Development And Implementation Of A Customized ERP System For ConstructionBert DebruinPresident of Alta Pro Electric Ltd.

HISTORY OF ALTAPRO ELECTRIC LTD.

Introductions Beginnings Of Our Journey Changes And Adaptations Through Our Journey Where Our Journey Brings Us Today

ERP- 4 - CON

GROWTH HISTORYCalendar

Year%

Change in Sales

% Change in Profit

% Change in Labor

Costs

$$$ Loss/Gain in Productivity

2007 +24% +2% +.32 -$22,601.002008 +49% Same -.22% +$23,135.002009 -21% +2% +4.6% -$383,502.002010 +25% -4% +.37% -$38,528.002011 +27% -8% +.85% -$112,314.002012 +14% Same +4.3% -$645,980.002013 +.01% +8% -.016% +$292,500.00

ERP- 4 - CON

PROBLEMS WITH CURRENT OPERATIONS Lack Of Costing Control And Project Analysis Inconsistent Materials Acquisition Processes Communication Gap Between Office And Field Time Spent To Manually Input Duplicate Information Laborious Manual Process To Transfer Useful Data

From Estimates To Projects

ERP- 4 - CON

TARGETED SOLUTIONS Integrated Timesheets And Purchase Orders That

Automatically Apply Costs To The Relevant Project Integrated Materials Database With Up To Date

Purchase Costs Full Access For Crew Leaders To All Project

Documentation Information Is Input Once And Carried Forward To All

Areas Needed Integrated Solution That Pairs Estimating And Project

Management Software

ERP- 4 - CON

BENEFITS ACHIEVED WITH AN ERP Accurate Daily Job Costing With Key Performance

Indicators Ability To Manage Costs More Effectively Increased Efficiency And Accuracy Of Information

Sharing More Accurate Manpower Forecasting Stronger Feedback To Estimating Department With

Actual Project Information

ERP- 4 - CON

REASONS FOR A CUSTOM ERP Adapt The Tools To Your Existing Workflows Grows Fluidly With Company Growth New Tools And Workflows Can Be Integrated More

Effectively Competitive Edge – Proprietary Workflows Developing A ERP Tests Existing Operations Exposes Current Limitations Providing Growth

Opportunities

ERP- 4 - CON

REASONS AGAINST CUSTOM ERP Extended Duration Before Implementation Testing New Practices In An Un-finalized State Unfamiliarity With New IT Terminology And

Programming Development Larger Financial Investment Up Front Disconnect Between Developer And Company

ERP- 4 - CON

MAJOR HURDLES Finding The Right Developers

Do You Speak The Same Language? Does Your Interpretation Match Their Interpretation?

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ERP- 4 - CON

MAJOR HURDLES Understanding Software Design and Limitations

Differing Operating Systems Differing Programming Languages Differing Communication Environments

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ERP- 4 - CON

MAJOR HURDLES Understanding Hardware and Infrastructure

Requirements Internet Bandwidth-Existing Infrastructure Remote User Accessibility Security Protocols

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ERP- 4 - CON

ERP REQUIREMENTS FOR SUCCESS

Full Analysis Of Current Workflows Before CMS Development Began Cross Department Collaboration On Analysis Asses Effectiveness Of Current Procedures Employee Input On Ways To Increase Effectiveness

ERP- 4 - CON

ERP REQUIREMENTS FOR SUCCESS

Analysis Of Current Interface Options How Are Employees Going To Access The Software? What Are The Limitations?

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ERP- 4 - CON

TRUTHS ALONG THE WAY We Didn’t Necessarily Do It Right On The First Try

ERP- 4 - CON

WORKFLOW ANALYSIS

ERP- 4 - CON

INTERFACE DESIGN

ERP- 4 - CON

CHALLENGES

Assuming Our Current Documentation Styles Would Easily Translate Into An Automated System

Assuming The Developers Will Know How To Address Every Design Request Easily

ERP- 4 - CON

SUMMARY OF AFFECTED SYSTEMS Human Resources Contacts And Communications Estimating And Proposals Pre-project Planning Project Management In Office Site Project Management Materials Acquisition And Control Labor Management And Control Quality Assurance And Quality Control Project Close Out

