Monday, 24 January 2022

Managing Project for system development

The theme of this time is "what is project management that is useful for management accounting of system development companies".


it seems to be somehow difficult. is there any connection between "management accounting of system development companies" and "project management"?

if so, can you clearly imagine its relevance? the purpose of this article is to tell you that, but it's a little flinching.


because there are experts in the road in "management accounting", there are experts in the road in "project management", and i feel that there seems to be a strict tsukkomi from both when writing poor things. please be soft.

so what do we start with?

it may be a good place to understand "what is management accounting" that seems to be less familiar.

what is controlling?

when explaining "what is management accounting", "financial accounting" always appears.
it is easy to understand to explain these two side by side in contrast, so it has become a common practice.


what is financial accounting?


・ accounting "externally" such as shareholders and financial institutions with interests ・ based on laws such as the financial instruments and exchange act and the companies act, and accounting standards ・ financial statements at the time of settlement such as balance sheets, profit and loss statements, cash flow statements , "obligations stipulated by law", so all companies must implement


what is management accounting?


accounting "for internal use" to utilize in the company's management activities ・ the contents vary greatly from company to company, and there are no legal requirements or accounting standards ・ business plans, medium-term management plan materials, board of directors materials, etc. ・ some companies do not implement management accounting because it is "voluntary"

 

with the above basics in mind, the table looks like this:




system development company management accounting "managed accounting" has different contents for each company, but from a broad perspective, you can think of it as "as long as you are a commercial company, everything is similar".

In short, if you go into the way, you will not remove the subject matter of "what and how much money you spend", "when and how much sales", "how profitable there is as a result", and I think that the method and expression of decomposing it, changing the viewpoint, and narrowing the target are just different.

By the way, if you say the first thing called "what and how much money you spend", it becomes the word "cost control".


This "cost control" has characteristics and differences depending on the industry, so it is necessary to keep that in mind.


For example, in the "manufacturing industry" and "system development company", the components of cost and the points to be paid to are not the same. For details,  refer to the past blog post "What is cost control of IT projects?


The cost components of each are summarized as follows:

  • General types of "cost" "fixed costs", "variable costs", "material expenses", "labor expenses", "other expenses"
  • Types of "cost" of system development companies ・ "labor expenses", "outsourcing expenses" and "other expenses" as direct expenses ・ "indirect labor costs" and "common expenses" as overhead expenses


what is required of management accounting?


so what is what is required of management accounting?

if you explore that area, you may finally be able to see the relationship with "project management". common abstract explanations include: to be able to grasp and
analyze the current situation of the company's management, and to make management decisions and make decisions based on it, and to be useful for management to implement measures related to products and human resources.



how is this. in this abstract explanation, i can't see anything specific or related to project management yet. what is it?


the hint can be found in the table at the end of "1. what is management accounting".

as some of you may have noticed, some keywords are written in red.

 "budget" "expected" of the reported figures, and the word "project"

came out of the aggregate unit "by project". it's like saying an answer, not a hint.

first of all, what do these means about "budget" and "forecast" of the reported
figures?

it is "future oriented" of "what do you intend to do in the future?" and "what is likely to become it in the future?".


"what is required for management accounting" must present not only the results of "performance", but also "goals" and "prospects" in the future.

next, what about "by project" for aggregation units?

what this means is that it can be broken down into "units where things move = by project", analyzes them, and can do it accurately in that unit.
the other thing required for management accounting is that there must be a "breakdown" or "perspective" of the units that you want to analyze and the units you want to do.

1】 conversely, "project" is convenient when it is a "unit where things move", and if things are moving in a certain set, it should be a "project".

【assorted 2】 experts may refer to "breakdown" and "cut", such as "drill down" or "slice".

what is a good "project management" tool?


In the previous chapter, we learned that "what is required for management accounting" is "presenting future goals and prospects" and "breakdown and perspective of the units that you want to analyze and the units you want to do.".

So what is a "good project management tool" with them?

"Good" here is excellent from the viewpoint of "it can be used for management accounting" and "not only on the site but also on the management accounting side is happy".

In fact, pm is a great project management tool in this regard, and pm is also why it is called "ERP of project management".

Of course, you can also use PM as a mere "useful tool in the field", but if you do not use up the function of PM with an eye on "management accounting" of "system development company", I think it is a waste.

Specifically, PM provides the following features:


  • Journal data linkage to accounting system journal data for accruing project costs as "work in process" or "finished cost" can be output according to the import format of the accounting system that works together.
  • general-purpose master setting of the cut you want to analyze in addition to standard items such as "project code", "customer", and "department", you can freely add items of project attributes.
  • alert if the target execution budget is divergged from the current forecast
  • in addition to managing "actual results", you can monitor the target "execution budget" and the current "expected cost (current performance + future plan)" and detect deviation alerts from the target.
  • flexibly output and process pre-production data of man-hours and costs
  • the pre-production data of "man-hours" and "cost itself" greatly related to cost control of the system development company can be output as processing source data by patterning arbitrary item composition and specification of extraction conditions.
  • Analysis reports prepared from various perspectives and perspectives



(1) "Expected Orders/Results" Report

Based on the estimates of each project, this report "grasps the order performance / forecast for each aggregation department and PJ type for aggregation and analyzes the future outlook".

(2) "Department profit /loss


forecast/actual" report It aggregates the monthly accrual amount (planned amount in the future month and actual amount in the past month) and is a report that "grasps sales and profit performance / forecast by PJ type for aggregation".


(3) "Project Profit Forecast


Transition" report "How much is the return rate in the initial estimate by aggregation department and aggregation PJ type, what is the actual / expected return rate, and how much is the deviation between those

figures?"

(4) "Problem Project Occurrence


Status" Report This is a report that acquires the "initial estimate", "final inspection actual / expected year/month", and "final inspection actual / expected amount" of each project and displays the status of the problem occurrence
project.

(5) "Occupancy Rate


Transition" report "How many man-hours per year and account are several days, and how many days are the man-hours to be operated, and how much utilization rate is required from there?" is a report that summarizes by department and
account.

(6) "Productivity Transition" report It is a report


that summarizes the processes, tasks, and details in charge of each main person on an account basis on an account basis on "when they are completed, how many scheduled man-hours are completed, how many days of actual man-hours are completed, and how much productivity is required from there?".

 

this concludes "what is project management that is useful for management accounting for system development companies?".
how was it?

i would appreciate it if you could imagine specifically the relationship between "management accounting of system development companies" and "project management" that i wanted to tell you.

 


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