{"id":29734,"date":"2026-08-10T08:01:00","date_gmt":"2026-08-10T08:01:00","guid":{"rendered":"https:\/\/twproject.com\/blog\/?p=29734"},"modified":"2026-08-05T15:02:24","modified_gmt":"2026-08-05T15:02:24","slug":"staying-within-budget-the-approach-taken-by-the-most-efficient-production-companies","status":"publish","type":"post","link":"https:\/\/twproject.com\/blog\/staying-within-budget-the-approach-taken-by-the-most-efficient-production-companies\/","title":{"rendered":"Staying within budget: the approach taken by the most efficient production companies"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><br><br>Ask any <strong>production manager<\/strong> at a <strong><a href=\"https:\/\/twproject.com\/teams\/production-project-management\/\">manufacturing company<\/a><\/strong> what one of the most frustrating problems is when managing projects, and the answer will almost always be the same: the <strong>actual costs<\/strong> only show up too late. It is only when the project has already been completed \u2014 or worse, when the client has already received the invoice \u2014 that it becomes clear a particular phase has taken twice as many hours as planned.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The problem isn\u2019t a lack of data. It\u2019s that <strong>cost data and project data<\/strong> are stored in different places: the <strong>accounting system<\/strong> on one side, the<strong> <a href=\"https:\/\/twproject.com\/blog\/schedule-importance-project-manager\/\" target=\"_blank\" rel=\"noreferrer noopener\">time schedule<\/a> <\/strong>on the other, and <strong><a href=\"https:\/\/twproject.com\/blog\/how-to-use-timesheets-to-optimize-projects\/\" target=\"_blank\" rel=\"noreferrer noopener\">timesheets<\/a> <\/strong>somewhere else. Gathering them and bringing them together takes time, and by the time you have the full picture, it\u2019s already too late to take action.<\/p>\n\n\n\n<div class=\"table-of-content\">\n<h5>CONTENT<\/h5>\n<ul>\n<li><a href=\"#vederli\">Direct costs, indirect costs, hours worked: can you see them all at a glance?<\/a><\/li>\n<li><a href=\"#sistema\">How Twproject integrates costs and progress into a single system<\/a><\/li>\n<li><a href=\"#commesse\">How Twproject provides practical support for budget-based projects<\/a><\/li>\n<li><a href=\"#oberalp\">Innovation, research and external reporting: the Oberalp case study<\/a><\/li>\n<li><a href=\"#demo\">Do you want to know the true cost of projects, in real time?<\/a><\/li>\n<\/ul>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Hai capito di chi stiamo parlando?In this article, we want to offer you a practical solution for consolidating all your <strong>project cost management within a single system<\/strong> \u2013 the only one truly capable of managing the complexity of project costs and transforming it into a <strong>clear, manageable overview at multiple levels<\/strong>. Do you know who we\u2019re talking about?<\/p>\n\n\n\n<p><a name=\"vederli\"><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Direct costs, indirect costs, hours worked: can you see them all at a glance?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For a <strong><a href=\"https:\/\/twproject.com\/blog\/how-to-manage-complex-projects-in-production-companies\/\" target=\"_blank\" rel=\"noreferrer noopener\">complex business such as those in the production sector<\/a><\/strong> often are, a comprehensive project budget does not consist solely of purchased materials and services. It includes the<strong> hours worked <\/strong>by the development team, those spent on production, <strong>ancillary expenses<\/strong> and the <strong>costs of external stages<\/strong>. Keeping track of all this on separate spreadsheets \u2014 and then reconciling them at the end of the month \u2014 is a slow, error-prone process that is inherently behind the <strong><a href=\"https:\/\/twproject.com\/blog\/project-progress-calculation\/\" target=\"_blank\" rel=\"noreferrer noopener\">actual progress of the project<\/a><\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The right question is not \u2018<em>how much have we spent?<\/em>\u2019 but \u2018<em>how much are we spending now, compared with what we had budgeted for this phase?<\/em>\u2019. Only with <strong><a href=\"https:\/\/twproject.com\/blog\/how-to-prepare-a-project-report\/\" target=\"_blank\" rel=\"noreferrer noopener\">project reporting<\/a><\/strong> based on real-time data is it possible to take action whilst the project is still ongoing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Traditional accounting software for production companies \u2013 or, worse still, homemade systems \u2013 are not suited to the comprehensive management of all processes relating to project costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To avoid the tedious process of transferring data from one system to another and the resulting incomplete data, you can rely on <a href=\"https:\/\/twproject.com\/teams\/production-project-management\/\"><strong>professional software such as Twproject<\/strong><\/a>, which is designed specifically for manufacturing companies and has an in-depth understanding of all their challenges, critical issues and potential for development.