CMIC ROI Sales Presentation

Is your organization as efficient as it could be?

How can your company become more efficient?

Are you wasting valuable resources (time, money)?

Are you exerting more effort than necessary to perform your current business processes?

Efficiency & Your Organization

Optimize: Tougher competition in the marketplace is generating the need to better optimize resources

Eliminate Waste: Improve profitability and keep customers satisfied

To improve operations and provide faster customer response

Meet your specific construction (No matter what segment of construction you are in) business requirements

Why Become More Efficient?

Make things better

You need better processes to gain greater control over your environment

You need new technology to stay competitive

You need to bring in new knowledge and techniques to your organization

Why Business Process Improvements (BPi)

CMiC BPi Focus - Stage 1

Stage 1 – Strategic Planning

This is the

What

Who

When

The What


Focus on the highest ROI processes

Job Initiation Process

Estimate to JC Budget

Forecast to WIP

Payment Management

Potential Change to Owners Change Order

Contract to Pencil Copy to Owners Invoice

What is a Problem?

Something that results in a loss of productivity

Increases the “Risk-Metric” of a company

Reduced information availability

Creates customer or Employee DIS-satisfaction

What is a Problem?

In summary:

A problem is anything that causes waste!

Waste IS quantifiable

Waste IS not always obvious to the end user

Waste needs to be determined on an ‘end-to-end’ enterprise basis

Current Infrastructure:Non-Integrated Approach

Increased exposure to risk

THE RIPPLE EFFECT

Impact

Current Infrastructure:Non-integrated Approach

Minor “efficiency pop”

Gain is unsustainable and will be levelled off

Improvements will quickly max out

Problems with current infrastructure:

The Efficiency Chain:Everything Is Connected

The improvement is not sustained throughout the organization if only implemented in one business process or department

Because the efficiency curve is not transferred to your next process any temporary gains received will quickly max out

% E

ffici

ency

Efficiency Curve

Time


Summary:


The automation of a process provides improvements in one area but does not improve the overall business process across the organization through various departments/

Efficiency curve is not transferred into your next process

The Efficiency Chain: Everything Is Connected

To manage an organization efficiently and effectively you must look at the overall structure and look at savings end to end

The Efficiency Chain: Everything Is Connected

About ABC Company:

The CMiC Advantage: A ROI Process that Makes Sense

100 plus years old

General contracting, constructionmanagement and design-build services

10 Regional offices

Listed in ENR’s Top 100 GeneralContractors List

Multiple construction disciplines

ABC Company: Current Technology Infrastructure (Systems Used)

Accounting - Legacy Character mode system

Standalone Equipment Management system

Standalone SRM System

Offline Bid Management

Minor interfaces developed inhouse

The CMiC Advantage: A ROI Process that Makes Sense

Waste eliminated - reduced # of steps

Redundancy reduced

Time and costly resources saved

Efficiency gained across the entire organization

Business process improved

Reliable and timely information available

The CMiC Integrated Approach Breakthrough Improvements

pinez


Example: ForecastingNumber of steps required with Standalone non-integrated approach: 14Number of steps required with CMiC’s integrated approach: 3 Forecast cost and revenue

Review for negative variances and reforecast

Store forecast

Forecasting Comparison of Savings

Savings (Steps)

14

Current CMiC Savings

3

11

Forecasting Comparison of Savings

20

18

16

14

12

10

8

6

4

2

0

Effo

rt U

nits

Savings (Days)

Steps1 3 5 7 9 11 13 15

Current

CMiC

Qualitative Benefits

One database eliminates need to consolidate information from multiple sources

Cost and revenue forecast done from single point of entry

Comparisons with Excel spreadsheets and Standalone PM no longer required


The Ripple Effect Revisited

Improvement of Process

Improvement of process

One major IMPROVEMENT can now reflect throughout the organization’s departments


WORK IN PLACE (WIP)

REVENUE RECOGNITION

FORECASTING


WIP - Comparison of Savings

Savings (Steps)

12

10

8

6

4

2

0

Effo

rt U

nits

Savings (Days)

Steps

1 2 3 4 5 6 7 8 9 10 11

Current

CMiC

WIP - Comparison of Savings


Qualitative Benefits

PM has ability to freeze forecast once completed

One database eliminates duplicate entry and minimizes use of spreadsheets

Comparison of Efficiency

Time

Live Demo

ABC Company:ROI Case Study Overview

Savings Highlights (Effort Units)

Job Forecasting - 16 Effort Units

Subcontract Payment Processing- 11 Effort Units

Human Resources - 12 Effort Units

Job Budget Creation and Billing- 8 Effort Units


The Who

Your Team should consist of:

Executive Sponsor

Project Manager

Functional Team Heads from Departments

Example in Forecast to WIP

One Person to represent Accounting

One Person to represent Operations


The When

Schedule all stages of the implementation in advance with slide time


Stage 2 – Creating a BusinessProcess Map

Think of this as a Schematic Design

Business Process Mapping Seminar Conducted by a Business Process Engineer

Document of all major steps

Inputs and Outputs

Creation of Business Process Documents


Stage 3 – Setup of 50% design

Using CMiC Project Engineers CMiC will setup based on the BPM document

These will involve assumptions based on information provided during the Business Process Seminar

This will be presented to the client team

This presentation will involve most major inputs/outputs and steps


Stage 4 – Training and Use Case Testing

Concurrently with the setup of 50% design client team will create use cases to test the design assumptions

These use cases should be in 2 categories

80% rule – the normal state of affairs

20% rule – the difficult situations


Stage 4 – Use Case Testing

After training by a CMiC trainer the team will ‘beat up’ the design

Test and approve all use cases

If changes to design are required it must be documented and BPM updated

Once all changes are made this will product 80% design

CMiC BPi Focus - Stage 5 And 6

Stage 5 – Training Material

Devlopment of end user training material

Stage 6 – Data conversion

Collection and Validation of Data


Stage 7 – Pilot Go Live

The first go live should be conducted ona small scale

A set of key players that are flexible and easy to work with

Final changes will be made to design


Stage 8 – Final Go Live

This is where we complete total roll out for the process improvement

Metrics should be gathered and documented of the improvement


Stage 9

Post Implementation analysis

What went right

What went wrong

Where can the process be improved next

CMiC BPi Focus - All Stages


Stage 2 – Business Process Mapping

Stage 3 – 50% Design

Stage 4 – Training and Use Case Testing

Stage 5 – Training Material Creation

Stage 6 – Data Conversion


Stage 8 – Go Live

Stage 9 – Post Implementation Analysis