Optimizing Cost Oversight: Using the Power of Cost Management Module

BASSANT OMAR: Hi, everyone. Today, we will talk about our industry talk, which is related how to optimize cost oversight using the Power of Cost Management Module. Today, we are talking about our customer, Square Engineering Firm. So I have a guest speaker with me. Mahmoud Abouelzam is representing Square Engineering Firm, our customer. And I'm Bassant Omar from Kemet Corporation.

Before we start, I will highlight first about the speaker briefly. And then we will start our presentation. So, my name is Bassant Omar. I'm the Digital Construction Manager at Kemet Corporation.

I have an architectural engineering background with master's degree in Environmental Design & Planning. I have more than 10 years experience working with Kemet Corporation. And I have almost 10 years experience in Mega projects, using BIM technology. And I have around 10 years experience in implementation services and training service. I'm also Certified Instructor from Autodesk, Certified Technical Support, Revit professional and consultant for implementation services.

My company is Kemet corporation. We are a service provider. We are working with Autodesk since 40 years. And now, we are in the market since 1984.

And we are value added distributor for Autodesk since then. And we have more than 50 professional BIM certified engineers. And also, we have delivered more than 40 projects BIM-based. And also, we are expanding our services now in Saudi Arabia as a value added reseller. We are a service, and we are having an extensive experience in CAD, BIM, GIS, and ACC technologies through our projects I will let now, Mahmoud introduce himself. Then we will start our presentation.

MAHMOUD ABOUELAZM: Hello, everyone. My name is Mahmoud Abouelazm. I'm the Process Information & Document Control Section Head of Square Engineering Firm. I have a bachelor degree, focusing in Social Work. I have 5 years working with the Square Engineering Firm, plus 12 years experience in Document Management & Controlling, plus 4 years experience in process and information management.

Let me introduce the Square briefly to you. Square is a leading main contractor in Egypt and Middle East. Square was founded in 1992. It's been plus 13 years in the field now.

We have plus 15 professional engineer. We have successfully delivered plus 16 projects. Our services is general contracting, design and build, electromechanical works, commercial fitout, residential fitout maintenance, construction repair.

BASSANT OMAR: Thank you, Mahmoud. So we will start our presentation. We will first talk about an introduction for cost management process and how it impacts the project life cycle during its stages. So as we see here in this chart, we have the cost influence curve, showing that how cost impact during the project life cycle start from the beginning to the end.

At the beginning, you can see that the stakeholders can start to manage the project, have decision making at highest point because it's the beginning of the project. So they can start to select effective material, effective strategic planning, and cost controls, and so on. And at the same time, the cost is at the lowest point, which means that we have 0 cost because we are starting to estimate our project and our budget and so on.

During the project life cycle from project phases, starting with the conceptual planning and then going through the handover, we are seeing that the curves for the stakeholder management is dropped down. And we have the curve for cost construction is going to the peak. Because during the project life cycle, we have a lot of obstacles related to cost management, which led to high of cost.

And decision is a little bit uncertain. We can see all the problems for the cost management and so on. So that, as we see, we have a big problem at the construction phase. Because every time you start your project, during the project life cycle, you will find that every time the cost is going higher and higher until it will be at the maximum point. And at the same time, my influence as a stakeholder will be at the end point.

Because we don't know what is going on, so we have a lot of problems. We have a lot of obstacles so that we need to know what is going on, especially for construction because it's the main particular part of the project, which cost overrun. So we have to start to find a cost management process we can follow so that we can eliminate errors during the project. We can make a financial stability during the project life cycle, especially for construction process.

So the main cost management process, which is the default one, is having resource planning, cost estimation, budget, and then have control and the change management. Every time you will start to follow the same or implement the effective cost management process, you can start to figure out what is going on, especially in the construction phase, so that you can stop at any time, take the right decision before you have any cost overruns or delays on your project.

So today, we will show off how we can start to use the cost management process criteria implemented in our customer story. We have today, as we said before, Square Engineering Firm. So we will talk about how we started to implement Autodesk Build, what the challenges motivated Square to start to find a connected technology for cost management. And then we will show off how cost management module blows out Excel from their problems. And then we will have the importance of integrating cost management with ERP.

Because they are using an ERP system for finance and financial department, so how we start to integrate with. And then, we will show off the value of connecting all of the cost workflows that we have implemented, and at the same time the benefit of integrating ERP system. So I will let Mahmoud start to talk about the challenges they have faced in their implementation phase and the motivation behind adopting the cost management module.

MAHMOUD ABOUELAZM: OK, the motivation, which leads us to search in the market for a platform to manage our cost data is a lot of scattered data, a lot of mass communication through the WhatsApp or through phone. That poor communication tools and skills behind all the Liverpool data, which caused issues for the forecasting accuracy and the cash flow and reporting and non-recoverable costs.

