Work in progress (WIP)

There are few things more effective for improving bottom-line performance than having a rigorous Work-In-Progress (WIP) review processes built into the culture. 

This four hour hands-on workshop is designed for all members of the project team including the Project Manager, Estimator, Accountant and Owners. 

It is best if attended by a whole cross-section of the company so that everyone can gain a common understanding of the goal (PROFIT) and the many problems encountered along the way. 

The primary focus of the workshop is to help everyone understand the basics of the WIP schedule; what information it is based upon and how it affects decisions by people inside and outside the company.  Topics covered include: 

• WIP Schedule Overview

• Understanding Earned Revenue Vs. Billings

• Billing Performance – Over / Under Billings

• Backlog – What It Is / Why It Is Important

• Factors Affecting Backlog Requirements

• P&L Statement and the WIP Overview

• The Balance Sheet and the WIP Overview

• When Over Billings Are Bad

• Cash Flow Basics

• Projections – Accuracy Is Key

• 3 Critical Questions Every PM Should Know

• 4 Pillars Of Information Every PM Should Have

• Projections For T&M, GMP and Unit Projects

• Communication – The Missing Ingredient

• Projections & WIP Calculations – Group Exercise: These exercises take the class through a series of projections from the beginning of a project through completion and introduce a variety of common changes along the way, such as change orders, buyout savings, expediting costs and problematic close-out.  The class has to work through the math of these impacts and then do the WIP calculations

• Understanding Margin Gain / Fade: This is a critical topic of discussion throughout the workshop and it is demonstrated at the conclusion of the group exercises along with some tips on how to level out project performance and forecasting.

Session By:  BRIAN M. ANDREW is a Senior Consultant with D. Brown Management and leader of the company’s Financial Solutions Group. Brian has over 20 years of accounting experience including seven years as the CFO of an electrical contractor and significant experience consulting with hundreds of contractors across the United States. Brian takes a hands-on approach working with clients to integrate their accounting more tightly with operations and improve their overall information systems. Brian holds a Bachelor of Business Administration in Management Information Systems and Accounting from the University of Georgia and is an active member of various industry associations including CFMA.

Brian can be contacted directly at (916) 912-4205 or via e-mail at  Brian@DBrownManagement.com