Efficiency on each job is obviously important - but is it critical?

.. and this could lead onto a second question - are we efficient?

Efficiency is not just about cost control. It's also about maximising invoice values, improving cash flow, focussing energies, and perhaps above all else, getting to understand in more detail both job performance and staff performance.

Within engineering and surveying in particular, where projects can last days, weeks or even months, job efficiency can be critical to the health of the business.

From our discussions with Engineers and Surveyors over many years, here are ten of the most common questions on job efficiency that have been raised:-

What profit did we make on that last job?

Are we charging the client for all recoverable time and expenses?

Could our cash flow be improved with more frequent invoicing?

Can we reduce our admin time and costs, and target the time at marketing activities instead?

Good old fashioned paper-based  job bags, for example, can still be the most practical way to store all documents relating to a project, particularly if drawings are involved. Perhaps the main drawback is that a lot of important business information is effectively locked into the bag - never to surface again!  

Spreadsheets can be an an effective and flexible tool for applications such as simple timesheets and manpower planning. The provide flexibility and control to the power end-user. Offering robust and user-friendly screens to the end-user can be challenging, and automation is possible but perhaps unduly complex. Having been involved in many large spreadsheet systems, the conclusion we now draw is that it's a good tool for prototyping a solution over a period of time, but ultimately it's probably best to adopt a database solution for all but the simplest of process flow type applications.

A computerised accounts system can provide up-to-date information on company profitability and  a customer's credit position. Particularly as a firm grows, getting good systems in place becomes more and more important, and a good accounts  system is a key part in the fight to keep down costs and maintain profitability.

A good database system can be a large part of the solution as well, particularly in the area of job management. But it needs to fit, and ideally it should also integrate with other business software - such as the accounts system. The right database can save time, reduce costs, increase billing values, improve cash flow, and provide instant management information - and increase the valuation of the firm. The benefits can be significant - but so can the cost.

If the database can be provided at a low monthly cost (on a rental basis), with no long term obligation, the financial risk can be much reduced. There is still a certain commitment on staff time to try out and evaluate the system - a cost that should be taken into account.

One other thing to bear in mind with database software. Suppose your requirements change in the future, and you wish to bolt-on other functionality - such as a link to Outlook? How flexible is the software, in the long-term? Will you burn certain bridges once you have committed?

Whatever solution is adopted, hopefully it will address the questions above. The requirements should be driven by the core business - and not unduly by IT or even (financial) accounting considerations. A business solution is needed for a business problem.

Ambersoft Systems Ltd  

www.ambersoft.co.uk

01934 877667