So our many challenges is to find a platform to manage our subcontracted payment, to track our actual cost during the project life cycle, to track variation, deduction, and additional scopes efficiency. So we started our search journey in the market, starting from 2019. We started to search for the Aconex and Laserfiche. But due to the higher cost of the license pricing, we had to search more for another product, such as OpenKM.

We find the community version. We use it as a document management system. At this time, it was fair enough for us. So we headed to another local ERP system, ONYX ERP. So it was efficient managing our purchase order and our accounting processes, but not with subcontractor processes and payment.

So the next half of 2021, we started to put a plan for implementing SAP with FICO and MM modules. And at the same time, we find that Autodesk Construction Cloud, coming with the Build and Cost Management modules to manage our field processes and our cost processes with the subcontractors and subcontractors' payment application, which leads us to integrate between the two platform, SAP and ACC. This is our current status. So our next phase is to get the ProEST and SAP PS for the estimation process before the operation process. This is coming in the first half in 2023.

BASSANT OMAR: As Mahmoud said, the journey to find the right fit is searching the market for the right vendors, the right software. So they start to search and search. And then, they tried multiple software until they found the right one, which is Autodesk Build and SAP, FICO, or any of their modules. And then, how they go live and they start to integrate with SAP. Because as we said before, we are using both of them.

We are using one for financial module as SAP, and for construction process as Autodesk Build. And then, how they start to find the right integration points between the two software. So as we said, we have to focus on the main goal for our client, which is having centralized and connected cost management. So we will start to consider our Autodesk Build, which have Autodesk Docs at the main storage for the old data to be the common data environment to include all contracts, payment application, expenses and so on.

So that they can have better cost control. They can have streamline cost of workflows, enhanced collaboration. And also, they can improve forecast accuracy based on the actual cost that they can monitor well. And then, they will have a real time visibility for all data that they already have. So we will start to talk about the convention workflow, how they start to use Excel sheets, and then how they start to move on cost management module, what are the challenges they have faced using the Excel sheet, and why they start to use Autodesk Build, especially for cost management module.

MAHMOUD ABOUELAZM: Yes. Here, the limitation of using Excel sheets appears that the lack of real time updates that we are not working in the same file in the same time, which leads to limited collaboration between the teams. That leads to error-prone calculation within the Excel sheets and the poor efficiency of data integrity and security, scalability challenges, limited visualization options, and the rerporting.

So let's take a look for a real screens from our previous workflow that shows the security warning for the Excel files and invalid calculation with Excel and a lot of multiple tabs connected, but not lead to anything, a lot of scattered data everywhere. So that would lead us to a lot of collaboration issues and not having the real-time updates, as I said before.

BASSANT OMAR: So because of the challenges they have faced, we start to figure out how we can overcome these challenges. So we start to propose for them, Autodesk Build, which have multiple features related to construction management, starting from document management. So they can install to enhance their document management system by storing all the project data. Then, they can start to use project management quality and safety to manage the project. And then, they can hyperlink all of this data to be linked with the cost management module.

So as we said, we focused on the cost management features that we have started to create with them, using the budget to create the budget and contracts. And then, we start to manage all the variation orders and also to generate all payment applications, especially for all subcontractors that they are dealing with or suppliers. And then, all of these data that for goes forecasting tabs that we can use it for accurate forecasting for the cash flow for the project.

So also, we start to focus on how we can integrate both, generated data from construction site and other tools. So as we see here, we have the host management module with the main features to generate expenses, potential change orders, budget, and so on. And at the same time, we have the unified platform, which is Autodesk Docs, which contains all the other submittals, which affect all cost process during the project life cycle like RFIs, submittals, issues, schedule, activities, and so on so that we have a hyperlink between all technical evidence from the construction process to be linked to all cost payments that we already have.

So we have a clear vision, what is going on the site and how we can collaborate with each other. At the next level, we can start to integrate. As we see here, we have integration partners between Autodesk and other software vendors. So we can start to integrate so that we can optimize and maximize the benefits of integration. As we see here, we have a default integration partners, it's already existing. Like Power BI, we can use Autodesk Construction Cloud Connect to make the connection between all platforms that mentioned, like Microsoft Dynamics and SSE. Or we can make a customized connection or integration point between vendors like Oracle and SAP because they are the most popular one in Middle East and Autodesk Construction Cloud.

So as we said before, we are trying to focus to overcome the challenges for using Excel sheets for the cost management in Square Engineering Firm. So we start to focus on standardization, how we can start to standardize all documents and standardize all data to make sure that we can later on, have a clear mapping between all data that we already have that is from SAP database from Autodesk Construction Cloud or any other platform, to have a single source of truth to make sure that we are all of us using the same data at the same time, not outdated data or we are using the miscommunicated data.