ERP- 4 - CON

PROGRAM HUMAN RESOURCES

Manual Entry Of Faxed In And Dropped Off Timesheets

Employee Training Records Not Accessible

Employee Records Kept In Excel With Limited Access

Contact Database In Reference Documents

Direct Input Of Timesheet Entry By Employees

Employee Training Records Visible To All Employees

Integrated Employee Database

Contact Database Directly Integrated

EXISTING NEW PROGRAM

ERP- 4 - CON

ESTIMATING AND PROPOSALS

Estimating Department And General Manager Discuss Gaps In Future Work

Low Level History Of Bid Success

Estimating Documents Need Manually Moved In To Project Files

Estimating Department Has Direct Access To All Project Scheduling

Fully Detailed And Searchable Bid History

Estimating Files Linked Directly To Project In System

EXISTING NEW PROGRAM

ERP- 4 - CON

PRE-PROJECT PLANNING

Project Manager Approximates Manpower Timelines

Manual Loading Of Estimate Data For Cost And Productivity Tracking

Automated Project Labour Duration Projection

Integrated Information Loading For Cost And Productivity Tracking

EXISTING NEW PROGRAM

ERP- 4 - CON

ERP- 4 - CON

PROJECT MANAGEMENT - OFFICE

Need To Manually Input Same Information Multiple Times

Various Excel Documents To Track Project Details

Critical Tasks Recorded Manually

All Information Is Entered Once

All Project Details In One System

Critical Task Procedures Produce Automatic Reminders

EXISTING NEW PROGRAM

ERP- 4 - CON

PROJECT MANAGEMENT - FIELD

Access To Project Changes Through Printed Documents

Reliance On Email From Project Manager For Status Updates

Reliance On Office Staff To Load Current Material Pricing Into Project Folders

Online Access To All Current Change Documentation

Automatic Alert When A Change Is Approved

Access To Integrated Materials Database With All Current Pricing

EXISTING NEW PROGRAM

ERP- 4 - CON

MATERIAL ACQUISITIONS AND CONTROL

Call Or Email Suppliers For Latest Prices

History Of Cost Not Searchable

Shipment Shortages And Damages Not Reported Immediately

Long Term Pricing Agreements

Full History Of All Material Cost Adjustments

Immediate Notification To The Office For Shipment Issues

EXISTING NEW PROGRAM

ERP- 4 - CON

LABOR MANAGEMENT AND CONTROL

Labor Allocation Based On Personal Experience

Labor Issues Not Readily Apparent Until Project End

Excel Document Used To Project Number Of People Needed

Requests For Hiring Personnel Done Through Emails

Exact Labor History Of Projected Vs. Actual

Exact Numbers On Labor Overages

Project Overages / Shortages For Specific Type Of Employee

Integrated Detailed Personnel Shortage Alerts Sent To HR

EXISTING NEW PROGRAM

CMS-4-PAP

ERP- 4 - CON

ERP- 4 - CON

ERP- 4 - CON

QUALITY ASSURANCE AND CONTROL

Company Standards On Paper In Binders

Access To Updated Standards Through Email Or Printed Documents

Crew Leaders Send Training Requests To Office When Needed

Company Standards Filed Electronically

Online Access To Latest Company Standards

Integrated Training History With Alerts

EXISTING NEW PROGRAM

ERP- 4 - CON

PROJECT CLOSEOUT

Project Manager Must Call Or Email Crew Leaders

Project Manager To Discuss Project Completion With Accounting

Online Access / Alerts To Dates Of Completion

Integrated Notifications To Accounting For Project Completion

EXISTING NEW PROGRAM

ERP- 4 - CON

COSTS TO DEVELOP NEW ERP Capitalized Costs

Hardware Costs Payroll For Employee Working With Developers Revisions During Development

ERP- 4 - CON

COSTS TO DEVELOP NEW ERP Non Capitalized Costs

Evaluation Of Alternatives Research And Development Training Costs

ERP- 4 - CON

HOW DO WE IMPLEMENT NEW ERP? Parallel Adoption

Simultaneous Use Of New And Old Systems

Triple Training Company Wide Group Training Individual Site Training Individual Employee Training

ERP- 4 - CON

HOW DO WE CONTROL IMPLEMENTATION? Gradual Rollout Improved Standard Operating Procedures Gather Employee Feedback And Monitor Pain Points Consistent Support For Employee Adaptation

ERP- 4 - CON

HOW DO WE MEASURE SUCCESS? Increased Productivity Increased Efficiency Increased Capacity Increased Employee Satisfaction Increased Client Satisfaction

ERP- 4 - CON

VALIDATION OF CUSTOM ERP Measureable Decrease in Wasted Overhead Improved Quality and Consistency of Information Ease of Operations For Employees

ERP- 4 - CON

HOW CAN THE NEW ERP BE IMPROVED? Practical Testing of New Workflows Implement Native Estimating, Accounting, and Inventory

Software. Leverage Cloud Based Computing Power

ERP- 4 - CON

TAKE AWAY MOMENTS...FUTURE More Frequent And More Accurate Information Tighter Integration Of The Entire Organization Streamlined Workflows Company Wide Uniformity – Higher Quality

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ERP- 4 - CON

ERP- 4 - CON

This technology adoption project was supported in part by the National Research Council of

Canada Industrial Research Assistance Program (NRC-IRAP)