Hi,
one of my Blog reader has a Problem. She has Project and she must apply three different Pay rates for Resource on the Task in MS PROJECT 2010. Here is an example:
John is working on task, and it will have Duration = 14 days! John will work from Monday to Sunday 12 hours per day! Regular work is 8 hours per day, and 4 hour per day are overtime work. BUT! Every Sunday John will earn double time fee.
OK! Firs we have to SETUP our Regular work:
then:
Now I will setup working time in my Calendar:
I will add a brand new Task in my Project:
Now I will add John as Resource:
Notice the figures in Cost Rate Table:
- From Project start 30.01.2012 John will be paid $100 per hour for Standard work (8 hours per day), and $150 for Overtime work (4 hours per day)
- At Sunday, 05.02.2012 John will be paid $200 per hour for Standard work (8 hours per day), and Overtime work (4 hours per day). This is what we can call Double Time Rate
- From Monday till Saturday (06.02.2012-11.02.2012) John will be paid $100 per hour for Standard work (8 hours per day), and $150 for Overtime work (4 hours per day)
- At Sunday, 12.02.2012 John will be paid $200 per hour for Standard work (8 hours per day), and Overtime work (4 hours per day). This is what we can call Double Time Rate
OK! Now I Will assign John to the Task:
Now I will choose the Cost Table:
and I will get:
Total Cost is $12.800! Why?
- From Monday, 30.01.2012 till Saturday, 04.02.212 (6 days * 8 hours per day = 48 hours), pay rate is $100. 48 hours * $100 = $4.800
- At Sunday, 05.02.2012, pay rate is $200. 8 hours * $200 = $1.600
- From Monday, 06.02.2012 till Saturday, 11.02.212 (6 days * 8 hours per day = 48 hours), pay rate is $100. 48 hours * $100 = $4.800
- At Sunday, 12.02.2012, pay rate is $200. 8 hours * $200 = $1.600
- $4.800 + $ 1.600 + $4.800 + $1.600 = $12.800
Here is the Task Usage:
But, where is the Overtime rate applied? NOWHERE! Why? Remember that you should assign overtime work by your own. That means, if someone will work 12 hours on a task per day, it doesn’t mean that MS PROJECT 2010 will charge 4 extra hours with overtime rate.
Now, I will put overtime work in MS PROJECT 2010:
Now I will click anywhere in Task Form, and on the format Tab select Work:
and I will get:
Now what? John has to work 12 hours per day, and 4 hours will be overtime. 14 days * 12 hours per day = 168 hours. 14 days * 4 overtime hours per day = 56 hours. I will put those figures in Task Form:
and I will get:
Now, the Total Cost is $21.600! Why?
- From Monday, 30.01.2012 till Saturday, 04.02.212 (6 days * 8 regular hours per day = 48 hours hours), regular pay rate is $100. 48 hours * $100 = $4.800
- From Monday, 30.01.2012 till Saturday, 04.02.212 (6 days * 4 overtime hours per day = 24 hours), overtime pay rate is $150. 24 hours * $150 = $3.600
- At Sunday, 05.02.2012, pay rate is $200 (regular and overtime) . 12 hours * $200 = $2.400
- From Monday, 06.02.2012 till Saturday, 11.02.212 (6 days * 8 regular hours per day = 48 hours hours), regular pay rate is $100. 48 hours * $100 = $4.800
- From Monday, 06.02.2012 till Saturday, 11.02.212 (6 days * 4 overtime hours per day = 24 hours), overtime pay rate is $150. 24 hours * $150 = $3.600
- At Sunday, 12.02.2012, pay rate is $200 (regular and overtime) . 12 hours * $200 = $2.400
- $4.800 + $3.600 + $2.400 + $4.800 + $3.600 + $2.400 = $21.600
Let’s look at the Task Usage View:
You can see that Cost per day (except Sunday) is $1.400. (8 hours * $100) + (4 hours * $150) = $1.400. At Sunday Cost is 12 hours * $200 = $2.400.
