Saturday, April 11, 2015

Pragmatic Odoo OpenERP 8 Construction Management

The market leader in efficient and cost effective solutions for Business situations – Pragmatic Techsoft has made a mark in the Construction Industry! The Pragmatic Odoo Construction Management is a turn-key solution that suits, across-the-board, Companies involved in Construction and related activities. The solution can be custom configured for Developers, Builders, Contractors, Subcontractors based on need.

Use of cutting edge technology to structure the workflows and management of construction related activities based on established standards and management methodologies are the highlights of Pragmatic Construction Module. Odoo (formerly OpenERP) is fine tuned to accommodate the depths of detailing required in charting BOQs, Estimates and Plans, setting schedules, to the rigorous tracking and control of projects, use of budgets and forecasts are a few points to highlight.

In this write-up we describe the generic workflow of the Pragmatic Odoo Construction Management vertical with references to the standards and process that is included within our module.
Major Points Covered
• BOQ Generation
• WBS Online Estimation
• Project-based costing
• Project Task/ Job progress tracking
• Online project configuration
• Inventory control and material management
• Resource scheduling
• Contractor and subcontractor management
• Service and dispatch management
• Budget management and cash flow projections

 Pragmatic Construction – Approaches
Define the Project and Proceed
 Project Templates
Here we can utilize the powerful Template which we had designed based on the Standard measures and Common Arrangement of Work Sections
 BOQ Generation
A bill of quantities (BOQ) is a document used in tendering in the construction industry in which materials, parts, and labor (and their costs) are itemized. Using Pragmatic Construction module, the BoQ document can easily be prepared by the cost consultant/ quantity surveyor; to provide project specific measured quantities of the items of work identified by the drawings and specifications.

 Priced bill of quantities
The contractor tenders against the bill of quantities, stating their price for each item. This priced bill of quantities constitutes the tenderer's offer.

 Method of Measurement:
The construction module is based on the approaches that are most commonly practiced in accordance with the Standard Method of Measurement SMM7/ New Rules of Measurement (NRM) which is configurable.

 BOQ Standard measures based on Common Arrangement of Work Sections (CAWS)
The Pragmatic Construction module provides a list of BoQ items based on international standards and can still be customized as per the requirement of the project.

A - Preliminaries and general conditions.
B - Complete buildings, structures and units.
C - Existing site, buildings and services.
D - Groundwork.
E - In situ concrete and large precast concrete.
F - Masonry.
G - Structural carcassing, metal and timber.
H - Cladding and covering.
J - Waterproofing.
K - Linings, sheathing and dry partitioning.
L - Windows, doors and stairs.
M - Surface finishes.
N - Furniture and equipment.
P - Building fabric sundries.
Q - Paving, planting, fencing and site furniture.
R - Disposal systems.
S - Piped supply systems.
T - Mechanical heating, cooling and refrigeration systems.
U - Ventilation and air conditioning systems.
V - Electrical systems.
W - Communications, security, safety and protection systems.
X - Transport systems.
Y - General engineering services.
Z - Building fabric reference specification.

Pragmatic Construction module gives the users flexibility of use while defining BoQ. Bills of quantities can be prepared elementally or in works packages, by a process of 'taking off' which involves identifying elements of construction works that can be measured and priced.

 Construction Project Tasks based on the WBS – Packages
What is Construction work packaging
Packaging is normally associated with splitting a large project into a series of work packages suitable for obtaining tenders and placing orders with the subcontracting and goods supply chain thereby transferring risk for delivering some elements of the works to others.

Typical breakdown of packages (excluding preliminaries) on an office development

• Demolition and site clearance.
• Piling.
• Substructure and underground drainage.
• Superstructure.
• Cladding system.
• Roof and balcony finishes.
• Floor and staircase screeds.
• Mechanical installations and plumbing.
• Electrical installation.
• Raised access floors.
• Suspended ceilings.
• Metalwork and balustrades.
• Brick and blockwork.
• Prefabricated toilets.
• Internal partitions.
• Joinery and ironmongery.
• External works.
• Decoration.
• Testing and commissioning.
• General building work including plastering.

WBS and Estimation
The construction manager and accountant should review the plans and make detailed estimates for labor, materials and construction overhead. Optionally time estimates can also be made in some detail, because cost is a function of time. Projects that fall behind schedule invariably go over budget.

Traditional financial accounting is historical -- it tells you what has happened. In construction, in order to control costs, procedures must be in place that also forecast future costs.

Sample: 4 Level WBS

Level 1: is the highest level (ACME) where the project (house) will be summarized

Level 2: is identified at the project level: House. It corresponds to Level 1. In this case, the code is 1.1.

Level 3: Divide the work into the major elements needed to build a house. We divide Level 3 into six elements: concrete, framing, plumbing, electrical, interior and roofing. These are both major deliverables and milestones for managing the project. They also enable the project by task.

Each codes at level 3 is unique to the project and starts with the WBS code from the level above (1à1.1à1.1.1).

Level 4: of the WBS will enable us to manage the project as desired. All of our resources and contractors fit into elements at level 4, and so do all specific departments.

Now we arrive at the complete Construction work package
The WBS dictionary is a narrative documentation of the effort needed to accomplish all work defined in the WBS. The WBS dictionary is developed for the lowest level element in the WBS only

WBS Dictionary describes each component of the WBS e.g. •Milestone
•Dates (Optional/ Need based)

Now that the Project is defined and set to roll, Pragmatic Construction module captures all the relevant operations at real time.

Task – Consumption
The stock is moved to the location of construction (ex Project 1: Location Store) and then from each task the items required are requested for consumption.
Here there are 3 cases that are handled

1.Item available at Project location
2.Item available at Company store/ any other location
3.Item need to be procured.
Case 1: If available at location then the item is issued for consumption against the task and a track of actual Vs. estimate is also maintained.
Case 2: If available at a different location then –Material Indent is raised and an internal move/ intercompany transfer is triggered based on the case.
Case 3: If stock is not available then a Purchase Indent is raised and then it moves through the purchase cycle.
Task linked to OBS
Each task is linked to the OBS and calculates the actual time spend in each Task – thereby giving an exact expense Vs estimate figures and an appropriate actual of works and expenditure.