By Carrie Ghal
Manufacturers and industrial companies involved with complex or capital equipment are by nature project-oriented. For all project manufacturers, they must maintain profitability, which is a challenge, but is sometimes even more difficult:
- When you spend more than anticipated on labor or materials in certain phases of the project and do not realize it until much later
- If you are in defense manufacturing or a part of government supply chains where there may be cost reimbursement and cost-plus contracts
- If you’re a manufacturer in the automotive industry or commercial aviation space that may need to dovetail your engineer-to-order and manufacturing activities with a customer’s new product development cycle
To learn more about estimate to completion (ETC) and estimate at completion (EAC), download the white paper.