<\/p>\n\n\n\n<p><a name=\"sistema\"><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Twproject integrates costs and progress into a single system<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Going into more detail: in <strong>Twproject<\/strong>, cost management is not a separate module that you consult at the end of the month; it is <strong>integrated directly into the project<\/strong>, phase by phase.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A <strong>budget <\/strong>can be allocated to <strong>each phase<\/strong>, which is continuously compared with the <strong><a href=\"https:\/\/twproject.com\/blog\/how-to-monitor-actual-costs-compared-to-planned-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">estimated costs and the costs actually incurred<\/a><\/strong> \u2014 updated as staff record the hours worked on each activity.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1212\" height=\"770\" src=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2023\/12\/inserimento_costi.gif\" alt=\"costi pianificati\" class=\"wp-image-21885\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The system automatically calculates staffing costs based on the configured <strong>hourly rates<\/strong>, and allocates them to the <strong>direct costs<\/strong> recorded for each pahse.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"62\" height=\"162\" src=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/04\/alerts.png\" alt=\"\" class=\"wp-image-29148\" style=\"width:64px;height:auto\"\/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">A comparison between <strong>the budget, the estimate and the final figures<\/strong> is always visible, without the need for manual data extraction or processing. When a phase exceeds its allocated budget, <strong>Twproject <\/strong>sends an <strong>alert<\/strong>: not a generic notification, but a specific alert indicating which phase is affected, the extent of the variance and the impact on the overall progress of the project.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is closely linked to the <strong>project structure<\/strong> <strong>[<\/strong>: a <strong>well-defined WBS <\/strong>is essential for truly accurate financial control. If the stages are unclear, costs cannot be allocated accurately.<\/p>\n\n\n\n<p><a name=\"commesse\"><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Twproject provides practical support for budget-constrained projects<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The centralised management offered by <strong>Twproject <\/strong>translates, in the day-to-day operations of a production company, into precise tools that step in exactly where cost control tends to get out of hand. The software is, in fact, designed to make an inherently complex task such as <strong>cost control<\/strong> manageable, and it does so by solving very practical problems:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Hours recorded manually, costs identified too late<\/strong> \u2192 Twproject offers integrated <strong><a href=\"https:\/\/twproject.com\/blog\/how-to-manage-project-tracking-with-twprojects-timeline\/\" target=\"_blank\" rel=\"noreferrer noopener\">time tracking<\/a><\/strong> that automatically links hours worked to hourly rates, in real time.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"840\" height=\"140\" src=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2024\/05\/timesheet-840x140-1.png\" alt=\"registrare ore di lavoro\" class=\"wp-image-23088\" srcset=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2024\/05\/timesheet-840x140-1.png 840w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2024\/05\/timesheet-840x140-1-400x67.png 400w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2024\/05\/timesheet-840x140-1-705x118.png 705w\" sizes=\"auto, (max-width: 709px) 85vw, (max-width: 909px) 67vw, (max-width: 1362px) 62vw, 840px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Expenses and suppliers scattered across different files<\/strong> \u2192 Twproject centralises the <strong><a href=\"https:\/\/twproject.com\/blog\/how-to-keep-project-expenses-in-check\/\" target=\"_blank\" rel=\"noreferrer noopener\">recording of expenses<\/a><\/strong>, materials and suppliers directly within the project, in one place.