BUT LARGE GAP STILL EXISTS
CINCINNATI – September 3, 2009 – Only 30% of industrial and plant equipment manufacturers have a system that provides for assignment of indirect costs and real-time reporting. Yet, this is 12% higher when compared to a composite benchmark of comparable industries.
This is according to a 2009 research report by software maker Cincom Systems (www.cincom.com/acquire) based on a national survey to sales and IT executives that sheds light on how these industrial and plant equipment manufacturing organizations are managing their businesses for increased efficiency and effectiveness.
Lack of Lean Project Management …
“Not having integrated project management to guide lean manufacturing is a lot like trying to steer a ship across the Atlantic without a compass,” says Lou Washington, co-author of the report. Yet, only 10% of those surveyed use integrated project management with lean manufacturing. This egregious gap could be filled by the other 90% implementing some form of real-time reporting with their project-management process.
… Leads to Lack of Profit and Loss Knowledge
“Rapidly growing industrial and plant equipment manufacturers that create profit and loss statements per project outperform those that are not gaining insight into project costs,” says Washington. However, few appear to be creating profit and loss (P&L) statements given that just under one-third (30%) of industrial and plant equipment manufacturers have no project-management integration with accounting, finance or customer management systems. And 70% don’t have any form of project-management integration in place at all.
What should industrial and plant equipment manufacturers do to improve their bottom line? “Industrial and plant equipment manufacturers need to integrate their project-management and financial systems to better track P&L of projects,” says Washington. “By better managing costs and profits, they can improve their ability to offer high-quality products at lower prices.”
For a copy of Cincom’s “2009 Industrial and Plant Equipment Industry Survey Report,” visit www.cincom.com/I&Pebook.
About Cincom Systems
For 40 years, Cincom’s services and people have helped thousands of companies all over the world grow and manage their businesses. For more information about Cincom’s products and services, contact Cincom at 1-800-2CINCOM (USA only), send an e-mail to firstname.lastname@example.org or visit the company’s website at www.cincom.com.
Cincom Systems website
Cincom Acquire™ manufacturing website
2009 Industrial and Plant Equipment Industry Survey Report
Donna Hedge Burns
Corporate Public Relations