That’s it.
Regards!
Nenad Trajkovski 
Thank you, excellently! I now understand how to calculate overtime work!
The example like your. But i want to put overtime work for the start day and the finish day. it mean overtime is 8 hour, 4 hour for start day, 4 hour for finish day. And overtime rate start day diffirent finish day. Pleas hepl me
Read my Blog post from 07.10.2017 (10/7/17)
Thanks Mr. Nenad.
Hi Nenad, again you are bloody amazing! I didn’t understand this overtime thing until now! Thanks so much! I have one question though. How do you keep track of each resource and their overtime? I mean, like do I have to manually check on each resource as they work, or is there a column (of which I am trying to see but to no avail) that I can use to calculate the overtime rate for me at any given time? If I need to use a Custom Field, how do I calculate overtime for each of them? Ooo Hope you can help 😀 Thanks so much! xxx
No! Use Resource Usage View. Apply Usage Table. There add columns: Overtime Work Overtime Rare, and Overtime Cost! For Each Resource for Each Task enter Overtime work, and you will see Overtime Cost!
Does this help?
YES!! THANK YOU!
Hi Is it possible to enter cost rates like this:
9:00 to 5:00 normal rate 100
6:00 to 10:00 overtime 150
11:00 to 12:00 double rate 200
No, sorry, it is not possible to do that
Hi Nenad Thanks a lot for the feedback. In that case what is the work around becaus this is a common practice in Australia. Regards Owais Date: Wed, 26 Mar 2014 08:19:54 +0000 To: owais_malick_1999@hotmail.com
bit confused, according to another topic for you, i thought as long as we added overtime hours the total duration of the task should be reduced, why it is still 14 days?
See at the picture! I raised work from 112 to 168 hours, and THEN put overtime hours to 56. So forumla for duation is: (Work hours – Overtime hours) / 8 = (168-56) /8 = 112 / 8 = 14 days. The duration will be shortened if I didn’t touch Work but increased Overtime hours.
Hope this helps!
Hi Nenad,
Thanks a lot for all posts written
Please, could you help me to better understand the calculating methods of MS Project because I don’t well understand MS Project behaviour: To explain my problem, here is my context :
————————————————
CONTEX
———————————————–
Calendar : Std (08:00-12:00 / 13:00-17:00) assigned to all tasks
Resource R1 :
Calendar standard excepted for February 10 2014 with working time 08:00 – 12:00
Capacity ___
For February 10, 2014 = 100%
For February 11 to 15, 2014 = 50%
Cost rate___
for February 10 , 2014 Std rate 10€ and overtime rate 20€
Cost for February 11, 2014 std rate 20€ overtime rate 40€
Auto schedule activated
Task 1 : constraint Start not earlier than February 10, 2014 08:00
finish date February 11,2014 17:00
fixed Work = 15h
For the Gantt Chart, I display Resource usage view => 3 panels + 1 chart
– On the left detail part, I enter 7h on the overtime work field (after manual insert of this field)
– On the right part of the resource usage view, I enter for :
February 10 , work 8 => overallocation automatically calculated = 4 => Ok
February 11, work 7 => overallocation automatically calculated = 3 => Ok
———————————————–
PROBLEM
———————————————–
But MS project calculates also overtime work, and I don’t understand how because
For February 10 , overtime work = 3,28h
For February 11, ovt work = 3,72
Firstly, no way to change this repartition, automatically calculated. Impossible to type data on ovt work field
Secondly, it’s better to overload the ovt work of the Feb. 10 because this ovt rate is lower than the ovt rate of th Feb.11
Finally the total calculated cost by Project = €327,19 but according to my own calculation it should be egal to €334,40
Feb 10 = 4h std time x 10 std rate + 3,28h ovt x 20 ovt rate = €105,60
Feb 11 = (4 x 20 ) + (3,72 x 40) = €228,80
Total cost = €334,40
Please, could you help me to better understand the calculating methods of MS Project
Sorry for my approximate translation
Thanks a lot
Paul PRZEKOWIAK
Can you send me an mpp file on nenadtrajk@gmail.com?
if two activity 6 hours and 6 hours for one more then how?
