM (Critical Chain Project Mngt.)
Critical Chain with separate buffers
Estimation is more accurate when safety
buffers combined for all tasks
Critical Chain with aggregate buffers
Complete projects on-time every-time using
focus on buffers (Red/Yellow/Green)
In Japan, all govt. projects are available only
for CCPM certified construction companies
One Real Estate company in practice,
completes one project every 16 days using
CCPM techniques and consultants
CCPM in Multi Project Environment
Two projects with multi tasking
Each task done in parallel
First project will complete on 60th month
Second project will finish on 62nd month
Two Projects Without Multi Tasking
Staggered around the most loaded resource
First project will complete on 30th month
Second project will complete on 38th month
Apply CCPM to achieve target as actual for
Sales, Construction and Business
Development
Goal: Global Excellence of Our Real
Estate Sector
ERP Future
1. International Accounting Standards
2. Easy Customisation for new Strategies like CCPM
3. Continuous Innovation in Speed and Graphics
4. Self Service Portals & Apps for : Customers, Vendors,
Employees, Management & Investors
5. Cloud & Mobility for Every Device
6. Analytics for Decision Making
7. Artificial Intelligence
–Ashvin Gami (B.Tech, IIT Bombay)
Images Source: http://www.dbrmfg.co.nz/
Company Website: http://www.strategicerp.com
“Thanks.”