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Overestimated budget
At this point, it is again worth recalling the framework schedule. Estimating the implementation is one of the primary activities that must be performed before any work begins.
To begin with, you need to verify the need for a particular solution in your company. Do you think it’s necessary? Is there a budget to implement an ERP solution in the organization? This is extremely important for the start of the work and the success of the entire implementation. Budgets and cost estimates have it that they often do not want to “pin down” at the final stage. There are always unforeseen expenses that should be included in the tables. And it’s hardly surprising – that’s why they are unpredictable. Hence the need to set up a budget “on top.”
In our experience, the buffer should be 10 – 20% of the value of the original assumptions.
Therefore, everything must be calculated carefully and then scaled again to the needs of a given company/plant/enterprise.
It is worth asking ourselves a fundamental question: can we afford it, will this investment bring us the expected benefits (not only purely financial ones).
As they say: budget is not made of rubber, and nerves are not made of steel.
Top tips
- Stick to the plan or consciously make changes - you will avoid uncontrolled budget expansion
- Park - create a list of all exciting improvement ideas and include them in the framework schedule or move them to the end of the implementation work queue - this way, you can maintain the pace of implementation and come back to them when the most critical work is completed.
- Read the reports - the contractor should make the information available anytime.
- Be proactive - ask questions, involve your team in work, and find time for testing - these activities will reduce costs and improve understanding and control of the budget.
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