Capacit’e Infraprojects

Industry:

Construction
Capacit’e Infraprojects undertakes construction of residential, commercial and institutional buildings in Mumbai Metropolitan Region, National Capital Region, Bengaluru and other major cities in India.

Client:

Incorporated in 2012 as a construction contracting firm, Capacit’e Infraprojects offers the following services:

  • High-rise and super high-rise buildings
  • Gated communities
  • Villaments
  • Commercial and office complexes
  • Institutional buildings
  • Multi-level car parks

The company is certified in compliance with the following standards with respect to engineering, procurement and construction contracting:

  • ISO 9001 : 2008 – Quality Management System
  • ISO 14001 : 2004 – Environmental Management System
  • OHSAS 18001 : 2007 – Occupational Health and Safety Management System
Contrary to the manpower addition seen during other software implementation, we have actually reduced the head count in Purchase, Accounts and Stores post implementation. The advantage we find in BuildSmart is the construction industry specific plug and play features be it in terms of yard store mechanism for pro-rata write off of project site establishments or in terms of hire charge debits etc.
Narayan Neelakanteswaran, Executive Director
Capacit’e Infraprojects Limited

The Challenge:

Capacit’e Infraprojects grew at a rapid pace within two years of its incorporation; the construction firm won 25 projects across India and built an order book of Rs 4000 crore. The company needed to scale up its operation to successfully complete these projects and multiply its annual sales from Rs 250 crore in FY 2013-14 to over Rs 1000 crore in FY 2015-16. This challenge entailed a robust delivery mechanism to be built in a short span of time.

Why they engaged CCS

  • Capacit’e Infraprojects wanted to avoid the customisation of construction software to meet the specific needs of their clients. Therefore, the company decided to implement BuildSmart, one of the world’s most powerful construction ERP softwares developed by CCS. As such, the software itself is construction industry specific, meeting the functional requirements. Working with CCS meant that the company saved time, cost, and effort that otherwise would have gone into customisation.
  • Capacit’e Infraprojects was confident of the efficiency of BuildSmart and decided that there would be no additional manpower deployment. With its experience and expertise, CCS made a commitment that the implementation would result in the same number of hands managing more number of projects and project requirements.

What they asked us to do

The client engaged CCS to map the entire process flow for the procurement and consumption of goods and services in the following sequence:

  1. Create and update item master
  2. Create and update vendor master
  3. Raise purchase requisition/subcontract requisition
  4. Check budget provision and approve the requisition
  5. Finalise the terms of purchase of goods/engagement of services
  6. Finalise the vendor and rates
  7. Approve the purchase order/work order
  8. Book GRN/SRN against receipt of goods & services
  9. Book the vendor bills against GRN/SRN

The Solution:

Understanding the client’s specific requirements, CCS offered several solutions to save costs and optimise efficiency of the team:

  • CCS established a material store to hold the materials to be incorporated in the permanent works and consumable items.
  • A site establishment store was also incorporated in BuildSmart, to enable the site establishment expenses to be pooled in one place, so that pro-rata cost booking could be spread over the project duration.
  • The formwork assets were held in the yard store enabling monthly charges to be debited from the project.
  • BuildSmart also provided monthly charges of plant and machinery and other assets to be debited from the project.

The Results:

CCS successfully completed the whole process of building a robust delivery mechanism for Capacit’e Infraprojects in less than six months during FY 2014-15, covering 25 project sites and three corporate offices, which resulted in the following:

Improved efficiency

CCS completed the configuration of all stores and the charging mechanism. The activity codes, cost codes and ledger codes for categorising and booking the costs were established in a simple and easy to implement form, enabling quick roll out of the implementation phase. Moreover, the accounting module was designed in a way that was compliant with Indian law.

Effective management of resources

The enterprise accounting features combined with the project cost control features enabled Capacit’e Infraprojects to avoid repetitive work in terms of management information system requirements. The asset management features provided efficient and effective management of these resources, while the provision for budget entries enabled live tracking and control of the variances.

Smooth and simple implementation

Once the preceding year data was imported, the migration to BuildSmart was smooth and simple. The purchase cycle was implemented first, followed by the subcontracting cycle. The accounting module was implemented thereafter, enabling live on-line information and process control.

Reduction in manpower requirement

True to the commitment made to Capacit’e Infraprojects, CCS ensured a reduction in the manpower requirement to handle the procurement and accounting functions. The conceptualisation and implementation itself was handled by a small team of just five people, including one each from IT, accounts, purchase and stores.

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