In this 30-minute session, you will learn: 1) What Project Control is and why you need it 2) Why many manufacturers need to use this tool 3) How Project Control fits into an ERP system

1. ERP 101 Session 11
PROJECT CONTROL – A Vital ERP Tool for Many Manufacturers
David Bush
Senior Manufacturing Consultant, Rootstock Software

3. The ERP 101 Webinar Series
Date Topic
Aug 2, 2016 An Introduction to ERP for Manufacturing
Aug 16, 2016 Engineering – Learn how to create Part Master Records and Bills of Material
Aug 30, 2016 Engineering – Learn how Change Orders and/or Revisions ensures that ERP system data is
accurate and up-to-date
Oct 11, 2016 Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and
Procedures
Nov 1, 2016 Shop Floor – See how scheduling the Shop Floor through ERP controls Labor and Machines
Nov 29, 2016 Procurement – Link your Vendors and Purchased Parts via ERP
Dec 13, 2016 MRP – Step through an overview of this vital ERP subset
Jan 24, 2017 Work Orders – Manufacturing’s Starting Point
Feb 14, 2017 Inventory – Maintaining Accurate and Reliable Data
Mar 21, 2017 Sales – Linking your Customers and Products with ERP
Apr 25, 2017 Project Control – A Vital ERP Tool for Many Manufacturers
Jun 13, 2017 Tracking Costs Using ERP

4. Meet Our Speaker
David Bush
Senior Manufacturing Consultant,
Rootstock Software
• 30+ years of manufacturing and MRP/ERP
systems experience
• Previously at General Microcircuits,
Consona Corporation, Relevant Business
Systems, Inc.

5. A Quick Recap
• What we have covered in our first 10 episodes:
– How the ERP System handles all aspects of manufacturing:
• Items
• Bills of Material
• Sales Orders/Customers
• Purchasing or Procurement/Vendor Control
• Inventory
• Shop Floor Control/Routings
• Scheduling
• Work Orders
• Inventory planning via MRP
Today we look at a another facet of ERP/MRP systems,
one that may or may not be a requirement in your facility,
Project Control.

6. What, Exactly, IS Project Control?
• Project Control is an ERP tool that provides the ability to:
• Segregate work in the factory by project number
• Plan material for specific customers, contracts or jobs
• Track all costs (material/labor/overhead/odc) by project
• Maintain distinct costs of the same item in different projects
• In effect, Project Control allows you to run each job in your facility as if it were the
only job, while providing the flexibility needed to take advantage of enterprise
systems.
Lets take a closer look at some of the specifics regarding Project Control.

7. What Capabilities are Added Under Project Control,
compared to a company not using this tool?
• Inventory, labor, machine costs, overhead, etc. are all segregated
under specific projects
• A unique Project Number is required for all transactions,
purchase orders, sales orders, Work Orders, etc.
• A unique sub-ledger (set of accounts) may be established for each
project, further segregating the project activities from each other
How would a ‘Project’ be defined for MY company? Let’s look at some
of the possibilities.

8. How is a Project Defined?
• No hard/fast definition… A project can mean different things to different companies
• May indicate unique contracts or pieces of a contract to government contractors
• Engineered to Order Items may each require a project
• Customer or group of Customers may be a project
• Business Channels (government/private/construction, f/e)
• Control customer-supplied material
Any of these indicators, or a combination of two or more, may direct a company to ‘turn on’
Project Control.
How does Project Control affect planning? Let’s examine some considerations
for MRP.

9. Project Control’s effect on MRP
• When PC is active, MRP plans by Project. Each supply and demand
within the project is completely segregated from other supplies
and demands for the same items used in other projects.
• Global Items are planned across projects.
– Global Items are labeled as such because there is little benefit to planning or tracking them by project.
They may include things like:
• Hardware
• Solvents
• Solder
• Packaging
– Typically, items coded as ‘global’ are used on most or all projects, and are low-cost or bench-stock
items.
How are manufacturing activities ‘touched’ by Project Control?

10. Project Control’s Effect on Manufacturing Activities
• Sales Order Lines require a project number which then links the item, it’s subassemblies
and individual parts to that project.
• Forecasting may be linked to specific projects.
• On-hand inventory is project-specific, although many projects may reside in a single
location id/number (the segregation is electronic, no physical).
• Purchase Requisitions and Purchase Orders are linked to specific projects.
• Work Orders are created by MRP for specific projects.
• Operational Transactions become project-specific:
– Shipments
– Labor
– Purchase Receiving
– Work Order Receiving
– Inventory transactions (adjustments, movements, etc)
– Indirect and Service Item Purchases

11. Using Project Control in Rootstock
• Project Control setup considerations
• Running MRP under Project Control
• Sales Order Lines
• Purchasing Lines
• Inventory

12. Division Under Project Control
Let’s look at some of the tab information.

13. Creating a new Project for a Division
“

14. Inventory Item Master Flag
Let’s see how PC affects Inventory Locations.

15. Inventory Location Add under Project Control
This is a ‘global’ or ‘home’ item, so no other project is allowed.

16. Sales Order under Project Control
Looking at Project Costs…

17. Examining Project Costs
Now We Will Review What We’ve Covered Today.

18. What have we covered today?
• Whether or not to use Project Control Requires a LOT of thought.
• Project Control may be used for many different reasons:
– Government Contractors
– Project by Contract
– Customer-supplied material
– Various other scenarios
• A Global or Home project is used for material that is not project-specific.
• MRP may be run by Project, group of Projects or for all Projects.
• Sub-ledger accounts may be established for each Project, but not required.
All things considered, if needed, Project Control is an amazing feature
in modern ERP systems.

19. Where Do We Go From Here?
• We have now covered the basics of:
– Manufacturing, from creating parts and bills of material to
purchasing material
– Creating demand for items via sales orders
– Building sub and final assemblies using routings and shop floor scheduling
– Using the basic planning tool used by all ERP systems
– Material Requirements Planning
– Project Control
• In our next webinar we’ll discuss Manufacturing Cost:
– What is Actual Cost? What is Standard Cost? What is Weighted Average Cost?
– Which One Should I use?
Now let’s go back to our moderator, David Cosgrove…

20. Q&A
www.rootstock.com
888.524.0123
marketing@rootstock.com

21. The ERP 101 Webinar Series
Date Topic
Aug 2, 2016 An Introduction to ERP for Manufacturing
Aug 16, 2016 Engineering – Learn how to create Part Master Records and Bills of Material
Aug 30, 2016 Engineering – Learn how Change Orders and/or Revisions ensures that ERP system data is
accurate and up-to-date
Oct 11, 2016 Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and
Procedures
Nov 1, 2016 Shop Floor – See how scheduling the Shop Floor through ERP controls Labor and Machines
Nov 29, 2016 Procurement – Link your Vendors and Purchased Parts via ERP
Dec 13, 2016 MRP – Step through an overview of this vital ERP subset
Jan 24, 2017 Work Orders – Manufacturing’s Starting Point
Feb 14, 2017 Inventory - Maintaining Accurate and Reliable Data
Mar 21, 2017 Sales - Linking your Customers and Products with ERP
Apr 25, 2017 Project Control… A Vital ERP Tool for Many Manufacturers
Jun 13, 2017 Tracking Costs Using ERP