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Hengzhou Construction

MingERP assists Hengzhou Construction to open a new pattern of digital transformation!

Company Profile

Hunan Hengzhou Construction Co., Ltd. was founded in 1966 and was promoted to a national first-class enterprise for construction general contracting of housing and building engineering in 2006. The company currently holds six first-class qualifications, including national construction general contracting, municipal public works construction general contracting, foundation engineering specialty contracting, architectural decoration engineering specialty contracting, architectural curtain wall engineering specialty contracting, and steel structure engineering specialty contracting, with a wide coverage of qualifications.

The company’s business scope includes housing construction engineering, municipal engineering, decoration engineering, installation engineering such as water and electricity, heating, ventilation, air conditioning, fire protection, foundation and basic engineering, steel structure engineering, architectural curtain wall engineering, water conservancy engineering, highway engineering, etc. The company focuses on construction as its main business, and carries out industrial strategic layout with real estate development, labor, property, agricultural development, investment and financing as auxiliary businesses, aiming to build a comprehensive enterprise group.

Project Background

In the process of development, enterprises face increasingly fierce market competition, especially pressure from industry upgrades and innovation. Only by continuously improving technology and adjusting internal management models can they adapt to highly uncertain market demands. Currently, in the environment of high-speed development of the digital economy, using digital technology for management improvement and industrial upgrading has become the preferred model for enterprises.

Hengzhou Construction is also facing challenges during its rapid business development: traditional paper-based office methods are outdated and inefficient, communication is slow, and there are problems with financial management chaos and complex project cost accounting systems, which seriously affect the company’s development.

Application Scenarios

01 Daily Management

The traditional paper-based office model not only has low efficiency but also has poor timeliness and lack of correlation for basic data. When finance uses an Excel table to record project funds in and out, there are often problems such as untimely data summarization, inaccuracy, and lack of correlation. When leaders approve project-related expenses, they often find a lack of data basis. There is an island between the approval layer and the financial settlement layer, and data gaps on both sides can easily cause financial imbalances and fund chain breaks.

Solution

Hengzhou Construction has achieved online approval in 1 minute per case through the Mingjianyun 【MingERP】 system, greatly improving efficiency compared to the traditional paper-based office model. According to statistics, the leadership completed more than 10,000 approvals last year, which not only did not affect frequent business trips but also greatly improved communication efficiency. The efficiency of budget management, contract management, fund payment, and invoice input deduction has increased by more than 35 times.

At the same time, the 【MingERP】 system has solidified the company’s internal business processes through budget + four-stream integration data, fully armed the financial management team, unified work standards, completely bid farewell to the chaotic situation of the past business and finance, and greatly reduced the company’s operating risks. Currently, more than 200 projects added to the system have not caused any losses to the company.

02 Project Expense Control Management:

Construction enterprises and project departments often use independent accounting, and the allocation and calculation of various expenses between projects and the company involve a large amount of work and difficult verification, which can easily lead to omissions and errors. In daily management, traditional paper-based methods often have problems such as failure to strictly define expense limits during the pre-construction phase, frequent changes in expenses during project implementation, loss of control, and unclear cost control responsibility during settlement, which can easily lead to disputes and lawsuits.

Solution:

After adopting the 【MingERP】digital management mode, the system automatically generates a list of expense settlements, making the account clear at a glance. Currently, Hengzhou Construction has achieved online approval of contract signing, daily settlement payments, and other projects. During the approval process, data related to the approval will also be automatically displayed, and layered data drilling can be performed. After the full-process data management of project management is completed, a comprehensive 360-degree evidence chain is automatically formed, which avoids project risks, reduces the probability of lawsuits, and improves the enterprise’s management capability.

03 Cost Control Management

In traditional project management, the paper-based management mode used to create data gaps between headquarters and project departments. In terms of quantity and price, it was difficult for the headquarters to grasp the actual situation. There were also cases of collusion between project management personnel and suppliers. Therefore, in the contract performance payment process, finance, cost control and other related departments often need to spend a lot of time and effort to identify, otherwise it is easy to cause overpayment and fund losses for the company. However, given the situation of outdated tools, low efficiency, and high labor and time costs, the effect is often not very ideal.

The solution is the use of Mingjianyun’s 【MingERP】 system, which has excellent cost management warning and control functions. Project personnel import cost budget data into the system, and after setting up cost warning models based on project progress and cost, the system automatically compares and analyzes every consumption data of human, material and machine in the project running process, forming dynamic monitoring. When the data of a cost item is about to exceed the warning value, the system will automatically remind relevant personnel and leaders to handle it.

This big data control perspective enables company leaders to understand the company’s cost expenditure situation in real time, fully control cost expenditures, pay attention to abnormal project expenditures, and prevent fake output values. Moreover, it can also use comprehensive data intelligence integration and analysis methods to collect complete business data during the project execution process, which not only saves the company related costs but also greatly reduces legal litigation risks.

Currently, Hengzhou Construction has achieved full digitalization of all projects, including engineering project amount, budget reports, contracts, engineering payment, accounts receivable, engineering progress, tax invoices and deductions, settlement unit price, key position certificates, more than 4,000 suppliers, etc. The data accumulation has laid a solid foundation for subsequent company-wide data management.

Customer Feedback

Vice President of Hengzhou Construction: The integration of MingjianCloud’s 【MingERP】 system with DingTalk has enabled all project approvals to be completed through online mobile approval. Whether I am on a business trip or in a meeting, company operations are not affected. Hengzhou Construction has leveraged the 【MingERP】 system to undergo digital transformation and achieved online project management, real-time data and standardized management, truly realizing data-driven management, big data-supported decision-making, and digital management empowerment. This has led to cost reductions, increased revenue, and has supported the long-term development of the enterprise.