Project management brings together design, procurement, resources, delivery and finance. When the same people, production stages and materials serve several projects, a change in one project also affects other deliveries. A coordinated approach helps clarify what can happen next, what is required and how decisions affect schedules, profitability and cash flow.
A delivery project may progress from specification and design to procurement, production, subcontracting and installation. Project managers need a view of their own project's progress. Management also needs a shared view of the project portfolio, available capacity and future cash flows.
Planning makes delivery requirements visible
The starting point is the scope, boundaries, approvals and commercial terms agreed with the customer. These define the stages, tasks, responsibilities and target schedule. Not every project includes the same stages, so the structure must reflect the company's actual delivery model.
Design and specification also establish what subsequent stages need. Procurement may require an approved drawing or material selection. Production needs components, work instructions and available production time. Installation needs the right people, delivered products and a customer site that is ready.
Keep the original plan separate from the current forecast. As plans develop, changes should show both the revised estimate and the difference from the agreed target. This also explains why the schedule or workload has changed.
Schedules depend on relationships between stages
A list of task start and finish dates does not establish whether a schedule is feasible. Identify preceding tasks and other conditions that must be met before each task can start.
Production may require approved designs, available critical components and sufficient production capacity. Installation depends on completion, transport, installer availability and site readiness.
Some stages can run in parallel: not every task must wait until the entire previous stage is complete. Agree which information, approval or delivery allows the next task to begin.
Pay particular attention to stages whose delays push back overall completion. Monitoring these helps project managers focus on issues with the greatest effect on delivery.
Connect procurement and materials to project needs
For each material requirement, establish what is needed, in what quantity and by when. Sending a purchase order does not guarantee that materials will be available on the planned date.
Distinguish the ordered quantity, supplier-confirmed delivery date, received quantity and materials reserved for the project. A component in stock may already be reserved for another delivery. A partial receipt may allow one stage to begin before the entire order arrives.
Assess changes in material or component availability together with procurement, design and production. Options may include resequencing work, using a substitute component or splitting the delivery. A substitute may require technical approval and agreement with the customer.
For subcontracted work, monitor prerequisites too. Does the subcontractor need materials, drawings or approval from your company? When will the work be complete, and how will quality and delivery be checked before the next stage?
Manage capacity across the project portfolio
A resource plan may appear workable for one project even though the same designer, machine or installation team is allocated to several projects at once. Review capacity across the whole project portfolio.
For people, skills matter as well as available hours. An available employee cannot necessarily replace a specialist. Absences, travel, maintenance and other duties also reduce the time available for projects.
In production, review workloads, machines, work centres, setup times and available shifts. Free production time is of little use if components are missing. Materials arriving on time do not guarantee delivery if the required production stage is fully booked.
Installation combines skills, transport, equipment and the customer's site schedule. Moving resources from one project to another may resolve one delivery while delaying another. These decisions need shared priorities and clear authority.
Assess delays across the delivery chain
Consider a project in which a critical component arrives two weeks late. The effect may extend beyond production: the installation week has already been agreed with the customer, and the same team is due to start another project the following week.
Changing one date is not enough. Assess what can be done before the component arrives, when production can complete the delivery and whether a new installation date is feasible. Check the effects on other projects at the same time.
Options have different costs. Expedited procurement, additional transport, overtime or subcontracting may help retain the delivery date. Compare their benefits with the additional costs and estimated consequences of delay. Document changes agreed with the customer and the required approvals.
This example is illustrative. A company's actual approach depends on its delivery model, resources and contracts.
Review profitability alongside actual costs and the completion forecast
Project financial management tracks agreed sales, approved changes, the cost budget and both actual and expected costs. The invoiced amount is not the same as the project's final revenue or cash received from the customer.
Costs may include design, internal labour, materials, production, subcontracting, transport and installation. Agree cost allocation and calculation principles so that profitability figures are comparable across projects.
Actual costs show what has already been spent. Committed purchases and subcontracting show obligations that may not yet appear in actual costs. Estimates for remaining work and materials complete the forecast of total project costs. Avoid counting the same cost more than once across these categories.
A delay may change the completion forecast even if the sales price stays the same. Replanning, waiting time, extra transport or an additional installation visit may increase costs. Contractual delay costs or penalties may also need to be monitored. Assess their potential effect for each project using its agreed terms and confirmed information.
Trace profitability variances to their causes: did the scope change, workload increase, material costs rise or execution move? This information helps identify the right action and improve planning for future projects.
Payment milestones and cash flow follow project progress
A profitable project can tie up substantial cash. Materials and subcontracting may need to be paid before the next customer payment. If delivery or acceptance moves, the associated invoicing and customer payment may move too.
A project cash flow forecast distinguishes advance payments, milestones linked to completion or delivery, invoice payment terms and final payments. Forecast outgoing cash using the timing of procurement, internal labour, subcontracting, transport and other payments.
A customer advance improves cash temporarily, but the expenditure required to deliver the project is still ahead. Review project cash flows both individually and within the company's consolidated cash flow forecast.
When the schedule changes, update payment timing as well as the cost forecast. Management can then see whether a change only postpones delivery or also increases the company's financing needs.
Shared monitoring connects projects, production and finance
The project manager maintains the overall view of delivery and agreed changes. Design, procurement, production, subcontracting coordinators and installation update their own prerequisites and progress. Finance adds costs, invoicing and payments.
Management resolves priorities between projects, capacity changes and significant commercial variances. Shared monitoring works when responsibilities, update frequency and exceptions requiring decisions have been agreed.
With Odoo, project management can connect project and task information with procurement, inventory, manufacturing, workforce planning and finance. Define the necessary connections, views and working practices around the company's delivery model. Installing applications alone does not automatically reschedule the entire chain or optimise the project portfolio.
Revise EPM can complement this shared information with management metrics, budgets and forecasts. Operational project management and management reporting should support the same decisions. Information stays current through agreed recording practices and update cycles.
Start with a workable delivery model
Begin with a project that is typical for your company. Describe its stages, prerequisites, resources, procurement, approvals and payment milestones. Then check how the same model works when several projects run simultaneously.
Initial shared monitoring can cover the delivery target and current forecast, critical materials, resource workloads, forecast total project costs and the next billable milestone. Expand the approach according to the decisions your company needs to manage its work.
Revise combines Odoo expertise, an understanding of business processes and financial expertise. We design coordinated project, resource and financial management around your company's delivery model.
Would you like to improve project management? Contact Revise to discuss your delivery process, shared resources and the information you need for decision-making.