Process Group to scale capacity by 100 percent in 12 months

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Melbourne-based Process Group will implement IFS Applications, the project-based ERP suite, to enable it to scale its capacity by 100% in the next 12 months and improve scope and quality of service offering to its customers.

Process Group is a global provider of technical solutions for the oil and gas production, refining, petrochemical and carbon capture industries, 

Process Group is IFS' fifth Australian customer in the past year in the area of engineering, procurement and construction (EPC) services to resources.  The company will implement the newly released IFS Applications 8. 

According to David Johnston, the company's General Manager, "IFS Applications 8 will be the enabling vehicle for Process Group to successfully grow its business and better service its customers. Our target for next year is to approximately double turnover with larger jobs and broader scope of work," he said.

Before it could break through $50 million in annual revenue, Process Group needed an integrated software system providing much higher visibility of project information across the business to mitigate risks, maintain or improve quality, and increase its operational efficiency.

IFS Applications will give Process Group accurate and immediate visibility of operations for improved project management and business efficiency.  Expected benefits include reduced project initiation time, better quality management, improved scheduling efficiency, a higher win-loss ratio on new business, and time savings in the creation of reports.

"A realistic estimate of business benefits would see the cost of the new ERP solution paid back within 12 months, with a more conservative business case estimating the payback period at two to three years," Johnston said.

IFS Applications will provide enhanced project management capabilities – replacing mainly spreadsheet-based systems – and replace Process Group's current Financials software. It will automate many project and financial reports currently created manually, saving staff time and eliminating reporting delays.

Other ERP functionality to be progressively rolled out across the organisation includes Human Resources, Engineering Management, Document Management, Manufacturing, Supply Chain and Sales & Service. Process Group also intends to deploy IFS Applications' business intelligence capabilities.

A higher win-loss ratio on bids is expected from the ability to more accurately analyse costs, including the efficiency of its current projects. "Our estimates will become more accurate and that will give us the confidence to put in more competitive bids," said Phil Tuckett, Sales & Marketing Director for Process Group.

The new system will also improve the company's ability to provide accurate reporting to its clients, particularly those that place a high value on quality and service and which are strategic to the company's growth plan.

"As we take on larger and more complex projects, our clients have more demand for information and transparency," said Tuckett. "Everyone is trying to manage risk and putting in new systems and that places an obligation on us to provide visibility to our clients into their projects."

The company also expects the new ERP solution to accelerate the growth of its after-market sales and services business. With immediate access to information about technical solutions, such as packaged process systems and process trains it has designed and assembled, Process Group can lower its costs and better assist its clients with preventative and corrective maintenance.

"The resources and oil & gas industries continue to create opportunities for fast growing services companies like Process Group, offering high levels of innovation and quality," said Rob Stummer, Managing Director at IFS Australia and New Zealand.