Also, we try to focus on how to improve accuracy. Because as Mahmoud said, we have a lot of problems using Excel sheets related to accuracy, prone calculation errors generated from Excel sheets, using the formula and so on. So we also focused on how to increase collaboration between all teams. Because as we said, we have multiple stakeholders in the project life cycle.

We have accounting and financial, we have construction team, we have technical office, we have procurement and so on. So we have multiple entities in the project, that they are collaborating. So we need to make sure that all of them at the same page using the same data.

Also, we are seeking for a paperless workflow as a sustainable direction to make sure that they are not printing documents, sharing documents with other teams and start to consume time, consume materials to make sure that they are on the right approval workflow. So we are focused also, to make it as a paperless workflow. And at the end, we focus to make sure that all of these activities have been already written or recorded to make sure that we have a data-driven insights to make sure that all the project data is already compatible with our dashboards and reports. And at the same time, it's a real data driven, which means that we are seeing the real project progress.

So as we see here, we're told that we are focusing on a standardization. So we started to make a unified data, which means that we have to make sure that all tools that we are using in Square Engineering Firm reading the same data. So we started to unify the cost code to make sure that all of them are aligned at the same cost code, to make sure that we are figuring out the same data.

As we see here, we have started to make the setup for Autodesk Build to make the same cost code for the budget to make sure that we are tracking the right data. And at the same time, while they are implementing SAP, they are using the same database so that both of us are using the same structure. Every time you will start to collaborate with other tools, you will find that they are using the same language so they can integrate easily.

And also, we start to focus on how to make sure that we are managing subcontractors. We have multiple subcontractors and its related payments, purchasing orders, suppliers, and so on. So we need to make sure that we have the right company directories.

So we start to make sure that we have the right company profile for all the systems that we are using for our Square Engineering Firm. So they started to create the company's profile using SAP S/4HANA. And at the same time, I have created the company directory in Autodesk Build so that we can have the same information about the companies that we are working with and. All of them are integrated using the same ERP ID.

And as we said, they are seeking for standardization to make sure they have a seamless workflow. So we set up all the documents as predefined templates so that they can push any type of format later on for collaborating with other entities from outside the company or even internal to print it for the final approval or any type of requirements. So we have predefined all their templates.

And then as we said before, we need a common data environment. So every time you will start to select any of these data, you will start to find a pop-out panel that show off all data related to this contract or payment application with all data. And as you see, it supported Arabic language too. Because in Egypt, they are using Arabic language.

So it support their language. And it's easily to detect any type of data you need immediately. No need to search for multiple folders and so on.

And as we see that we need to improve the collaboration. So because we have now a common data environment, all the teams can access the data at the right time. As we see here, we can hyperlink, all the related evidence from technical construction site.

As you see, we have the submittal. So we have the submittal initiated or created by the technical office. So they are operating on the system at the same time I'm operating on the system, and we are collaborating using the same data, no need to duplicate work, and so on. And the same is for planning and other teams. So as we see here, if you start at select any type of contract, you will find a hyperlink activity, based on the schedule imported by the planning team and so on.

And as we said, that we are focusing on the sustainable seamless workflow. We see here, that we have used the automated workflow predefined in the Autodesk Build to make sure that we can make the approval workflow process. No need to print documents and then go to another entity to start to review it and write comments and so on. So we started to use the automated workflow to make sure that we are eliminating using paper.

So now, we will talk about the integration process and how they started to integrate after successfully implemented Autodesk Build in their company, how they start to make the initiative, and why they found it's important to integrate ERP system. So I will let Mahmoud talk about their challenges and why they are focusing on integrating ERP with Autodesk Build.

MAHMOUD ABOUELAZM: Yes, our current requirement at this stage was the integration for two goals, for the subcontractor contract and for the subcontractor payment application. So the outcome for the integration for those two goals is having a single source through between our construction team and between our financial team, which leads us to real-time cost tracking and controlling and of course, collaboration between our teams. Also, seamless system integration between the two platforms, ACC and SAP, which leads to reduced the error and increase the accuracy of data and of course, the financial data, which leads to time saving and reviews and approval, which finally enhances our financial visibility and reporting that.

BASSANT OMAR: Thank you. So as Mahmoud said, they are focusing on specific points to integrate between SAP and ACC at this stage, which means that they are focusing to manage the subcontractor payments from the beginning to make sure that they have a seamless workflow. And then, they can enhance the level later. So as we see here, we start to figure out what the integration points between ACC and SAP to make sure that we have the right mapping data and the common language between the two platforms.

So as we see here, they started to create their service database on SAP and then started to push it back to ACC using the cost contract and cost contract codes, because they are aligning the same data, as we said, using the same cost code. Once they have created the cost contracts with its codes on ACC, they started to push it back in the material management module to create the purchasing order IDs.

