Whatever you call it—modular construction, offsite construction, prefabricated construction, manufacturing-blended construction or construction integrated manufacturing, operating in a shop environment instead of the construction site makes sense. The work is more efficiently, at a lower cost and at a higher quality. Shop environments let the same number of people perform more work, so as the aging skilled workforce retires, modular will be attractive for human capital management purposes. It is no wonder more contractors, house builders and engineering firms are pushing the use of shop-based construction and more project owners are seeing the value.

But construction is somewhat technologically behind other industries already. How quickly can they adopt core business software like enterprise resource planning (ERP) that can encompass not just site-based construction activities but the manufacturing and supply chain activities of a lean manufacturing shop?

While most Construction organizations run some type of ERP, the majority have implemented barely more than finance and human resources. Projects—the lifeblood of the business—are managed in siloed project management environments or Excel.

A single ERP for projects and manufacturing/fabrication

IFS Cloud gives contractors a rigorous approach to offsite work with a broad enterprise suite that addresses both project management for site-based work and manufacturing for off-site fabrication or assembly.

Some modular builders have historically been construction contractors—perhaps design-build generals. But over time they expanded into offsite disciplines like wall panels or mechanical controls. These companies stand to gain sophisticated supply chain and inventory management, lot and batch tracking and bill of material management. They also can benefit from moving to more standardized content rather than a unique iterative design on each project. Standardization means they can come into a client engagement with a more competitively priced product that can be delivered in a shorter lead time and to a proven quality standard. While these companies have been involved in construction for a long time, they also stand to benefit from the comprehensive financial project controls built into IFS Cloud.

Other modular builders start their lives as manufacturers, perhaps working with construction contractors as partners for their prepackaged, engineered system. But very often the client will expect them to perform erection and installation work on site. It is up to that manufacturing-centric business to ensure their on-site work is expedient, cost-effective, profitable and is executed using the expected construction industry processes. When these companies implement IFS Cloud, they gain not only construction industry centric project management and control capabilities, but equipment and asset management or equipment rental management as many of these environments require a crane or other equipment to install structural members, control systems or other modular components. They also gain the ability to manage shipment and transport of materials to the construction site according to the project schedule and manage subcontractors—a critical gap most manufacturing-blended construction contractors face.

Advanced project control

As a project-based solution (PBS), IFS Cloud lets you create and manage in real time, including a work breakdown structure, work package management, bills of quantities, project variation control and change orders. IFS Cloud can track equipment cost against a specific project regardless of whether you rent it externally or if the project “rents” the equipment from your own internal division. As standard functionality, it delivers estimate to complete (ETC), estimate at completion (EAC) and margin forecasting based on real time transactional activity.

IFS Cloud unites projects and manufacturing into a unified whole. IFS Applications has long been the solution of choice for engineer-to-order (ETO) manufacturing, so the solution is mature and proven. The same core software is also a proven world class solution for traditional construction companies, so it includes functionality for on-site project elements including subcontractor management and delivery of materials on site, creating a unique solution designed not for design build, but for design, procure, manufacture, ship, construct, install, commission and maintain.

What does it take?

It becomes obvious that offsite construction requires a broader spectrum of ERP software functionality than a software product dedicated only to construction can offer. Modular builders have success running a broad spectrum of IFS Cloud functionality to manage all stages of the project and asset’s life including:

• CRM, estimating and bid management
• Contract management
• Risk management
• Contract change management
• Project planning
• Project cost control and forecasting
• Engineering and integration to BIM
• Project management and progress tracking
• Procurement
• Sub contract management
• Document management
• Materials management and logistics
• Manufacturing planning and execution
• Site management
• Equipment management and rental
• Work package management
• Time recording and payroll
• Quality
• Health and safety
• Time and expense recording
• Purchasing and supply chain management
• Finance
• Human capital management
• Maintenance, asset and facilities/service management
• Corporate performance management or even operational intelligence

Learn more

The time has never been better to invest in offsite construction systems and processes. This is where the market is going, and where the margin will be in the coming months or years. To learn more about how IFS can help you differentiate your construction business from the pack, visit

https://www.ifsworld.com/corp/industries/engineering-construction-infrastructure/construction-infrastructure-industrial-services/

For general information about IFS Cloud, visit ifs.com