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"584\" height=\"346\" src=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/03\/additional-cost.png\" alt=\"\" class=\"wp-image-29074\" srcset=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/03\/additional-cost.png 584w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/03\/additional-cost-400x237.png 400w\" sizes=\"auto, (max-width: 584px) 85vw, 584px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Variances only identified at the end of the project<\/strong> \u2192 Twproject displays a cost <strong><a href=\"https:\/\/twproject.com\/blog\/?p=29766\" target=\"_blank\" rel=\"noreferrer noopener\">dashboard<\/a><\/strong> updated in real time, with variances highlighted as soon as they arise.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"840\" height=\"134\" src=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/monitoraggio_costi-840x134.jpg\" alt=\"\" class=\"wp-image-29597\" srcset=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/monitoraggio_costi-840x134.jpg 840w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/monitoraggio_costi-400x64.jpg 400w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/monitoraggio_costi-1536x245.jpg 1536w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/monitoraggio_costi-705x112.jpg 705w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/monitoraggio_costi.jpg 1656w\" sizes=\"auto, (max-width: 709px) 85vw, (max-width: 909px) 67vw, (max-width: 1362px) 62vw, 840px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Planned and actual figures need to be cross-checked manually, risking errors<\/strong> \u2192 Twproject brings baselines, planned and actual costs together in a single view, eliminating the need for manual comparisons.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"721\" height=\"158\" src=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/PlannedCosts.jpg\" alt=\"\" class=\"wp-image-29601\" srcset=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/PlannedCosts.jpg 721w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/PlannedCosts-400x88.jpg 400w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/PlannedCosts-705x154.jpg 705w\" sizes=\"auto, (max-width: 709px) 85vw, (max-width: 909px) 67vw, (max-width: 984px) 61vw, (max-width: 1362px) 45vw, 600px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Project performance assessed intuitively<\/strong> \u2192 Twproject calculates financial forecasts based on the project\u2019s actual trend, anticipating problems before they become critical.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1088\" height=\"663\" src=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2023\/05\/cashflow.png\" alt=\"\" class=\"wp-image-19848\" srcset=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2023\/05\/cashflow.png 1088w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2023\/05\/cashflow-400x244.png 400w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2023\/05\/cashflow-840x512.png 840w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2023\/05\/cashflow-705x430.png 705w\" sizes=\"auto, (max-width: 709px) 85vw, (max-width: 909px) 67vw, (max-width: 1362px) 62vw, 840px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Customised financial reports for each client<\/strong> \u2192 Twproject generates comprehensive financial reports that can be exported and are ready to be shared with stakeholders.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"840\" height=\"480\" src=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/report-costi-di-progetto-840x480.jpg\" alt=\"\" class=\"wp-image-29599\" srcset=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/report-costi-di-progetto-840x480.jpg 840w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/report-costi-di-progetto-400x228.jpg 400w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/report-costi-di-progetto-705x403.jpg 705w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2026\/05\/report-costi-di-progetto.jpg 1460w\" sizes=\"auto, (max-width: 709px) 85vw, (max-width: 909px) 67vw, (max-width: 1362px) 62vw, 840px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In short, each feature is designed to address a typical weakness in the management of budgeted projects:<strong> delays in information<\/strong>, <strong>scattered data<\/strong>, and the <strong>difficulty of comparing<\/strong> planned figures with actual results.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Twproject enables project managers and executives to move from reactive, retrospective monitoring to <strong>proactive monitoring, capable of identifying deviations <\/strong>as they occur, rather than when it is already too late to take action.