Project Finance Management for Engineering - configuration considerations in a PPM implementation !

What is Project Finance Management in Engineering Projects

Project Finance Management in Engineering Projects refers to the process of managing the financial aspects of an engineering project, including budgeting, forecasting, and financial reporting. This involves:

1. Developing a budget: Project Finance Management in Engineering Projects involves developing a budget for the project, including estimates for the costs of materials, labor, and other expenses.
2. Forecasting financial performance: Project Finace Management in Engineering Projects involves forecasting the financial performance of the project, including predicting revenues and expenses, and determining the expected profitability of the project.
3. Managing project costs: Project Finance Management in Engineering Projects involves tracking and managing project costs in order to ensure that the project stays within budget. This may involve identifying cost savings opportunities or negotiating with suppliers to reduce costs.
4. Financial reporting: Project Finance Management in Engineering Projects involves preparing financial reports for stakeholders, such as project sponsors and shareholders, that provide an overview of the financial performance of the project.

Overall, Project Finance Management in Engineering Projects plays a critical role in ensuring the financial success of an engineering project, and is essential for making informed decisions about the allocation of resources and the management of risks.

What can go wrong

Here are some examples of how project finance management can go wrong when not using a Project Portfolio Management (PPM) tool:

1. Overbudget: Without a PPM tool, it can be difficult to accurately track project costs, which can result in the project going over budget. This can lead to financial losses and project delays.
2. Poor decision making: Without a PPM tool, it can be difficult to access accurate and up-to-date financial data, which can lead to poor decision making. For example, if a project manager does not have access to real-time data on project costs, they may make decisions that result in unexpected expenses.
3. Lack of transparency: Without a PPM tool, it can be difficult to provide clear and accurate financial reports to stakeholders, which can lead to a lack of transparency around the financial performance of the project.
4. Inefficient resource management: Without a PPM tool, it can be difficult to track and manage the allocation of resources, which can result in inefficiencies and unnecessary expenses.
5. Risk management challenges: Without a PPM tool, it can be difficult to identify and manage risks that could impact the financial performance of the project, such as cost overruns or schedule delays.

Overall, using a PPM tool can help to avoid these challenges and improve the financial management of projects.

PPM configuration considerations for Project Finance in Engineering

Here are some considerations to make that are specific to engineering when configuring a Project Portfolio Management (PPM) tool to be effective for project finance management:

1. Material and labor costs: Engineering projects often involve significant material and labor costs, so it is important to have a PPM tool that can accurately track and forecast these costs.
2. Complex dependencies: Engineering projects often have complex dependencies on other projects or external factors, so it is important to have a PPM tool that can handle these dependencies and account for them in financial forecasting.
3. Risk management: Engineering projects often involve significant risks, such as the risk of cost overruns or schedule delays, so it is important to have a PPM tool that can identify and manage these risks in order to protect the financial viability of the project.
4. Change management: Engineering projects often involve changes to the scope, schedule, or budget, so it is important to have a PPM tool that can track and manage these changes in order to ensure that the project stays on track and within budget.
5. Resource management: Engineering projects often require significant resources, such as specialized equipment or skilled labor, so it is important to have a PPM tool that can track and manage the allocation of these resources in order to ensure that they are used effectively and efficiently.

Overall, these considerations are important to keep in mind when configuring a PPM tool for project finance management in an engineering context, in order to ensure that the tool is effective and efficient at supporting the financial management of engineering projects.

Cora PPM Use Case - Project Finance Management in Engineering Projects

WHY CONSIDER CORA PPM (www.corasystems.com)

There are several reasons why someone might want to consider Cora PPM over the alternative options:

Unique features: Cora PPM offers features & capabilities that are not available in other tools, which would make it a better fit for your organization's needs.

Ease of use: Cora PPM is more user-friendly and easier to learn than other tools, making it a much more attractive option for organizations with limited training resources, larger user communities, or higher levels of staff turnover.

Customization & Configuration options: Cora PPM allows for more customization and configuration flexibility than other tools, which is a major advantage for organizations with specific or unique requirements.

Strong customer support: Cora offers excellent customer support, including training, onboarding, and ongoing technical assistance on a 7x24x365 basis, which would make your PPM tool a more appealing choice for organizations that value a high level of support and may need it to support global teams

If you would like to discuss Cora PPM, and our SPM (Strategic Portfolio Management) please drop me a note. 

Alan Crean | Project Financials, Systems, & Technologies Specialist | Cora | acrean@corasystems.com