Within the construction industry, there are three important levers: man, machine and money. Coming to terms with how these components work together is an important process to understand. With improvements in technology and the emergence of construction project software, we are now able to identify and establish meaningful insights between these areas. This process is increasingly important for construction companies as these insights allow businesses to remain competitive.
The Importance of Data
Integrating data across a business isn’t specifically defined as sharing information, it relates to compiling data to create new information. This information is then used to identify insights that can be used to aid the business. Specialised construction project control software has the ability to process and analyse data at a speed and at volume rates humans are incapable of achieving. With this idea in mind, it is critically important for businesses to take advantage of these softwares.
Some construction companies are still not fully leveraging the power of software technology within their business. In most cases, the typical functions within the software are not being fully utilised and treated as reports rather than insights. An example includes payroll. In the past payroll incorporated a payslip and related simply to costs. In contemporary times, however, payroll is far more complex. When used for the process of analysing machine and money, it can provide great insights.
Payroll relates to three different levels; cost, budget, and accounting. If the data is integrated across these three platforms, we can transform a simple payslip into intelligence that uncovers the degrees of human operation. Specifically, we can understand who was doing what, where, and for how long. Through this process, we begin to uncover the interplay between man, machine and money.
Construction project control software can increase awareness:
- Do you have the right labour skills on the job on the right day?
- Do you have too many labour resources in one area and not enough elsewhere?
- Where they productive? If not, why not?
- Does it matter what time of day it is?
Knowing this information is vitally important as it can help you make provisions for that cost.
Labour is considerably the largest variable in construction as it changes hour-to-hour. With 40-60% construction costs being labour, you cannot underestimate the benefit of generating these insights. It’s like turning a black and white movie into technicolour. These new insights can enable your management team to make well-informed business decisions, and therefore create better business outcomes.
The role of the commercial manager suddenly changes. Instead of interrogating costs after they have occurred, he is able to proactively assess productivity in real-time and make any necessary changes that generate higher efficiencies on a day-to-day basis. In equal measure the procurement manager is also able to carefully monitor volumes purchased and ensure no unnecessary wastage.
The Changing Nature of Man, Money and Machine
Whilst man, machine and money are interrelated parts that appreciably affect the success of a construction project, we’re also starting to redefine the roles of these three players. For example, the term machine should no longer be confined to the construction machinery on-site, it should include all software and technology within the business that a commercial manager is able to utilise.
Thanks to the improvements within technology and software, the creation of automation, activity tracking, data analytics and reporting can relieve man of menial tasks. As a result man becomes more useful and productive, by applying his rational thinking towards strategic decision-making. This idea is critically important as it conveys the impact of money (or earned value budgeting) when man is more valuable per hour.
Modernise your Business
The industry standard is now that every business is a software business. This is the advent of transforming the construction industry and drawing much more meaningful links between man, machine, and money using construction project control software. It is incumbent upon organisations within the construction industry to realise the huge advantages of specialised software and data analytics. Click here to find out more about the options available for your company.