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How to model fix rate work in Project 2010 RRS feed

  • Question

  • I have resources that earn a fixed monthly salary; therefore they earn their salaries even if they are just working in several project tasks. When they are included in the project model, their salaries will be prorated based on the tasks they are assigned to. How can I “tell’ MProject 2010 standard that this “work resources” will be earning a fixed amount of money per month (or any other period), regardless tasks durations?   

    Wednesday, April 25, 2012 3:34 AM

Answers

  • JACO60,

    Unfortunately, this is not possible in Project with a work resource.  In my opinion, the best that you can do is place their annual salary ($XX,XXX/yr) in the resource sheet and go from there.  With that said, there are ways to "lie" to the software to get closer.  I have placed work resources on salary as a cost type resource on tasks, but this requires a bit of baby-sitting on the tasks that they are assigned - not only from a cost standpoint, but also from a standpoint of duration.  The other way is to create a custom resource flag field named "SALARY" along with a custom resource cost field called "SALARY COST".  You then use these fields to track their costs and have $0.00 as their hourly rate in the resource sheet.  Again, this requires some additional set-up, tracking and upkeep on your part.

    Before making any decisions, ask yourself how bad the variations are and if this is worth the effort to change.  In other words, if the difference between what they would cost if they were hourly vs. salary, would that information be beneficial?  For example, if this difference means a total of 5% of total resource costs (at the project level) is this really throwing a major kink in your project progress infromation?  Is it expanding your budget to unacceptable levels?  If the answer is no, then work within the limitations of the software.  If the answer is yes, then you may want to do something differently.

    Hope this helps.


    Gregg D. Richie, PMP, MCTS; Author, Microsoft Project 2010, Microsoft Official Academic Course Series

    Wednesday, April 25, 2012 4:26 AM
  • Hi JACO60,

    Project is all about calculating Project costs, which includes the resource cost, task cost and other fixed/variable costs. Having said this, the tool calculates the resource cost for Project, it doesn't specifically work on resource costing. It look at cost parameters only from higher perspective of project costs. The tool doesn't help out of box to control cost of a resource, as in your case.


    Sapna S

    Wednesday, April 25, 2012 8:47 AM
    Moderator

All replies

  • JACO60,

    Unfortunately, this is not possible in Project with a work resource.  In my opinion, the best that you can do is place their annual salary ($XX,XXX/yr) in the resource sheet and go from there.  With that said, there are ways to "lie" to the software to get closer.  I have placed work resources on salary as a cost type resource on tasks, but this requires a bit of baby-sitting on the tasks that they are assigned - not only from a cost standpoint, but also from a standpoint of duration.  The other way is to create a custom resource flag field named "SALARY" along with a custom resource cost field called "SALARY COST".  You then use these fields to track their costs and have $0.00 as their hourly rate in the resource sheet.  Again, this requires some additional set-up, tracking and upkeep on your part.

    Before making any decisions, ask yourself how bad the variations are and if this is worth the effort to change.  In other words, if the difference between what they would cost if they were hourly vs. salary, would that information be beneficial?  For example, if this difference means a total of 5% of total resource costs (at the project level) is this really throwing a major kink in your project progress infromation?  Is it expanding your budget to unacceptable levels?  If the answer is no, then work within the limitations of the software.  If the answer is yes, then you may want to do something differently.

    Hope this helps.


    Gregg D. Richie, PMP, MCTS; Author, Microsoft Project 2010, Microsoft Official Academic Course Series

    Wednesday, April 25, 2012 4:26 AM
  • Hi JACO60,

    Project is all about calculating Project costs, which includes the resource cost, task cost and other fixed/variable costs. Having said this, the tool calculates the resource cost for Project, it doesn't specifically work on resource costing. It look at cost parameters only from higher perspective of project costs. The tool doesn't help out of box to control cost of a resource, as in your case.


    Sapna S

    Wednesday, April 25, 2012 8:47 AM
    Moderator