Consolidation of Financial Information across Projects

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Finally, with an integrated development chain management system, project-level financial information is consolidated across all projects to provide R&D executives and financial managers with the necessary view of product development to make the decisions needed. They are now able, for the first time, to see consolidated revenue forecasts across all projects, as well as the consolidation of capital requirements for new products, and consolidated profit expectations from new products.

This consolidation is illustrated in Figure 13-2. Revenue projections for a new product are automatically combined with and consolidated with revenue projections from other new products to provide a complete picture of projected revenue from all products. Similarly, capital budgets can be consolidated across all projects to provide a unified view of capital requirements, and expense budgets can be consolidated to provide a unified view of expense budgets. Information such as manufacturing volumes, planned direct labor hours, etc., can be consolidated across all projects to provide a complete picture of expected manufacturing requirements from new products.

Figure 13-2: Financial Information Consolidated Across All Projects

In general, this consolidation is very difficult when done from individual spreadsheets, because they reside on individual desktop computers. Consolidation requires the periodic collection of all spreadsheets (which can be very time-consuming), adjustment of inconsistencies prior to consolidation, and then programming to create the totals across all projects. This is a lot of work that needs to be done each time a consolidation is needed, and given the dynamic nature of product development, the consolidation is usually out of date before it is even completed. With the integrated financial planning capability of a development chain management system, this consolidation is fully automatic and always up to date.

Team LiB

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Project Management Made Easy

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