<\/p>\n\n\n\n<p><a name=oberalp\"><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Innovation, research and external reporting: the Oberalp case study<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s look at a real-life example: the <strong>Oberalp Group<\/strong>. This clothing manufacturer, with over 850 employees and 12 global offices, manages long-term technical development projects, creative work using agile methodologies, and research initiatives co-funded by external bodies such as the <strong>European Union<\/strong>, all in parallel. For the latter, <strong>reporting hours and costs<\/strong> is a formal requirement, not a choice.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before <strong>Twproject<\/strong>, Oberalp used seven different tools, none of which were integrated with the others. <strong>Cost control was fragmented<\/strong>, and gathering financial data for funding reports required a disproportionate amount of effort.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With <strong>Twproject<\/strong>, time tracking has become straightforward even for those who are not used to recording their hours, and financial data is always available in the right format for reporting. The result: seven tools reduced to one, with a level of financial transparency that was previously unattainable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As the IT Business Excellence manager says:<\/p>\n\n\n\n<p><!-- START QUOTE BOX --> <\/p> <div class=\"quote-box\"> <div class=\"quote-content\"><p>In addition to the value offered by Twproject, another benefit is the reduction in maintenance costs resulting from the consolidation into a single solution.<\/p><\/div> <div class=\"quote-link\">Read <a href=\"https:\/\/twproject.com\/customers\/oberalp\/\" target=\"_blank\" rel=\"noopener\">full interview<\/a><a class=\"quote-arrow\" href=\"https:\/\/twproject.com\/customers\/oberalp\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2023\/06\/quote-arrow.png\"><\/a><\/div> <\/div>\n\n\n\n<p><a name=\"alpego\"><\/a><\/p>\n\n\n\n<p><a name=\"demo\"><\/a><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"How to Track Project Costs &amp; Budget | Cost Management Tutorial\" width=\"840\" height=\"473\" src=\"https:\/\/www.youtube.com\/embed\/6lqcRZ22xBA?start=52&amp;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><br>Do you want to know the true cost of projects, in real time?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">To sum up: if it takes more than thirty seconds to answer the question \u2018<strong>What is the current status of the budget for this phase?<\/strong>\u2019, there is a problem with the tools \u2014 not with the skills.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our expert production tutors will set up <strong>Twproject <\/strong>for you based on the actual structure of your projects: <strong>budgets by phase, staff rates, cost-overrun alerts and reports ready for management or your clients<\/strong>. In a single session, you\u2019ll see how it works for your specific situation, not just a generic example.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udc49 <strong><a href=\"https:\/\/twproject.com\/it\/richiedi-una-demo\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><strong>Find out how much you could save: book a free personalised demo<\/strong><\/strong><\/a><\/strong><\/p>\n\n\n\n<div id=\"blog-promo-box\">\n<div class=\"flex_column_table dark pattern-2\">\n<div class=\"flex_column text_column\">\n<div>\n<h3>Cost and project management on a single platform<\/h3>\n<div class=\"avia-button-wrap avia-button-left\"><a class=\"avia-button avia-icon_select-no avia-color-custom avia-size-xlarge\" href=\"https:\/\/demo.twproject.com\/applications\/teamwork\/welcome\/createUserEnvironment.jsp\" target=\"blank\" rel=\"noopener\"><span class=\"avia_iconbox_title\">You can get it with Twproject<br>\n<\/span><\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"flex_column photo_column\" style=\")\"><\/div>\n<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ask any production manager at a manufacturing company what one of the most frustrating problems is when managing projects, and the answer will almost always be the same: the actual costs only show up too late. It is only when the project has already been completed \u2014 or worse, when the client has already received &hellip; <a href=\"https:\/\/twproject.com\/blog\/staying-within-budget-the-approach-taken-by-the-most-efficient-production-companies\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Staying within budget: the approach taken by the most efficient production companies&#8221;<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":29857,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_custom_body_class":"","_custom_post_class":"","footnotes":""},"categories":[81,362],"tags":[],"class_list":["post-29734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cost-management","category-production"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Staying within budget: the approach taken by the most efficient production companies - 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