So once they start to create the purchasing order IDs, they have to bring it back to ACC to make sure that they are aligning the same document ID, and they are not duplicating work. Because as we see here, they are creating multiple documents in ACC and push it to SAP and vice versa. Once they have created the PO ID, it automatically back to the cost contract code and the cost limit application attribute to make sure that we are aligning the same IDs between the two documents.

And then, once they have created the cost contract and start to execute on site, they start to create the cost payment application, expenses, and the change orders using Autodesk Build. Once they have finished all of these documents and make the approval workflow, it's already approved by the construction manager and project manager. Then they started to push it directly to the FICO module, which is related to accounting and finance, so that they can manage all the subcontractor payments and track everything.

So related to the integration process, as we said before, they are focusing on two steps, one for subcontractor contracts. And the other one is for payment application. So in the integration process, they started to create the common template that they can push it between the two platform. As we see here, to push the data from ACC or Autodesk Build to make sure that we are aligning the same data as they have customized the template, contains customized attributes to make sure that they are aligning the data between Autodesk Construction Cloud and SAP.

So that once, I will start to push this template from ACC after creating all the cost contracts here, then we can start to import it back in SAP. Automatically it will be assigned in the same place so that finance or accounting teams, they will see every contract they have created on ACC. And they will not repeat the task again and create it on SAP.

And the other part of the integration process is related to how they created the subcontractor payment application and how they managed using the two platforms. So as we said, the main step for a successful implementation is to have an effective workflow from the beginning and the setup phase. So they started to create their data on ACC as the main platform to manage or to monitor all data related to budget cost, contracts, supplier contracts, and so on, and also the payment application.

Once they have started to execute ACC and they have established all the data, they start to push this data, using the templates that we have created before. As we see, the template is created in Word file. It support all formats like Excel and so on. So they started to create all documents, which support their work according to their formats. And then they started to create the customized template to make sure that they have the right data to be pushed for sale.

Because as we said, we have integration points. They are not pushing everything. They are pushing the data that required by SAP team to make sure that they are aligning the accounting and financial team without going on the hustle, how we are dealing with technical issues and so on. So once they start to pick the right parameters or attributes to be pushed to SAP, and then they start to use the SAP uploader so that they can import the Excel sheet that we have pushed from Autodesk Build.

And once it will be pushed, as you see here, it's already imported inside Excel, inside SAP using the Excel format that we have. And then, we have the same data between the accounting and finance team, and at the same time, the construction team. So no need to go with the ERP language to know how to deal with.

All you have to do to work with your tools like construction management for site engineers or technical office or planning and so on, or even your cost control team, you can use Autodesk Build. Once you have finished your work, you can push all data for the finance and accounting teams. No need to duplicate work, no need to re communicate and to extract data multiple times to make sure that they are aligned with you at the same time.

So, the benefits of integrating the cost module with ERP that they have now, a streamlined operation between the accounting team, construction team, all the stakeholders involved in the project, from construction and from a technical office and accounting. Also, the story now enhances cost control, because now, they are having a transparent visibility related to all the cost, actual cost on site. And at the same time, it's already compared with the estimated budget so that they can have all the raw data. And they can take the right decision at the same time.

And also, we have improved the accuracy of the financial reporting. So that now, the accounting and finance are aware or fully aware about everything is already constructed or executed on site so that they aligned with the payment at the same time that we are releasing from the technical side, so that all of them are aligned at the same time, which led to improved the collaboration between all the company. stakeholders from the finance, accounting, all the teams. So that the company now have a solid business architecture that they can go through the next step to automate the process to make sure that they have human error eliminated in the projects. And at the same time, they have the real visibility for the project.

All of that, for sure, make a time savings because they are consuming a lot of time to make sure that they are connected right, they are collaborating right, they are communicating using the right data and so on, so that we save time using the integration between the cost module and the ERP. And at the same time now, they are capable to streamline the audit process so that they can enhance the process to make sure that they are taking the right decision.

Now, we have finished our presentation related to the technical aspect. We will hear from Mahmoud as a representative for Square Engineering Firm, how they found the added value and return on investment after implementing Autodesk Build and ERP system, using both of them.

MAHMOUD ABOUELAZM: Yeah. We found that the added value of using the two platform and the integration between both of them is having an online data access for everyone and concurrent data modification, improved data quality, latest data for everyone, workflow-driven routing of information, real-time to-do lists, automatic reminder, real-time status tracking. All of that lead us to calculated the time saving is 8 hour per week per person, as a average across all our business units.

So our return on invest is 13% of time saving and 15% of material savings, such as we are heading to paperless work and seamless workflow and 70% better collaboration between our business unit and our teams. So I think it's fair enough to have the two platforms working integrated together. So yeah, that's it. And I think this is the final stage and. I would like to thank you all and thank you, Bassant.

BASSANT OMAR: Thank you, everyone. And now, we have finished our presentation. So thank you all.