Saudi construction firm to deploy ERP

A leading Saudi Arabian construction firm is deploying an enterprise resource planning (ERP) system from Oracle. The system will help the firm more efficiently plan its projects, including a number of deals it is working on with Aramco.

  • E-Mail
By  Diana Millne Published  December 18, 2005

A leading Saudi Arabian construction firm is deploying an enterprise resource planni- ng (ERP) system from Oracle. The system will help the firm more efficiently plan its projects, including a number of deals it is working on with Aramco. Faysal M Qahtani Sons (FMQ), which is currently working on 11 projects for the oil giant, has signed a deal with solutions provider Al Falak to implement JD Edwards EnterpriseOne ERP solution which is part of Oracle’s ERP portfolio. The implementation, work on which starts in January 2006, will take ten months. Once completed it will enable FMQ to better plan for major projects and to order materials for remote construction sites where it is working on pipe- coating projects for Aramco. “FMQ is a very big bidder for Aramco projects — particularly in the area of pipeline construction,” said Atif Khan, software marketing manager at Al Falak. “They have worked on major pipeline projects as well as electrical works, civil works and municipal buildings. They need some efficient software in to help them to bid accurately,” he went on to say. “Once construction is taking place — particularly in remote areas — when it comes to equipment requests and purchasing equipment they need to know what is available in the warehouses,” he added. “Now they can find this out automatically on the ERP system. Whereas before they did this by phone which caused a time delay,” Khan stated. The first phase of the project will take four months and will involve implementing the financial, HR and payroll modules of the ERP solution. In the second phase, which will take two months, the project management suite will be implemented and in the third phase the equipment and maintenance modules will be added. FMQ has had ERP software in place but this only covered the company’s financial activities and did not provide it with an efficient way to track, monitor and forecast the cost, labour and resource requirements of a project; both during the bidding process and during the construction process itself. “One important area for FMQ is to integrate all the business functions and departments into one solution,” said Khan. “The other one is to track and maintain project costs. Currently this is done manually. And they are not always able to extract historic data if they are bidding for a new project. Now they will be able to find this automatically on the system,” he went on to add. Dr Jassim Al-Rumaihi, manager of the department of finance, administration and services at FMQ said: “Once this solution has been implemented we are expecting that our business processes will be upgraded to the best practices.” “People are extremely resistant to change — this is normal. So we are setting up a committee just to look at how to manage the change,” he added.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code