Material resources over different time than workload in MS PROJECT 2016

Hi,

I have interesting question from one of my Blog readers:
”I am working with Engineering services provider. I have created my resource pool sheet. I have assigned my resources (Employees/Engineers) on different projects. These engineers use different tools (licenses etc.) to complete the task.
We have to pay for those licenses quarterly. I cannot buy these licenses for one month.
I would like to know how to assign the license cost with resource (Employees/Engineers). Sometime my employees have 2 months workload but I have to pay the license cost for three months. Please guide me how can I use MS project for this?”

I will use MS PROJECT 2016 for this example. I will first create simple Projects with two Tasks:

image

As you can see Task 1 has 1 month, and Task 2 two months Duration.

Now I am going to create Resources:

image

As you can see License is Material cost. I will assign John and License to the Task 1:

image

and I will get:

image

You can see the result in the Cost table:

image

As you can see Total cost is $ 16.300 (John will work 8 hours per day * 100 $ * 20 days e.g. 1 month = $ 16.000 + License $ 300 = $16.300).

Now back to the Problem. How can you assign License to the Task if you for example have to buy License for three months and your Task is shorter? And how to get right Cost.

There are three ways:

  1. You can put price for three months (in my example $ 300) for the License and then assign one license per Task as I did. If you have same license which you will have to pay for 1 month, 2 months etc., then you will have more than one Resource (for example: 1 Month License, 2 Months License etc.)
  2. You can put price per month for License (for example $ 100), and then assign 3 Licenses per Task if you have to pay for three months. this is little bit confusing because even when you have right costs, someone could think that you need 3 Licenses, which you do not
  3. Use fixed Cost like I will do in Task 2, and then write in Notes what are those cost for:

image

Hope this helps.

Regards!

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About Nenad Trajkovski

Location: Zagreb, Croatia Occupation: Project Manager Interests: Project Management and MS PROJECT He was born in Zagreb, Croatia at 1963. After completing his college he started working on projects in different business areas (banking, manufacturing, automotive industry, distribution, oil companies, etc.) developing and implementing ERP systems into different companies. He has got a lot of experience working with people in different business processes and also possesses great knowledge in information technologies and financial services. Today he works as a business consultant, adn Project Manager in PERPETUUM MOBILE d.o.o. Zagreb. He is a regular lecturer for Project Management in MS Innovation Center in Varaždin, Logosoft Sarajevo in Bosnia and Herzegovina and SEAVUS GROUP in Skopje Macedonia. He was named the best lecturer of WINDAYS 2008 while his lecture was also voted as the best. In addition, he was in TOP 10 lecturers at the MS SINERGY 2009 and MS VISIA 2009, 2010. Shares first place as the best lecturer of KulenDays 2009 and 2010 and PMI Conference 2009 in Zagreb. He is also a regular lecturer in the MS Community. He is a Certified Accountant and a PMP (Project Manager Professional) and a PMI-RMP (Risk Manager Professional), MCP, MCT, and Microsoft Certified Technical Specialist - Microsoft Project 2010. From 01.01.2012 awarded with MVP (Microsoft Most Valuable Proffesional - Microsoft Project)!
This entry was posted in MS PROJECT 2016, PMI, PRoject Management and tagged , . Bookmark the permalink.

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