I don’t understand your question! COuld you be more specific?
I was pretty confused by overtime hours. Maybe it will help to explain that OT hous are a subset of work hours. E.g., if 14 hours total were worked and 2 of those hours were OT, you enter 14 in Work field and 2 in OT field. Now, if you don’t want to go with Standard OT rate, you can assign any rate to a task but again this is tricky. You need to assign the resource to the task, then go to task usage view, select the resource and double click. You will see ‘cost rate table’ on the general tab of the pop up box. You can select the appropriate rate (A,B,C, etc.) from there. You need to load the rates in the resource sheet view first. Hope that helps. Took me forever to figure it out.
Hi dear
first I would like to say thanks for your above post, after that I would like to share one question with you which I have in mind, it is also something about cost calculation that’s why I am asking here:
How to set up different pay rate units such as ($/m, $/m2, $/m3, $/ton and so) … and that’s it. you know in most construction projects like building, roads, tunnel, canal even dam constructions cost of much of items such as excavation, drainage and so will calculated based on different pay rates as indicated above. for example if I want to setup cost of “excavation” task how I suppose to do that, if I have to setup unit pay rate of this task in resource sheets ? so which kind of resource I suppose to assign (work, material or cost resource) and how I use different pay rate ? or if I suppose to setup this kind of cost in different place, where is that place ?
with thanks and respect …
Thanks for this information! My question is regarding cost per task. I have temp employees working overtime. In a given week they are paid overtime rate for hours over 8 per day. In the same week they could leave early so they may have a day where I need to assign $0 for 4 hours. I entered a task called Unpaid Time so I could measure how many hours they take off but project is not letting me assign rate table cost of $0. Do you know how to report this? Thanks again!
I will write a post for this issue next week! Thank you for a great Idea
Hello Nenad Trajkovski,
It’s a great blog you have over here.
About overtime, I tried to apply 12 hours a day on Saturday and Sunday, it’s a 2 day work (driving car) and It allocates 24 hours on Saturday. Both days are dayoff (rest time), so it’s 24 hours overtime rate. Is there a way to allocate 12 hours a day?
Thanks
Let me clear one thing out! You want to drive your car at Saturday 12 hours and Sunday 12 hours! And 12 hours per day are overtime?
Yes, that’s right. Saturday and Sunday are days off, so if the I work that days it’s overtime. I can’t work more than 12 hours, according to the law, so how can I make it happen? When I do it, the microsoft project used to change the duration (which is fisically impossible) or It used to allocate to work 24 hours at Saturday.
I wrtoe a post about this, and it will be published at Wednesday, 24.10.2012
Hi, do you know how to apply 3 rates in one working day.
EG on a 12 hr shift,
upto 8hrs use Std Rate,
8-10hrs use Overtime Rate,
10-12 hrs, use “triple time Rate”
YOu can apply only one standard rate and one overtime rate per day!
But yoiu can apply differnt tables (pax / costs) per task, if that can help you!
Thanks very much Nenad. I appreciate your help. Anna.
Hai Mr. Nenad Trajkovski; I’m Hennry from Indonesia; I have problem with Peak resources;
at the beginning I have 200% carpenters; and because of some task so he overlocated and got the red mark; I try to resolve by add 200% carpenters, the red mark disappears, but there is information peak for the carpenters are 600%; so I arrange for the 4 carpenters to different days, but I still not sure about peak. Would you help me please ? thank’s in advance, best regards,
hennry
Can you send me mpp file?
thanks for the info.
I am trying to update and add OT to a task that has already started.
I cannot seem to add hours to the OT Work Field.
I can reduce the work hours, but when I attempt to put those hours into the OT Work fild the hours will not add. Any Ideas? -Gordon
Can you send me your mpp file? It works fine here