Can your homegrown resource management solution provide the insights you require?

AVEVA ERM Materials allows you to quickly see that you’ve purchased enough material needed for your CAPEX project without having to scour through multiple systems.

Posted: December 20, 2019

Engineer, Procure, Construct

Can your homegrown resource management solution provide the insights you require?

“Have I purchased enough of the right kind of materials to build this plant?” Can you honestly answer this? Furthermore, can you trust the endless Excel files or homegrown materials management systems you depend on to answer this for you?

 With AVEVA Enterprise Resource Management (AVEVA ERM), you can quickly and accurately see that you’ve purchased enough material needed for even your most complex capital projects to mitigate material usage and risk.

 We are all aware of the inherent risk of capital-intensive projects. Material wastage is one of the main factors of driving Total Installed Cost (TIC) over approved budgets, directly effecting your bottom-line and cash flow, and putting the project at risk. Clear insight into the balance of material requisitioning to needs is essential to lower material costs for any project.

 AVEVA ERM’s Material Status List provides direct and intuitive insight into this. Every time a Piping MTO is imported from your design tool of choice, ERM cross-checks the commodities with approved specifications. We do this because a penny earned at import is a dollar saved in construction. After this automatic checking to spec, a material balance is auto-calculated. Because ERM has a shared materials database, you don’t need to ask Procurement when material is due to arrive or reach out to Expediting to find out when you can expect the material onsite.

ermFigure 1: AVEVA ERM’s Material Status List Requisition View

The Material Status List Requisition View is intuitive: Green means your MTO balance equals rour requisitioning amounts; yellow means you’ve over-requisitioned, and red means you have a material shortage. In the example above, I haven’t ordered my tagged items and requisitioned five too many gaskets. In every other line, I’m able to see that I’m on track to meet material needs.

 Most importantly, as new MTO’s are imported – or material is sent to a requisition, purchased, expedited, or received on site – the material balance auto-calculates to adjust up-to-date amounts. This means there’s no need to wait for disparate teams to provide status updates. With a solution like AVEVA ERM, you can tighten working surplus and contingencies and can guarantee the right material is in the hands of crews when they are ready to work.


Learn more about AVEVA ERM


Written By
Paul Hardman

Paul is currently a Technical Sales Consultant at AVEVA, providing technical demonstrations of our materials management, contract risk management, and steel fabrication management solutions. A structural steel fabricator by trade, he has held various roles in welding, procurement, project management, and software implementation and sales in the structural and EPC sectors. A passionate supporter of AVEVA products, he is a strong believer in leveraging technology to simplify workflows and gain transparency in material usage and capital leak. Paul has a BA in Applied and Theoretical Linguistics from Indiana University.

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