Home OPMR 4 - Horizontal Integration

7_D_Image4Dimension 4

Horizontal Process Integration

 

Of the key project management processes, the management of human resources, materials, and financials are closely related and often interdependent with enterprise business processes. Integrating them provides for efficiencies for operations and projects.

On a high level, the following aspects give an idea of the organizational maturity.

7_D_4_small Procurement of Resources & Materials
As part of the business ecosystem, it makes sense to integrate procurement functions. A lack thereof will lead to double-work, costs, inefficient warehousing and MRP, and a disconnect between planned and actual or committed costs. Earned value and cost reporting will therefore be incomplete.

7_D_4_small Financial Functions
These include cost planning and budgeting, revenue planning, actual costs and revenues, cash flow, and financial reporting. All such functions have a direct impact on corporate reporting and management requirements. They are also typically handled by specialized ERP application.

7_D_4_small Resource Management
Employees, and many times also contractors, are of course already managed using HR systems that often are part of anb ERP application.

A more detailed analysis will address specifics about key operational and corporate processes. Cost panning alone has close to 30 functions, and procurement and internal resource management have over a dozen more.

 

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